Omnipod Insulin Pump Working Well For Insulet, Lifts Annual Forecast

Insulet Corporation PODD reported Q3 sales of $432.7 million, up 27.0%, or 25.1% in constant currency, beating the consensus of $414.383 million.

Total Omnipod revenue of $422 million marked a year-over-year increase of 29.4%.

The company reported adjusted EPS of $0.71, beating the consensus of $0.40 and higher than $0.45 a year ago.

"Our third quarter financial and operational results marked another strong quarter for Insulet, and as a result of continued high demand for Omnipod 5 – both in the U.S. and globally – we are pleased to again raise guidance for the full year," said Jim Hollingshead, President and Chief Executive Officer. 

Insulet clocked an adjusted gross margin of 67.3%, up 120 basis points.

Guidance: Insulet raised its expected FY23 revenue growth to 26% to 27%, previously 22%-25%. 

 It projects total Omnipod growth between 29% and 30% (previously 25% to 28%).

The company sees FY23 gross margin to the mid-point of 66% to 67% (previously 65% to 66%).

For Q4 FY23, the company expects revenue growth of 22%-25%, with Omnipod sales growth of 22%-25%.

For Q4, Insulet expects an operating margin of 9%-10%, closer to the high-end of the range (previously high-single digits).

Highlights for the quarter included FDA clearance for the Omnipod 5 app on Apple iOS and expect to begin a U.S. limited market release in early 2024. Insulet also launched Omnipod 5 in Germany as it expects full European availability in 2024.

The company said it's on track to integrate Omnipod 5 with the Dexcom G7 by early 2024. 

According to William Blair, Q3 results reaffirm our confidence in Insulet's extensive growth potential within an underserved market. Strong fundamentals persist, bolstered by the ongoing success of Omnipod 5 in the U.S., with room for further expansion on the global stage. Additionally, introducing the basal pod in 2024 presents a promising new opportunity for the company.

Price Action: PODD shares are up 15% at $161.49 on the last check Friday.