Inspire Medical Q2 Earnings Beat Expectation, Sales More Than Tripled, Raises FY21 Outlook

Inspire Medical Systems Inc INSP generated revenue of $53.0 million in Q2, a 335% Y/Y increase, beating the consensus of $43.87 million.
U.S. revenue increased 349% to $49.4 million, and European revenue was up 201% to $3.6 million.
The gross margin increased to 85.8% from 84% a year ago, primarily due to higher sales volumes and manufacturing efficiencies.
Activated 63 new centers in the U.S., bringing the total to 535 U.S. medical centers implanting Inspire therapy, and above the company's expectation of 36 to 40 new centers.
Operating expenses increased to $58.0 million, up 75% Y/Y, reflecting expansion of the U.S. and European sales organizations, direct-to-patient marketing programs, and continued product development efforts, as well as increased general corporate costs.
Net loss came in at $(0.48) per share, down from $(0.88) a year ago, beating the consensus of $(0.64).
Cash, cash equivalents, and investments were $217.8 million.
FY 2021 Guidance: Inspire Medical increased revenue guidance to $210 million - $213 million (prior $192 million - $196 million), representing 82% - 85% Y/Y growth, versus the consensus of $195.62 million.
It also raised its gross margin guidance from 84% - 85% to 85% - 86%.
For the remainder of 2021, Inspire expects the opening of new U.S. medical centers of 48 - 52 per quarter, compared to the prior guidance of 36 - 40 centers.
The company also increased guidance on adding new territories to adding 10 to 11 new territories per quarter in 2021, compared to the prior guidance of eight to nine territories.
SVB Leerink analyst Richard Newitter maintains Outperform rating on Inspire Medical, lowers Price Target to $265.
Price Action: INSP shares closed at $187 on Tuesday.

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