Insulet Reports 23% Revenue Increase in Q1 2024

Insulet Corporation, a leader in tubeless insulin pump technology with its Omnipod® brand, has reported impressive financial results for the first quarter of 2024, ending March 31. The company's revenue reached $441.7 million, marking a 23.3% increase from the previous year's $358.1 million. This substantial growth surpassed the expected guidance range of 17% to 20% due to stronger-than-anticipated performance across all product lines.

Breaking down the revenue, the total Omnipod revenue was $433.0 million, a 21.1% rise. The U.S. market contributed $317.7 million, reflecting a 22.7% increase, while the international market added $115.3 million, up by 16.9%. The Drug Delivery segment generated $8.7 million in revenue.

Insulet also reported significant improvements in its profit margins. The gross margin rose to 69.5%, an increase of 230 basis points from the previous year's 67.2%. When adjusted for the previous year's medical device correction costs, the gross margin improvement was even more pronounced, up 460 basis points from the adjusted 64.9%.

Operating income saw a substantial rise to $56.9 million, or 12.9% of revenue, compared to $27.7 million and 7.7% of revenue in the prior year. Adjusting for the past corrections, the operating income margin saw a remarkable improvement of 740 basis points.

Net income for the first quarter was $51.5 million, translating to $0.73 per diluted share, a stark contrast to the previous year's $23.8 million or $0.34 per diluted share. Adjusted net income from the prior year, excluding the $8 million from medical device corrections, was $15.8 million or $0.23 per diluted share.

The company’s adjusted EBITDA reached $89.2 million, or 20.2% of revenue, an impressive increase of 660 basis points from the prior year's $48.8 million, or 13.6% of revenue.

Key strategic advancements included the limited market release of Omnipod 5 integrated with Dexcom's G7 sensor in the U.S. and the launch of Omnipod 5 with a "sensor of choice" in Europe. Additionally, Omnipod 5 was integrated with Abbott’s Freestyle Libre 2 Plus sensor in the U.K. and Netherlands, as well as with Dexcom's G6 sensor in the Netherlands, U.K., and Germany.

The company also completed significant milestones in its clinical trials, including the final participant in the Omnipod 5 type 2 pivotal trial and full enrollment in the RADIANT Study. Data presented at the ATTD International Conference highlighted improved glycemic and patient-reported outcomes with Omnipod 5 in type 1 diabetes patients, supported by real-world evidence from over 100,000 users.

CEO Jim Hollingshead expressed satisfaction with the quarter's results, emphasizing the robust performance and the expansion of the customer base. He noted that the success of commercial launches and strategic integrations had prompted the company to raise its full-year revenue and operating margin outlook for 2024.

Looking ahead, Insulet has raised its expected revenue growth for the year ending December 31, 2024, to a range of 14% to 18%. The total Omnipod revenue is anticipated to grow between 15% and 19%, with U.S. Omnipod revenue expected to increase by 17% to 21%, and international Omnipod revenue by 12% to 15%. The Drug Delivery segment is expected to see a decline of 60% to 50%.

For the second quarter ending June 30, 2024, Insulet projects total revenue growth of 15% to 18%, with Omnipod revenues expected to grow between 18% and 21% in the U.S. and 12% to 15% internationally. The Drug Delivery segment is forecasted to generate between $4 million and $5 million.

The company is maintaining its expected gross margin of 68% to 69% for 2024 and has raised its operating margin outlook to approximately 13.5%.

Insulet's continued focus on innovation and commercial execution positions the company well for sustained profitable growth, with a strong emphasis on improving the lives of those with diabetes through advanced technology solutions.