Inspire Medical Systems (NYSE: INSP) reported Q2 EPS of ($0.88), $0.22 better than the analyst estimate of ($1.10). Revenue for the quarter came in at $12.2 million versus the consensus estimate of $7.85 million.

Recent Business Highlights

• Generated revenue of $12.2 million in the second quarter of 2020, a 32% decrease over the same quarter last year
• Activated 16 new U.S. medical centers in the second quarter of 2020
• Created nine new territories in the second quarter of 2020, bringing the total to 91 U.S. territories
• Announced that all seven Medicare Administrative Contractors' ("MACs") final Local Coverage Determinations ("LCDs") became effective in the first half of 2020
• Appointed medical technology industry veteran, Phil Ebeling as Inspire's Chief Operating Officer
• Introduced digital health tools with the launch of new Inspire Sleep app
• Completed an underwritten public offering in April 2020, raising $124.7 million of net proceeds

“Inspire remains focused on supporting physicians and patients during the COVID-19 pandemic, and we are encouraged by the steady recovery of procedures throughout May and June,” said Tim Herbert, President and Chief Executive Officer of Inspire Medical Systems. “We continue to achieve meaningful progress with reimbursement and in raising awareness of Inspire therapy, and we are confident that the Company is well-positioned going forward, as many postponed Inspire procedures have already been completed and we expect that the remaining majority will be rescheduled in the near future.”

“Importantly, the fundamentals of our business remain strong, and we continue to invest in critical activities to accelerate growth,” continued Mr. Herbert. “Specifically, Inspire continues to allocate resources to commercial initiatives, as well as maintaining our investment in R&D projects. As we look to the remainder of the year, the positive trends seen in the latter half of the second quarter, coupled with our team’s resiliency and responsiveness, provide us with confidence in our outlook for the remainder of the year. As such, we are providing new full year 2020 revenue guidance of $88 million to $92 million.”

“We now have Medicare coverage for Inspire therapy across the entire United States. In addition, we announced in the second quarter that Cigna, one of the leading health plans in the United States with approximately 16 million members in the U.S., is now providing coverage for Inspire therapy. Finally, we are excited to have recently released our Inspire Sleep app, which provides patients with a convenient way to learn about treatment options and manage their obstructive sleep apnea, and this is just the initial foundation of our digital platform for patient management,” concluded Mr. Herbert.

GUIDANCE:

Inspire Medical Systems sees FY2020 revenue of $88-92 million, versus the consensus of $78.47 million.

• On April 13, 2020, Inspire withdrew its previously provided full year 2020 revenue guidance due to the rapidly evolving healthcare environment and uncertainties resulting from the impact of COVID-19.
• Inspire now expects full year 2020 revenue to be in the range of $88 million to $92 million, representing growth of approximately 7% to 12% over full year 2019 revenue of $82.1 million. Gross margin for the full year 2020 is anticipated to be in the range of 82% to 84%.
• In addition, Inspire expects to add 20 to 24 new U.S. implanting centers and six to seven new territories per quarter for the remainder of 2020.

For earnings history and earnings-related data on Inspire Medical Systems (INSP) click here.