Insulet (NASDAQ: PODD) reported Q3 EPS of $0.17, $0.09 better than the analyst estimate of $0.08. Revenue for the quarter came in at $234 million versus the consensus estimate of $221.68 million.

Third Quarter Financial Highlights:

• Third quarter 2020 revenue of $234.0 million, up 21.8%, or 19.9% in constant currency1, compared to $192.1 million in the prior year, exceeds guidance of 13% to 15% on a constant currency basis
  • Total Omnipod revenue of $212.1 million, an increase of 19.7%, or 17.6% in constant currency
    • U.S. Omnipod revenue of $132.3 million, an increase of 20.9%
    • International Omnipod revenue of $79.8 million, an increase of 17.7%, or 12.4% in constant currency
  • Drug Delivery revenue of $21.9 million, an increase of 47.0%
• Gross margin of 64.9%, up 80 basis points, including an approximate 60 basis point unfavorable impact due to COVID-19 related safety and mitigation costs
• Net income of $11.6 million, or $0.17 per diluted share, compared to net income of $0.8 million, or $0.01 per diluted share, in the prior year
• Adjusted EBITDA1 of $42.3 million or 18.1% of revenue, compared to $29.6 million or 15.4% of revenue in the prior year

"We delivered another quarter of financial and operational results exceeding our expectations, driven by the benefits of our differentiated innovation and the strength of our recurring revenue model,” said Shacey Petrovic, President and Chief Executive Officer. “We once again raised our full year revenue 2020 outlook and expect to deliver our fifth consecutive year of 20% growth, despite the pandemic. Our business model and pharmacy channel access uniquely position us to expand Omnipod adoption within both the Type 1 and Type 2 diabetes populations. Our team's great execution gives us confidence in our ability to drive long-term double-digit growth, and we remain focused on sustaining that momentum with the launch of Omnipod 5 in the first half of 2021.”

Revenue Guidance (in constant currency):

• For the year ending December 31, 2020, the Company is raising its revenue guidance growth range to 20% to 21% (previously 17% to 19%). By product line, the Company now expects:
  • Total Omnipod to be 21% to 22% (previously 18% to 20%)
    • U.S. Omnipod to be 23% to 24% (previously 19% to 21%)
    • International Omnipod to be 18% to 19% (previously 17% to 19%)
  • Drug Delivery to be 4% to 6% (previously 3% to 6%)

• For the quarter ending December 31, 2020, the Company expects revenue growth of 7% to 11%. Revenue growth ranges by product line are:
  • Total Omnipod of 10% to 14%
    • U.S. Omnipod of 10% to 14%
    • International Omnipod of 10% to 14%
  • Drug Delivery decline of 17% to 23%

Adjusted EBITDA:

For the year ending December 31, 2020, the Company is reaffirming its expectations of Adjusted EBITDA as a percentage of revenue in the range of 13% to 17%, closer to the low end of the range.

For earnings history and earnings-related data on Insulet (PODD) click here.