Inspire Medical Systems (NYSE: INSP) reported Q4 EPS of ($0.28), $0.20 better than the analyst estimate of ($0.48). Revenue for the quarter came in at $46 million versus the consensus estimate of $41.07 million.

Recent Business Highlights and Full Year 2021 Guidance

• Generated revenue of $46.0 million in the fourth quarter of 2020, a 71% increase over the same quarter last year, and revenue of $115.4 million in full year 2020, a 41% increase over full year 2019
• Activated 55 new centers in the U.S. in the fourth quarter of 2020, bringing the total to 425 U.S. medical centers implanting Inspire therapy
• Created nine new sales territories in the fourth quarter of 2020, bringing the total to 107 U.S. sales territories
• Continued to strengthen the Company's leadership team with the appointment of Bryan Phillips as its Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary
• Provided full year 2021 revenue guidance in the range of $183 million to $188 million, which would represent growth of approximately 59% to 63% over full year 2020 revenue of $115.4 million

“We experienced significant momentum throughout our business in the fourth quarter,” said Tim Herbert, President and Chief Executive Officer of Inspire Medical Systems. “The 71% year-over-year revenue growth achieved in the fourth quarter reflects the continued impact of the restart from the COVID-19 pandemic with a high level of implant procedures and the opening of new implanting centers. Importantly, our decision to maintain our field expansion through the slowdown caused by the pandemic positioned us well for success when centers were again able to schedule cases. We did experience localized delays in scheduling cases due to the pandemic resurgence late in 2020 and into January of 2021, although we do not expect that to be sustained. Based on our strong performance in the second half of 2020, we believe that we are well positioned to expand the adoption of Inspire therapy, positively impacting the lives of patients with untreated obstructive sleep apnea.”

“The 55 new U.S. implanting centers we added in the fourth quarter significantly exceeded our prior guidance of 28 to 30 new centers per quarter, though it did include several centers whose activation was delayed due to the COVID-19 pandemic. With the improved reimbursement environment for Inspire therapy, we expect to activate 34 to 38 new U.S. implanting centers per quarter during 2021. Further, we created nine new U.S. sales territories in the fourth quarter, ending the year with 107 territories,” added Herbert. “Importantly, 2021 will be our first commercial year where we can focus on scaling the business based on our priorities of increasing capacity and improving our ability to assist patients interested in the Inspire therapy with making a connection with a qualified healthcare provider."

GUIDANCE:

Inspire Medical Systems sees FY2021 revenue of $183-188 million, versus the consensus of $171.65 million.

• Inspire expects full year 2021 revenue to be in the range of $183 million to $188 million, which would represent growth of approximately 59% to 63% over full year 2020 revenue of $115.4 million. Gross margin for the full year 2021 is anticipated to be in the range of 83% to 85%.
• In addition, during each quarter of 2021, the Company expects to activate 34 to 38 new U.S. medical centers implanting Inspire therapy, and add eight to nine new territories.

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