MINNEAPOLIS - Inspire Medical Systems, Inc. (NYSE: NYSE:INSP), a company specializing in treatments for obstructive sleep apnea, reported a significant revenue increase in the first quarter of 2024, with figures rising 28% to $164 million compared to the same period last year. Despite surpassing analyst revenue expectations of $161.41 million, shares of Inspire Medical fell by 15% following the announcement.
The company's adjusted earnings per share (EPS) for the quarter was -$0.34, which was notably better than the analyst estimate of -$0.65. The improved EPS and revenue reflect increased market penetration, expansion into new territories, and heightened awareness of Inspire's therapy solutions.
Inspire's gross margin remained strong at 84.9%, slightly up from 84.4% YoY. Operating expenses climbed by 21% to $154.5 million due to investments in sales, marketing, and product development. The net loss narrowed to $10 million from last year's $15.4 million, with a loss per share of $0.34, improving from a loss of $0.53 per share in the first quarter of 2023.
CEO Tim Herbert attributed the robust quarter to "increased market penetration in existing centers, expansion into new territories, and increased physician and patient awareness of our Inspire therapy." He also expressed confidence in the company's trajectory, stating, "Given our strong performance in the quarter and our improved outlook for the remainder of 2024, we are increasing our revenue guidance and we now expect to be profitable for the full year 2024.”
For the full year 2024, Inspire has raised its revenue guidance to a range of $783 million to $793 million, representing a 25% to 27% growth over the previous year and slightly above the consensus estimate of $782.1 million. The company also provided an initial full-year adjusted EPS guidance of $0.10 to $0.20, which is a significant improvement over the analyst consensus of a -$0.42 loss per share. Gross margin forecasts are maintained at 83% to 85%.
Despite the positive financial performance and raised guidance, the stock experienced a considerable downturn. The 15% decline in share price post-earnings indicates investor concerns that may not have been directly addressed by the company.
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