INSP Q1 results

I have occasionally reported to this board on Inspire Medical (INSP). INSP makes a neurostimulator that treats some types of sleep apnea for patients who do not tolerate CPAP machines well.

There hasn’t been a lot of interest on this board (probably because INSP is not SaaS), but their growth is still phenomenal and I wanted to list a few highlights for this quarter.

Revenue Growth was 72% versus year-ago quarter. (Their business is cyclical with most implants occurring late in the year due to insurance deductable reasons). 2021 full year growth was about 90% as I recall. I don’t think they will get that this year, but they will still do well. They raised guidance for full year growth to 46%. But they are generally conservative on their full year guidance, and have raised guidance every quarter in my memory. So I’m guessing they will still raise guidance again this year.Gross margin exceeded 85%, and they expect to target a similar number going forward.

Most of their business in US-based, but their international sales are starting to grow. The first surgeries were conducted in Japan and UK this quarter, and they just received approval for reimbursement for France. They also are expecting the first surgeries in Singapore in Q2.

Management is still suggesting that they are early in the growth stage and are investing in rapid growth rather than profitability.

The numbers look nice to me.