Full Press Release Details
Reports Fourth Quarter and Full Year 2016 Financial Results
Quarter Revenue of $103.6 Million, up 24% Year-Over-Year; Full Year 2016
Revenue of $367.0 Million, up 39% Year-Over Year, Exceeds Expectations
Quarter Gross Margin Improves to 58.8%; Full Year 2016 Gross Margin
Expects Full Year 2017 Revenue Growth of Approximately 17% at the
BILLERICA, Mass.--(BUSINESS WIRE)--February 27, 2017--Insulet
Corporation (NASDAQ: PODD) (Insulet or the Company), the leader in
tubeless insulin pump technology with its Omnipod
Insulin Management System (Omnipod System), today announced financial
results for the three months and full year ended December 31, 2016.
Fourth Quarter Highlights and Recent Developments:
Fourth quarter revenue of $103.6 million exceeds the Company's
guidance of $99 to $102 million and represents year-over-year growth
U.S. Omnipod revenue of $63.1 million, an increase of 17%.
International Omnipod revenue of $20.8 million, an increase of 35%.
Drug Delivery revenue of $19.6 million, an increase of 34%.
Gross margin of 58.8%, up 870 basis points, reflecting improved
manufacturing and operational execution.
Completed Investigational Device Exemptions (IDE) for Omnipod Horizon
Automated Glucose Control System, including over 50 adults and
children (beginning at age six), demonstrating overall excellent
Purchased U.S. facility in Acton, Massachusetts; will expand pod
manufacturing and capacity, and drive increased efficiency and
Renewed drug delivery supply agreement with Amgen Inc.
Renewed contract manufacturing agreement with Flextronics in China.
Held Insulet's first Investor Day, providing an in-depth business
review and a five-year growth outlook.
Full Year Financial Highlights:
Full Year 2016 revenue of $367.0 million exceeds the Company's
guidance of $362 to $365 million and represents year-over-year growth
U.S. Omnipod revenue of $229.8 million, an increase of 21%.
International Omnipod revenue of $71.9 million, an increase of 78%.
Drug Delivery revenue of $65.3 million, an increase of 92%.
Gross margin of 57.5%, up 700 basis points.
Strengthened leadership team with appointment of key executives across
Evidence demonstrating Omnipod's improved glycemic control and quality
of life published in the Journal of Diabetes Technology &
Therapeutics and the Journal of Diabetes Science and Technology.
Completed private placement of $345.0 million in principal amount of
1.25% Convertible Senior Notes due in 2021 and repurchase of $134.2
million in principal amount of the existing 2.00% Convertible Senior
Divested Neighborhood Diabetes medical supplies distribution business
to focus on growth opportunities in insulin and drug delivery.
Expanded development partnership with Eli Lilly and Company for
Omnipod delivery of Humalog 200 concentrated insulin, in addition to
the Company's already-existing partnership for Humalog U500.
Partnered with Joslin Diabetes Center to implement a unique training
certification for Insulet's clinical team.
"We continue to successfully execute on our strategy as evidenced by our
2016 revenue results, which exceeded our expectations," said Patrick
Sullivan, Chairman and Chief Executive Officer. "With our differentiated
platform and outstanding commercial and operational execution, we
achieved significant growth across all business lines, driving 39%
revenue growth and a seven-point gross margin improvement
Mr. Sullivan continued, "Insulet is very well-positioned for continued
growth in 2017. We remain focused on our large, unpenetrated market
opportunity in the diabetes space and are on track to achieve our
five-year targets of $1 billion in revenue and 65% gross margin, which
we believe will deliver substantial returns for shareholders. We look
forward to continued success in executing our key initiatives to drive
growth and shareholder value, while improving the lives of people with
diabetes around the world."
Fourth Quarter 2016 Financial Results:
Fourth quarter 2016 revenue increased 24% to $103.6 million, compared to
$83.8 million in the fourth quarter of 2015.
Operating loss for the fourth quarter of 2016 was $4.1 million, compared
to an operating loss of $12.6 million in the fourth quarter of 2015.
Net loss from continuing operations for the fourth quarter of 2016 was
$9.2 million, or $0.16 per share, compared with a net loss from
continuing operations of $15.9 million, or $0.28 per share, in the
fourth quarter of 2015.
Full Year 2016 Financial Results:
For the year ended December 31, 2016, revenue increased 39% to $367.0
million, compared to revenue of $263.9 million in 2015.
Operating loss for the year ended December 31, 2016 was $10.7 million,
compared with an operating loss of $48.7 million in 2015.
Net loss from continuing operations for the year ended December 31, 2016
was $27.2 million, or $0.48 per share, compared with a net loss from
continuing operations of $61.6 million, or $1.08 per share, in 2015.
For the year ending December 31, 2017, the Company expects to generate
revenue in the range of $420 to $440 million, compared to 2016 revenue
of $367.0 million. This represents year-over-year growth of
approximately 17% at the mid-point of the range.
For the quarter ending March 31, 2017, the Company expects to generate
revenue in the range of $96 to $99 million, compared to first quarter
2016 revenue of $81.2 million. This represents year-over-year growth
of approximately 20% at the mid-point of the range.
Future results may be affected by changes in ongoing assumptions and
judgments, and may also be affected by non-recurring, unusual or
unanticipated charges, expenses or gains.
Insulet will host a conference call at 4:30 p.m. (Eastern Time) on
February 27, 2017 to discuss the financial results and outlook. The link
to the live call will be available on the Investor Relations section of
the Company's website at http://investors.insulet.com, "Events
and Presentations", and will be archived for future reference. The call
may also be accessed by dialing (844) 831-3022 for domestic callers or
(315) 625-6887 for international callers, passcode 55844501. A replay
will be available two hours after the completion of the call by dialing
(855) 859-2056 (domestic) or (404) 537-3406 (international), passcode
About Insulet Corporation: