Full Press Release Details
Reports Second Quarter 2016 Financial Results
Quarter Revenue of $87.3 Million, up 44% Year-Over-Year, Exceeds
Raises Mid-Point of Full Year 2016 Revenue Guidance by $10 Million
Margin Improves to 57.8%
BILLERICA, Mass.--(BUSINESS WIRE)--August 3, 2016--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 ended June 30, 2016.
Second Quarter Highlights and Recent Developments:
Second quarter revenue of $87.3 million exceeds the Company's guidance
of $81 to $84 million and represents year-over-year growth of 44%.
U.S. Omnipod revenue of $56.3 million, an increase of 24%.
International Omnipod revenue of $16.6 million, an increase of
Drug Delivery revenue of $14.4 million, an increase of 92%.
Gross margin of 57.8%, up over 700 basis points, reflecting
significant manufacturing and operational improvements.
Two publications in the Journal of Diabetes Science and Technology and
six presentations at the American Diabetes Association's 76th
Scientific Session of new data demonstrating the benefits of Insulet's
Omnipod System for people living with Type 1 and Type 2 diabetes.
Partnership with Joslin Diabetes Center to implement a unique training
certification for Insulet's clinical team.
Launch of Insulet's new Omnipod Podder community platform.
"As we cross the mid-point of the year, we are incredibly pleased to see
the benefits of our commercial and operational initiatives demonstrated
in our strong results," said Patrick Sullivan, President and Chief
Executive Officer. "Our continued positive momentum generated better
than expected revenue growth and margin improvement in the second
quarter, with growth in all of our business lines. We are advancing our
Digital Insulet strategy and artificial pancreas program, while also
successfully growing the body of clinical evidence in support of our
Omnipod technology. Our investments in our manufacturing and supply
chain operations are beginning to pay off and based on these
improvements, we expect higher-than-planned gross margin for the year.
Our team remains focused on executing our winning strategy, leveraging
our strengthened foundation to deliver long-term, sustainable and
profitable growth and increasing value for our shareholders."
Second Quarter 2016 Financial Results:
Second quarter 2016 revenue increased 44% to $87.3 million, compared to
$60.6 million in the second quarter of 2015.
Operating loss for the second quarter of 2016 was $1.3 million, compared
to an operating loss of $14.1 million in the second quarter of 2015.
Net loss from continuing operations for the second quarter of 2016 was
$4.4 million, or $0.08 per share, compared with a net loss from
continuing operations of $17.3 million, or $0.30 per share, in the
second quarter of 2015.
For the year ending December 31, 2016, the Company is raising its
revenue guidance to a range of $345 to $355 million, from $330 to $350
million, compared to 2015 revenue from continuing operations of $263.9
million1. This represents year-over-year revenue growth of
approximately 33% at the mid-point of the range.
For the quarter ending September 30, 2016, the Company is introducing
revenue guidance in the range of $88 to $91 million, compared to third
quarter 2015 revenue from continuing operations of $71.4 million1.
This represents year-over-year revenue growth of approximately 25% 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.
Divestiture of Neighborhood Diabetes:
On February 12, 2016, Insulet sold its wholly-owned Neighborhood
Diabetes supplies business to Liberty Medical, LLC for $6.2 million in
cash, which included $1.2 million of closing adjustments finalized in
June 2016 and paid by Liberty Medical. Beginning in the first quarter of
2016, the results of operations, assets, and liabilities of Neighborhood
Diabetes are classified as discontinued operations for all periods
1 The Company's guidance discussion above compares 2016
expected revenue to the unaudited 2015 revenue from continuing
operations which excludes Neighborhood Diabetes as if the divestiture
occurred on January 1, 2015. The revenue from continuing operations for
the year ended December 2015 and the third quarter of 2015 are included
as an appendix to this press release.
Insulet will host a conference call at 4:30 p.m. (Eastern Time) on
August 3, 2016 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 39119993. 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 39119993.
About Insulet Corporation:
Insulet Corporation (NASDAQ: PODD) is an innovative medical device
company dedicated to making the lives of people with diabetes easier.
Through its Omnipod Insulin Management System, Insulet seeks to expand
the use of insulin pump therapy among people with insulin-dependent
diabetes. The Omnipod is a revolutionary and easy-to-use tubeless
insulin pump that features just two parts and a fully-automated cannula
insertion. Insulet's Delivery Systems business also partners with global
pharmaceutical and biotechnology companies to tailor the Omnipod
technology platform for the delivery of subcutaneous drugs across
multiple therapeutic areas. To read inspiring stories of people with
diabetes living their lives to the fullest with Omnipod, please visit
our customer blog, Suite D: http://suited.myomnipod.com. Founded
in 2000, Insulet Corporation is based in Billerica, Massachusetts. For
more information, please visit: http://www.myomnipod.com.
Forward-Looking Statement:
The 2016 financial results contained in this news release are subject to
finalization in connection with the preparation of the Company's Form