Full Press Release Details
Reports Third Quarter 2016 Financial Results
Quarter Revenue of $94.9 Million, up 33% Year-Over-Year, Exceeds
Margin Improves to 58.6%
Raises Full Year 2016 Revenue Guidance to a Range of $362 to $365
million, from $345 to $355 million; Approximately 38% Year-Over-Year
BILLERICA, Mass.--(BUSINESS WIRE)--November 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 September 30, 2016.
Third Quarter Highlights and Recent Developments:
Third quarter revenue of $94.9 million exceeds the Company's guidance
of $88 to $91 million and represents year-over-year growth of 33%.
U.S. Omnipod revenue of $59.6 million, an increase of 18%.
International Omnipod revenue of $19.1 million, an increase of 41%.
Drug Delivery revenue of $16.1 million, an increase of 128%.
Gross margin of 58.6%, up over 1,400 basis points, reflecting improved
manufacturing and operational execution.
Publication in the Journal of Diabetes Technology & Therapeutics demonstrating
the quality of life benefits of Insulet's Omnipod System for people
living with Type 1 and Type 2 diabetes.
Successful 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
"We are extremely pleased with our continuing positive momentum and the
results our team is achieving through consistent execution of our
winning strategy," said Patrick Sullivan, Chairman and Chief Executive
Officer. "We continued to achieve growth across all business lines,
generating better-than-anticipated revenue and driving additional gross
margin expansion in the third quarter. We are successfully implementing
our commercial and operational initiatives, as well as continuing to
take steps forward in our product pipeline development efforts,
including our artificial pancreas program. Longer-term, we remain
focused on delivering sustainable and profitable growth and increasing
value for our shareholders."
Third Quarter 2016 Financial Results:
Third quarter 2016 revenue increased 33% to $94.9 million, compared to
revenue from continuing operations of $71.4 million in the third quarter
Operating income for the third quarter of 2016 was $2.4 million,
compared to an operating loss of $14.8 million in the third quarter of
Net loss from continuing operations for the third quarter of 2016 was
$3.0 million, or $0.05 per share, compared with a net loss from
continuing operations of $18.0 million, or $0.32 per share, in the third
For the year ending December 31, 2016, the Company is raising its
revenue guidance to a range of $362 to $365 million, from $345 to $355
million, compared to 2015 revenue from continuing operations of $263.9
million1. This represents year-over-year revenue growth of
approximately 38% at the mid-point of the range.
For the quarter ending December 31, 2016, the Company is introducing
revenue guidance in the range of $99 to $102 million, compared to
fourth quarter 2015 revenue from continuing operations of $83.8 million1.
This represents year-over-year revenue 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.
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 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 fourth quarter of 2015 (unaudited) are included as
an appendix to this press release.
Insulet will host a conference call at 4:30 p.m. (Eastern Time) on
November 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 84511802. 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:
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. 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
10-Q for the quarter ended September 30, 2016. This press release
contains forward-looking statements concerning Insulet's expectations,
anticipations, intentions, beliefs or strategies regarding the future.
These forward-looking statements are based on its current expectations
and beliefs concerning future developments and their potential effects
on Insulet. There can be no assurance that future developments affecting
Insulet will be those that it has anticipated.