Inspire Medical Systems Inc at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Well, great. There's a lot to talk about. Maybe we can start with the fourth-quarter pre-announcement, reported about a $7 million beat versus the street guided to $940 million to $955 million, which is ballpark high-teens to 20% sales growth year over year. Maybe you could just talk about the trends you saw and utilization improvements in fourth quarter. And any kind of color -- I'm sure we'll get a lot more in the fourth quarter call -- but what you saw in the quarter and how it's leading into 2025?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Are you seeing at all any warehousing of patients ahead of Inspire V. It's a great device. Are you seeing that trickle down into the patient knowledge or the physician?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Maybe on that full launch, you announced you've done 40 to 44 in a planned limited launch. Any positive or negative signs you've seen in that? And what does it take before you start a full launch?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : So on the slides, I think it said full launch in first half of '25. Is that more of a -- maybe I misread that.

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Okay. So it sounds like limited launch, at least --

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : If I've been listening to you and your public comments over the past couple of months, you've talked about the potential for destocking in the beginning of the year as you don't sell on consignment. So it's all on inventory and the expectation is that centers might take down inventory ahead of Inspire V launch and then rebuild inventory when the full launch occurs. So the street is sitting around $197 million in first quarter. You have the guidance out there now. I know you don't guide quarter to quarter, but any comments about how you feel about where the street sits in? And is that an appropriate amount of destocking built in?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Last I checked, I think that first quarter implies something -- with the beat in this quarter, maybe something like 13% to 15% down versus fourth quarter.

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : So that's probably in a good spot given the historical seasonality.

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Okay. Tim, there is a lot of personnel announcements this morning, some new to the firm, some not new to the firm. Maybe just spend a minute on how you think this might change or impact the company. Should we expect any disruption from all these new faces being around the office, or is it business as usual?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : We could shift gears and talk about reimbursement for a minute. I know investors are waiting for some updates on what the physician code will be and the reimbursement and where Inspire V will slot in. Do you have any updates you can share with us? Or if not, when we might hear for them?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Maybe just for us that don't know (multiple speakers) you can help us out.

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : And what is the Medicare physician fee between the two codes?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : So maybe to put that in context, what are you seeing as the average amount of Inspire IVs that doctor will typically do in a day? And what's the expectation for an Inspire V?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Tim, I even hate to ask the question because I still suffer trauma from 1.5 years ago when people freaked out about GLP-1s in the end of (multiple speakers) volumes. But GLP-1 just recently got added as a label. I have my opinion and what our checks consistently show. But I'd love to hear from you, how do you think this will impact -- good, bad, neutral -- Inspire's business?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Great. Got one minute left. Rick, maybe I could squeeze one financial in. And we're going to wait for the fourth-quarter earnings call to get the full profitability for fourth quarter and P&L metrics for '25. I know you and I have talked for a while now. And the answer is, Robbie, once we turn profitable, we don't expect to look back. Fair to assume that next-year profitability should continue to improve at least over 2024 levels wherever they end up?

Question: Robert Marcus - JPMorgan Chase & Co - Analyst : Great. With that, we're out of time. I want to say thank you. Appreciate it, and thanks, everyone, for joining us.