Inspire Medical Systems Inc at JPMorgan Healthcare Conference (Virtual) Transcript

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

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Yes. I mean, it's up to you. I have lots of questions for you. So maybe we can -- I'll ask a few. Let's start with the fourth quarter preannounced results you put out last week. I mean, almost a 20% beat over what the sell side was expecting. So I want to start there, what drove fourth quarter results

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : I'll touch on first quarter in a second. But sticking with the fourth quarter, what did you see in areas like New York where Omicron hit more severe, and a little earlier in the quarter. If I think back to Delta, you were able -- that was much more of a localized impact in certain areas, and you were able to relocate to suburban hospitals or outpatient centers. What about in areas like New York and other areas impacted with Omicron where it's more widespread, and staffing and patient issues rather than just filled up.

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : And are you seeing cancellations or just rescheduling for a week or 2 later?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Tim, what about moving -- you move from the three-incision procedure to the two-incision procedure, how much of a benefit is that shorter

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Great. Maybe if we touch on first quarter because you did mention that you're saying expect a slower slightly impacted January, less so in February and March. Maybe just help us understand how you're coming up with that. How are you able to look forward to a normalized February and March? And what assumptions do you have underlying that?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : So let me ask it another way. There's about a $20 million range of sell-side forecasts for the first quarter. For next year, the Street's sitting at $62 million. Is that a good place for us to be thinking about? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 12, 2022 / 2:45PM, INSP.N - Inspire Medical Systems Inc at JPMorgan Healthcare Conference (Virtual)

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Great. Tim, maybe we could spend a minute on Inspire V. This is your next generation -- I'll put it in the framework of -- you have some competitors who are coming down the pipe, different types of technologies, but still, let's call it, the first sort of real competition you may be facing in the future. Maybe compare how Inspire V is different versus Inspire IV, and how you feel about your competitive positioning with Inspire V versus what we'll see in the future potentially from competition?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Rick, I want to get you involved here a little bit as well. We hear about supply chain issues, rising cost issues from many companies that have been presenting this week. Are there any issues with the supply chain for Inspire V? I imagine it's a bit different componentry than Inspire IV. Anything that worries you as you sit here today ahead of the launch next year?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Great. Clearly, fantastic growth on the top line through 2021. And you're launching the national advertising program here. How should we think about the pace of investments in 2022? And is the focus still on driving top line growth? Or are we going to see a little bit of margin drop down in '22?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Great. Unfortunately, we're out of time. I want to thank you. Great discussion, and wish you and everybody else on the line a wonderful rest of their day.

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Yes. Absolutely.