Inspire Medical Systems Inc at Jefferies Healthcare Conference Transcript

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

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. So I guess just to start, we've seen a lot of volatility in the stock with some pretty rough performance following the 1Q print. So I figured you could just start off and give us -- give you an opportunity to talk about how you think Inspire is positioned today to capitalize on the large market opportunity and what you view as key growth drivers for the company.

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. We just saw you in Houston get a big presence at the SLEEP conference. Can you just give us your takeaways from the conference, booth traffic, conversation with physicians? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2024 / 3:30PM, INSP.N - Inspire Medical Systems Inc at Jefferies Healthcare Conference

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. And just shifting gears, there's been more market discussion around potential sales force disruption, around territory splits and incentive comp changes. Can you take some time and give us an update on the state of the union with the sales reps, have you noticed any change in rep productivity or sales rep turnover?

Question: Mike Sarcone - Jefferies LLC - Analyst : Thanks, Tim. And what you think about looking forward, how do you think about the cadence of kind of new territory additions going forward, similar to what we've seen historically.

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. And at the SLEEP conference, I thought you guys did a great job of giving the investment community access to a whole range of sales professionals, a bunch of different people in your commercial organization. Do you think you could kind of highlight some of the efforts that Inspire is making in helping to improve efficiencies for providers?

Question: Mike Sarcone - Jefferies LLC - Analyst : And can you leverage Sleep Sync as well to drive greater efficiency?

Question: Mike Sarcone - Jefferies LLC - Analyst : Got it. And maybe we can loop Rick in here. So you know, you've got it to 24% to 26% sales growth for this fiscal year. Can you just talk about what's incorporated from a center utilization perspective, what you're expecting through the year? And then just maybe comment on some of the drivers of that utilization.

Question: Mike Sarcone - Jefferies LLC - Analyst : Got it. And you know when I think about other potential utilization drivers, Tim, you had mentioned Inspire 5. There is some concern that is there the possibility or a risk that patients or doctors could defer procedures with the current gen and plan as we approach Inspire 5. Could you just give us some commentary about how you view that maybe talk about the difference to Inspire 2 to 4 versus 4 to 5? And then the second part of the question is how quickly or what does the transition from current gen Inspire to Inspire 5 look like for the accounts.

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. And I guess with five minutes left, I'm happy to open up questions if anybody in the audience has any. No, okay. Another bright or one of the bright spots coming out of 1Q results was you now expect profitability for the full year 2024. So you know, maybe you can comment on what's driving that versus I think your prior expectations were the second half of 2024 and then as we look forward, I think you said you don't expect to go back, you're going to remain profitable. How do we think about the ramp in profitability and what are the drivers?

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. That's helpful, Rick. And I mean, you mentioned SG&A leverage. Are there opportunities for eventual R&D leverage?

Question: Mike Sarcone - Jefferies LLC - Analyst : Okay. And Inspire 5, what kind of impact will that have on the margins?

Question: Mike Sarcone - Jefferies LLC - Analyst : Great. And then I guess, Tim, utilization in 1Q came up as a concern for investors. I guess can you talk about what you saw in 1Q in terms of center utilization? And I know you commented that you're starting to add more community centers. So maybe talk about the different types of accounts and the different types of utilization that you're expecting over time?

Question: Mike Sarcone - Jefferies LLC - Analyst : Okay. I think we're out of time. Tim, Rick, thank you very much.