Inspire Medical Systems Inc at KeyBanc Healthcare Forum (Virtual) Transcript

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

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : So just to get things started here. Getting a little bit further into 2025, compared to your fourth quarter earnings call, I was just curious if you guys could kick things off with maybe a high level update on how you're viewing the underlying environment around procedural activity as well as trends around position contacts and website traffic.

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right. Great. And just turning back to the fourth quarter call a couple weeks ago, you came out and reiterated the guidance that you provided at a conference earlier this year, specific to the revenue guidance $940 million to $955 million, just wondering if you could unpack that a little bit REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 7:00PM, INSP.N - Inspire Medical Systems Inc at KeyBanc Healthcare Forum (Virtual) and just talk through some of the bigger puts and takes behind that range. I guess my question would be is the range mostly tied to when Inspire V fully launches or are there some other factors that you think are bigger swing factors for this year?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right. That makes a lot of sense, and we'll keep our eye on some of those topics as the year progresses. Just maybe turning back, I think you commented a little bit on you make a very big push in the fourth quarter every year and usually comes in quite strong. And then, 1Q is always the softest quarter just thinking about how procedures are done. Maybe if you could just expand a little bit or elaborate on how you're viewing seasonality in 2025 compared to the past several years and just like specifically given the mid-ear timing of the potential Inspire V launch.

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : Yeah. For sure. Appreciate that color, Rick. The one other interesting topic this year just with guidance and how folks are thinking about their modeling assumptions, you're making some changes to the reporting metrics which you've been telegraphing for over a year now. But just kind of following up on that topic, wanted to ask why you decided to make those changes? And then specifically, what metrics investors should expect will be provided on a go-forward basis each quarter?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : Yeah. It makes makes sense. I guess maybe just a little bit of a follow-up. Is it partially that you're viewing revenue per territory as more relevant? I know there was one consideration that you have implanters who are opening second centers which takes away from their time and weighs on like a same-store metric. Is that part of the thinking or anything else?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : Sure. And one other question I had just on this year and some of the procedure trends, like a pretty big topic and goes around 1Q and 2Q of last year were some of the issues with prior authorization and the process around that, you guys have gone in and made some changes in how you're going about doing that. And just curious if you could discuss how those changes have worked and if you're seeing improvements to overall patient access and efficiency to you know get get the therapy that they need.

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right, let's shift gears a little bit and talk about, Inspire V, which is the big upcoming product launch that everyone is really excited for. I'm just curious if we could start and maybe give an update where you currently stand with the limited market release and how many centers currently have the device and what's been the latest feedback over the past three or four weeks?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : Great to hear. And just a quick follow-up. I'll give this one a shot. You've talked about a full market launch at some point in 2025. I know at one point you thought it would be earlier in the year now to sometime in the year. Are you able to provide any more color or specificity around when you possibly move into a full market launch?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : Were there any like surprising challenges that took place with this early manufacturing ramp that's currently underway? Just thinking about like a little bit of the change in language for full market launch. And if so, are those kind of in the past like how have you been able to address like any issues that might have come up?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : It makes a lot of sense. And I'm guessing those manufacturing partners are also just as eager to kind of kick it up and they get more production flowing.

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : I had one question coming in from the audience. If you guys care to comment on how many U.S. cases have you performed so far in this LMR?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right, fair enough. I'm guessing that you've been asked this question today in some of the meetings. But maybe just trying another way from what we've already heard people ask. I think there's just this sense of concern around like an air pocket or potential couple of softer weeks ahead of this full market release. I'm just curious maybe if there's any like strategies that you can employ to try and limit the extent of that if it does happen.

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : For sure. I think you kind of hinted that you're not currently like advertising this product or going out of your way to tell potential patients about it. Just thinking ahead a little bit, are you thinking about changes to the marketing strategy, not necessarily dollars spent, but just in terms of kind REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 7:00PM, INSP.N - Inspire Medical Systems Inc at KeyBanc Healthcare Forum (Virtual) of like communicating what these incremental features and benefits are maybe to patients who had heard of Inspire but had certain concerns or like any overall change in messaging to the public that you're thinking about?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : I think the most obvious feature that stands out to everyone is change from second lead to the accelerometer which has extremely obvious benefits for the implanter. Just thinking about from like a patient perspective, do you think that there's other features that maybe don't get as much discussion from the investment community that are like maybe more incremental or like patient-experience oriented that you'd share or just like other benefits to the patient outside of kind of simpler procedure and maybe some of the remote software updates?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : I think it's super exciting. You're getting the implant and you know that from that point going forward it's only going to get better with new features. It's almost like getting a new phone and being able to do software updates and one year, you have a new feature and sleep detection stands out as something really exciting for the patient and -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 7:00PM, INSP.N - Inspire Medical Systems Inc at KeyBanc Healthcare Forum (Virtual)

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : Absolutely. Just one other question on Inspire V, and it's come up on the earnings call and a couple other calls. It's just the change in reimbursement coding. I was hoping you could just recap for people who might not be like as familiar with the changes specifically what's changing. And then my question is just assuming that the doctors are going to be making a comparable amount per minute of procedure time, is there less of a selfish incentive for them to push through more procedures if if they're not necessarily making more money per minute spent?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right. Got it. We have just maybe 2 or 3 minutes left. I'm going to try and squeeze in a couple of questions here. Just one on competition, from our point of view, it's been relatively quiet. I think we've gotten some directional news from one of the competitors. But maybe just open ended for you guys, have you seen any big developments out in the field? And then just like how are you thinking about the risk of competition as it relates to the 2025 plan? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 7:00PM, INSP.N - Inspire Medical Systems Inc at KeyBanc Healthcare Forum (Virtual)

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : I'm going to try and squeak into two really quick ones to finish this off here. One from one from the audience, I think you guys addressed this, at least during earnings, but do you feel generally comfortable with how the street is modeling the cadence of revenue this year based on the guidance?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right. And then last one, you have a little bit of news come out around the CID and false claims. Are there any updates you're able to share on that? And if not, are there any like key milestones that you have this ability to as we work toward a resolution there?

Question: Brett Fishbin - KeyBanc Capital Markets Inc. - Analyst : All right. Tim, Rick, Ezgi, thank you so much for taking the time to join us today. Thank you to everyone in the audience for tuning in and have a great rest of the day. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 7:00PM, INSP.N - Inspire Medical Systems Inc at KeyBanc Healthcare Forum (Virtual)