The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Shagun Singh - RBC Capital Markets - Analyst
: Great. So we'll just dive right in and maybe kick it off with Q1 results, guidance, and some recent trends. Maybe given that you've just reported a
few weeks back, can you just point to what the key takeaways were from Q1's earnings report? And perhaps talk about monthly trends in Q1, as
well as any update on what you may be seeing in trends quarter to date.
Question: Shagun Singh - RBC Capital Markets - Analyst
:
Question: Shagun Singh - RBC Capital Markets - Analyst
: Got it. And just on '23 guidance, I believe you beat consensus by $7 million, but you raised guidance by much more than that, I believe by $20
million. Your gross margin profile continues to be pretty strong, but just how should we think about the underlying trends of the market or what
is factored into that guidance increase more than the beat?
Question: Shagun Singh - RBC Capital Markets - Analyst
: That's great. I wanted to jump into some of the metrics which you guys share, such as new center adds per quarter, as well as new territory manager
adds per quarter. How much runway do you have for continued penetration in terms of center additions, as well as what is the right number of
centers per rep if you were to cover the entire US?
Question: Shagun Singh - RBC Capital Markets - Analyst
: Understood. And I think your guidance is for 52 to 56 per quarter on the center adds and 12 to 14 territory managers. Is that correct?
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MAY 16, 2023 / 5:35PM, INSP.N - Inspire Medical Systems Inc at RBC Capital Markets Global Healthcare
Conference
Question: Shagun Singh - RBC Capital Markets - Analyst
: Got it. I also wanted to better understand utilization. So that's the number of procedures you're doing per center, and that metric continues to
increase. I think it was 1.7 in Q1 of '23 versus 1.3 a year ago.
Can you talk to us about what is driving this trend and what level of peak utilization can you get to? Perhaps you can talk about the rates that you're
seeing in your top quartile or your top customer base.
Question: Shagun Singh - RBC Capital Markets - Analyst
: Got it. What trends are you seeing in terms of referrals by ENTs? Any color there?
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MAY 16, 2023 / 5:35PM, INSP.N - Inspire Medical Systems Inc at RBC Capital Markets Global Healthcare
Conference
Question: Shagun Singh - RBC Capital Markets - Analyst
: Right. Do you want to just elaborate on that? Why not?
Question: Shagun Singh - RBC Capital Markets - Analyst
: Got it. Any color on what the impact could be from these catalysts down the road to growth? Or just can you quantify it in any way?
Question: Shagun Singh - RBC Capital Markets - Analyst
: Got it. I guess just a couple of questions here as well. Just in terms of patient demand, it seems like it continues to be strong. What about sales
incentives? What are you doing differently on that end?
Question: Shagun Singh - RBC Capital Markets - Analyst
: That's helpful. I was hoping, with the little time we have left, maybe we can touch on Inspire 5 and just the importance of it, even from a gross
margin perspective and what you're doing differently. And then I have a follow up on replacement cycle.
Question: Shagun Singh - RBC Capital Markets - Analyst
: I'll throw in the last question. How should we think about your long-term growth targets? And I'll be looking at an inflection given that you have
the PREDICTOR study coming up, you have the launch of Inspire 5, you have a bunch of digital initiatives that we didn't talk about, as well as the
replacement cycle. So any color on an inflection or longer term growth rate?
Question: Shagun Singh - RBC Capital Markets - Analyst
: Great. That's a great place to stop. Thank you so much for being here. Appreciate it.
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