Inspire Medical Systems Inc Q3 2020 Earnings Call Transcript

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

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : I will say congrats on a phenomenal quarter. Well done. I'll just ask both my questions upfront into one bigger question. It just really came in well above, I think, even some of the better case expectations. By my math, reps were doing $1.4 million annualized revenue to get to your guidance range that's over $1.5 million in annualized revenue in the fourth quarter. Centers are doing close to $400,000 of revenue per center. So it's clear that each center is doing more procedures rather than just adding more reps and more centers here. So I was hoping you could give us a deeper accounting of where you are today in terms of how deep your center penetration is? How much more is there to go? And if you can wrap in some of the DTC advertising and what you're doing on the patient side to drive such impressive growth year-over-year? I imagine people will still say your fourth quarter looks conservative in light of your third quarter, which I think everyone will appreciate. But maybe you could just help us understand what's really going on here, where you see yourself in the curve? And how much more is there to go?

Question: Ravi Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Just one on the coding announcement, Rick, Tim. Just -- it sounds like you're expecting a higher kind of rate based on the RVU selections that may come through next summer. But let's just say, RVUs are held flat. What would be kind of the change -- overall change in reimbursement? Maybe just to give us a benchmark. Then I'll just ask my second question upfront. Just curious to understand how you're accounting for ROI on some of your patient spend in terms of how quickly you expect people to come in. I mean your approval times are being reduced. Your kind of insurance, your patients submitting for prior auths are going up. Just how much of that is kind of related to the spend on advertising? If you could help us tease that out.