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Insulet reports second quarter 2020 revenue increase of 28% Year-Over-Year

Insulet Corporation (NASDAQ: PODD) (Insulet or the Company), the global leader in tubeless insulin pump technology with its Omnipod® Insulin Management System (Omnipod System), today announced financial results for the three months ended June 30, 2020.

Second Quarter Financial Highlights:

  • Second quarter 2020 revenue of $226.3 million, up 27.8%, or 28.8% in constant currency1, compared to $177.1 million in the prior year, exceeds guidance of 19% to 23% on a constant currency basis
    • Total Omnipod revenue of $202.0 million, an increase of 25.6%, or 26.8% in constant currency
      • U.S. Omnipod revenue of $128.8 million, an increase of 31.3%
      • International Omnipod revenue of $73.2 million, an increase of 16.7%, or 19.7% in constant currency
    • Drug Delivery revenue of $24.3 million, an increase of 49.1%
  • Gross margin of 63.0%, down 270 basis points, including an approximate 180 basis point impact due to COVID-19 related safety and mitigation costs
  • Net income of $14.4 million, or $0.22 per diluted share, compared to net income of $1.4 million, or $0.02 per diluted share, in the prior year
  • Adjusted EBITDA1 of $44.2 million or 19.5% of revenue, compared to $21.9 million or 12.4% of revenue in the prior year

Recent Strategic Highlights:

  • Presented first outpatient data for Omnipod 5 powered by Horizon™ at the American Diabetes Association scientific session; dataset demonstrates best-in-class usability and time in closed loop, excellent time in range, and statistically significant improvements in hypoglycemia compared to prior therapy
  • Launched new Omnipod DASH™ release in the U.S. with the ability to: (i) automatically upload data cloud-to-cloud; (ii) push future software updates wirelessly to customers; and (iii) choose Spanish language
  • Installed solar panels at the Company’s global headquarters and U.S. manufacturing facility to help reduce Insulet’s carbon footprint
  • Successfully completed a $500 million equity offering to further strengthen the balance sheet

“Thanks to our team’s relentless focus on our mission and the strength and durability of our recurring revenue model, we delivered another quarter of financial and operational results that exceeded our expectations,” said Shacey Petrovic, President and Chief Executive Officer. “Our strong financial profile allows us to continue to invest in our business and advance important initiatives, including continuing clinical trials, maintaining uninterrupted supply of Omnipod, and growing our global customer base. We are confident in the steps we are taking to mitigate the impact of COVID-19 on our business and we remain well positioned to drive robust organic growth and value creation, and deliver on our mission to improve the lives of people with diabetes.”

1 See description of non-GAAP financial measures contained in this release.

2020 Outlook:

It remains difficult to accurately predict the progression of COVID-19 and the extent of the resulting disruption. The Company has assumed that the pandemic and recessionary headwinds will persist throughout 2020, with a gradual recovery starting in the third quarter as economies begin to open and customers are able to resume more normal physician meetings.

Revenue Guidance (in constant currency):

  • For the year ending December 31, 2020, the Company is raising its revenue guidance growth range to 17% to 19% (previously 15%). By product line, the Company now expects:
    • Total Omnipod to be 18% to 20% (previously 18%)
      • U.S. Omnipod to be 19% to 21% (previously 19%)
      • International Omnipod to be 17% to 19% (previously 16%)
    • Drug Delivery to be 3% to 6% (previously at the mid-point of a 15% to 20% decline)
  • For the quarter ending September 30, 2020, the Company expects revenue growth of 13% to 15%. Revenue growth ranges by product line are:
    • Total Omnipod of 12% to 14%
      • U.S. Omnipod of 14% to 16%
      • International Omnipod of 9% to 11%
    • Drug Delivery of 23% to 28%

Adjusted EBITDA:

For the year ending December 31, 2020, the Company is reaffirming its expectation of Adjusted EBITDA as a percentage of revenue in the range of 13% to 17%, closer to the low end of the range.

Conference Call:

Insulet will host a conference call at 4:30 p.m. (Eastern Time) on August 6, 2020 to discuss the financial results and outlook. The link to the live call will be available on the Investor Relations section of the Company’s website at http://investors.insulet.com, “Events and Presentations,” and will be archived for future reference. The call may also be accessed by dialing (844) 831-3022 for domestic callers or (315) 625-6887 for international callers, passcode 6988289.

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