The chart below shows how INSP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INSP sees a -0.92% change in stock price 10 days leading up to the earnings, and a -3.86% change 10 days following the report. On the earnings day itself, the stock moves by +0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Surprise Performance: Inspire Medical Systems reported a Q4 2024 EPS of $1.15, significantly exceeding expectations of $0.74, marking a strong performance in earnings.
Q4 Revenue Surge: Total revenue for Q4 2024 reached $239.7 million, a 25% increase from $192.5 million in Q4 2023, demonstrating robust growth.
Annual Revenue Increase: For the full year 2024, revenue totaled $802.8 million, reflecting a 28% increase over $624.8 million in 2023, indicating strong annual growth.
Net Income Turnaround: Net income for the full year 2024 was $53.5 million, compared to a net loss of $21.2 million in 2023, showcasing a significant turnaround to profitability.
Operating Cash Flow Increase: The company generated $130 million in operating cash flow for the full year 2024, enhancing its cash position to $517 million, which supports future growth initiatives.
Negative
Operating Expenses Increase: Total operating expenses for the quarter were $171.8 million, an increase of 11% compared to $155.2 million in the fourth quarter of 2023, indicating rising costs that could impact future profitability.
Interest and Dividend Income Decline: Interest and dividend income totaled $5.5 million in the quarter, a decrease from $5.9 million in the prior year period, reflecting a decline in income from investments.
International Revenue Insights: Revenue outside the U.S. was $8.1 million, which, despite a 163% increase year-over-year, remains a small fraction of total revenue, highlighting reliance on the U.S. market.
Legal Risks and Investigations: The company received a civil investigative demand from the Department of Justice regarding marketing and reimbursement practices, introducing potential legal risks and uncertainties.
Net Income Margin Analysis: Despite achieving profitability in 2024, the net income margin was only 7%, compared to a net loss margin of 3% in 2023, indicating that while the company is profitable, margins remain thin.
Inspire Medical Systems, Inc. (NYSE:INSP) Q4 2024 Earnings Call Transcript
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