Insulet Corp (PODD) Reports Robust Full Year and Q4 2023 Financial Results
Full Year Revenue: $1.7 billion, a 30% increase year-over-year.
Fourth Quarter Revenue: $509.8 million, a 37.9% increase year-over-year.
Gross Margin: Improved to 68.3% for the full year, up 660 basis points.
Operating Income: $220.0 million for the full year, a significant increase from $37.6 million in the prior year.
Net Income: $206.3 million for the full year, compared to $4.6 million in the prior year.
Adjusted EBITDA: $329.2 million for the full year, representing 19.4% of revenue.
Omnipod Growth: Omnipod revenue up 33.1% to $1.7 billion for the full year.
On February 22, 2024, Insulet Corp (NASDAQ:PODD) released its 8-K filing, announcing a significant increase in revenue and operating income for both the full year and fourth quarter of 2023. The company, a global leader in tubeless insulin pump technology with its Omnipod brand of products, has continued to build on its mission since its inception in 2000, simplifying continuous subcutaneous insulin infusion therapy for diabetes patients worldwide.
Financial Performance and Highlights
Insulet Corp (NASDAQ:PODD) reported a full year 2023 revenue of $1.7 billion, marking a 30% increase from the previous year and surpassing the guidance range of 26% to 27% in constant currency. This growth includes an estimated $20 million to $25 million from U.S. pharmacy wholesaler orders accelerated due to the implementation of a new ERP system. The U.S. Omnipod revenue saw a notable increase of 41.4%, while international revenue grew by 13.0% in constant currency.
The company's gross margin for the full year improved significantly to 68.3%, up from 61.7% in the prior year. The adjusted gross margin, which excludes certain items related to voluntary medical device correction notices, stood at 67.7%, reflecting a 150 basis point increase. Operating income for the year reached $220.0 million, or 13.0% of revenue, a substantial improvement from the 2.9% of revenue in the prior year. Adjusted operating income, which excludes specific adjustments, was $208.5 million, or 12.3% of revenue.
Net income for the full year was reported at $206.3 million, or $2.94 per diluted share, a significant leap from the $4.6 million, or $0.07 per diluted share, in the prior year. Adjusted net income, which excludes certain items, was $192.2 million, or $2.75 per diluted share. Adjusted EBITDA for the full year was $329.2 million, or 19.4% of revenue, compared to $224.8 million, or 17.2% of revenue, in the prior year.
Fourth Quarter Financials
The fourth quarter of 2023 also saw impressive growth, with revenue of $509.8 million, a 37.9% increase year-over-year, and exceeding the guidance range. The total Omnipod revenue for the quarter was $501.0 million, a 36.7% increase in constant currency. U.S. Omnipod revenue grew by 42.9%, while international revenue increased by 18.0% in constant currency.
Gross margin for the quarter was 70.9%, up from 58.8% in the prior year. Adjusted gross margin was 70.7%, up 620 basis points. Operating income for the quarter was $106.4 million, or 20.9% of revenue, a significant increase from the 6.4% of revenue in the prior year. Adjusted operating income was $105.5 million, or 20.7% of revenue.
Net income for the quarter was $103.3 million, or $1.44 per diluted share, compared to $17.0 million, or $0.24 per diluted share, in the prior year. Adjusted net income was $100.6 million, or $1.40 per diluted share. Adjusted EBITDA for the quarter was $137.0 million, or 26.9% of revenue, compared to $71.4 million, or 19.3% of revenue, in the prior year.
Operational and Market Achievements
Insulet Corp (NASDAQ:PODD) has achieved its eighth consecutive year of 20% or more constant currency revenue growth, with significant milestones including an estimated 425,000 active global customers using Omnipod products. The company also reported being #1 in U.S. new customer starts in 2023 and the most prescribed Automated Insulin Delivery (AID) System in the U.S. for the year.
Recent product launches and approvals, such as the limited market release of Omnipod 5 integrated with Dexcoms G7 sensor and CE Mark approval for Omnipod 5 integration with Abbotts Freestyle Libre 2 Plus sensor, highlight the company's commitment to innovation and market leadership.
2024 Outlook and Guidance
Looking ahead, Insulet Corp (NASDAQ:PODD) expects revenue growth for the full year 2024 in the range of 12% to 17%, with specific growth expectations for its product lines. The company anticipates a gross margin of 68% to 69% and an operating margin of approximately 13% for the year, excluding certain estimated impacts.
Insulet Corp (NASDAQ:PODD) remains well-positioned for continued profitable growth and value creation, with a focus on simplifying life for people with diabetes globally. The company's financial strength and operational achievements underscore its status as a leader in the Medical Devices & Instruments industry.
For more detailed information, investors and stakeholders are encouraged to review the full here) from Insulet Corp for further details.
This article first appeared on GuruFocus.
