INSULET CORP Q1 FY2025 earnings call

• Tim Scannell introduced Ashley McEvoy as the new President and CEO, highlighting her background and vision to drive growth. - Ashley McEvoy emphasized her leadership pillars of purpose, people, and performance, and discussed focusing on innovation, growth in U.S. type 1 and 2, and international expansion. - Ana Chadwick detailed first quarter results: revenue growth driven by Omnipod, strong new customer starts, gross margin of 71.9%, investments in sales force expansion, sensor integrations, and debt management (issuance of notes, credit facility upsizing).

Total company revenue was $569 million, growing 30% year-over-year. Omnipod revenue grew 29%. U.S. Omnipod revenue grew 26%, with over 85% of U.S. new customer starts from MDI and over 30% from type 2. International revenue was 36% above the high end of guidance. Gross margin was 71.9%, adjusted operating margin was 16.4%. Revenue contribution: Omnipod was the key driver, with U.S. and international segments showing strong growth.

• Second quarter total company revenue growth expected 23%-26%, U.S. Omnipod 22%-25%, international Omnipod 27%-30%. - Full year 2025: total Omnipod revenue growth 20%-23%, total company revenue 19%-22%, gross margin raised to ~71%, adjusted operating margin ~16.5%. Foreign currency impact expectations adjusted, with favorable impacts considered. - Reaffirmed focus on investing in R&D and sales and marketing while expecting operating leverage.

• Tariffs were mentioned as a potential impact, but Insulet is positioned to manage through with manufacturing strengths and efficiencies. - Foreign exchange fluctuations could impact revenue, but guidance accounts for favorable and unfavorable impacts.

Q: Congratulations Ashley on the new role, what excited you about Insulet and your vision?

A: Ashley mentioned the diabetes space is impactful and innovative, praised the talented team and Omnipod's platform, and stated the strategy is intact with focus on growth and margin expansion.

Q: Robbie Marcus asked about margin expansion vs top line focus and type 2 pump adoption.

A: Ashley reaffirmed double-digit growth and margin improvement, and Eric Benjamin discussed type 2 launch strategy including SECURE-T2D data, sales force expansion, and DTC effectiveness.

Q: Jeff Johnson asked about second half guidance.

A: Ana Chadwick stated guidance is intended to be delivered with strong business trends continuing.

Q: Larry Biegelsen asked about new start growth.

A: Ana Chadwick confirmed strong sequential and year-over-year new start growth, with Eric Benjamin citing Omnipod 5's differentiation as the driver.

Q: Joanne Wuensch asked about margin expansion and investments.

A: Ashley McEvoy highlighted industry-leading gross margins and reaffirmed op margin guidance, stating investments are rigorously modeled for future growth.

Q: Michael Polark asked about international launches, especially Middle East.

A: Eric Benjamin discussed Middle East launches expected end of 2025/early 2026, and international market stages including U.K., Germany, and new markets.

Q: Matt O'Brien asked about market acceleration in type 1 and 2.

A: Eric Benjamin discussed type 2 penetration potential and alignment with type 1 growth trends, noting early positive signs in type 2 launches.

Q: Steve Lichtman asked about DTC efforts.

A: Ashley McEvoy mentioned strong DTC results with higher conversion rates from leads to customers.

Q: Issie Kirby asked about Malaysia ramp and tariffs.

A: Ashley McEvoy stated Malaysia ramp is on track to be accretive to margins, and tariffs are managed with manufacturing strengths to maintain gross margin guidance.