PODD - Earnings call transcript Q2 2020

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Insulet Corporation Second Quarter of 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Deborah Gordon, Vice President, Investor Relations.

Deborah Gordon

Lauren. you, Thank Good afternoon. us earnings joining for second for Insulet today XXXX you call. quarter thank And Petrovic, Chief Officer. President Wayde Shacey me With and Vice and McMillan, Executive President Chief Financial Executive and Officer; archived The this section in press discussing XXXX quarter second replay our the guidance of third website, XXXX and full call be IR release results of quarter and and on will is the website. our our year available also

the We made course like would to you of by I in be Insulet a filings forward-looking statements and to from during you our this begin, materially we Before limitations for contained such statements. refer detailed forward-looking of that inform cautionary may ask call differ certain of statements explanation please inherent SEC the could current that expectations. the

assessing discuss and uses foreign interested measures with operating to measure revenue align as analysts period. which These revenue, our will respect and performance period constant we EBITDA are of they to non-GAAP of is with adjusted as helpful a from management We measures effect to in believe exchange. and parties the financial comparative other namely performance, that currency what operating investors, supplemental measures growth our excluding also our performance,

a over the regarding currency otherwise stated, turn basis, on all rates basis. and Additionally, I’ll year-over-year unless will Shacey. And that, call financial dollar constant on growth changes be will a commentary with be percentage and to revenue all

Shacey Petrovic

Good for us. Deb. joining Thanks, everyone, and afternoon, you thank

the revenue to We nearly extraordinary serving with $XXX dimension. COVID-XX on achieved communities partners dedication and exceeding our around over providers, our to every second the people our by and growth is uncertain these team. product a The Insulet, to us of it a expectations. across quarter deliver revenue million, quarter the This customers helped tremendous While our world. XX% of in revenue product employees, diabetes, an continues challenge Omnipod our such And times execution record results represented single line. XX% in Delivering was total line. of increase driven quarter growth a our every healthcare testament

have very of We provide insulation. to our model place. fortunate us The are and fundamentals significant strong recurring durability strength revenue in

this in performance and of half reflective the of first the XXXX first great XXXX. momentum is quarter our year Our of in

seeing that There While we we are two-part of our it’s an of COVID, impact performance for many a celebrate. story aspects are Insulet.

new We to serve are customers scalable are ways our that more and more creating engaging.

the the longer come. in years how into details chain toward thanks the are adding on innovation our year. our emerge about And call, across I’m supply our progress and talented to on through dive our impact our imperatives the questions. will expectations. achievements committed the the COVID near-term, making to we going half the strategic impact. manage guidance, better and we to to will many continuing and today’s term next in resilient the But COVID market and capabilities for the our then financial revenue this speak are capacity our position preparation of results our starts, challenge, environment, growth And we We’re and despite company ultimately, this Insulet compounding On are of take we even more Wayde in first and serve face the from to building team. mission maximize stronger and the significant this our half to in year for launch this will In and XX% operations have on reality of total next. due in of pandemic, of to to expect and new XX% Omnipod programs. grow we revenue X our we impact second rates exciting manufacturing Omnipod making XXXX,

customer base quarter. global our continue during grow We the second to

the discussed our expectations at call, landed to compared as start anticipated XX% new to of customers XX% to We on the expectations. our exceeding Omnipod original our we As year. last had fewer closer XX%

towards throughout teams to driven increase the access it Omnipod expand And deliver expanded manufacturing quarter release us who innovation also DASH, was piloted globe. to resilience grow commercial new was our tools, while novel by who adoption our to programs and teams virtual Omnipod utilization supported performance and Omnipod of exciting onboarding our and Our advancing our Omnipod to affordable an across helped awareness of operations of continue X by launch. commercial and and the capacity

has the life-changing. deliver our from key our We progress global factor advantage form made world is consumer-focused since to and the hear our and innovation; Starting four, us with of pumps from across The that Omnipod ease founding. around the footprint; organization. to the other with on imperatives. customer the quarter, who experience; One, excellence ensure the global consumer-focused drive freedom Podders been and This two, associated continued pod best strategic our innovation. we MDI expand come use three, operational

Omnipod business both. both users choose makes use of platform offering a few and United to the delivery. Adoption continues differentiated channel of This customers. to a ease access fully the primarily increasing several is automated DASH and Omnipod longer the form range Over Omnipod years, value factor quarters, a growth accelerated, on pay-as-you-go our it insulin no CGM and to of factor cloud a CGM and launched differentiated from as the relentless Omnipod. uniquely accessible Omnipod consumer-focused the last the through In our use, of driven X in States. insulin customer including Last is compelling have model, systems other the eliminates to integrated and we’ve is form by our the apps that base. testament even automated our DASH market came the grow form integrated benefited market. of delivery between a to This and of will companion year, we factor And restrictions grow, Omnipod of to innovation, ease testament connectivity. broader focus to offers pharmacy treatment

We XX% new approximately typed continue of the type both last segments. the customers with adoption U.S. were MDI among X and users to second X quarter. type our see quarter, strong in In consistent X Omnipod

June, We to of our type to diabetes differentiated X we great continue uniquely automatic In the through cloud instant data within also and data restrictions to the have real-time and These improve market covered, features approximately make a to so A with channel. major continues access positioned upfront a lives include costs. uploads need release, product including of for primarily clinicians with DASH access their Omnipod computer. our Omnipod expand serve, to and population. are further launched pharmacy without given use. the through and and no from the strides that ease pharmacy that DASH now several we connect simplicity users no XX% Coverage download

push users by States. and Omnipod our clinic onboarded have We of virtual received majority future saw our patient our The enable vast to well now both language are the for X type are easily of new ease In customers on providers. onboarding and differentiated use have MDI healthcare get and virtually. this second Omnipod of their in environment and quarter, expanding of we can consumers X tools, homes. clearly comfort type been is which already wirelessly how users offer heard simplicity And we also started And use updates the environment. from now visits have were been users telehealth Spanish to we delighted for vision to from the customers. as in United valuable to software in can working option streamline Omnipod DASH workflow. years We on an that this current our

on COVID X users Our capabilities scalable when impact customers. it Omnipod of have a Omnipod virtual also consumer-friendly, new of training lay launches. mitigate helped of they for growth cost-effective and the And foundation to new to onboarding

significant and of the our Diabetes having Association Conference. progress with in and study next track Omnipod study in closed X the made we the our to X American Virtual the launch data and best-in-class we’re first and addition remain In time year. success resumed We at first usability The June from DASH, to pre-pivotal Omnipod demonstrated pivotal Omnipod presented on on and results range great in half participants prior finish Omnipod enthusiastically launch of first More X the to requested by hypoglycemia the have using time solid in to completed participants a and continue us compared putting in QX excellent and X. half than improvements half all participants loop, have position cryo should Omnipod study, statistically pivotal Omnipod of the XXXX. therapy. all to X Virtually

data, extension will innovation which supporting on So us pipeline. term helpful we an collect our and remain been terrific. clinicians, insights allows X Participant to for This to phase feedback payers to for longer has additional are Omnipod be enable them product.

an HCPs limit excellent of is with compelling back”. have we’re just and We incremental bring Omnipod extent which time great help my insulin to hear users from on Type multiple designed factor, need to didn’t the diabetes, third a my points, still together week, to the people has design dependent who as form that their set family delivery. millions customizable brings and X people that X to market, X mom tweak get we to delivery and range, I injections. and insulin touched and revolutionize living last X, Omnipod to said the back, child AID outcomes. be relying to Type system and improvement now low insulin Just adaptively were we automated know designed daily We X to “with Omnipod pods to for such, our system to parent hypoglycemia,

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dependent smartphones, real-time control benefits PDMs And and real-time could user, that to in also SIM caregivers, benefit all users loved our our Omnipod available that companion and pharmacy users We form access. to of enables high discover that we from in as remarkably our of evidenced our apps this enjoy This and apps easy but to nearly after X comes coming been insulin companion smartphone usability CGM market years to has system be data work in what clinical begun and exceptionally provide X generation everyone, every diabetes, those without and platform. second scores. a to without systems and see AID will also use Omnipod pump unique see living the X Wi-Fi X and And the being data easy to ensure on the as those insulin to We therefore Omnipod Omnipod we card. with factor designed We’ve like clinicians. pediatrics X. use data beyond. ones enormous isn’t doubling cloud serve opportunity given even and Type the more to for know that Type will a by ease of benefits wanted comes start include of our

serve to investing are these growing we markets. So

We are insulin with including dependent generation X and investing in demonstrating and pediatrics Omnipod next benefits the X living of very in young expanding people populations, Type diabetes. in technologies

We the next partners generation technologies are outcomes further millions the advancing continuing the improve to automation, and people and the with we And simplify our Abbott burden with users. are living outcomes and from improve dependent increase reduce across for our to Dexcom, algorithm with globe. to for at diabetes integrate Tidepool, our of all goal experience insulin products

the been continued the our made more into markets. international international opportunity, not good enthusiasm expansion for We has and our this a our This for and heavily our with markets of both throughout the in we in does pandemic to our markets; quarter, are in of launch. some recovery growth others our in progress our significant European turning preparing area DASH Now by seeing Omnipod terms markets our diminish business unmet impacted progress need. slower of existing expansion

last we’re readiness Our the international release launch Italy on product. and was successful UK, the training, Netherlands customers in limited team forward looking preparations, market to and operational moving supply next and full into The market turning global for love DASH has the And our and with four focused been strengthening manufacturing release been excellence; our market years, year. operations. we have early Omnipod to chain finally, and

with especially served This resilient during to We our have U.S. manufacturing more us pandemic. in our facility plant addition increased operations China. of capacity and made the well has our current compliment the

manufacturing during the two you producing we months, automated on Omnipod of U.S. our know, many began last first As XX highly lines.

highest Although quality ensures increase near-term, of on our we’ve an we the the this deliver able gain every customers. ramp these lines, one impact the In been product had pandemic can we to capacity continue global has operations. and quickly how efficiencies and to to throughout each our

demand to and be Over to provide for grow. the support will plan our capacity further we capacity continues U.S. to are across what and as for our long-term, Omnipod We manufacturing confident for manufacturing manufacturing expand products our operations, chain required enthusiastic X. will demand our supply U.S. prepare

taken As our of of part we goals, have of this end, logistics steps operations. chain reduce supply To large supply our emissions. to to chain and portion reduce have environmental corporate impact sustainability a the localized we our

we sustainable wellbeing reduce We while and also there as is to continue carbon In ocean the COVID, to remarkable benefit in deliver more times. understand be our ways. and our The energy. cost footprint. manufacturing ability our certainly to renewable powered challenges to committed fostering and strength these and environment rising are moved and our differentiation faces support are a to to our friendly. facility and uncertain to company attractive the employees environmentally our to our the our summary, short-term business a In long-term urgency has to We we key these fully communities. headquarters transitioned our our by And insulation significant solar-based revenue business growth recurring and which customers, cost importance both challenges protect to of are further that freight, effective of provide and due June, step, being in model – U.S. durability us of more team

growth to of over most value position call creation the product with I in lives Wayde. strong improve talented organic to business powerful team, long-term investments the will to model technologies the our over living to and Our and importantly, bring market; drive innovations and new and now and dedicated to turn us diabetes. people

Wayde McMillan

their Thank to results our extraordinary echo another financial to who want to you. we delivered adapted quarter hard strong times. Insulet to that Thanks have work, gratitude members these I expectations. Shacey’s of our exceeded team

enhance we In imperatives the We competitive quarter continue range. we million of strong as XXXX, excellent diabetes. of growth, our our lives our for people differentiation to our guidance range. growth make and invest total of revenue our and performance fueled $XX guidance continues progress to our was XX%, by mission on serve $X the of strategic which This above improving with be growth Omnipod second above delivered global million of XX% was

channel the XX%. results our QX both communicated closer results we pandemic by in the as guidance for year Regarding Actual beginning was levels to QX with utilization an expectations of to and volume included over pharmacy guidance and Stocking estimated utilization. impact XX%. across levels. were In line, $X pandemic end increased distributor channel and for range million we to inventory XX% U.S. million of Pharmacy from revenue the XX% three $X to the inventory Direct. Approximately net grew Omnipod DME channel the and QX, grew channels, increases the our inventory of XX% that the expected closer from new Breaking attrition the in Omnipod U.S. our exceeding slightly by of our lower XX% to XX% of higher increase resulted the starts, XX%. total our impact that estimate approximately slightly our to Attrition XX% regions, to levels. through would including growth lower all volume. U.S. international down revenue with drove favorable also came combined the contributed channel near customer product and

our favorable also Omnipod New starts versus were expectations.

grew to guidance which the XX% a Omnipod our well over International second Omnipod was million to better our of our starts. due Our million DASH increased approximately benefit delivery U.S. volume growth to of primary through starts. growing to XX%, range to to Omnipod growth. build continued new drive the a including $X continued pharmacy inventory revenue channel benefit primarily of In customer XX% DASH on Omnipod our channel, $XX million, compared the DASH, base Omnipod quarter, lesser to XX% of $X expected of the from revenue premium new drivers than and the adoption above as mixed as of be and Drug XX% range. extent, COVID

than forecast QX strong the our momentum of quarter from related QX, from growth second Overall, environment. current robust our growth revenue timing greater overachievement of expected from we due in While revenue building achieved to was we shift the in the to production normal QX increased resulting in XXXX and the XXXX. off partners of

growth of Turning impact from We headwinds basis These U.S. by offset included an delivered basis approximate global favorable and due the as supply revenue in line margin. business our of the points second throughout operations. the were XXX foreign Omnipod continued to no partially manufacturing were DASH The ramp year-over-year line expectations. and we mix headwinds the to with quarter XX unfavorable charge down lines, improvements gross well the model and pay-as-you-go points through the our point with from basis EBITDA well and benefit for as ended quarter change, Operating with as with PDM, XX%, XXX year-over-year from manufacturing pharmacy COVID-related in our expectations XX%. upfront exchange. costs in adjusted channel our chain primarily as expenses

Our the including timing and meeting much trial lower quarter EBITDA the certain expenses, third favorable second due revenue quarter. of expenses from which strong Omnipod and X was adjusted moved into expenses, performance, clinical the of to travel

order should in we during to balance and May. and liquidity the additional strengthen million in from we invest capital it. the commercial provide are the pandemic, a continue including ended Regarding of cash imperatives We in additional quarter growth, XXXX and raise the need to including cash cash and raise our low strategic position and execute expense. interest strong $XXX cash in equity million for The debt liquidity, the earliest cash with investments, ensures expenditures second we cash maturing offering can in and with sheet R&D, $XXX our

We of a have global position under-penetrated market, large a markets. out we to and in continuing grow come this pandemic to differentiated and our in by stronger want

guidance. to Turning

Although of guidance are the business predictable, our investors COVID in drivers not business, areas forecast that impacts the and we growth most our understand to provide last continue will to order quarter help be impacted. highlight

our we full revenue macro model, an durability maintained end the the low of original XXXX with Given the at range. of the estimate company the revenue along of we guidance our impact year had total indicators, information and our of recurring

benefit XX% stronger that guidance a rate revenue XXXX raising expectation revenue result of includes we’re of new quarter. a And second XX%. total to hire to for XX% international XX% and By expectations a up outlook, key incremental our from raising the new Omnipod year range previous half range expectations and to of This second XX%. our revenue line expectations total growth full raising of growth As compounding The revenue the second starts, we’re we raising our increased XX% of Omnipod quarter for drivers year quarter Omnipod Omnipod add of our total in are in starts XX% to our the year XX%. for of of third company XX%. U.S. our to to second a guidance expected product exceeded which full the are to to Omnipod, half improved Omnipod,

be near in compares XX% the the again with guide. at XX% pre-COVID low be beginning new at still that compared guidance assumptions expected to of the XX% we to of the lower estimate than XX% and results now achievement the in end We to Omnipod our global new start consistent starts to to of estimate guided terms global guide new starts approximately with last approximately our improvement quarter. approximately starts, new our international of In starts U.S. an will year lower, XX% our last our the the third quarter, will XX% quarter of original We assumes fourth This anticipate call. QX on This year. high quarter’s the end. now

end. from to Our revised factors starts a guidance gradual in of new Omnipod year improvement QX

headwinds. and attrition in assume uptick continue for related on pressure downward to an potential utilization pandemic to We account

to are trends COVID it and current continues the improving show uncertainties conditions, While to is progression of difficult Of accurately signs create the predict pandemic. beginning to

well positioned remains as well business and through multiple scenarios and strong XXXX long-term. continue this over manage diabetes year, as to global Our growth in the

Lastly, X% growth the business anticipate forecast from from increased for X% we to drug partner. resulting of now delivery, our

estimated year the related basis, guide of approximately in and COVID $XX includes mitigation one-time rest $X On versus Turning lines of full to efforts manufacturing is costs to Also $X margin prior P&L. million the our we of XX%, $XX of million. million our million to gross are U.S. the in due to factored a reaffirming pandemic. ramp safety to which slower the an

invest initiatives operations. and and remain be long-term to plan strategy pipeline, and capital financial plan year, consistent XXXX in expenditures our our last unchanged. And expect innovation Our continue we to supply as to deployment global and we growth chain with with capital commercial for manufacturing

the For a full range. we our XXXX of expectation reaffirming adjusted are XX% percentage the of year as end low at EBITDA, revenue XX% to

to For total are XX% growth line, to XX%. XX% company growth quarter to we XXXX, Omnipod of drug guiding XX%. Omnipod product to of XX% This the third Omnipod delivery X% includes of of U.S. total revenue By to to expect growth international XX%, and XX% XX% of of XX%. revenue we

large which half model a a generate of customer mostly our vast the revenue the the durability As existing us starts global effect the second our in a impacts revenue, quarter has of differentiated we our to since second pandemics of on from revenue degree, year. recurring the on new our large compounding insulates the reminder, impact base. Nevertheless, majority

a and quarter achieve growth of COVID. As in year, the third plan double-digit we full XXXX the result, despite to the still revenue of impact

revenue. in market assuming we in conditions outlook, on XXXX, our long XXXX remain to of track $X stabilized plan our deliver range target For billion

we momentum. and and end closer first range. QX XX% our conclusion, results from to of a margin low gross of XXXX our operating communicated the momentum significant benefited the had mid to we the XX% percentage year as of income that As in the In half teens, start earnings expect on call, revenue to

financial to and platform, strong operational COVID invest the enable while impacts growth, headwinds. us of and product to excellence for model continue business and mitigating related profile differentiated Our

XX% this year. to As a result, growth to we XX% expect deliver revenue

continued very We well and operator the growth a that, call over the are the With for over long-term. have healthy for positioned we’ll Q&A. and turn business robust to

Operator

question Our Instructions] [Operator Wells you. from with Larry Thank is first Fargo. Biegelsen

Your now line is open.

Larry Biegelsen

afternoon, just quarter. guys. Omnipod on nice one X on Shacey, a congrats for and Good on for Thanks and question the margin. taking Wayde you one the for you

just to versus are any about step XX% we timeline the premium iOS thinking feeling on a for Shacey, DASH? about the you X drivers XXXX. how end? that low XX%? pretty Wayde, for on So XX% a guys. update the can from And talk the Omnipod be for about and Should price to integration you It’s the XXXX up gross taking questions big in Thanks margin,

Shacey Petrovic

Thanks, Larry. Great.

So to not timeframe fully say, Android terms with any to only of iOS. follow there, our we iOS, initial guided in launch we on that expect have

So that that work we’ll is clear, underway timeline that out. and is communicate more becomes

haven’t much pay-as-you-go is of And terms premium, price entirely to in The into to the X. Omnipod X get in given I soon. coming First, to a is which market, we we thing, will United committed States with one strategy. a insight also though, are highlight model Omnipod we and want price our

period is about to of X pay our transition users And to worry existing some having fee. all without lock-in a so upgrade of able what DASH to having sort will to that means be or Omnipod

quickly so in and the to model. market what’s are performance evaluated. and deliver performance value that’s other market, able certainly not the obviously, be that’s being deliver be that Now doesn’t that as we a But the to Omnipod because to of important doesn’t hypoglycemia industry these them we make And terms our committed of to pay-as-you-go about the periods, mean want indicators premium, think and that key X warranty customers warrant for innovation us in cetera. because to we pace most positioned innovation out the et increasing wait to

that committed premium. the and So we’ll price to we’re on see

Wayde McMillan

Larry of And margins the on the an important part for for us. story XXXX, Okay. are margins of all, first

of that out at story make impact we across have called when we’ve basis gross recent running points big And the significant for in most them what strongest us. strategies we here have to exchange. XXX business possible. the differentiated in as sure look foreign And part we We a margins see COVID from quarter, the the

most out So items, those two, would XX%. if you recent the one quarter take be

having So impact COVID well gross pretty a our as as margins. significant on is FX

away. bit we investment progress then And made progress U.S. our that when at efficiencies. well significant XXXX, we also in we look as we to in on takes supply So as how in our here operations, up but manufacturing step a operations And in our facility. make a of continue have the a China chain mainly our

XX% And so confidence And we to XXXX. can high we to we in time. over will have high that that range we the get XX% get XX% have into still confidence

here mitigation efforts it to to COVID and the here We’re and at deal related two, just gross a shifted focus that. But with diminished all XXXX. to margins. in And in game of keep bit push delayed know when for a and lot a the I or the track we safety confident our that deal be doing I we’ll And for back is that has XX% guidance know quarter as plan our focus our couple to the not team quarters while next have on teams current they get for environment. issue with

Operator

Thank you.

of comes question next from JPMorgan. Our Robbie Marcus

Your line now is open.

Robbie Marcus

in But on focus points you focus ask actually about lot questions quarter there’s that to term longer Shacey, here. on the made. Thanks. can two And I want I a

I’m something coming of over users could the double number guessing that was first the means coming The like X-ish. pump years.

several that about sure over I’m is during think I there possibly about the users make patient the XXX,XXX just time? the U.S., right can next way thinking if we in opportunity years. XXX,XXX, So that Insulet a should pump how I want and new mean, number grab massive that’s that to the

Shacey Petrovic

Yes.

it We in see X Type X. happening You’re this happen to actually the and seeing see inflection significant beginning technology Robbie. way Type it we pretty in

developments So one demand. of I most course, be driven by in there’s the X. we CGM. think a lot anticipated going adoption that And with of this of It’s to know great Omnipod pipeline of is then, the

that, penetration really But this pediatrics was look estimate CGM And And a market do into we’re even expansion said, just has reasonable because too. pretty rapidly. pediatrics. so see utilization always seeing at we driven more adoption pretty I XX% thought the for of to needed pump expand we X Type we’ve then in think pumps you of

a as an people with pipeline. Omnipod just insulin-dependent the see do living say, TAM realistic X that’s CGM, And diabetes. Xs to tremendous would both right win Type those we I and in see now, So one. we to have for penetrating look we And a us that then bring markets. into of at We Type for opportunity exciting us, X to

specific what will the bring populations. integration factor and to both have form really partners We really those with advantages, about our sensor differentiated obviously, of excited

Robbie Marcus

competitor maybe business first equal next should down And the year. impact There’s adds year? that the worry we made comments to model your something you fewer I numbers launch a new integrated with do about potentially, for you? revenue lot you trying is somewhat just recurring We street and X, know better. that rather to of offering, Thanks. part Because of of think is want this a a want an around you to year. the patients what is model make enthusiasm Does worry even all starts something sure, next doing the XXXX, make and where expectations. patient next Street new the of sure that’s half see Horizon the headwind will on year. Thanks. business be back the Shacey, lower about, if the seeing reality just in talk than I more this of year just and next with

Shacey Petrovic

Robbie. right, That’s

take always worried. to players I not other business such we insulin pump out the there. are a different opportunity have just model obviously because relative We

Wayde, Just you to educate know if on the color to that. other And add have don’t I any want estimates. regarding Street you

Wayde McMillan

guidance we Yes. insight a of to understand model. really it’s No, the to to provide because business people for good first quarter one of all, last question, give elected was our reasons

this year reason business beat here. and lot year. question the Shacey we dealing estimates But are guidance positive business QX remind just quarters the the out we the two a that recurring the your the that, specific people this for of raised next there, headwind be have we for as in – so to our that that into of having half highlighting of more when to here, first second model And with that we’ll drivers said than with in and have on is

so also be taken we’ve up should in as there know, half, And half the the some room guidance. second you second

Operator

Thank you.

Lewis next Morgan question of David comes Our Stanley. from

Your open. now line is

David Lewis

Thanks Good question. taking for afternoon. the

of number for two start a with I’ll Shacey. Just questions me,

U.S.? sluggishness your international through diabetes and multiple this season, a U.S. your it’s regions to or just Shacey, you can of, earning varying across it recovery walk lot of about talked So country think have us during the how ex-U.S., you and related or Is a sort versus for dynamics do the of companies business? this business specific, ex-U.S.

Shacey Petrovic

varied across it Yes, very is U.S. it. seeing than definitely and hit Sure. in markets. modest David is And the on Europe recovery in much we’re the today. you’ve The more we’re that what seeing

others like France, us Some are then important still for And an market challenged. obviously which doing is is very okay.

be by As new and many served are they would prestataire and hospitals patients occupied with the priorities. of open don’t other those

more is tale it’s area that Europe. other across so a the And And challenged of kind multiple endo is visits. of parts

hospital, And been private starts so in larger than telehealth and or European see new Omnipod clinics offices. in rather in their Europe the uptake many slower markets of pump there’s

hospitals And really right now are so world. of in many parts obviously, challenged the

starting of to encouraging in levels. where in normal in back visits that to I they new all things starts. visits still our even back not of So and we’re pre-COVID endo were terms States are to know But not our endo terms think, seeing we’re the United markets – across reopen of pipeline

be but encouraging, Europe, we the in it in forecasting that will are recovery much it’s here – moderate through the year. a the rest of So more from

David Lewis

kind impact. just And then broader helpful. question, Very about Okay. new patient the thinking related start of

So, in the impact from saying the for quarter guidance new improving third XX% you’re still here fourth patients prior, quarter. start

of handle could is a year. of the resurgence I that you’re reflection a I I the but a and of you’re the a say patient have what about So, half flu conditioning way say conditioning, quarter. season of to impact I in back if that to little that pace, ahead would resurgence of guess, think able you of be assume given would question assuming, conservatism the that more ahead here, pace simply in will sort is, sort fourth channel of you’re the telehealth or And the physician

So, just much. help to us improvement so understand maintenance relative the that Thanks XX% in third the quarter?

Wayde McMillan

metric the us. is This Yes. important for most

and versus metrics, utilization historic although attrition Our our similar are up levels. very ticked

we’ve there. U.S. QX, to more range And for would we it the impact overall the the starts here like we’re hope about the is not XX% it impact, Get or global around a slower look the in improve closer end. at room Shacey QX. the ourselves low is of given it internationally, in U.S. here. some impacted And said, would exactly third impacted of – at we see the that basis. – And internationally recovery patients we’re keep and estimated obviously, low start on there. as we’ve going all XX% a certain mean U.S. We the regions if that’s the for just for we be and called So, outside a end new end can high on have us, headwinds XX% within And QX We the we seeing back dynamics we’re that. hope us. to of states that for that is making that to sure resurgence it; range really that’s

be that XX% to mean combined would high that of us the for to regions the be So at have would end range. the

heading? at stakes in good the against playing where performing bottom and If And end in regions. originally, our out. Obviously, is why of a we ourselves it pandemic lot a trying here. guidance about the give think know best estimate we see to we scenarios we so set don’t do to We’re different And understand both well, expectations was QX, them. very range these beat put then we’re to the help did we in everybody the ground, we came that so how of in can

the little game. endos how question, the changed and QX. progresses. a steak we’ve of training, pandemic us virtual around then So, And We’ll favorable here for the bit last the telehealth for more David, has see the part in moved it the

benefit the in get to a training virtual COVID-related and the still of even the ability patients world. think need, I therapy for they

that, as to Shacey said; QX our virtual. most We in capability were have the of trainings do

And so we have that a have capability worse been built now, and that what should help us offset, impact. could

Operator

Thank you.

question of next Jeff Our Baird. Johnson from comes

Your line open. is now

Jeff Johnson

interesting, Thank I of advantages, some made you what and have some competitive adaptability I X you. I’m and was in were a back point that Good potential little listed to head; made I the do I you’ve Shacey, Thanks. the not factor my know, you of thought customization, form of what top Thanks. the through we’d you? you out bit. sure referring comments flesh hear have on there? And then wanted to to exactly you go love Omnipod afternoon. off and to a the maybe follow-up.

Shacey Petrovic

Jeff. Sure, Yes.

patient that, made not in the to effectively or physician enough I So, of systems such talk where dobbs algorithm adjustment other carb them. daily into still terms referring really order total many and example a aggressively to in – way adjust work that are basal is have and your there your on and your in ratio, for more go the about dials for these the the are when to various regarding, working they back the – system to the for adaptability, I’m if or satisfactory systems inputs dose, rate market, in have that or for insulin to the knobs system

dials patient. Our that grow and learn the so a really patient actually to been its adapt lot the do the has perform system away, and knobs can better and of system and taken with and and designed consciously, algorithm simply the we’ve job those for

is both to rely the to really, for with the and clinician patient, make algorithm, for it there the much the user. to and the goal And so that on easier, grow

So, the insulins, are that. with get The and that insulin. new designed may require of, their they to older, examples children system that user to adopts adjust is thing and to there The adjust; require system designed exercise routine, notice they insulin. they and that same more see to is as that learn if potentially a means less

bring. excited about really what we’re what adaptability will that’s So

is about We’re to also to when designed be. that really with moderator things I should at make customizable set user-friendly. flexibility that’s mean, I of compared our ADA how And and simple iPhones. that just about system. points We’ve just demonstrated other incredibly excited system the scores the really it was the the system think talked usability the

Jeff Johnson

closer below mentioned maybe or was I you know to to your in question And just the Understood. that at think to start David’s Yes. helpful. year relative down third Very the that then expectations XX% I maybe Wayde and a here expectations. – just of passing that’s ask

if like starts of at I you numbers, think year-over-year look might back gives they even – numbers and your competitors, clear into population from patients I flat MDI one perspective. XX% can seemed or their your who up been XX% in pretty XQ new have

or XX% year-over-year new to if up in and may gap, the or XQ new you down in down your to if that guys maybe, relative to between in a maybe MDI from expectations, patient bridge adjusted patient be XX% on competitor Thanks. So, again, something, starts I that channel. but help flat be me starts

Wayde McMillan

from get we patients start our still Sure. MDI the Well, to most just new channel. with, of

really start set our starts not to number XXXX, guidance in XX% we’re So, competitors, patients but to and insight still year, of I more record continued math record new our and pipeline. certainly, a we patients had appropriately, pretty quarters new we can’t there. give it’s every had expecting significant coming the We about the quarter-on-quarter for speak new starts and but into can you patient

better We strong. still And mid-XXs there the But got U.S. we’re than had well at evidenced of a by the the growth U.S. the of expectations coming is there. and the in certainly quarter the was still as our quarter. pretty rates good so in as growth And inventory rate XX% globally XX% XX% for benefit

build in XXXX, we is of at growth a last XX%, that although quarters so exceeding were rate I few think XX% still And quarter. the really healthy ex-inventory

it new you still strong expectations yes, off So, for very year, a sense our gives patient but growth. start of we’re the

Operator

you. Thank

Joanne comes Citibank. with Wuensch Our from next question

open. Your now is line

Joanne Wuensch

the taking for quick questions. have you two thank And everybody. evening, ones. I Good

group highlight that the up you commentary anything eye? moderator catch And think. else at post-ADA. caught the really was really your haven’t curious with sort if I we had you and the to want ADA chance I of mentioned to you there’s there,

Shacey Petrovic

were of would adoption is of technology the that this market sensors systems, AID in multiple we’re exciting out It’s in diabetes. pace mean, next for Coming be multiple people generation a ADA, time. of think, presented. just with there increasing and sort really technology I I what just noticeable living

could what To on people to living me, exciting. X we of about, Type And and of And people so obviously, that. diabetes. X we’ll adoption we’re disease, in the the bring that technology it’s really role why Type among both excited with part bullish we so think very when remain living with it’s about that play

the and if at you of listen tremendous it this there thousands think dialed what enthusiasm into just I delivery year’s will looked for were and just the bring I enthusiasm, automated to had to insulin presentations. physicians, thousands ADA, who There’s to think our community.

Joanne Wuensch

order as second supply about, of gate for question in not once right you you’re door? walk that the Omnipod that think prepare you of out the my is, sort launch, out X And can so us it’s through steps the you back

Shacey Petrovic

Sure, sure.

think a great question. that’s I

do an clinical a outside right thinking are position. about through about, We’ve that market of how position we clearance be a lot in inventory been and now. work getting We’ve The for from capacity thinking We’re I and us highlighted it to a in been – steps our think obviously; about be very build securing to remarks. access. strong my next really already

committed the I you go As pay model. are with to first mentioned Larry question, we this at as

everybody is have access. as soon as what Omnipod X, transition that to they to means able so that be And will

anything to be among four-year to new that, anticipate be We’re regulating be tremendous demand and regulated warranty tremendous a or what means demand this a our we existing will to like with fees or there’s And access. going which among not of both period upgrade users. that lot going users by

And channel. pharmacy they rapidly already particularly our are our thinking in about access, teams expand so do how now

business establish pharmacy model, we’re think new the to of the access. new our wholesaler I really because did the both the fortunate, work all we and very – distribution

of And game pandemic. with with we did well already in on well. launch and go going then And trained patients, we’ve so rapidly went the we much the around our pandemic. why that we’ve it the underway be a training we as and should But terms the patients of at Omnipod know this that of with more And DASH. smoothly ahead were that what’s and very than is work of which of more of DASH. onboarding And But is all work much tools lot all actually, very it successfully is virtual experience being of able during to about had great that home. demographics had before experience less happily sorts an can of had

certain demographics. all Now, patient it we for know across

for up, that X. Omnipod to and a success bring so sets rapidly being onto us patients think, And able cost-effectively lot of I

Operator

you. Thank

from with your Antalffy comes now question is next SVB Our open. Danielle Leerink. line

Danielle Antalffy

I so little just bit questions but that back if could, decelerating. through a on look basis, on congrats plus everyone’s given pick harp that. is Hey, right a for just you look what to year much the given a on for the And guys. guess I’m question to now. through about QX afternoon, of – sorry I implied half for as like on growth comp guidance, on, your the gave I adjusted the does guidance strong going it QX. all curious one brain really and taking more Wayde, quarter, this, Thanks good

like given the that right. peak Just we’re fact past it unemployment, feels

should move feels thinking should about ads attrition to there Am like that little bit be start of just color lower. this it feels And point a patient maybe, would new great. it at accelerate I actually like wrong? stabilize So, to

Wayde McMillan

remarks to planning the that and understand, the the and that new detail improving and I Sure. end take her a as unemployment, of QX half, is Shacey right. out, more when though And pandemic. an headwind you’re of the works. some our I at growth patients to well, creates starts the remarks have in hope QX we that provided the patient year. to where it to ways to take this long my we’ve highlighted through improving model And rate when way got business in starts you even out opening really think we on point in last it year, I that QX But speaks go we’re new compared we’re

created comp So, it really highlights ourselves XXXX. the in that very tough for we

the we If we of launched you where pharmacy XXXX, the in and half model. entered we launched channel our were we about, pay-as-you-go think DASH. second

patient of So, record the starts had end XXXX. new quarter-on-quarter through we

can set new of if are up comps all by metric; very look utilization, we attrition. consistent, fairly some comps the tough And starts. price, about and those individually sales, patient all you it’s at So,

the year. And have improving patients like on means, although stacking through so did by COVID we of the no are we here, patient starts headwinds nature up with new starts we the a new last year. record-breaking end

those forecasting quarter. So these last in comps. with put see I ever. that’s how than going that we tough to impact ground challenging our growth rates stakes is We’ll pandemic we like go, the making more

QX. to them, to again ourselves against continue going measure in see do We’re how here we

Danielle Antalffy

sure do their who for sort expect the patients are pandemic I I to I’m had got was was – to for there. you of you just but He’s endo, as a though. go Omnipod. to guess, thanks bolus of Yes. this have new question start recently thinking diagnosed. a back potential that this. He you on at point; to And new how patients, really guys making waiting I work friend about The bolus go see some your hard anecdotally, is on that. wants not to patients Wayde, follow-up going really money of say, and a yes, I

about just guys so bolus a potential at how see point. thinking And some are you curious to

Shacey Petrovic

Thanks, in thinking endo where are that do do predict U.S., significantly. endo; difficult the about. We it’s know Yes. have the is down to But obviously. we’re know we Danielle. visibility. we still It visits something that most

they a happening technologies so that’s via and physicians – likely, to by in and just are telehealth, to And in-person visits. portion less then there’s less new people a are than telehealth likely are transition

dynamic, people this where better getting it because and And concerning, that’s population better are technology it’s need frankly, really probably a it think today. care is as to do there I vulnerable who that relates not COVID. So,

educate educate a we is the there able transition to counting be to economy be so we get I it will clinicians it. at can it, of And able or started care there’s, very to very device that certainly, the not the a to continue bolus home. to needs do may who well getting about we’ll everything that easy prescription community, everybody to And I to and trial this and on reopen. But people. be that start it’s get are as hope get soon to

Operator

you. Thank

next Margaret from William with comes Our question Kaczor Blair.

now Your line is open.

Margaret Kaczor

nutshell, guess I time you’ve and us a of of cost? hundreds the thanks coming wanted on is first the of cut questions differs a quarter. on now. kind and in a margin, that future you down can training. as to how virtual everyone. follow for taking Hey, can in-person patients the to And speed on. this outline as the of the for congrats basis of example, benefits alluded the There’s by the I lot or maybe, versus up benefits well for in time you points third?

Shacey Petrovic

we’re pieces absolutely it’s virtual easier as feedback their the well can from impact will from start with don’t life. both have cases sort So, part maybe margin. of hosting the schedule yet that everybody’s clinicians, comment virtually trainings we training. I new much I customers feedback of differential fantastic I’ll attended patients then insight that the that how on regarding been first have the as some much in just Wayde just directly of with and say or into know in cost who one has And the although to is

schedule scheduled And terms so an people time to field can and able and territories. easier have certainly, them support we getting multiple better in areas our multiple of team see or we also being automatically leverage

patients we’re that view as think thing we things And I and being in a of as so just temporary viable, not that because a very scale our I support bode clear to said Omnipod much their those trained way customers, we the during people clinicians very and can doing and as all training but X comfort this, it’s that own love exciting COVID. delight homes. of well

Wayde McMillan

Yes.

I days. think I in just thing could it’s keep there early said mind add the is, Shacey only really what

to own of the more homes all and trained as I getting benefits. in where think pandemic with out their could both them we be I linings customers there’s COVID the We – have enjoy it well think patients physicians. the reps situation, person. distance in our clinical maybe, here. don’t one finding us patients and more it are silver And is some said. at efficient within some in home that learning of we’re forced have we’re a comfort as into want there that that trainings, and as all to we’re on support virtual of Shacey bring to driving

There of know how So, their being question certainly is person. real time. lot percentage We be to there a of those efficiencies in see The are a clinicians over that are become to in virtual benefits gained. person. large training to patients seeing does benefits

days, lot just to time. a now in I keep think think we’ll certainly did at that a We more a be mixed of start QX. mind I over lot. we know than it’s early Margaret, it’s So, going the bag we’re learning

Margaret Kaczor

of of next Helpful. on Okay, commentary then the to wanted some follow And I terms great. up generation products. just in

around you maybe type you some advancements. but you find other software, two. obviously, about health corner, you’re product, that to next GX, the generation talk at treasure starting look guys, and You guys referenced as the digital already

side, done you’ve showed patient are one, do primary payers. how on is succeeded why limiting a access issues gatekeepers I of touch bit but other work adoption, little the and address So, of pumps haven’t seamlessness and the of and some engineering the what the kind assume you of

Shacey Petrovic

question. learned because X seen experience population has actually Sure. a and the in In X that impactful a platform is. of of that how a result population. as of patient I mean, lot, using we’ve is insight the of in great DASH Margaret, it’s be Omnipod just I access generations think good uptake we’ve and how simplicity a us pharmacy could DASH. I powerful understanding and five that into omnipod future given think user segment how this

that but and we and based technology work more just don’t start experience have you’ll say insulin a too CGM, with more I based with dependent So, to evaluate are from us think the that then, I to and a the type much to on see X more even competitive want we’re we’ll people that there reveal fact market. living learn clinical on great I population. standpoint, DASH technology confident our adopting And to will that that our bring in

Operator

you. Thank

Our James. next Jayson Raymond question comes from Bedford of

Your now open. line is

Jayson Bedford

Hi, good afternoon.

quick few clarification questions. a Just

goal. you On original between quantify the and international? level U.S. the of XQ did XX% Did you new patient ads, your

Wayde McMillan

the of little Jayson, color. we two to have more for us the higher can was combination the Hi, and a quarter. better XX% The U.S. not, but outside we than XX%. U.S. XX% provide was the the than the got The

Jayson Bedford

million be thought stocking XQ? it I want I was Okay. estimated was the to there? just in $X million, think, but impact I of What to strong $X

Wayde McMillan

Sure. to It was QX. very similar actually

and the $X a so in $X global of to So impact. $X we it $X million million U.S., $X million to outside U.S., the for impact was had an million, million

Operator

Thank you.

Our next of with comes question from Bank Travis America. Steed

is Your now line open.

Travis Steed

expectations questions. going to Hi, that June for of interest if what ask mine data. July, the to gating good the Wayde, to here, in later you’re through the both to assuming Shacey QX, finishing submitting earlier the in get were guarding first kind questions. assuming or up that Thanks of compares between factors the worsen here in we’re afternoon. launch curious trial, some just how that to and on seeing the half? that Thanks you’re just half the of walked versus the below roadmap time. data you’re When I’ll for the taking horizon, stable? some XX% in of see and XX% then upfront of for the And second taking

Shacey Petrovic

Sure.

Wayde McMillan

can Yes. I Travis, Hey, start.

XX% QX. better was in from XX% in than to XX% QX, the expectations, patients to regards that it start saw new reduction in is QX, So we

everything XX% is And of clarify improvement July. that just into below a better will be to as of that. definition, coming result by gradual QX seeing So out

reps turning in countries just new Shacey variability, some up U.S., referenced, as Shacey almost doing the a back then some locked turning stops. Clinic-by-clinic, still tough down some we on, So nil it as I cases upfront, as meeting every physicians is There mentioned and is our that And a some said, and and across the state, countries getting and U.S. in they’re are outside different by see because really region, not cases better. it’s and opening off. with And of customers lot on and patients. bringing call are

XX% out to So of of where or we and very are third improvements on bag XX% coming more we’re starting generally, to to much that’s there, QX, a QX. a half a saw that mixed half we a see but out to versus guiding a just

Shacey Petrovic

That’s great. And Thanks. then your X Omnipod five. question regarding

release confidence first in that data, been invited on general my will completion be the trial study we to don’t QX. at XXXX. by So submission, in the of mentioned will – of we’ve with we all our participants of then or our of data of completed don’t just X Omnipod us And ATTD. the but be then limited as as estimates gives half completed give patients in remarks, – terms in And great at share participants timing in practice, market all our the I

as will place definitely that in February, that, we is So likely be do and expect a takes to to conference. virtual

Operator

Thank you.

Our Piper next question from with comes Sandler. O’Brien Matt

Your line is now open.

Jason Bednar

of on this that place wonder points to with of Really good into some dynamic thanks access and how if into payers do approved? newer Hi, launch heading just into here. of a Shacey, you I consider plays squeezing XXXX? on adjusted get should is couple Really one in questions in plan taking system you far. we and focused Jason that talk mean, wondering to to have the heading all X? Omnipod there’s any for the on This just the for that here, work Matt, questions Is you’d paradynamic point once contracting just afternoon. us through so expect I a

Shacey Petrovic

Yes.

good what is existing build pricing contracts had opposed all our and go go this had we is, of spot and where we think as relationships I then with because in contracts, a amendment terms So with the to payers. to we’re DASH, in to what to establish an accomplish

we ahead the with that front. But we use a plan payers. to on reimbursement our establish So are be of to data do way able to game the

very available X. establishing imagine patients our the so our teams of participants XXXX, trial beginning end hopefully would access after, I Omnipod QX. or that shortly And of working are data XXXX, And for hard complete on that will be our in the

Jason Bednar

mean, that that is amendment, follow-up simple it – Or simple just then would that if within if a premium? is be just same access? is seeking actually as an an one And I amendment, it price or you’re be Okay. that to a amendment would the quick as amendment just then. provide

Shacey Petrovic

a establish that’s delivers Omnipod really internally debate premium. of No, performance to and product hitting outcomes remarkable that going that We X where is, the we’re important there’s how know Jayson, just access. can on on point is right be It’s that going we off currently. users. you’re a on this the demands pretty against a and is weighing quickly going there analysis lot What trade for of the now a

with minimal will where that’s a will plan if now, or or yet it quickly, happen and be And we landed we it. a a premium much have access the shared. take have sure attach teams very the shared slower quickly premium, decide we to if But we’ve but premium. to that’s don’t And premium much not more so we right have with a ramp and a underway even not work the completely, to I’m we

the that’s So rub.

Operator

Matt question you. This have comes last one we from question. And for Thank time of Taylor UBS.

is line open. now Your

Matt Taylor

sense during forecast do drugs. you’re a going of on delivery and that at-home it these focused think Thanks more you But nobody since trajectory was I could lot to the full higher that I to I it, few think you a for COVID comment whether have lasting it taking the had ask you mean, that on business this makes the trend? and that’s I focused want or drug have to wanted think it? about Can on don’t delivery, past question. you change Since you quarters. you of forecast, be know

Shacey Petrovic

it’s Thanks, that Matt for the question, I pandemic think is really – I durable. durable extent to the the

inflection it to that, see don’t of the area changes probably really difficult pod power the And now trajectory I that very not great it’s delivery. dramatically. right point that than at changing to We it’s so Omnipod that the massive that’s an it’s market X, we’re in in see are But maintain where drug see diabetes. significantly, cusp we I So know that the adoption technology this and any we’re the on attractive of is and more growing launching opportunities is and before see the just us CGM focused.

Matt Taylor

lot. great. Okay, a Thanks

Shacey Petrovic

Thanks, Matt.

Operator

you. would to session. And Thank turn conclude conference now Petrovic. does this Shacey today’s question-and-answer to the I like back

Shacey Petrovic

our and effects quickly and of and challenges continuing Insulet on team operational adapt behalf the financial to of stakeholders. our demonstrate strong to shareholders the execute Despite you. Thank to our our an customers, continues pandemic performance, ability Great. delivered and

want to year. all and mission. throughout So support work dedication. and to to today of your on updates we advance one ensure us providing rallied our we how of I’m to employees, another joining thank look our all proud the continue to we’ve together hard to forward I remainder of for and Thank incredibly relentless progress you the you for our

Operator

conference. and concludes day. you Ladies participation, have gentlemen, Thank and your a this for wonderful today’s

You may disconnect. all

Insulet (PODD) 7 Aug 202020 Q2 Earnings call transcript