Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
Don't know the stock symbol? Use the symbol lookup tool.
Alphabetize the sort order of my symbols
Investing just got easier…
Sign up now to become a NASDAQ.com member and begin receiving instant notifications when key events occur that affect the stocks you follow.Access Now X
Insulet Corporation (PODD)
Q4 2012 Earnings Conference Call
February 27, 2013, 17:00 PM ET
Brian K. Roberts - CFO
Duane DeSisto - President and CEO
Kimberly Gailun - JPMorgan
Danielle Antalfy - Leerink Swann
William Plovanic - Canaccord
Ben Andrew - William Blair & Company
Mimi Pham - ABR Healthco
Thomas Gunderson - Piper Jaffray
Jayson Bedford - Raymond James
Ben Haynor - Feltl & Company
Robert Goldman - CL King & Associates
Suraj Kalia - Northland Capital Markets
Debbie Wang – Morningstar
Previous Statements by PODD
» Insulet Corporation Q2 2009 Earnings Call Transcript
» Insulet Corporation Q3 2008 Earnings Call Transcript
» Insulet Corporation, Q2 2008 Earnings Call Transcript
» Insulet Corporation Q1 2008 Earnings Call Transcript
Thank you. I would now like to turn the conference over to Brian Roberts. Please go ahead, sir.
Brian K. Roberts
Thank you. Good afternoon, everyone. Thank you for joining us for our fourth quarter and year-end 2012 conference call. I'm Brian Roberts, Chief Financial Officer of Insulet. Joining me on the call today is Duane DeSisto, our Chief Executive Officer.
Before we get started, I'd like to remind everyone that our discussion today may include forward-looking statements as defined under the securities laws. We intend these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those Safe Harbor provisions.
These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. There are risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Information concerning the company's potential risks and uncertainties is highlighted in the company's press release issued earlier today and in the Risk Factors section of the company's SEC filings, including the company's Annual Report on Form 10-K for the year ended December 31, 2011 and the company's quarterly reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2012. These risk factors apply to our oral and written comments.
We assume no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. I'd also like to remind you that the guidance we're offering today represents the point in time estimate of our future performance. You'll find a link to the webcast of this call, as well as to today's press release at myomnipod.com in the Investor section.
Now, I'll turn the call over to Duane.
Thanks, Brian. Good afternoon, everyone. 2012 was an extremely successful year across all fronts for Insulet with strong revenue growth and expanded gross margins driving us to operating cash profitability in the fourth quarter. The year culminated with our most exciting accomplishment, 510(k) clearance for the new OmniPod System.
We have pioneered a new market evidence by the 45,000 plus people who use the OmniPod to better control their diabetes. People continue to choose OmniPod in greater numbers for its ease-of-use, discretion and freedom from multiple daily injections or the freedom from nearly three feet of tubing required with a conventional insulin pump.
Revenue grew nearly 40% in 2012 to $211.4 million. Our core OmniPod business continued to perform exceptionally well with the third consecutive quarter of nearly 30% year-over-year revenue growth. This growth has propelled us to a double-digit share of the insulin pump market here in the U.S.
With over 70% of our new customers having never before used an insulin pump, we are expanding the market of those taking advantage of continuous insulin infusion therapy. However, with just 3% share of the overall type 1 market in the U.S., it is clear that we have an enormous opportunity in front of us as we continue to increase our sales reach.
To improve that reach, in 2012, we invested in sales and marketing in the U.S. We added approximately 20 new members to the commercial team in the first half of the year, including a new inside sales capability which launched in May. Almost immediately, we saw a return of these investments as growth accelerated in the second quarter and was sustained throughout the back half of the year.
I'm extremely proud of the efforts of our sales team. They were able to effectively communicate to both healthcare professionals and customers. There was no reason to wait until the new OmniPod was available to start therapy. While we know that some customers decided to wait, the team established new records for both referrals and initial shipments in the fourth quarter, and we entered 2013 with the referral backlog of potential new customers.
After an extensive review process with the Food and Drug Administration, we were pleased to receive a 510(k) clearance of our new OmniPod in December. The new OmniPod maintains all the same features and benefits of the original OmniPod, but does so in a package that's over a third smaller and a quarter lighter. We're confident that the new OmniPod will significantly address any size concerns of potential customers.
Since approval, we've been aggressively moving forward with the initial phase of our product launch to ensure a smooth introduction in the United States. At our national sales meeting in January, we focus primarily on training our commercial team. Our goal is to ensure a clear and consistent message to make sure that all healthcare providers and customers, both new and existing, are as excited as we are as we introduce the new product.
The field team has spent the last 45 days educating healthcare providers to make sure they've had a chance to see, touch and try the new product. Our customer support teams are prepared for the launch. They've been trained and have the resources to make the transition as seamless as possible to our customers. The result of these efforts is that we are now shipping the new OmniPod to new customers here in the United States.
For our existing customers, we will begin the transition from the original product to the new OmniPod in the next few weeks. To make this conversion as seamless as possible, we have taken several steps to make the change straightforward and easy. For example, we've created a 'What's New' information card that will be included in reorders, and we developed proprietary online training for customers to better understand the improvements in the new OmniPod.