Insulet Corporation (NASDAQ:PODD) Q1 2017 Earnings Conference Call - Preliminary Transcript

May 08, 2017 • 04:30 pm ET

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Insulet Corporation (NASDAQ:PODD) Q1 2017 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Insulet Corporation First Quarter 2017 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 and Corporate Communications.

Executive
Deborah R. Gordon

Thank you, Andrew. Good afternoon and thank you for joining us for our first quarter 2017 earnings call. Joining me today are Patrick Sullivan, Chairman and Chief Executive Officer; Shacey Petrovic, President and Chief Operating Officer; and Michael Levitz, Senior Vice President and Chief Financial Officer. The replay of this call will be archived on our website. Our press release discussing our first quarter 2017 results and second quarter and full year 2017 guidance is also available in the IR section of our website.

Before we begin, I would like to inform you that certain statements made by Insulet during the course of this call may be forward-looking, and involves known and unknown risks and uncertainties that may cause actual results to be materially different from any future results implied by such statements. Such factors include those referenced in our Safe Harbor statement, in our first quarter earnings release and in the company's filings with the SEC.

With that, I'll turn the call over to Pat.

Executive
Patrick J. Sullivan

Thank you, Deb. Good afternoon, and thank you for joining us on the call today. I'll begin with a brief review of our first quarter performance and share recent business highlights and accomplishments. Mike will then discuss our first quarter financial results in more detail and provide our second quarter and updated full-year 2017 guidance. Shacey will then give an update on our exciting commercial and R&D progress and then we'll open the call up for questions.

I'm once again thrilled with Insulet's performance. We exited 2016 with strong momentum exceeding expectations in each quarter and we are continuing this positive trend in 2017. We're executing on all of our commercial and operational strategies and making significant progress on all of our initiatives. We finished Q1 2017 with revenue of $102 million representing year-over-year growth of 25% and $4 million above the midpoint of our guidance range. Our gross margin for Q1 improved to over 58% from just one year ago and we are on track to achieve our long-term target of 65%

Every area of our business delivered outstanding performance. U.S. Omnipod revenue was $60 million, a strong growth of 18% over the prior year. Our International Omnipod revenue was $25 million, a significant growth of over 60% versus the prior year. We achieved strong growth in our installed base in both the U.S. and internationally positioning us for our continued near- and long-term growth. Our Drug Delivery revenue was $17 million, in line with our expectations and representing growth of 12% over the prior year. This performance was primarily due to