Inspire Medical Systems, Inc. (NYSE:INSP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 05:00 pm ET


Inspire Medical Systems, Inc. (NYSE:INSP) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Inspire Medical Systems Incorporated Second Quarter 2020 Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host, Mr. Paul Arndt, Managing Director of LifeSci Advisors. Please go ahead, sir.

Paul Arndt

Thank you, operator, and thank you all for participating in today's call. Joining me today are Tim Herbert, President and Chief Executive Officer; and Rick Buchholz, Chief Financial Officer. Earlier today Inspire released financial results for the three and six months ended June 30, 2020. A copy of the press release is available on the company's website.

I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the Federal Securities laws. All forward-looking statements including without limitation, operations, financial results and financial condition, investments in our business, continued effects of the COVID-19 pandemic, full year 2020 financial and operational outlook, and improvements in market access are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements. See our filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q filed with the SEC today for a description of these risks and uncertainties. Inspire disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward-looking statements whether because of new information, future events or otherwise. This conference call contains time-sensitive information, and speaks only as of the live broadcast today, Tuesday, August 4, 2020.

And with that, I'll now turn the call over to Tim Herbert. Tim?

Tim Herbert

Thank you, Paul. And thanks, everyone, for joining the call today for our second quarter of 2020 business update. I'd like to begin by emphasizing how very proud I am of the Inspire team, and how they stuck together through all of the challenges experienced during the second quarter, resulting in a strong close. More importantly, we are now in a very strong position to continue the ramp in the second half of the year.

As expected, the impact of the COVID-19 global health pandemic was felt throughout the second quarter, with the postponement of a significant number of implant procedures in both, the U.S. and in Europe. Even with these delayed cases for the second quarter, our worldwide revenue was $12.2 million, which was a decrease of 32% as compared to the second quarter of 2019. We realized that COVID will be with us for some time but our recent experiences have shown that health care providers have adapted and identified safe methods to continue to treat patients. In fact, with the recent surge in COVID cases, we have had only a few centers suspend Inspire procedures. As such, implant activity has significantly increased over the last couple of months.

To put this in perspective, at the end of April, only 2% of our centers were conducting implant procedures. At