Inspire Medical Systems, Inc. (NYSE:INSP) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 05:00 pm ET
Thank you. At this time, we'll be conducting a question-and-answer session. [Operator Instructions] The first question is from Ahmed [Phonetic], Goldman Sachs. Please go ahead, sir.
Thanks. And hey. Good afternoon. Let's actually start with the guidance and see if we can get you to comment a little bit about how you're seeing the sequential cadence, and whether -- if we kind of take a linear approach to this, it looks like we would get something like maybe flattish growth in the third quarter and then up to 25% plus range in the fourth quarter. If you agree with that, is that the right way to think about the guidance? And then it'd be really helpful if you talk to your confidence in that skew in the fourth quarter in particular, and what you're seeing in either backlog or new patient generation as you talk to generally that gives you the confidence that this is the right range.
Thank you very much. As you soften the numbers by monthly, the number of centers that are becoming active, jumping up from 25% to 50%, to up to 60% in July, we continue to see that wrapping. And it is a combination of working through the backlog of existing patients that had to have their cases postponed. But as we mentioned, we really worked hard to make sure we built practices in the pipeline. So, we didn't have what we're calling an air gap or a lag once we started to ramp those procedures. So, I think the way you're describing guidance is directionally correct. We want to continue to keep getting closer to normal in Q3 and really be able to help a lot of people when we get into the fourth quarter. And so, I think that we have good confidence in the guidance and directionally in the way that you're describing that as well. It's going to be a process to work through Q3 into Q4.
I guess -- and as my follow-up, maybe focus on the South, just as kind of a learning experience for you as we've seen infections rise in many of these southern states where you're active, and what you're learning from that. It's obviously very different than what we saw in March, April. But are you confident in what you're seeing and the ability of these facilities to continue procedures? Or just would love to get color on that specific region, where we're seeing infections at high level today.
Absolutely. Well, I have the honor of spending time with each of our regional managers and area vice presidents at the end of every quarter to kind of get a good feeling for where they are with their region and what confidence they have. And specifically, we've met with Texas, and Arizona, and Florida. And so, Florida is one of the areas that is postponing cases, particularly in Miami, and starting up the Eastern Coast. But we're continuing implants in Orlando and Jacksonville. But we're monitoring