Inspire Medical Systems, Inc. (NYSE:INSP) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 05:00 pm ET
million in the second quarter of 2019, this increase primarily due to the expansion of the U.S. and European sales organizations, as well as increased direct to patient marketing programs, continued product development efforts, and general corporate costs. The operating expenses of $33 million in the second quarter were sequentially down by $1.5 million from $34.5 million in the first quarter of 2020.
In light of the ongoing uncertainties, we continue to take a thoughtful approach to our spending, but expect operating expenses to increase as we return to growth and remain focused on investing in our commercial and development initiatives. Our net loss for the second quarter was $23.1 million, compared to $7.7 million in the second quarter of 2019. The diluted net loss per share for the second quarter of 2020 was $0.88 per share, compared to $0.32 per share in the same period last year. The decrease in revenue in the second quarter due to the pandemic negatively impacted the net loss in the second quarter, despite our improved gross margin.
Importantly, we continue to operate from a position of financial strength. We completed a successful equity financing in April, which generated $124.7 million of net proceeds. So, we have a strong balance sheet, which enables us to execute our growth strategy, which is primarily focused on the U.S. market and with the objective of first, increasing patient flow at existing centers, and second, training and opening new implanting centers. As of June 30, 2020, our cash and investments totaled $242.6 million. The weighted average number of shares outstanding for the second quarter was $26.3 million. We anticipate that the weighted average number of shares for the third quarter will be approximately $26.8 million.
As Tim mentioned, while we are not yet operating a normal pre-COVID healthcare environment, implant activity has increased over the last several weeks. With that said, we are providing new full-year 2020 revenue guidance of between $88 million and $92 million, which represents 7% to 12% growth from full-year 2019. We continue to expect full-year 2020 gross margin guidance between 82% and 84%. Furthermore, we reiterate our guidance to open 20 to 24 new centers per quarter and add six to seven new territories per quarter. Our guidance is based on our current outlook. However, the operating environment for surgical procedures continues to evolve as the pandemic persists, and this could have an impact on our ability to achieve these projections.
In summary, despite the impact of COVID on our business, we are confident that we are well positioned for sustained success. With our strong balance sheet, we are aggressively executing our growth strategy and advancing our business.
With that, our prepared remarks are concluded. Jerry, could you please open up the call for questions?