Inspire Medical Systems, Inc. (NYSE:INSP) Q1 2023 Earnings Call Transcript

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Matthew Mishan: Afternoon and congrats on the great quarter. Can you talk a little bit about utilization trends into the next couple of quarters from coming off of one, two? I think as I’m like building out my model, I’m finding it difficult to kind of stay within your guidance range without keeping the utilization trends fairly modest into the next several quarters.

Tim Herbert: Absolutely I think that we, as we showed through last year, we had consistent step up from Q1 of 1.3 up to utilization at 2.0 in the fourth quarter. We always have seasonality primarily in January, and so you see a little bit of a pullback in the first quarter to, I think it’s about 1.7. And so pretty consistent with past years what we see going into the first quarter and from here, our job is to stay focused and continue to grow the utilization going forward. We do believe that the majority of our growth in procedures and revenue will come from increased utilization, again, complimented by opening additional centers, but you’re going to see a plan just to continue to keep growing utilization through the year. Some we haven’t mentioned that we talked about previously is we have changed the compensation structure with the territory managers to really focus on higher utilization at existing centers and that modification’s been well received by the team so far and we’ll continue to, to monitor that as we keep going forward.

Matthew Mishan: Excellent. And then just one clarification for me. I’m pretty sure I know the answer to that. The number of new centers you’re, you’re adding the 68 didn’t pull from the 52 to 56 per quarter. Is that you’re still expecting to do in incremental 52 to 56 and 2Q, 3Q and 4Q.

Tim Herbert: Well, we always put our guide at 52 to 56 is what we said, and it takes time to open centers. But we do know centers will go opening a new center can take anywhere from three to six months, depending upon if they have to go through the value add commit committee or if they have to go with contracts and pricing agreements. So we have line of sight to the number of centers and we will open centers when they’re ready and what that means is that means everybody is trained, they’ve identified patients and they’re ready to do their first case and so that’s why we’re able to kind of control that cadence a little bit, but we never know from a quarter to quarter basis where the end point is going to be. We tend to be a little bit above the guide as you see in the past, but that’s why we’re just kind of holding the guide steady.

Operator: And I show our next question comes from the line of Anthony Petrone from Mizuho Security. Please go ahead.

Anthony Petrone: Thanks and congratulations on strong 1Q here. I have a couple questions just on procedure implant time and maybe Tim, can you remind us where total implant time was with the three incision procedure and where it stands with two incisions? And then the follow up to that would be when we think about getting rid of the pressure sensing lead with Gen 5, where do you think procedure time can go with that platform? Yeah, thanks. And I’ll come back to a follow up.

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