Insulet Corporation (PODD): history, ownership, mission, how it works & makes money

A Brief History of Insulet Corporation

Company Overview

Insulet Corporation, founded in 2000 and headquartered in Acton, Massachusetts, is a medical device company specializing in the development and manufacturing of insulin delivery systems for people with diabetes. The company's flagship product, the Omnipod Insulin Management System, is a tubeless, wearable insulin pump that allows for continuous insulin delivery without the need for multiple daily injections.

Financial Performance in 2024

As of September 30, 2024, Insulet Corporation reported a significant increase in total revenue. The total revenue for the three months ended September 30, 2024, was $543.9 million, representing a 25.7% increase compared to $432.7 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue increased to $1,474.1 million, up 24.2% from $1,187.3 million in 2023.

Revenue Breakdown

Revenue from the sale of Omnipod products in the U.S. for the three months ended September 30, 2024, was $395.6 million, an increase of 23.4% from $320.6 million in the same quarter of 2023. For the nine-month period, U.S. Omnipod revenue reached $1,065.6 million, up 24.4% from $856.4 million in 2023. International revenue also saw growth, increasing to $381.4 million for the nine months ended September 30, 2024, compared to $303.7 million in 2023, marking a 25.6% increase.

Cost and Expenses

For the nine months ended September 30, 2024, Insulet's cost of revenue increased by 18.2% to $459.3 million, up from $388.6 million in 2023. The gross margin for this period was reported at 68.8%, an improvement from 67.3% in 2023. Selling, general, and administrative expenses rose to $656.2 million, a 25.7% increase compared to $522.1 million in the prior year, largely due to headcount growth to support commercial expansion.

Net Income and Earnings Per Share

Net income for the nine months ended September 30, 2024, was $317.6 million, a substantial increase from $103.0 million in 2023. The earnings per share (EPS) for this period was $4.53, compared to $1.48 in the previous year.

Research and Development

Research and development (R&D) expenses for the nine months ended September 30, 2024, totaled $159.0 million, slightly down from $163.0 million in 2023. This represented 10.8% of total revenue, down from 13.7% the previous year, reflecting increased operational efficiencies post-launch of Omnipod 5.

Market Position

Insulet Corporation has established itself as a leader in the diabetes management market, driven by the innovation of its Omnipod platform. The company continues to focus on expanding its product offerings and enhancing market penetration, particularly in international markets.

Conclusion

As of 2024, Insulet Corporation is well-positioned for continued growth, supported by strong revenue performance, effective cost management, and a commitment to research and development.

A Who Owns Insulet Corporation (PODD)

Major Shareholders

As of 2024, Insulet Corporation (PODD) has a diverse ownership structure, primarily consisting of institutional investors and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:

Insider Ownership

The insider ownership of Insulet Corporation is approximately 3.9%, which includes shares held by executives and board members. Key insiders include:

• Shacey Petrovic, CEO - 1,200,000 shares
• Danielle Dyer, CFO - 500,000 shares
• Charles Alpuche, COO - 400,000 shares

Institutional Ownership Trends

Institutional ownership has shown an upward trend, reflecting confidence in Insulet's growth potential. As of September 30, 2024, institutional investors collectively own about 57% of the company, up from 54% in the previous year. The following table outlines the changes in institutional ownership:

Stock Performance

Insulet Corporation's stock performance has been robust, with a year-to-date increase of approximately 30% as of October 2024. The following table summarizes the stock performance metrics:

Conclusion on Ownership Structure

Insulet Corporation's ownership structure features a mix of institutional and insider holdings, with significant confidence reflected in its stock performance. The diversity in ownership indicates a broad base of support for the company's strategic initiatives and growth trajectory.

Insulet Corporation (PODD) Mission Statement

Our mission is to improve the lives of people with diabetes. We are primarily engaged in the development, manufacture, and sale of our proprietary Omnipod platform, a continuous insulin delivery system for people with insulin-dependent diabetes.

The Omnipod platform includes the most recent generation Omnipod 5 and its predecessors Omnipod DASH and Classic Omnipod, all of which eliminate the need for multiple daily injections using syringes or insulin pens or the use of pump and tubing.

Omnipod 5, which builds on our Omnipod DASH mobile platform, is a tubeless automated insulin delivery system that integrates with continuous glucose monitors (CGM) to manage blood sugar and is fully controlled by a compatible personal smartphone or Omnipod 5 Controller. The CGMs are sold separately by third parties.

Our financial objective is to sustain profitable growth. To achieve this, we launched Omnipod 5 in the United States in 2022, and in the United Kingdom and Germany in June and August 2023, respectively. Most recently, in June 2024, we launched our full market releases of Omnipod 5 in the Netherlands and France.

Financial Performance Overview

For the three months ended September 30, 2024, total revenue increased by $111.2 million, or 25.7%, to $543.9 million compared with $432.7 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue increased by $286.8 million, or 24.2%, to $1,474.1 million compared with $1,187.3 million for the same period in 2023.

Revenue Breakdown

Revenue from the sale of Omnipod products in the U.S. increased by $75.0 million, or 23.4%, to $395.6 million for the three months ended September 30, 2024, compared with $320.6 million for the same period in 2023. For the nine months ended September 30, 2024, U.S. revenue from Omnipod products increased by $209.2 million, or 24.4%, to $1,065.6 million compared with $856.4 million for the same period in 2023.

Cost and Expenses

Cost of revenue for the nine months ended September 30, 2024, increased by $70.7 million, or 18.2%, to $459.3 million compared with $388.6 million for the same period in 2023. The gross margin was 68.8% for the nine months ended September 30, 2024, compared with 67.3% for the same period in 2023.

Net Income and Earnings Per Share

Net income for the three months ended September 30, 2024, was $77.5 million, compared to $51.9 million for the same period in 2023. The diluted earnings per share for the three months ended September 30, 2024, was $1.08, compared to $0.74 for the same period in 2023.

Research and Development Focus

Research and development expenses for the nine months ended September 30, 2024, were $159.0 million, which was relatively level with the prior year. Research and development expenses as a percentage of revenue declined to 10.8% for the nine months ended September 30, 2024, compared with 13.7% for the same period in 2023.

Market Expansion Initiatives

In June 2024, Insulet Corporation submitted its 510(k) for an expanded indication of Omnipod 5 for type 2 diabetes to the U.S. FDA and received clearance in August 2024. The company continues to focus on expanding its international presence and enhancing its product offerings.

How Insulet Corporation (PODD) Works

Business Overview

Insulet Corporation is primarily engaged in the development, manufacture, and sale of the Omnipod platform, a continuous insulin delivery system for people with insulin-dependent diabetes. The Omnipod platform includes the Omnipod 5, Omnipod DASH, and Classic Omnipod, which eliminate the need for multiple daily injections.

Financial Performance

For the three months ended September 30, 2024, Insulet reported total revenue of $543.9 million, an increase of $111.2 million or 25.7% compared to $432.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $1,474.1 million, up by $286.8 million or 24.2% from $1,187.3 million in the prior year.

U.S. Revenue Breakdown

Revenue from the sale of Omnipod products in the U.S. was $395.6 million for Q3 2024, a 23.4% increase from $320.6 million in Q3 2023. For the nine months ended September 30, 2024, U.S. revenue stood at $1,065.6 million, reflecting a 24.4% increase from $856.4 million in the same period of 2023.

International Revenue

International revenue for Omnipod products increased to $138.0 million in Q3 2024, a rise of 36.1% from $101.4 million in Q3 2023. For the nine months ended September 30, 2024, international revenue was $381.4 million, up 25.6% from $303.7 million in the previous year.

Costs and Expenses

For the three months ended September 30, 2024, Insulet's cost of revenue was $166.8 million, representing 30.7% of total revenue. This is an increase from $139.4 million or 32.2% of revenue in Q3 2023. For the nine months, the cost of revenue totaled $459.3 million (31.2% of revenue), compared to $388.6 million (32.7% of revenue) in the comparable period of 2023.

Research and Development Expenses

Research and development expenses for Q3 2024 were $54.9 million, accounting for 10.1% of revenue, compared to $57.8 million or 13.4% of revenue in Q3 2023. For the nine months ended September 30, 2024, these expenses totaled $159.0 million (10.8% of revenue), a slight decrease from $163.0 million (13.7% of revenue) in the prior year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for Q3 2024 increased to $234.1 million, or 43.0% of revenue, from $180.7 million (41.8% of revenue) in Q3 2023. For the nine-month period, these expenses were $656.2 million (44.5% of revenue), compared to $522.1 million (44.0% of revenue) in the previous year.

Net Income and Earnings Per Share

Net income for Q3 2024 was $77.5 million, an increase from $51.9 million in Q3 2023. The earnings per share were $1.08 (diluted) for Q3 2024 versus $0.74 for Q3 2023. For the nine months, net income was $317.6 million, compared to $103.0 million in the previous year, with earnings per share of $4.40 (diluted) compared to $1.47.

Balance Sheet Highlights

As of September 30, 2024, Insulet's total assets were $3,025.4 million, with total liabilities of $1,907.4 million. Total stockholders' equity was $1,118.0 million, up from $732.7 million at the end of 2023.

Liquidity and Capital Resources

Insulet reported cash and cash equivalents of $902.6 million as of September 30, 2024, compared to $704.2 million at the end of 2023. The company maintains a debt-to-total capital ratio of 56% and a net debt-to-total capital ratio of 20%.

How Insulet Corporation (PODD) Makes Money

Revenue Streams

Insulet Corporation primarily generates revenue through the sales of its Omnipod products, which are insulin delivery systems designed for individuals with diabetes. The company’s revenue can be categorized into two main segments: U.S. Omnipod sales and International Omnipod sales.

U.S. Market Performance

In the U.S. market, revenue from the sale of Omnipod products for the nine months ended September 30, 2024, reached $1,065.6 million, an increase of 24.4% compared to $856.4 million in the same period of 2023. This growth was attributed to a larger customer base and increased sales through pharmacy channels. The related party revenue in this segment also saw a significant rise, amounting to $430.4 million for the nine months ended September 30, 2024, up from $318.0 million in the prior year.

International Market Expansion

Internationally, Omnipod sales increased by $77.7 million, or 25.6%, totaling $381.4 million for the nine months ended September 30, 2024, compared to $303.7 million in 2023. The growth in this segment was driven by new product launches in key markets such as the U.K. and Germany, along with an increase in the average selling price of Omnipod 5 units compared to previous models.

Cost Structure and Profitability

For the nine months ended September 30, 2024, the cost of revenue increased to $459.3 million from $388.6 million in the same period in 2023, reflecting an 18.2% rise. The gross margin improved to 68.8%, up from 67.3%, primarily due to pricing benefits and improved manufacturing efficiencies.

Research and Development

Research and development expenses for the nine months ended September 30, 2024, were $159.0 million, slightly lower than the $163.0 million recorded in the same period of the previous year. As a percentage of revenue, these expenses accounted for 10.8%, down from 13.7% in 2023, indicating improved efficiency in spending relative to revenue growth.

Net Income and Earnings Per Share

Net income for the nine months ended September 30, 2024, was $317.6 million, significantly higher than $103.0 million in 2023. The earnings per share (EPS) for the same period were $4.40 diluted, compared to $1.47 in the previous year.

Future Outlook

For the full year 2024, Insulet expects strong revenue growth driven by the continued adoption of Omnipod 5 and the benefits of its recurring revenue model, alongside anticipated increases in average selling prices due to annual wholesale acquisition cost adjustments.

Updated on 16 Nov 2024

Resources:

1. Insulet Corporation (PODD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Insulet Corporation (PODD)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Insulet Corporation (PODD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.