Insulet at Goldman Sachs Conference: Strategic Growth and Leadership Transition

On Tuesday, June 10, 2025, Insulet Corporation (NASDAQ:PODD) participated in the Goldman Sachs 46th Annual Global Healthcare Conference. The company highlighted its strategic initiatives under new leadership, focusing on expanding its market presence in both Type 1 and Type 2 diabetes sectors. While Insulet reported robust Q1 performance and raised its gross margin guidance, it maintained its operating margin target, indicating a balanced approach to reinvestment and growth.

Key Takeaways

• Insulet appointed Ashley as the new CEO, emphasizing leadership to scale beyond $2 billion.
• Strong Q1 performance with 36% international growth, partially due to distributor stocking.
• Gross margin guidance increased to 71% for the year, driven by efficiencies and scale.
• Continued focus on expanding in Type 1 and Type 2 diabetes markets in the US and internationally.
• Upcoming ADA conference to reveal insights from SECURE T2D and RADIANCE studies.

Financial Results

• Q1 Performance:

- Exceeded expectations with growth driven by US and international markets.

• Guidance:

- Full-year guidance raised; Q2-Q4 assumptions remain unchanged.

• Gross Margin:

- Q1 gross margin at 71.9%; full-year guidance increased to 71%.

- Improvements from scale efficiencies, supplier negotiations, and operational enhancements.

• Operating Margin:

- Maintained target of 16.5%, with plans to reinvest in commercial efforts.

• International Growth:

- Achieved 36% growth in Q1, with 5-6% from distributor stocking.

• Rebates:

- New rebate estimation method introduced, creating a 450 basis points headwind in Q1, expected to offset over the year.

Operational Updates

• Leadership Transition:

- Ashley appointed as CEO to lead the company’s next growth phase.

• Type 2 Market:

- Increased Salesforce coverage to 40% and saw a 20% rise in unique prescribers.

• Retention:

- Focus on retention through ease-of-use improvements and proactive outreach.

• International Expansion:

- Launched in nine new markets and plans to enter the Middle East soon.

Future Outlook

• Priorities:

- Focus on Type 1 and Type 2 markets in the US and internationally.

- Advance the company’s platform and expand into new markets like Australia, New Zealand, and Japan.

• Financial Strategy:

- Commitment to reinvestment and at least 100 basis points annual margin expansion.

• Capital Structure:

- Enhanced financial flexibility through convertible debt and balance sheet upsizing.

Q&A Highlights

• Type 2 Market KPIs:

- Monitoring new customer starts and Salesforce efficiency.

• Salesforce Expansion:

- Targeting doctors prescribing CGMs and rapid-acting insulin.

• Retention Strategy:

- Offering co-pay assistance and proactive customer outreach.

• Tariff Impact:

- Minimal impact of 50 basis points, absorbed into guidance.

For more detailed insights, please refer to the full transcript below.

Full transcript - Goldman Sachs 46th Annual Global Healthcare Conference:

Unidentified speaker, Unidentified role: Well, good morning, everyone. We’ll, we’ll go ahead and get started here just to make a quick housekeeping announcement that, presentations are not open to members, of the press. With that, I’m very pleased to welcome Anna Maria Chadwick, Executive Vice President and Chief Financial Officer for Insulet. As with all these sessions, if there are questions, feel free to raise your hand, and we’ll get a mic over to you so that people participating in the webcast can hear as well.

Maybe we’ll start with, I think, this very topical leadership transition. I think the timing is probably mostly what surprised people. But maybe now you’ve had a little bit of time to kind of reflect on the transition in leadership. Maybe give us latest thinking, help investors recontextualize the move and and and how how things are going?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Great. So we welcomed Ashley about six weeks ago, and we’re very excited. There’s never a better time to make a change than from a position of strength. And the board had made an assessment and assessed that what took the company from 1 to 2,000,000,000. The skills are slightly different, what it’s gonna take to go 2,000,000,000 plus.

So the scale, leading at large scale, Ashley has from Johnson and Johnson and her consumer med tech intersection are gonna be really, really valuable. So we’re very excited to welcome her, and, so far, everything’s going really well.

Unidentified speaker, Unidentified role: Excellent. And, you know, I think with her appointment, there was, you obviously had the second quarter earnings call, but then also the small small on the day that on the day of her announced move move into the CEO role. And one of the things, at least, that that struck me and appreciating that we’re we’re newer newer to the story is the focus on globalization. Maybe as we thought about Insulet, we kind of there’s obviously still remaining opportunity in the Type one. Type two is blue ocean, and then obviously, global globalization represents a big opportunity.

Was that a signal to us that through the priorities are rescaling with globalization moving up and type twos moving down? Or how should we kind of think about the general prioritization of of of growth?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: That’s great. Our priorities remain intact. We will continue to work through them. But just to recap, our priorities are type one, type two in The US, huge markets, both of them. Type two, as you mentioned, even bigger.

Type one international, another three and a half million people in the markets we serve, only 20% penetrated, a lot more to do. We’ll keep advancing our platform. So priorities remain intact.

Unidentified speaker, Unidentified role: Okay. And you both it’s interesting. Both you and Ashley come from different types of industries. Andrea, obviously, she’s in in in med tech, but both come from more diversified businesses that are arguably, you know, slower growth profiles in in in in their end markets and in respective companies. How how are you you kind of thinking about that?

And you’ve you’ve been here a year or so transitioning and navigating to running a pure play growth company.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yeah. Listen. I will tell you, it starts with the word fun. It’s really a lot of fun to be in a fast growing, dynamic, innovative company such as Insulet. The other thing I’ll say, and I’ll speak for my background, I came primarily banking and and other industries where through a party, you enable something at the end.

The one thing that I love is just seeing the direct impact we have with our end customers and helping people with diabetes.

Unidentified speaker, Unidentified role: And and you’ve been in the role a little over a year now. Maybe just talk to us about what you know, your priorities and and how you how you see those kind of evolving over the next six to twelve months.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yeah. So the priorities for for insulin and for finance inside of insulin are are really in in the three main areas. You know, we’re here to help the people with diabetes. So that innovation road map is incredibly important. is the markets that we serve and and the expansion.

We talked about US type one, type two international, all of that. And and is really about the people. At the end of the day, it’s the people and the culture of the company, And and we have a really good one, and and we wanna keep it that way.

Unidentified speaker, Unidentified role: And and and how how as you get bigger, how do you ensure that you maintain that that growth agility while trying to manage more systems, more processes, more countries, etcetera?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. It’s a really good challenge. We’re a twenty five year young company. So I would say many companies, when you think about making a change, they have to make a change to their old systems and then build the new. Here, we’re more on the building the new.

And I think what Ashley and I bring to the organization is we’ve seen some of these large systems operate. So, we wanna design them to to the better way so that they can have that agility and flexibility as we move forward.

Unidentified speaker, Unidentified role: Maybe we could just toggle over to the business here. One of the questions that we get from investors pretty frequently on the Type two opportunity is you have had the indication since August of last year. You’ve seen very nice pickup. But how do we evaluate whether what we’re seeing is just like this is the new thing and it’s going to roll over after it’s kind of a twelve month period? There’s sort of a pool of the type 2s that are very addressable with pumps beyond the MDIs and that’s just kind of like a flash in the pan.

So what are some of the how would you respond to that? And then what are some of the KPIs that you’re monitoring to give you confidence in the outlook? So

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: I’ll start by saying it’s a huge market. Two and a half million people in The US, only, let’s call it, 5% penetrated. It’s a huge market, and we have the winning product that overtook type one to bring people from MDI. So we feel very good and confident with that. In terms of proof points, we look at a few things.

Of course, new customer starts, but that’s almost like an output. Right? But we look at our Salesforce and the coverage that we have. So we’ve talked about the fact that we expanded our Salesforce. And in that expansion, before the expansion, we covered about 30% of the two and a half million people being feet on the street.

Now with expansion, we cover about 40%. The efficiency of our direct to consumer advertising is getting better. We’re seeing that as we get inside sales calls and in those conversions. And the thing that I would note is we also talked about the number of unique prescribers. That number grew 25,000 in The US, and that was a 20% growth from a year ago.

So we feel those proof points are out there, and we’re making good in that trajectory. We wanna see more of that before we lean in any stronger, whether it’s with our guidance or with other investments that we’ll be putting out there to capitalize on this huge opportunity.

Unidentified speaker, Unidentified role: And when you say cover 30%, now 40% of that population, is that how how is that defined?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So we’ve made an assessment as to where the two and a half million people, what doctors are serving those. And what it’s very obvious is the type one population is mainly seen at at end dose. But there’s a piece of that two and a half million that also gets seen at end dose and by reverse. There’s a piece that gets seen at primary care physicians, both smaller amount of type ones, bigger amount of type twos.

So as we expand in those PCPs, we look for two key indicators. We look for high prescription of CGMs and high prescriptions of rapid acting insulin. When you have those, that’s the pecking order that we start prioritizing in the in that sales force expansion, and that’s where you tend to find those patients.

Unidentified speaker, Unidentified role: And and one of the other things that we’ve we’ve tried to figure out on the type twos is of the two point five million, what’s the serviceable population? Because one of other dynamics, I think, with the Type II that is unique from the Type I is the socioeconomic and demographic dynamics at play. So so how how does that factor into the analysis of where where to put feet on the street?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yeah. It’s a very interesting question. And I’ll bring back for a to our security to these studies where we had a wide range of social demographic classes. So the good thing is that it it does prove that the ease of use and all of the attributes that our product has served across the board, then it becomes an economic question. And we have some statistics that I just wanna share here is our product from an out of pocket to that end customer in The United States, the vast majority pays about $30 a month.

So it’s about a dollar a day. Now, again, that could be difficult affordability for some. Understood. There’s about a that pays no co pay. Nothing.

So we we continue to work through our health plans, through the PBMs, and everything to make this more affordable. The last thing that I’ll mention is and we try to be selective on this, but we do have co pay programs. So we try to make that be as reachable as possible.

Unidentified speaker, Unidentified role: Okay. That that’s very helpful. And then I think when you are you you talk about kind of measuring success of some of these investments before going going further? How how how long a measurement period is is that normally? And, like, what would you consider to be success?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So we have a very disciplined approach, whether it’s direct to consumer, whether it’s our sampling program. In terms of expectations, we have number of clicks, number of reach, number of conversions, so on and so So we look at all of those things. We we try to give it I mean, by the time the customer expresses an interest all the way to being trained and put on product, there there’s a little bit of a lag there. So I would say I mean, there’s no perfect formula.

Each program might be different, but a good six months or so. And then some of them, we also wanna see that retention and, make sure that that that’s also there. So there’s phases of measurements that we have.

Unidentified speaker, Unidentified role: Yes. It’s interesting that you bring up retention because it’s another question we get very frequently, and I would say more on the OEM side than on the pump side with respect to the type 2s. But there is a question out there about will you see as durable utilization and retention with that population as you see with as you see with, you know, more obviously with the type ones. What have you observed so far?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: So great question. You know, we walked in understanding these populations will behave differently. There’s a lot of road that the CGMs have paved in in helping us learn and understand that. So what what we’re seeing right now is pretty much in line with what we were expecting. But to be clear, I mean, we are anticipating the type one and the type two to to behave differently.

Unidentified speaker, Unidentified role: And and what were you expecting?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: So it’s it’s early days, but, you know, we are expecting, and and we don’t share the specific numbers, but we expect there to be higher attrition in the type two. We expect utilization to at times be a little more spotty because, you know, the pancreatic function of a type two still has some insulin production and so on. But at the end, what has been proven through our studies is that people who stay on product actually stay in range longer and have the desired outcomes that the health care system wants, which is the prevention of hospitalizations, the remaining organs to be functioning better over the long term. So it’s a lot of education and a lot of market development we need.

Unidentified speaker, Unidentified role: I have to push a little. But can you give us a how about any sense on magnitude of difference in utilization or retention between the type ones and type two? Is this material differences? Like, how would any scaling or framing that you could provide would be helpful.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Again, it’s it’s early days. We this is part of the data that we’re collecting. And and when you look at the type two growth that we’re having, we’re still in the early times. So once we get a little bit more, we’ll we’ll be out there sharing.

Unidentified speaker, Unidentified role: Okay. So so you are that is data that you will at some point?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: We will I think it’s important, and we know they’re different, and we’re just in the process of education.

Unidentified speaker, Unidentified role: Okay. So so too early to tell. It’d be a fair way to conclude that. Okay. And what are the what are some of the things that you’re doing to maximize retention in the type twos?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: That’s great. Listen. Today, I hope you saw the press release. It hit a

Unidentified speaker, Unidentified role: few minutes ago.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yeah. So iOS g seven is out in full market release. That follows our iOS for g six full market release that happened in the fourth quarter. Those are examples of of ways we wanna drive that retention. We wanna make it ease of use for for our customers.

There’s a customs food feature in which, you know, you can say I I’m eating similar to what I ate before, small, medium, large, those types of things. So we wanna do all of those things. We actually wanna be proactive when we see somebody come off our product for a period of time, reach out to them, understand what’s happening. Is it a a payment problem? Can we give you a co pay card?

Just like we want to really help the people out there. So so there are efforts, and we’ll continue to assess and intensify them.

Unidentified speaker, Unidentified role: Okay. Maybe just sort of moving over to the financials and the business performance here. 1Q saw quite a bit of upside. And given kind of the recurring nature of your of the business, once you get the patients, they presumably continue to use the product. Is it right to think about the guidance rates for the years flowing through the q one upside?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So that’s exactly, what we did. What we did is we, we let the upside of 1Q drop through. And also the new customer starts that we saw, we let that drop through. What we talked about is, you know, we set guidance with the full intent to hit it, and we wanna see more proof points.

I mean, we’re only in the first quarter. We’re really only two quarters into type two as well. We had great performance in international, but we’ll lean in heavier as the year progresses here, but we just wanted to see a bit more proof points.

Unidentified speaker, Unidentified role: So effectively looking at that another way, your assumptions that you had previously in guidance for 2Q to 4Q on new patient starts and other metrics not related to the Q1 flow through were unchanged?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Correct.

Unidentified speaker, Unidentified role: Okay. Maybe we could just break that down a little bit into just the different operating regions. So for The U. S, your guidance does seem to imply a pretty significant slowdown from half to half. What are some of the factors that influence that?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So as I said, I I it’s really about seeing a bit more proof points. We do feel we have a lot of tailwinds here, and it’s just early in the year.

Unidentified speaker, Unidentified role: And anything around rebates or other other kind of one off factors that we need to consider, either quarterly phasing or that may have influenced Q1?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So Q1 had two dynamics that needs to be taken into account that made the quarter look even more favorable. So you have to adjust for the, stocking dynamic from first quarter of twenty twenty four associated with the implementation of our, SAP system, and then that was very well, vetted and talked about. And the one, which is a bit newer that I indicated during the earnings call, was we did see we did see, 450 basis points of a headwind in the first quarter of twenty twenty five compared to 2024 related to a estimation change we’ve made for estimating rebates. This is specific to The US.

So now we’re we’re estimating rebates on a weighted average rebate rate for the full year, very similar to what the industry does, instead of before where we were waiting to receive information from the PBM. So it’s just a better estimation, and hopefully, what that will do is it will give you more clarity of our volume drivers instead of having that price in the middle. And the last thing that I wanna mention, it’s it’s neutral to the year in our guidance. So that those 450 basis points that we saw in the first quarter will come back ratably over the next three quarters.

Unidentified speaker, Unidentified role: And and just, like, mechanically, because they rebates always become a a little a little tricky. So and just rebates are this is the difference between gross to net on pricing, basically?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Pretty much, yes.

Unidentified speaker, Unidentified role: So should we then think about your volume growth and revenue growth being roughly equal going forward? Is that the idea, to try to smooth out the difference between new patient starts and overall utilization growth with revenue?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Correct. I mean, it’s really taking out some noise that was not intended to be there. Okay.

Unidentified speaker, Unidentified role: Got it. Maybe we could talk internationally. That is picking up momentum for you. Maybe just sort of take a step back and just sort of frame the OUS strategy. If I look at the number of why don’t you start there, and then I’ll follow-up with some other questions.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Listen, we’re super excited with our international with the overall growth of Insulet and the international growth has been amazing. We grew 36% in the first quarter, which indicates a few things, and I’ll touch on on them in a here. But when you think of the international growth, I think about it in three ways. is new markets where we’re launching Omnipod five. After we launch in the new markets, then you have a lot of cultivation and things like that, but we also have had further releases of sensors as well.

So you launch in the new market, you put out their sensors and and other things into those markets. And then, the thing is we then look out and say, are there more markets we should be? So when you look at the history of our international is it started with UK and Germany about two years ago. UK UK and Germany are still growing. It’s more it’s very durable growth, but we put out more sensors, and then we actually international on average is only 20% penetrated, and we are the most prescribed amongst new to pump in the international across Europe.

So then you get to the next layer here, and then we went with France and Netherlands kind of summer of last year. And that is also going through that same growth. And because of our reoccurring revenue model, this growth kind of overlap. And then early this year, we launched in nine more markets, which together are about the size of The UK and Germany. And then we have later on this year or early next year, we haven’t announced exact timing.

We have that in The Middle East. So when you put all of that together, you can see here kind of those layers of durable growth in into the future. So we’re very excited by our international agenda.

Unidentified speaker, Unidentified role: And and international, it gets harder. Right? You may you make the comment that the nine countries represent the size of The UK and and Germany combined. Are you going direct in in all those markets? What what is the commercial strategy?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So we launched in some of our direct markets some of the larger markets where we have where we see that bigger opportunity. A lot of the markets we launched here in the first quarter are indirect markets, so distributor markets. And and I do wanna call out it’s it’s important. Thanks for the reminder.

That about five to 6% of our growth that I mentioned here in the first quarter, so we grew 36%, represents the distributors filling up their distribution networks. So meaning, think about that as kinda nonrecurring. There could be some more of that happening in as as their different markets launch at different but there’s an element of filling their distribution networks as well.

Unidentified speaker, Unidentified role: Okay. And that’s contemplated in the guidance the of the year. And sustaining 30%, this big number, internationally even when you adjust for the stocking dynamic, continuing that or sustaining that requires both same sort of same country growth and adding new countries? Like, what’s the breakdown of sort of, like, same same country growth versus the criticality of adding new markets?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yeah. So for 2025, we’ve been pretty clear in terms of the countries that that we’re in, and it’s really expanding that offering now remaining to The Middle East, whether it might happen late this year or early next year. As you look into the out years, and we haven’t been specific, in our journey map there, there will be getting into more countries as well. Now keep in mind, on average, 20% penetrated. So there’s still a lot of room and opportunity, and our market access team is constantly working on securing more funding for for the asset class and those different types of things as that penetration does anticipate further growth.

Unidentified speaker, Unidentified role: Okay. And and how do you how do you think about qualifying markets? Like, do you wait to have visibility into reimbursement? Because you would think, like, Australia, New Zealand, Japan represent, like, big populations. But what is sort of like the qualification process for identifying which markets you want to go to?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. So it’s exactly what you mentioned, right? So we need to make sure there’s good CGM presence, and that actually tells us two things. That tells us that there’s a lot of people with diabetes as well as it tells us that there’s reimbursement in those markets. Of course, we look at data on rapid acting insulin and those types of things.

So once you put all of that together, then we have a sequence in which markets we will go to. And of course, then it’s a question, do we go direct or do we go through distributors? But all of that is part of that road map. Keep in mind, we’re only in 25 markets today.

Unidentified speaker, Unidentified role: Okay. And maybe just sort of wrapping the top line discussion together, just to make sure we kind of pull together what you’re saying and that I’ve kind of captured it accurately. So first quarter, very happy with the performance. There were some factors in there that helped overall results, positive being the potential inventory stocking for some of those distributors. It sounds like the rebate dynamic was actually a negative, though.

So you have some headwinds and tailwinds in there. For the rest of the year, in a scenario where some of the Type two dynamics persisted from Q1, you would see upside relative to your guidance. And in a scenario where you saw moderation, you would hit your guidance.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: You’ve hit it on the nail. Absolutely.

Unidentified speaker, Unidentified role: And I just wanna clarify something you said because someone in here on the webcast is gonna message me and say, Anna said they the goal is to hit the guidance. Of course, there’s I just wanna is that is the goal to hit the guidance or exceed the guidance?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: I would say it’s both. I mean, we we set it with our best available information and the intention to hit, and you’ve seen our history, and we intend that to continue.

Unidentified speaker, Unidentified role: Okay. Excellent. Maybe we could toggle over to the P and L here. I mean the gross margin trajectory of the business has been pretty extraordinary, and you’re bridging over 70% gross margin. You did take up your outlook for the year.

Maybe help us understand what are the factors contributing to the incremental gross margin performance.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: No. It’s great. We’re super excited. First quarter gross margin, 71.9%. Team’s really doing a phenomenal job.

A couple of the things that are going really well for us is getting those efficiencies. The scale that we have, the production of tens and millions and the growth we’ve had give us a lot of room for our supplier negotiations. Those have done incredibly well. The other thing I would say is, you know, the teams operating, whether you call it, you know, levels of scrap, like, the the efficiencies that we’re attaining are world class. There will always be variability amongst the quarters.

Just let’s be clear. It’s just the nature of of the business, but they they really had a phenomenal first quarter. The other thing to mention is we’ve been working a lot around tariffs, of course. And we talked about, at the time when we gave our earnings results in early May, with the information we had at that moment, we estimated the tariff impact to be small, to be about 50 basis points for the full year. And that because of the strength we’re seeing in our manufacturing operations, we leaned in and actually guidance to 71% and absorbed those 50 basis points of the tariff.

Unidentified speaker, Unidentified role: Do do we have tariffs or not?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Depends on which day, you’re in the news. But in addition to that, you know, Insulet, as others in the industry, do benefit from, some of the tariff exemptions that are out there. So overall, our impact would be smaller. And then based on the the the the day, we will continue to update you guys as we learn more.

Unidentified speaker, Unidentified role: And when where was just remind us the majority of that 50 basis point impact coming from.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: It’s mainly coming from China and in some elements there, also some of our component parts that make manufacturing over in Acton,

Unidentified speaker, Unidentified role: the component parts The raw materials. Raw materials. Raw materials. Okay. And then at the same time, while you did raise gross margin guidance, you kept the 16.5% operating margin target in place.

Help us think through where some of those incremental investments are going.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Right. So I’ll start with 16.5% operating margin is a growth of 160 basis points from prior year. We are committed to margin expansion of at least 100 basis points a year. What we wanna do is take a moment and look at our investments mainly around our commercial efforts. We believe we’re uniquely positioned both in The US and in international to to relook and lean in to see if there’s anything we can do to actually go faster within the same framework of our investment philosophy.

So that’s all we’re doing. We are, working hard to make sure we can capitalize on this huge opportunity ahead of us.

Unidentified speaker, Unidentified role: And and and when you kind of made the decision to to sort of reinvest some of the upside, how long does it take to sort of open up budgets, open hiring? You know, you obviously have to open more headcount, go through that process. How long does it take to really execute on an expanded budget offering?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Yes. You described exactly some of the mechanics that need to happen, and it depends on how it gets deployed. Usually, if it’s direct to consumer, the spending of that can happen a little bit faster. There’s a lag to seeing the impact. There’s a cultivation period and and all of those things.

So, I would say, if you do sales force expansion, which we just did once, so we’re not announcing anything or anything like that, then that takes a bit longer because you have to hire people. There’s sampling because of our unique form factor that we have. We can do sampling at doctor’s offices, and we’ve seen some really interesting, returns out of that. So we’re some of them are faster, some are a little slower, but I just gave you a little bit of a flavor between some of the alternatives.

Unidentified speaker, Unidentified role: Okay. I know we’re coming up on ADA. Maybe give us give us a preview of of what investors should be looking for and what sessions of interest or data or any anything that that you wanna highlight going into into the conference.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Great. Yeah. We’re only a few weeks away. We’re gonna be sharing more information about subsets of our secure t two d data that we showcased last year. There’s a lot more learnings and things we’ve, analyzed with that data.

And earlier this year, we were at ATTD, and we shared results of our RADIANCE study. And, again, we’ve been able to go deeper into that analysis. So you’ll be hearing a lot more from from those, those areas of studies as as we continue to build the clinical evidence, for further progression of our algorithms and other things that we’re working on.

Unidentified speaker, Unidentified role: Okay. And then lastly, during you did take some steps on the capital structure here to term out some convertible debt and then upsize and put some more debt on the balance sheet. Like what was the intention there? And what how do you plan to use this increased financial flexibility?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Right. Excellent. So listen, we’re very excited by having that increased financial flexibility and doing it at a reduced, weighted average cost capital. That that’s really the intent here. We, we’re uniquely positioned versus others in the market, generating our own free cash flow, And that gives us the ability to create a balance sheet that looks more like a grown up balance sheet and also helps us have that flexibility, as you said, into the future.

Unidentified speaker, Unidentified role: And would you contextualize that in the same vein of some of the future trajectory of Insulet, the leadership changes we talked about earlier? This is all about not mature I don’t think anyone wants to use the word maturing, but in moving Insulet to from the $1 to $2,000,000,000 company, I think you’ve talked about $2 to $6 as as the potential opportunity.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Agreed. I mean, this is really around being a a more mature we’re twenty five years young, and we now produce the balance sheet, the free cash flow to sustain ourselves. And and that’s where we are in that journey, and and we’re very excited by by the position that that we’re in. The markets have been open for us. We we had great transactions in the market, and, we’re very excited.

Unidentified speaker, Unidentified role: And we shouldn’t view it as your leading indicator on on M and A or or other. This is really allowing you to continue to run the playbook.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Correct. Allowing us to continue to reinvest in ourselves. That’s where we see the best returns, having that flexibility in the balance sheet. Those are really the key priorities.

Unidentified speaker, Unidentified role: And then I guess we’ll close with the analyst meeting. I mean, I think all I think everyone understands that three month three months after someone joins the company, it doesn’t there’s a not doesn’t make a ton of sense to host an analyst meeting. It doesn’t allow that individual to have ownership over it. It probably takes that long to prepare for the meeting, if not longer based on what I can imagine your internal teams are are doing. But when do you think we’ll have an analyst meeting back on the calendar and and just wanna make sure this is a a delay, not sort of permanent deferral?

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Correct. It’s just a delay. We’re working hard to, to align calendars to, not only for Ashley to have time to do all the listening tours and all the things she’s working on to put her her stamp into into the the strategy. I do wanna reiterate nothing has changed in terms of our strategy. More to come.

We look to, we’re working calendars. We look to see if we can squeeze anything this year. I’m not too sure. Maybe. If not, towards the early part of next year.

So it’s really a postponement. It’s not a permanent deferral or anything like that.

Unidentified speaker, Unidentified role: Excellent. Well, I think with that, we’re almost out of time. So maybe I’ll turn it back to you for any kind of closing thoughts or remarks and then wrap up.

Anna Maria Chadwick, Executive Vice President and Chief Financial Officer, Insulet: Great. Thank you, David. It’s been wonderful. Thank you all for participating and for your interest in Insulet. I firmly believe Insulet is uniquely positioned in a category of one with a product that overtook type one to be out there to really capitalize on The US type two market and the global market opportunities.

We’re very excited with our innovation journey and the road map ahead, the free cash flow production that we have, and the sustainability of insulin into the future, and ultimately helping the millions of people with diabetes out there. So thank you very much, and thanks for your interest.

Unidentified speaker, Unidentified role: Excellent. Thank you, Anna. Thank you.

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