QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2024 and December 31, 2023 | |||||
Condensed Consolidated Statements of Income (Unaudited) for the three and six months ended June 30, 2024 and 2023 | |||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 30, 2024 and 2023 | |||||
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) for the three and six months ended June 30, 2024 and 2023 | |||||
Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2024 and 2023 | |||||
Item 1. | Condensed Consolidated Financial Statements (Unaudited) |
(in millions, except share and per share data) | June 30, 2024 | December 31, 2023 | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable trade, less allowance for credit losses of $ | |||||||||||
Accounts receivable trade, net — related party | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Other intangible assets, net | |||||||||||
Goodwill | |||||||||||
Deferred tax assets | |||||||||||
Other assets (includes $ | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Accrued expenses and other current liabilities — related party | |||||||||||
Current portion of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 12) | |||||||||||
Stockholders’ Equity | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Revenue from related party | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | |||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average number of common shares outstanding (in thousands): | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ( | |||||||||||||||||||
Unrealized (loss) gain on cash flow hedges, net of tax | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(dollars in millions) | Shares (in thousands) | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Exercise of options to purchase common stock | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of shares for employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||
Restricted stock units vested, net of shares withheld for taxes | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(dollars in millions) | Shares (in thousands) | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Exercise of options to purchase common stock | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of shares for employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Restricted stock units vested, net of shares withheld for taxes | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(dollars in millions) | Shares (in thousands) | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Exercise of options to purchase common stock | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of shares for employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||
Restricted stock units vested, net of shares withheld for taxes | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(dollars in millions) | Shares (in thousands) | Amount | |||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Exercise of options to purchase common stock | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of shares for employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Restricted stock units vested, net of shares withheld for taxes | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | $ |
Six Months Ended June 30, | |||||||||||
(in millions) | 2024 | 2023 | |||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income taxes | ( | ||||||||||
Non-cash interest expense | |||||||||||
Provision for credit losses | |||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Accounts receivable — related party | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Accrued expenses and other liabilities — related party | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Investments in developed software | ( | ( | |||||||||
Acquisition of intangible assets | ( | ||||||||||
Acquisition of a business | ( | ||||||||||
Cash paid for investments | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Repayment of equipment financings | ( | ( | |||||||||
Repayment of financing lease | ( | ||||||||||
Repayment of term loan | ( | ( | |||||||||
Repayment of mortgage | ( | ( | |||||||||
Proceeds from exercise of stock options | |||||||||||
Proceeds from issuance of common stock under employee stock purchase plan | |||||||||||
Payment of withholding taxes in connection with vesting of restricted stock units | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
U.S. Omnipod | $ | $ | $ | $ | |||||||||||||||||||
International Omnipod | |||||||||||||||||||||||
Total Omnipod products | |||||||||||||||||||||||
Drug Delivery | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Distributor A | % | % | % | % | |||||||||||||||||||
Distributor B | % | % | % | % | |||||||||||||||||||
Distributor C | % | % | % | % |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Accrued expenses and other current liabilities | $ | $ | |||||||||
Other liabilities | |||||||||||
Total deferred revenue | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Deferred revenue recognized | $ | $ | $ | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Prepaid expenses and other current assets | $ | $ | |||||||||
Other assets | |||||||||||
Total capitalized contract acquisition costs, net | $ | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Accounts receivable trade, net | $ | $ | |||||||||
Unbilled receivable | |||||||||||
Accounts receivable, net | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Distributor A | % | % | |||||||||
Distributor B | % | % | |||||||||
Distributor C | % | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Credit losses at beginning of year | $ | $ | $ | $ | |||||||||||||||||||
Provision for expected credit losses | ( | ||||||||||||||||||||||
Write-offs charged against allowance | ( | ( | ( | ( | |||||||||||||||||||
Recoveries of amounts previously reserved | |||||||||||||||||||||||
Credit losses at the end of period | $ | $ | $ | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Short-term portion | $ | $ | |||||||||
Long-term portion | |||||||||||
Total capitalized implementation costs | |||||||||||
Less: accumulated amortization | ( | ( | |||||||||
Capitalized implementation costs, net | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | |||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Internal-use software | ( | ( | |||||||||||||||||||||||||||||||||
Developed technology | ( | ( | |||||||||||||||||||||||||||||||||
Patents | ( | ( | |||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Accrued rebates | $ | $ | |||||||||
Employee compensation and related costs | |||||||||||
Professional and consulting services | |||||||||||
Other | |||||||||||
Accrued expenses and other current liabilities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Product warranty liability at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Warranty expense | |||||||||||||||||||||||
Change in estimate | ( | ( | ( | ( | |||||||||||||||||||
Warranty fulfillment | ( | ( | ( | ( | |||||||||||||||||||
Product warranty liability at the end of period | $ | $ | $ | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Equipment Financing due May 2024 | $ | $ | |||||||||
Equipment Financing due November 2025 | |||||||||||
Equipment Financing | |||||||||||
Term Loan due May 2028 | |||||||||||
Revolving Credit Facility expires June 2028 | |||||||||||
Equipment Financing due July 2028 | |||||||||||
Finance lease obligation | |||||||||||
Unamortized debt discount | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Total debt, net | |||||||||||
Less: current portion | |||||||||||
Total long-term debt, net | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Contractual interest expense | $ | $ | $ | $ | |||||||||||||||||||
Amortization of debt issuance costs | |||||||||||||||||||||||
Total interest recognized on the Convertible Notes | $ | $ | $ | $ |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Term Loan | $ | $ | |||||||||
Convertible Notes | |||||||||||
Equipment financings | |||||||||||
Mortgage | |||||||||||
Total debt, net | $ | $ |
Fair Value Measurements at June 30, 2024 | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Term Loan(1) | $ | $ | $ | $ | |||||||||||||||||||
Convertible Notes(2) | |||||||||||||||||||||||
Equipment financings(3) | |||||||||||||||||||||||
Mortgage(3) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2023 | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Term Loan(1) | $ | $ | $ | $ | |||||||||||||||||||
Convertible Notes(2) | |||||||||||||||||||||||
Equipment financings(3) | |||||||||||||||||||||||
Mortgage(3) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements at June 30, 2024 | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Cash(1) | $ | $ | $ | $ | |||||||||||||||||||
Money market mutual funds(1) | |||||||||||||||||||||||
Term deposits(1) | |||||||||||||||||||||||
Interest rate swaps(2) | |||||||||||||||||||||||
Debt securities(3) | |||||||||||||||||||||||
Other investments(3) | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2023 | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Cash(1) | $ | $ | $ | $ | |||||||||||||||||||
Money market mutual funds(1) | |||||||||||||||||||||||
Term deposits(1) | |||||||||||||||||||||||
Interest rate swaps(2) | |||||||||||||||||||||||
Debt securities(3) | |||||||||||||||||||||||
Other investments(3) | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
(in millions) | Other Investments | ||||
Balance at beginning of both periods | $ | ||||
Purchases | |||||
Unrealized loss included in other expense, net | ( | ||||
Balance at the end of both periods | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Foreign Currency Translation Adjustment | Unrealized Loss on Securities | Unrealized Gain on Cash Flow Hedges | Accumulated Other Comprehensive Loss | Foreign Currency Translation Adjustment | Unrealized Loss on Securities | Unrealized Gain on Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications (1) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified to net income (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of period | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Foreign Currency Translation Adjustment | Unrealized Loss on Securities | Unrealized Gain on Cash Flow Hedges | Accumulated Other Comprehensive Income | Foreign Currency Translation Adjustment | Unrealized Loss on Securities | Unrealized Gain on Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified to net income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at the end of period | $ | ( | $ | $ | $ | $ | ( | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Add back interest expense, net of tax | |||||||||||||||||||||||
Net income, diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares outstanding, basic (in thousands) | |||||||||||||||||||||||
Convertible Notes | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Weighted average number of common shares outstanding, diluted (in thousands) | |||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Convertible Notes | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Total |
Three Months Ended June 30, | |||||||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | Percent Change | Currency Impact | Constant Currency (1) | ||||||||||||||||||||||||
U.S. Omnipod | $ | 352.3 | $ | 276.8 | 27.3 | % | — | % | 27.3 | % | |||||||||||||||||||
International Omnipod | 128.1 | 103.7 | 23.5 | % | (0.9) | % | 24.4 | % | |||||||||||||||||||||
Total Omnipod | 480.4 | 380.5 | 26.3 | % | (0.2) | % | 26.5 | % | |||||||||||||||||||||
Drug Delivery | 8.1 | 16.0 | (49.4) | % | — | % | (49.4) | % | |||||||||||||||||||||
Total revenue | $ | 488.5 | $ | 396.5 | 23.2 | % | (0.2) | % | 23.4 | % |
Six Months Ended June 30, | |||||||||||||||||||||||||||||
(dollars in millions) | 2024 | 2023 | Percent Change | Currency Impact | Constant Currency (1) | ||||||||||||||||||||||||
U.S. Omnipod | $ | 670.0 | $ | 535.8 | 25.0 | % | — | % | 25.0 | % | |||||||||||||||||||
International Omnipod | 243.4 | 202.3 | 20.3 | % | 0.6 | % | 19.7 | % | |||||||||||||||||||||
Total Omnipod | 913.4 | 738.1 | 23.8 | % | 0.2 | % | 23.6 | % | |||||||||||||||||||||
Drug Delivery | 16.8 | 16.5 | 1.8 | % | — | % | 1.8 | % | |||||||||||||||||||||
Total revenue | $ | 930.2 | $ | 754.6 | 23.3 | % | 0.2 | % | 23.1 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
(dollars in millions) | Amount | Percent of Revenue | Amount | Percent of Revenue | |||||||||||||||||||
Cost of revenue | $ | 157.6 | 32.3 | % | $ | 131.6 | 33.2 | % | |||||||||||||||
Research and development expenses | $ | 53.9 | 11.0 | % | $ | 55.1 | 13.9 | % | |||||||||||||||
Selling, general and administrative expenses | $ | 222.4 | 45.5 | % | $ | 178.7 | 45.1 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
(dollars in millions) | Amount | Percent of Revenue | Amount | Percent of Revenue | |||||||||||||||||||
Cost of revenue | $ | 292.5 | 31.4 | % | $ | 249.2 | 33.0 | % | |||||||||||||||
Research and development expenses | $ | 104.1 | 11.2 | % | $ | 105.2 | 13.9 | % | |||||||||||||||
Selling, general and administrative expenses | $ | 422.1 | 45.4 | % | $ | 341.4 | 45.2 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income | $ | 188.6 | $ | 27.3 | $ | 240.1 | $ | 51.1 | |||||||||||||||
Interest expense, net | 1.7 | 2.4 | 3.0 | 5.3 | |||||||||||||||||||
Income tax (benefit) expense | (137.5) | 1.2 | (134.1) | 2.0 | |||||||||||||||||||
Depreciation and amortization | 19.2 | 18.1 | 38.0 | 35.3 | |||||||||||||||||||
Stock-based compensation | 17.0 | 13.1 | 31.2 | 25.2 | |||||||||||||||||||
Voluntary medical device corrections(1) | — | (0.8) | — | (8.8) | |||||||||||||||||||
Unrealized loss on investment(2) | 1.8 | — | 1.8 | — | |||||||||||||||||||
Adjusted EBITDA | $ | 90.8 | $ | 61.3 | $ | 180.0 | $ | 110.1 |
(1) Represents income resulting from an adjustment to estimated costs associated with the voluntary MDC notices issued in the fourth quarter of 2022, which is included in cost of revenue. Refer to Note 8 to our consolidated financial statements for additional information. | ||
(2) Represents non-operating loss related to fair value adjustment of strategic debt investment. |
(in millions) | June 30, 2024 | December 31, 2023 | |||||||||
Cash and cash equivalents | $ | 821.0 | $ | 704.2 | |||||||
Current portion of long-term debt | $ | 37.9 | $ | 49.4 | |||||||
Long-term debt, net | $ | 1,359.9 | $ | 1,366.4 | |||||||
Total debt, net | $ | 1,397.8 | $ | 1,415.8 | |||||||
Total stockholders’ equity | $ | 998.4 | $ | 732.7 | |||||||
Debt-to-total capital ratio | 58 | % | 66 | % | |||||||
Net debt-to-total capital ratio | 24 | % | 33 | % |
Issuance Date | Coupon | Principal Outstanding (in millions) | Due Date | Conversion Rate (1) | Conversion Price per Share of Common Stock | |||||||||||||||||||||||||||
September 2019 | 0.375% | $ | 800.0 | September 2026 | 4.4105 | $ | 226.73 |
Six Months Ended June 30, | |||||||||||
(in millions) | 2024 | 2023 | |||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | 184.1 | $ | 44.5 | |||||||
Investing activities | (48.9) | (65.2) | |||||||||
Financing activities | (15.0) | (8.9) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (3.4) | — | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 116.8 | $ | (29.6) |
Number | Description | |||||||
10.1 | ||||||||
10.2 | Sixth Amendment to Credit Agreement, dated August 2, 2024, among Insulet Corporation, Insulet MA Securities Corporation, Morgan Stanley Senior Funding, Inc., as administrative agent, and the other lenders party thereto (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed August 5, 2024) | |||||||
10.3++* | ||||||||
10.4++* | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
101 | The following materials from Insulet Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language), as follows: | |||||||
(i) Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2024 and December 31, 2023 | ||||||||
(ii) Condensed Consolidated Statements of Income (Unaudited) for the three and six months ended June 30, 2024 and 2023 | ||||||||
(iii) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 30, 2024 and 2023 | ||||||||
(iv) Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the three and six months ended June 30, 2024 and 2023 | ||||||||
(v) Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2024 and 2023 | ||||||||
(vi) Condensed Notes (Unaudited) to Consolidated Financial Statements | ||||||||
++ | Certain portions of this exhibit are considered confidential and have been omitted as permitted under SEC rules and regulations. | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
INSULET CORPORATION (Registrant) | ||||||||
Date: | August 8, 2024 | /s/ James R. Hollingshead | ||||||
James R. Hollingshead | ||||||||
Chief Executive Officer (Principal Executive Officer) |
Date: | August 8, 2024 | /s/ Ana M. Chadwick | ||||||
Ana M. Chadwick | ||||||||
Chief Financial Officer, Executive Vice President (Principal Financial Officer) |
*** | *** | *** | *** | ||||||||
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Total | *** | *** | *** | *** | *** |
ABBOTT DIABETES CARE INC. | ||
By: /s/ Jared Watkin | ||
Name: Jared Watkin | ||
Title: EVP Diabetes Care | ||
Date: 6/27/2024 | ||
INSULET CORPORATION | ||
By: /s/ Adam Cate | ||
Name: Adam Cate | ||
Title: GVP, Omnipod 5 Franchise Head | ||
Date: 6/26/2024 |
/s/ James R. Hollingshead | ||||||||
James R. Hollingshead | ||||||||
Chief Executive Officer | ||||||||
Date: | August 8, 2024 |
/s/ Ana M. Chadwick | ||||||||
Ana M. Chadwick | ||||||||
Chief Financial Officer, Executive Vice President | ||||||||
Date: | August 8, 2024 |
/s/ James R. Hollingshead | ||||||||
James R. Hollingshead | ||||||||
Chief Executive Officer | ||||||||
Date: | August 8, 2024 | |||||||
/s/ Ana M. Chadwick | ||||||||
Ana M. Chadwick | ||||||||
Chief Financial Officer, Executive Vice President | ||||||||
Date: | August 8, 2024 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Other assets, at fair value | $ 23.4 | $ 31.3 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 70,112,039 | 69,907,289 |
Common stock, outstanding (in shares) | 70,112,039 | 69,907,289 |
Nonrelated Party | ||
Allowance for doubtful accounts | $ 2.8 | $ 2.5 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenue | $ 488.5 | $ 396.5 | $ 930.2 | $ 754.6 |
Cost of revenue | 157.6 | 131.6 | 292.5 | 249.2 |
Gross profit | 330.9 | 264.9 | 637.7 | 505.4 |
Research and development expenses | 53.9 | 55.1 | 104.1 | 105.2 |
Selling, general and administrative expenses | 222.4 | 178.7 | 422.1 | 341.4 |
Operating income | 54.6 | 31.1 | 111.5 | 58.8 |
Interest expense, net | (11.0) | (9.7) | (21.7) | (19.1) |
Interest income | 9.3 | 7.3 | 18.7 | 13.8 |
Other expense, net | (1.8) | (0.2) | (2.5) | (0.4) |
Income before income taxes | 51.1 | 28.5 | 106.0 | 53.1 |
Income tax benefit (expense) | 137.5 | (1.2) | 134.1 | (2.0) |
Net income | $ 188.6 | $ 27.3 | $ 240.1 | $ 51.1 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.69 | $ 0.39 | $ 3.43 | $ 0.73 |
Diluted (in dollars per share) | $ 2.59 | $ 0.39 | $ 3.32 | $ 0.73 |
Weighted-average number of common shares outstanding (in thousands): | ||||
Basic (in shares) | 70,062 | 69,741 | 70,010 | 69,662 |
Diluted (in shares) | 73,802 | 70,142 | 73,771 | 70,119 |
Nonrelated Party | ||||
Revenue | $ 341.2 | $ 287.3 | $ 671.1 | $ 548.6 |
Related Party | ||||
Revenue | $ 147.3 | $ 109.2 | $ 259.1 | $ 206.0 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 188.6 | $ 27.3 | $ 240.1 | $ 51.1 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustment | (1.1) | (2.4) | (7.7) | (0.7) |
Unrealized (loss) gain on cash flow hedges, net of tax | (2.8) | 2.8 | (4.7) | (3.0) |
Other comprehensive (loss) income, net of tax | (3.9) | 0.4 | (12.4) | (3.7) |
Comprehensive income | $ 184.7 | $ 27.7 | $ 227.7 | $ 47.4 |
Basis of Presentation and Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements reflect the consolidated income of Insulet Corporation and its subsidiaries (“Insulet” or the “Company”). The unaudited consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates. In management’s opinion, the unaudited consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the interim results reported. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024, or for any other subsequent interim period. The year-end balance sheet data was derived from audited consolidated financial statements. These unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP; accordingly, they should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Related Party Transactions The Company has a distribution agreement with a related party that contains terms consistent with those prevailing at arm’s length. The spouse of one of the members of the Company’s Board of Directors is an executive officer of the distributor. Shipping and Handling Costs Shipping and handling costs included in selling, general and administrative expenses were $4.0 million and $3.5 million for the three months ended June 30, 2024 and 2023, respectively, and were $7.4 million and $5.8 million for the six months ended June 30, 2024 and 2023, respectively. Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. To measure fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs: Level 1—observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2—significant other observable inputs that are observable either directly or indirectly; and Level 3—significant unobservable inputs for which there are little or no market data, which require the Company to develop its own assumptions. Judgement is involved in estimating inputs, such as discount rates, used in Level 3 fair value measurements. Changes to these inputs can have a significant effect on fair value measurements and amounts that could be realized. Certain of the Company’s financial instruments, including accounts receivable, accounts payable, accrued expenses and other liabilities, are carried at cost, which approximates their fair value because of their short-term maturity.
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Revenue and Contract Acquisition Costs |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Contract Acquisition Costs | Revenue and Contract Acquisition Costs The following table summarizes the Company’s disaggregated revenue:
The percentages of total revenue for customers that represent 10% or more of total revenue were as follows:
Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown:
Revenue recognized from amounts included in deferred revenue at the beginning of each respective period was as follows:
Contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown:
The Company recognized $4.4 million and $4.0 million of amortization of capitalized contract acquisition costs during the three months ended June 30, 2024 and 2023, respectively, and recognized $8.6 million and $8.0 million of amortization of capitalized contract acquisition costs during the six months ended June 30, 2024 and 2023, respectively.
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Accounts Receivable, Net |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | Accounts Receivable, Net At the end of each period, accounts receivable were comprised of the following:
The percentages of total net accounts receivable trade for customers that represent 10% or more of total net accounts receivable trade were as follows:
The following table presents the activity in the allowance for credit losses, which is comprised primarily of the Company’s direct consumer receivable portfolio. The allowance for credit losses of other portfolios is insignificant.
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Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories At the end of each period, inventories were comprised of the following:
|
Cloud Computing Costs |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cloud Computing Costs | Cloud Computing Costs Capitalized costs to implement cloud computing arrangements at cost and accumulated amortization were as follows:
Amortization expense was $6.5 million and $5.0 million for the three months ended June 30, 2024 and 2023, respectively, and was $12.6 million and $9.3 million for the six months ended June 30, 2024 and 2023, respectively.
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Goodwill and Other Intangible Assets, Net |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net The carrying amount of goodwill was $51.7 million at both June 30, 2024 and December 31, 2023. The gross carrying amount, accumulated amortization and net book value of intangible assets at the end of each period were as follows:
Amortization expense for intangible assets was $2.4 million and $2.7 million for the three months ended June 30, 2024 and 2023, respectively, and was $4.8 million and $5.1 million for the six months ended June 30, 2024 and 2023, respectively.
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Investments |
6 Months Ended |
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Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Equity Securities Refer to “Assets Measured at Fair Value on a Non-Recurring Basis” in Note 10 for disclosures regarding investments in equity securities without readily determinable fair values. Debt Securities During the three months ended June 30, 2023, the Company made a strategic investment in debt securities of a privately held entity in the amount of $5.0 million, which is included in other assets on the consolidated balance sheets. The debt securities mature in December 2024 unless converted earlier. The amortized cost basis of the debt securities was $5.0 million at both June 30, 2024 and December 31, 2023. The amount of interest earned on the investment for the three and six months ended June 30, 2024 and 2023 was insignificant. Refer to Note 10 for the fair values. Other During the six months ended June 30, 2023, the Company made a strategic investment in a privately held entity in the amount of $2.0 million. The investment is a debt security with embedded derivatives and is accounted for by applying the fair value option, as this approach best reflects the underlying economics of the transaction. The fair value of the investment is calculated using a combination of the market approach and income approach methodologies and is reported within other assets on the consolidated balance sheets. During three and six months ended June 30, 2024, a $1.8 million unrealized loss on the investment was recorded in other expense, net in the consolidated statements of income. Refer to Note 10 for the fair values.
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Accrued Expenses and Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities were as follows:
Product Warranty Costs The Company provides a four-year warranty on Personal Diabetes Managers (“PDMs”) and Controllers sold in the United States and Europe and a five-year warranty on PDMs sold in Canada and may replace Pods that do not function in accordance with product specifications. The Company estimates its warranty obligation at the time the product is shipped based on historical experience and the estimated cost to service the claims. Cost to service the claims reflects the current product cost, reclaim costs, shipping and handling costs and direct and incremental distribution and customer service support costs. Since the Company continues to introduce new products and versions, the anticipated performance of the product over the warranty period is also considered in estimating warranty reserves. Warranty expense is recorded in cost of revenue in the consolidated statements of income. Reconciliations of the changes in the Company’s product warranty liability were as follows:
During the fourth quarter of 2022, the Company issued two voluntary medical device correction notices (“MDCs”), one for its Omnipod DASH PDM relating to its battery and the other for its Omnipod 5 Controller relating to its charging port and cable. During the six months ended June 30, 2023, the Company revised the estimated liability for these MDCs by $8.8 million. This change in estimate primarily resulted from lower shipping costs for replacement DASH PDMs and lower expected distribution costs for Omnipod 5 Controllers. The liability related to the MDCs included in product warranty liability at December 31, 2023 was insignificant and no amount was remaining as of June 30, 2024.
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Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The components of debt consisted of the following:
0.375% Convertible Senior Notes The Company’s 0.375% Convertible Senior Notes due September 2026 (the “Convertible Notes”) have an effective interest rate of 0.76%. The components of interest expense related to the Convertible Notes for the were as follows:
As of June 30, 2024 and December 31, 2023, unamortized issuance costs associated with the Convertible Notes were $6.6 million and $8.2 million, respectively. The Convertible Notes are convertible into cash, shares of the Company’s common stock, or the combination of cash and shares of common stock, at the Company’s election, at an initial conversion rate of 4.4105 shares of common stock per $1,000 principal amount of the notes, which is equivalent to a conversion price of $226.73 per share, subject to adjustment under certain circumstances. The notes will be convertible at the holder’s election, from June 1, 2026 through August 28, 2026 and prior to then under certain circumstances as set forth in the agreement. Additionally, on or after September 6, 2023, the Company may redeem for cash all or a portion of the Convertible Notes, if its stock price has been equal to or greater than $294.75 for at least 20 of the prior 30 consecutive trading days including the date which the Company provides notice of redemption. Additional interest of 0.5% per annum is payable if the Company fails to timely file required documents or reports with the Securities and Exchange Commission (“SEC”). If the Company merges or consolidates with a foreign entity, the Company may be required to pay additional taxes. The Company determined that the higher interest payments and tax payments required in certain circumstances were embedded derivatives that should be bifurcated and accounted for at fair value. The Company assessed the value of the embedded derivatives at each balance sheet date and determined they had nominal value. In conjunction with the issuance of the Convertible Notes, the Company purchased Capped Calls on the Company’s common stock with certain counterparties to reduce the potential dilution to its common stock (or, in the event the conversion is settled in cash, to provide a source of cash to settle a portion of its cash payment obligation) if, at the time of conversion, its stock price exceeds the conversion price under the Convertible Notes. The Capped Calls have an initial strike price of $335.90 per share, which represents a premium of 100% over the last reported sale price of the Company’s common stock of $167.95 per share on the date of the transaction. The Capped Calls cover 3.5 million shares of common stock and are recorded within stockholders’ equity on the consolidated balance sheets. Equipment Financing In 2023, the Company entered into an arrangement under which the Company may obtain up to $24.0 million of financing for manufacturing equipment. The Company is involved in the construction of the manufacturing equipment; accordingly, it is included in property, plant and equipment on the consolidated balance sheet at both June 30, 2024 and December 31, 2023. The Company’s obligation reflects payments made to date by the third-party bank to the equipment manufacturer, net of discount and less repayment of principal. The financing obligation will mature 36 months following completion of construction. Senior Secured Credit Agreement In January 2024, the Company amended its Term Loan due May 2028 to bear interest at a rate of Secured Overnight Financing Rate (“SOFR”) plus 3.0%, with a 0% SOFR floor. At the same time, the Company amended its Revolving Credit Facility such that outstanding borrowings bear interest at a rate of SOFR plus an applicable margin of 2.375% to 3.0% based on the Company’s net leverage ratio and credit rating. In August 2024, the Company amended its Term Loan to bear interest at a rate of SOFR plus 2.5% and extended the term to August 2031. Carrying Value At the end of each period, the carrying value of the Company’s debt was comprised of the following:
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Financial Instruments and Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value | Financial Instruments and Fair Value Financial Instruments Disclosed at Fair Value The following tables provide a summary of the significant financial instruments that are disclosed at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:
(1) Fair value was determined using quoted market prices. (2) Fair value was determined using market prices obtained from third-party pricing sources. (3) Fair value approximates carrying value and was determined using the cost basis. Assets Measured at Fair Value on a Recurring Basis The following tables provide a summary of assets that are measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:
(1) Cash and cash equivalents are carried at face amounts, which approximate their fair values. (2) Fair value represents the estimated amounts the Company would receive or pay to terminate the contracts and is determined using industry standard valuation models and market-based observable inputs, including credit risk and interest rate yield curves. The fair value of the swaps is included in on the consolidated balance sheets. (3) Fair value is determined using industry standard valuation models and market-based unobservable inputs, including credit spread and risk free rate ranging from 3.8% to 5.6%. Judgement is involved in estimating inputs, such as discount rates, used in Level 3 fair value measurements. Changes to these inputs can have a significant effect on fair value measurements and amounts that could be realized. There were no changes in the fair values of the Level 3 debt securities during the three and six months ended June 30, 2024 or the three and six months ended June 30, 2023. Below is a reconciliation of changes in fair value of other investments for both the three and six months ended June 30, 2024. There were no changes in the fair value of other investments during the three and six months ended June 30, 2023.
Assets Measured at Fair Value on a Non-Recurring Basis As of June 30, 2024 and December 31, 2023, the total carrying value of the Company’s investments in equity securities without readily determinable fair values was $9.7 million and was included within other assets on the consolidated balance sheets. These investments are carried at cost less impairment, if any. If an observable price change in orderly transactions for the identical or similar investment in the same issuer is identified, the investments are measured at fair value as of the date that the observable transaction occurred and categorized as Level 2 in the fair value hierarchy. As of both June 30, 2024 and December 31, 2023 cumulative gains were $0.8 million.
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Derivative Instruments |
6 Months Ended |
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Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company manages interest rate exposure through the use of interest rate swap transactions with financial institutions acting as principal counterparties. Under the Company’s interest rate swap agreements that expire on April 30, 2025, the Company receives variable rate interest payments and pays fixed interest rates of 0.95% and 0.96% on a total notional value of $480.0 million of its Term Loan. The Company has designated the interest rate swaps as cash flow hedges. As of June 30, 2024, the Company estimates that $16.7 million of net gains related to the interest rate swaps included in accumulated other comprehensive income will be reclassified into the statement of income over the next 12 months. When recognized, gains and losses on cash flow hedges reclassified from accumulated other comprehensive income (loss) are recognized within interest expense, net in the consolidated statement of income.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in the normal course of business in various legal proceedings, including intellectual property, contract, employment, and product liability suits. The Company does not expect the outcome of these proceedings, either individually or in the aggregate, to have a material adverse effect on its results of operations. Letters of Credit As of June 30, 2024, the Company had $16.8 million of letters of credit outstanding, primarily under its $20.0 million uncommitted letter of credit facility to backstop bank guarantees for the same amount. The bank guarantees primarily serve as security for the newly constructed manufacturing building in Malaysia until the Company purchases the property. The Company pays interest on outstanding borrowings and commitment fees on the maximum amount available to be drawn under the letters of credit at a rate of between 1.65% and 2.25%, depending on the Company’s credit rating. The letters of credit include customary covenants, none of which are considered restrictive to the Company’s operations. The Company had letters of credit outstanding totaling $20.9 million as of December 31, 2023.
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Stock-Based Compensation Expense |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | Stock-Based Compensation Expense Compensation expense related to stock-based awards was recorded as follows:
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Accumulated Other Comprehensive Income |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Changes in the components of accumulated other comprehensive income, net of tax, were as follows:
(1) Presented net of income taxes, the amounts of which are insignificant.
|
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 269.2% and 126.6% for the three and six months ended June 30, 2024, respectively. During the quarter ended June 30, 2024, the Company evaluated the potential realization of its deferred tax assets and determined that it is more likely than not it will realize substantially all of its net deferred tax assets. The Company weighted positive and negative evidence to assess the recoverability of its deferred tax assets, including cumulative income (loss) position, revenue growth, current profitability and expectations regarding future forecasted income. Accordingly, during the three and six months ended June 30, 2024, the Company recorded a tax benefit of $146.9 million and $153.5 million, respectively, from the release of the valuation allowance, of which $136.4 million relates to a discrete tax benefit arising from the expected realization of deferred tax assets in future years. The remainder relates to the tax effects of income generated during each period.In addition, during the three and six months ended June 30, 2024, the Company recorded a discrete tax benefit of $4.8 million associated with a U.S. federal research and development tax credit recovery project for tax years 2017 through 2021. The Company’s effective tax rate was 4.2% and 3.8% for the three and six months ended June 30, 2023, respectively after consideration of the utilization of deferred tax assets, primarily operating loss carryforwards and the related impact to the valuation allowance. At June 30, 2024, the Company maintains a $20.5 million partial valuation allowance, primarily related to certain state credit carryforward and state net operating loss carryforward deferred tax assets because the Company believes it is not more likely than not to realize the benefits of its state tax credits before expiration.
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Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding and, when dilutive, common share equivalents. The computation of basic and diluted earnings per share was as follows:
The number of common share equivalents excluded from the computation of diluted earnings per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:
|
Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Pay vs Performance Disclosure | ||||
Net income | $ 188.6 | $ 27.3 | $ 240.1 | $ 51.1 |
Insider Trading Arrangements |
3 Months Ended |
---|---|
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements reflect the consolidated income of Insulet Corporation and its subsidiaries (“Insulet” or the “Company”). The unaudited consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates. In management’s opinion, the unaudited consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the interim results reported. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024, or for any other subsequent interim period. The year-end balance sheet data was derived from audited consolidated financial statements. These unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP; accordingly, they should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
|
Shipping and Handling costs | Shipping and Handling Costs Shipping and handling costs included in selling, general and administrative expenses
|
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. To measure fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs: Level 1—observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2—significant other observable inputs that are observable either directly or indirectly; and Level 3—significant unobservable inputs for which there are little or no market data, which require the Company to develop its own assumptions. Judgement is involved in estimating inputs, such as discount rates, used in Level 3 fair value measurements. Changes to these inputs can have a significant effect on fair value measurements and amounts that could be realized. Certain of the Company’s financial instruments, including accounts receivable, accounts payable, accrued expenses and other liabilities, are carried at cost, which approximates their fair value because of their short-term maturity.
|
Product Warranty Costs | Product Warranty Costs The Company provides a four-year warranty on Personal Diabetes Managers (“PDMs”) and Controllers sold in the United States and Europe and a five-year warranty on PDMs sold in Canada and may replace Pods that do not function in accordance with product specifications. The Company estimates its warranty obligation at the time the product is shipped based on historical experience and the estimated cost to service the claims. Cost to service the claims reflects the current product cost, reclaim costs, shipping and handling costs and direct and incremental distribution and customer service support costs. Since the Company continues to introduce new products and versions, the anticipated performance of the product over the warranty period is also considered in estimating warranty reserves. Warranty expense is recorded in cost of revenue in the consolidated statements of income.
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Revenue and Contract Acquisition Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table summarizes the Company’s disaggregated revenue:
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Schedules of Concentration of Risk | The percentages of total revenue for customers that represent 10% or more of total revenue were as follows:
The percentages of total net accounts receivable trade for customers that represent 10% or more of total net accounts receivable trade were as follows:
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Schedule of Deferred Revenue | Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown:
Revenue recognized from amounts included in deferred revenue at the beginning of each respective period was as follows:
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Schedule of Contract Acquisition Costs | Contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown:
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Accounts Receivable, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Accounts Receivable | At the end of each period, accounts receivable were comprised of the following:
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Schedules of Concentration of Risk | The percentages of total revenue for customers that represent 10% or more of total revenue were as follows:
The percentages of total net accounts receivable trade for customers that represent 10% or more of total net accounts receivable trade were as follows:
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Schedule of Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses, which is comprised primarily of the Company’s direct consumer receivable portfolio. The allowance for credit losses of other portfolios is insignificant.
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | At the end of each period, inventories were comprised of the following:
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Cloud Computing Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capitalized Could Computing Costs | Capitalized costs to implement cloud computing arrangements at cost and accumulated amortization were as follows:
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Goodwill and Other Intangible Assets, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Intangible Assets | The gross carrying amount, accumulated amortization and net book value of intangible assets at the end of each period were as follows:
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Accrued Expenses and Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities were as follows:
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Schedule of Reconciliation of Changes in Product Warranty Liability | Reconciliations of the changes in the Company’s product warranty liability were as follows:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Debt | The components of debt consisted of the following:
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Schedule of Interest Expense | The components of interest expense related to the Convertible Notes for the were as follows:
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Schedule of Carrying Amount and Estimated Fair Value of Convertible Debt | At the end of each period, the carrying value of the Company’s debt was comprised of the following:
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Financial Instruments and Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Disclosed at Fair value on Recurring Basis | The following tables provide a summary of the significant financial instruments that are disclosed at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:
(1) Fair value was determined using quoted market prices. (2) Fair value was determined using market prices obtained from third-party pricing sources. (3) Fair value approximates carrying value and was determined using the cost basis. Assets Measured at Fair Value on a Recurring Basis The following tables provide a summary of assets that are measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023:
(1) Cash and cash equivalents are carried at face amounts, which approximate their fair values. (2) Fair value represents the estimated amounts the Company would receive or pay to terminate the contracts and is determined using industry standard valuation models and market-based observable inputs, including credit risk and interest rate yield curves. The fair value of the swaps is included in on the consolidated balance sheets. (3) Fair value is determined using industry standard valuation models and market-based unobservable inputs, including credit spread and risk free rate ranging from 3.8% to 5.6%.
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Schedule of Reconciliation of Changes in Fair Value of investments | Below is a reconciliation of changes in fair value of other investments for both the three and six months ended June 30, 2024. There were no changes in the fair value of other investments during the three and six months ended June 30, 2023.
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Stock-Based Compensation Expense (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation Expense | Compensation expense related to stock-based awards was recorded as follows:
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Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Changes in the components of accumulated other comprehensive income, net of tax, were as follows:
(1) Presented net of income taxes, the amounts of which are insignificant.
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted-average Number of Common Shares Used in the Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share was as follows:
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Schedule of Antidilutive Securities | The number of common share equivalents excluded from the computation of diluted earnings per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:
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Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Reclassification [Line Items] | ||||
Selling, general and administrative expenses | $ 222.4 | $ 178.7 | $ 422.1 | $ 341.4 |
Shipping and Handling | ||||
Reclassification [Line Items] | ||||
Selling, general and administrative expenses | $ 4.0 | $ 3.5 | $ 7.4 | $ 5.8 |
Revenue and Contract Acquisition Costs - Schedule of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 488.5 | $ 396.5 | $ 930.2 | $ 754.6 |
Total Omnipod products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 480.4 | 380.5 | 913.4 | 738.1 |
U.S. Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 352.3 | 276.8 | 670.0 | 535.8 |
International Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 128.1 | 103.7 | 243.4 | 202.3 |
Drug Delivery | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 8.1 | $ 16.0 | $ 16.8 | $ 16.5 |
Revenue and Contract Acquisition Costs - Schedule of Revenue from Major Customers - Concentration Risk (Details) - Customer Concentration Risk - Sales Revenue |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Distributor A | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 29.00% | 28.00% | 27.00% | 28.00% |
Distributor B | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 22.00% | 22.00% | 26.00% | 22.00% |
Distributor C | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 23.00% | 17.00% | 22.00% | 16.00% |
Revenue and Contract Acquisition Costs - Schedule of Deferred Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Revenue from Contract with Customer [Abstract] | |||||
Accrued expenses and other current liabilities | $ 21.9 | $ 21.9 | $ 15.4 | ||
Other liabilities | 2.0 | 2.0 | 1.9 | ||
Total deferred revenue | 23.9 | 23.9 | $ 17.3 | ||
Deferred revenue recognized | $ 4.0 | $ 2.3 | $ 7.2 | $ 12.2 |
Revenue and Contract Acquisition Costs - Schedule of Contract Acquisition Costs (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses and other current assets | $ 17.7 | $ 16.6 |
Other assets | 34.7 | 32.0 |
Total capitalized contract acquisition costs, net | $ 52.4 | $ 48.6 |
Revenue and Contract Acquisition Costs - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||||
Amortization of capitalized commission costs | $ 4.4 | $ 4.0 | $ 8.6 | $ 8.0 |
Accounts Receivable, Net - Schedule of Account Receivable (Details) - Nonrelated Party - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 249.0 | $ 240.2 |
Unbilled receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 6.4 | 5.7 |
Accounts receivable trade, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 242.6 | $ 234.5 |
Accounts Receivable, Net - Schedule of Net Accounts Receivable Trade from Major Customers (Details) - Accounts and Unbilled Receivables - Customer Concentration Risk |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Distributor A | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of concentration risk | 32.00% | 35.00% |
Distributor B | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of concentration risk | 28.00% | 25.00% |
Distributor C | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of concentration risk | 17.00% | 18.00% |
Accounts Receivable, Net - Summary of Allowance For Credit Losses (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Credit losses at beginning of year | $ 3.5 | $ 3.1 | $ 2.5 | $ 2.5 |
Provision for expected credit losses | (0.6) | 0.8 | 0.6 | 2.0 |
Write-offs charged against allowance | (0.1) | (0.9) | (0.3) | (1.6) |
Recoveries of amounts previously reserved | 0.0 | 0.1 | 0.0 | 0.2 |
Credit losses at the end of period | $ 2.8 | $ 3.1 | $ 2.8 | $ 3.1 |
Inventories (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Inventory Disclosure [Abstract] | |||||
Raw materials | $ 141.1 | $ 141.1 | $ 118.2 | ||
Work in process | 95.7 | 95.7 | 60.6 | ||
Finished goods | 194.1 | 194.1 | 223.8 | ||
Total inventories | 430.9 | 430.9 | $ 402.6 | ||
Amounts charged for excess and obsolete inventory | $ 11.9 | $ 0.2 | $ 14.5 | $ 2.4 |
Cloud Computing Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Research and Development [Abstract] | |||||
Short-term portion | $ 28.2 | $ 28.2 | $ 26.4 | ||
Long-term portion | 126.1 | 126.1 | 116.9 | ||
Total capitalized implementation costs | 154.3 | 154.3 | 143.3 | ||
Less: accumulated amortization | (48.2) | (48.2) | (36.6) | ||
Capitalized implementation costs, net | 106.1 | 106.1 | $ 106.7 | ||
Capitalized implementation costs, amortization | $ 6.5 | $ 5.0 | $ 12.6 | $ 9.3 |
Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 51.7 | $ 51.7 | $ 51.7 | ||
Amortization of intangible assets | $ 2.4 | $ 2.7 | $ 4.8 | $ 5.1 |
Goodwill and Other Intangible Assets, Net - Components of Other Intangible Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 154.3 | $ 149.9 |
Accumulated Amortization | (55.8) | (51.2) |
Net Book Value | 98.5 | 98.7 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43.2 | 43.2 |
Accumulated Amortization | (32.2) | (30.9) |
Net Book Value | 11.0 | 12.3 |
Internal-use software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47.5 | 43.1 |
Accumulated Amortization | (14.6) | (13.9) |
Net Book Value | 32.9 | 29.2 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27.4 | 27.4 |
Accumulated Amortization | (4.0) | (3.0) |
Net Book Value | 23.4 | 24.4 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36.2 | 36.2 |
Accumulated Amortization | (5.0) | (3.4) |
Net Book Value | $ 31.2 | $ 32.8 |
Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Gain (Loss) on Securities [Line Items] | ||||
Payments to acquire debt securities | $ 5.0 | |||
Debt securities, available-for-sale, amortized cost | $ 5.0 | $ 5.0 | $ 5.0 | |
Other investments | $ 2.0 | |||
Other Debt Obligations | ||||
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gain (loss) on the investment | $ (1.8) | $ (1.8) |
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - Nonrelated Party - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Related Party Transaction [Line Items] | ||
Accrued rebates | $ 132.6 | $ 144.0 |
Employee compensation and related costs | 91.2 | 122.0 |
Professional and consulting services | 50.3 | 34.1 |
Other | 90.9 | 73.6 |
Accrued expenses and other current liabilities | $ 365.0 | $ 373.7 |
Accrued Expenses and Other Current Liabilities - Narrative (Details) |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
notice
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
|
Product Warranty Liability [Line Items] | ||||||||
Number of voluntary medical device correction notices issued | notice | 2 | |||||||
Change in estimate | $ (400,000) | $ (800,000) | $ (400,000) | $ (8,800,000) | ||||
Product warranty liability outstanding | $ 11,600,000 | 21,300,000 | $ 62,100,000 | $ 11,600,000 | 21,300,000 | $ 11,300,000 | $ 10,300,000 | $ 39,200,000 |
Medical Device Correction Notices (“MDCs”) | ||||||||
Product Warranty Liability [Line Items] | ||||||||
Change in estimate | (8,800,000) | |||||||
Product warranty liability outstanding | $ 0 | $ 0 | ||||||
United States | ||||||||
Product Warranty Liability [Line Items] | ||||||||
Product warranty term for PDMs (in years) | 4 years | |||||||
CANADA | ||||||||
Product Warranty Liability [Line Items] | ||||||||
Product warranty term for PDMs (in years) | 5 years |
Accrued Expenses and Other Current Liabilities - Product Warranty Liability (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Product warranty liability at beginning of period | $ 11.3 | $ 39.2 | $ 10.3 | $ 62.1 |
Warranty expense | 5.7 | 3.3 | 11.2 | 8.8 |
Change in estimate | (0.4) | (0.8) | (0.4) | (8.8) |
Warranty fulfillment | (5.0) | (20.4) | (9.5) | (40.8) |
Product warranty liability at the end of period | $ 11.6 | $ 21.3 | $ 11.6 | $ 21.3 |
Debt - Components of Interest Expense (Details) - 0.375% Convertible Senior Notes due September 2026 - Convertible Debt - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 0.7 | $ 0.7 | $ 1.5 | $ 1.5 |
Amortization of debt issuance costs | 0.8 | 0.8 | 1.5 | 1.5 |
Total interest recognized on the Convertible Notes | $ 1.5 | $ 1.5 | $ 3.0 | $ 3.0 |
Financial Instruments and Fair Value - Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|---|
Gain (Loss) on Securities [Line Items] | |||
Other investments | $ 2.0 | ||
Equity securities without readily determinable fair value | $ 9.7 | $ 9.7 | |
Level 2 | Fair Value, Nonrecurring | |||
Gain (Loss) on Securities [Line Items] | |||
Cumulative gains on investments in equity securities without readily determinable fair values | $ 0.8 | $ 0.8 |
Financial Instruments and Fair Value - Schedule of Reconciliation of Changes in Fair Value of investments (Details) - Other Investments - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning | $ 3.8 | $ 3.8 |
Purchases | 0.0 | 0.0 |
Unrealized loss included in other expense, net | (1.8) | (1.8) |
Balance at the end | $ 2.0 | $ 2.0 |
Derivative Instruments (Details) - Interest Rate Swap $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Derivative [Line Items] | |
Variable interest rate (in percent) | 0.95% |
Fixed interest rate (in percent) | 0.96% |
Notional amount | $ 480.0 |
Cash flow hedge gains to be reclassified within 12 months | $ 16.7 |
Commitments and Contingencies (Details) - Letter of Credit - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Loss Contingencies [Line Items] | ||
Letters of credit outstanding amount | $ 16,800,000 | $ 20,900,000 |
Credit facility, borrowing capacity | $ 20,000,000 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Credit facility, commitment fee percentage, on maximum amount available to be drawn | 1.65% | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Credit facility, commitment fee percentage, on maximum amount available to be drawn | 2.25% |
Stock-Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 17.0 | $ 13.1 | $ 31.2 | $ 25.2 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 0.3 | 0.1 | 0.4 | 0.2 |
Research and development expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 2.1 | 3.3 | 4.2 | 6.1 |
Selling, general and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 14.6 | $ 9.7 | $ 26.6 | $ 18.9 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (in percent) | (269.20%) | 4.20% | (126.60%) | 3.80% |
Income tax benefit from release of valuation allowance | $ 146.9 | $ 153.5 | ||
Release from valuation allowance related to discrete tax benefit | 136.4 | |||
Discrete tax benefit related to research and development tax credit | 4.8 | 4.8 | ||
Valuation allowance of deferred tax asset | $ 20.5 | $ 20.5 |
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 757 | 3,916 | 706 | 3,919 |
Convertible Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 3,528 | 0 | 3,528 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 471 | 231 | 457 | 235 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 286 | 157 | 249 | 156 |
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