Executive Summary

Q4 revenue was $597.5M, up 17.2% YoY (17.1% cc) and above the company’s 12–15% guidance range; gross margin expanded 120 bps to 72.1%, while operating margin was 18.3% (down 260 bps YoY due to prior-year stocking dynamics). Adjusted EPS was $1.15; GAAP EPS was $1.39 .
Demand for Omnipod 5 remained robust: U.S. Omnipod +12.4% despite a ~1,100 bps headwind from Q4’23 stocking; International Omnipod +33.5%. Management highlighted 500k active global customers (365k on Omnipod 5) and >90% of U.S. customers on Omnipod 5 in Q4 .
2025 guidance: revenue +16% to +20% (cc), gross margin ~70.5%, operating margin ~16.5%; Q1’25 revenue +22% to +25% (cc). International expected to outgrow U.S., while Drug Delivery declines 45–55% for FY25 .
Key catalysts: accelerating type 2 adoption (over 30% of U.S. NCS in Q4), broadened CGM integrations (Libre 2 Plus; G7 ramps), iOS app uptake, and rapid OUS launch cadence. These, plus margin expansion and cash generation, are central to the bull narrative into 2025 .

What Went Well and What Went Wrong

What Went Well

“We concluded an incredible year with a very strong fourth quarter… exceeding our growth and margin objectives.” CEO emphasized robust Omnipod 5 momentum across T1 and T2 and expanding international footprint .
Customer adoption milestones: 500k active global customers and 365k active Omnipod 5 users; >90% of U.S. and >30% of international customers on Omnipod 5 in Q4; strong uptake of Omnipod 5 iOS app (25% of U.S. O5 users switched to iPhone) .
Gross margin execution: Q4 GM 72.1% (+120 bps YoY) on pharmacy channel volume, favorable OUS pricing for O5, and manufacturing efficiencies; adjusted EBITDA margin 25.3% on revenue strength .

What Went Wrong

U.S. growth optics: Q4’24 U.S. Omnipod growth +12.4% was suppressed by ~1,100 bps due to Q4’23 stocking dynamics; operating margin -260 bps YoY (prior-year margin benefited by ~370 bps from stocking) .
2025 gross margin guide modestly higher (70.5%) as OUS mix dilutes margin; management framed continued improvement as “more moderate” from industry-leading levels .
Drug Delivery headwind: FY25 revenue for Drug Delivery guided down 45–55%; near-term growth driven by Omnipod while non-insulin delivery remains a drag .

Financial Results

Income Statement and Profitability (chronological columns: oldest → newest)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$509.8	$488.5	$543.9	$597.5
Gross Margin %	70.9%	67.7% (includes 280 bps charge)	69.3%	72.1%
Operating Margin %	20.9%	11.2%	16.2%	18.3%
GAAP Diluted EPS	$1.44	$2.59	$1.08	$1.39
Adjusted Diluted EPS	$1.40	$0.55	$0.90	$1.15

Notes: Q2’24 gross margin included a $13.5M inventory component charge that reduced GM by ~280 bps .

Segment/Geography (Q4 YoY)

Segment ($M)	Q4 2023	Q4 2024	YoY %
U.S. Omnipod	$394.6	$443.7	12.4%
International Omnipod	$106.4	$142.0	33.5%
Drug Delivery	$8.8	$11.8	34.1%
Total Revenue	$509.8	$597.5	17.2%

KPIs and Operating Highlights

KPI	Current Period Detail
Active global customers	~500,000; Omnipod 5 users ~365,000
Mix on Omnipod 5	>90% of U.S. customers; >30% international in Q4
Type 2 adoption	>30% of U.S. new customer starts in Q4
Pharmacy coverage	~95% covered lives via pharmacy benefit; Part D unique advantage
Adjusted EBITDA Margin (Q4)	25.3%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue Growth (cc)	FY 2025	N/A	+16% to +20%	New
Total Omnipod Growth (cc)	FY 2025	N/A	+17% to +21%	New
U.S. Omnipod Growth (cc)	FY 2025	N/A	+16% to +20%	New
International Omnipod Growth (cc)	FY 2025	N/A	+22% to +26%	New
Drug Delivery Growth (cc)	FY 2025	N/A	(55%) to (45%)	New
Gross Margin	FY 2025	N/A	~70.5%	New
Operating Margin	FY 2025	N/A	~16.5%	New
Effective Tax Rate	FY 2025	N/A	20%–25%	New
Revenue Growth (cc)	Q1 2025	N/A	+22% to +25% (Total); U.S. +21%–24%; Intl +28%–31%; Drug Delivery (10%)–(5%)	New
Dividends	FY 2025	None communicated	None communicated	N/A

Commentary: GM guide reflects scaling/efficiencies (Malaysia accretive in H2) partially offset by lower-margin OUS mix; Op margin +160 bps YoY expansion in 2025 despite investments in R&D and sales/marketing for T2 and OUS .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prev-2)	Q3 2024 (Prev-1)	Q4 2024 (Current)	Trend
Product/Tech integrations	G7 U.S. launch (full), iPhone app LMR; OUS launches with G6/Libre 2 Plus; Malaysia production begins	Type 2 label obtained (Aug 26); iPhone full release in U.S.	iOS adoption strong (25% of O5 users on iPhone); Libre 2 Plus U.S. integration; G7 OUS rollouts planned	Broadening sensor/app ecosystem, driving adoption
U.S. T2 expansion	SECURE-T2D data showcased; 510(k) filed for T2 label	First and only AID with T2 label; raised full-year guide	T2 >30% of U.S. NCS; expanding sales force to reach >40% of 2.5M T2 IIT in 2025	Rapid ramp; structural TAM expansion
International acceleration	O5 launches (NL, FR); “sensor of choice” in UK/NL	Intl O5 +36% revenue growth; continuing ramps	+33.5% Intl in Q4; launches in Italy and Nordics; more countries planned	OUS growth outpacing U.S.
Supply chain/Manufacturing	Malaysia facility producing sellable product	—	Multi-site footprint (U.S., China, Malaysia); Malaysia accretive H2’25; monitoring tariffs	Scaling with resilience
Pricing/Pharmacy channel	—	—	~95% pharmacy coverage; Part D advantage; pharmacy viewed as a moat	Durable access/contracting advantage
Digital/data platform	—	—	Omnipod Discover LMR to connect HCPs/patients via cloud portal	New retention/engagement lever

Management Commentary

“We continue to see robust demand and momentum for Omnipod 5, now available to both type 1 and type 2 patients in the U.S., and we continue to expand in international markets.” – CEO Jim Hollingshead
“In the fourth quarter, over 90% of U.S. customers and over 30% of our international customers were using Omnipod 5.” – CEO
“Type 2 users represented over 30% of our U.S. new customer starts as we ramped adoption in this patient population.” – CEO
“Fourth quarter gross margin was 72.1%, up 120 bps… driven by U.S. volume through the pharmacy channel, Omnipod 5 pricing in international markets and improved manufacturing efficiencies.” – CFO Ana Chadwick
“For the full year, we expect gross margin of approximately 70.5% and operating margin of approximately 16.5%.” – CFO

Q&A Highlights

Type 2 ramp trajectory: Mgmt reiterated strong early T2 adoption and a strategic focus to grow both T1 and T2; mix expected to rise beyond 30% over time, with sales force expansion driving reach and prescriber growth .
Q1 U.S. guide normalization: Mid-to-high teens ex-destocking reflects seasonality and philosophy consistent with full-year U.S. Omnipod +16%–20% guide .
Pharmacy channel and pricing: Management emphasized structural moats (experience, PBM relationships, Part D, pay-as-you-go model) and misfit of durable pumps in pharmacy economics .
Gross margin sustainability: 70.5% FY25 GM reflects OUS mix headwind offset by scaling/efficiencies and Malaysia ramp; longer-term GM growth at a “more moderate” pace from high base .
International durability: O5 “wins everywhere” with sensor choice and access; sustained growth across UK/DE, early traction in FR/NL, new launches in Italy/Nordics .

Estimates Context

S&P Global consensus for Q4’24 EPS/Revenue was unavailable at query time due to provider rate limits; we therefore cannot assess beat/miss vs Street. Company results did exceed its Q4 revenue growth guidance (12–15% cc) with +17.1% cc and International at the high end of guidance .
Where estimates are needed in future updates, we will anchor to S&P Global once access is restored.

Key Takeaways for Investors

Omnipod 5 flywheel intact: strong Q4 growth, broadening integrations (Libre 2 Plus, G7), and iOS adoption underpin continued U.S. and OUS expansion; >90% of U.S. base on O5 signals entrenched product-market fit .
Type 2 is the incremental growth engine: >30% of U.S. NCS in Q4, expanding sales coverage for T2 IIT, improving DTC yield post-label; this should support sustained high-teens U.S. growth in 2025 despite pricing normalization .
Margin path: FY25 GM ~70.5% and Op margin ~16.5% reflect mix headwinds offset by scaling and Malaysia accretion in H2; management still targeting profitable growth and cash generation after a 2024 FCF of $305M .
OUS is a multi-year leg: 33.5% Q4 growth with new country launches and sensor-of-choice positioning suggests OUS will be an outsized contributor in 2025; investors should monitor access, pricing, and training capacity .
Watch risks: OUS mix diluting margin, FX headwinds in reported results, tariff exposure (monitored), and competitive entries into T2 AID over 2025+ .
Trading setup: Positive narrative into 2025 guided growth and margin expansion; absent Street estimate context, the stock’s reaction likely hinges on confidence in T2 ramp durability, OUS execution, and evidence of sustained GM at/above 70% .

Supporting Appendices

Q4 2024 Additional Details and Drivers

U.S. Omnipod growth (+12.4%) was depressed by ~1,100 bps due to Q4’23 stocking; prior-year operating margin also benefited by ~370 bps from those dynamics, explaining YoY OM compression despite GM expansion .
International growth (+33.5%) benefited from adoption of Omnipod 5 and pricing as customers upgrade from DASH; FX was a minor Q4 tailwind vs prior year but ran ~60 bps unfavorable versus internal guidance .
Non-GAAP adjustments: Q4 adjusted EPS ($1.15) excludes a $17.7M tax benefit from valuation allowance release; FY adjusted EPS ($3.24) excludes $190.8M tax benefit and investment losses .

Additional Relevant Press Releases (Q4 timeframe)

Omnipod 5 now compatible with Abbott’s FreeStyle Libre 2 Plus in the U.S. (Nov 20, 2024), enhancing sensor choice and funneling new adopters .
Q3’24 print (Nov 7, 2024): 26% total revenue growth, raised FY24 revenue and margin guidance, signaling momentum heading into Q4 .

All citations:

Q4’24 8-K/press release and financials
Q4’24 earnings call transcript
Q3’24 press release
Q2’24 press release
Abbott Libre 2 Plus integration PR

INSULET CORP (PODD)·Q4 2024 Earnings Summary