Insulet Posts Another Strong Quarter and Springs a CEO Transition; No Change to Our FVE

Consistent with its well-established pattern, Insulet delivered another quarter highlighted by robust growth that puts the firm on track to meet our full-year expectations, and we're leaving our fair value estimate unchanged. First-quarter revenue increased 19% in constant currency led by ongoing strength in U.S. growth of Omnipod, which clocked in at 22% year over year. In keeping with profitability gains seen in 2021, Insulet pushed first-quarter gross margin up by another 170 basis points sequentially, though we expect inflationary pressures to keep a lid on operating margin for the full year. We remain confident in Insulet's narrow economic moat, and think the firm is in a favorable position to benefit from both the meaningful innovation it has generated, as well as the truly impressive commercial infrastructure it has built.