Analyst Note| Debbie S. Wang |
Insulet managed to get through 2020 with little impact from the pandemic, and results from the fourth quarter were no exception. With full-year revenue growth and adjusted EBITDA running close to our expectations, we’re leaving our fair value estimate unchanged. Insulet delivered U.S. Omnipod growth that was consistent with our estimates, and outperformance of international Omnipod revenue growth was offset by weaker drug delivery growth. With Insulet poised to move into a soft launch of its Omnipod 5 in 2021, we’re holding steady on our projection for $1.09 billion in consolidated revenue this year, which puts us on the high end of management’s outlook for 16%-19% top-line growth. We remain confident in the firm’s narrow economic moat and see little in the way of competition that would hinder Insulet’s efforts to increase its user base.