Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 25, 2019 | |
Cover page. | ||
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, $0.01 Par Value Per Share | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PODD | |
Entity Registrant Name | INSULET CORPORATION | |
Entity File Number | 001-33462 | |
Entity Central Index Key | 0001145197 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 60,271,673 | |
Security Exchange Name | NASDAQ | |
City Area Code | 978 | |
Entity Interactive Data Current | Yes | |
Local Phone Number | 600-7000 | |
Entity Tax Identification Number | 04-3523891 | |
Entity Address, Address Line One | 100 Nagog Park | |
Entity Address, City or Town | Acton | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01720 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 119,867 | $ 113,906 |
Short-term investments | 189,881 | 175,040 |
Accounts receivable trade, less allowance for doubtful accounts of $4,098 and $3,610 | 66,958 | 63,294 |
Unbilled receivable | 11,781 | 13,378 |
Inventories | 85,109 | 71,414 |
Prepaid expenses and other current assets | 25,211 | 24,254 |
Total current assets | 498,807 | 461,286 |
Long-term investments | 62,677 | 140,784 |
Property and equipment, net | 334,025 | 258,379 |
Other intangible assets, net | 13,040 | 10,383 |
Goodwill | 39,739 | 39,646 |
Other assets | 29,435 | 18,266 |
Total assets | 977,723 | 928,744 |
Current Liabilities | ||
Accounts payable | 24,752 | 25,500 |
Accrued expenses and other current liabilities | 81,021 | 90,157 |
Total current liabilities | 105,773 | 115,657 |
Convertible debt, net of current portion | 607,351 | 591,978 |
Other liabilities | 14,819 | 9,010 |
Total liabilities | 727,943 | 716,645 |
Stockholders’ Equity | ||
Preferred stock, $.001 par value, 5,000,000 authorized; none issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 100,000,000 authorized; 60,149,926 and 59,188,758 issued and outstanding | 60 | 59 |
Additional paid-in capital | 930,383 | 898,559 |
Accumulated other comprehensive loss | (2,829) | (2,905) |
Accumulated deficit | (677,834) | (683,614) |
Total stockholders’ equity | 249,780 | 212,099 |
Total liabilities and stockholders’ equity | $ 977,723 | $ 928,744 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4,098 | $ 3,610 |
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) | 60,149,926 | 59,188,758 |
Common stock, outstanding (in shares) | 60,149,926 | 59,188,758 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 177,136 | $ 124,262 | $ 336,691 | $ 247,840 |
Cost of revenue | 60,718 | 42,190 | 113,577 | 89,953 |
Gross profit | 116,418 | 82,072 | 223,114 | 157,887 |
Operating expenses: | ||||
Research and development | 32,264 | 18,801 | 64,218 | 39,068 |
Sales and marketing | 47,401 | 36,575 | 89,017 | 69,624 |
General and administrative | 29,150 | 22,371 | 55,011 | 44,870 |
Total operating expenses | 108,815 | 77,747 | 208,246 | 153,562 |
Operating income | 7,603 | 4,325 | 14,868 | 4,325 |
Interest expense, net of portion capitalized | (7,642) | (7,290) | (14,257) | (15,208) |
Other income, net | 1,923 | 1,686 | 5,977 | 3,368 |
Income (loss) before income taxes | 1,884 | (1,279) | 6,588 | (7,515) |
Income tax expense | 482 | 412 | 808 | 745 |
Net income (loss) | $ 1,402 | $ (1,691) | $ 5,780 | $ (8,260) |
Net income (loss) per share: | ||||
Net income (loss) per share: basic (in dollars per share) | $ 0.02 | $ (0.03) | $ 0.10 | $ (0.14) |
Net income (loss) per shares: diluted (in dollars per share) | $ 0.02 | $ (0.03) | $ 0.09 | $ (0.14) |
Weighted average number of shares outstanding, basic (in shares) | 59,844,991 | 58,833,498 | 59,601,365 | 58,659,111 |
Weighted average number of shares outstanding, diluted (in shares) | 61,486,325 | 58,833,498 | 61,332,451 | 58,659,111 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,402 | $ (1,691) | $ 5,780 | $ (8,260) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment, net of tax | (359) | (741) | (1,174) | (1,059) |
Unrealized gain (loss) on available-for-sale debt securities, net of tax | 615 | (109) | 1,250 | (834) |
Total other comprehensive income (loss), net of tax | 256 | (850) | 76 | (1,893) |
Total comprehensive income (loss) | $ 1,658 | $ (2,541) | $ 5,856 | $ (10,153) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 58,319,348 | ||||
Beginning balance at Dec. 31, 2017 | $ 158,516 | $ 58 | $ 866,206 | $ (707,255) | $ (493) |
Exercise of options to purchase common stock (in shares) | 308,369 | ||||
Exercise of options to purchase common stock | 9,741 | 9,741 | |||
Issuance for employee stock purchase plan (in shares) | 24,643 | ||||
Issuance for employee stock purchase plan | 1,481 | 1,481 | |||
Stock-based compensation expense | 15,117 | 15,117 | |||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 323,035 | ||||
Restricted stock units vested, net of shares withheld for taxes | (12,691) | $ 1 | (12,692) | ||
Debt retirement | (3,212) | (3,212) | |||
Net income (loss) | (8,260) | (8,260) | |||
Other comprehensive income (loss) | (1,893) | (1,893) | |||
Ending balance (in shares) at Jun. 30, 2018 | 58,975,395 | ||||
Ending balance at Jun. 30, 2018 | 179,148 | $ 59 | 876,641 | (695,166) | (2,386) |
Beginning balance (in shares) at Mar. 31, 2018 | 58,723,242 | ||||
Beginning balance at Mar. 31, 2018 | 170,568 | $ 59 | 865,520 | (693,475) | (1,536) |
Exercise of options to purchase common stock (in shares) | 194,327 | ||||
Exercise of options to purchase common stock | 6,780 | 6,780 | |||
Issuance for employee stock purchase plan (in shares) | 24,643 | ||||
Issuance for employee stock purchase plan | 1,481 | 1,481 | |||
Stock-based compensation expense | 6,936 | 6,936 | |||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 33,183 | ||||
Restricted stock units vested, net of shares withheld for taxes | (876) | (876) | |||
Debt retirement | (3,200) | (3,200) | |||
Net income (loss) | (1,691) | (1,691) | |||
Other comprehensive income (loss) | (850) | (850) | |||
Ending balance (in shares) at Jun. 30, 2018 | 58,975,395 | ||||
Ending balance at Jun. 30, 2018 | $ 179,148 | $ 59 | 876,641 | (695,166) | (2,386) |
Beginning balance (in shares) at Dec. 31, 2018 | 59,188,758 | 59,188,758 | |||
Beginning balance at Dec. 31, 2018 | $ 212,099 | $ 59 | 898,559 | (683,614) | (2,905) |
Exercise of options to purchase common stock (in shares) | 721,041 | 716,687 | |||
Exercise of options to purchase common stock | $ 23,660 | $ 1 | 23,659 | ||
Issuance for employee stock purchase plan (in shares) | 27,613 | ||||
Issuance for employee stock purchase plan | 2,030 | 2,030 | |||
Stock-based compensation expense | 14,078 | 14,078 | |||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 216,868 | ||||
Restricted stock units vested, net of shares withheld for taxes | (7,943) | (7,943) | |||
Net income (loss) | 5,780 | 5,780 | |||
Other comprehensive income (loss) | $ 76 | 76 | |||
Ending balance (in shares) at Jun. 30, 2019 | 60,149,926 | 60,149,926 | |||
Ending balance at Jun. 30, 2019 | $ 249,780 | $ 60 | 930,383 | (677,834) | (2,829) |
Beginning balance (in shares) at Mar. 31, 2019 | 59,638,439 | ||||
Beginning balance at Mar. 31, 2019 | 223,630 | $ 60 | 905,891 | (679,236) | (3,085) |
Exercise of options to purchase common stock (in shares) | 447,214 | ||||
Exercise of options to purchase common stock | 14,599 | 14,599 | |||
Issuance for employee stock purchase plan (in shares) | 27,613 | ||||
Issuance for employee stock purchase plan | 2,030 | 2,030 | |||
Stock-based compensation expense | 8,294 | 8,294 | |||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 36,660 | ||||
Restricted stock units vested, net of shares withheld for taxes | (431) | (431) | |||
Net income (loss) | 1,402 | 1,402 | |||
Other comprehensive income (loss) | $ 256 | 256 | |||
Ending balance (in shares) at Jun. 30, 2019 | 60,149,926 | 60,149,926 | |||
Ending balance at Jun. 30, 2019 | $ 249,780 | $ 60 | $ 930,383 | $ (677,834) | $ (2,829) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 5,780 | $ (8,260) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 11,026 | 7,131 |
Non-cash interest expense | 15,372 | 14,427 |
Stock-based compensation expense | 14,078 | 15,117 |
Provision for bad debts | 1,969 | 1,586 |
Other | (589) | (130) |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled receivable | (5,406) | (7,217) |
Inventories | (14,005) | (7,959) |
Prepaid expenses and other assets | (3,076) | (4,823) |
Accounts payable, accrued expenses and other current liabilities | (3,749) | (17,873) |
Deferred revenue | 190 | (2,626) |
Other liabilities | (1,313) | 232 |
Net cash provided by (used in) operating activities | 20,277 | (10,395) |
Cash flows from investing activities | ||
Purchases of property, equipment | (91,949) | (87,730) |
Acquisition of intangible assets | (4,965) | (2,207) |
Purchases of investments | (39,065) | (117,940) |
Receipts from the maturity or sale of investments | 104,186 | 90,774 |
Net cash used in investing activities | (31,793) | (117,103) |
Cash flows from financing activities | ||
Repayment of convertible debt | 0 | (6,687) |
Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 25,690 | 11,206 |
Payments for taxes related to net share settlement of equity awards | (7,943) | (12,691) |
Net cash provided by (used in) financing activities | 17,747 | (8,172) |
Effect of exchange rate changes on cash | (270) | (661) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,961 | (136,331) |
Cash, cash equivalents and restricted cash at beginning of period | 113,906 | 272,577 |
Cash, cash equivalents and restricted cash at end of period | 119,867 | 136,246 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | $ 3,051 | $ 12,300 |
Nature of the Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business Insulet Corporation (“Insulet”) is primarily engaged in the development, manufacturing and sale of its proprietary Omnipod ® System, an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes. The Omnipod System consists of two product lines: the Omnipod Insulin Management System (“Omnipod”), which Insulet has been selling since 2005, and its next generation Omnipod DASH TM Insulin Management System (“Omnipod DASH” or “DASH”). Insulet began a full market release of Omnipod DASH in the United States at the end of the first quarter of 2019. Collectively, these products are referred to as the “Omnipod System”. In addition to using the Omnipod System for insulin delivery, Insulet also partners with global pharmaceutical and biotechnology companies to tailor the Omnipod System technology platform for the delivery of their drugs across other therapeutic areas. The majority of Insulet's drug delivery revenue currently consists of sales to Amgen supplying the Neulasta ® Onpro ® |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation The accompanying financial statements reflect the consolidated operations of Insulet and its subsidiaries (the “Company”). The unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of its significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue 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 three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 , or for any other subsequent interim period. The year-end balance sheet data was derived from audited consolidated financial statements. These consolidated financial statements do not include all of the annual disclosures required by U.S. 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, 2018 . Shipping and Handling Costs Shipping and handling costs are included in general and administrative expenses and were $2.3 million and $1.4 million for the three months ended June 30, 2019 and 2018 , respectively, and were $4.9 million and $2.5 million for the six months ended June 30, 2019 and 2018 , respectively. Reclassification of Prior Period Amounts Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation. Software license costs have been reallocated from general and administrative expenses to research and development and sales and marketing expenses based on license usage. These reclassifications have no effect on previously reported net income. Recently Adopted Accounting Standards Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 and its related amendments (collectively referred to as ASC 842), which amends the guidance in former ASC Topic 840, Leases. The new standard requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Company adopted ASC 842 on January 1, 2019 using the modified retrospective method, whereby the new guidance is applied prospectively as of the date of adoption and prior periods are not restated. The Company elected the practical expedients that permit the Company to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company also excludes leases with an expected term of less than one year from the application of ASC 842. Adoption of the lease standard had a material impact on the Company's consolidated balance sheet, which is disclosed in Note 11 . Effective January 1, 2019, the Company early adopted ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 requires certain costs to implement a cloud computing arrangement that is a service contract to be capitalized consistent with the rules applicable to internal-use software capitalization projects. The Company adopted this new guidance effective January 1, 2019, prospectively. The Company defers eligible costs related to the implementation of cloud computing arrangements within other current and non-current assets and amortizes such costs over the expected term of the hosting arrangement to the same income statement line as the associated cloud operating expenses. Adoption of this standard resulted in the Company capitalizing $0.7 million and $2.0 million of cloud computing implementation costs for the three and six months ended June 30, 2019 , respectively. |
Revenue and Contract Acquisitio
Revenue and Contract Acquisition Costs | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Acquisition Costs | Revenue and Contract Acquisition Costs The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 U.S. Omnipod $ 98,074 $ 78,047 $ 184,177 $ 148,319 International Omnipod 62,736 28,509 119,624 66,913 Total Diabetes Revenue 160,810 106,556 303,801 215,232 Drug Delivery 16,326 17,706 32,890 32,608 Total $ 177,136 $ 124,262 $ 336,691 $ 247,840 Revenue for customers comprising more than 10% of total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amgen, Inc. * 14% 10% 13% Ypsomed * * * 17% Cardinal Health Inc. and affiliates 12% 13% 11% 12% * Represents less than 10% of consolidated revenue. Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown: As of (in thousands) June 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 1,374 $ 1,184 Other liabilities 986 931 Total deferred revenue $ 2,360 $ 2,115 Revenue recognized during the three and six months ended June 30, 2019 included in deferred revenue at the beginning of 2019 was $0.2 million and $1.1 million , respectively. Revenue recognized during the three and six months ended June 30, 2018 included in deferred revenue at the beginning of 2018 was $ 1.1 million and $2.4 million , respectively. No revenue was recognized during the three and six months ended June 30, 2019 and 2018 from performance obligations satisfied or partially satisfied in previous periods. Contract acquisition costs, representing capitalized commissions costs related to new patient starts, net of amortization, were included in the following consolidated balance sheet accounts in the amounts shown: As of (in thousands) June 30, 2019 December 31, 2018 Prepaid expenses and other current assets $ 8,452 $ 7,277 Other assets 18,183 15,988 Total capitalized contract acquisition costs, net $ 26,635 $ 23,265 The Company recognized $2.1 million and $4.1 million of amortization of capitalized contract acquisition costs during the three and six months ended June 30, 2019 , respectively. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Cash and Cash Equivalents Included in the Company's cash and cash equivalents are restricted cash amounts set aside for collateral on outstanding letters of credit totaling $2.7 million at both June 30, 2019 and December 31, 2018 . Marketable Securities The Company's short-term and long-term investments in debt securities had maturity dates that range from 8 days to 23 months as of June 30, 2019 . The Company’s investment portfolio included approximately 40 available-for-sale debt securities that had insignificant unrealized loss positions as of June 30, 2019 and December 31, 2018 . The Company's investments had insignificant realized gains or losses for both the three and six months ended June 30, 2019 and June 30, 2018. The Company uses the following fair value hierarchy to measure the fair value of assets and liabilities: Level 1 — quoted prices in active markets for identical assets or liabilities; Level 2 — observable inputs other than quoted prices in active markets for identical assets or liabilities; Level 3 — unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions. The Company had no Level 3 assets or liabilities as of June 30, 2019 and December 31, 2018 . The following table provides amortized cost, gross unrealized gains and losses, fair value and the level in the fair value hierarchy for the Company's investments as of June 30, 2019 and December 31, 2018: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Level 1 Level 2 June 30, 2019 Money market mutual funds $ 50,427 $ — $ — $ 50,427 $ 45,439 $ 4,988 Total cash equivalents $ 50,427 $ — $ — $ 50,427 $ 45,439 $ 4,988 U.S. government and agency bonds $ 103,776 $ 69 $ (67 ) $ 103,778 $ 69,779 $ 33,999 Corporate bonds 76,256 162 (13 ) 76,405 — 76,405 Certificates of deposit 9,688 13 (3 ) 9,698 — 9,698 Total short-term investments $ 189,720 $ 244 $ (83 ) $ 189,881 $ 69,779 $ 120,102 U.S. government and agency bonds $ 57,647 $ 294 $ (3 ) $ 57,938 $ 29,915 $ 28,023 Corporate bonds 814 44 (40 ) 818 — 818 Certificates of deposit 3,904 17 — 3,921 — 3,921 Total long-term investments $ 62,365 $ 355 $ (43 ) $ 62,677 $ 29,915 $ 32,762 December 31, 2018 Money market mutual funds $ 47,199 $ — $ — $ 47,199 $ 47,199 $ — Total cash equivalents $ 47,199 $ — $ — $ 47,199 $ 47,199 $ — U.S. government and agency bonds $ 112,995 $ — $ (486 ) $ 112,509 $ 69,605 $ 42,904 Corporate bonds 56,235 — (210 ) 56,025 — 56,025 Certificates of deposit 6,506 — — 6,506 — 6,506 Total short-term investments $ 175,736 $ — $ (696 ) $ 175,040 $ 69,605 $ 105,435 U.S. government and agency bonds $ 90,458 $ 99 $ (155 ) $ 90,402 $ 64,086 $ 26,316 Corporate bonds 46,743 43 (68 ) 46,718 — 46,718 Certificates of deposit 3,664 — — 3,664 — 3,664 Total long-term investments $ 140,865 $ 142 $ (223 ) $ 140,784 $ 64,086 $ 76,698 |
Convertible Debt, Net
Convertible Debt, Net | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Debt, Net | Convertible Debt, Net The Company had outstanding convertible debt and related debt issuance costs on its consolidated balance sheet as follows: As of (in thousands) June 30, 2019 December 31, 2018 1.25% Convertible Senior Notes, due September 2021 $ 344,992 $ 344,992 1.375% Convertible Senior Notes, due November 2024 402,500 402,500 Unamortized debt discount (129,616 ) (143,616 ) Debt issuance costs (10,525 ) (11,898 ) Total convertible debt, net $ 607,351 $ 591,978 The carrying amount and the estimated fair value of the Company's convertible debt, which is based on the Level 2 quoted market prices as of June 30, 2019 and December 31, 2018 were as follows: As of June 30, 2019 December 31, 2018 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 1.25% Convertible Senior Notes, due September 2021 $ 308,574 $ 693,455 $ 301,006 $ 483,851 1.375% Convertible Senior Notes, due November 2024 298,777 512,797 290,972 426,026 Total $ 607,351 $ 1,206,252 $ 591,978 $ 909,877 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Potential Common Shares Excluded From Computation Of Diluted Net Loss Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, excluding unvested restricted common shares. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding and, when dilutive, potential common share equivalents from outstanding stock options and restricted stock units (using the treasury-stock method), and potential common shares from the Company's convertible debt (using the if-converted method). The table below sets forth the components used in the computation of basic and diluted net income (loss) per share for the three and six months ended June 30, 2019 . Because the Company reported a net loss for the three and six months ended June 30, 2018 , all potential dilutive common shares have been excluded from the computation of the diluted net loss per share for three and six months ended June 30, 2018 , as the effect would have been anti-dilutive. June 30, 2019 (in thousands, except share and per share data) Three Months Ended Six Months Ended Numerator: Net income $ 1,402 $ 5,780 Denominator: Basic weighted average common shares outstanding 59,844,991 59,601,365 Effect of dilutive securities Stock options 1,479,713 1,513,886 Restricted stock units 161,621 217,200 Convertible debt — — Diluted shares 61,486,325 61,332,451 Net income per share: Basic $ 0.02 $ 0.10 Diluted $ 0.02 $ 0.09 For the three and six months ended June 30, 2019 , certain potential outstanding shares from stock options, restricted stock units and convertible debt were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain performance-based restricted stock units were excluded from the computation of diluted net income per share because the underlying performance conditions for such restricted stock units had not yet been met. The number of potential common share equivalents excluded from the computation of diluted net income (loss) per share for the three and six months ended June 30, 2019 and 2018 are as follows: June 30, 2019 June 30, 2018 Three Months Ended Six Months Ended Three and Six Months Ended 1.25% Convertible Senior Notes 5,910,954 5,910,954 5,910,954 1.375% Convertible Senior Notes 4,319,429 4,319,429 4,319,429 Unvested restricted stock units 426,550 421,776 914,710 Stock options 181,132 231,289 3,199,238 Total 10,838,065 10,883,448 14,344,331 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories At the end of each period, inventories were comprised of the following: As of (in thousands) June 30, 2019 December 31, 2018 Raw materials $ 17,960 $ 10,347 Work-in-process 26,979 30,222 Finished goods 40,170 30,845 Total inventories $ 85,109 $ 71,414 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | oodwill and Other Intangible Assets, Net The changes in the carrying amounts of goodwill for the six months ended June 30, 2019 were as follows: (in thousands) Goodwill at December 31, 2018 $ 39,646 Foreign currency translation 93 Goodwill at June 30, 2019 $ 39,739 The gross carrying amount, accumulated amortization and net book value of intangible assets at the end of each period were as follows: As of June 30, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer and contractual relationships $ 9,850 $ (2,326 ) $ 7,524 $ 6,109 $ (1,880 ) $ 4,229 Internal-use software 10,581 (5,940 ) 4,641 11,262 (5,108 ) 6,154 Intellectual property 875 — 875 — — — Total $ 21,306 $ (8,266 ) $ 13,040 $ 17,371 $ (6,988 ) $ 10,383 Amortization expense for intangible assets was $0.6 million and $0.4 million for the three months ended June 30, 2019 and 2018 , respectively. Amortization expense for intangible assets was $1.2 million and $0.8 million for the six months ended June 30, 2019 and 2018 , respectively. Estimated future amortization expense by year is as follows: Years Ending December 31, (in thousands) 2019 (remaining) $ 1,405 2020 2,547 2021 2,043 2022 1,460 2023 1,021 Thereafter 4,564 Total $ 13,040 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | ccrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities were as follows: As of (in thousands) June 30, 2019 December 31, 2018 Employee compensation and related costs $ 34,348 $ 37,822 Professional and consulting services 12,856 14,925 Supplier purchases 3,089 7,742 Value added taxes payable 3,527 8,463 Other 27,201 21,205 Accrued expenses and other current liabilities $ 81,021 $ 90,157 Product Warranty Costs The Company provides a four -year warranty on Personal Diabetes Managers (“PDMs”) 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 at the time the product is shipped based on historical experience and the estimated cost to service the claims. 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 goods sold in the consolidated statements of operations. Cost to service the claims reflects the current product cost. A reconciliation of the changes in the Company’s product warranty liability is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Product warranty liability at beginning of period $ 6,283 $ 5,386 $ 6,379 $ 5,337 Warranty expense 3,147 1,529 5,366 3,501 Warranty claims settled (2,791 ) (1,412 ) (5,106 ) (3,335 ) Product warranty liability at end of period $ 6,639 $ 5,503 $ 6,639 $ 5,503 Product warranty liability was included in the following consolidated balance sheet accounts in the amounts shown: As of (in thousands) June 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 2,906 $ 2,701 Other liabilities 3,733 3,678 Total $ 6,639 $ 6,379 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ommitments and Contingencies Legal Proceedings Between May 5, 2015 and June 16, 2015, three class action lawsuits were filed by shareholders in the U.S. District Court, for the District of Massachusetts, against the Company and certain individual and former executives of the Company. Two suits subsequently were voluntarily dismissed. Arkansas Teacher Retirement System v. Insulet, et al., 1:15-cv-12345, (“ATRS”) alleged that the Company (and certain executives) committed violations of Sections 10(b) and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 by making allegedly false and misleading statements about the Company’s business, operations, and prospects. On February 8, 2018, the parties executed a binding stipulation of settlement, under which all claims were released and a payment was made into an escrow account for the plaintiffs and the class they purport to represent. On August 6, 2018, the Court issued an order approving the settlement. The Company had previously accrued fees and expenses in connection with this matter for the amount of the final settlement liability that was not covered by insurance, the amount of which was not material to the Company's consolidated financial statements. In addition, on April 26, 2017, a derivative action (Walker v. DeSisto, et al., 1:17-cv-10738) (“Walker”) was filed, and on October 13, 2017, a second derivative action (Carnazza v. DeSisto, et al., 1:17-cv-11977) (“Carnazza”) was filed, both on behalf of the Company, each by a shareholder in the U.S. District Court for the District of Massachusetts against the Company (as a nominal defendant) and certain individual current and former officers and directors of the Company. The allegations in the actions are substantially similar to those alleged in the securities class action. The actions seek, among other things, damages, disgorgement of certain types of compensation or profits, and attorneys’ fees and costs. On July 11, 2018, the parties executed a binding stipulation of settlement, under which all claims were released and a payment of attorneys’ fees and reimbursement of expenses will be paid to plaintiffs’ counsel, subject to the Court’s approval. On July 13, 2018, the plaintiffs filed a motion for preliminary approval of the settlement, which is pending. The Company expects that such fees and expenses payable to plaintiff's counsel will be covered by the Company's insurance. 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. Although the Company is unable to quantify the exact financial impact of any of these matters, the Company believes that none of these currently pending matters will have an outcome material to its financial condition or business. Fees To Former European Distributor Following the expiration of an agreement with a former European distributor on June 30, 2018, the Company was required to pay a quarterly per-unit fee for Omnipod sales to certain customers of the former European distributor for a one-year period through June 30, 2019. The Company recognized a liability and an associated intangible asset for this fee as qualifying sales occurred. The methodology applicable for determining the total fee under under the distribution agreement is subject to an active arbitration proceeding in Switzerland. The final amount of the fee could vary significantly depending on the number of customers who count for purposes of calculating the fee under the terms of the agreement. The Company estimates that the final aggregate fee is in the range of $5 million to $55 million . As of June 30, 2019, the Company had recognized $7.8 million |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases As discussed in Note 2, ASC 842 requires lessees to recognize ROU assets and lease liabilities on the balance sheet for those leases classified as operating leases. In accordance with ASC 842, the Company determines if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses its incremental borrowing rate in determining the present value of future payments since most of its leases do not provide an implicit interest rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. On January 1, 2019, upon the adoption of ASC 842, the Company recorded ROU assets of $8.8 million and operating lease liabilities of $10.8 million on its consolidated balance sheet. The difference between the approximate value of the ROU assets and the approximate value of the lease obligations is primarily attributable to a former cease-use liability. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company leases approximately 100,000 square feet of laboratory and office space in Billerica, Massachusetts. The lease expires in November 2022 and contains escalating payments over its life. Additionally, the Company leases approximately 29,000 square feet of warehousing space in Billerica, Massachusetts under a lease expiring in September 2019. The Company also leases international and certain other U.S. facilities. These operating leases expire at various dates through 2026, some of which may include options to extend the leases for up to 5 years , and some of which may include options to terminate the leases at certain times within the lease term. In the normal course of business, it is expected that these leases will be renewed. The Company's total operating lease cost, which is recorded in general and administrative expenses in the consolidated statements of operations, was $0.9 million and $1.8 million for the three and six months ended June 30, 2019 , respectively. Cash paid for amounts included in the measurement of lease liabilities was $0.8 million and $1.6 million for three and six months ended June 30, 2019 , respectively. The future minimum undiscounted lease payments under operating leases as of June 30, 2019 are as follows: Years Ending December 31, (in thousands) 2019 (remaining) $ 1,659 2020 2,955 2021 2,899 2022 2,575 2023 269 Thereafter 561 Total future minimum lease payments 10,918 Less: imputed interest (1,089 ) Present value of future minimum lease payments $ 9,829 As of June 30, 2019, ROU assets and operating lease liabilities were included in the following consolidated balance sheet accounts in the amounts shown: As of June 30, 2019 (in thousands) ROU asset: Other assets $ 8,020 Operating lease liabilities: Accrued expenses and other current liabilities $ 2,333 Other liabilities 7,496 Total $ 9,829 As of June 30, 2019 , the weighted average remaining lease term for operating leases was 3.7 years and the weighted-average discount rate used to determine the operating lease liability was 6.7% . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | tock-Based Compensation The following table reflects the Company's stock-based compensation expense related to share-based awards for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, Unamortized Expense Weighted Average Remaining Expense Period (Years) ($ in thousands) 2019 2018 2019 2018 At June 30, 2019 Stock options $ 1,583 $ 2,272 $ 3,223 $ 4,630 $ 10,906 2.7 Restricted stock units 6,393 4,371 10,137 9,899 39,369 2.2 Employee stock purchase plan 318 294 718 588 739 0.4 Total $ 8,294 $ 6,937 $ 14,078 $ 15,117 $ 51,014 The following summarizes stock option activity for the six months ended June 30, 2019 : Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Term (years) Outstanding at December 31, 2018 3,077,624 $ 39.16 Granted 125,640 93.16 Exercised (721,041 ) 33.42 $ 49,242 Forfeited / Expired (111,604 ) 48.06 Outstanding at June 30, 2019 2,370,619 $ 43.35 $ 180,231 5.3 Vested, June 30, 2019 1,839,054 $ 37.50 $ 150,573 4.5 Vested or expected to vest, June 30, 2019 (1) 2,309,525 $ 177,471 (1) Represents total outstanding stock options as of June 30, 2019 , adjusted for estimated forfeitures. The following table summarizes activity for the Company’s restricted stock units during the six months ended June 30, 2019 : Number of Shares Weighted Average Fair Value Outstanding at December 31, 2018 752,207 $ 55.02 Granted 311,950 93.79 Vested (307,217 ) 45.36 Forfeited (51,645 ) 63.77 Outstanding at June 30, 2019 705,295 $ 75.73 |
Interest Expense
Interest Expense | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Interest Expense | Interest Expense Interest expense, net of portion capitalized was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Contractual coupon interest $ 2,462 $ 2,462 $ 4,924 $ 4,942 Accretion of debt discount 7,057 6,616 14,000 13,138 Amortization of debt issuance costs 692 648 1,372 1,289 Capitalized interest (2,569 ) (2,436 ) (6,039 ) (4,161 ) Interest expense, net of portion capitalized $ 7,642 $ 7,290 $ 14,257 $ 15,208 Interest expense related to convertible debt for the three and six months ended June 30, 2019 was as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) 1.375% 1.25% 2.0% Total 1.375% 1.25% 2.0% Total Contractual coupon interest $ 1,384 $ 1,078 $ — $ 2,462 $ 2,768 $ 2,156 $ — $ 4,924 Amortization of debt discount and issuance costs 3,924 3,825 — 7,749 7,803 7,569 — 15,372 Total $ 5,308 $ 4,903 $ — $ 10,211 $ 10,571 $ 9,725 $ — $ 20,296 Interest expense related to convertible debt for the three and six months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands) 1.375% 1.25% 2.0% Total 1.375% 1.25% 2.0% Total Contractual coupon interest $ 1,383 $ 1,078 $ 1 $ 2,462 $ 2,767 $ 2,156 $ 19 $ 4,942 Amortization of debt discount and issuance costs 3,654 3,589 21 7,264 7,265 7,102 60 14,427 Total $ 5,037 $ 4,667 $ 22 $ 9,726 $ 10,032 $ 9,258 $ 79 $ 19,369 |
Income Tax Expense
Income Tax Expense | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income Tax Expense The Company's effective tax rate for the three and six months ended June 30, 2019 was a positive rate of 25.6% and 12.3% , compared with a negative rate of 32.2% and 9.9% for the same periods of 2018. The negative effective tax rate in the 2018 periods resulted from recording state income and foreign taxes in jurisdictions with taxable income, mainly the United Kingdom and Canada. Income tax benefits have not been recorded for losses in jurisdictions where valuation allowances exist against net deferred tax assets; primarily in the United States. As of June 30, 2019 and December 31, 2018, the Company maintained a full valuation allowance against its U.S. net deferred tax assets based on the determination that it is not more likely than not these future benefits will be realized before expiration. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements reflect the consolidated operations of Insulet and its subsidiaries (the “Company”). The unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of its significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue 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 three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 , or for any other subsequent interim period. The year-end balance sheet data was derived from audited consolidated financial statements. These consolidated financial statements do not include all of the annual disclosures required by U.S. 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, 2018 . |
Reclassification of Prior Period Amounts | Reclassification of Prior Period Amounts |
Recently Adopted and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Standards Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 and its related amendments (collectively referred to as ASC 842), which amends the guidance in former ASC Topic 840, Leases. The new standard requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Company adopted ASC 842 on January 1, 2019 using the modified retrospective method, whereby the new guidance is applied prospectively as of the date of adoption and prior periods are not restated. The Company elected the practical expedients that permit the Company to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The Company also excludes leases with an expected term of less than one year from the application of ASC 842. Adoption of the lease standard had a material impact on the Company's consolidated balance sheet, which is disclosed in Note 11 . Effective January 1, 2019, the Company early adopted ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 requires certain costs to implement a cloud computing arrangement that is a service contract to be capitalized consistent with the rules applicable to internal-use software capitalization projects. The Company adopted this new guidance effective January 1, 2019, prospectively. The Company defers eligible costs related to the implementation of cloud computing arrangements within other current and non-current assets and amortizes such costs over the expected term of the hosting arrangement to the same income statement line as the associated cloud operating expenses. Adoption of this standard resulted in the Company capitalizing $0.7 million and $2.0 million of cloud computing implementation costs for the three and six months ended June 30, 2019 , respectively. |
Product Warranty Costs | Product Warranty Costs The Company provides a four -year warranty on Personal Diabetes Managers (“PDMs”) sold in the United States and Europe and a five |
Revenue and Contract Acquisit_2
Revenue and Contract Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 U.S. Omnipod $ 98,074 $ 78,047 $ 184,177 $ 148,319 International Omnipod 62,736 28,509 119,624 66,913 Total Diabetes Revenue 160,810 106,556 303,801 215,232 Drug Delivery 16,326 17,706 32,890 32,608 Total $ 177,136 $ 124,262 $ 336,691 $ 247,840 |
Schedule of revenue from major customers | Revenue for customers comprising more than 10% of total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amgen, Inc. * 14% 10% 13% Ypsomed * * * 17% Cardinal Health Inc. and affiliates 12% 13% 11% 12% * Represents less than 10% of consolidated revenue. |
Summary of Deferred Revenue | Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown: As of (in thousands) June 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 1,374 $ 1,184 Other liabilities 986 931 Total deferred revenue $ 2,360 $ 2,115 |
Summary of Contract Acquisition Costs | Contract acquisition costs, representing capitalized commissions costs related to new patient starts, net of amortization, were included in the following consolidated balance sheet accounts in the amounts shown: As of (in thousands) June 30, 2019 December 31, 2018 Prepaid expenses and other current assets $ 8,452 $ 7,277 Other assets 18,183 15,988 Total capitalized contract acquisition costs, net $ 26,635 $ 23,265 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule investments | The following table provides amortized cost, gross unrealized gains and losses, fair value and the level in the fair value hierarchy for the Company's investments as of June 30, 2019 and December 31, 2018: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Level 1 Level 2 June 30, 2019 Money market mutual funds $ 50,427 $ — $ — $ 50,427 $ 45,439 $ 4,988 Total cash equivalents $ 50,427 $ — $ — $ 50,427 $ 45,439 $ 4,988 U.S. government and agency bonds $ 103,776 $ 69 $ (67 ) $ 103,778 $ 69,779 $ 33,999 Corporate bonds 76,256 162 (13 ) 76,405 — 76,405 Certificates of deposit 9,688 13 (3 ) 9,698 — 9,698 Total short-term investments $ 189,720 $ 244 $ (83 ) $ 189,881 $ 69,779 $ 120,102 U.S. government and agency bonds $ 57,647 $ 294 $ (3 ) $ 57,938 $ 29,915 $ 28,023 Corporate bonds 814 44 (40 ) 818 — 818 Certificates of deposit 3,904 17 — 3,921 — 3,921 Total long-term investments $ 62,365 $ 355 $ (43 ) $ 62,677 $ 29,915 $ 32,762 December 31, 2018 Money market mutual funds $ 47,199 $ — $ — $ 47,199 $ 47,199 $ — Total cash equivalents $ 47,199 $ — $ — $ 47,199 $ 47,199 $ — U.S. government and agency bonds $ 112,995 $ — $ (486 ) $ 112,509 $ 69,605 $ 42,904 Corporate bonds 56,235 — (210 ) 56,025 — 56,025 Certificates of deposit 6,506 — — 6,506 — 6,506 Total short-term investments $ 175,736 $ — $ (696 ) $ 175,040 $ 69,605 $ 105,435 U.S. government and agency bonds $ 90,458 $ 99 $ (155 ) $ 90,402 $ 64,086 $ 26,316 Corporate bonds 46,743 43 (68 ) 46,718 — 46,718 Certificates of deposit 3,664 — — 3,664 — 3,664 Total long-term investments $ 140,865 $ 142 $ (223 ) $ 140,784 $ 64,086 $ 76,698 |
Convertible Debt, Net (Tables)
Convertible Debt, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding Convertible Debt and Related Deferred Financing Costs | The Company had outstanding convertible debt and related debt issuance costs on its consolidated balance sheet as follows: As of (in thousands) June 30, 2019 December 31, 2018 1.25% Convertible Senior Notes, due September 2021 $ 344,992 $ 344,992 1.375% Convertible Senior Notes, due November 2024 402,500 402,500 Unamortized debt discount (129,616 ) (143,616 ) Debt issuance costs (10,525 ) (11,898 ) Total convertible debt, net $ 607,351 $ 591,978 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The carrying amount and the estimated fair value of the Company's convertible debt, which is based on the Level 2 quoted market prices as of June 30, 2019 and December 31, 2018 were as follows: As of June 30, 2019 December 31, 2018 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 1.25% Convertible Senior Notes, due September 2021 $ 308,574 $ 693,455 $ 301,006 $ 483,851 1.375% Convertible Senior Notes, due November 2024 298,777 512,797 290,972 426,026 Total $ 607,351 $ 1,206,252 $ 591,978 $ 909,877 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Potential Common Shares Excluded From Computation Of Diluted Net Loss Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below sets forth the components used in the computation of basic and diluted net income (loss) per share for the three and six months ended June 30, 2019 . Because the Company reported a net loss for the three and six months ended June 30, 2018 , all potential dilutive common shares have been excluded from the computation of the diluted net loss per share for three and six months ended June 30, 2018 , as the effect would have been anti-dilutive. June 30, 2019 (in thousands, except share and per share data) Three Months Ended Six Months Ended Numerator: Net income $ 1,402 $ 5,780 Denominator: Basic weighted average common shares outstanding 59,844,991 59,601,365 Effect of dilutive securities Stock options 1,479,713 1,513,886 Restricted stock units 161,621 217,200 Convertible debt — — Diluted shares 61,486,325 61,332,451 Net income per share: Basic $ 0.02 $ 0.10 Diluted $ 0.02 $ 0.09 |
Potential Common Shares Excluded from Computation of Diluted Net Loss per Share | The number of potential common share equivalents excluded from the computation of diluted net income (loss) per share for the three and six months ended June 30, 2019 and 2018 are as follows: June 30, 2019 June 30, 2018 Three Months Ended Six Months Ended Three and Six Months Ended 1.25% Convertible Senior Notes 5,910,954 5,910,954 5,910,954 1.375% Convertible Senior Notes 4,319,429 4,319,429 4,319,429 Unvested restricted stock units 426,550 421,776 914,710 Stock options 181,132 231,289 3,199,238 Total 10,838,065 10,883,448 14,344,331 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | At the end of each period, inventories were comprised of the following: As of (in thousands) June 30, 2019 December 31, 2018 Raw materials $ 17,960 $ 10,347 Work-in-process 26,979 30,222 Finished goods 40,170 30,845 Total inventories $ 85,109 $ 71,414 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill for the six months ended June 30, 2019 were as follows: (in thousands) Goodwill at December 31, 2018 $ 39,646 Foreign currency translation 93 Goodwill at June 30, 2019 $ 39,739 |
Components of Other Intangible Assets | The gross carrying amount, accumulated amortization and net book value of intangible assets at the end of each period were as follows: As of June 30, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer and contractual relationships $ 9,850 $ (2,326 ) $ 7,524 $ 6,109 $ (1,880 ) $ 4,229 Internal-use software 10,581 (5,940 ) 4,641 11,262 (5,108 ) 6,154 Intellectual property 875 — 875 — — — Total $ 21,306 $ (8,266 ) $ 13,040 $ 17,371 $ (6,988 ) $ 10,383 |
Amortization Expense Expected for Next Five Years | Estimated future amortization expense by year is as follows: Years Ending December 31, (in thousands) 2019 (remaining) $ 1,405 2020 2,547 2021 2,043 2022 1,460 2023 1,021 Thereafter 4,564 Total $ 13,040 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Components of accrued expenses and other current liabilities | The components of accrued expenses and other current liabilities were as follows: As of (in thousands) June 30, 2019 December 31, 2018 Employee compensation and related costs $ 34,348 $ 37,822 Professional and consulting services 12,856 14,925 Supplier purchases 3,089 7,742 Value added taxes payable 3,527 8,463 Other 27,201 21,205 Accrued expenses and other current liabilities $ 81,021 $ 90,157 |
Reconciliation of Changes in Product Warranty Liability | A reconciliation of the changes in the Company’s product warranty liability is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Product warranty liability at beginning of period $ 6,283 $ 5,386 $ 6,379 $ 5,337 Warranty expense 3,147 1,529 5,366 3,501 Warranty claims settled (2,791 ) (1,412 ) (5,106 ) (3,335 ) Product warranty liability at end of period $ 6,639 $ 5,503 $ 6,639 $ 5,503 Product warranty liability was included in the following consolidated balance sheet accounts in the amounts shown: As of (in thousands) June 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 2,906 $ 2,701 Other liabilities 3,733 3,678 Total $ 6,639 $ 6,379 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Future Minimum Undiscounted Lease Payments | The future minimum undiscounted lease payments under operating leases as of June 30, 2019 are as follows: Years Ending December 31, (in thousands) 2019 (remaining) $ 1,659 2020 2,955 2021 2,899 2022 2,575 2023 269 Thereafter 561 Total future minimum lease payments 10,918 Less: imputed interest (1,089 ) Present value of future minimum lease payments $ 9,829 |
Summary of ROU Assets and Operating Lease Liabilities | As of June 30, 2019, ROU assets and operating lease liabilities were included in the following consolidated balance sheet accounts in the amounts shown: As of June 30, 2019 (in thousands) ROU asset: Other assets $ 8,020 Operating lease liabilities: Accrued expenses and other current liabilities $ 2,333 Other liabilities 7,496 Total $ 9,829 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock option activity | The following table reflects the Company's stock-based compensation expense related to share-based awards for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, Unamortized Expense Weighted Average Remaining Expense Period (Years) ($ in thousands) 2019 2018 2019 2018 At June 30, 2019 Stock options $ 1,583 $ 2,272 $ 3,223 $ 4,630 $ 10,906 2.7 Restricted stock units 6,393 4,371 10,137 9,899 39,369 2.2 Employee stock purchase plan 318 294 718 588 739 0.4 Total $ 8,294 $ 6,937 $ 14,078 $ 15,117 $ 51,014 The following summarizes stock option activity for the six months ended June 30, 2019 : Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Term (years) Outstanding at December 31, 2018 3,077,624 $ 39.16 Granted 125,640 93.16 Exercised (721,041 ) 33.42 $ 49,242 Forfeited / Expired (111,604 ) 48.06 Outstanding at June 30, 2019 2,370,619 $ 43.35 $ 180,231 5.3 Vested, June 30, 2019 1,839,054 $ 37.50 $ 150,573 4.5 Vested or expected to vest, June 30, 2019 (1) 2,309,525 $ 177,471 (1) Represents total outstanding stock options as of June 30, 2019 , adjusted for estimated forfeitures. |
Summary of restricted stock units | The following table summarizes activity for the Company’s restricted stock units during the six months ended June 30, 2019 : Number of Shares Weighted Average Fair Value Outstanding at December 31, 2018 752,207 $ 55.02 Granted 311,950 93.79 Vested (307,217 ) 45.36 Forfeited (51,645 ) 63.77 Outstanding at June 30, 2019 705,295 $ 75.73 |
Interest Expense (Tables)
Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Interest and Other Expense | Interest expense, net of portion capitalized was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Contractual coupon interest $ 2,462 $ 2,462 $ 4,924 $ 4,942 Accretion of debt discount 7,057 6,616 14,000 13,138 Amortization of debt issuance costs 692 648 1,372 1,289 Capitalized interest (2,569 ) (2,436 ) (6,039 ) (4,161 ) Interest expense, net of portion capitalized $ 7,642 $ 7,290 $ 14,257 $ 15,208 Interest expense related to convertible debt for the three and six months ended June 30, 2019 was as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) 1.375% 1.25% 2.0% Total 1.375% 1.25% 2.0% Total Contractual coupon interest $ 1,384 $ 1,078 $ — $ 2,462 $ 2,768 $ 2,156 $ — $ 4,924 Amortization of debt discount and issuance costs 3,924 3,825 — 7,749 7,803 7,569 — 15,372 Total $ 5,308 $ 4,903 $ — $ 10,211 $ 10,571 $ 9,725 $ — $ 20,296 Interest expense related to convertible debt for the three and six months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands) 1.375% 1.25% 2.0% Total 1.375% 1.25% 2.0% Total Contractual coupon interest $ 1,383 $ 1,078 $ 1 $ 2,462 $ 2,767 $ 2,156 $ 19 $ 4,942 Amortization of debt discount and issuance costs 3,654 3,589 21 7,264 7,265 7,102 60 14,427 Total $ 5,037 $ 4,667 $ 22 $ 9,726 $ 10,032 $ 9,258 $ 79 $ 19,369 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Cost of revenue | $ 60,718 | $ 42,190 | $ 113,577 | $ 89,953 |
Shipping and Handling | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of revenue | 2,300 | $ 1,400 | 4,900 | $ 2,500 |
Accounting Standards Update 2018-15 | ||||
Significant Accounting Policies [Line Items] | ||||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized | $ 700 | $ 2,000 |
Revenue and Contract Acquisit_3
Revenue and Contract Acquisition Costs - Summary of Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 177,136 | $ 124,262 | $ 336,691 | $ 247,840 |
U.S. Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 98,074 | 78,047 | 184,177 | 148,319 |
International Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 62,736 | 28,509 | 119,624 | 66,913 |
Diabetes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 160,810 | 106,556 | 303,801 | 215,232 |
Drug Delivery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 16,326 | $ 17,706 | $ 32,890 | $ 32,608 |
Revenue and Contract Acquisit_4
Revenue and Contract Acquisition Costs - Summary of Revenue from Customers - Concentration Risk (Details) - Customer concentration risk - Sales revenue | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amgen, Inc. | ||||
Significant Accounting Policies [Line Items] | ||||
Total revenue, percentage | 14.00% | 10.00% | 13.00% | |
Ypsomed | ||||
Significant Accounting Policies [Line Items] | ||||
Total revenue, percentage | 17.00% | |||
Cardinal Health Inc. | ||||
Significant Accounting Policies [Line Items] | ||||
Total revenue, percentage | 12.00% | 13.00% | 11.00% | 12.00% |
Revenue and Contract Acquisit_5
Revenue and Contract Acquisition Costs - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accrued expenses and other current liabilities | $ 1,374 | $ 1,184 |
Other liabilities | 986 | 931 |
Total deferred revenue | $ 2,360 | $ 2,115 |
Revenue and Contract Acquisit_6
Revenue and Contract Acquisition Costs - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized | $ 200,000 | $ 1,100,000 | $ 1,100,000 | $ 2,400,000 |
Revenue recognized from performance obligations satisfied in previous periods | 0 | $ 0 | 0 | $ 0 |
Amortization of capitalized commission costs | $ 2,100,000 | $ 4,100,000 |
Revenue and Contract Acquisit_7
Revenue and Contract Acquisition Costs - Summary of Contract Acquisition Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses and other current assets | $ 8,452 | $ 7,277 |
Other assets | 18,183 | 15,988 |
Total capitalized contract acquisition costs, net | $ 26,635 | $ 23,265 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Restricted cash and cash equivalents | $ | $ 2.7 | $ 2.7 |
Number of positions | security | 40 | |
Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Derivative maturity date range | 8 days | |
Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Derivative maturity date range | 23 months |
Investments - Schedule of Asset
Investments - Schedule of Assets Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 50,427 | $ 47,199 |
Recurring fair value measurements: | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,427 | 47,199 |
Level 1 | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 45,439 | 47,199 |
Level 1 | Recurring fair value measurements: | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 45,439 | 47,199 |
Level 2 | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,988 | 0 |
Level 2 | Recurring fair value measurements: | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,988 | 0 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 189,720 | 175,736 |
Gross Unrealized Gains | 244 | 0 |
Gross Unrealized (Losses) | (83) | (696) |
Short-term investments | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 189,881 | 175,040 |
Short-term investments | Level 1 | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 69,779 | 69,605 |
Short-term investments | Level 1 | Recurring fair value measurements: | U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 69,779 | 69,605 |
Short-term investments | Level 1 | Recurring fair value measurements: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Short-term investments | Level 1 | Recurring fair value measurements: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Short-term investments | Level 2 | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 120,102 | 105,435 |
Short-term investments | Level 2 | Recurring fair value measurements: | U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 33,999 | 42,904 |
Short-term investments | Level 2 | Recurring fair value measurements: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 76,405 | 56,025 |
Short-term investments | Level 2 | Recurring fair value measurements: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,698 | 6,506 |
Short-term investments | U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 103,776 | 112,995 |
Gross Unrealized Gains | 69 | 0 |
Gross Unrealized (Losses) | (67) | (486) |
Short-term investments | U.S. government and agency bonds | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 103,778 | 112,509 |
Short-term investments | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 76,256 | 56,235 |
Gross Unrealized Gains | 162 | 0 |
Gross Unrealized (Losses) | (13) | (210) |
Short-term investments | Corporate bonds | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 76,405 | 56,025 |
Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 9,688 | 6,506 |
Gross Unrealized Gains | 13 | 0 |
Gross Unrealized (Losses) | (3) | 0 |
Short-term investments | Certificates of deposit | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,698 | 6,506 |
Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 62,365 | 140,865 |
Gross Unrealized Gains | 355 | 142 |
Gross Unrealized (Losses) | (43) | (223) |
Long-term investments | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 62,677 | 140,784 |
Long-term investments | Level 1 | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,915 | 64,086 |
Long-term investments | Level 1 | Recurring fair value measurements: | U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,915 | 64,086 |
Long-term investments | Level 1 | Recurring fair value measurements: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Long-term investments | Level 1 | Recurring fair value measurements: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Long-term investments | Level 2 | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 32,762 | 76,698 |
Long-term investments | Level 2 | Recurring fair value measurements: | U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 28,023 | 26,316 |
Long-term investments | Level 2 | Recurring fair value measurements: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 818 | 46,718 |
Long-term investments | Level 2 | Recurring fair value measurements: | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,921 | 3,664 |
Long-term investments | U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 57,647 | 90,458 |
Gross Unrealized Gains | 294 | 99 |
Gross Unrealized (Losses) | (3) | (155) |
Long-term investments | U.S. government and agency bonds | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 57,938 | 90,402 |
Long-term investments | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 814 | 46,743 |
Gross Unrealized Gains | 44 | 43 |
Gross Unrealized (Losses) | (40) | (68) |
Long-term investments | Corporate bonds | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 818 | 46,718 |
Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 3,904 | 3,664 |
Gross Unrealized Gains | 17 | 0 |
Gross Unrealized (Losses) | 0 | 0 |
Long-term investments | Certificates of deposit | Recurring fair value measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,921 | $ 3,664 |
Convertible Debt, Net - Outstan
Convertible Debt, Net - Outstanding Convertible Debt and Related Deferred Financing Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized debt discount | $ (129,616) | $ (143,616) |
Debt issuance costs | (10,525) | (11,898) |
Total convertible debt, net | $ 607,351 | $ 591,978 |
1.25% Convertible Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 1.25% | 1.25% |
1.375% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 1.375% | 1.375% |
Convertible Debt | 1.25% Convertible Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of Senior Notes | $ 344,992 | $ 344,992 |
Convertible Debt | 1.375% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of Senior Notes | $ 402,500 | $ 402,500 |
Convertible Debt, Net Convertib
Convertible Debt, Net Convertible Debt, Net - Summary of Convertible Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
1.25% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, interest rate | 1.25% | 1.25% |
1.375% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, interest rate | 1.375% | 1.375% |
Level 2 | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument value | $ 607,351 | $ 591,978 |
Level 2 | Carrying Value | 1.25% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument value | 308,574 | 301,006 |
Level 2 | Carrying Value | 1.375% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument value | 298,777 | 290,972 |
Level 2 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument value | 1,206,252 | 909,877 |
Level 2 | Estimated Fair Value | 1.25% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument value | 693,455 | 483,851 |
Level 2 | Estimated Fair Value | 1.375% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument value | $ 512,797 | $ 426,026 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Earnings per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income (loss) | $ 1,402 | $ (1,691) | $ 5,780 | $ (8,260) |
Denominator: | ||||
Weighted average number of shares outstanding, basic (in shares) | 59,844,991 | 58,833,498 | 59,601,365 | 58,659,111 |
Effect of dilutive securities | ||||
Weighted average number of shares outstanding, diluted (in shares) | 61,486,325 | 58,833,498 | 61,332,451 | 58,659,111 |
Net income (loss) per share: | ||||
Net income (loss) per share: basic (in dollars per share) | $ 0.02 | $ (0.03) | $ 0.10 | $ (0.14) |
Net income (loss) per shares: diluted (in dollars per share) | $ 0.02 | $ (0.03) | $ 0.09 | $ (0.14) |
Stock options | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 1,479,713 | 1,513,886 | ||
Stock options | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 161,621 | 217,200 | ||
Convertible debt | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0 | 0 |
- Potential Common Shares Exclu
- Potential Common Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total dilutive common shares (in shares) | 10,838,065 | 8,433,377 | 10,883,448 | 14,344,331 |
1.375% Convertible Senior Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total dilutive common shares (in shares) | 4,319,429 | 4,319,429 | 4,319,429 | 4,319,429 |
1.25% Convertible Senior Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total dilutive common shares (in shares) | 5,910,954 | 5,910,954 | 5,910,954 | 5,910,954 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total dilutive common shares (in shares) | 426,550 | 914,710 | 421,776 | 914,710 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total dilutive common shares (in shares) | 181,132 | 3,199,238 | 231,289 | 3,199,238 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 17,960 | $ 10,347 |
Work-in-process | 26,979 | 30,222 |
Finished goods | 40,170 | 30,845 |
Total inventories | $ 85,109 | $ 71,414 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Summary of Changes in Carrying Amounts of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at December 31, 2018 | $ 39,646 |
Foreign currency translation | 93 |
Goodwill at June 30, 2019 | $ 39,739 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of other intangible assets | $ 0.6 | $ 0.4 | $ 1.2 | $ 0.8 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,306 | $ 17,371 |
Accumulated Amortization | (8,266) | (6,988) |
Net Book Value | 13,040 | 10,383 |
Customer and Contractual Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,850 | 6,109 |
Accumulated Amortization | (2,326) | (1,880) |
Net Book Value | 7,524 | 4,229 |
Internal-use software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,581 | 11,262 |
Accumulated Amortization | (5,940) | (5,108) |
Net Book Value | 4,641 | 6,154 |
Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 875 | 0 |
Accumulated Amortization | 0 | 0 |
Net Book Value | $ 875 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Amortization Expense Expected for Next Five Years (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Expected Amortization Expense [Line Items] | |
2019 (remaining) | $ 1,405 |
2020 | 2,547 |
2021 | 2,043 |
2022 | 1,460 |
2023 | 1,021 |
Thereafter | 4,564 |
Net Book Value | $ 13,040 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee compensation and related costs | $ 34,348 | $ 37,822 |
Professional and consulting services | 12,856 | 14,925 |
Supplier purchases | 3,089 | 7,742 |
Value added taxes payable | 3,527 | 8,463 |
Accrued expenses and other current liabilities | 2,906 | 2,701 |
Other | 27,201 | 21,205 |
Accrued expenses and other current liabilities | $ 81,021 | $ 90,157 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019 | |
United States | |
Product Warranty Liability [Line Items] | |
Product warranty term for PDMs | 4 years |
CANADA | |
Product Warranty Liability [Line Items] | |
Product warranty term for PDMs | 5 years |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||||
Product warranty liability at beginning of period | $ 6,283 | $ 5,386 | $ 6,379 | $ 5,337 | ||
Warranty expense | 3,147 | 1,529 | 5,366 | 3,501 | ||
Warranty claims settled | (2,791) | (1,412) | (5,106) | (3,335) | ||
Product warranty liability at end of period | 6,639 | 5,503 | 6,639 | 5,503 | ||
Composition of balance: | ||||||
Accrued expenses and other current liabilities | $ 2,906 | $ 2,701 | ||||
Other liabilities | 3,733 | 3,678 | ||||
Total warranty balance | $ 6,283 | $ 5,386 | $ 6,379 | $ 5,337 | $ 6,639 | $ 6,379 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | |
Jun. 16, 2015lawsuit | Jun. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | ||
Number of class actions filed (in legal matters) | lawsuit | 3 | |
Number of class actions dismissed (in legal matters) | lawsuit | 2 | |
Fees To Former European Distributor | Minimum | ||
Loss Contingencies [Line Items] | ||
Commitment due in next twelve months | $ 5 | |
Accrued liabilities | 7.8 | |
Fees To Former European Distributor | Maximum | ||
Loss Contingencies [Line Items] | ||
Commitment due in next twelve months | $ 55 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)ft² | Jun. 30, 2019USD ($)ft² | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ 8,020 | $ 8,020 | |
Operating lease liability | $ 9,829 | $ 9,829 | |
Option to extend lease, maximum number of years | 5 years | 5 years | |
Operating lease cost | $ 900 | $ 1,800 | |
Operating cash outflows from operating leases | $ 800 | $ 1,600 | |
Weighted average remaining lease term | 3 years 8 months 12 days | 3 years 8 months 12 days | |
Weighted average discount rate (as a percentage) | 6.70% | 6.70% | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ 8,800 | ||
Operating lease liability | $ 10,800 | ||
Billerica Massachusetts | Laboratory and Office Space | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Area of real estate property (in square feet) | ft² | 100 | 100 | |
Billerica Massachusetts | Warehouse | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Area of real estate property (in square feet) | ft² | 29 | 29 |
Leases - Future Minimum Undisco
Leases - Future Minimum Undiscounted Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 (remaining) | $ 1,659 |
2020 | 2,955 |
2021 | 2,899 |
2022 | 2,575 |
2023 | 269 |
Thereafter | 561 |
Total future minimum lease payments | 10,918 |
Less: imputed interest | (1,089) |
Present value of future minimum lease payments | 9,829 |
Other current liabilities | 2,333 |
Other long-term liabilities | $ 7,496 |
Leases - Summary of ROU Assets
Leases - Summary of ROU Assets and Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Other assets | $ 8,020 |
Accrued expenses and other current liabilities | 2,333 |
Other liabilities | 7,496 |
Present value of future minimum lease payments | $ 9,829 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Share-Based Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 8,294 | $ 6,937 | $ 14,078 | $ 15,117 |
Unamortized Expense | 51,014 | 51,014 | ||
Employee stock purchase plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 318 | 294 | 718 | 588 |
Unamortized Expense | 739 | $ 739 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, outstanding, weighted average remaining contractual term | 12 days | |||
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,583 | 2,272 | $ 3,223 | 4,630 |
Unamortized Expense | 10,906 | $ 10,906 | ||
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, exercisable, weighted average remaining contractual term | 2 years 8 months 12 days | |||
Unvested restricted stock units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 6,393 | $ 4,371 | $ 10,137 | $ 9,899 |
Unamortized Expense | $ 39,369 | $ 39,369 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, outstanding, weighted average remaining contractual term | 2 years 2 months 12 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019 | |
Number of Options | |
Beginning balance (in shares) | 3,077,624 |
Granted (in shares) | 125,640 |
Exercised (in shares) | (721,041) |
Canceled (in shares) | (111,604) |
Ending balance (in shares) | 2,370,619 |
Vested, at end of period (in shares) | 1,839,054 |
Vested and expected to vest, at end of period (in shares) | 2,309,525 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ 39.16 |
Granted (in dollars per share) | 93.16 |
Exercised (in dollars per share) | 33.42 |
Canceled (in dollars per share) | 48.06 |
Ending balance (in dollars per share) | 43.35 |
Vested, at end of period (in dollars per share) | $ 37.50 |
Aggregate Intrinsic Value | |
Exercised | $ 49,242 |
Ending balance | 180,231 |
Vested, at end of period | 150,573 |
Vested and expected to vest, at end of period | $ 177,471 |
Options outstanding, weighted average remaining contractual life | 5 years 3 months 18 days |
Options exercisable, weighted average remaining contractual life | 4 years 6 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Units (Details) - Unvested restricted stock units | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 752,207 |
Granted (in shares) | shares | 311,950 |
Vested (in shares) | shares | (307,217) |
Forfeited (in shares) | shares | (51,645) |
Ending balance (in shares) | shares | 705,295 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 55.02 |
Granted (in dollars per share) | $ / shares | 93.79 |
Vested (in dollars per share) | $ / shares | 45.36 |
Forfeited (in dollars per share) | $ / shares | 63.77 |
Ending balance (in dollars per share) | $ / shares | $ 75.73 |
Interest Expense - Interest Exp
Interest Expense - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Contractual coupon interest | $ 2,462 | $ 2,462 | $ 4,924 | $ 4,942 | |
Accretion of debt discount | 7,057 | 6,616 | 14,000 | 13,138 | |
Amortization of debt issuance costs | 692 | 648 | 1,372 | 1,289 | |
Capitalized interest | (2,569) | (2,436) | (6,039) | (4,161) | |
Interest expense, net of portion capitalized | 7,642 | 7,290 | 14,257 | 15,208 | |
Non-cash interest expense | 7,749 | 7,264 | 15,372 | 14,427 | |
Total interest expense related to convertible debt | 10,211 | 9,726 | 20,296 | 19,369 | |
1.375% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Contractual coupon interest | 1,384 | 1,383 | 2,768 | 2,767 | |
Non-cash interest expense | 3,924 | 3,654 | 7,803 | 7,265 | |
Total interest expense related to convertible debt | $ 5,308 | 5,037 | $ 10,571 | 10,032 | |
Debt, interest rate | 1.375% | 1.375% | 1.375% | ||
1.25% Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Contractual coupon interest | $ 1,078 | 1,078 | $ 2,156 | 2,156 | |
Non-cash interest expense | 3,825 | 3,589 | 7,569 | 7,102 | |
Total interest expense related to convertible debt | $ 4,903 | 4,667 | $ 9,725 | 9,258 | |
Debt, interest rate | 1.25% | 1.25% | 1.25% | ||
2% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Contractual coupon interest | $ 0 | 1 | $ 0 | 19 | |
Non-cash interest expense | 0 | 21 | 0 | 60 | |
Total interest expense related to convertible debt | $ 0 | $ 22 | $ 0 | $ 79 | |
Debt, interest rate | 2.00% | 2.00% |
Income Tax Expense - Narrative
Income Tax Expense - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 25.60% | (32.20%) | 12.30% | (9.90%) |
Uncategorized Items - podd-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 20,349,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 20,349,000 |