Image Source: Insulet Corporation

What: Shares of Insulet Corporation (PODD 5.43%), a diabetes focused drug delivery company, rose by as much as 13% Friday after the company reported its fourth quarter earnings.

So what: Revenue in the fourth quarter grew 38% to $100.1 million, exceeding the company's own guidance range and was well ahead of the $91.9 million that analyst were expecting. Growth in the quarter was primarily driven by a 21% uptick in sales of its U.S. OmniPod business mixed with a huge jump in revenue from its drug delivery business.

The company didn't make out quite as well on the bottom line as it posted a net loss of $27.3 million, or $0.48 per share, during the period. However, that loss included $12 million in one-time expenses and if you exclude them from the results then its net loss per share would have been $0.27, which was a penny shy of what the pros were looking for.

Looking beyond the number, Insulet also a few other updates to share with investors:

  • As previously announced, Insulet will be divesting its Neighborhood Diabetes supplies business for $5 million in cash. The move will force Insulet to take a series of restructuring charges as it originally purchased Neighborhood back in 2011 for $63 million. The company recorded $9 million in non-cash charges during the quarter.
  • The company signed a development agreement with Eli Lilly (LLY -0.13%) with the goal of obtaining regulatory approval to deliver Eli Lilly's more concentrated insulins using the OmniPod System. If everything goes according to plan than the company believes that using a more concentrated insulin will significantly expanding the OmniPod's addressable market.
  • Insulet signed an agreement with Mode AGC to advance its work on developing an artificial pancreas.

Now what: Patrick Sullivan, Insulet's CEO, stated:

We are confident we have the right product to win in the market and the right team to execute on our strategy. We are heading into 2016 with positive momentum and outstanding prospects for growth and value creation

Its clear that CEO Sullivan is bullish on Insulet prospects as he is forecasting that revenue for the coming quarter will land between $77 million to $80 million, which represents growth of 65% at the mid-point after stripping out the effects of the Neighborhood divestiture. The picture looks bright for the full year as well as the company expects revenue to land between $330 million to $350 million, which represents growth of roughly 30% at the midpoint.

Given that the company reported a big quarterly revenue beat and issued upbeat guidance for the year ahead its easy to see why the market is bidding up shares today.