iRhythm Technologies Announces Second Quarter 2024 Financial Results
iRhythm Technologies (NASDAQ: IRTC) reported strong Q2 2024 financial results, with revenue of $148.0 million, up 19.3% year-over-year. The company achieved a gross margin of 69.9%, a 40-basis point increase from Q2 2023. Key highlights include:
1. Record quarterly demand driven by growth in existing accounts and expansion into primary care channels
2. Nearing operational readiness for four European country Zio launches
3. Launch of initial phase of manufacturing automation
4. Progress on FDA warning letter remediation
iRhythm raised its fiscal year 2024 guidance, projecting revenue growth of 18% to 20%, ranging from $580 million to $590 million. The company ended the quarter with $561.5 million in unrestricted cash, cash equivalents, and marketable securities.
iRhythm Technologies (NASDAQ: IRTC) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con ricavi di 148,0 milioni di dollari, in aumento del 19,3% rispetto all'anno precedente. L'azienda ha raggiunto un margine lordo del 69,9%, con un incremento di 40 punti base rispetto al secondo trimestre del 2023. I punti salienti includono:
1. Domanda record nel trimestre, sostenuta dalla crescita nelle contabilità esistenti e dall'espansione nei canali di assistenza primaria
2. In prossimità di prontezza operativa per il lancio in quattro paesi europei del Zio
3. Avvio della fase iniziale di automazione della produzione
4. Progressi nella remediazione delle avvertenze della FDA
iRhythm ha alzato le previsioni per l'anno fiscale 2024, prevedendo una crescita dei ricavi tra il 18% e il 20%, per un totale compreso tra 580 milioni e 590 milioni di dollari. Alla fine del trimestre, l'azienda ha registrato 561,5 milioni di dollari in contante non vincolato, equivalent cash e titoli negoziabili.
iRhythm Technologies (NASDAQ: IRTC) reportó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos de 148,0 millones de dólares, un aumento del 19,3% interanual. La compañía logró un margen bruto del 69,9%, un incremento de 40 puntos básicos en comparación con el segundo trimestre de 2023. Los puntos destacados incluyen:
1. Demanda trimestral récord impulsada por el crecimiento en cuentas existentes y expansión en canales de atención primaria
2. Casi lista operativamente para lanzamientos de Zio en cuatro países europeos
3. Lanzamiento de la fase inicial de automatización de la fabricación
4. Progreso en la remediación de la carta de advertencia de la FDA
iRhythm elevó su guía para el año fiscal 2024, proyectando un crecimiento de ingresos del 18% al 20%, en un rango de 580 a 590 millones de dólares. La compañía terminó el trimestre con 561,5 millones de dólares en efectivo sin restricciones, equivalentes de efectivo y valores negociables.
iRhythm Technologies (NASDAQ: IRTC)는 2024년 2분기 재무 결과를 발표하며, 수익 1억 4,800만 달러를 기록하였고, 전년 대비 19.3% 증가하였습니다. 회사는 총 마진 69.9%를 달성하였으며, 이는 2023년 2분기 대비 40베이시스 포인트 증가한 수치입니다. 주요 하이라이트는 다음과 같습니다:
1. 기존 계좌의 성장과 1차 진료 채널로의 확장을 통한 기록적인 분기 수요
2. 네 개 유럽 국가에서 Zio 출시를 위한 운영 준비 완료
3. 제조 자동화 초기 단계 출시
4. FDA 경고서 회복 진행 상황
iRhythm은 2024 회계 연도 가이드를 상향 조정하며 18%에서 20%의 수익 성장을 예상하고 있으며, 수익은 5억 8천만 달러에서 5억 9천만 달러에 이를 것으로 보입니다. 회사는 분기를 마감하면서 5억 6천1백50만 달러의 제한 없는 현금, 현금 등가물 및 유가 증권을 보유하고 있습니다.
iRhythm Technologies (NASDAQ: IRTC) a annoncé de solides résultats financiers pour le deuxième trimestre 2024, avec des revenus de 148,0 millions de dollars, en hausse de 19,3 % par rapport à l'année précédente. L'entreprise a atteint une marge brute de 69,9 %, soit une augmentation de 40 points de base par rapport au deuxième trimestre 2023. Les faits saillants comprennent :
1. Une demande trimestrielle record, entraînée par la croissance des comptes existants et l'expansion dans les canaux de soins primaires
2. Proche de la préparation opérationnelle pour les lancements de Zio dans quatre pays européens
3. Lancement de la phase initiale de l'automatisation de la fabrication
4. Progrès dans la remédiation de la lettre d'avertissement de la FDA
iRhythm a rehaussé ses prévisions pour l'exercice fiscal 2024, projetant une croissance des revenus de 18 % à 20 %, se chiffrant entre 580 millions et 590 millions de dollars. L'entreprise a terminé le trimestre avec 561,5 millions de dollars en liquidités non restreintes, équivalents de liquidités et titres négociables.
iRhythm Technologies (NASDAQ: IRTC) berichtete über starke finanzielle Ergebnisse für das zweite Quartal 2024 mit Umsätzen von 148,0 Millionen Dollar, was einem Anstieg von 19,3% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte eine Bruttomarge von 69,9%, ein Anstieg um 40 Basispunkte im Vergleich zum zweiten Quartal 2023. Die wichtigsten Highlights sind:
1. Rekordnachfrage im Quartal, die durch das Wachstum in bestehenden Konten und die Expansion in die Primärversorgung getrieben wird
2. Nahe an der operativen Bereitschaft für die Markteinführung von Zio in vier europäischen Ländern
3. Start der ersten Phase der Automatisierung der Fertigung
4. Fortschritte bei der Behebung des FDA-Warnschreibens
iRhythm erhöhte seine Prognose für das Geschäftsjahr 2024 und erwartet ein Umsatzwachstum von 18% bis 20%, das sich auf 580 Millionen bis 590 Millionen Dollar beläuft. Das Unternehmen schloss das Quartal mit 561,5 Millionen Dollar an unbegrenztem Bargeld, Zahlungsmitteln und handelbaren Wertpapieren ab.
- Revenue increased by 19.3% year-over-year to $148.0 million
- Gross margin improved by 40 basis points to 69.9%
- Record quarterly demand driven by growth in existing accounts and expansion into primary care channels
- Raised fiscal year 2024 guidance for revenue, gross margin, and adjusted EBITDA
- Nearing operational readiness for four European country Zio launches
- Launched initial phase of manufacturing automation for future growth and efficiency
- Net loss increased to $20.1 million compared to $18.5 million in Q2 2023
- Adjusted net loss increased to $18.8 million compared to $13.1 million in Q2 2023
- Operating expenses increased to $126.5 million from $105.1 million in Q2 2023
iRhythm Technologies' Q2 2024 results demonstrate robust growth and operational progress. The company reported
Key financial highlights include:
- Gross margin improvement to
69.9% , up 40 basis points year-over-year - Solid cash position with
$561.5 million in unrestricted cash and equivalents - Adjusted net loss of
$18.8 million , or$0.61 per diluted share
While the company is still operating at a loss, the increased revenue and improved gross margin suggest progress towards profitability. The raised guidance indicates management's confidence in continued growth, supported by expansion into primary care channels and upcoming international launches.
However, investors should note the increase in operating expenses, which rose to
Overall, iRhythm's financial performance reflects a company in growth mode, with strong market demand and strategic investments positioning it for future expansion. The balance between growth investments and path to profitability will be important for long-term success.
iRhythm's Q2 2024 results highlight significant traction in the ambulatory cardiac monitoring market. The company's success in penetrating primary care channels and expanding within existing accounts demonstrates the growing acceptance of its Zio platform. This expansion is particularly noteworthy as it suggests a broadening of the overall market for cardiac monitoring solutions.
Key operational highlights include:
- Record quarterly demand, indicating strong market positioning
- Imminent launch in four European countries, signaling international expansion
- Progress towards Japanese market entry, with a regulatory decision expected in late 2024
- Implementation of manufacturing automation, potentially improving future margins and scalability
The company's ability to address the "quintuple aim of healthcare" with its Zio platform appears to be resonating with providers, particularly in integrated delivery networks and large primary care accounts. This suggests that iRhythm is successfully positioning its technology as a comprehensive solution rather than just a monitoring device.
The upcoming data presentation at the HRX 2024 Conference could further solidify iRhythm's scientific credibility and potentially drive additional adoption. However, the ongoing FDA warning letter remediation process and pending 510(k) approvals for Zio AT represent regulatory hurdles that investors should monitor closely.
In the competitive landscape of digital health and cardiac monitoring, iRhythm's growth and expansion strategies appear well-aligned with market trends towards more accessible and efficient healthcare solutions. The company's focus on global expansion and operational efficiency positions it favorably for long-term growth in the evolving healthcare technology sector.
SAN FRANCISCO, Aug. 01, 2024 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months ended June 30, 2024.
Second Quarter 2024 Financial Highlights
- Revenue of
$148.0 million , a19.3% increase compared to second quarter 2023 - Gross margin of
69.9% , a 40-basis point increase compared to second quarter 2023 - Unrestricted cash, cash equivalents and marketable securities of
$561.5 million as of June 30, 2024 - Increased fiscal year 2024 guidance for revenue, gross margin, and adjusted EBITDA
Recent Operational Highlights
- Record quarterly demand driven by strong growth in existing accounts as well as accelerated expansion into primary care channels
- Nearing operational readiness for four European country Zio launches with first patient patching anticipated before year-end and anticipate Japanese regulatory decision in late 2024
- Achieved significant operational milestone in May 2024 with launch of initial phase of manufacturing automation to set the stage for future growth, innovation, and operational efficiency in 2H24 and beyond
- Continued to make progress on remediation of the FDA warning letter and have submitted the first of our responses to the FDA's requests for additional information on two 510(k)s related to Zio AT
- Upcoming data presentation at the HRX 2024 Conference in Atlanta, Georgia, from September 5-7, 2024
"The second quarter of 2024 was another quarter of continued traction in our core markets reflective of record demand for Zio products and services," said Quentin Blackford, president and chief executive officer of iRhythm. "Second quarter revenue growth of
"Additionally, we are thrilled with the progress we are making to expand and scale the Zio platform for global markets. We are excited about our upcoming commercial launches in four European countries and we continue to anticipate a Japanese regulatory decision on our submitted dossier in late 2024, both of which are demonstrative of iRhythm’s commitment to introducing a better way to monitor for arrhythmias to millions more patients globally. With strong momentum in our core business and multiple catalysts on the horizon, we could not be more excited about our position moving into the back half of 2024."
Second Quarter Financial Results
Revenue for the second quarter of 2024 was
Gross profit for the second quarter of 2024 was
Operating expenses for the second quarter of 2024 were
Net loss for the second quarter of 2024 was
Unrestricted cash, cash equivalents, and marketable securities were
2024 Annual Guidance
iRhythm projects revenue for the full year 2024 to grow approximately
Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Interested parties may access a live and archived webcast of the presentation on the “Events & Presentations” section of the company’s investor website at investors.irhythmtech.com.
About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.
Use of Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA estimates for full year 2024 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.
Adjusted EBITDA excludes non-cash operating charges for stock-based compensation expense, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, anticipated productivity improvements and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-Q expected to be filed on or about August 1, 2024. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.
Investor Relations Contact
Stephanie Zhadkevich
investors@irhythmtech.com
Media Contact
Kassandra Perry
irhythm@highwirepr.com
IRHYTHM TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(unaudited)
(In thousands, except par value)
| June 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 550,552 | $ | 36,173 | |||
| Marketable securities | 10,905 | 97,591 | |||||
| Accounts receivable, net | 85,513 | 61,484 | |||||
| Inventory | 15,425 | 13,973 | |||||
| Prepaid expenses and other current assets | 15,113 | 21,591 | |||||
| Total current assets | 677,508 | 230,812 | |||||
| Property and equipment, net | 117,572 | 104,114 | |||||
| Operating lease right-of-use assets | 46,833 | 49,317 | |||||
| Restricted cash, long-term | 8,358 | — | |||||
| Goodwill | 862 | 862 | |||||
| Other assets | 68,052 | 48,039 | |||||
| Total assets | $ | 919,185 | $ | 433,144 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 13,425 | $ | 5,543 | |||
| Accrued liabilities | 65,940 | 83,362 | |||||
| Deferred revenue | 3,146 | 3,306 | |||||
| Operating lease liabilities, current portion | 15,384 | 15,159 | |||||
| Total current liabilities | 97,895 | 107,370 | |||||
| Long-term senior convertible notes | 644,977 | — | |||||
| Debt, noncurrent portion | — | 34,950 | |||||
| Other noncurrent liabilities | 940 | 1,012 | |||||
| Operating lease liabilities, noncurrent portion | 76,184 | 79,715 | |||||
| Total liabilities | 819,996 | 223,047 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 31 | 31 | |||||
| Additional paid-in capital | 835,356 | 855,784 | |||||
| Accumulated other comprehensive income (loss) | 182 | (112 | ) | ||||
| Accumulated deficit | (711,380 | ) | (645,606 | ) | |||
| Treasury stock, at cost; 229 and 0 shares at June 30, 2024 and December 31, 2023, respectively | (25,000 | ) | — | ||||
| Total stockholders’ equity | 99,189 | 210,097 | |||||
| Total liabilities and stockholders’ equity | $ | 919,185 | $ | 433,144 | |||
IRHYTHM TECHNOLOGIES, INC.
Condensed Consolidated Statements of Operations
(unaudited)
(In thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue, net | $ | 148,047 | $ | 124,130 | $ | 279,976 | $ | 235,566 | ||||||||
| Cost of revenue | 44,576 | 37,905 | 88,989 | 73,660 | ||||||||||||
| Gross profit | 103,471 | 86,225 | 190,987 | 161,906 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 19,690 | 13,677 | 36,684 | 28,519 | ||||||||||||
| Selling, general and administrative | 106,762 | 91,420 | 215,422 | 191,763 | ||||||||||||
| Total operating expenses | 126,452 | 105,097 | 252,106 | 220,282 | ||||||||||||
| Loss from operations | (22,981 | ) | (18,872 | ) | (61,119 | ) | (58,376 | ) | ||||||||
| Interest expense | (3,312 | ) | (832 | ) | (6,172 | ) | (1,782 | ) | ||||||||
| Interest and other income, net | 6,380 | 1,435 | 9,332 | 2,867 | ||||||||||||
| Loss on extinguishment of debt | — | — | (7,589 | ) | — | |||||||||||
| Loss before income taxes | (19,913 | ) | (18,269 | ) | (65,548 | ) | (57,291 | ) | ||||||||
| Income tax provision | 194 | 213 | 226 | 300 | ||||||||||||
| Net loss | $ | (20,107 | ) | $ | (18,482 | ) | $ | (65,774 | ) | $ | (57,591 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.65 | ) | $ | (0.61 | ) | $ | (2.12 | ) | $ | (1.89 | ) | ||||
| Weighted-average shares, basic and diluted | 31,145 | 30,502 | 31,089 | 30,400 | ||||||||||||
IRHYTHM TECHNOLOGIES, INC.
Reconciliation of GAAP to Non-GAAP Financial Information
(unaudited)
(in thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Adjusted EBITDA reconciliation | ||||||||||||||||
| Net loss | $ | (20,107 | ) | $ | (18,482 | ) | $ | (65,774 | ) | $ | (57,591 | ) | ||||
| Interest expense | 3,312 | 832 | 6,172 | 1,782 | ||||||||||||
| Interest income | (6,685 | ) | (1,468 | ) | (9,742 | ) | (2,902 | ) | ||||||||
| Income tax provision | 194 | 213 | 226 | 300 | ||||||||||||
| Depreciation and amortization | 5,160 | 3,791 | 10,291 | 7,367 | ||||||||||||
| Stock-based compensation | 21,821 | 14,099 | 42,812 | 32,350 | ||||||||||||
| Business transformation costs | 1,296 | 5,409 | 1,296 | 11,095 | ||||||||||||
| Loss on extinguishment of debt | — | — | 7,589 | — | ||||||||||||
| Adjusted EBITDA | $ | 4,991 | $ | 4,394 | $ | (7,130 | ) | $ | (7,599 | ) | ||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Adjusted net loss reconciliation | ||||||||||||||||
| Net loss, as reported | $ | (20,107 | ) | $ | (18,482 | ) | $ | (65,774 | ) | $ | (57,591 | ) | ||||
| Business transformation costs | 1,296 | 5,409 | 1,296 | 11,095 | ||||||||||||
| Loss on extinguishment of debt | — | — | 7,589 | — | ||||||||||||
| Adjusted net loss | $ | (18,811 | ) | $ | (13,073 | ) | $ | (56,889 | ) | $ | (46,496 | ) | ||||
| Adjusted net loss per share reconciliation | ||||||||||||||||
| Net loss per share, as reported | $ | (0.65 | ) | $ | (0.61 | ) | $ | (2.12 | ) | $ | (1.89 | ) | ||||
| Business transformation costs per share | 0.04 | 0.18 | 0.04 | 0.36 | ||||||||||||
| Loss on extinguishment of debt per share | — | — | 0.24 | — | ||||||||||||
| Adjusted net loss per share | $ | (0.61 | ) | $ | (0.43 | ) | $ | (1.84 | ) | $ | (1.53 | ) | ||||
| Weighted-average shares, basic and diluted | 31,145 | 30,502 | 31,089 | 30,400 | ||||||||||||
| Adjusted operating expense reconciliation | ||||||||||||||||
| Operating expense, as reported | $ | 126,452 | $ | 105,097 | $ | 252,106 | $ | 220,282 | ||||||||
| Business transformation costs | (1,296 | ) | (5,409 | ) | (1,296 | ) | (11,095 | ) | ||||||||
| Adjusted operating expense | $ | 125,156 | $ | 99,688 | $ | 250,810 | $ | 209,187 | ||||||||
FAQ
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What was iRhythm Technologies' (IRTC) net loss for Q2 2024?
