iRhythm Technologies Announces Third Quarter 2024 Financial Results
iRhythm Technologies (IRTC) reported Q3 2024 financial results with revenue of $147.5 million, up 18% year-over-year. Gross margin improved to 68.8%, a 260-basis point increase from Q3 2023. The company recorded a net loss of $46.2 million, or $1.48 per share. Notable achievements include record demand from existing accounts, new account openings in the US, and record UK registrations. The company expanded globally into Austria, Netherlands, Switzerland, and Spain, and received Japanese PMDA approval. Full-year 2024 guidance projects revenue growth of 18-19% to $582.5-587.5 million, with gross margin expected between 68.5-69.0%.
iRhythm Technologies (IRTC) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato di 147,5 milioni di dollari, in aumento del 18% rispetto all'anno precedente. Il margine lordo è migliorato al 68,8%, un incremento di 260 punti base rispetto al terzo trimestre del 2023. L'azienda ha registrato una perdita netta di 46,2 milioni di dollari, pari a 1,48 dollari per azione. Tra i risultati notevoli ci sono la domanda record da parte dei clienti esistenti, l'apertura di nuovi conti negli Stati Uniti e registrazioni record nel Regno Unito. L'azienda si è espansa a livello globale in Austria, Paesi Bassi, Svizzera e Spagna, ottenendo anche l'approvazione della PMDA giapponese. La previsione per l'intero anno 2024 prevede una crescita del fatturato del 18-19%, portandolo a 582,5-587,5 milioni di dollari, con un margine lordo atteso tra il 68,5% e il 69,0%.
iRhythm Technologies (IRTC) reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 147,5 millones de dólares, un aumento del 18% en comparación con el año anterior. El margen bruto mejoró al 68,8%, un aumento de 260 puntos básicos en comparación con el tercer trimestre de 2023. La empresa registró una pérdida neta de 46,2 millones de dólares, es decir, 1,48 dólares por acción. Entre los logros destacados se incluyen la demanda récord de cuentas existentes, la apertura de nuevas cuentas en EE. UU. y un récord de registros en el Reino Unido. La empresa se expandió a nivel global a Austria, Países Bajos, Suiza y España, y recibió aprobación PMDA en Japón. Las proyecciones para el año completo 2024 prevén un crecimiento de ingresos del 18-19%, alcanzando entre 582,5 y 587,5 millones de dólares, con un margen bruto esperado entre el 68,5% y el 69,0%.
iRhythm Technologies (IRTC)는 2024년 3분기 재무 결과를 보고하며 수익이 1억4750만 달러로 전년 대비 18% 증가했다고 밝혔습니다. 매출 총 마진은 68.8%로, 2023년 3분기 대비 260bp 증가했습니다. 회사는 4620만 달러의 순손실을 기록했으며, 주당 1.48달러의 적자로 나타났습니다. 주요 성과로는 기존 계좌들로부터의 기록적인 수요, 미국 내 새로운 계좌 개설, 영국 내 기록적인 등록 수치가 포함됩니다. 회사는 오스트리아, 네덜란드, 스위스 및 스페인으로 국제적으로 확장했으며 일본 PMDA 승인을 받았습니다. 2024년 전체 연도 가이던스는 매출 성장률이 18-19%로, 5억8250만에서 5억8750만 달러에 이를 것으로 예상되며, 매출 총 마진은 68.5%에서 69.0% 사이로 예상됩니다.
iRhythm Technologies (IRTC) a annoncé ses résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires de 147,5 millions de dollars, en hausse de 18% par rapport à l'année précédente. La marge brute s'est améliorée à 68,8%, soit une augmentation de 260 points de base par rapport au troisième trimestre 2023. L'entreprise a enregistré une perte nette de 46,2 millions de dollars, soit 1,48 dollar par action. Parmi les réalisations notables figurent une demande record de comptes existants, l'ouverture de nouveaux comptes aux États-Unis et des enregistrements record au Royaume-Uni. L'entreprise s'est étendue à l'international en Autriche, aux Pays-Bas, en Suisse et en Espagne, et a reçu l'approbation de la PMDA japonaise. Les prévisions pour l'année complète 2024 projettent une croissance du chiffre d'affaires de 18 à 19% pour atteindre entre 582,5 et 587,5 millions de dollars, avec une marge brute attendue entre 68,5% et 69,0%.
iRhythm Technologies (IRTC) berichtete über die Finanzergebnisse für das dritte Quartal 2024 mit einem Umsatz von 147,5 Millionen Dollar, was einem Anstieg von 18% im Vergleich zum Vorjahr entspricht. Die Bruttomarge verbesserte sich auf 68,8%, was einen Anstieg von 260 Basispunkten im Vergleich zum dritten Quartal 2023 darstellt. Das Unternehmen verzeichnete einen Nettoverlust von 46,2 Millionen Dollar oder 1,48 Dollar pro Aktie. Zu den bemerkenswerten Erfolgen gehören eine Rekordnachfrage aus bestehenden Konten, die Eröffnung neuer Konten in den USA und Rekordregistrierungen im Vereinigten Königreich. Das Unternehmen hat seine globale Expansion in Österreich, die Niederlande, die Schweiz und Spanien vorangetrieben und die Genehmigung der japanischen PMDA erhalten. Die Prognose für das Gesamtjahr 2024 erwartet ein Umsatzwachstum von 18-19%, was einem Umsatz von 582,5-587,5 Millionen Dollar entspricht, mit einer erwarteten Bruttomarge von 68,5-69,0%.
- Revenue increased 18% YoY to $147.5 million
- Gross margin improved by 260 basis points to 68.8%
- Strong cash position with $522.0 million in unrestricted cash and equivalents
- Geographic expansion into four new European markets
- Received Japanese PMDA regulatory approval
- Net loss widened to $46.2 million from $27.1 million YoY
- Operating expenses increased to $151.8 million from $110.1 million YoY
- Adjusted EBITDA margin guidance negative at -2% to -1.5% for full year 2024
- $32.1 million charge for BioIntelliSense license consideration
Insights
Q3 results show mixed performance with
The BioIntelliSense technology licensing agreement marks a strategic pivot toward enhanced multi-sensor capabilities, positioning iRhythm to expand beyond traditional cardiac monitoring. Record registration volumes and new account openings indicate strong market adoption of the Zio platform, with the milestone of one million Zio monitor patient registrations validating market acceptance. FDA 510(k) clearance for Zio AT updates strengthens regulatory compliance. Geographic expansion into Austria, Netherlands, Switzerland, Spain and Japanese PMDA approval opens significant new market opportunities. Integration with Epic's Aura platform should improve clinical workflow adoption.
SAN FRANCISCO, Oct. 30, 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 September 30, 2024.
Third Quarter 2024 Financial Highlights
- Revenue of
$147.5 million , an18% increase compared to third quarter 2023 - Gross margin of
68.8% , a 260-basis point increase compared to third quarter 2023 - Unrestricted cash, cash equivalents and marketable securities of
$522.0 million as of September 30, 2024
Recent Operational Highlights
- Strong quarterly registration volume driven by record demand from existing accounts combined with another record quarter of new account openings in the United States and record registrations in the United Kingdom
- Received FDA 510(k) clearance for updates previously made to the Zio AT device as letter to file
- Expanded global reach with commercial launch of Zio monitor in Austria, the Netherlands, Switzerland, and Spain, and received Japanese PMDA regulatory approval for Zio monitor, highlighting our continued commitment to bringing our innovative digital healthcare solutions to millions of people worldwide
- Entered into technology license agreement with BioIntelliSense to incorporate medical grade, connected, multi-sensor capabilities into our future ambulatory cardiac monitoring products, positioning us to expand the capabilities of our product platform
- Upcoming data at American Heart Association's Scientific Sessions 2024 in Chicago from November 16–18
"The third quarter of 2024 was an exceptional quarter of execution as our teams drove significant demand in our core business, made substantial progress in expanding our Zio services into global markets, and established an important licensing agreement with an external partner to drive future platform capabilities for long term growth," said Quentin Blackford, president and chief executive officer of iRhythm. "Third quarter revenue growth of over
"We also made tangible progress towards long-term initiatives to drive future growth. For the first time ever, we have achieved more than 10,000 billable registrations in a single quarter in the UK, and we are excited that we have begun receiving physician orders following commercial launch in four additional European countries. Furthermore, we have recently received a FDA 510(k) clearance for updates to our Zio AT device associated with our FDA remediation efforts, an ongoing and critical priority for our teams to demonstrate our commitment to quality, compliance and performance. With strong execution across multiple growth levers and with additional catalysts on the horizon, we could not be more excited about the future of iRhythm."
Third Quarter Financial Results
Revenue for the third quarter of 2024 was
Gross profit for the third quarter of 2024 was
Operating expenses for the third quarter of 2024 were
Net loss for the third 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.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no impact on previously reported results of operations or financial position.
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, changes in fair value of strategic investments, 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 October 30, 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 Contact
Stephanie Zhadkevich
investors@irhythmtech.com
Media Contact
Kassandra Perry
irhythm@highwirepr.com
| IRHYTHM TECHNOLOGIES, INC. Condensed Consolidated Balance Sheets (In thousands, except par value) (unaudited) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 519,535 | $ | 36,173 | |||
| Marketable securities | 2,496 | 97,591 | |||||
| Accounts receivable, net | 77,427 | 61,484 | |||||
| Inventory | 15,032 | 13,973 | |||||
| Prepaid expenses and other current assets | 13,419 | 21,591 | |||||
| Total current assets | 627,909 | 230,812 | |||||
| Property and equipment, net | 122,390 | 104,114 | |||||
| Operating lease right-of-use assets | 45,570 | 49,317 | |||||
| Restricted cash, long-term | 8,358 | — | |||||
| Goodwill | 862 | 862 | |||||
| Long-term strategic investments | 59,059 | 3,000 | |||||
| Other assets | 45,540 | 45,039 | |||||
| Total assets | $ | 909,688 | $ | 433,144 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 7,593 | $ | 5,543 | |||
| Accrued liabilities | 73,958 | 83,362 | |||||
| Deferred revenue | 3,031 | 3,306 | |||||
| Operating lease liabilities, current portion | 15,522 | 15,159 | |||||
| Total current liabilities | 100,104 | 107,370 | |||||
| Long-term senior convertible notes | 645,821 | — | |||||
| Debt, noncurrent portion | — | 34,950 | |||||
| Other noncurrent liabilities | 17,978 | 1,012 | |||||
| Operating lease liabilities, noncurrent portion | 74,019 | 79,715 | |||||
| Total liabilities | 837,922 | 223,047 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 31 | 31 | |||||
| Additional paid-in capital | 854,363 | 855,784 | |||||
| Accumulated other comprehensive loss | (66 | ) | (112 | ) | |||
| Accumulated deficit | (757,562 | ) | (645,606 | ) | |||
| Treasury stock, at cost; 229 and 0 shares at September 30, 2024 and December 31, 2023, respectively | (25,000 | ) | — | ||||
| Total stockholders’ equity | 71,766 | 210,097 | |||||
| Total liabilities and stockholders’ equity | $ | 909,688 | $ | 433,144 | |||
| IRHYTHM TECHNOLOGIES, INC. Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue, net | $ | 147,538 | $ | 124,604 | $ | 427,514 | $ | 360,170 | ||||||||
| Cost of revenue | 46,062 | 42,130 | 135,051 | 115,790 | ||||||||||||
| Gross profit | 101,476 | 82,474 | 292,463 | 244,380 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 15,694 | 16,309 | 52,378 | 44,828 | ||||||||||||
| Acquired in-process research and development | 32,069 | — | 32,069 | — | ||||||||||||
| Selling, general and administrative | 103,375 | 93,768 | 318,797 | 285,531 | ||||||||||||
| Impairment charges | 641 | — | 641 | — | ||||||||||||
| Total operating expenses | 151,779 | 110,077 | 403,885 | 330,359 | ||||||||||||
| Loss from operations | (50,303 | ) | (27,603 | ) | (111,422 | ) | (85,979 | ) | ||||||||
| Interest and other income (expense), net: | ||||||||||||||||
| Interest income | 6,456 | 1,717 | 16,198 | 4,619 | ||||||||||||
| Interest expense | (3,329 | ) | (927 | ) | (9,501 | ) | (2,709 | ) | ||||||||
| Loss on extinguishment of debt | — | — | (7,589 | ) | — | |||||||||||
| Other income (expense), net | 1,182 | (108 | ) | 772 | (143 | ) | ||||||||||
| Total interest and other income (expense), net | 4,309 | 682 | (120 | ) | 1,767 | |||||||||||
| Loss before income taxes | (45,994 | ) | (26,921 | ) | (111,542 | ) | (84,212 | ) | ||||||||
| Income tax provision | 188 | 195 | 414 | 495 | ||||||||||||
| Net loss | $ | (46,182 | ) | $ | (27,116 | ) | $ | (111,956 | ) | $ | (84,707 | ) | ||||
| Net loss per common share, basic and diluted | $ | (1.48 | ) | $ | (0.89 | ) | $ | (3.59 | ) | $ | (2.78 | ) | ||||
| Weighted-average shares, basic and diluted | 31,262 | 30,607 | 31,147 | 30,470 | ||||||||||||
| IRHYTHM TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Financial Information (in thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Adjusted EBITDA reconciliation* | ||||||||||||||||
| Net loss1 | $ | (46,182 | ) | $ | (27,116 | ) | $ | (111,956 | ) | $ | (84,707 | ) | ||||
| Interest expense | 3,329 | 927 | 9,501 | 2,709 | ||||||||||||
| Interest income | (6,456 | ) | (1,717 | ) | (16,198 | ) | (4,619 | ) | ||||||||
| Changes in fair value of strategic investments | (1,059 | ) | — | (1,059 | ) | — | ||||||||||
| Income tax provision | 188 | 195 | 414 | 495 | ||||||||||||
| Depreciation and amortization | 5,135 | 4,067 | 15,426 | 11,434 | ||||||||||||
| Stock-based compensation | 17,158 | 21,008 | 59,970 | 53,358 | ||||||||||||
| Impairment charges | 641 | — | 641 | — | ||||||||||||
| Business transformation costs | 7,360 | 2,999 | 8,656 | 14,094 | ||||||||||||
| Loss on extinguishment of debt | — | — | 7,589 | — | ||||||||||||
| Adjusted EBITDA | $ | (19,886 | ) | $ | 363 | $ | (27,016 | ) | $ | (7,236 | ) | |||||
| Adjusted net loss reconciliation* | ||||||||||||||||
| Net loss, as reported1 | $ | (46,182 | ) | $ | (27,116 | ) | $ | (111,956 | ) | $ | (84,707 | ) | ||||
| Impairment charges | 641 | — | 641 | — | ||||||||||||
| Business transformation costs | 7,360 | 2,999 | 8,656 | 14,094 | ||||||||||||
| Changes in fair value of strategic investments | (1,059 | ) | — | (1,059 | ) | — | ||||||||||
| Loss on extinguishment of debt | — | — | 7,589 | — | ||||||||||||
| Adjusted net loss | $ | (39,240 | ) | $ | (24,117 | ) | $ | (96,129 | ) | $ | (70,613 | ) | ||||
| Adjusted net loss per share reconciliation* | ||||||||||||||||
| Net loss per share, as reported1 | $ | (1.48 | ) | $ | (0.89 | ) | $ | (3.59 | ) | $ | (2.78 | ) | ||||
| Impairment charges per share | 0.02 | — | 0.02 | — | ||||||||||||
| Business transformation costs per share | 0.24 | 0.10 | 0.28 | 0.46 | ||||||||||||
| Changes in fair value of strategic investments per share | (0.03 | ) | — | (0.03 | ) | — | ||||||||||
| Loss on extinguishment of debt per share | — | — | 0.24 | — | ||||||||||||
| Adjusted net loss per share | $ | (1.26 | ) | $ | (0.79 | ) | $ | (3.09 | ) | $ | (2.32 | ) | ||||
| Weighted-average shares, basic and diluted | 31,262 | 30,607 | 31,147 | 30,470 | ||||||||||||
| Adjusted operating expense reconciliation* | ||||||||||||||||
| Operating expense, as reported | $ | 151,779 | $ | 110,077 | $ | 403,885 | $ | 330,359 | ||||||||
| Impairment charges | (641 | ) | — | (641 | ) | — | ||||||||||
| Business transformation costs | (7,360 | ) | (2,999 | ) | (8,656 | ) | (14,094 | ) | ||||||||
| Adjusted operating expense | $ | 143,778 | $ | 107,078 | $ | 394,588 | $ | 316,265 | ||||||||
*Certain numbers expressed may not sum due to rounding.
1 Net loss for the three and nine months ended September 30, 2024 includes
FAQ
What was iRhythm's (IRTC) revenue growth in Q3 2024?
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What was IRTC's Q3 2024 net loss?
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