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 and full year ended December 31, 2023.
Fourth Quarter 2023 Financial
Highlights
- Grew fourth quarter 2023 patient
registrations in excess of 22% compared to the fourth quarter
2022
- Revenue of $132.5 million, a 17.7%
increase compared to fourth quarter 2022
- Gross margin of 66.0%, a 390 basis
point decrease compared to fourth quarter 2022
- Net loss of $38.7 million, an $18.5
million increased loss compared to fourth quarter 2022
- Adjusted EBITDA of $2.4 million, a
$1.3 million improvement compared to fourth quarter 2022
- Cash, cash equivalents and marketable
securities of $133.8 million at December 31, 2023, a $24.7 million
reduction from September 30, 2023
Full Year 2023 Financial
Highlights
- Revenue of $492.7 million, a 19.9%
increase compared to full year 2022
- Gross margin of 67.3%, a 120 basis
point decrease compared to full year 2022
- Net loss of $123.4 million, a $7.3
million increased loss compared to full year 2022
- Adjusted EBITDA of ($4.9) million,
reflecting a $6.4 million improvement compared to full year
2022
Recent Operational Highlights
- Second highest quarter of Zio
long-term continuous monitoring new account openings in the United
States during the fourth quarter and record full year of new
account onboarding during 2023
- Zio monitor transition progressing
with 67% of long-term continuous monitoring registrations now being
for our newest generation ambulatory cardiac monitor
- Upcoming data presentations at the
American College of Cardiology's Annual Scientific Session &
Expo in Atlanta, GA, from April 6-8, 2024
"This past year was truly transformational for
iRhythm as we made significant strides to advance our mission in
our core U.S. market while advancing multiple initiatives that set
us up for future growth,” said Quentin Blackford, iRhythm’s
President and CEO. “We realized 20% revenue growth for the full
year, driven by record new account onboarding, balanced volume
contributions from multiple channels, and the largest product
launch in company history. We've made significant progress towards
international expansion efforts with recent EU MDR CE mark
approval, completed market evaluation in Switzerland, and ongoing
review of our Japanese regulatory submission. Moreover, we are also
realizing value from our increased focus on operational discipline,
achieving more than 180-basis points of improvement in adjusted
EBITDA margin for the full year 2023 compared to 2022 and setting
us up for sustainable improvements on our path towards our
long-range plan."
"In 2024, we expect to continue bringing our
platform technology to as many patients who can benefit through
continued commercial execution, product innovation, expansion into
new markets, pilots in exciting new business models, and
exploration into new adjacent market opportunities. As we continue
to bring our Zio services to millions of patients globally and
scale the business, we could not be more excited by our unique
position in this fast-growing market and our ability to drive value
for patients, physicians, health systems, and shareholders,"
concluded Mr. Blackford.
Fourth Quarter 2023 Financial
ResultsRevenue for the three months ended December 31,
2023, increased 17.7% to $132.5 million, from $112.6 million during
the same period in 2022. The increase was primarily attributable to
increases in the volume of Zio Services resulting from increased
demand, partially offset by a slight decline in average selling
price.
Gross profit for the fourth quarter of 2023 was
$87.4 million, up from $78.7 million during the same period in
2022, while gross margins were 66.0% as compared to 69.9% during
the same period in 2022. The decrease in gross margin was primarily
due to increases in headcount-related costs associated with scaling
our clinical operations organization as well as costs related to
the commercial launch of Zio monitor.
Operating expenses for the fourth quarter of 2023
were $126.6 million, compared to $99.4 million for the same period
in 2022 and $110.1 million in Q3 2023. Sequentially, the
increased spend was driven by an impairment charge totaling $11.1
million, related to a reduction in the capitalized leased asset
value of our San Francisco office from continued declining
commercial real estate rental market conditions, as well as
increases for legal, regulatory, and consulting fees.
Net loss for the fourth quarter of 2023 was
$38.7 million, or a diluted loss of $1.26 per share, compared with
net loss of $20.2 million, or a diluted loss of $0.67 per share,
for the same period in 2022.
Full Year 2023 Financial
ResultsRevenue for the year ended December 31, 2023,
increased 19.9% to $492.7 million, from $410.9 million in 2022. The
increase in revenue was primarily due to increased volume of Zio
services provided as a result of increased demand.
Gross profit for the year was $331.8 million, up
from $281.6 million in 2022, while gross margin was 67.3%, a
decline from 68.5% in 2022.
Operating expenses for the year were $457.0
million, an increase of 15.6% compared to 2022. The increase was
mainly due to an increase in headcount-related costs to support the
advancement of our product development and growth in our
business.
Net loss for 2023 was $123.4 million, or a
diluted loss of $4.04 per share, compared with net loss of $116.2
million, or a diluted loss of $3.88 per share in 2022.
Cash, cash equivalents and short-term
investments were $133.8 million as of December 31, 2023.
2024 Guidance iRhythm projects
revenue for the full year 2024 to grow to approximately $575
million to $585 million. Gross margin for the full year 2024 is
expected to range from 68% to 69% and adjusted EBITDA margin for
the full year 2024 is expected to range from approximately 3% to 4%
of revenues.
Webcast and Conference Call
InformationiRhythm’s management team will host a
conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET.
Investors interested in listening to the conference call may do so
by accessing the live and archived webcast of the event, which will
be available on the investors section of the Company’s 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
MeasuresWe 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, depreciation and amortization as well
as non-operating items such as interest income, interest expense,
impairment and restructuring charges, and business transformation
costs.
We exclude the following items from non-GAAP
financial measures for adjusted net loss, adjusted net loss per
share and adjusted operating expenses:
- impairment and restructuring charges,
and
- business transformation costs to scale
the organization.
Forward-Looking StatementsThis
news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 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-K expected to be filed on or about
February 22, 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 ContactStephanie
Zhadkevich(919) 452-5430investors@irhythmtech.com
Media ContactSaige Smith(262)
289-7065irhythm@highwirepr.com
IRHYTHM TECHNOLOGIES, INC.
Consolidated Balance Sheets(In thousands,
except par value)
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
36,173 |
|
|
$ |
78,832 |
|
Marketable securities |
|
97,591 |
|
|
|
134,312 |
|
Accounts receivable, net |
|
61,484 |
|
|
|
49,918 |
|
Inventory |
|
13,973 |
|
|
|
15,155 |
|
Prepaid expenses and other current assets |
|
21,591 |
|
|
|
10,555 |
|
Total current assets |
|
230,812 |
|
|
|
288,772 |
|
Property and equipment, net |
|
104,114 |
|
|
|
75,670 |
|
Operating lease right-of-use assets |
|
49,317 |
|
|
|
60,666 |
|
Goodwill |
|
862 |
|
|
|
862 |
|
Other assets |
|
48,039 |
|
|
|
22,252 |
|
Total assets |
$ |
433,144 |
|
|
$ |
448,222 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
5,543 |
|
|
$ |
7,517 |
|
Accrued liabilities |
|
83,362 |
|
|
|
65,497 |
|
Deferred revenue |
|
3,306 |
|
|
|
3,051 |
|
Operating lease liabilities, current portion |
|
15,159 |
|
|
|
13,031 |
|
Total current liabilities |
|
107,370 |
|
|
|
89,096 |
|
Debt, noncurrent portion |
|
34,950 |
|
|
|
34,935 |
|
Other noncurrent liabilities |
|
1,012 |
|
|
|
1,307 |
|
Operating lease liabilities, noncurrent portion |
|
79,715 |
|
|
|
83,072 |
|
Total liabilities |
|
223,047 |
|
|
|
208,410 |
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.001 par value – 5,000 shares authorized; none
issued and outstanding at December 31, 2023 and 2022 |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value – 100,000 shares authorized; 30,954
and 30,193 shares issued and outstanding at December 31, 2023
and 2022, respectively |
|
31 |
|
|
|
28 |
|
Additional paid-in capital |
|
855,784 |
|
|
|
762,380 |
|
Accumulated other comprehensive loss |
|
(112 |
) |
|
|
(396 |
) |
Accumulated deficit |
|
(645,606 |
) |
|
|
(522,200 |
) |
Total stockholders’ equity |
|
210,097 |
|
|
|
239,812 |
|
Total liabilities and stockholders’ equity |
$ |
433,144 |
|
|
$ |
448,222 |
|
|
|
|
|
|
|
|
|
IRHYTHM TECHNOLOGIES,
INC.Consolidated Statements of
Operations(In thousands, except per share
data)
|
(Unaudited)Three Months Ended December
31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue, net |
$ |
132,511 |
|
|
$ |
112,617 |
|
|
$ |
492,681 |
|
|
$ |
410,921 |
|
Cost of revenue |
|
45,085 |
|
|
|
33,910 |
|
|
|
160,875 |
|
|
|
129,289 |
|
Gross profit |
|
87,426 |
|
|
|
78,707 |
|
|
|
331,806 |
|
|
|
281,632 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
15,416 |
|
|
|
12,675 |
|
|
|
60,244 |
|
|
|
46,610 |
|
Selling, general and administrative |
|
100,114 |
|
|
|
86,730 |
|
|
|
385,645 |
|
|
|
322,198 |
|
Impairment and restructuring charges |
|
11,078 |
|
|
|
— |
|
|
|
11,078 |
|
|
|
26,608 |
|
Total operating expenses |
|
126,608 |
|
|
|
99,405 |
|
|
|
456,967 |
|
|
|
395,416 |
|
Loss from operations |
|
(39,182 |
) |
|
|
(20,698 |
) |
|
|
(125,161 |
) |
|
|
(113,784 |
) |
Interest expense |
|
(941 |
) |
|
|
(1,013 |
) |
|
|
(3,650 |
) |
|
|
(4,138 |
) |
Interest and other income, net |
|
1,679 |
|
|
|
1,586 |
|
|
|
6,155 |
|
|
|
2,036 |
|
Loss before income taxes |
|
(38,444 |
) |
|
|
(20,125 |
) |
|
|
(122,656 |
) |
|
|
(115,886 |
) |
Income tax provision |
|
255 |
|
|
|
73 |
|
|
|
750 |
|
|
|
269 |
|
Net loss |
$ |
(38,699 |
) |
|
$ |
(20,198 |
) |
|
$ |
(123,406 |
) |
|
$ |
(116,155 |
) |
Net loss per common share, basic and diluted |
$ |
(1.26 |
) |
|
$ |
(0.67 |
) |
|
$ |
(4.04 |
) |
|
$ |
(3.88 |
) |
Weighted-average shares, basic and diluted |
|
30,702 |
|
|
|
30,151 |
|
|
|
30,528 |
|
|
|
29,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRHYTHM TECHNOLOGIES,
INC.Reconciliation of GAAP to Non-GAAP Financial
Information(In thousands, except per share
data)(Unaudited)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(38,699 |
) |
|
$ |
(20,198 |
) |
|
$ |
(123,406 |
) |
|
$ |
(116,155 |
) |
Income tax provision |
|
|
255 |
|
|
|
73 |
|
|
|
750 |
|
|
|
269 |
|
Depreciation and amortization |
|
|
4,914 |
|
|
|
3,475 |
|
|
|
16,348 |
|
|
|
13,405 |
|
Interest expense |
|
|
941 |
|
|
|
1,013 |
|
|
|
3,650 |
|
|
|
4,138 |
|
Interest income |
|
|
(1,734 |
) |
|
|
(1,422 |
) |
|
|
(6,353 |
) |
|
|
(2,350 |
) |
Stock-based compensation |
|
|
23,846 |
|
|
|
15,793 |
|
|
|
77,204 |
|
|
|
57,740 |
|
Impairment and restructuring charges |
|
|
11,078 |
|
|
|
— |
|
|
|
11,078 |
|
|
|
26,608 |
|
Business transformation costs |
|
|
1,772 |
|
|
|
2,335 |
|
|
|
15,866 |
|
|
|
5,082 |
|
Adjusted EBITDA |
|
$ |
2,373 |
|
|
$ |
1,069 |
|
|
$ |
(4,863 |
) |
|
$ |
(11,263 |
) |
Adjusted net loss reconciliation: |
|
|
|
|
|
|
|
|
Net loss, as reported |
|
$ |
(38,699 |
) |
|
$ |
(20,198 |
) |
|
$ |
(123,406 |
) |
|
$ |
(116,155 |
) |
Impairment and restructuring charges |
|
|
11,078 |
|
|
|
— |
|
|
|
11,078 |
|
|
|
26,608 |
|
Business transformation costs |
|
|
1,772 |
|
|
|
2,335 |
|
|
|
15,866 |
|
|
|
5,082 |
|
Adjusted net loss |
|
$ |
(25,849 |
) |
|
$ |
(17,863 |
) |
|
$ |
(96,462 |
) |
|
$ |
(84,465 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net loss per share reconciliation: |
|
|
|
|
|
|
|
|
Net loss per share, as reported |
|
$ |
(1.26 |
) |
|
$ |
(0.67 |
) |
|
$ |
(4.04 |
) |
|
$ |
(3.88 |
) |
Impairment and restructuring charges |
|
|
0.36 |
|
|
|
— |
|
|
|
0.36 |
|
|
|
0.89 |
|
Business transformation costs |
|
|
0.06 |
|
|
|
0.08 |
|
|
|
0.52 |
|
|
|
0.17 |
|
Adjusted net loss per share |
|
$ |
(0.84 |
) |
|
$ |
(0.59 |
) |
|
$ |
(3.16 |
) |
|
$ |
(2.82 |
) |
Weight-average shares, basic and diluted |
|
|
30,702 |
|
|
|
30,151 |
|
|
|
30,528 |
|
|
|
29,916 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenses reconciliation: |
|
|
|
|
|
|
|
|
Operating expenses, as reported |
|
$ |
126,608 |
|
|
$ |
99,405 |
|
|
$ |
456,967 |
|
|
$ |
395,416 |
|
Impairment and restructuring charges |
|
|
(11,078 |
) |
|
|
— |
|
|
|
(11,078 |
) |
|
|
(26,608 |
) |
Business transformation costs |
|
|
(1,772 |
) |
|
|
(2,335 |
) |
|
|
(15,866 |
) |
|
|
(5,082 |
) |
Adjusted operating expenses |
|
$ |
113,758 |
|
|
$ |
97,070 |
|
|
$ |
430,023 |
|
|
$ |
363,726 |
|
Grafico Azioni iRhythm Technologies (NASDAQ:IRTC)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni iRhythm Technologies (NASDAQ:IRTC)
Storico
Da Giu 2023 a Giu 2024