SAN FRANCISCO, May 21, 2025 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ:IRTC), a leading digital health care company focused on creating trusted solutions that detect, prevent, and predict disease, today announced that its management team is scheduled to present at the following investor conferences. William Blair 45th Annual Growth Stock Conference on Wednesday, June 4, 2025, at 2:00 p.m. Central Time (12:00 p.m. Pacific Time)Goldman Sachs 46th Annual Global Healthcare Conference on Tuesday, Jun ...

Summary of iRhythm (IRTC) Conference Call Company Overview - **Company**: iRhythm Technologies, Inc. (IRTC) - **Industry**: Medical Devices, specifically cardiac monitoring solutions Key Points and Arguments Q1 Performance and Guidance - Q1 revenue beat expectations by $5 million, leading to a $15 million increase in guidance for 2025 [3][4] - Achieved over 20% year-over-year growth for the second consecutive quarter, indicating strong business momentum [4][5] - The primary driver for the Q1 performance was the significant growth of the Zio AT product, which is expected to sustain through 2025 [5][6] Seasonality and Revenue Distribution - Revenue distribution for 2025 is expected to follow historical seasonality: approximately 22.5% in Q1, 25% in Q2, 25% in Q3, and 27.5% in Q4 [6][7] Competitive Landscape - iRhythm capitalized on competitive disruptions in late Q3 and Q4 of 2024, gaining new accounts [8][9] - Despite competitors returning to the market, iRhythm has maintained a significant portion of the business acquired during the disruption [9] Market Share and Product Performance - iRhythm holds a 70% market share in the Zio monitoring segment, with expectations of continued share growth [11][12] - The Zio Monitor, launched 18 months ago, has been well-received, contributing to the company's strong competitive positioning [12] Gross Margin and Tariff Impact - Gross margin guidance for the year is flat, with an anticipated negative impact of 50 to 75 basis points from tariffs, primarily affecting imports from China and Taiwan [13][14] - The company is exploring mitigation strategies to reduce tariff exposure, which may lead to gross margin expansion in 2025 [15][17] FDA Submissions and Future Products - iRhythm plans to submit the next-generation Zio MCT product for FDA approval in Q3 2025, which is expected to enhance market share [20][21] - The company aims for a faster launch of Zio MCT compared to previous product transitions [22] Primary Care Strategy - The partnership with Epic is expected to enhance clinician workflows and has already shown a 20% average volume uplift in pilot accounts [26][28] - Over one-third of Q1 volume came from primary care prescribers, up from approximately 20% in 2023, indicating a successful land-and-expand strategy [33][35] Innovative Channel Partnerships - Innovative channel partnerships are beginning to contribute to volume, with low single-digit percentages of overall volume but showing growth from near zero [37] Financial Outlook - iRhythm anticipates slightly negative free cash flow for 2025, with expectations to turn positive in 2026 [53][54] - Long-term goals include achieving 15% EBITDA margins at $1 billion in revenue, with potential for mid-20% margins beyond that [49] International Market and Reimbursement - The Japanese market remains strategically important despite disappointing reimbursement rates, with plans to generate in-country clinical evidence for future reimbursement cycles [55][57] Pricing Strategy - A low single-digit pricing headwind is expected for the year, consistent with past trends, while the company focuses on volume growth [59] Additional Important Insights - iRhythm is committed to operational excellence and efficiency improvements, leveraging automation and global infrastructure to enhance profitability [41][44] - The company is actively investing in R&D for adjacent market opportunities, including multi-sensing capabilities [50][52]

Core Insights - iRhythm Technologies Inc reported Q1 2025 revenue of $158.7 million, a 20.3% increase year over year, surpassing the consensus estimate of $153.38 million [1] - The adjusted EPS loss was 95 cents, an improvement from a loss of $1.23 a year ago, also beating the consensus estimate of 98 cents [1] - Gross profit reached $109.2 million, up 24.8% from $87.5 million in the same period of 2024, with a gross margin of 68.8%, an increase from 66.3% [2] Revenue and Growth - The revenue increase was primarily driven by heightened demand for Zio services [1] - iRhythm's fiscal 2025 sales guidance is projected at $690 million to $700 million, an increase from the previous guidance of $675 million to $685 million and above the consensus of $681.56 million [3] Market Expansion - The company has recently launched its Zio long-term continuous ECG monitoring system in Japan, expanding its market presence to a total of six markets outside the U.S. [3] Analyst Ratings and Price Action - Analysts have shown positive sentiment, with Wells Fargo upgrading iRhythm from Equal-Weight to Overweight and raising the price target from $104 to $130 [5] - Baird and Needham also maintained their Outperform and Buy ratings, respectively, with increased price targets [5] - Following the positive earnings report, IRTC stock rose by 19.1% to $129.37 [4]

Company Performance - iRhythm Technologies reported a quarterly loss of $0.95 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.89, but an improvement from a loss of $1.47 per share a year ago, indicating a year-over-year improvement [1] - The company posted revenues of $158.68 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.34% and showing an increase from $131.93 million in the same quarter last year [2] - Over the last four quarters, iRhythm Technologies has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - iRhythm Technologies shares have increased by approximately 18.5% since the beginning of the year, contrasting with a decline of 5.3% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.55 on revenues of $171.04 million, and for the current fiscal year, it is -$1.75 on revenues of $681.28 million [7] Industry Outlook - The Medical Info Systems industry, to which iRhythm Technologies belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of iRhythm Technologies' stock may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

Cautionary statement re forward-looking statements, non-GAAP measures and other matters Certain data in this presentation was obtained from various external sources, and neither "iRhythm Technologies, Inc. ("iRhythm" or the "Company") nor its affiliates, advisers or representatives has verified such data with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives makes any representations as to the accuracy of that third-party data or undertakes to updat ...

Financial Data and Key Metrics Changes - iRhythm reported Q1 2025 revenue of $158.7 million, representing a 20.3% year-over-year growth compared to Q1 2024 [10][24] - Adjusted net loss for Q1 2025 was $30.3 million, or $0.95 per share, an improvement from an adjusted net loss of $38.1 million, or $1.23 per share in Q1 2024 [26] - Adjusted EBITDA margin improved to negative 1.7% in Q1 2025 from negative 9.2% in Q1 2024, reflecting a 750 basis points improvement [26][23] Business Line Data and Key Metrics Changes - The Zio AT product line showed strong demand, contributing significantly to revenue growth, with Zio AT volume reaching its highest level to date [14] - New store growth, defined as accounts opened in the last twelve months, accounted for approximately 65% of year-over-year volume growth [24] - Home enrollment for Zio Services in the U.S. was approximately 23% of volume in Q1 2025 [24] Market Data and Key Metrics Changes - iRhythm's international business showed strong demand, particularly in the UK, where record volume was achieved [15] - The company launched its services in Japan, marking its entry into the second-largest ambulatory cardiac monitoring market globally [16] - The U.S. market has approximately 27 million patients who may be unaware of potential cardiac arrhythmias, representing a significant opportunity for growth [12] Company Strategy and Development Direction - iRhythm is focused on expanding its presence in upstream care pathways and primary care channels, aiming to drive earlier monitoring and diagnosis [12][14] - The company is leveraging partnerships with innovative health channel partners to enhance its market penetration and improve patient outcomes [13][14] - iRhythm's strategy includes a commitment to quality and operational excellence, with ongoing remediation activities to address regulatory compliance [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macroeconomic uncertainties, highlighting strong demand for Zio products [22][31] - The company raised its full-year 2025 revenue guidance to $690 million to $700 million, reflecting strong Q1 performance and durable volume growth [28] - Management emphasized the importance of upstream intervention in healthcare, aligning with current trends towards cost-effective solutions [22] Other Important Information - iRhythm surpassed 10 million cumulative patient reports, underscoring its commitment to superior patient care [11] - The company is actively working on FDA submissions for new products, including the Zio MCT, expected to be filed in Q3 2025 [30][71] - iRhythm is addressing potential supply chain concerns and cost implications due to tariffs, implementing strategies to mitigate these impacts [21][29] Q&A Session Summary Question: Outlook and Confidence in Guidance - Management noted strong momentum in the business, particularly with Zio AT, contributing to the raised guidance for the year [38][40] Question: Japan Market and Reimbursement - Management acknowledged disappointment with reimbursement rates in Japan but emphasized the strategic importance of the market and plans to generate clinical evidence for higher rates [44][46] Question: Zio AT Momentum and Market Share - Management indicated that Zio AT's success is due to both new account growth and retention of existing customers, with positive word-of-mouth contributing to market share gains [50][82] Question: Epic Integration Impact - Early results from Epic integration showed a high 20% increase in prescribing patterns in integrated accounts, although no incremental benefit was baked into guidance yet [58][59] Question: Volume from Innovative Channels - Management reported that volume from innovative channels is in the low single digits but is growing, with a significant opportunity in primary care [62][64] Question: Multi-parameter Sensor Opportunities - Management expressed interest in multi-parameter sensing capabilities and potential M&A opportunities, while remaining focused on internal innovation [66] Question: FDA Conversations and Facility Inspection - Management confirmed confidence in submitting Zio MCT to the FDA in Q3 2025, with ongoing remediation efforts progressing well [71][73]

Financial Performance - Revenue increased by $26.7 million, or 20%, to $158.7 million for the three months ended March 31, 2025, compared to $131.9 million for the same period in 2024[159] - Gross profit rose by $21.7 million, or 25%, to $109.2 million for the three months ended March 31, 2025[159] - Adjusted EBITDA for the three months ended March 31, 2025, was a loss of $2.6 million, an improvement from a loss of $12.1 million in the same period of 2024[141] - Net loss decreased by $14.97 million, or 33%, to $30.7 million for the three months ended March 31, 2025, compared to a net loss of $45.7 million for the same period in 2024[159] Revenue Sources - The proportion of revenue from contracted third-party payors was 53% for the three months ended March 31, 2025, compared to 54% in the same period of 2024[137] Expenses - Research and development expenses increased by $4.5 million, or 27%, to $21.5 million for the three months ended March 31, 2025[159] - Selling, general and administrative expenses increased by $11.3 million, or 10%, to $120.0 million for the three months ended March 31, 2025, compared to $108.7 million in the same period of 2024[165] - Cost of revenue increased by $5.0 million, or 11%, to $49.5 million for the three months ended March 31, 2025, compared to $44.4 million for the same period in 2024[161] Cash Flow - Cash used in operating activities was $7.9 million for the three months ended March 31, 2025, a decrease of $44.1 million from $52.0 million used in the same period of 2024[176] - Cash used in investing activities was $38.1 million for the three months ended March 31, 2025, an increase of $78.1 million compared to cash provided by investing activities of $40.0 million in the prior year[177] - Cash provided by financing activities was $1.7 million for the three months ended March 31, 2025, a decrease of $502.9 million from $504.6 million in the same period of 2024[178] - As of March 31, 2025, the company had cash and cash equivalents of $375.3 million and marketable securities of $145.3 million[170] - The company reported cash, cash equivalents, and marketable securities of $520.6 million as of March 31, 2025, down from $535.6 million as of December 31, 2024[195] Agreements and Obligations - The company has achieved milestone payments totaling $11.0 million under the Development Agreement with Verily, with potential additional payments of $1.75 million[172] - The company entered into a Technology License Agreement with BioIntelliSense, Inc., which includes a $15.0 million upfront fee and $40.0 million in convertible promissory notes[173][174] - As of March 31, 2025, the company had approximately $67.7 million in open purchase orders and contractual obligations, with the majority due within one year[189] Interest and Debt - Interest income increased by $1.86 million, or 61%, to $4.92 million for the three months ended March 31, 2025[159] - A hypothetical 10% change in interest rates would have impacted interest income by $0.5 million for the three months ended March 31, 2025, compared to $0.3 million for the same period in 2024[196] - The company had $661.3 million in outstanding aggregate principal amount of fixed-rate debt related to its 2029 Notes, with an estimated fair value of $689.2 million as of March 31, 2025[197] - The 2029 Capped Calls are expected to reduce potential dilution to common stock upon conversion of the 2029 Notes[198] Risk Management - The company does not anticipate being exposed to material risks due to changes in interest rates[196] - As of March 31, 2025, there had not been a material change in foreign currency risk information disclosed in the previous annual report[199] - The company has not used any derivative financial instruments to manage interest rate risk exposure[196] - There were no material changes to the company's critical accounting estimates during the three months ended March 31, 2025[192] - The company evaluates its estimates and judgments based on historical experience and other reasonable factors[191] Operational Highlights - The company provided Zio Services to over eight million patients and collected over 2 billion hours of curated heartbeat data[135] - The utilization of home enrollment services for Zio patches has significantly increased, adapting to the needs of physicians and patients[144]

iRhythm (IRTC) Q1 2025 Earnings Call May 01, 2025 04:30 PM ET Speaker0 afternoon. Thank you for attending the iRhythm Technologies Inc. First Quarter twenty twenty five Earnings Conference Call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Again, due to the interest of time, we ask that you ask one question and to re queue for any follow-up questions. I would now like to ...

Financial Data and Key Metrics Changes - iRhythm reported Q1 2025 revenue of $158.7 million, representing a 20.3% year-over-year growth compared to Q1 2024 [10][24] - Adjusted net loss for Q1 2025 was $30.3 million, or $0.95 per share, an improvement from an adjusted net loss of $38.1 million, or $1.23 per share in Q1 2024 [26] - Adjusted EBITDA for Q1 2025 was negative $2.6 million, improving from negative $14.6 million in Q1 2024, reflecting a 750 basis point improvement in adjusted EBITDA margin [26][23] Business Line Data and Key Metrics Changes - The Zio AT product line showed strong demand, contributing significantly to revenue growth, with Zio AT volume reaching its highest level to date [14] - New store growth, defined as accounts opened in the last twelve months, accounted for approximately 65% of year-over-year volume growth [24] - The mobile cardiac telemetry service achieved its strongest quarter in history, indicating robust demand for Zio AT [14] Market Data and Key Metrics Changes - iRhythm's international business showed strong demand, particularly in the UK, with record volume achieved [15] - The company launched its services in Japan, marking its entry into the second-largest ambulatory cardiac monitoring market globally [16] - Approximately 27 million patients in the U.S. are at high risk for cardiac arrhythmias but remain undiagnosed, representing a significant market opportunity [12] Company Strategy and Development Direction - iRhythm is focused on expanding its presence in upstream care pathways and primary care channels, aiming to drive earlier monitoring and diagnosis [12][14] - The company is leveraging partnerships with innovative health channel partners to enhance its market penetration and improve patient outcomes [13] - iRhythm's strategy includes a commitment to quality and operational excellence, with ongoing remediation activities to address regulatory compliance [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macroeconomic uncertainties, highlighting strong demand for Zio services [22][31] - The company raised its full-year 2025 revenue guidance to $690 million to $700 million, reflecting strong Q1 performance and durable volume growth [28] - Management emphasized the importance of upstream intervention in healthcare, aligning with current trends towards cost-effective solutions [22] Other Important Information - iRhythm surpassed 10 million cumulative patient reports, underscoring its commitment to superior patient care [11] - The company is actively working on FDA submissions for new products, including the Zio MCT, expected to be filed in Q3 2025 [30][74] - iRhythm is addressing potential supply chain concerns and cost implications due to tariffs, implementing strategies to mitigate these impacts [21][29] Q&A Session Summary Question: Outlook and Confidence in Guidance - Management noted strong momentum in the business, particularly with Zio AT, contributing to the raised guidance for the year [39][41] Question: Japan Market and Reimbursement - Management acknowledged disappointment with the reimbursement rate in Japan but emphasized the strategic importance of the market and plans to generate clinical evidence for higher reimbursement [45][48] Question: Zio AT Momentum - Management attributed Zio AT's success to strong word-of-mouth and the product's superior features compared to competitors [52][56] Question: Epic Integration Impact - Early results from Epic integration showed a high 20% increase in prescribing patterns in integrated accounts, indicating positive early signs [60][61] Question: Volume from Innovative Channels - Management indicated that volume from innovative channels is in the low single digits but is growing, with significant potential for future expansion [64][67] Question: Multi-parameter Sensor Opportunities - Management expressed interest in multi-parameter sensing capabilities and potential M&A opportunities, while emphasizing internal innovation [69][70] Question: FDA Conversations and Facility Inspection - Management expressed confidence in submitting Zio MCT to the FDA in Q3 2025 and ongoing progress with remediation efforts [73][76]

Core Viewpoint - iRhythm Technologies has launched its Zio long-term continuous ECG monitoring system in Japan, offering up to 14 days of uninterrupted ECG monitoring, which is a significant improvement over existing options in the market [1][4]. Company Overview - iRhythm Technologies, Inc. is a leading digital health care company focused on creating solutions that detect, predict, and prevent disease through wearable biosensors and cloud-based data analytics [14]. - The company has a strong commitment to improving patient outcomes, supported by over 125 original research manuscripts and insights from more than 2 billion hours of curated heartbeat data [7]. Product Details - The Zio ECG Recording and Analysis System includes a patch-based ECG monitoring device that can be worn for up to 14 days and utilizes a deep-learned AI algorithm approved by Japan's Pharmaceuticals and Medical Devices Agency (PMDA) [3][5]. - The system demonstrates 99% patient compliance with prescribed wear time and 99% analyzable data, providing high-quality, actionable insights [5]. - The Zio service is associated with the highest diagnostic yield and lowest likelihood of retesting compared to other monitoring services, including Holter monitoring [5]. Market Opportunity - Japan is the second largest ambulatory cardiac monitoring market globally, with an estimated 1.6 million tests prescribed annually, a number expected to rise due to the aging population and increasing prevalence of cardiac arrhythmias [10][11]. - The launch of the Zio system is timely, addressing the growing demand for early and accurate detection of arrhythmias in Japan [4]. Clinical Validation - The clinical value of the Zio LTCM service has been validated through studies, including the CAMELOT study, which found it to be associated with the highest yield of specified arrhythmia diagnosis and the lowest likelihood of repeat testing [6][8]. - The Zio service combines advanced AI with expert clinical review to support accurate and timely diagnoses, enhancing patient care [8]. Distribution and Availability - The Zio ECG Recording and Analysis System will be available to healthcare customers in Japan starting May 2025, with nationwide availability expected by July 2025, through Senko Medical Instrument, the exclusive distribution partner [12].