iRhythm(IRTC)

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All You Need to Know About iRhythm Technologies (IRTC) Rating Upgrade to Buy
ZACKS· 2024-08-07 17:00
Core Viewpoint - iRhythm Technologies (IRTC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade reflects optimism about iRhythm Technologies' earnings outlook, potentially leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - For the fiscal year ending December 2024, iRhythm Technologies is projected to earn -$2.97 per share, representing a 26.5% change from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for iRhythm Technologies has increased by 7.9%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places iRhythm Technologies in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].
iRhythm(IRTC) - 2024 Q2 - Earnings Call Transcript
2024-08-02 12:06
Financial Data and Key Metrics Changes - The company achieved revenue of $148 million in Q2 2024, representing a 19.3% growth compared to the prior year [6][22]. - Adjusted net loss for Q2 2024 was approximately $18.8 million, or a loss of $0.61 per share, compared to an adjusted net loss of $13.1 million, or $0.43 per share in Q2 2023 [27]. - Adjusted EBITDA for Q2 2024 was $5 million, or 3.4% of revenue, compared to 3.5% in Q2 2023 [27]. - Gross margin for Q2 2024 was 69.9%, ahead of expectations, benefiting from operational efficiencies and one-time items [24][25]. Business Line Data and Key Metrics Changes - New store growth accounted for approximately 40% of year-over-year volume growth, with home enrollment for Zio services in the U.S. at approximately 22% of volume in Q2 [22]. - The market access team successfully negotiated six greenfield contracts, opening coverage for Zio for an incremental 2.9 million covered lives [23]. Market Data and Key Metrics Changes - The company is expanding into primary care, estimating over 15 million patients with cardiac-related palpitations visiting physicians annually [8]. - The anticipated commercial launch in Western Europe could represent an incremental market opportunity of 1.5 million patients benefiting from Zio each year [16]. Company Strategy and Development Direction - The company is focused on expanding its core business while also exploring new opportunities, including international markets and adjacent indications like obstructive sleep apnea [15][18]. - The strategic pillars for future growth include enhancing operational efficiencies and expanding market access through favorable payer negotiations [15][24]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of the business, raising the 2024 revenue outlook to between $580 million and $590 million [28]. - The company anticipates continued volume growth in its core U.S. market and plans to maintain a focus on operational efficiency and financial sustainability [36]. Other Important Information - The company is addressing observations from the FDA inspections and is committed to resolving the issues noted [14][42]. - A transition in the CFO role was announced, with Daniel Wilson stepping into the position [20][32]. Q&A Session Summary Question: Observations from FDA inspections - Management indicated that they will respond to the FDA's observations within 15 days and emphasized that the discussions are focused on quality systems rather than product safety or efficacy [39][42]. Question: Revenue guidance and drivers - Management noted that the revenue guidance increase reflects strong momentum across new store growth and primary care contributions [44]. Question: Gross margin improvements - Management explained that one-time benefits from procurement efficiencies and logistical savings contributed to the gross margin, but these will not repeat in the future [47][49]. Question: DOJ investigation scope - Management stated that the DOJ's inquiry appears to focus primarily on the Zio AT product, but the document requests have been broad [51][66]. Question: Sleep market evaluation - Management clarified that the market evaluation for obstructive sleep apnea will not require significant incremental investment and will leverage third-party sleep tests initially [56][57].
iRhythm(IRTC) - 2024 Q2 - Earnings Call Presentation
2024-08-02 04:57
Financial Performance & Guidance - Second quarter revenue reached $148 million[7] - The company anticipates 2024 annual revenue between approximately $578 million and $588 million[19] - Gross margin is projected to be around 68% to 69% of revenues[20] - Adjusted EBITDA margin is expected to be approximately 3% to 4% of revenues[20] Market Opportunity & Growth - The core U S market consists of 64 million ambulatory cardiac monitoring tests annually[9] - There's an expansion opportunity in the symptomatic market with over 15 million primary care patients suspected of cardiac disease[9] - An additional expansion opportunity exists in the at-risk population, encompassing over 12 million individuals in the U S with a high risk of undiagnosed arrhythmias[9] - The international market represents a total addressable market (TAM) of over $1 billion with over 5 million tests in prioritized countries across EMEA and Asia Pacific[8, 13] Strategic Initiatives - Approximately 21% of 2023 US Zio XT and Zio monitor registrations were written by PCPs[9] - The company is pursuing regulatory approval in Japan via a high medical needs pathway, targeting PMDA approval in 2024[13]
IRhythm Technologies (IRTC) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2024-08-01 23:15
IRhythm Technologies (IRTC) came out with a quarterly loss of $0.61 per share versus the Zacks Consensus Estimate of a loss of $0.92. This compares to loss of $0.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 33.70%. A quarter ago, it was expected that this company would post a loss of $0.99 per share when it actually produced a loss of $1.47, delivering a surprise of -48.48%. Over the last four quarters, the company has ...
iRhythm Technologies Announces Chief Financial Officer Transition
Newsfilter· 2024-08-01 20:06
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, announced today that Brice Bobzien, Chief Financial Officer, will step down for personal reasons effective August 31, 2024. He will be succeeded by Daniel Wilson, iRhythm's current Executive Vice President of Corporate Development and Investor Relations. Mr. Bobzien has served as the CFO since 2022, a ...
iRhythm Technologies to Report Second Quarter 2024 Financial Results on August 1, 2024
GlobeNewswire News Room· 2024-07-18 20:05
SAN FRANCISCO, July 18, 2024 (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 it will release financial results for the second quarter 2024 after the close of trading on Thursday, August 1, 2024. The company's management team will host a corresponding conference call beginning at 1:30 p.m. PT / 4:30 p.m. ET. Interested parties may access a live and archived ...
iRhythm Technologies Achieves Significant Operational Milestone with Launch of Initial Phase of Manufacturing Automation
Newsfilter· 2024-06-17 20:05
Core Insights - iRhythm has launched an advanced autohandler machine to automate the testing of printed circuit board assembly (PCBA) components for the Zio monitor, enhancing manufacturing efficiency and streamlining processes [1][4] - The automation is expected to significantly increase scalability for iRhythm, allowing for production capacity of up to 10 million units annually, which is crucial for meeting global demand for Zio ECG monitoring products [2][4] - The Zio monitor, launched in September 2023, is a prescription-only ECG monitor that integrates with the Zio long-term cardiac monitoring service, which includes advanced AI algorithms for ECG data analysis and a comprehensive end-of-wear report with a 99% physician agreement [3][6] 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 [3][4] - The company aims to deliver better data, insights, and health outcomes for patients, emphasizing a relentless focus on patient care [3][5] - The successful launch of manufacturing automation marks a significant milestone for the company, expected to yield substantial cost savings and set the stage for future growth and innovation [4][5]
iRhythm Technologies to Present at the 2024 Truist Securities MedTech Conference
GlobeNewswire News Room· 2024-06-04 20:05
SAN FRANCISCO, June 04, 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, announced today that the company will be participating in the upcoming Truist Securities MedTech Conference. iRhythm's management is scheduled to participate in a fireside chat on Tuesday, June 18, at 9:20 a.m. Eastern Time. Interested parties may access a live and archived webcast of the event on the ...
iRhythm Technologies to Present at the William Blair 44th Annual Growth Stock Conference
globenewswire.com· 2024-05-22 20:05
SAN FRANCISCO, May 22, 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, announced today that the company will be participating in the upcoming William Blair 44th Annual Growth Stock Conference. Investor Relations Contact Stephanie Zhadkevich investors@irhythmtech.com Media Contact Kassandra Perry irhythm@highwirepr.com iRhythm's management is scheduled to present on Wednes ...
iRhythm(IRTC) - 2024 Q1 - Earnings Call Transcript
2024-05-04 05:32
Financial Data and Key Metrics Changes - The company achieved revenue of $131.9 million in Q1 2024, representing an 18.4% growth compared to Q1 2023 [11][34] - Adjusted operating expenses were $125.7 million, up 10% sequentially and 15% year-over-year [36] - Adjusted net loss in Q1 was approximately $38.1 million, or a loss of $1.23 per share, compared to a loss of $33.4 million, or $1.10 per share in Q1 2023 [62] - The company ended Q1 with approximately $569.1 million in unrestricted cash and short-term investments [40] Business Line Data and Key Metrics Changes - The company reported strong revenue volume growth driven by new account openings and deeper penetration within existing accounts [11][34] - New store growth accounted for approximately 46% of year-over-year volume growth, with home enrollment for Zio Services at about 21% of volume in Q1 [60] - Gross margin for Q1 was 66.3%, in line with expectations [60] Market Data and Key Metrics Changes - The company has seen continued traction in large integrated multidisciplinary care networks, with nearly half of accounts ordering Zio Services having at least one primary care prescriber [19] - In Europe and Japan, there is significant unmet clinical need for improved arrhythmia detection, with ongoing efforts to expand into these markets [24][30] Company Strategy and Development Direction - The company is focused on expanding its primary care channel and has entered partnerships with several national primary care networks [6][5] - A collaboration with Epic Aura aims to streamline the integration of Zio services into health systems, potentially saving up to 75% of the time typically required for integration [20][22] - The company is exploring adjacent markets, including a sleep pilot program to validate the value of streamlining the journey to a sleep diagnosis [25][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued market capture in 2024, driven by strong fundamentals in the core business [5] - The company anticipates full-year revenue of approximately $578 million to $588 million, with material improvement expected in the back half of the year [37][39] - Management highlighted the importance of addressing the FDA warning letter and DOJ subpoena while maintaining focus on operational excellence [65][106] Other Important Information - The company has received CE marking under EU MDR for Zio monitor and ZEUS system, with plans for commercial launch in several European countries in the latter half of 2024 [30] - The company is preparing for the submission of a 510(k) for the new Zio MCT product in the second half of 2024 [31][81] Q&A Session Summary Question: Is the strong momentum from Q1 continuing into Q2? - Management confirmed that momentum has continued into Q2, with strong demand for both the monitor and AT product lines [70] Question: How meaningful are the time savings from the Epic Aura integration? - Management agreed that the time savings are significant and will likely lead to market expansion, with expectations for metrics to improve as the integration progresses [72][74] Question: Can you provide an update on the Signify Health partnership? - Management stated that the partnership is still in the pilot phase but expects a broader commercial launch in the back half of the year [86] Question: What is the current status of the FDA warning letter resolution? - Management expressed confidence in the collaboration with the FDA and the progress being made towards resolution [102][104] Question: What is the expected market share for the new MCT product? - Management indicated that while it is difficult to predict exact market share, they believe there is significant opportunity for growth in the MCT market [108]