iRhythm(IRTC)2025-05-01 21:21Financial 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]