Summary of iRhythm (IRTC) 2025 Conference Call Company Overview - **Company**: iRhythm Technologies, Inc. (IRTC) - **Industry**: Medical Technology, specifically in cardiac monitoring Key Points Market Position and Growth - iRhythm has seen strong momentum in its business, with growth exceeding 20% as of Q1 2025, following a consistent acceleration throughout 2024 [5][6] - The core market consists of 6.5 million tests annually, with iRhythm holding a 30% market share overall and over 70% in the long-term continuous monitoring (LTCM) segment [5][6] - There remains a significant opportunity to shift from traditional Holter monitors to LTCM, as 1.5 million short-term Holter tests are still performed annually [6][9] Competitive Landscape - The company is positioned to capture more market share in LTCM, with ongoing efforts to educate primary care physicians on the benefits of long-term monitoring [10][11] - Clinical studies, such as Camelot and Avalon, have demonstrated the superiority of iRhythm's Zio technology, showing the highest diagnostic yield and best patient outcomes [15][16] - Recent market access wins have allowed patients to bypass short-term Holter monitors and go directly to LTCM, expanding the potential patient base [17] Product Development and Innovation - iRhythm is on track to submit its next-generation product, Zio MCT, to the FDA by Q3 2025, which is expected to enhance its competitive position in the MCT segment [24][25] - The Zio MCT will extend wear time from 14 days to 21 days, addressing clinician concerns about monitoring duration [20][22] - The company is also exploring adjacent markets, such as sleep monitoring and multi-vital sign monitoring, to broaden its product offerings [45][46] Primary Care Strategy - A significant portion of growth is expected from primary care, with one-third of volumes currently being prescribed from this segment, up from 21% in 2023 [29][30] - There are 15.5 million patients with cardiac palpitations in primary care annually, presenting a substantial opportunity for LTCM [31][33] - iRhythm is implementing a two-pronged strategy to penetrate primary care, focusing on EHR integration and partnerships with value-based care entities [34][37] Regulatory and Remediation Efforts - The company has prioritized FDA remediation efforts following observations made in 2022, with over 80% of the remediation plan completed as of Q3 2025 [58][59] - iRhythm is proactively engaging with the FDA to ensure compliance and improve its quality management system [62][63] - The remediation activities have slightly delayed the Zio MCT submission, but the company remains confident in meeting its timelines [64] Market Dynamics and Competitor Impact - Competitive disruptions in the market have allowed iRhythm to capture additional business, retaining approximately 85% of the new business won during this period [50][51] - The company acknowledges that while the PFA (pulmonary vein isolation) procedures are a tailwind, they are not the primary driver of overall growth [53][54] Additional Insights - iRhythm's focus on generating clinical evidence continues to be a cornerstone of its strategy, helping to differentiate its products in a competitive landscape [14][15] - The company is exploring external partnerships to accelerate the development of new monitoring parameters, while also relying on internal teams for innovation [47][48] This summary encapsulates the key insights and strategic directions discussed during the iRhythm conference call, highlighting the company's growth potential, competitive advantages, and ongoing efforts in product development and regulatory compliance.

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]

iRhythm (IRTC) Q1 2025 Earnings Call May 01, 2025 04:30 PM ET Company Participants Stephanie Zhadkevich - Director of Investor RelationsQuentin Blackford - President, CEO & DirectorDaniel Wilson - CFOAllen Gong - Vice PresidentMacauley Kilbane - Equity Research AssociateSuraj Kalia - Managing DirectorJon Young - DirectorRichard Newitter - Managing Director Conference Call Participants Kallum Titchmarsh - AnalystNone - AnalystNathan Treybeck - AnalystDavid Rescott - Senior Research AnalystDavid Saxon - Senio ...

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 ...

iRhythm (IRTC) Q1 2025 Earnings Call May 01, 2025 04:30 PM ET Company Participants Stephanie Zhadkevich - Director of Investor RelationsQuentin Blackford - President, CEO & DirectorDaniel Wilson - CFOAllen Gong - Vice PresidentMacauley Kilbane - Equity Research AssociateSuraj Kalia - Managing DirectorJon Young - DirectorRichard Newitter - Managing Director Conference Call Participants Kallum Titchmarsh - AnalystNone - AnalystNathan Treybeck - AnalystDavid Rescott - Senior Research AnalystDavid Saxon - Senio ...