iRadimed(US:IRMD)2022-02-04 19:09Financial Data and Key Metrics Changes - Q4 2021 revenue was $11.9 million, a 39% increase over Q4 2020, and a 9% increase over Q3 2021 [5][13] - Non-GAAP earnings were $0.33, representing a 373% increase compared to Q4 2020 [5][18] - Gross margin improved to 77.9% in Q4 2021 from 75.3% in Q4 2020 [15] - Operating expenses were $6.1 million, or 51.7% of revenue, down from 67.7% in the previous year [17] Business Line Data and Key Metrics Changes - Device revenue increased by 49.7% to $8 million in Q4 2021, driven by a 50.9% increase in monitor revenue and a 48.5% increase in IV pump revenue [13][14] - Revenue from disposables and service rose by 24.3% to $3.4 million [15] - Revenue from maintenance contracts remained consistent at $0.5 million [15] Market Data and Key Metrics Changes - Domestic sales increased by 33.3% to $9.5 million, while international sales surged by 66.8% to $2.4 million [13] - Domestic revenue accounted for 79.8% of total revenue in Q4 2021, down from 83.1% in Q4 2020 [13] Company Strategy and Development Direction - The company is focusing on regulatory clearance for its next-generation IV pump and expects potential clearance in the second half of 2022 [7][10] - The company anticipates continued market share growth with its monitor and plans to ramp up sales of the ferromagnetic detector (FMD) in 2022 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for products, with record bookings up 39% year-over-year [6][10] - The company expects revenue for 2022 to be between $51.4 million and $52.2 million, with GAAP earnings of $0.82 to $0.90 [11] - Management noted that supply chain issues are being managed, with expectations for improvement in the second half of 2022 [38] Other Important Information - Cash from operations grew to $11.3 million for the full year 2021, up from $5.8 million in 2020 [19] - The company recognized a tax benefit of approximately $779,000 in Q4 2021 compared to a tax expense of $27,000 in Q4 2020 [18] Q&A Session Summary Question: Is the backlog tilted in one category versus the other? - Management indicated that backlog is healthy across pumps, monitors, and disposables [23] Question: Does production catch up to feel the backlog? - Management believes there is a steady-state backlog and discussions are ongoing about managing lead times [24] Question: Is the guidance reliant on the next-generation pump? - No revenue from the next-gen pump is included in the guidance; significant contributions are expected in 2023 [26][27] Question: How do you see sales unfolding in the U.S. market versus the European market? - The domestic market is recovering faster than Europe, which is still facing COVID-related challenges [37] Question: What assumptions are being made about supply chain issues in 2022? - Management sees a glimmer of hope for easing supply chain issues in the second half of the year [38] Question: What are the priorities for allocating capital given the cash position? - Discussions regarding capital allocation are ongoing at the board level, but no specific comments were provided [41]