iRhythm(US:IRTC)2023-02-24 04:51Financial Data and Key Metrics Changes - The company reported revenues of $112.6 million for Q4 2022, reflecting a 38% year-over-year growth and a sequential growth of 8% [69] - Adjusted net loss for Q4 2022 was $17.9 million, or a loss of $0.59 per share, compared to a loss of $19.1 million in Q3 2022 [51] - Full year 2022 revenues reached $410.9 million, representing a 27% growth compared to 2021 [77] - Gross margin for Q4 was 69.9%, with a full year gross margin of 68.5% [50][77] - Adjusted EBITDA for Q4 was positive at $1.1 million, showing significant improvement year-over-year [79] Business Line Data and Key Metrics Changes - The Zio XT service saw strong demand, with new account openings reaching record levels [69] - Home enrollment accounted for about 20% of volume in Q4 2022 [77] - The Zio AT service continued to grow, although at a slower pace compared to the first nine months of 2022 [69] Market Data and Key Metrics Changes - The company anticipates full year revenue growth of approximately 16% to 18% for 2023, amounting to $475 million to $485 million [53] - Approximately 75% of Medicare and commercial patients eligible for coverage now have a $50 co-pay or less [43] Company Strategy and Development Direction - The company is focusing on expanding into primary care, targeting over 14 million patients with cardiac-related issues annually [42] - A nationwide agreement with One Medical has been established to enhance technology-powered solutions [36] - The company plans to launch the next-generation Zio Monitor in the back half of 2023, which is expected to improve patient experience [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating operational challenges and expects to see improvements in return device rates and AT business performance [58] - The company is optimistic about the early signs of improvement in healthcare staffing challenges experienced in 2022 [73] - Management highlighted the importance of EHR integration for creating stickiness with accounts and driving growth [30] Other Important Information - The company has cleared material weaknesses in its internal control environment, enhancing operational efficiency [52][80] - The anticipated launch of the Zio Watch is expected to provide complementary monitoring solutions [75] Q&A Session Summary Question: Update on 16% to 18% guidance range and challenges faced - Management feels confident about business progress and expects to navigate through growth headwinds effectively [58] Question: Insights on the new sensor's limited launch - Early indicators from the limited launch of the new sensor are positive, with expectations for a broader launch later in the year [61] Question: Status of AT volumes and growth expectations - The AT business is expected to grow around 30%, with confidence in returning to previous growth levels as operational issues are resolved [92]