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iRadimed(IRMD) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was reported at $19.4 million, an increase of 11% compared to Q4 2023 [16] - For fiscal year 2024, revenue increased 12% to $73.2 million [16] - Gross profit for Q4 2024 was $76.1 million, with a gross margin of 76.1%, slightly down from 76.9% in Q4 2023 [17][18] - GAAP diluted earnings per share increased 11% from Q4 2023 to $0.40 per share [21] - Non-GAAP adjusted net income for Q4 2024 was $0.44 per diluted share, up from $0.39 in Q4 2023 [21] Business Line Data and Key Metrics Changes - Domestic sales increased 21% to $16.5 million, while international sales decreased 24% to $2.9 million [17] - Device revenue increased 12% to $14.3 million in Q4 2024, driven by a 34% increase in pump revenue [17] - Revenue from disposables and services increased by 9% for both Q4 2024 and fiscal 2024 [17] Market Data and Key Metrics Changes - Domestic revenue accounted for approximately 85% of total revenue in Q4 2024, compared to 78% in Q4 2023 [17] - The company expects to see strong performance in the first half of 2025, supported by a strong backlog [47] Company Strategy and Development Direction - The company plans to focus on monitor sales in 2025, with adjustments made to sales team incentives [26][29] - A new facility is under construction, with completion expected by June 2025 [12][23] - The company anticipates launching the new 3870 MR IV pump in mid-2025, with significant sales expected in 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving FDA clearance for the new pump by mid-2025, despite potential delays [10] - The company expects revenue guidance for Q1 2025 to be between $19.2 million and $19.4 million [13] - Management noted that tariffs on certain components would have a negligible impact on gross margins [60] Other Important Information - Operating expenses for Q4 2024 were $9 million, or 46% of revenue, compared to $8.3 million, or 47% of revenue, in Q4 2023 [18] - Cash from operations increased to $6 million for Q4 2024, up from $3.9 million in Q4 2023 [22] Q&A Session Summary Question: Will the sales force focus more on the monitor business in 2025? - Management confirmed that the sales team will indeed focus more on the monitor business, expecting significant impacts in 2025 [26][27] Question: Has there been a shift in focus of the sales force? - Management indicated that minor adjustments were made to sales goals, which have already shown positive results in Q4 [29] Question: What are the expectations for R&D spending and gross margins in 2025? - R&D spending is expected to remain consistent, with gross margins projected to be in the 76% to 77% range [31][33] Question: How is the backlog expected to change throughout the year? - Management noted that the backlog is currently strong, particularly for pumps, but expects monitors to gain a larger share as the year progresses [47] Question: How many pumps are expected to be renewed starting in 2026? - Management anticipates replacing about 800 to 1,000 systems, leading to a significant increase in pump sales [53][54]