Press Release
iRhythm Technologies Announces First Quarter 2019 Financial Results
First Quarter 2019 Highlights
- Revenue of
$47.2 million for the three months endedMarch 31, 2019
• 54% increase compared to first quarter revenue reported in 2018
• 9% sequential growth versus fourth quarter 2018 - Gross margin was 75.2%
• 340 basis point year-over-year improvement over reported gross margin - Results published in the
Journal of Interventional Cardiac Electrophysiology highlight the Zio platform’s superior accuracy in detecting AF burden versus the event monitor as well as a number of other ambulatory ECG monitoring technologies
“We are off to a great start in 2019 with strong first quarter revenue growth and continued gross margin improvement,” said
First Quarter Financial Results
Revenue for the three months ended
Gross profit for the first quarter of 2019 was
Operating expenses for the first quarter of 2019 were
Net loss for the first quarter of 2019 was
Updated Guidance for Full Year 2019
iRhythm projects revenue for the full year 2019 to range from
The company expects sales headcount to reach approximately 130 to 140 by year end 2019.
Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at
About
iRhythm is a leading digital health care company redefining the way cardiac arrhythmias are clinically diagnosed. The company combines wearable biosensor devices worn for up to 14 days and cloud-based data analytics with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company believes improvements in arrhythmia detection and characterization have the potential to change clinical management of patients.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding financial guidance, market opportunity, ability to penetrate the market and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filing made with the
Investor Relations Contact:
(415) 937-5404
investors@irhythmtech.com
Media Contact
(415) 486-3235
media@irhythmtech.com
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 28,235 | $ | 20,023 | ||||
Investments, short-term | 30,507 | 58,320 | ||||||
Accounts receivable, net | 28,252 | 21,977 | ||||||
Inventory | 2,504 | 2,062 | ||||||
Prepaid expenses and other current assets | 3,810 | 4,100 | ||||||
Total current assets | 93,308 | 106,482 | ||||||
Operating lease right-of-use asset | 9,232 | - | ||||||
Property and equipment, net | 10,208 | 9,158 | ||||||
Goodwill | 862 | 862 | ||||||
Other assets | 3,574 | 3,208 | ||||||
Total assets | $ | 117,184 | $ | 119,710 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,960 | $ | 2,284 | ||||
Accrued liabilities | 20,099 | 26,570 | ||||||
Deferred revenue | 1,309 | 1,243 | ||||||
Accrued interest, current portion | 129 | 139 | ||||||
Operating lease liabilities, current portion | 5,052 | - | ||||||
Total current liabilities | 28,549 | 30,236 | ||||||
Debt | 34,922 | 34,899 | ||||||
Deferred rent, noncurrent portion | - | 153 | ||||||
Operating lease liabilities, noncurrent portion | 3,990 | - | ||||||
Total liabilities | 67,461 | 65,288 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common Stock | 24 | 23 | ||||||
Additional paid-in capital | 261,231 | 257,955 | ||||||
Accumulated other comprehensive loss | 2 | (41 | ) | |||||
Accumulated deficit | (211,534 | ) | (203,515 | ) | ||||
Total stockholders’ equity | 49,723 | 54,422 | ||||||
Total liabilities and stockholders’ equity | $ | 117,184 | $ | 119,710 | ||||
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 47,214 | $ | 30,565 | |||
Cost of revenue | 11,730 | 8,611 | |||||
Gross profit | 35,484 | 21,954 | |||||
Operating expenses: | |||||||
Research and development | 6,756 | 4,019 | |||||
Selling, general and administrative | 36,705 | 28,577 | |||||
Total operating expenses | 43,461 | 32,596 | |||||
Loss from operations | (7,977 | ) | (10,642 | ) | |||
Interest expense | (409 | ) | (858 | ) | |||
Other income | 379 | 383 | |||||
Loss before income taxes | (8,007 | ) | (11,117 | ) | |||
Income tax provision | 12 | - | |||||
Net loss | $ | (8,019 | ) | $ | (11,117 | ) | |
Net loss per common share, basic and diluted | $ | (0.33 | ) | $ | (0.47 | ) | |
Weighted-average shares used to compute net loss per common share, basic and diluted | 24,474,308 | 23,479,955 | |||||