Press Release
iRhythm Technologies Announces Second Quarter 2017 Financial Results
Second Quarter 2017 Financial Results
- Revenue for the quarter ended
June 30, 2017 increased 52% year-over-year to$23.9 million - Gross margin for the second quarter 2017 was 72% versus 67% in the second quarter of 2016
- Achieved first-ever cash flow break-even quarter
Second Quarter 2017 Business Highlights
- Received
FDA clearance for a next-generation product with timely data transmission capabilities. - Data presented at the 3rd
European Stroke Organisation Conference inPrague demonstrated that Zio Service is more efficient for the detection of arrhythmias than Holter monitors in patients who have recently experienced cryptogenic strokes or transient ischemic attacks. - An expert statement jointly developed by ten professional organizations was released during the Heart Rhythm Society’s 38th Annual Scientific Sessions. The Expert Consensus Statement on Catheter and Surgical Ablation for Atrial Fibrillation acknowledged that extended continuous patch monitors, such as Zio, are an effective tool for aFib monitoring following a cardiac ablation procedure.
- A research collaboration with Stanford University’s artificial intelligence lab utilizing iRhythm's ECG database recorded from its Zio monitoring system yielded an algorithm that performed better than trained individual cardiologists in detecting 13 types of heart rhythms as well as noise from artifact.
"Second quarter results demonstrated the traction we continue to achieve with our Zio Service for ambulatory cardiac monitoring. Growth in both existing and new accounts, as well as momentum in our in-network health plan contracting resulted in strong revenue growth and improved gross margins. In addition, we saw growing clinical awareness, inclusion in key guidelines, and support from the international professional community acknowledging the benefits of our Zio Service,” said
Second Quarter Financial Results
Revenue for the three months ended
Gross profit for the second quarter of 2017 was
Operating expenses for the second quarter of 2017 were
Loss from operations for the second quarter of 2017 was
Cash, cash equivalents, and investments totaled
Guidance for Full Year 2017
iRhythm projects revenue for the full year 2017 to range from
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. 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 Form 10-K filing made with the
IRHYTHM TECHNOLOGIES, INC. | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(Unaudited) | |||||||||
(In thousands) | |||||||||
June 30, 2017 | December 31, 2016 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 16,249 | $ | 51,643 | |||||
Short-term investments | 93,578 | 54,407 | |||||||
Accounts receivable, net | 10,851 | 9,406 | |||||||
Inventory | 1,231 | 1,390 | |||||||
Prepaid expenses and other current assets | 1,817 | 1,671 | |||||||
Restricted cash | 91 | 91 | |||||||
Total current assets | 123,817 | 118,608 | |||||||
Investments, long-term | — | 10,981 | |||||||
Property and equipment, net | 6,166 | 4,653 | |||||||
Goodwill | 862 | 862 | |||||||
Other assets | 3,531 | 3,052 | |||||||
Total assets | $ | 134,376 | $ | 138,156 | |||||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 2,658 | $ | 2,103 | |||||
Accrued liabilities | 9,985 | 10,165 | |||||||
Deferred revenue | 557 | 947 | |||||||
Accrued interest, current portion | 525 | — | |||||||
Debt, current portion | 1,471 | — | |||||||
Total current liabilities | 15,196 | 13,215 | |||||||
Debt | 31,614 | 32,227 | |||||||
Deferred rent, noncurrent portion | 140 | 26 | |||||||
Accrued interest, net of current portion | — | 126 | |||||||
Total liabilities | 46,950 | 45,594 | |||||||
Stockholders’ equity: | |||||||||
Common stock | 27 | 22 | |||||||
Additional paid-in capital | 226,365 | 219,718 | |||||||
Accumulated other comprehensive loss | (50 | ) | (9 | ) | |||||
Accumulated deficit | (138,916 | ) | (127,169 | ) | |||||
Total stockholders’ equity | 87,426 | 92,562 | |||||||
Total liabilities and stockholders’ equity | $ | 134,376 | $ | 138,156 | |||||
IRHYTHM TECHNOLOGIES, INC. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | $ | 23,854 | $ | 15,734 | $ | 45,291 | $ | 28,588 | ||||||||
Cost of revenue | 6,744 | 5,156 | 13,081 | 9,815 | ||||||||||||
Gross profit | 17,110 | 10,578 | 32,210 | 18,773 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 2,776 | 1,667 | 5,397 | 3,212 | ||||||||||||
Selling, general and administrative | 20,255 | 12,608 | 37,479 | 24,129 | ||||||||||||
Total operating expenses | 23,031 | 14,275 | 42,876 | 27,341 | ||||||||||||
Loss from operations | (5,921 | ) | (3,697 | ) | (10,666 | ) | (8,568 | ) | ||||||||
Interest expense | (839 | ) | (803 | ) | (1,661 | ) | (1,581 | ) | ||||||||
Other expense, net | 316 | 64 | 580 | (413 | ) | |||||||||||
Net loss | $ | (6,444 | ) | $ | (4,436 | ) | $ | (11,747 | ) | $ | (10,562 | ) | ||||
Net loss per common share, basic and diluted | $ | (0.29 | ) | $ | (3.09 | ) | $ | (0.53 | ) | $ | (7.42 | ) | ||||
Weighted-average shares used to compute net loss per common share, basic and diluted |
22,362,608 | 1,435,483 | 22,257,849 | 1,424,278 | ||||||||||||
Investor Relations Contact:Lynn Pieper Lewis orLeigh Salvo (415) 937-5404 investors@irhythmtech.com Media ContactAaron Murphy (415) 229-3331 media@irhythmtech.com