Press Release
iRhythm Technologies Announces Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Highlights
- Revenue was
$81.3 million , a 59.8% increase compared to second quarter 2020 - Gross margin was 68.0%, a 1.6% decrease compared to second quarter 2020
- Adjusted EBITDA (defined as EBITDA less stock compensation) was negative
$4.6 million - Cash and Short-Term Investments were
$255.7 million as ofJune 30, 2021 , a$6.6 million decrease fromMarch 31, 2021
“Our second quarter results reflected continued strong demand for our Zio platform, as well as solid execution on our operating goals. We were pleased to see growth in both total revenues and unit volumes in the quarter, with Zio AT surpassing 10% of our total revenue for the first time,” said
Second Quarter Financial Results
Revenue for the three months ended
Gross profit for the second quarter of 2021 was
Operating expenses for the second quarter of 2021 were
Net loss for the second quarter of 2021 was
Financial Guidance
For the full year 2021, the company expects revenue 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 relating to reimbursement rates and coverage, market expansion, plans to reduce costs and improve efficiency and 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 filings made with the Securities and Exchange Commission on Forms 10-K and 10-Q. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.
Investor Relations Contact
(415) 937-5404
investors@irhythmtech.com
Media Contact
(310) 528-6306
irhythm@highwirepr.com
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 138,872 | $ | 88,628 | ||||
Short-term investments | 116,792 | 246,589 | ||||||
Accounts receivable, net | 63,423 | 29,932 | ||||||
Inventory | 9,261 | 5,313 | ||||||
Prepaid expenses and other current assets | 7,219 | 7,363 | ||||||
Total current assets | 335,567 | 377,825 | ||||||
Property and equipment, net | 47,086 | 34,247 | ||||||
Operating lease right-of-use assets | 87,533 | 84,714 | ||||||
862 | 862 | |||||||
Other assets | 14,176 | 14,091 | ||||||
Total assets | $ | 485,224 | $ | 511,739 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,945 | $ | 4,365 | ||||
Accrued liabilities | 42,598 | 40,532 | ||||||
Deferred revenue | 2,507 | 930 | ||||||
Debt, current portion | 11,667 | 11,667 | ||||||
Operating lease liabilities, current portion | 7,301 | 8,171 | ||||||
Total current liabilities | 73,018 | 65,665 | ||||||
Debt, noncurrent portion | 15,515 | 21,339 | ||||||
Operating lease liabilities, noncurrent portion | 87,984 | 81,293 | ||||||
Other noncurrent liabilities | 2,265 | 1,830 | ||||||
Total liabilities | 178,782 | 170,127 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock | 27 | 27 | ||||||
Additional paid-in capital | 656,231 | 646,258 | ||||||
Accumulated other comprehensive income | 7 | 11 | ||||||
Accumulated deficit | (349,823 | ) | (304,684 | ) | ||||
Total stockholders’ equity | $ | 306,442 | $ | 341,612 | ||||
Total liabilities and stockholders’ equity | $ | 485,224 | $ | 511,739 | ||||
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended |
Six Months Ended |
||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Revenue, net | $ | 81,278 | $ | 50,878 | $ | 155,589 | $ | 114,413 | |||||||||
Cost of revenue | 25,995 | 15,484 | 49,453 | 31,547 | |||||||||||||
Gross profit | 55,283 | 35,394 | 106,136 | 82,866 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 9,606 | 12,542 | 18,116 | 20,957 | |||||||||||||
Selling, general and administrative | 62,669 | 43,014 | 132,482 | 91,244 | |||||||||||||
Total operating expenses | 72,275 | 55,556 | 150,598 | 112,201 | |||||||||||||
Loss from operations | (16,992) | (20,162) | (44,462) | (29,335) | |||||||||||||
Interest expense | (307) | (381) | (642) | (761) | |||||||||||||
Other income, net | 55 | 237 | 179 | 742 | |||||||||||||
Loss before income taxes | (17,244) | (20,306) | (44,925) | (29,354) | |||||||||||||
Income tax provision | 116 | 131 | 214 | 148 | |||||||||||||
Net loss | $ | (17,360) | $ | (20,437) | $ | (45,139) | $ | (29,502) | |||||||||
Net loss per common share, basic and diluted | $ | (0.59) | $ | (0.75) | $ | (1.54) | $ | (1.09) | |||||||||
Weighted-average shares, basic and diluted | 29,318,894 | 27,176,601 | 29,242,089 | 27,008,236 | |||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
(In thousands)
Three Months Ended |
Six Months Ended |
||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Net loss | $ | (17,360 | ) | $ | (20,437 | ) | $ | (45,139 | ) | $ | (29,502 | ) | |||||||
Income tax provision | 116 | 131 | 214 | 148 | |||||||||||||||
Depreciation and Amortization | 2,153 | 1,669 | 4,189 | 3,220 | |||||||||||||||
Interest expense | 247 | 257 | 494 | 60 | |||||||||||||||
Stock-based compensation | 10,260 | 9,768 | 30,490 | 10,073 | |||||||||||||||
Adjusted EBITDA | $ | (4,584 | ) | $ | (8,612 | ) | $ | (9,752 | ) | $ | (16,001 | ) |