Press Release
iRhythm Technologies Announces Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Highlights
- Revenue of
$102.1 million , a 25.6% increase compared to second quarter 2021 - Gross margin of 68.8%, a 0.8 percentage point improvement compared to second quarter 2021
- Cash and short-term investments of
$204.5 million atJune 30, 2022 - Raised full year 2022 revenue guidance to range from
$415 million to$420 million
Recent Operational Highlights
- Reimbursement rates proposed by the
Centers for Medicare and Medicaid Services (“CMS”) as part of the Proposed Medicare Physician Fee Schedule for Calendar Year 2023 that impact Zio XT for CPT codes 93247 and 93243 - 510(k) FDA clearance granted for clinically integrated ZEUS system for the Zio® Watch, developed in partnership with Verily as clinical grade watch to detect and characterize atrial fibrillation and integrate with clinician workflow
- Recent additions to the executive leadership team reflective of company's commitment to driving sustainable value and significant growth across multiple pillars
- iRhythm to hold investor day on
September 21, 2022 , inNew York City , with content to incorporate key elements of long-term business strategy, details of stated growth vectors and long-range financial targets
"We made steady progress in the second quarter, out-performing revenue expectations and delivering another quarter of record registrations in our core
“We also rounded out our executive leadership team with recent additions that position us well to advance our long-term strategies for sustainable growth in our core U.S. market, expand into greater international geographies and enter adjacent markets. The sizable opportunity ahead of us to bring our innovative technology platform powered by data-driven artificial intelligence to patients, clinicians, healthcare systems and payers gets us excited every day. We look forward to sharing more details on this vision at an investor day during the third quarter," concluded
Second Quarter Financial Results
Revenue for the three months ended
Gross profit for the second quarter of 2022 was
Operating expenses for the second quarter of 2022 were
Net loss for the second quarter of 2022 was
Cash, cash equivalents and short-term investments were
Guidance
iRhythm projects revenue for the full year 2022 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.
Use of Non-GAAP Financial Measures and Other Operating Metrics
We refer to certain financial measures that are not recognized under
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 those regarding financial guidance, market opportunity, ability to penetrate the market, anticipated productivity improvements 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: | Media Contact: | |
Stephanie Zhadkevich | ||
(919) 452-5430 | (310) 528-6306 | |
investors@irhythmtech.com | irhythm@highwirepr.com |
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
2022 | 2021 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 101,253 | $ | 127,562 | |||
Short-term investments | 103,238 | 111,569 | |||||
Accounts receivable, net | 57,380 | 46,430 | |||||
Inventory | 14,422 | 10,268 | |||||
Prepaid expenses and other current assets | 8,526 | 9,693 | |||||
Total current assets | 284,819 | 305,522 | |||||
Property and equipment, net | 65,923 | 55,944 | |||||
Operating lease right-of-use assets | 63,940 | 84,587 | |||||
862 | 862 | ||||||
Other assets | 20,142 | 16,052 | |||||
Total assets | $ | 435,686 | $ | 462,967 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 5,987 | $ | 10,509 | |||
Accrued liabilities | 49,954 | 51,486 | |||||
Deferred revenue | 2,977 | 3,049 | |||||
Debt, current portion | — | 11,667 | |||||
Operating lease liabilities, current portion | 11,498 | 11,142 | |||||
Total current liabilities | 70,416 | 87,853 | |||||
Debt, noncurrent portion | 34,927 | 9,690 | |||||
Other noncurrent liabilities | 952 | 697 | |||||
Operating lease liabilities, noncurrent portion | 84,749 | 85,212 | |||||
Total liabilities | 191,044 | 183,452 | |||||
Stockholders’ equity: | |||||||
Preferred Stock | — | — | |||||
Common stock | 28 | 27 | |||||
Additional paid-in capital | 725,748 | 685,594 | |||||
Accumulated other comprehensive loss | (583 | ) | (61 | ) | |||
Accumulated deficit | (480,551 | ) | (406,045 | ) | |||
Total stockholders’ equity | 244,642 | 279,515 | |||||
Total liabilities and stockholders’ equity | $ | 435,686 | $ | 462,967 | |||
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended |
Six Months Ended |
||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue, net | $ | 102,051 | $ | 81,278 | $ | 194,429 | $ | 155,589 | |||||||
Cost of revenue | 31,806 | 25,995 | 62,425 | 49,453 | |||||||||||
Gross profit | 70,245 | 55,283 | 132,004 | 106,136 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 11,945 | 9,606 | 22,487 | 18,116 | |||||||||||
Selling, general and administrative | 81,751 | 62,669 | 154,909 | 132,482 | |||||||||||
Impairment and restructuring charges | — | — | 26,608 | — | |||||||||||
Total operating expenses | 93,696 | 72,275 | 204,004 | 150,598 | |||||||||||
Loss from operations | (23,451 | ) | (16,992 | ) | (72,000 | ) | (44,462 | ) | |||||||
Interest expense | (482 | ) | (307 | ) | (2,511 | ) | (642 | ) | |||||||
Other income, net | 69 | 55 | 85 | 179 | |||||||||||
Loss before income taxes | (23,864 | ) | (17,244 | ) | (74,426 | ) | (44,925 | ) | |||||||
Income tax provision | 33 | 116 | 80 | 214 | |||||||||||
Net loss | $ | (23,897 | ) | $ | (17,360 | ) | $ | (74,506 | ) | $ | (45,139 | ) | |||
Net loss per common share, basic and diluted | $ | (0.80 | ) | $ | (0.59 | ) | $ | (2.51 | ) | $ | (1.54 | ) | |||
Weighted-average shares, basic and diluted | 29,843,141 | 29,318,894 | 29,720,415 | 29,242,089 | |||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands)
Three Months Ended |
Six Months Ended |
||||||||||||||
Adjusted EBITDA reconciliation | 2022 | 2021 | 2022 | 2021 | |||||||||||
Net loss | $ | (23,897 | ) | $ | (17,360 | ) | $ | (74,506 | ) | $ | (45,139 | ) | |||
Income tax provision | 33 | 116 | 80 | 214 | |||||||||||
Depreciation and Amortization | 3,351 | 2,153 | 6,494 | 4,189 | |||||||||||
Interest expense, net | 286 | 247 | 2,183 | 494 | |||||||||||
Stock-based compensation | 15,098 | 10,260 | 29,001 | 30,490 | |||||||||||
Impairment and restructuring charges | 175 | — | 27,041 | — | |||||||||||
Adjusted EBITDA | $ | (4,954 | ) | $ | (4,584 | ) | $ | (9,707 | ) | $ | (9,752 | ) |
Three Months Ended |
Six Months Ended |
||||||||||||||
Non-GAAP restructuring and impairment reconciliation | 2022 | 2021 | 2022 | 2021 | |||||||||||
Impairment and restructuring charges, as reported | $ | — | $ | — | $ | 26,608 | $ | — | |||||||
Restructuring related consulting fees | 175 | — | 433 | — | |||||||||||
Non-GAAP restructuring and impairment | $ | 175 | $ | — | $ | 27,041 | $ | — | |||||||
Adjusted net loss reconciliation | |||||||||||||||
Net loss, as reported | $ | (23,897 | ) | $ | (17,360 | ) | $ | (74,506 | ) | $ | (45,139 | ) | |||
Impairment and restructuring charges, as reported | — | — | 26,608 | — | |||||||||||
Restructuring related consulting fees | 175 | — | 433 | — | |||||||||||
Adjusted net loss | $ | (23,722 | ) | $ | (17,360 | ) | $ | (47,465 | ) | $ | (45,139 | ) | |||
Adjusted net loss per share reconciliation | |||||||||||||||
Net loss per share, as reported | $ | (0.80 | ) | $ | (0.59 | ) | $ | (2.51 | ) | $ | (1.54 | ) | |||
Impairment and restructuring charges per share | — | — | 0.90 | — | |||||||||||
Restructuring related consulting fees per share | 0.01 | — | 0.01 | — | |||||||||||
Adjusted net loss per share | $ | (0.79 | ) | $ | (0.59 | ) | $ | (1.60 | ) | $ | (1.54 | ) | |||
Adjusted operating expense reconciliation | |||||||||||||||
Operating expense, as reported | $ | 93,696 | $ | 72,275 | $ | 204,004 | $ | 150,598 | |||||||
Impairment and restructuring charges, as reported | — | — | 26,608 | — | |||||||||||
Adjusted operating expense | $ | 93,696 | $ | 72,275 | $ | 230,612 | $ | 150,598 | |||||||