Press Release
iRhythm Technologies Announces Third Quarter 2019 Financial Results
Third Quarter 2019 and Recent Highlights
- Revenue of
$56.0 million for the three months endedSeptember 30, 2019 , an increase of 47% compared to third quarter revenue in 2018 - Gross margin was 75.4%, a 150 basis point year-over-year improvement
- Announced a collaboration with Verily, an Alphabet company, focused on the development of solutions aimed at improving the screening, diagnosis and management of patients with atrial fibrillation (AFib)
- Received confirmation from the AMA that the proposed replacement of the existing four temporary codes with eight permanent codes was reviewed for Category 1 status and approved by the panel to move forward to the Relative Value Scale Update Committee (RUC) and valuation process
- Completed an underwritten public offering raising
$107 million in net proceeds
“We are pleased with our third quarter performance and sustained track record of strong revenue growth,” said
“Additionally, our collaboration with Verily to address the millions of patients living with undiagnosed AFib will further enhance and differentiate our Zio service. We remain confident that our expertise in cardiac monitoring, data analytics, and commercial execution will continue to position the company for long term success,” concluded King.
Third Quarter Financial Results
Revenue for the three months ended
Gross profit for the third quarter of 2019 was
Operating expenses for the third quarter of 2019 were
Net loss for the third quarter of 2019 was
Updated Guidance for Full Year 2019
iRhythm projects revenue for the full year 2019 in the range of
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 and salesforce guidance, CPT coding, 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: | Media Contact: |
Lynn Pieper Lewis or Leigh Salvo | Saige Smith |
(415) 937-5404 | (262) 289-7065 |
investors@irhythmtech.com | irhythm@highwirepr.com |
IRHYTHM TECHNOLOGIES, INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
(In thousands) | |||||||
September 30, 2019 |
December 31, 2018 |
||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 34,634 | $ | 20,023 | |||
Investments, short-term | 118,091 | 58,320 | |||||
Accounts receivable, net | 25,640 | 21,977 | |||||
Inventory | 3,499 | 2,062 | |||||
Prepaid expenses and other current assets | 3,653 | 4,100 | |||||
Total current assets | 185,517 | 106,482 | |||||
Property and equipment, net | 17,865 | 9,158 | |||||
Operating lease right-of-use asset | 91,935 | - | |||||
Goodwill | 862 | 862 | |||||
Other assets | 5,574 | 3,208 | |||||
Investments, long-term | 9,026 | ||||||
Total assets | $ | 310,779 | $ | 119,710 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,186 | $ | 2,284 | |||
Accrued liabilities | 31,470 | 26,570 | |||||
Deferred revenue | 889 | 1,243 | |||||
Accrued interest, current portion | 128 | 139 | |||||
Operating lease liabilities, current portion | 8,036 | - | |||||
Total current liabilities | 44,709 | 30,236 | |||||
Debt | 34,929 | 34,899 | |||||
Deferred rent, noncurrent portion | - | 153 | |||||
Operating lease liabilities, noncurrent portion | 87,099 | - | |||||
Total liabilities | 166,737 | 65,288 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 25 | 23 | |||||
Additional paid-in capital | 385,613 | 257,955 | |||||
Accumulated other comprehensive loss | 14 | (41 | ) | ||||
Accumulated deficit | (241,610 | ) | (203,515 | ) | |||
Total stockholders’ equity | 144,042 | 54,422 | |||||
Total liabilities and stockholders’ equity | $ | 310,779 | $ | 119,710 | |||
IRHYTHM TECHNOLOGIES, INC. | |||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue | $ | 55,957 | $ | 38,104 | $ | 156,502 | $ | 104,138 | |||||||
Cost of revenue | 13,785 | 9,949 | 38,340 | 28,050 | |||||||||||
Gross profit | 42,172 | 28,155 | 118,162 | 76,088 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 12,723 | 5,164 | 28,118 | 13,747 | |||||||||||
Selling, general and administrative | 48,007 | 32,739 | 127,901 | 94,410 | |||||||||||
Total operating expenses | 60,730 | 37,903 | 156,019 | 108,157 | |||||||||||
Loss from operations | (18,558 | ) | (9,748 | ) | (37,857 | ) | (32,069 | ) | |||||||
Interest expense | (409 | ) | (861 | ) | (1,258 | ) | (2,580 | ) | |||||||
Other income | 377 | 365 | 1,066 | 1,082 | |||||||||||
Loss before income taxes | (18,590 | ) | (10,244 | ) | (38,049 | ) | (33,567 | ) | |||||||
Income tax provision | 19 | - | 46 | - | |||||||||||
Net loss | $ | (18,609 | ) | $ | (10,244 | ) | $ | (38,095 | ) | $ | (33,567 | ) | |||
Net loss per common share, basic and diluted | $ | (0.74 | ) | $ | (0.43 | ) | $ | (1.53 | ) | $ | (1.41 | ) | |||
Weighted-average shares used to compute net loss per common share, basic and diluted |
25,247,831 | 24,059,010 | 24,818,482 | 23,764,153 | |||||||||||