Press Release
iRhythm Technologies Announces Fourth Quarter and Full Year 2020 Financial Results
Fourth Quarter 2020 Financial Highlights
- Revenue of
$78.8 million - 33.3% increase compared to fourth quarter 2019
- 9.5% increase compared to third quarter 2020
- Gross margin was 74%
- 2.5% decline compared to fourth quarter 2019
- 0.7% decline compared to third quarter 2020
- Adjusted EBITDA (defined as EBITDA less stock compensation) was
$6.5 million $15.7 million increase compared to fourth quarter 2019$8.3 million decline compared to third quarter 2020
- Cash and Short-Term Investments were
$335 million atDecember 31, 2020 , an$8 million increase fromSeptember 30, 2020
Full Year 2020 Financial Highlights
- Revenue of
$265.2 million - 23.6% increase compared to full year 2019
- Gross margin was 73.5%
- 2% decrease compared to full year 2019
- Adjusted EBITDA (defined as EBITDA less stock compensation) was
$5.1 million $34.4 million increase compared to full year 2019
Operational Highlights
- Zio XT received recommendation for adoption from the
National Institute for Health and Care Excellence (NICE) in theU.K. following success in a new digital health tech pilot - 3-year mSToPS study results determined that active screening for atrial fibrillation (AF) was associated with a significant improvement in clinical outcomes and safety
- Publication of SCREEN-AF six-month clinical trial results in JAMA Cardiology highlighted that the use of Zio XT allowed physicians to diagnose arrhythmias more quickly and efficiently than traditional technologies, noting a tenfold increase in the detection of AF
“The iRhythm team finished the year strong, continuing to deliver on priorities of increased market penetration with our Zio platform, increased operating leverage through continued productivity and automation improvements, and expanding the addressable market into new indications and geographies. Once again, fourth quarter results were driven by further penetration of Zio XT in both existing and new accounts, continued ramp of Zio AT and continued utilization of our Home Enrollment service in telemedicine settings,” said
“Looking forward, we plan to make additional investments across our technology stack and expect continued strong volume growth in 2021. With less than 20% penetration in our core market, we expect to see continued strong growth from Zio XT in new and existing accounts and proportionately greater growth from Zio AT and from the U.
Fourth Quarter Financial Results
Revenue for the three months ended
Gross profit for the fourth quarter of 2020 was
Operating expenses for the fourth quarter of 2020 were
Net loss for the fourth quarter of 2020 was
Full Year 2020 Financial Results
Revenue for the year ended
Gross profit for the year was
Operating expenses inclusive of Verily development for the year were
Net loss for 2020 was
Cash, cash equivalents, short-term investments and long-term investments were
Guidance
Due to continuing uncertainties in reimbursement, the company is unable to provide revenue or margin guidance, and unable to provide full year OPEX guidance.
For the first quarter of 2021, the company expects volume growth of 5% over the fourth quarter of 2020 and operating expenses to range from
For the full year, stock-based compensation is expected to increase by
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, 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: | |
(415) 937-5404 | (262) 289-7065 | |
investors@irhythmtech.com | irhythm@highwirepr.com |
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
2020 | 2019 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 88,628 | $ | 20,462 | |||||
Short-term investments | 246,589 | 120,089 | |||||||
Accounts receivable, net | 29,932 | 23,867 | |||||||
Inventory | 5,313 | 4,037 | |||||||
Prepaid expenses and other current assets | 7,363 | 4,337 | |||||||
Total current assets | 377,825 | 172,792 | |||||||
Long-term investments | — | 8,030 | |||||||
Property and equipment, net | 34,247 | 26,464 | |||||||
Operating lease right-of-use assets | 84,714 | 90,124 | |||||||
862 | 862 | ||||||||
Other assets | 14,091 | 7,940 | |||||||
Total assets | $ | 511,739 | $ | 306,212 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 4,365 | $ | 8,243 | |||||
Accrued liabilities | 40,532 | 32,714 | |||||||
Deferred revenue | 930 | 1,251 | |||||||
Debt, current portion | 11,667 | 1,944 | |||||||
Operating lease liabilities, current portion | 8,171 | 7,914 | |||||||
Total current liabilities | 65,665 | 52,066 | |||||||
Debt, noncurrent portion | 21,339 | 32,989 | |||||||
Other noncurrent liabilities | 1,830 | — | |||||||
Operating lease liabilities, noncurrent portion | 81,293 | 85,748 | |||||||
Total liabilities | 170,127 | 170,803 | |||||||
Stockholders’ equity: | |||||||||
Preferred Stock | — | — | |||||||
Common stock | 27 | 25 | |||||||
Additional paid-in capital | 646,258 | 395,695 | |||||||
Accumulated other comprehensive income | 11 | 82 | |||||||
Accumulated deficit | (304,684 | ) | (260,393 | ) | |||||
Total stockholders’ equity | 341,612 | 135,409 | |||||||
Total liabilities and stockholders’ equity | $ | 511,739 | $ | 306,212 |
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
Three months ended |
Year ended |
||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Revenue, net | $ | 78,809 | $ | 59,104 | $ | 265,166 | $ | 214,552 | |||||||||||
Cost of revenue | 20,498 | 13,915 | 70,277 | 52,485 | |||||||||||||||
Gross profit | 58,311 | 45,189 | 194,889 | 162,067 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 11,604 | 9,268 | 41,329 | 37,299 | |||||||||||||||
Selling, general and administrative | 56,288 | 53,647 | 197,233 | 179,523 | |||||||||||||||
Total operating expenses | 67,892 | 62,915 | 238,562 | 216,822 | |||||||||||||||
Loss from operations | (9,581 | ) | (17,726 | ) | (43,673 | ) | (54,755 | ) | |||||||||||
Interest expense | (374 | ) | (385 | ) | (1,519 | ) | (1,643 | ) | |||||||||||
Other income, net | 280 | 829 | 1,591 | 1,895 | |||||||||||||||
Loss before income taxes | (9,675 | ) | (17,282 | ) | (43,601 | ) | (54,503 | ) | |||||||||||
Income tax provision | (24 | ) | 18 | 229 | 65 | ||||||||||||||
Net loss | $ | (9,651 | ) | $ | (17,300 | ) | $ | (43,830 | ) | $ | (54,568 | ) | |||||||
Net loss per common share, basic and diluted | $ | (0.33 | ) | $ | (0.65 | ) | $ | (1.58 | ) | $ | (2.16 | ) | |||||||
Weighted-average shares, basic and diluted | 28,934,713 | 26,593,636 | 27,754,404 | 25,265,918 |
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
(In thousands)
Three Months Ended 2020 |
Year Ended 2020 |
||||||||
Net loss | $ | (9,651 | ) | $ | (43,830 | ) | |||
Income tax provision | (24 | ) | 229 | ||||||
Depreciation and Amortization | 1,978 | 6,853 | |||||||
Interest expense | 218 | 381 | |||||||
Stock-based compensation | 13,998 | 41,515 | |||||||
Adjusted EBITDA | $ | 6,519 | $ | 5,148 |