Press Release
iRhythm Technologies Announces Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Highlights
- Revenue was
$85.4 million , a 18.7% increase compared to third quarter 2020 - Gross margin was 65.7%, a 8.9% decrease compared to third quarter 2020
- Adjusted EBITDA (defined as EBITDA less stock compensation) was negative
$8.7 million - Cash and Short-Term Investments were
$256.8 million as ofSeptember 30, 2021 , a$1.1 million increase fromJune 30, 2021
"Our third quarter results reflect the continued strength of our Zio platform with further market penetration of Zio XT in the
Operational Highlights
- Appointed
Quentin Blackford President and CEO - Appointed
Karen Ling to Board of Directors, replacingRaymond Scott , who retired - 3-year results from the mHealth Screening to Prevent Strokes (mSToPS) clinical trial published in PLOS One
- Surpassed two significant service delivery milestones that included serving four million patients in our history and amassing over one billion hours of curated ECG data
- Received a
UCSF Health Award in the Remote Diagnostic Tool category
“In just the few short weeks that I have been a part of the iRhythm team, I've gained an even deeper appreciation of the value that the Zio platform can bring to patients, physicians, and the healthcare system. It is clear to me that our clinical and competitive differentiation is widely recognized, and the Zio service is seen as best in class,” added Blackford. “Looking ahead, I see significant opportunity for continued growth in the
Medicare Reimbursement Update
On
iRhythm and other industry participants have been working with Medicare Administrative Contractors (MACs) to establish pricing for these codes. iRhythm remains engaged with all of the MACs and is working with other industry participants to submit additional cost data on long-term continuous ECG monitoring for consideration to establish fair and appropriate local rates. iRhythm is evaluating the new information included in the Final Rule and its potential implications on discussions with the MACs. iRhythm cannot provide certainty at this time on the potential outcome of the discussions with the MACs or on the timing of any action to be taken.
Third Quarter Financial Results
Revenue for the three months ended
Gross profit for the third quarter of 2021 was
Operating expenses for the third quarter of 2021 were
Net loss for the third quarter of 2021 was
Financial Guidance
Based on unforeseen ongoing impacts from the
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 statements relating to reimbursement rates and coverage, market expansion, plans to reduce costs and improve efficiency, expectations for future performance 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
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 | $ | 167,371 | $ | 88,628 | |||
Short-term investments | 89,396 | 246,589 | |||||
Accounts receivable, net | 52,820 | 29,932 | |||||
Inventory | 9,960 | 5,313 | |||||
Prepaid expenses and other current assets | 5,641 | 7,363 | |||||
Total current assets | 325,188 | 377,825 | |||||
Property and equipment, net | 53,429 | 34,247 | |||||
Operating lease right-of-use assets | 86,116 | 84,714 | |||||
862 | 862 | ||||||
Other assets | 14,655 | 14,091 | |||||
Total assets | $ | 480,250 | $ | 511,739 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,893 | $ | 4,365 | |||
Accrued liabilities | 53,141 | 40,532 | |||||
Deferred revenue | 2,374 | 930 | |||||
Debt, current portion | 11,667 | 11,667 | |||||
Operating lease liabilities, current portion | 10,707 | 8,171 | |||||
Total current liabilities | 82,782 | 65,665 | |||||
Debt, noncurrent portion | 12,603 | 21,339 | |||||
Other noncurrent liabilities | 2,432 | 1,830 | |||||
Operating lease liabilities, noncurrent portion | 86,593 | 81,293 | |||||
Total liabilities | 184,410 | 170,127 | |||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 27 | 27 | |||||
Additional paid-in capital | 669,373 | 646,258 | |||||
Accumulated other comprehensive income | (6 | ) | 11 | ||||
Accumulated deficit | (373,554 | ) | (304,684 | ) | |||
Total stockholders’ equity | 295,840 | 341,612 | |||||
Total liabilities and stockholders’ equity | $ | 480,250 | $ | 511,739 |
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended |
Nine Months Ended |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue, net | $ | 85,432 | $ | 71,944 | $ | 241,021 | $ | 186,357 | |||||||
Cost of revenue | 29,284 | 18,232 | 78,737 | 49,779 | |||||||||||
Gross profit | 56,148 | 53,712 | 162,284 | 136,578 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,685 | 8,768 | 26,801 | 29,725 | |||||||||||
Selling, general and administrative | 70,745 | 49,701 | 203,227 | 140,945 | |||||||||||
Total operating expenses | 79,430 | 58,469 | 230,028 | 170,670 | |||||||||||
Loss from operations | (23,282 | ) | (4,757 | ) | (67,744 | ) | (34,092 | ) | |||||||
Interest expense | (279 | ) | (384 | ) | (921 | ) | (1,145 | ) | |||||||
Other income, net | (76 | ) | 569 | 103 | 1,311 | ||||||||||
Loss before income taxes | (23,637 | ) | (4,572 | ) | (68,562 | ) | (33,926 | ) | |||||||
Income tax provision | 94 | 105 | 308 | 253 | |||||||||||
Net loss | $ | (23,731 | ) | $ | (4,677 | ) | $ | (68,870 | ) | $ | (34,179 | ) | |||
Net loss per common share, basic and diluted | $ | (0.81 | ) | $ | (0.17 | ) | $ | (2.35 | ) | $ | (1.25 | ) | |||
Weighted-average shares, basic and diluted | 29,433,003 | 28,050,210 | 29,294,559 | 27,358,096 |
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
(In thousands)
Three Months Ended |
Nine Months Ended |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net loss | $ | (23,731 | ) | $ | (4,677 | ) | $ | (68,870 | ) | $ | (34,179 | ) | |||
Income tax provision | 94 | 105 | 308 | 253 | |||||||||||
Depreciation and Amortization | 2,549 | 1,700 | 6,738 | 4,922 | |||||||||||
Interest expense | 223 | 223 | 717 | 163 | |||||||||||
Stock-based compensation | 12,160 | 17,444 | 42,651 | 27,517 | |||||||||||
Adjusted EBITDA | $ | (8,705 | ) | $ | 14,795 | $ | (18,456 | ) | $ | (1,324 | ) |
