First Quarter 2022 Financial Highlights
- Revenue of
$92.4 million , a 24.3% increase compared to first quarter 2021 - Gross margin of 66.9%, a 4.2 percentage point improvement compared to fourth quarter 2021
- Adjusted EBITDA* loss of
$4.8 million , a$12.5 million improvement compared to fourth quarter 2021 - Cash and short-term investments of
$208.8 million atMarch 31, 2022 , a$30.3 million decline fromDecember 31, 2021 - Amended debt facility with non-dilutive term loan of up to
$75 million and a revolving credit facility of up to$25 million with a maturity date ofMarch 1, 2027
*Refer to adjusted EBITDA reconciliation table below.
Recent Operational Highlights
- Updated reimbursement rates that impact Zio XT for CPT codes 93243 and 93247 to
$329 and$342 , respectively, published byNational Government Services (NGS), a Medicare Administrative Contractor (MAC) that serves the Suburban Chicago area and where one of our independent diagnostic testing facilities, or IDTFs, is located - Dr. Mintu Tarakhia appointed as Chief Medical Officer and Chief Scientific Officer to drive continued innovation, lead research and evidence generation and enhance the clinical product and service portfolio
- Important clinical data recently presented at The
American College of Cardiology's 71st Annual Scientific Session and at the 2022Heart Rhythm Society meeting highlighting Zio XT, Zio AT and Zio Watch
"Our strong first quarter results are indicative of the momentum we carried into 2022 with an acceleration in daily registrations leading to record quarterly volumes. New account openings were up 15% quarter-over-quarter, and we realized significant growth in our core U.S. market. Evidence supporting the clinical superiority of the Zio service continued to build at the annual ACC and HRS meetings through multiple presentations that demonstrated the effectiveness of long-term continuous ECG monitoring in a variety of use cases,' said iRhythm CEO and President,
“We are energized by the tangible progress being made on the strategies we identified for achieving sustained growth in our core U.S. market and internationally, as well as leveraging our technology platform to expand into adjacent markets. With a strong pipeline of innovation and a renewed focus on operational discipline, I am excited about the opportunity ahead. iRhythm's potential is tremendous and backed by our commitment to deliver superior value to our patients, clinicians, payers and shareholders," concluded
First Quarter Financial Results
Revenue for the three months ended
Gross profit for the first quarter of 2022 was
Operating expenses for the first quarter of 2022 were
Net loss for the first quarter of 2022 was
Cash, cash equivalents, short-term investments and long-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 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 | (310) 528-6306 | |
investors@irhythmtech.com | irhythm@highwirepr.com |
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
2022 | 2021 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 94,786 | $ | 127,562 | |||
Short-term investments | 113,998 | 111,569 | |||||
Accounts receivable, net | 55,286 | 46,430 | |||||
Inventory | 12,446 | 10,268 | |||||
Prepaid expenses and other current assets | 9,838 | 9,693 | |||||
Total current assets | 286,354 | 305,522 | |||||
Property and equipment, net | 57,135 | 55,944 | |||||
Operating lease right-of-use assets | 65,256 | 84,587 | |||||
862 | 862 | ||||||
Other assets | 19,110 | 16,052 | |||||
Total assets | $ | 428,717 | $ | 462,967 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 5,413 | $ | 10,509 | |||
Accrued liabilities | 41,935 | 51,486 | |||||
Deferred revenue | 2,933 | 3,049 | |||||
Debt, current portion | — | 11,667 | |||||
Operating lease liabilities, current portion | 11,501 | 11,142 | |||||
Total current liabilities | 61,782 | 87,853 | |||||
Debt, noncurrent portion | 34,917 | 9,690 | |||||
Other noncurrent liabilities | 832 | 697 | |||||
Operating lease liabilities, noncurrent portion | 86,344 | 85,212 | |||||
Total liabilities | 183,875 | 183,452 | |||||
Stockholders’ equity: | |||||||
Preferred Stock | — | — | |||||
Common stock | 27 | 27 | |||||
Additional paid-in capital | 701,822 | 685,594 | |||||
Accumulated other comprehensive loss | (353 | ) | (61 | ) | |||
Accumulated deficit | (456,654 | ) | (406,045 | ) | |||
Total stockholders’ equity | 244,842 | 279,515 | |||||
Total liabilities and stockholders’ equity | $ | 428,717 | $ | 462,967 | |||
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
Three months ended | |||||||
2022 | 2021 | ||||||
Revenue, net | $ | 92,378 | $ | 74,311 | |||
Cost of revenue | 30,619 | 23,458 | |||||
Gross profit | 61,759 | 50,853 | |||||
Operating expenses: | |||||||
Research and development | 10,542 | 8,510 | |||||
Selling, general and administrative | 73,158 | 69,813 | |||||
Impairment and Restructuring | 26,608 | — | |||||
Total operating expenses | 110,308 | 78,323 | |||||
Loss from operations | (48,549 | ) | (27,470 | ) | |||
Interest expense | (2,029 | ) | (335 | ) | |||
Other income, net | 16 | 124 | |||||
Loss before income taxes | (50,562 | ) | (27,681 | ) | |||
Income tax provision | 47 | 98 | |||||
Net loss | $ | (50,609 | ) | $ | (27,779 | ) | |
Net loss per common share, basic and diluted | $ | (1.71 | ) | $ | (0.95 | ) | |
Weighted-average shares, basic and diluted | 29,596,325 | 29,164,430 |
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands)
Three months ended | |||||||
Adjusted EBITDA reconciliation | 2022 | 2021 | |||||
Net loss | $ | (50,609 | ) | $ | (27,779 | ) | |
Income tax provision | 47 | 98 | |||||
Depreciation and Amortization | 3,143 | 2,036 | |||||
Interest expense | 1,897 | 247 | |||||
Stock-based compensation | 13,903 | 20,230 | |||||
Impairment and restructuring charges | 26,866 | — | |||||
Adjusted EBITDA | $ | (4,753 | ) | $ | (5,168 | ) |
Three months ended, | |||
Non-GAAP restructuring and impairment reconciliation | 2022 | ||
Impairment and restructuring charges, as reported | $ | 26,608 | |
Restructuring related consulting fees | 258 | ||
Non-GAAP restructuring and impairment | $ | 26,866 | |
Adjusted net loss reconciliation | |||
Net loss, as reported | $ | (50,609 | ) |
Impairment and restructuring charges, as reported | 26,608 | ||
Restructuring related consulting fees | 258 | ||
Adjusted net loss | $ | (23,743 | ) |
Adjusted net loss per share reconciliation | |||
Net loss per share, as reported | $ | (1.71 | ) |
Impairment and restructuring charges, as reported | 0.90 | ||
Restructuring related consulting fees | 0.01 | ||
Adjusted net loss per share | $ | (0.80 | ) |
Adjusted operating expense reconciliation | |||
Operating expense, as reported | $ | 110,308 | |
Impairment and restructuring charges | 26,608 | ||
Adjusted operating expense | $ | 83,700 |
Source: iRhythm
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