There were 1,262 press releases posted in the last 24 hours and 455,558 in the last 365 days.

iRhythm Technologies Announces Third Quarter 2020 Financial Results

/EIN News/ -- SAN FRANCISCO, Nov. 05, 2020 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care solutions company focused on the advancement of cardiac care, today reported financial results for the three months ended September 30, 2020.

Third Quarter 2020 Summary

  • Revenue of $71.9 million
    • 31.6% increase compared to third quarter 2019
    • 41.4% increase compared to second quarter 2020
  • Gross margin was 74.7%
    • Consistent with comparable quarter in 2019
    • 510 basis point increase quarter on quarter
  • Adjusted EBITDA (defined as EBITDA less stock compensation) was positive for the first time at $14.8 million
  • Completed follow on offering generating $206.8 million in net proceeds
    • Cash and Short Term Investments of $327.2 million at quarter end
  • Recipient of National Health System funding in the United Kingdom as a winner of the Artificial Intelligence in Health and Care Award

“Our strong performance during the quarter was 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 to sustain patient registration volumes in telemedicine settings. As we exited the quarter, many centers were prescribing Zio at or above the daily average we saw in February, prior to the impact of COVID-19. While the pandemic undoubtedly created unprecedented challenges, it also served to escalate awareness as to the benefits of Zio as our digital platform allows for cardiac monitoring independent of patient and physician location,” said Kevin King, CEO.

“There still remains some degree of regional variability in terms of registration volumes, and this trend significantly correlates to the new or continuing outbreaks in those areas. Nonetheless, we remain very confident in our ability to drive further market penetration, as well as the potential for expansion into the asymptomatic market following data from  important trials currently underway,” concluded King.

Third Quarter Financial Results
Revenue for the three months ended September 30, 2020 increased 31.6% to $71.9 million, from $54.7 million during the same period in 2019. The increase was primarily due to higher volumes.

Gross profit for the third quarter of 2020 was $53.7 million, or 74.7% gross margin, compared to $40.9 million, or gross margin of 74.8%, during the same period in 2019.

Operating expenses for the third quarter of 2020 were $58.5 million, compared to $59.1 million for the same period in 2019 which was a decrease of 1%.

Net loss for the third quarter of 2020 was $4.7 million, or a loss of $0.17 per share, compared with net loss of $18.3 million, or a loss of $0.72 per share, for the same period in 2019.

Total Cash and Short-Term Investment balance as of September 30, 2020 was $327.2 million.

Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT / 4:30 p.m. ET. Investors interested in listening to the conference call may do so by accessing the webcast on the “Investors” section of the company’s website at:

About iRhythm Technologies, Inc.  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, the impact of COVID-19 on our business, market opportunity, ability to penetrate the market, operating plans and expectations for economic recovery. 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 Securities and Exchange Commission on the Form 10-K on March 2, 2020. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Use of Non-GAAP Financial Measures
iRhythm has supplemented its GAAP net income (loss) with a non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the Company, facilitates a more meaningful comparison of results for current periods with previous operating results, and assists management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation of non-GAAP Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, is provided in the schedule below.

There are limitations in using this non-GAAP financial measure because it is not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. This non-GAAP financial measure should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with iRhythm’s financial statements prepared in accordance with GAAP and the reconciliations of the non-GAAP financial measure provided in the schedule below.

Investor Relations Contact:   Media Contact:
Leigh Salvo   Saige Smith
(415) 937-5404   (262) 289-7065

Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)

  September 30,
  December 31,
Current assets:      
Cash and cash equivalents $ 95,336     $ 20,462  
Short-term investments 231,901     120,089  
Accounts receivable, net 28,955     23,867  
Inventory 5,062     4,037  
Prepaid expenses and other current assets 4,685     4,337  
Total current assets 365,939     172,792  
Long-term investments     8,030  
Property and equipment, net 32,775     26,464  
Operating lease right-of-use assets 86,247     90,124  
Goodwill 862     862  
Other assets 11,378     7,940  
Total assets $ 497,201     $ 306,212  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 3,838     $ 8,243  
Accrued liabilities 32,185     32,714  
Deferred revenue 938     1,251  
Debt, current portion 10,694     1,944  
Operating lease liabilities, current portion 8,211     7,914  
Total current liabilities 55,866     52,066  
Debt, noncurrent portion 24,252     32,989  
Operating lease liabilities, noncurrent portion 82,537     85,748  
Total liabilities 162,655     170,803  
Commitments and contingencies      
Stockholders’ equity:      
Preferred Stock      
Common stock 27     25  
Additional paid-in capital 629,484     395,695  
Accumulated other comprehensive income 68     82  
Accumulated deficit (295,033 )   (260,393 )
Total stockholders’ equity 334,546     135,409  
Total liabilities and stockholders’ equity $ 497,201     $ 306,212  

Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2020   2019   2020   2019
Revenue, net $ 71,944     $ 54,673     $ 186,357     $ 155,448  
Cost of revenue 18,232     13,785     49,779     38,570  
Gross profit 53,712     40,888     136,578     116,878  
Operating expenses:              
Research and development 8,768     13,499     29,725     28,031  
Selling, general and administrative 49,701     45,649     140,945     125,876  
Total operating expenses 58,469     59,148     170,670     153,907  
Loss from operations (4,757 )   (18,260 )   (34,092 )   (37,029 )
Interest expense (384 )   (409 )   (1,145 )   (1,258 )
Other income, net 569     396     1,311     1,066  
Loss before income taxes (4,572 )   (18,273 )   (33,926 )   (37,221 )
Income tax provision 105     20     253     47  
Net loss $ (4,677 )   $ (18,293 )   $ (34,179 )   $ (37,268 )
Net loss per common share, basic and diluted $ (0.17 )   $ (0.72 )   $ (1.25 )   $ (1.50 )
Weighted-average shares, basic and diluted 28,050,210     25,247,831     27,358,096     24,818,482  

Reconciliation of Net Loss to Adjusted EBITDA
(In thousands)

  Three Months Ended
September 30,
Net loss $ (4,677 )
Income tax provision 105   
Depreciation and Amortization 1,702   
Interest expense 223   
Stock-based compensation 17,444   
Adjusted EBITDA $ 14,797   

Primary Logo