iRhythm Technologies (IRTC) Q3 2024 earnings summary

Executive summary

• Achieved $147.5 million in Q3 2024 revenue, up 18–18.4% year-over-year, driven by record demand, new account openings, and strong Zio Services volume.

• Maintained ~70% market share in long-term continuous monitoring and expanded into Austria, Netherlands, Switzerland, Spain, and received regulatory approval in Japan.

• Net loss widened to $46.2 million, or $1.48 per share, primarily due to a $32.1 million acquired in-process R&D charge related to a technology license agreement.

• Announced collaborations with Epic Aura and BioIntelliSense to enhance platform capabilities and future product offerings.

• Closed $661.3 million of 1.50% convertible notes, supporting growth, innovation, and debt repayment.

Financial highlights

• Q3 2024 revenue: $147.5 million, up from $124.6 million in Q3 2023.

• Gross margin improved to 68.8% in Q3 2024 from 66.2% a year ago, reflecting operational efficiencies.

• Adjusted operating expenses were $143.8 million, including a $32.1 million acquired in-process R&D charge.

• Adjusted net loss was $39.2 million ($1.26/share); adjusted EBITDA was $(19.9) million (-13.5% of revenue).

• Cash, cash equivalents, and marketable securities totaled $522 million at quarter-end.

Outlook and guidance

• 2024 revenue guidance narrowed to $582.5–$587.5 million, with Q4 expected to be the strongest quarter.

• Full-year gross margin expected between 68.5% and 69.0%.

• Adjusted EBITDA margin for 2024 forecasted at -2% to -1.5% of revenue, including the $32 million IPR&D charge.

• Incremental FDA remediation and DOJ-related expenses projected at $11–$13 million for 2024, with a $15 million annual run rate into 2025.

• International revenue expected to grow from 1–2% of total in 2024 to 8–9% over the next 3–5 years.