iRhythm Technologies (IRTC) The 44th Annual William Blair Growth Stock Conference summary

Strategic vision and market positioning

• Positioned as a leading mid-cap med tech opportunity with significant growth potential over the next 3–5 years, driven by sensor-based technology and AI-enabled cardiac monitoring.

• Focused on shifting cardiac monitoring from expensive specialist care to earlier, lower-cost primary care settings, supporting the population health movement.

• Platform leverages patented wearable biosensors, deep-learning AI, and a scalable digital platform to deliver high-quality ECG monitoring and reporting, integrated into EHR systems.

• Over 8 million patients served to date, with 2 million in the last 12 months and a repository of 2 billion hours of curated ECG data, indicating accelerating adoption.

• Holds 25–30% market share in the U.S. ambulatory cardiac monitoring market, with expectations that patch-based technology will eventually dominate 75–80% of the market.

Financial performance and guidance

• Full-year 2024 revenue guidance raised to $578–588 million, reflecting strong Q1 performance and transition to profitability.

• Q1 2024 revenue reached $132.5 million, up 18% year-over-year, with a gross margin of 69.5%.

• EBITDA margin now positive, with targets of 15% as revenue approaches $1 billion and mid-20% longer-term.

• 2024 guidance includes 68–69% gross margin and 3–4% adjusted EBITDA margin.

• Gross margins expected to recover to 69–70% in the back half of the year as manufacturing automation is implemented.

Market and channel expansion

• Aggressively expanding into international markets: launches planned in Spain, Switzerland, Netherlands, Austria in late 2024, and Japan in early 2025, with prioritized EMEA and Asia Pacific markets representing a $1+ billion TAM.

• High Medical Needs designation in Japan provides a competitive advantage.

• Primary care channel now accounts for over 20% of prescriptions/registrations, validating the shift up the care pathway.

• National partnerships with large primary care networks and collaborations with national care networks are expected to drive further adoption.

• Proactive monitoring pilots show high yield, with over 60% of targeted asymptomatic patients found to have arrhythmias.