Irhythm Holdings, Inc. · NASDAQ:IRTC
Irhythm — Q1 2024 Earnings Presentation
20 slides from Irhythm's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Results
iRhythm Technologies First Quarter 2024 Results May 2, 2024
Slide 2: Safe harbor statement
Safe harbor statement Certain data in this presentation was obtained from various external sources, and neither “iRhythm” or the You should not rely upon forward-looking statements as predictions of future events. Although we believe that “Company” nor its affiliates or representatives has verified
Slide 3: First quarter 2024 key figures
$131.9 ~25 - 30% million iRhythm penetration in core U.S. ambulatory cardiac First quarter 2024 revenue monitoring market as of December 31, 2023 24% 5+ million tests Registration growth in 2023 Target market opportunity across compared to 2022 prioritized EU and APAC countries* a 100+ ~1.9 million
Slide 4: Accelerating growth in PCP channels key to capturing U.S. opportunity
Accelerating growth in PCP channels key to capturing U.S. opportunity ~21% of 2023 US Zio XT and Zio monitor registrations written by PCPs PCPs in integrated delivery networks and large national accounts driving penetration & TAM expansion Registrations from PCPs and other physicians additive to tho
Slide 5: Leadership in long-term continuous monitoring with room for upside in mobile cardiac telemetry
Leadership in long-term continuous monitoring with substantial room for upside in mobile cardiac telemetry market in the U.S. 2023 LTCM MARKET SHARE IN THE U.S. 2023 MCT MARKET SHARE IN THE U.S. (OF 2.5 MILLION ANNUAL TESTS) (OF 900,000 ANNUAL TESTS) Total LTCM Total MCT market grew market grew an e
Slide 6: International opportunity represents $1+ billion TAM
International opportunity represents $1+ billion TAM with 5+ million tests in prioritized countries across EMEA and Asia Pacific PRIORITIZED EU COUNTRIES Switzerland, Spain, Austria, the JAPAN UNITED KINGDOM Netherlands, Germany and France Pursuing regulatory approval via Early commercialization Ini
Slide 7: Artificial intelligence and deep learning underpins core capabilities
Artificial intelligence and deep learning underpins core capabilities Prediction of Atrial Fibrillation1 Curated heartbeat data and other data Insight Prediction of Generation Heart Failure2 linkages opens opportunities for additional expansion Artificial Intelligence Evolving from diagnosis to diag
Slide 8: Significant adjacent market opportunities enabled by data linkages and AI
Significant adjacent market opportunities enabled by data linkages and artificial intelligence advantages SLEEP APNEA HEART FAILURE HYPERTENSION Prevalence of sleep Prevalence1: 8.4 million Prevalence1: 120.0 million disorders1: 40.1 million 25% of heart failure patients Up to 90% of AFib patients U
Slide 9: First quarter 2024 financial performance
First quarter 2024 financial performance GLOBAL NET REVENUE GROSS PROFIT MARGIN (USD, MILLIONS) 69.5% $132.5 $131.9 $124.6 67.9% $124.1 66.2% 66.0% 66.3% $111.4 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 ADJUSTED OPERATING EXPENSES ADJUSTED EBITDA MARGIN (USD, MILLIONS) R&
Slide 10: Updated 2024 annual revenue and profitability guidance
2024 annual revenue and profitability guidance NET REVENUE GROSS ADJUSTED EBITDA (USD, MILLIONS) MARGIN MARGIN ~$575 – ~ 68 % – ~ 3%– 4% PRIOR $585 69% of of million revenues revenues ~$578 – ~ 68 % – ~ 3%– 4% UPDATED $588 69% of of million revenues revenues Adjusted operating expenses exclude impac
Slide 11: Near-term opportunities can drive significant topline growth
Near-term opportunities can drive significant topline growth Global net revenue (USD millions) U.S. CORE COMMERCIAL BUSINESS • Further expansion into PCP channel • Alternate use cases (e.g., PFA) to expand monitoring $1,000 • MCT market expansion with continued innovation INTERNATIONAL EXPANSION ~$5
Slide 12: Levers for adjusted EBITDA margin expansion
Levers for adjusted EBITDA margin expansion being driven by global scale and operational efficiencies GROSS MARGIN LEVERAGE OPPORTUNITIES OPERATING EFFICIENCY OPPORTUNITIES UNIT COST REDUCTIONS RESEARCH & DEVELOPMENT • Moving to a reduced product footprint and a unified hardware • Anticipate long-te
Slide 13: Addressing the future focus of healthcare
Addressing Expanding the future focus existing markets of healthcare while extending into adjacent markets Anticipated revenue Expect to deliver growth from large meaningful underpenetrated improvements in markets on a financial profile global scale
Slide 14: Appendix
iIRHYTHM Appendix
Slide 15: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA Adjusted EBITDA is a non-GAAP measurement of net loss or income excluding interest, taxes, depreciation and amortization, stock-based compensation expense, impairment and restructuring charges, and business transformation costs. We believe that adjusted
Slide 16: Reconciliation of quarterly adjusted EBITDA margin
Reconciliation of quarterly adjusted EBITDA margin Adjusted EBITDA is a non-GAAP measurement of net loss or income excluding interest, taxes, depreciation and amortization, stock-based compensation expense, impairment and restructuring charges, and business transformation costs. We believe that adju
Slide 17: Reconciliation of GAAP to non-GAAP financial information
Reconciliation of GAAP to non-GAAP financial information THREE MONTHS ENDED MARCH 31, ADJUSTED NET LOSS RECONCILIATION 2024 2023 Net loss, as reported $ (45,667) $ (39,109) Business transformation costs — 5,686 Loss on extinguishment of debt 7,589 — Adjusted net loss $ (38,078) $ (33,423) THREE MONT
Slide 18: Sources
Sources SLIDE SOURCES Cardiac arrhythmia burden • Desai DS, Hajouli S. Arrhythmias. 2023 Jun 5. In: StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2024 Jan–. PMID: 32644349. in the U.S. is significant • Martin et al. 2024 Heart Disease and Stroke Statistics: A Report of US and G
Slide 19: Sources
Sources SLIDE SOURCES International opportunity UK: iRhythm estimate. represents $1+ billion TAM • UK Office for National Statistics; Hospital Episode Statistics, NHS Digital, 2019-2020 with 5+ million tests in • UK Healthcare Market Review 33ed, LaingBuisson, 2021. Accessed 5 January 2022. prioriti
Slide 20: Sources
Sources SLIDE SOURCES Significant adjacent market Heart Failure Market Sizing opportunities enabled by • Atrial fibrillation. (2020, September 9). Centers for Disease Control and Prevention. https://www.cdc.gov/heartdisease/atrial_fibrillation.htm data linkages and artificial • Dumitru, I. (2021, Oc