iRhythm Holdings, Inc. · NASDAQ:IRTC
iRhythm — iRhythm Technologies — Investor Presentation (August 2023)
28 slides from iRhythm's investor presentation, August 2023
Slide 1: iRhythm Technologies Investor Presentation
iRhythm Technologies Investor Presentation August 2023
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: 6+ Million patients served, ~1.5 Billion hours of ECG data
6+ Million >30% Patients served Five-year revenue CAGR ~28% ~1.5 Million Penetration in core Patients served U.S. ambulatory cardiac annually and growing monitoring market a 35+ 66 Peer-reviewed Countries and states where we publications have employees 1.5 Billion Hours of curated ~1,800 ECG data Gl
Slide 4: Cardiac arrhythmia burden in the U.S. is immense
Cardiac arrhythmia burden in the U.S. is immense PREVALENCE CONSEQUENCES 11M 5x with Increased risk of stroke arrhythmias due to Atrial Fibrillation (AFib) 40% 160,000 Lifetime risk of AFib Deaths per year for individuals over 55 associated with AFib FINANCIAL BURDEN 450,000 $34B Hospitalizations pe
Slide 5: Substantial and growing market potential
Substantial and growing market potential CORE U.S. EXPANSION EXPANSION MARKET OPPORTUNIT Y IN OPPORTUNIT Y IN SYMPTOMATIC MARKET AT-RISK POPULATION INTERNATIONAL SLEEP APNEA 6M Ambulatory cardiac 14M+ Primary care patients with 12M+ Individuals in the U.S. with HEART FAILURE monitoring tests annuall
Slide 6: The Zio platform enables us to address the challenges of tomorrow
The Zio platform enables us to address the challenges of tomorrow 1 2 3 PATENTED WEARABLE AI PLATFORM ACTIONABLE AND SCALABLE BIOSENSORS (34-LAYER DEEP NEURAL NET) DIGITAL PLATFORM Single-use monitor that 2nd Generation, FDA-cleared, High-quality digital patients prefer deep-learned report delivered
Slide 7: The Zio service provides monitoring solutions across the spectrum of care
The Zio® service provides monitoring solutions across the spectrum of care Zio® XT Zio® AT Long-term, continuous Mobile cardiac telemetry ambulatory cardiac monitor with continuous recording The right test the first time Actionable transmission reports Comprehensive Comprehensive final patient repor
Slide 8: CAMELOT: The Cardiac Ambulatory Monitor EvaLuation of Outcomes and Times to events
CAMELOT: The Cardiac Ambulatory Monitor EvaLuation of Outcomes and Times to events Compared with all other monitoring services, Zio XT was associated with: 1. Reynolds et al. Comparative effectiveness of ambulatory monitors for arrhythmia diagnosis: A retrospective analysis of Medicare beneficiaries
Slide 9: Differentiated platform technology with catalyst-rich pipeline
Differentiated platform technology with catalyst-rich pipeline 2023 2024 Zio Monitor US Limited Market Release Zio Monitor US Commercial Launch Zio XT/Zio Monitor Introduction into Additional International Markets Zio MCT Regulatory Submission to FDA Zio Watch Market Evaluation: IRB Use & Clinical S
Slide 10: U.S. Zio monitor commercial launch planned for 2H 2023
U.S. Zio® monitor commercial launch planned for 2H 2023 Limited market release in the U.S., FDA cleared with strong initial performance New breathable and 72% smaller 62% lighter 23% thinner waterproof outer layer Smaller refers to reduced volume. All comparisons relative to Zio® XT. Data on file. i
Slide 11: Significant Zio market opportunity in the U.S.
CORE U.S. MARKE T Significant Zio® market opportunity in the U.S. US PATIENT POPULATION 2 213 • >20 years old million • Excludes non-insured population UNIQUE PCP VISITS 200 • Average ~2.8 physician visits annually, 51% are PCP visits million • IRTC estimates ~200M unique patients3, 4, 5 PATIENTS WI
Slide 12: Broad access achieved in the U.S. through commercial and government payers
CORE U.S. MARKE T 93% Broad access achieved in the U.S. through commercial and government payers of commercial lives eligible for coverage have access to Zio® XT with no prior Most major commercial plans authorization requirement cover Zio® XT and Zio® AT1 Medicare coverage available for >70% Zio® X
Slide 13: The ground-breaking program for early detection of heart arrhythmias
ADJACE NT MARKE TS INTRODUCING The ground-breaking program for early detection of heart arrhythmias. © 2023 iRhythm Technologies, Inc. 13
Slide 14: Active monitoring with Zio XT detects more AFib compared to usual care
ADJACE NT MARKE TS Active monitoring with Zio® XT detects Active monitoring for AFib relative to usual care1,2 more AFib compared to usual care ↓ 24% 2.6x ED visits Hospitalizations ↓ 23% Greater detection of AFib vs. usual care as published in the mSToPS clinical trial 1 Combined 39% lower cardiac
Slide 15: Zio XT provides high value from health economic perspective
ADJACE NT MARKE TS ® Zio XT provides high value from health economic perspective ICER fixed cost effectiveness thresholds for diagnostic interventions ® Zio XT demonstrated gain in quality- HIGH VALUE INTERMEDIATE VALUE LOW VALUE adjusted life expectancy while providing excellent value to healthcare
Slide 16: Early detection opportunity begins with Medicare Advantage
ADJACE NT MARKE TS Early detection opportunity begins with Medicare Advantage INITIAL OPPORTUNIT Y EXPANDING INTO TRADITIONAL REIMBURSEMENT Medicare Advantage Medicare Fee-For-Service (FFS) 35.4M 2022 Medicare FFS population 29.1M 2022 Medicare Advantage population 8% Annual increase YOY as 5.8M At-
Slide 17: Significant adjacent market opportunities
ADJACE NT MARKE TS Significant adjacent market opportunities SLEEP APNEA HEART FAILURE HYPERTENSION 2022 prevalence1: 40.1M 2022 prevalence1: 8.4M 2022 prevalence1: 166.0M Up to 80% of AF patients have 25% of heart failure patients Up to 90% of AF patients have sleep apnea have AF hypertension and t
Slide 18: International opportunity represents $1+ billion with 5+ million TAM
INTE RNATION A L E XPANSION International opportunity represents $1+ billion with 5+ million TAM in prioritized countries across EMEA and Asia Pacific PRIORITIZED EU COUNTRIES Switzerland, Spain, Sweden, the Netherlands, Germany and France JAPAN UNITED KINGDOM Initiating market access efforts in Pur
Slide 19: Second quarter 2023 financial performance
Second quarter 2023 financial performance GLOBAL NET REVENUE GROSS PROFIT MARGIN (USD, MILLIONS) $111.4 $124.1 $112.6 69.9% $102.1 $103.9 69.5% 68.8% 68.3% 67.9% 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 ADJUSTED OPERATING EXPENSES ADJUSTED EBITDA MARGIN (USD, MILLIONS) R
Slide 20: 2023 annual revenue and profitability guidance
2023 annual revenue and profitability guidance NET REVENUE GROSS ADJUSTED OPERATING ADJUSTED EBITDA (USD, MILLIONS) MARGIN EXPENSES (USD, MILLIONS) MARGIN $480 - 69 - 70% $417 - (0.5)%- PRIOR $490 of $427 0.5% of million revenues million revenues UPDATED $485 - 69 - 70% $417 - 0 – 0.5% $490 of $427
Slide 21: April 2023 ESG report reflects our commitment to sustainable and responsible growth
April 2023 ESG report reflects our commitment to sustainable and responsible growth to deliver long-term value ENVIRONMENTAL SUSTAINABILIT Y BY DESIGN Innovative design enables safe, effective reuse of circuit boards Key environmental approaches include energy efficiency and circularity measures Pro
Slide 22: Addressing the future focus of healthcare
Addressing Expanding the future focus existing markets of healthcare while extending into adjacent markets Out-paced Delivering revenue growth meaningful from massive improvements in underpenetrated financial profile markets on a global scale
Slide 23: Appendix
iIRHYTHM Appendix
Slide 24: Sources
Sources SLIDE SOURCES Cardiac arrhythmia burden in the U.S. is immense Morillo CA, Banerjee A, Perel P, Wood D, Jouven X. Atrial fibrillation: the current epidemic. J Geriatr Cardiol. 2017 Mar;14(3):195-203. Weng, Lu-Chen et al. Genetic Predisposition, Clinical Risk Factor Burden, and Lifetime Risk
Slide 25: Sources
Sources SLIDE SOURCES OUS opportunity represents $1+ billion with UK: iRhythm estimate. UK Office for National Statistics; Hospital Episode Statistics, NHS Digital, 2019-2020; UK Healthcare 5+ million TAM in prioritized countries across Market Review 33ed, LaingBuisson, 2021. Accessed 5 January 2022
Slide 26: Sources
Sources SLEEP APNEA MARKET SIZING HYPERTENSION MARKET SIZING: 1. Franklin, K. A., & Lindberg, E. (2015). Obstructive sleep apnea is a common disorder in the 1. Bhalia, S., Pallangyo, P., Dalidali, A., Salum, S., Kawajika, R., Kajuna, E., population—a review on the epidemiology of sleep apnea. Journa
Slide 27: 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 transformation costs. We believe that adjusted EBITDA is
Slide 28: Reconciliation of GAAP to Non-GAAP financial information
Reconciliation of GAAP to Non-GAAP financial information THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, ADJUSTED NET LOSS RECONCILIATION 2023 2022 2023 2022 Net loss, as reported $ (18,482) $ (23,897) $ (57,591) $ (74,506) Impairment and restructuring charges — — — 26,608 Business transformat
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