Irhythm Holdings, Inc. · NASDAQ:IRTC
Irhythm — iRhythm Technologies — 43rd Annual William Blair Growth Stock Conference 2023
26 slides from Irhythm's conference presentation, Jun 7, 2023
Slide 1: iRhythm Technologies Investor Presentation
iRhythm Technologies Investor Presentation June 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: iRhythm at a glance
6+ Million >30% Patients served Five-year revenue CAGR ~25% ~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 publications where we 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 INTERNATIONAL SYMPTOMATIC MARKET ASYMPTOMATIC POPULATION SLEEP APNEA 6M Ambulatory cardiac 14M+ Primary care patients with 12M+ Individuals in the U.S. with HEART FAILURE monitoring tests an
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 Limited Market Release Zio Monitor US Commercial Launch Zio Monitor Launch into International Markets Zio MCT US Commercial Launch Zio Watch Market Evaluation: IRB Use & Clinical Studies Commercial Pilots Commercial
Slide 10: Introducing the Zio monitor
Introducing the Zio® monitor 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. iRhythm Technologies, 2023.
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: OUS opportunity represents $1+ billion with 5+ million TAM
INTE RNATION A L E XPANSION OUS 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 UNITED KINGDOM Initiating market access efforts in JAPAN Early commerc
Slide 14: 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. 14
Slide 15: Active monitoring with Zio XT detects dramatically more AFib in asymptomatic individuals
ADJACE NT MARKE TS Active monitoring with Zio® XT detects dramatically more AFib in Active monitoring for AFib relative to usual care1,2 asymptomatic individuals ↓ 24% 2.6x ED visits Hospitalizations ↓ 23% Greater detection of AFib vs. usual care as published in the mSToPS clinical trial 1 Combined
Slide 16: 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 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 AFib patients 25% of heart failure patients Up to 90% of AFib patients have sleep apnea have AFib have hypertension
Slide 18: 2023 annual revenue and profitability guidance
2023 annual revenue and profitability guidance NET REVENUE GROSS MARGIN ADJUSTED OPERATING ADJUSTED EBITDA (USD, MILLIONS) EXPENSES (USD, MILLIONS) MARGIN $480 - 69 - 70% $417 - (0.5)%- $490 of $427 0.5% of million revenues million revenues Adjusted operating expenses exclude impact from non-GAAP bu
Slide 19: 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 20: 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 21: Appendix
iIRHYTHM Appendix
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 2023 2022 Net loss, as reported $ (39,109) $ (50,609) Impairment and restructuring charges — 26,608 Transformation costs 5,686 258 Adjusted net loss $ (33,423) $ (23,743) THREE MONT
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