Irhythm Holdings, Inc. · NASDAQ:IRTC
Irhythm — Q2 2024 Earnings Presentation
22 slides from Irhythm's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Results
iRhythm Technologies Second Quarter 2024 Results August 1, 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: million 5+ million tests ~1.9 million
$148.0 ~25 - 30% million iRhythm penetration in core U.S. ambulatory cardiac Second 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: Substantial and growing market potential in the United States
Substantial and growing market potential in the United States CORE U.S. EXPANSION EXPANSION MARKET OPPORTUNIT Y IN OPPORTUNIT Y IN SYMPTOMATIC MARKET AT-RISK POPULATION SIGNIFICANT CHANNEL, GEOGRAPHIC & 6.4M Ambulatory cardiac 15M+ Primary care patients with 12M+ Individuals in the U.S. with INDICAT
Slide 5: 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 6: Registrations from PCPs additive to those from cardiologists & EPs
Registrations from PCPs additive to those from cardiologists & EPs 2,500 PCP onboarding KEY TAKEAWAYS 2,000 • Prescribing primary care physicians have potential to amplify volumes • Zio enables workflow efficiency, Zio XT registrations 1,500 addressing existing capacity constraints of specialist off
Slide 7: Large national players proactively monitoring for undiagnosed arrhythmias
Large national players proactively monitoring for undiagnosed arrhythmias Established collaborations with several innovative national care networks mSToPs TARGETING CRITERIA1 75+, or 55+ (men)2 or 65+ (women) with one or more of the following comorbidities: Stroke Heart Failure Hypertension Diabetes
Slide 8: Anticipated timeline to FDA warning letter resolution
Anticipated timeline to FDA warning letter resolution May 2023 Q3 2023 November 2023 March 2024 2H 2024 Q1 2025 FDA sends iRhythm Ongoing positive FDA notifies iRhythm Follow-up Anticipated Potential follow up warning letter focused on collaboration between of Zio AT’s inclusion in questions and dat
Slide 9: 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 10: 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 11: Second quarter 2024 financial performance
Second quarter 2024 financial performance GLOBAL NET REVENUE GROSS PROFIT MARGIN (USD, MILLIONS) $148.0 69.5% 69.9% $132.5 $131.9 $124.1 $124.6 66.2% 66.0% 66.3% 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 ADJUSTED OPERATING EXPENSES ADJUSTED EBITDA MARGIN (USD, MILLIONS) R
Slide 12: 2024 annual revenue and profitability guidance
2024 annual revenue and profitability guidance NET REVENUE GROSS ADJUSTED EBITDA (USD, MILLIONS) MARGIN MARGIN ~$578 – ~ 68 % – ~ 3%– 4% PRIOR $588 69% of of million revenues revenues ~$580 – ~ 68.5 % ~ 3.5%– UPDATED $590 – 69% of 4% of million revenues revenues Adjusted operating expenses exclude i
Slide 13: 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 14: 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 15: 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 16: Appendix
iIRHYTHM Appendix
Slide 17: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure and is presented for supplemental informational purposes only and should not be considered as an alternative or substitute to financial information presented in accordance with GAAP. We define Adjusted EBIT
Slide 18: Reconciliation of quarterly adjusted EBITDA margin
Reconciliation of quarterly adjusted EBITDA margin Adjusted EBITDA is a non-GAAP financial measure and is presented for supplemental informational purposes only and should not be considered as an alternative or substitute to financial information presented in accordance with GAAP. We define Adjusted
Slide 19: 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 2024 2023 2024 2023 Net loss, as reported $ (20,107) $ (18,482) $ (65,774) $ (57,591) Business transformation costs 1,296 5,409 1,296 11,095 Loss on extingu
Slide 20: Sources
Sources SLIDE SOURCES Substantial and growing US Core ACM Market Sizing market potential in the • iRhythm estimates based off combination of Internal Data, 2021 Medicare Public-Use Files, IQVIA data, Definitive Healthcare data, Komodo Health United States data, and other publicly-available informati
Slide 21: 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 22: 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