Irhythm Holdings, Inc. · NASDAQ:IRTC
Irhythm — iRhythm Technologies — William Blair 44th Annual Growth Stock Conference 2024
25 slides from Irhythm's conference presentation, Jun 5, 2024
Slide 1: William Blair 44th Annual Growth Stock Conference
William Blair 44th Annual Growth Stock Conference June 5, 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: 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 4: Key metrics and 2024 guidance at a glance
~$578 - $588 ~25 - 30% million iRhythm penetration in core U.S. ambulatory cardiac Full Year 2024 revenue guidance monitoring market as of December 31, 2023 ~3-4% 5+ million tests Full Year 2024 Target market opportunity across Adjusted EBITDA margin % prioritized EU and APAC guidance countries* a 1
Slide 5: 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 6: 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 7: Zio XT registrations
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 8: 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 9: Leadership in long-term continuous monitoring with room for upside in MCT
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 10: 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 11: Continued innovation a key to our continued competitive advantage
Continued innovation a key to our continued competitive advantage ZIO MONITOR LAUNCH THE LARGEST IN COMPANY HISTORY MYZIO APP SUPPORTS PATIENTS ON MONITORING JOURNEY 4-6 4,5 4,5 iRhythm, Zio, Zio XT, Zio AT, MyZio, and ZioSuite are trademarks of iRhythm Technologies, Inc. © 2023. 1. Data on file. iR
Slide 12: Next generation MCT expected to strengthen competitive positioning
Next generation MCT expected to strengthen competitive positioning Zio AT Zio MCT IMPROVED FORM FACTOR • Better adhesion and battery • Same platform as Zio monitor ENHANCED ARRHYTHMIA DETECTION & BETTER REPORTING • Advanced software for enhanced detection parameters • Improved final wear report with
Slide 13: 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 14: Artificial intelligence and deep learning underpins core capabilities
Artificial intelligence and deep learning underpins core capabilities Prediction of Atrial Fibrillation1 AI capabilities yields significant clinical Insight Prediction of Generation Heart Failure2 value to Zio, differentiates Zio versus competition and permits efficient scaling Artificial Intelligen
Slide 15: Home sleep testing pilot with existing iRhythm customers
Home sleep testing pilot with existing iRhythm customers intended to validate commercial opportunity and physician desire to prescribe IRHY THM UNIQUELY POSITIONED TO DISRUPT THIS FRAGMENTED MARKET SLEEP APNEA Established commercial relationships with cardiologists, EPs, and PCPs Robust EMR integrat
Slide 16: 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 17: 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 18: Near-term catalysts of top-line revenue growth & operational/profitability enhancements
Near-term catalysts of top-line revenue growth & operational/profitability enhancements U.S. CORE COMMERCIAL BUSINESS ADJACENT MARKET OPPORTUNITIES • Further expansion into PCP channel • Movement into proactive monitoring programs • Alternate use cases (e.g., PFA) to expand monitoring • Implementati
Slide 19: 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 20: Appendix
iIRHYTHM Appendix
Slide 21: 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 22: 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 23: 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 24: 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 25: 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
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