iRhythm Technologies
(Nasdaq: IRTC)
today released a solid preliminary earnings update that included projections of up to 20% revenue growth in 2024.
The wearable cardiac monitors developer saw IRTC shares jump more than 7% in value to $112.91 apiece by the close of trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 1%.
Highlights from iRhythm’s presentation at the 42nd annual J.P. Morgan Healthcare Conference included:
- Patient registrations in Q4 2023 were up more than 22% year-over-year;
- The company closed a five-year, $150 million term loan credit facility to boost its capital structure and ensure ongoing financial flexibility;
- iRhythm is moving forward with resolving an FDA warning letter over the Zio AT mobile cardiac telemetry device, submitting a 510(k) application to catch up on legacy changes;
- The company now expects full-year 2024 revenue of roughly $575–585 million, representing roughly 18–20% growth compared to the midpoint of iRhythm’s most recent guidance for 2023.
The news comes just days after iRhyth announced a CE mark for its next-gen Zio ECG system and accompanying Zeus AI algorithm.
“In 2023, we accelerated momentum in both existing customer channels and new ones, initiated the largest product launch in the company’s history, released a refreshed patient mobile application to drive digital engagement, implemented enhancements like Afib burden into our Zio AT reports for our physician customers, published the Camelot data that showed monitoring with the Zio service is more likely to prevent retesting and get to a diagnosis, and opened our global business services center in the Philippines to continue driving operational efficiency on a global scale,” iRhythm CEO Quentin Blackford said in a news release.
“I am so excited that we are rapidly approaching nearly 8 million reports posted since the company’s inception, and these important milestones are exemplary of the progress that we are driving at iRhythm to bring our platform technology to more patients worldwide. Moving into 2024, we are poised to build upon this momentum while making strategic investments for future growth opportunities.”
Analysts were positive about the news.
Said Richard Newitter, Samuel Brodovsky and Lin Zhang at Truist: “We see IRTC coming up on a multi-layered new product cycle that should enable revenue growth acceleration in 2024 and drive consistent estimate upside through the year. The accelerating growth should be accompanied by margin expansion and improving [adjusted] EBITDA profitability.”