IRhythm Holdings Inc · Q1 2023 earnings

Briefing

Reported financial results for the three months ended March 31, 2023.

iRhythm Technologies reported a 20.6% increase in revenue to $111.4 million for the first quarter of 2023, driven by Zio XT and AT volume growth. The gross margin improved to 67.9%, and the company updated its fiscal year 2023 revenue guidance to a range of $480 million to $490 million.

• Revenue increased by 20.6% to $111.4 million compared to the first quarter of 2022.
• Gross margin improved by 100 basis points to 67.9% compared to the first quarter of 2022.
• Cash, cash equivalents, and short-term investments totaled $176.3 million as of March 31, 2023.
• Fiscal year 2023 revenue guidance updated to a range of approximately $480 million to $490 million.

Headline financials

Revenue & EPS history

iRhythm projects revenue for the full year 2023 to grow approximately 17% to 19% compared to prior year results, ranging from $480 million to $490 million. Gross margin for the full year 2023 is expected to range from 69% to 70% and adjusted operating expenses are expected to range between $417 and $427 million. Adjusted EBITDA margin for the full year 2023 is expected to range from approximately negative 0.5% to 0.5% of revenues.