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Mar 31, 2021
iRhythm Q1 2021 Earnings Report
iRhythm's financial performance increased in revenue but faced challenges with gross margin due to reimbursement rate reductions and COVID-19 impacts.
Key Takeaways
iRhythm Technologies reported a 17% increase in revenue to $74.3 million for the first quarter of 2021, driven by Zio XT volume and Zio AT expansion. However, the gross margin decreased to 68.4% due to reduced Medicare reimbursement rates and COVID-19 pandemic related costs. The company is actively pursuing multiple paths to achieve better reimbursement rates and focusing on efficiency improvements.
Revenue increased by 17% to $74.3 million compared to Q1 2020.
Gross margin decreased to 68.4% from 74.7% in the same period last year.
Adjusted EBITDA was negative $5.2 million, an increase of $2.2 million compared to Q1 2020.
Cash and Short-Term Investments were $262 million as of March 31, 2021.
iRhythm
iRhythm
Forward Guidance
For the second quarter 2021, iRhythm expects sequential volume growth of approximately 4% over the first quarter of 2021 and OPEX to be approximately flat to first quarter 2021 with reductions in stock-based compensation and payroll taxes offset by increases in legal and consulting spending and hiring to support investments.
Positive Outlook
- Expects sequential volume growth of approximately 4% over the first quarter of 2021
- OPEX to be approximately flat to first quarter 2021
- Reductions in stock-based compensation
- Reductions in payroll taxes
- Hiring to support investments.
Challenges Ahead
- Increases in legal and consulting spending.
- Pursuing multiple paths to achieve pricing that is more in line with the benefits of its technology.
- Engaging with Novitas to better understand their valuation methodology
- Having discussions with other Medicare Administrative Contractors (MACs)
- Continuing to pursue national pricing with the Centers for Medicare and Medicaid Services (CMS).