0001388658FALSE00013886582024-02-222024-02-22

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 22, 2024
iRhythm Technologies, Inc. 
(Exact name of Registrant as specified in its charter) 
Delaware001-3791820-8149544
(State or other jurisdiction of
incorporation or organization)		(Commission
File Number)		(I.R.S. Employer
Identification Number)
699 8th Street, Suite 600 
San Francisco, California 94103 
(Address of principal executive office) (Zip Code)
(415) 632-5700 
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, Par Value $0.001 Per ShareIRTCThe NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.

On February 22, 2024, iRhythm Technologies, Inc. issued a press release regarding its financial results for the fourth quarter and full year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Item 2.02, including Exhibit 99.1 to this Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any other filing under the Exchange Act or under the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits
(d)Exhibits.
 
Exhibit No. Description
99.1 
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


IRHYTHM TECHNOLOGIES, INC.
Date: February 22, 2024
By:/s/ Brice Bobzien
Brice Bobzien
Chief Financial Officer

Exhibit 99.1



iRhythm Technologies Announces Fourth Quarter and
Full Year 2023 Financial Results

SAN FRANCISCO, February 22, 2024 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights
•Grew fourth quarter 2023 patient registrations in excess of 22% compared to the fourth quarter 2022
•Revenue of $132.5 million, a 17.7% increase compared to fourth quarter 2022
•Gross margin of 66.0%, a 390 basis point decrease compared to fourth quarter 2022
•Net loss of $38.7 million, an $18.5 million increased loss compared to fourth quarter 2022
•Adjusted EBITDA of $2.4 million, a $1.3 million improvement compared to fourth quarter 2022
•Cash, cash equivalents and marketable securities of $133.8 million at December 31, 2023, a $24.7 million reduction from September 30, 2023

Full Year 2023 Financial Highlights
•Revenue of $492.7 million, a 19.9% increase compared to full year 2022
•Gross margin of 67.3%, a 120 basis point decrease compared to full year 2022
•Net loss of $123.4 million, a $7.3 million increased loss compared to full year 2022
•Adjusted EBITDA of ($4.9) million, reflecting a $6.4 million improvement compared to full year 2022

Recent Operational Highlights
•Second highest quarter of Zio long-term continuous monitoring new account openings in the United States during the fourth quarter and record full year of new account onboarding during 2023
•Zio monitor transition progressing with 67% of long-term continuous monitoring registrations now being for our newest generation ambulatory cardiac monitor
•Upcoming data presentations at the American College of Cardiology's Annual Scientific Session & Expo in Atlanta, GA, from April 6-8, 2024

"This past year was truly transformational for iRhythm as we made significant strides to advance our mission in our core U.S. market while advancing multiple initiatives that set us up for future growth,” said Quentin Blackford, iRhythm’s President and CEO. “We realized 20% revenue growth for the full year, driven by record new account onboarding, balanced volume contributions from multiple channels, and the largest product launch in company history. We've made significant progress towards international expansion efforts with recent EU MDR CE mark approval, completed market evaluation in Switzerland, and ongoing review of our Japanese regulatory submission. Moreover, we are also realizing value from our increased focus on operational discipline, achieving more than 180-basis points of improvement in adjusted EBITDA margin for the full year 2023 compared to 2022 and setting us up for sustainable improvements on our path towards our long-range plan."

"In 2024, we expect to continue bringing our platform technology to as many patients who can benefit through continued commercial execution, product innovation, expansion into new markets, pilots in exciting new business models, and exploration into new adjacent market opportunities. As we continue to bring our Zio services to millions of patients globally and scale the business, we could not be more excited by our unique position in this fast-growing market and our ability to drive value for patients, physicians, health systems, and shareholders," concluded Mr. Blackford.

Fourth Quarter 2023 Financial Results
Revenue for the three months ended December 31, 2023, increased 17.7% to $132.5 million, from $112.6 million during the same period in 2022. The increase was primarily attributable to increases in the volume of Zio Services resulting from increased demand, partially offset by a slight decline in average selling price.

Gross profit for the fourth quarter of 2023 was $87.4 million, up from $78.7 million during the same period in 2022, while gross margins were 66.0% as compared to 69.9% during the same period in 2022. The decrease in gross margin was primarily due to increases in headcount-related costs associated with scaling our clinical operations organization as well as costs related to the commercial launch of Zio monitor.


Exhibit 99.1



Operating expenses for the fourth quarter of 2023 were $126.6 million, compared to $99.4 million for the same period in 2022 and $110.1 million in Q3 2023. Sequentially, the increased spend was driven by an impairment charge totaling $11.1 million, related to a reduction in the capitalized leased asset value of our San Francisco office from continued declining commercial real estate rental market conditions, as well as increases for legal, regulatory, and consulting fees.

Net loss for the fourth quarter of 2023 was $38.7 million, or a diluted loss of $1.26 per share, compared with net loss of $20.2 million, or a diluted loss of $0.67 per share, for the same period in 2022.

Full Year 2023 Financial Results
Revenue for the year ended December 31, 2023, increased 19.9% to $492.7 million, from $410.9 million in 2022. The increase in revenue was primarily due to increased volume of Zio services provided as a result of increased demand.

Gross profit for the year was $331.8 million, up from $281.6 million in 2022, while gross margin was 67.3%, a decline from 68.5% in 2022.

Operating expenses for the year were $457.0 million, an increase of 15.6% compared to 2022. The increase was mainly due to an increase in headcount-related costs to support the advancement of our product development and growth in our business.

Net loss for 2023 was $123.4 million, or a diluted loss of $4.04 per share, compared with net loss of $116.2 million, or a diluted loss of $3.88 per share in 2022.

Cash, cash equivalents and short-term investments were $133.8 million as of December 31, 2023.

2024 Guidance
iRhythm projects revenue for the full year 2024 to grow to approximately $575 million to $585 million. Gross margin for the full year 2024 is expected to range from 68% to 69% and adjusted EBITDA margin for the full year 2024 is expected to range from approximately 3% to 4% of revenues.

Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Investors interested in listening to the conference call may do so by accessing the live and archived webcast of the event, which will be available on the investors section of the Company’s website at investors.irhythmtech.com.

About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

Use of Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA estimates for full year 2024 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.

Adjusted EBITDA excludes non-cash operating charges for stock-based compensation, depreciation and amortization as well as non-operating items such as interest income, interest expense, impairment and restructuring charges, and business transformation costs.

We exclude the following items from non-GAAP financial measures for adjusted net loss, adjusted net loss per share and adjusted operating expenses:

•impairment and restructuring charges, and
•business transformation costs to scale the organization.

Exhibit 99.1




Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, anticipated productivity improvements and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-K expected to be filed on or about February 22, 2024. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Investor Contact
Stephanie Zhadkevich
(919) 452-5430
investors@irhythmtech.com

Media Contact
Saige Smith
(262) 289-7065
irhythm@highwirepr.com

Exhibit 99.1



IRHYTHM TECHNOLOGIES, INC.
Consolidated Balance Sheets
(In thousands, except par value)

December 31,
20232022
Assets
Current assets:
Cash and cash equivalents$36,173 $78,832 
Marketable securities97,591 134,312 
Accounts receivable, net61,484 49,918 
Inventory13,973 15,155 
Prepaid expenses and other current assets21,591 10,555 
Total current assets230,812 288,772 
Property and equipment, net104,114 75,670 
Operating lease right-of-use assets49,317 60,666 
Goodwill862 862 
Other assets
48,039 22,252 
Total assets
$433,144 $448,222 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$5,543 $7,517 
Accrued liabilities83,362 65,497 
Deferred revenue3,306 3,051 
Operating lease liabilities, current portion15,159 13,031 
Total current liabilities107,370 89,096 
Debt, noncurrent portion34,950 34,935 
Other noncurrent liabilities1,012 1,307 
Operating lease liabilities, noncurrent portion79,715 83,072 
Total liabilities223,047 208,410 
Stockholders’ equity:
Preferred stock, $0.001 par value – 5,000 shares authorized; none issued and outstanding at December 31, 2023 and 2022
— — 
Common stock, $0.001 par value – 100,000 shares authorized; 30,954 and 30,193 shares issued and outstanding at December 31, 2023 and 2022, respectively
31 28 
Additional paid-in capital855,784 762,380 
Accumulated other comprehensive loss(112)(396)
Accumulated deficit(645,606)(522,200)
Total stockholders’ equity210,097 239,812 
Total liabilities and stockholders’ equity$433,144 $448,222 


Exhibit 99.1



IRHYTHM TECHNOLOGIES, INC.
Consolidated Statements of Operations
(In thousands, except per share data)

(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2023202220232022
Revenue, net$132,511 $112,617 $492,681 $410,921 
Cost of revenue45,085 33,910 160,875 129,289 
Gross profit87,426 78,707 331,806 281,632 
Operating expenses:
Research and development15,416 12,675 60,244 46,610 
Selling, general and administrative100,114 86,730 385,645 322,198 
Impairment and restructuring charges11,078 — 11,078 26,608 
Total operating expenses126,608 99,405 456,967 395,416 
Loss from operations(39,182)(20,698)(125,161)(113,784)
Interest expense(941)(1,013)(3,650)(4,138)
Interest and other income, net
1,679 1,586 6,155 2,036 
Loss before income taxes(38,444)(20,125)(122,656)(115,886)
Income tax provision255 73 750 269 
Net loss$(38,699)$(20,198)$(123,406)$(116,155)
Net loss per common share, basic and diluted$(1.26)$(0.67)$(4.04)$(3.88)
Weighted-average shares, basic and diluted30,702 30,151 30,528 29,916 




























Exhibit 99.1




IRHYTHM TECHNOLOGIES, INC.
Reconciliation of GAAP to Non-GAAP Financial Information
(In thousands, except per share data)
(Unaudited)


Three Months Ended December 31,Year Ended December 31,
2023202220232022
Adjusted EBITDA reconciliation:
Net loss$(38,699)$(20,198)$(123,406)$(116,155)
Income tax provision255 73 750 269 
Depreciation and amortization4,914 3,475 16,348 13,405 
Interest expense941 1,013 3,650 4,138 
Interest income(1,734)(1,422)(6,353)(2,350)
Stock-based compensation23,846 15,793 77,204 57,740 
Impairment and restructuring charges11,078 — 11,078 26,608 
Business transformation costs1,772 2,335 15,866 5,082 
Adjusted EBITDA$2,373 $1,069 $(4,863)$(11,263)
Adjusted net loss reconciliation:
Net loss, as reported$(38,699)$(20,198)$(123,406)$(116,155)
Impairment and restructuring charges11,078 — 11,078 26,608 
Business transformation costs1,772 2,335 15,866 5,082 
Adjusted net loss$(25,849)$(17,863)$(96,462)$(84,465)
Adjusted net loss per share reconciliation:
Net loss per share, as reported$(1.26)$(0.67)$(4.04)$(3.88)
Impairment and restructuring charges0.36 — 0.36 0.89 
Business transformation costs0.06 0.08 0.52 0.17 
Adjusted net loss per share$(0.84)$(0.59)$(3.16)$(2.82)
Weight-average shares, basic and diluted30,702 30,151 30,528 29,916 
Adjusted operating expenses reconciliation:
Operating expenses, as reported$126,608 $99,405 $456,967 $395,416 
Impairment and restructuring charges(11,078)— (11,078)(26,608)
Business transformation costs(1,772)(2,335)(15,866)(5,082)
Adjusted operating expenses$113,758 $97,070 $430,023 $363,726 

v3.24.0.1
Cover
Feb. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 22, 2024
Entity Registrant Name iRhythm Technologies, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37918
Entity Tax Identification Number 20-8149544
Entity Address, Address Line One 699 8th Street
Entity Address, Address Line Two Suite 600
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94103
City Area Code 415
Local Phone Number 632-5700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, Par Value $0.001 Per Share
Trading Symbol IRTC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001388658
Amendment Flag false
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