The San Francisco–based company reported yesterday evening that it lost $20.2 million, or 67¢ per share, off of $112.6 million in revenue for the quarter ended Dec. 31, 2022. Revenue was up 37.7% compared to the same quarter a year ago. Losses were down by more than a third.
Wall Street analysts expected a loss of 62¢ and $110.26 million in revenue.
“We recognized more than 27% revenue growth for the full year, driven by strong volume contributions in addition to pricing tailwinds,” iRhythm CEO Quentin Blackford said in a news release.
“We are also beginning to realize value from our increased focus on operational discipline, achieving positive adjusted EBITDA in the fourth quarter and more than 800-basis points of improvement in adjusted EBITDA margin for the full year 2022 compared to 2021. With another record of new Zio XT account openings in the fourth quarter, the issuance of the CMS Final Rule, and tangible progress made towards our pillars for long-term growth, I could not be more pleased with the ability of our entire organization to advance our mission to transform healthcare.”
Blackford thinks iRhythm has effectively navigated operational headwinds from late 2022 and is set for another year of notable growth in 2023. “We anticipate a number of significant and exciting catalysts throughout 2023, and I am truly excited by the opportunities we have to bring our innovative services to more patients across the world.”
iRhythm projects full-year 2023 to grow roughly 16% to 18%, to $475 million to $485 million. That’s below the Wall Street expectations of $577 million.
However, Needham & Co. senior research analyst David Saxon said the company’s adjusted EBITDA guidance was above guidance. “Given IRTC’s improving fundamentals with multiple upcoming catalysts, we reiterate our Buy rating.”
Investors reacted by sending IRTC shares up more than 3% to $111.43 in morning trading.