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• Revenue: $164.3 million in Q4 2024, representing 24% year-over-year growth.

• Gross Margin: 70% in Q4 2024, an improvement from 66% at the beginning of the year.

• Adjusted Net Income: $0.2 million or $0.01 per share in Q4 2024, compared to an adjusted net loss of $25.8 million or $0.84 per share in Q4 2023.

• Adjusted EBITDA: $19.3 million or 11.7% of revenue in Q4 2024, compared to 1.8% in Q4 2023.

• Full Year Adjusted EBITDA: Negative $7.7 million or 1.3% of revenue for 2024.

• Operating Expenses: $116.7 million in Q4 2024, up 2.6% year-over-year.

• Free Cash Flow: Over $30 million generated during the last 3 quarters of 2024.

• Cash and Short-term Investments: Approximately $535.6 million at the end of Q4 2024.

• 2025 Revenue Guidance: $675 million to $685 million.

• 2025 Adjusted EBITDA Margin Guidance: Expected to range between 7% and 8% of full year revenues.

• Warning! GuruFocus has detected 6 Warning Signs with IRTC.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• iRhythm Technologies Inc (NASDAQ:IRTC) achieved over 20% revenue growth in 2024, driven by sustained volume demand across all customer channels.

• The company celebrated 1 million patients registered for GeoMonitor in 2024, highlighting strong adoption of their new long-term continuous monitor.

• iRhythm Technologies Inc (NASDAQ:IRTC) improved its gross margin profile from 66% at the beginning of the year to 70% by the fourth quarter of 2024.

• The company successfully expanded its international presence, launching ZO services in Austria, the Netherlands, Switzerland, and Spain, and received regulatory approval in Japan.

• iRhythm Technologies Inc (NASDAQ:IRTC) reported its first positive adjusted net income in the fourth quarter of 2024, demonstrating a focus on profitable growth.

Negative Points

• The company faces potential tariffs from Mexico, Canada, and China, which could negatively impact gross margins by 50 to 75 basis points.

• iRhythm Technologies Inc (NASDAQ:IRTC) continues to incur significant expenses related to FDA remediation efforts and DOJ subpoena activities, totaling approximately $11 million in 2024.

• There is a low single-digit pricing pressure expected in 2025, which could impact revenue growth.

• The company is still in the early stages of international expansion, with contributions from new markets expected to be modest in 2025.

• iRhythm Technologies Inc (NASDAQ:IRTC) is managing ongoing regulatory and quality compliance issues, with remediation efforts expected to continue throughout 2025.