iRhythm Technologies Inc (IRTC) Reports 20% Revenue Growth in Q3 2023
IRTC's Q3 2023 revenue increased by 20% year-over-year to $124.6 million.
Gross margin declined by 210 basis points to 66.2% compared to Q3 2022.
The company increased its fiscal year 2023 revenue guidance to a range of $487.5 million to $490 million.
IRTC's net loss for Q3 2023 was $27.1 million, or a diluted loss of $0.89 per share.
On November 2, 2023, iRhythm Technologies Inc (NASDAQ:IRTC), a leading digital healthcare company, announced its financial results for the third quarter of 2023. The company reported a 20% increase in revenue compared to the same period in 2022, reaching $124.6 million. However, the gross margin declined by 210 basis points to 66.2% compared to Q3 2022.
Financial Performance
The company's gross profit for the third quarter of 2023 was $82.5 million, up 16.3% from $70.9 million during the same period in 2022. The increase in gross profit was primarily due to increased volume of Zio services provided due to higher demand. The decrease in gross margin was primarily due to increased reserves for excess Zio XT printed circuit board assembly (PCBA) components recognized in the third quarter of 2023.
Operating expenses for the third quarter of 2023 were $110.1 million, compared to $92.0 million for the same period in 2022. This increase in adjusted operating expenses resulted primarily from increased headcount-related costs to support growth in operations and to further development, enhancement, and functionality of our current and future product offerings as well as an increase in software and hardware costs to support growth in our infrastructure.
Operational Highlights
IRTC achieved record registration volumes during the quarter and launched the next-generation Zio monitor with enhanced Zio service. The company also opened its Global Business Services center in the Philippines, positioning the company to maintain patient satisfaction, scale globally, and perform more efficiently.
Quentin Blackford, iRhythms President and CEO, commented on the company's performance,
Revenue growth of 20% year-over-year was driven by strong volume contribution from accounts opened in the previous twelve months as well as sustained market penetration within our existing customer base."
Financial Outlook
For the full year 2023, iRhythm projects revenue growth of approximately 19% compared to prior year results, ranging from approximately $487.5 million to $490 million. Gross margin for the full year 2023 is expected to range from 68% to 69% and adjusted operating expenses are expected to range between $425 million and $429 million.
Despite the challenges, iRhythm Technologies Inc (NASDAQ:IRTC) continues to show promising growth and is poised to capture a significant share of the market in the coming years.
Explore the complete 8-K earnings release (here) from iRhythm Technologies Inc for further details.
This article first appeared on GuruFocus.
