iRhythm (IRTC) 2 May 242024 Q1 Earnings call transcript

Hello, and welcome to the iRhythm Technologies, Inc. Q1 2024 Earnings Conference Call. My name is Terry, and I will be the conference operator today. [Operator Instructions]

I would now like to hand over to Stephanie Zhadkevich, Director of Investor Relations, to begin. ahead. go Please

for released all March today's Earlier call. XXXX. Thank results participating for iRhythm financial ended the today, you in first XX, quarter

Before the be statements Reform Any within that meaning of Securities remind during like Litigation laws Act call provisions the we statements pursuant of securities make Private to this forward-looking XXXX. will harbor contained statements you include that federal begin, I'd safe of management assumptions to the should to not our and statements management's strategies, of statements. plans and events, in are be intentions, competition, future this call These operating facts forward-looking and that are current historical estimates and beliefs deemed based upon performance. products, about and expectations various reflect

risks or statements. uncertainties actual statements. those and differ from Accordingly, cause could undue events these place or not materially reliance involve implied these results anticipated that on you These by forward-looking to statements should

the a with of For recent uncertainties please filed Form our quarterly of Factors annual and and business, XX-K to most and associated Securities XX-Q, Commission. reports Exchange the list the with respectively, Form section on Risk description risks and and the refer

to discuss presented prepared metrics should Also and GAAP loss. financial presentation of otherwise we measures non-GAAP call, in expenses adjusted directly will information financial Please measures revenue measures not reconciliation to operating in including to and adjusted been additional results, a noted, not non-GAAP call be references are financial net XX-Q accordance refer cash-based Unless than during a respect basis. have to in the to earnings that U.S. with non-GAAP for all these accordance references certain to with on substitute our for The EBITDA, adjusted a financial this GAAP. noted, measures. the considered the release superior refer our results. or results as most all otherwise GAAP in prepared and to other Unless comparable isolation tables of in with

call X, conference to contains revise or projections is or time-sensitive future financial of required or accurate information, today, of update and iRhythm May only any XXXX. as information intention events statements, as because broadcast new otherwise. whether law, any except This disclaims by or the live forward-looking obligation,

I'll that, to CEO. President with turn the And Blackford, iRhythm's over Quentin call and

annual Stephanie. the quarter you, joining and all quarter Thank Officer; our cover business the remarks call Brice guidance. Dan Financial our of I'll today's afternoon, then prepared My and Wilson, Corporate as of to a on XXXX our as provide EVP during our updates Good Investor over thank and for you turn today Chief Development updated results joining first us. me call. and Relations, to well outlook. review financial Brice first of XXXX detailed Bobzien,

within representing quarter we from first to new quarter compared first contribution XX.X% existing our the XXXX. million well with of quarter the a registrations to of focus expand strategy the broader going deeper Over land Drivers prior of volume, $XXX.X account growth of by and prices accounts revenue the come meaningful remained revenue to continued During our steady QX openings. of average X.X contributed another from and of while year. selling record as as million achieved XXXX, growth in

long-term quarter team's to strong new for was matched on The our openings of outlook. ability monitoring, quarter of onboarding account first and quarter confidence opportunities again in our continuous we our ever our a capitalize pipeline Zio highest account as XXXX reflective providing new for

for continued updating well. revenue core in ongoing resulted as fundamentals seen during first optimism the of thus momentum underlying confidence in capture our have These in guidance, strong far the annual for teams services market market quarter drove in our of solid we products Zio demand as the our Our have and business QX XXXX. reflecting and factors

for to approach traction. opening care excitement opportunity that primary to Our gains two-pronged continues our channel as grow the

approaching by we the part a national care also cardiologists targeting primary this up of ground opportunity current are electrophysiologists working today reminder, the networks within from while and large are As that providers. innovative large our health

pleased During and the primary of high with care. of have quarter, entered clinical networks, the cost while for national we deliver demonstrating Zio's into patient to were groups care to growing appreciation innovative several partnerships additional further reducing these accuracy use, compliance ease ability

national over are their early XXXX. Importantly, about the we into the in of continued year from have the adopters excited course utilization quarter and seen uptick potential primary and these care the throughout

care cardiologists traction one seen that prescriber from least had one care these network. ordering in part in continued care Important clearly primary networks, multidisciplinary the Zio's to resonating those Out were is their into of compared pathway tool the have we growth, not that at a channel. accounts that from further value network. had half networks do up workflow care perhaps primary integrated prescribing the at more of where push Services efficiency was growth in primary least higher care large within XXXX, prescriber in accounts care and prescriber networks to our care almost have all in XXXX as a But importantly, accounts proposition volume Zio primary multidisciplinary their care as

only care we is is further This IDNs access we to collaboration medical getting for workflows. the more manufacturer with our in our to started that recently to have efficiency streamlined first but join backlogs alleviate it access for patient not has were already out use opportunities and different We announced have excited workflow penetration also This capacity care at becoming patients validation important an this Zio Aura. customers, driving only representative very community and continue Epic a of seen and these specialties a driving to device within even enable the constrained future. the to more these and Aura, many partner expand where factor to played primary is associated several believe a participation networks, to primary with are diversification that into we

that expand Epic health to hospital institutions started can terrific to across the typically This systems. local to the XX% systems Zio wanting Epic into optimizing adopters integrate time iRhythm the inbound and collaboration to within systems The accounts operations beyond, Services initial implement continuum and to efficiently, interest from and of Zio systems this health home the more will it we has into enable services Zio takes workflows. our and save have of help up care integrate leverage been services care across estimate patient with partnership, primary to simplify access to services from iRhythm and to their while clinician partnership should health care will to partner early Zio network already of to Through cardiologist we Aura Epic.

effort, success probe monitor in to we Further care solution where of has offering this and traction our enhance asymptomatic populations. this we patient networks, starting both expect begin has choice been existing contributing to new record within ambulatory Zio to large As early for XXXX. in monitoring Zio customers innovative cardiac the become

health those Zio tone patient and risk analysis programs the better services and to accountable for as Zio long-term have patients their the the on and within means preventative patients clinical hours. have groups severe, XX monitoring economic become demonstrating mSToPS monitoring their Zio inform XX pathways within innovative for care value-added groups serve. health With the home undignosed programs at to days monitor members, highly going those for published care with for prior capacity challenges service screening up continuous traction for that compared identifying and the Holter monitoring associated These the the and proactive symptoms networks with showing clinical answer organizations. evidence provide care are diagnostic cost for we addressing potential gaining This services wellness yield individuals, potentially are events future using right focused receptive reducing benefits of with who before to been time events XX they arhythmias of and that possibly the accounts clinical to first those very care to are downstream

our identify mSToPS near criteria Rhythm are Physician PCC, Centers, program that recall to with patients the to As believed fantastic those that end we inclusion example for of Care and pilot screen a be this, partner, to of to proactively experiencing exclusion meet asymptomatic our clinicians for risk Zio determine to monitor to This they implementing designed if at benefit by was criteria. be arrhythmias from program would screening the risk primarily the may Afib services. guidelines mSToPS undiagnosed identify to at proactive patients that according or

events. to Xx these one of of asymptomatic were Afib services XX% downstream comorbidity, of and of Of Since least arrhythmia a intervention identification strategies there at we the adverse greater reduce risk patients is failure patients that early believe Afib -- the greater initial a a developing at had and crucial stroke Zio ordered heart develop clinical is is risk Xx monitor that identified.

We to providing into that around move population is forward now commercial additional and initial we asymptomatic look this year. into throughout updates are as this the excited movement the pilot transitioning we launch,

business, continue Japan. countries as our dimension well In as we into multiple move forward to international with efforts European

value having drove volumes the above rate diagnostic U.K. efforts long-term positive of an impact These as expansion we resource a first savings. to the Services in times, with the patient within sites yield teams forecast for In waiting pathway argue and reimbursement utilization, clinical quarter, advance Zio continue on recognized hospital our the to U.K. cost During parallel, growth enhanced registration strong through have private in the hospitals. sector

CE of XXXX. we half Additionally, in our Netherlands to back now Zio hospitals received Zeomonitor a system, have launch we and X marking the the in evaluation monitor services under Spanish March kicked that MDR the Switzerland in commercial continue off the Zoo and of anticipate Spain, in for and EU market

arrhythmia Japan, continues prevalence need significant the being detection monitoring rise and unmet stroke In with ultra to the believe for improved Europe monitors. remains well as predominant as clinical as there technology of arrhythmias still we

MCT to dialogue from work and FDA our the teams for for to on system submitted submissions in the business, files features file next-generation letter. we is in AT that support receive noted Zio our changes diligently be decision made XXXX. believe subsequent that our late of as parallel, a recall second the with that FDA for in previously product and submission in XXX(k) to further in and the early believe prepare to the In continue the a these we XXXX. AT in warning submissions of of one second AT our could letter Zio MCT, to In the January, and catch-up second that half submitted updates of the for will XXX(k) half Zio clearance for design to XXX(k) a FDA a we quarter product, areas focus been address Zio in continue labeling Since filing X

pure beyond arrhythmia being near we and adjacent monitoring, these opportunities further have and into cardiac midterm natural also monitoring traditional possibilities As within to begun markets. are fostered explore

relationships physicians As obstructive sleep journey to streamlining to intended care getting past utilize to sleep patients. we our prescription pilot call program of value February, have cardiologists validate to approximately the the mentioned, physician with sleep to the opportunity launched and diagnosis with of iRhythm intend point to combination validate sleep and on streamline current primary diagnose a customers customer a this existing of desire X with test, both focus establish We for physicians and of sleep commercial XX apnea. and home disorders a a potential the

and can the pilot a these test, test such will to PCPs care ability prescribe physicians of metrics to in is cardiologists determine address service may The platform improved challenges this patients, home patients to digital through iRhythm long-term goal positioned collect and us will determine integrated including to what if this prescribe be been through provide space. obstructive delivery switch sleep sleep best with we contribute a sleep as a how home apnea, an of this for have differentiated believe that

onboarding especially rapid encouraged pilot to We thus initiative, have this for in launch. the by been of customer this far just accounts beginning interest with the

scientific The early supported being adjacent evidence. are markets forays further into by

insights. sign critical teams and predictive academic clinical Our metal partners as a EKG support for are of in generating

failure long-term incorporating that scoring recent with last new month, a has hospitalization ACC than data collaboration from heart and findings system As existing heart continuous VAS greater our Chad Duke score Health alone monitoring onset from study the risk failure. with the for EKG the concluded example discrimination from of clinical

risk and in interventions more able models costs. Furthermore, These Medicare authors starting accurately point model products EKG the data, new to develop risk as concluded the via patients health of developed utilization reduce such and predict this treated conclusions Zio both in by develop long-term to that were patients. while are being health include systems and care inform cost untreated services used to scores and and that that high-risk to also diagnosis by provided payers management to

generate insights are data type uniquely signs multiple increasingly success assets positioned clinical the are far and of digital these future. for vital combined into As to we

our now call I'll performance. turn Brice over to that, the recent With to financial discuss

Thanks, Quentin.

As to GAAP the that metrics a today's noted, unless today can Reconciliations found non-GAAP otherwise will I and basis. in presented earnings IR release on on financial our be reminder, discuss a websint. be

XXXX markets $XXX.X representing as year-over-year our First of XX.X% million, core quarter demonstrated results momentum revenue achieved growth. in positive we

driven As Quentin mentioned, growth a year-over-year. price as points as by this slight revenue basis improvement of was strong our average well to volume approximately XXX selling

store approximately of defined been have as store growth new than year-over-year months with growth. opened accounted volume for that New XX less accounts for XX% our

XX.X% quarter. was Zio Gross in guidance provided enrollment with trends, for recent home XX% in expectations the the first with February. with and for line the volume Services of quarter approximately margin first was Consistent in

see As and capacity. on XXXX. to for associated monitor of are costs managing We reaction we continued second monitor, remain in realize production marketplace half Zio of previously to focused discussed, the we and Zio with scale to the the on positive benefits automation incremental track have ramping

cardiac last the continued phase are to they we we expect Francisco clinical quarter, San in IDTF as in investment technicians and completing since efficiency see to a newly utilization ramp our up fourth the planned, from as Additionally, come speed. improvements of hired

adjusted million, XXXX, incremental X% and our in such volume expectations. to growth items First to well our leadership quarter support expenses up and line year-over-year, as resources compensation-related the quarter was in first XX% expenses adjusted due of items. meetings, our in operating were increase expenses elevated Compared operating sequentially with this $XXX.X global up to to as were Sequentially, due seasonal sales annual operations. primarily as

million are in outpaced compared loss the the increases DOJ fees net P&L. We first operating reflecting of revenue $XX.X an in minus million well loss to and of continue $XX.X Supino, ability in the net line $X.XX of as previously to warning operating $XX.X provided. $X.XX related showing letter first expenses, guidance to X.X% loss in legal these with to share adjusted sustainable the other and drive was to incur company growth in the the incremental expenses throughout as quarter consulting our FDA and leverage Adjusted EBITDA of a minus share approximately of or XXXX. quarter the net loss of per adjusted of million, quarter compared an XXXX per first or quarter XXXX. Adjusted minus in was XX.X% fourth Revenue

XXX progress the the EBITDA make a adjusted profile point San investment. our to year-over-year adjusted the continue on in percentage We launch EBITDA of gross margin and associated the Zio pressure face a temporal in driving revenue margin with Francisco in as improvement basis IDTF of monitor

to Turning guidance.

U.S. existing the million growth as market and outlook XX revenue as earlier believe now core We We we believe be our year first this are in accounts. historical revenue million. customer year strong anticipate that our be continue With year the sustained to that approximately full updating quarter XX% with quarter, of new $XXX drive presented approximately of full volume by of we in will and year $XXX revenues. XXXX penetration momentum to exiting driven second seasonality will in line both

midpoint Turning full compared range to of at approximately XX% points our reiterating year a to XX%, of to gross XXX margin. basis margin XXXX. guidance year XXXX gross an of improvement full in the

remains improvement the the manifesting throughout outlook half of Our the material back on in year phasing unchanged year. with

platform, to team clinical efficiencies of automation full to being driven and majority lines Francisco operating in transitioned by monitor our Zio at ramp expect We the the of capacity. Zio San operations be our the produce to business

P&L. guidance XXX EBITDA X% throughout which adjusted with represent between targets of margin X% revenues, improvements our leverage our driven our EBITDA basis line point to the adjusted by range to reiterating in XXX also on and are margin a to XXXX operating to compared XXXX, we XXXX, path would For improvement to sustainable focus in stated

Adjusted transformation associated Bradwell. compensation and our with extinguishment EBITDA the incurred loss in the Valley and excludes first Bank costs, impairment costs, and Silicon business with stock-based debt quarter the early expenses restructuring of

we half of first year. breakeven half than historically cadence of expansion of efficiency, are anticipated with Along gross the the to margin throughout in quarter progressive with margin around operating margin margin more in the at progress to see be back adjusted EBITDA second relative Looking XXXX, expect the year expenses revenue. elevated the to

XXXX, As we these we incurred Zio come with in P&L predominantly responses continue there to issues, the $X quarter, of the the costs mentioned the of million of of $XX out first million the As believe FDA last half will to navigate majority letter warning cost to that be the these approximately associated will X future. in and

Finally, million financing investments. activities first and with in quarter we in Inclusive of $XXX.X cash financial and unrestricted the uses for investments. position ended short-term approximately a operations and of cash strong capital

in March, disclosed the of a convertible $XXX.XX of As senior our interest at sheet million coupon X.X% capital rate. with balance we further closing bolstered notes to cost-efficient

continuously evaluate alignment we our As and we shareholder demonstrated, to financial will capital structure flexibility have ensure interests. with

like it With before back up questions. to turn we I'd to Quentin open that, to it

Thanks, Brice.

We are us. a in couldn't digital the incredibly the future. health is and with the excited pleased future more care of year about building the front of portfolio be iRhythm of start

evidence success address health come. in data repository we defining the established how the which positioned technology to and leader monitoring to are market our to continue puts as in be in build reach, in for future leverage years We a expansive technology look platform and us focus, the as of position, we strategy, care our uniquely patient-centric position patient generation commercial a robust EKG can market Quintuplem

open now to the like would I and questions. Dan call Operator? Brice, that, With for

Gong on question comes line first from The of Instructions] Allen the JPMorgan. [Operator

quarter, the you one it quarter. great of some continued of called out one have March. looks how February. quick a that a And little momentum challenge had into just with Congratulations impacts, to start. I first in January on bit you weather-related strong a In kind like

just strong of to ET Monitor kind momentum second curious so and So quarter? you're the into far seeing that hear still say, from, if Zio

Allen, it's Quentin here.

of the QX. part We part continue into would been first the have April. pick quarter. the I quarter that saw through see your momentum month date. speaking momentum second up to to unchanged, say relatively that second continued it's of to really back in in the begin to the point, here of And And

seen it AT product it we've the continued, So and as as line. product on has well the continue line monitor both

question line Kaczor from the on Blair. next Margaret The William comes of

I guess I'd some around of time guys spend time to that you like around Epic data XX% little a the sounds very referenced and Aura, meaningful.

curious time just I'm can that should how step savings those meaningful you if of to conceptualize user, is I market is ultimately, kind follow-up at expansion. taking classed it? imagine to And X. But the lead that to the were that or So share

better a So metrics, sorts I we that guess, get with I start would even you when around those think sense should agree of to and that?

get agree and Margaret, gate partners here. one you,. whole out the outstanding reasons about we the with certainly would Epic, excited of of super been just they've we with relationship It's the

our closer and to excitement as them. So get enthusiasm, frankly, we just continues grow to

big focus. know, the time savings the and our In through savings as and a of part you that go integrations we terms integration currently today, of is work these

lift, that of a as And work that's of it to side. more teams resources accounts counted to expect both also EHR get matter from the a Aura, both many goal with in well we our is Our of on takes start systems, be team, a fully weeks. With matter time XX% that financial the resources. of can as that integrated than big account is months our the but

to not these doors, Epic when we or accounts really are that the to relationships. about as users, that that we even I right well. it But and an integration haven't today, of our on folks we accounts you order going Aura and as ours if that yet are offering in gotten up as incremental they're to front in we're excites Aura customer end those really accounts, ultimately accounts like And for they're that, a without not they're are already calling for not set have about those adopt us through only solution to because accounts to going For the their Aura and Epic think ultimately access product build required. a think coming as any

odds more the needle And I into think success why of only which and I as mover allow even is be share go and win, so we think to a chances it it to us increases will do future. only for our us capture

of over the of platform. and interface back across we looks broader year, 'XX, work in really that what here expand to like a will on my early to the that with as We'll in of universe. Epic contribution our out turn accounts system begin XXXX sort significant within Now, set offering mentioned in then that already that the with and expect in design order the 'XX. prepared part what their remarks we'll really out in pilot the that the continue like their looks don't and course I've I selected But

a think be Aura to when year could we're XX% comes Epic that exciting the working on. integration I and it really

Newitter next comes from question from The Truist. Richard

of as moving you can talk what where of the throughput you're in improvements going shift much terms curious of to in IDTF just where Francisco you just seeing much region? implications from are training gross And increase to productivity of the what how exiting through terms first on And you'll Maybe that we then how one the and also that terms year the hires. we're transition? quarter, does if that for that put on the any you in in the be margin I'm their onboarding a that's through think IDTF? San just

question. thanks Brice. is one. that take for This Rich, I'll the

in individuals and takes say to to fourth efficiently. months would last we speed quarter large these start about It up talked the as to quarter. nicely. investment have X that about we're progressing Honestly, for I optimize get So to we X fully

of sort And midway through. I think so we're

QX in QX, see that's more progress in we're so some and QX. However, to going definitely

. nicely. progressing it's So

allows XX% going feel resources progress It's we're population As of want us servicing the now, XXXX. and and us make of as efficiently IDTF, to about effectively those we to and good slightly through can. frankly, excellence do that, center And we continuing about the that far having being for the We're north patient that. we there. talked transition we volumes possibly exiting on sure to as as make the

you way As back the half XXX about gross efficiency year, think in move think into seeing margin that contributing back so San I up about the from XX% the I to points. now technician XX% really or of step-up we're the the basis clinical the that half range about Francisco in

contributing home as XXX X the out like line all with We the there. about continue are I put the followed our we think ultimately I And then by progress push points. guidance about about making automation think our enrollment, XXX and basis Monitor of in feel points. about scale contributing business and into feel component Zio further Monitor expectations good basis to in-clinic about Zio the then platform we

Thibault comes question of from BTIG. The next Marie

Congrats very nice a on guidance. more a on QX. wanted to bit ask little I

about should this of You know the you help prudence a was guide? in? and had in very with some Can early I you consider how there we range? Was us against that nice the disruption revenue How a that face set new quarter. quarter, weather dealing baked little think

this Marie, for Thanks is the question. again. Yes. Brice

from the disruption on. beat We bit about of did little early through I to for was think pass first what quarter. the was a to important talk us do

the half, in QX. and recovery incredible saw momentum back we However, continued into

we as tell guidance it. going you, of we growth have the We absolutely a we believe you're end have top forward, way And rates certainly we relatively range, guidance it feel midpoint and and good that at the does the just so setup, consistent back. I'll lot then our front at tailwinds the growth accelerating. achievable, Quentin's in about have feel look well when as at about us, and are opportunity moving the great it. But feel we of you that's in to talked about see We've prepared about them remarks at

the However, believe launch the going right? it launch commercial does execution, to with conversations take in product, on able we requires internationally. execute FDA. the we're are We're and We're Zio we the There of all Monitor those. some be the right? have on, navigating to truly midst It to some execute things of

However, year. the for the through, the we until to going selling guidance we're execution quarters last of play be see X that on

comes next Citibank. Your from Joanne Wuensch from question

Just are a you what on is new Department Where warning current resolution? here. And of up FDA few for of Justice? the for on AT? letter catch thinking Anything monitor the timing the

for would I continue be question. encouraged FDA perspective, on tell Look, we an thanks Joanne, the to from FDA. the the with you, really going that's with work

we're through questions few and And going to and this maybe an work of go approval answering back has forth. here. have. progress a that of like have sure that they approval It's we those I I the that originally is we the teams, the level just again, couple all months also feel We with a behind sometime later taken. the questions making around couldn't it. see our would as collaboration in never addresses applaud think X FDA but probably that great confidence been. year. see about I we're the my it. better higher applaud It's ever as matter just the own it's had just making high and sides approach the as way an And a agency feel ultimately back part -- with the we're I a with And here anticipated and that the been forth mid

that getting again, So MCT we feel the that's continues the good into about progress the momentum the there appreciate and to new first product category put and the I code the the made code there, made relationship just again with created think being progress that's being validate agency. being core

of we'll respect in in year of on expect with XXXX, which part the this towards to MCT of still but the the probably product half little continue a in into that year, to It's agency. With file get back of bringing we're half back market have the believe half latter skewed I the XXXX. filed means to second MCT, the bit the

MCT. excited So with

of think have you, about XX% we XX future, up And revenue us. remind on growth that that in you MCT of nearly we fact that growth to about can about X% that I'll the cardiac in the levers of place. long-term $XXX monitoring marketplace of every despite is capture we MCT million pushing when space points have only the incremental

product So come to that MCT And going we're in is very features enhanced about MCT the once one. important an through. that excited it we are get

to DOJ, on And this not in point anything at update then the on time.

answer to come lot here, of the forth been really when much provide there But back and a come. questions not they dialogue there's or hasn't and continue information when and update update is questions something on certain but on, be to changes, time. point a not Certainly, that and to to there's in it, just we'll here. update to We if lot at this there

comes the on Titchmarsh question next The Kallum from Morgan of line Stanley.

stick Just if okay. here, to MCT that's

in X% about market alluded You this today. to share for AT

to competitors. do coming of your pretty market? I MCT, Because first small move share are lightweight though it think today realistically, So the a devices this as years high-tech through think of MCT after there could launch in of from where couple of market those seems couple you

your it So about I'm you just product encouraging is a that's here? potential about uptake curious what

we can far Yes. how Look, Kallum. get,

success the I market. going the wait in to think we're with see have and we that

Zio win reasons for. of call duration XX here long-term a One of is monitoring prescribing we is why where And high compelling product believe is. why what think they're is quite our see is the tell out data XX The well really today we sufficient. I very have to want or monitoring looking scripts also writing build. of way I because up the and data that point incredibly can exact while opportunity days of one for days. customer days MCT the with to fascinating And respect of competitive know continues is you that monitoring in cardiac to XX customers that the that is products same we of to I isn't the to think to degree only what's

to to compel them that's that product. doing And towards as customer we gap. closing this with MCT things met. meet customer And so frankly, enhanced continue where well, continue the data the in . wants to one the but need we work of need be that And we're to just to

event an products not that able capability eliminate The for perspective step MCT physician's well downgradable is why thing our building the competitors that them. actual offer MCT begin -- a product insurance other our is for into be device, something capabilities and can Zio the they argument will to is the a on a lot not found monitor to those when of are right from into down like we're

expectations there So way, to -- the not all run in room our is have setting whether to market, there that of share success. can monitoring market of get market have to way the in XX% capture certainly, we're but cardiac MCT we a we like long-term and lot

like to get our So would if But you in just say. compete there incremental of have ultimately it. XX million opportunities success and that's our for I half with we're up picking that? company. to and of revenue that get $XXX to points, an hard It's

of Fargo. comes Nathan The Treybeck next the on Wells question from line

quarter. full don't expect signify from an also And Congrats Can great currently? the your impact just where remarks. your with still you rollout? you think transition. And gain your you when I Signify on pilot? update do out I heard on provide Does in CEO the announced this this you are a opening call And partnership? in Health partnership outlook specifically you

that we space. pilot through of Nathan, several I still and it in we're We're launch remarks, care fully I the working we here new still anything that, very collaboration a innovative back signed the partnership this We actually at terms primary is in to expect commercial encouraging. the about up with was phase, prepared in It partners but look how made Signify. excited year. this changes think don't QX comment turn a into of in half the broader in

that address of We these channels to if bit this to XX% allows we players. really like care saw the and point care So I primary were to. ultimately of nearly tell way PCC. we to innovative that were is very I were you results speak arrhythmia patches back point have I informative, an think the asymptomatic, innovative to the patients early in saw other a little found results to see the some with can the applied at time. that

the of are by the of into other players We're excited of we're that innovative prospects by the the coming Signify relationship. So excited care some primary prospects this.

this focus back with I it's to that of think going incremental address ease future. high create of comes it and accuracy, tremendous It's use. is care ultimately, diagnostic play into to respect the is ability this the validates absolutely I really our positioned care. delivering and value primary this is ultimately efficiencies value-based with whole applied the future like on get workflow incredible that all just thesis to yield the into in the that device place to just this

So lot we're we're we the to more about going excited, a in half the And play out hopefully, couldn't year. more it. that but of talking be whole back let

The Rescott next David Baird. comes from question of

here. could clarify Francisco start on question a I Great. comments to there. volumes provided frame wondering then above above I'm that year through the say came if of I comment I that San on percentage for you opportunity you then the had Congrats Quentin on strong you were Brice, one a the exiting to the the appreciate there. XX% Signify, just size Signify. made wanted But up just XXXX, XX%? or maybe of you And Did

then of many in-home half eligible diagnostics, Wondering called the for out that, of million $X longer at think a services of back about risk XXXX. are pay annual last the and term app evaluations. -- and the company therefore, for those sense you maybe kind was into how I if year have preventive and that

a to sense participate fourth patient want Is more in patients? decide up rolls this like out their Beyond is eligible offered get the rollout in these rolled Or or some for into patients? of I'm the this? to not how whether getting initial type across program patients? to they this trying to it just it more And

clarification, the with the off. throughout continued progress a kick Yes, just in it rest year. progress Dave, maybe and QX I'll of just XX north of expected XX% exiting

And think, opportunity Signify like. potential tell around the it's I with a right can you, had Yes. what David, of can now. early discussions look lot I we've

out least maybe there where disease identifying at it's other arrhythmias comorbids the Probably we're or criteria, of you around way down. these you you I look states go to diabetes, in XX% describe obesity. still are so back, mSToPS the best population. data it it's that at of present, COPD, the some nailing that's it's the think look maybe is maybe at It's

think care to apply And be that it's The there know is one position. a to if home see the that, tends that can needs We in I opportunity. rates see so those can out there? you that if signify, those is, get question significant pretty a more to population

little does it's So higher, those are different we that where a rates mean go. a population that of as even we'll bit see

line comes The the Bill next from Plovanic Canaccord. question of from

a to Zio step wanted the Monitor. launch Just just take on of back

that? -- Just compliance terms you're uptake Or Zio existing Monitor the new you're accounts? And the all you still then Are accounts. with good in in transitioning just rate. where one, seeing getting new of accounts and are

saw is early and the carrying I through? on that device. think was of the rate if And higher one still I'm things a wondering compliance returning you

Bill, it's Brice.

new are lot, the XX% that approaching, it, level or Monitor. case. yes, And we're on So accounts the so existing Zio absolutely being accounts also with that coming is starting on converted. All of call

are incredibly So come it the up slowly have existing accounts on you right new it, the here. with progress Zio speed on accounts and to then Monitor gone will well. But has

yield rate, those of much there device frankly, coming Zio the As is a the to related far of the absolutely, form back is which the just also benefit data. diagnostic monitor, as factor, with high to and compliance but

play ticking a into Home a there's little seeing there's PCP will these compliance a a those. And other return tends of enrollment you, tell of sort as there. so bit. be some little we come lower at channels up little dynamic I alternative there. bit are to an And improvement for here. few bit and dynamics place, different

everyone rate good we However, on really the horizon. return monitor, device feel nicely improving over time is that about

from final Kalia today comes The from Oppenheimer. question Suraj

for one Brice. So Quentin, I'll I for you, quickly guess throw one just

So guess why I'm sleep. Quentin, in terms I of sleep, curious,

if is line, relative currently terms use Just are to right? AF, the complex, going the loosely So technicians? read-throughs de -- I report decision given outcomes if could, OSA which you is complexity IDTF. of is mean, trying higher can and been obviously trade-off predictable, proposition right? Brice, OpEx of -- So see And the top in curious at XX% made compared if there so quickly, I what I'm value minimis a there you and Has what it understand I between a SFO is I'm guys to per are and

Thanks, Suraj.

a reality So patients is the Look, that so prevalence high. incredibly sleep. performed the think they EP physician. get I'll And cardiologists, the that or primary Ultimately, by they with sleep these the there a specialist on or is the need hit that first many start the a care primary reality a I one diagnosis. right OA of to get is And EP care of further physician. them even diagnosis cardiologist or on referred

the customers, And to streamline with add very we down practice for or If groups how customers. the of top challenging ways sit absolute their these we list. consistently access in figure is list patients. to have advisory our same with that as to at we our with this very not, the out value top could we deal and these sleep us incremental cumbersome process help that We ask ways of have the

sleep physicians perform we enable in enrollment be -- able we test think like device analysis home the IDTF capabilities a diagnosis home very opportunity program. the home to with With to call of that the right refer to in and do to send trying they're our we office to get these fray. we into back we'll can't times, out a our in be figure X point, our leverage ZioSuite being our what many So platform, them a X, physician. the for it's easy going into never just They and natural sleep my They IDTF prescribe They integrated capabilities, get put a the seen diagnosis, and to a to back X, and ultimately is specialist. months. And synergy the on digital on. a lost hands

and to who You as it, XX% natural well. what Afib our here serving north for of OSA customers X able our we're of have or is do have There's what what between think looking and patients XX% year offer. a patients to about we point million now, will synergy what call all a

So it. we're by incredibly excited

I tremendous think for be us. it opportunity a could

we into product disease Our feature the continue to future. believe sleep we'll as right off opportunity diagnose the patch have enhance to its the of We set.

easy predictable, this the take into and known is service again, built just use it's so which of to step natural advantage highly that offering and highly -- to become we've and it's Brice? accurate. to date And what for,

Yes, Suraj. Yes.

San question Center on and Excellence. Francisco a the of the CCTs So

themselves run gross through So down administrative margin, gross component, The OpEx, through of margin. the remember, in OpEx. CCT the but of it that rolls a costs there's vast not resides through piece majority

in XXX natural as the it And to in so would stands which what causing is there's -- as I on would year. Again, expect the they progression inefficiency, of the over any central believe now, back to now. the that's stand we half the read-throughs gross other the we margin. is in no that be will the efficiency level see X tune of a X basis the say bit than little points. of pressure about reason time. There either is of different And

potential And a tremendously efficiency gains where you over hired we so see can time. group talented frankly,

take up the we with through the other to time for see so little feel over the get just to It's a going levels, great gross time. margin of again, to play efficiency we IDTFs. So about bit them

I'll team further We on closing to have hand line, remarks. so management for any questions the back no the

begin you we momentum to demonstrate become adjacencies XXXX the growing as more leverage financial set and continue we for channel. We're the like year as grow. to into the sleep progress to significant about new to care in excited up expand our operationally continue business in half to primary the to more Well, start today. couldn't we explore of as be efforts opening the back excellent extremely In thank us pleased about and joining our

largest yet in contribute have expand MCT remain step sleep the to the In a us, catalysts Zio markets. we ACM that entry innovative primary Japan, solution, market are into growth of adjacent into care which new to further in addition, to many in front and world including success, into second our

is course employees grateful iRhythm's of brighter world each a future in see to has as couple doing efforts of it and I'm our around Goodbye. job truly over our never next the of today, the than great progressing been the we'll they're forward. months.

This concludes today's conference all for call. Thank you joining.

your now disconnect lines. may You