iRhythm Reports Smaller Than Expected Q2 Loss; Narrows Annual Sales Guidance

iRhythm Technologies Inc IRTC posted a Q2 adjusted loss of $(0.79) compared to a loss of $(0.59) a year ago, beating the consensus of $(0.92)
Sales reached $102.1 million, beating the consensus of $100.12 million.
Revenue was up 25.6% year-over-year, primarily driven by volume growth of the Zio XT and AT single-use monitors and increases in Medicare pricing.
The gross margin improved to 68.8%, up from 68.0% a year ago, primarily due to increased volume and average selling price, partially offset by increases in cost per unit.
"New account openings were up 22% Q/Q, and revenue volumes increased 10% sequentially, underscoring our solid performance amidst a difficult market environment," iRhythm CEO and President Quentin Blackford said. "With business highlights regarding reimbursement and our Zio Watch clearance already announced in July, we are pleased with how the second half of 2022 has begun."
Guidance: iRhythm expects FY22 revenue of $415 million - $420 million (vs. the consensus of $417.98 million), compared to the $410 million - $420 announced in Q1.
The company expects a gross margin of 68% - 69% and adjusted operating expenses of $375 million - $385 million. Adjusted EBITDA loss is expected to be $(12.5) million - $(17.5) million.
Price Action: IRTC shares are up 0.48% at $154.16 during the market session on the last check Friday.

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