iRhythm Technologies, Inc. (NASDAQ:IRTC) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 04:30 pm ET

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iRhythm Technologies, Inc. (NASDAQ:IRTC) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to your iRhythm Quarter Four 2018 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

(Operator Instructions) As a reminder, today's call will be recorded.

I would now like to turn the call over to Lynn Lewis with Investor Relations. Ma'am, you may begin.

Executive
Lynn Lewis

Thank you, Sydney. Thank you all for participating in today's call. Joining me are Kevin King, CEO; Matthew Garrett CFO; and Derrick Sung, EVP of Strategy and Corporate Development. Earlier today, iRhythm Technologies released financial results for the fourth quarter and full-year ended December 31 2018. A copy of the press release is available on the Company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of Federal securities laws, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical fact should be deemed to be forward-looking statements.

All forward-looking statements, including, without limitation, our examination of operating trends and our future financial expectations, which includes expectations for hiring, growth in our organization, and reimbursement, guidance for revenue, gross margin and operating expenses in 2019, are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and descriptions of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our most recent quarterly report on Form 10-K with the Securities and Exchange Commission.

iRhythm disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements whether because of new information, future events or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, February 12th, 2019.

With that, I'll turn the call over to Kevin.

Executive
Kevin M. King

Thanks, Lynn. Good afternoon, and thanks for joining us. Strong momentum carried us into 2018 and we exited the year even stronger. Our full year revenue was $147.3 million, representing 55% growth over the prior year after adjusting for Topic 606 and exceeding our guidance range of $142 million to $144 million. Gross margin for the full year improved 2.9 points. Fourth quarter revenue was $43.2 million, up 56% when compared to the prior-year period and gross margins increased to 75.6%, a 3.4 point improvement over the same period in 2017.

I'm exceptionally proud of our team's many accomplishments, which included substantial progress on the long and short-term goals we set for our organization. Briefly this past year, we achieved our annual sales expansion goal reaching 110 reps; increased sales productivity in terms