iRhythm Technologies, Inc. (NASDAQ:IRTC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 04:30 pm ET

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iRhythm Technologies, Inc. (NASDAQ:IRTC) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] And our first question comes from Robbie Marcus with JPMorgan. You may proceed.

Analyst
Lilly

Hi, this is actually a Lilly [Phonetic] on for Robbie. Thanks for taking the question. And could you provide a bit of color on the use of ZIO in acute settings in the quarter? I understand you probably don't want to break out specific numbers. But how big of a benefit was the acceleration in adoption here? And are these tailwinds something that we can expect to continue to see in the back half of the year? Or will this kind of slow down as the virus abates?

Executive
Kevin King

Lili, this is Kevin. What the acute setting, are you referring to ZIO ATs used in hospital?

Analyst
Lilly

Yes, that's right. Sorry about that.

Executive
Kevin King

Yes, for inpatients. That level has decreased. And the uptick in ZIO AT volume we're talking about is in the traditional ambulatory outpatient cases, where the likelihood or possible threat of a life-critical arrhythmia exists. Many of the patients that were in the COVID environment back in the March, April time frame, when we gave the May reporting, those numbers, too, were a little bit on the smaller side. A vast majority here is ambulatory-related traditional market. And we're extremely confident in that adoption rate that we're seeing right now. This is the core market that we're growing ourselves into.

Analyst
Lilly

Great. And just one quick follow-up. As you guys mentioned, there's clear benefit to ZIO over traditional Holters in this environment, given the single-wear nature of the device. So what have you been hearing on doctors on how this has impacted their adoption? And do you think that this could have lasting impacts longer term post virus?

Executive
Kevin King

Yes. In a similar way to how we're seeing telemedicine become adopted due to the pandemic, we're also finding on the Holter side, this is much of an accelerant COVID is an accelerant to adoption. In many cases, patients are refusing to wear medical devices that have been that are reused or have been worn by others. There are staff constraints.

And then of course, just the ability to do Holter monitoring via home enrollment with a device that has limited capacity or a hospital would have limited number of Holter monitors, when we have a single-use wearable with essentially limitless inventory to provide to accounts for home enrollment, there's major advantages here. And then of course, all of the demonstrated clinical superiority of ZIO is weighing in here as well in a big way.

Analyst
Lilly

Great, thank you.

Executive
Kevin King

Welcome.

Operator
Operator

And our next question comes from David Lewis with Morgan Stanley. You may proceed.

Analyst
Calvin

Hi, thanks for taking my question. This is Calvin [Phonetic] on for David. Just kind of a related question, could you comment on how resurgence has impacted either June or July results in sort of either direction in terms of both the underlying demand from regular way ZIO patients as well as, to your point perhaps in the context of constrained hospital capacity and resurging