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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Presentation
Executive
Kevin King

already demonstrated the impact of his leadership on our finance organization and input on our long-term growth objectives.

In my prepared remarks today, I'll discuss the key highlights of our second quarter, provide our current views of the market environment, discuss our outlook and our strategic priorities for this environment. Doug will go into more detail on our financials for the second quarter before we open the call up for questions. As we entered the second quarter, we faced many uncertainties related to the impact of COVID-19 and that would have and what that would have on our business. To manage through this uncertainty, we implemented three operating initiatives: first, to protect and support the health and wellbeing of our employees, our communities and our customers; second, to ensure uninterrupted ZIO Service delivery; and third, to ensure continued financial strength by adjusting our operating plan. Our team delivered on all three objectives and our financial and operating results for the second quarter demonstrate this. We were encouraged by our second quarter results despite the impact and challenges of COVID-19, which we felt especially early in the quarter.

Total revenue for the second quarter of 2020 was $50.9 million, a decrease of 3% compared to the same period in 2019 and a decrease of 20% compared to the first quarter of 2020. We saw steady recovery throughout the quarter, and the pace of recovery exceeded our expectations and revised operating plans. Average daily registration rates grew steadily through the quarter. And compared to the average weekly registration rates prior to COVID, April represented the trough at 65% of pre-COVID levels and June was approximately 90% of pre-COVID levels. While COVID-19 suppressed the overall market in the second quarter, we believe iRhythm increased its share of the market as measured by our success in three areas. First, compared to legacy Holter monitoring services, our clinically superior digital platform was proven to be well suited to deliver services in a virtual environment. Our single-use ZIO devices are patient-friendly and eliminate the need for cleaning of equipment between uses.

Second, our home enrollment service enabled by our digital platform was instrumental in maintaining the registration levels we experienced in the quarter. We expect it will remain an important component of many of our accounts workflows going forward. As we shared in early May, home enrollment represented over 50% of registrations for the month of April. As hospitals and physicians began resuming in-office patient visits, this percentage leveled out to just below 30% as we exited the quarter. We expect to remain at these levels for the foreseeable future, and believe this will be a key factor in ensuring continuity of patient care in the event of a continued ramp in COVID cases that leads to reduced in-office patient care. As such, we've been actively working on improving the efficiency of our home enrollment service and are prepared to support 100% of our volume, if needed. For example, we recently launched version 1.8 of ZioSuite,