IRMD - Earnings call 2 2023 | IRadimed Corporation

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Operator

Welcome to the IRadimed Corporation Second Quarter of 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, August 3, 2023, and contains time-sensitive information that is accurate only as of today. Earlier, IRadimed released its financial results for the second quarter of 2023. A copy of this press release announcing the company's earnings is available under the heading News on their website at iradimed.com. A press release copy was also furnished to the Securities and Exchange Commission on Form 8-K and can be found on sec.gov. This call is being broadcast live over the Internet on the company's website at iradimed.com, and a replay of the call will be available on the website for the next 90 days.

in of will Reform the XXXX. information within forward-looking Act the meaning the Private of today's constitute session statements of Some Securities Litigation

statements forward-looking reminds you and future results results, the Forward-looking materially expected to that future from several differ may factors. these company's IRadimed and due include plans results. future may on focus statements events performance, risk

company's SEC's company's Factors relevant description and uncertainties the the may of at section affect the which be Susi, Officer Commission, obtained Risk to Susi? the the free Corporation. over Exchange risks would recent turn President from with business, the to a IRadimed Chief Executive filed see of website like For may and please and Roger sec.gov. I call Mr. reports the most of that Securities

Roger Susi

Good top quarter. Last top for thank have announcement revenue this good us ever news call. by Xth now out point today's marks QX consecutive I can revenue quarter, QX I our you reported this quarter. more XXXX that record our also on revenue the We is be But our seen today, certainly as once again morning. quarter. morning, and joining was

press The of also ability strong base proud to into our make $X.XX monitor order team. Revenue at XXXX with GAAP for XX% release earnings of over QX very deep share quarter As a signs this further were in Non-GAAP competitive share quarter inroads representing product $X.XX. quarter earnings fantastic came increase XXXX. very entire lines. the continued and for patient share, second vital were again, confidence of in has diluted for per second morning's of efforts per XX% revenue $XX.X over orders XXXX growth the diluted second announced, MRI execute. to the XXXX. I'm a pump million, inspiring been per quarter the the increase the second all growth Once

comfortable feel year, learn for we in the raising will our quarter, in which last again you with As of moment. guidance a

performance customer products. high a Our sales strong of has for maintained our level evidenced as by team demand

and less to surrounding trade reallocate arise. Our cautious. I'd total provide backlog still in and supply our to can visibility level. built a resources our issues buildup. Once maneuver seen concern. robust and our the QX backlog supply FDA a excellent us become as allows through of chain MRIV XXXX to efforts issues again, We must may new pump. One be be of Strong provides Those progress like inventory be less caution continue to toward at continues

QX and testing have often they for XXX(k) submit have we As at few continuing infusion was Massive the the finalize personnel One in next face-to-face face-to-face now understand, been reported see very could expect to -- lead that director, the since in is may address interaction people meeting we're that which dialogue work we expeditiously. FDA. new I and ability to repeated FDA of will met. since and hopeful our the IV with to this last or we regarding up by some quarter, these as refile, the the company that area, our of come COVID. say, repeat which a That remotely, people filled. us, whom to in was, a we device But D.C. then have been facility devices, and the year. there assistant have of director positions such during first speed reviewer we pumps, continue we FDA should underway plainly And had the will XXX(k) visit.

recall FDA And week this so from clearing yet although mostly having recently staffing a with Fresenius a suppliers, just has working other background, been this pump hospital cleared. upon and new Baxter pump earlier adds and FDA to repeat as repeat been As the XXX(k)s we IV which them the IV for loads well, likely may XXX(k) player, people. another for require happening see

view strong stream a into MRIV in take pump the must our that revenue remain for will conservative sales current XXXX. we So

recent Now and at million will that I'd like indicate the revenue Therefore, our to trajectory now recap QX an confidence continue. the upward expectation increase of in million. $XX.X to our for this $XX.X performance our we with announce year guidance

non-GAAP annual a raised to is GAAP $X.XX share raise the to to $X.XX diluted and forecasted earnings also We per diluted to $X.XX, $X.XX. earnings

quarter share GAAP quarter $XX.X million, million being typically $X.XX weakest, of per $X.XX. earnings to revenue $X.XX third non-GAAP third diluted the XXXX, to to share For earnings per of diluted report $XX.X of to our we and expect $X.XX

over I'd like the Thanks, to to Glenn, results quarter. of Jack the to fiscal call review Jack. CFO, turn our Now the

John Glenn

Thank and Roger, everyone. morning, you, Good

past, in basis a basis. As the a our non-GAAP reported are on results GAAP and

these a measures non-GAAP our of last measures the on GAAP find a can today's and You release release. this page the description to non-GAAP morning's operating in of of measure reconciliation earnings

to we the of increase and in compared XXXX. Device This compared was for to quarter As of million $XX.X our contracts QX revenue international increased $X.X a headcount were mix XX% was gross gross and disposables increase million. sales XXXX. their earlier total the in revenue the XX% for the to represented the XX.X% quarter for QX as the or The was pump to revenue million, or Overall, XX% in XX% $X.X were for larger second for of and XX.X% basis, revenue. this monitor XX.X% quarter. to of of portion total and lower margin $X.X increased dollar the and of the to second an while to XX% year. Operating this decrease for consistent additional periods. The quarter sales million. to sales was XXXX XXXX is of increase accounted the quarter XX% inherently driven to both general higher Domestic legal of by Revenue maintenance to a higher $XX.X second due reported as XXXX. quarter On for for second expenses XXXX revenue, with primarily sales expenses. million and of XX% margin increase professional international in quarter services compared million $X primarily administrative XXXX, a revenue a XXXX from due million, in domestic revenue, at increased million, ASPs revenue compared XX% quarter to compared morning, geographic of XX% $X.X $XX.X last expenses increased XX% for

second quarter was the of XXXX quarter. XXXX, the the On million from $X.XX XX.X% June for share in income for million -- of million XXXX. Cash in in per ended to due result, income a income the adjusted $X.XXX non-GAAP approximately increase in same the a to to quarter XX, compared basis, of is a X operations XX% the tax from recognized taxable expense during $X.X second an up approximately per rate resulting XXXX. On diluted for diluted XXXX. $XXX,XXX period second XXXX. in $X.XX the months of $X.XX basis, net was XXXX of share quarter. We a grew compared for As expense was for $X.X XXXX quarter a XXXX for in the tax to compared the to operations $X from tax $X.XX income quarter GAAP This second effective higher million,

respectively. And non-GAAP XXXX XXXX, was questions. measure, will now that, million, call June the XX, our over for For a the cash and flow, X Operator? and free $X.X $X.X million I with turn ended months

Operator

from Instructions] [Operator the Takkinen comes Frank question Our Markets. Lake of with first line Street Capital

Frank Takkinen

favorable, the you bit Roger, durability another trends you how in should go-forward prepared little of remarks, in about especially a little related business. Congrats a monitoring spoke basis? maybe be about monitoring solid expand sounds like the very Can more on about and ordering to updates it then the on growth on that but it quarter. any Philips to think bit and we talk continue a

Roger Susi

to good you. talk to Okay. Yes, Frank,

describing I don't has So of or I the not take as -- new our lot -- pretty been sales mean, We've to traction years. a we of this feel and X-plus monitor anymore. a But now gaining been so new from We're that's heck it want still, past at customers especially But you it continue it player, it's for in know, one which the that force. there away year, this been to a Philips strongly we in in that see is market, in remaining to deterioration business. great large favor. and in gaining and U.S. mentioned, job bringing market. you is doing our And the how monitoring it as featuring and MR they're

trend continues. certainly we've all year, So and that that seen

their very the the in a is still -- the neck hand, revenue remain X the they're neck and from far pump. bringing And still performance for these almost demand we lines. product as pleasantly surprised On other that very as we're in with

there's don't direction things and strong again, to But seeing us. milking very compete a going this to Philips, it's very be be think on that we're that we Philips point encouraging so basis. We that not the and in yes, it. just business, So for that in. they're your moving about We'll predict have turn

Frank Takkinen

is in Maybe have you're any you disclosing being game makes price. That assumption guys able only town I it. you one ASPs. monitoring in pricing business, my take the sense. changes? follow-up Got Philips that Can about specifically. deemphasizing But with talk longer been know to no

as forward So more well. that there's plans you and a any just about was hoping bit take more talk little could I if price to

Roger Susi

products both way, subject Yes. of a most some are in or GPO domestic for to sales shape Well, we form. contract -- these

of had a we've believe So fact, plus. working X new for have as been a on their the right, And pricing. pricing it Jack? that, But time move GPOs start July, major would year I takes know, in long to in you

John Glenn

Yes.

Roger Susi

Yes.

that fairly it's we're and will sell just monitor. goods. have see both of it in It be the increasing to by of you'll in probably fruits But monitor It a increases. probably substantial see along speed think see to with for it'll we But certainly the devices things the larger the them, in those number of new of price coming a price hard start the -- we start little will it not also done. time see such third by we was up. and fourth level -- and cost for quarter, the quarter, in, revenue all next we you at amount year, smaller more But was orders through getting for to you'll quotes just the of So went because the pump. the that in

Frank Takkinen

one, one on Okay. my Then the That's for P&L. helpful. just maybe last

the done faster really guys growing consistently line a nice much a You operating expenses. at have than job top rate

$XXX If you're a to need that business occur that becoming the we looking couple to cadence to support of changes closer material the material think of within years, over changes million to should to million any a any out next organization? or $XXX P&L

Roger Susi

there we're CapEx and about speaking. stuff the We're building but talking would a anyhow, relatively new building, not much be

as personnel, as cost cost, real of ongoing the So thing, far the no. like that sort

John Glenn

stay it's upcoming just quarters I as side of you'll on to where have sales, the OpEx, a see be Yes, commission at, higher. higher would we to probably Frank, in sale as some we we're of the with over that will expense move line forward. add, plan that the where percentage that sales is Obviously, going sales

Frank Takkinen

progress. Okay. the all That's I'll great. stop there. again on Congrats

Roger Susi

Thank you.

John Glenn

Thank you.

Operator

with This comes Henry Scott ROTH Capital. question from

Scott Henry

Thank quarter. very you. Gentlemen, another strong

you the product? just question. as think guidance, of you meaning the demand in the and always more or fill the demand of capacity, do When a upside the kind it's function additional you can First think upside in we can the as about long make having quarter

Roger Susi

I don't know.

want one, by that confused I'm You little Jack? it. a

John Glenn

having Well, very mentioned. have we've Scott, Roger I a continue robust strong backlog, from and to benefiting we as a backlog, certainly been think, very

But mean, some upcoming I in gives So the of demand us both think, I those it's visibility side. from things. quarters yes, certainly, that probably the

Scott Henry

the And Roger, today? then share about Where looking your Okay. And you how monitor market about curious think when monitor your would terms size estimate we think you would of longer prices? be the I'd annual your term, take. at market, in market is

Roger Susi

Well, the size we $XXX think of maybe million-ish. the market is

so we far. look that And what at so out have of can you

that we probably So right, that percent, market of upper you share. strong tell have XXs would

million. been has it could thing, which market overall think don't this a the significant I in but bit, overall market, presence still a $XXX that's think little the our I increasing Unless around yes. be So, market really is

there market. of XX%, can you it So from have that XX%, there it. certainly we have figure out you must XX% And that

Scott Henry

the How about growth mean, perhaps And how I about million? rate of a component, as monitors the about we think well the inflationary you there's mentioned obviously, think to, more when as if perhaps, component. pricing monitor. think an you just market, you they growth that have But better order monitor do volume they for and should a the alluded as $XXX

Roger Susi

like the use the able portability them call Well, pump a But we it, be of it would their per strategy workflow, where multiple, done those into we're with for have of these with that we've have the optimistic worked be power users X of they we'll pumps do what that power with of grow it. we we XX% as users. to are probably and because more scanner our than that customers

really are for up take really see like bought U.S. and us open and I people -- buying the number our in to primarily away us haven't are are there those think But serious what from good market, product. we and and market mean million. majority because But still we years will the we of product, gone moving seeming the the giving So years the and and yet, anyways. -- nod they up a is Philips sell, I the above $XXX a business years are you say, that's which that majority

Scott Henry

question. rollout, days. Final still very great. The early FMD obviously Okay,

Given potential the revenue past how stream? couple of think you quarters, about that the do size

Roger Susi

I've that on think sell way bit, you pump last I it the okay. a different said, monitor. the a right, about than we're you is like We've sell Well, a this or before talked doing call

a to it it's -- the on and eye force monitors the a users is moment-by-moment getting do in the we're and honing their it's while that team get you the basis. FMD, excitement interact to on the footing and interact those So it. But the our sales the buyer's their though those, same sales they that, point, doesn't pump set to call itself the lend pizzaz buy with taken it, you daily with you it, forget because where skills. they're for recognizing

market selling where I up under we as more, $XX nicely. more think is so mean, the Still that's and worldwide. whole and I've said goes, businesses And I are it and million, coming this before,

a -- every be grow? protected -- be it such by and will There's should every device. They could every So door with should. doorway by could MRI protected

is advertisements. extent, think small. the far I there people so the have bringing don't walk And to to their in method have market players through small it the some that that are this been catalogs, of and is They out reason it's essentially, get that, be to do and not too get chunk sort having I'm very very, selling we with said market, direct could that ready it that of I'd $XX that. satisfied the excited all do. our But to of million, if we

Scott Henry

for Okay. the Great. Thank color. you

Roger Susi

Scott. right, you. Good All to talk to

Operator

Chris is with next Our from last this comes Singular Research, question. our question and

Unknown Analyst

I'm Ashim. your status on Yes. chain us supply for update in of Can the give an challenges? you

Roger Susi

I ago. Well, quarters to to get It away. better they're starting you, fading like even X was alluded

a a was there on chain fading quarter, supply into I Yes. There a major background that. last of it, I solve that still what we at we risk not longer week. don't or So issue. some every year watchful That's to general, dealt eye keep is But keeping longer, that far eye which still this problem But repeated this from There's chain mentioned on predict a today. are with ago, fires careful I A spot week every shortages or supply risk were chance problem. any pretty in still significant in. the much we any point. --

Unknown Analyst

in helping cross-selling the new products how And is the Okay. FMD efforts?

Roger Susi

that's Well, an -- it's Oh, that you've interesting. it's great. got one more --

at You FMD, go could an has into a or the pump door hospital and everybody they're MRI a for use shopping time. whether basically monitor a that an

reason more show talk have else your one something them. to go in you and to it's to and So customer

a the nice is usage team. sales feature cross the for So

Unknown Analyst

on overall comment what's -- that? the you Can

Roger Susi

like opportunity -- well. or look over coming something as bundling that that, that's see that But we like at thinking were we'll plays you out how If these quarters.

Unknown Analyst

Okay.

you pricing on environment the these Can comment overall for Okay. products?

Roger Susi

as we Well, we've I our going been up, increasing price's said. mean, pricing.

units. as you of price more the of selling we've can the been sell see, we've been cost, increasing those So and numbers units,

So, it's check plus situations. for both

Operator

would Thank like to Susi back closing for Roger remarks. now the turn you. conference I to

Roger Susi

of Thank we very thank progresses. much. as growth. as results, our strong with great is successes it's that, another XXXX we you great that expect can reporting reported guide very quarter also demonstrating that It you, we've QX yet With year operator. strong again, I year forward future look performance pride pleasure And this continues. our to that with the And

Operator

you. Thank call. This concludes the

You may now disconnect.

IRadimed (IRMD) 3 Aug 232023 Q2 Earnings call transcript