IRMD - Earnings call 3 2023 | IRadimed Corporation

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Operator

Welcome to the IRadimed Corporation Third Quarter of 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, November 3, 2023, and contains time-sensitive information that is accurate only today. Earlier, IRadimed released its financial results for the third 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, a copy was also furnished to the Securities and Exchange Commission on Form 8-K and can be found at sec.gov.

website broadcast iradimed.com, the the and be on being company's on call is XX available at next website a the call live Internet over the will days. This the for replay of

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

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

be the For a the website SEC's risks description the filed Commission, may that obtained affect sec.gov. section at may Securities Factors company's of company's see free relevant please from the and recent reports Exchange with uncertainties the business, most of the and Risk which

like would Executive Chief please of I to over turn call President go to Roger Mr. and Susi, IRadimed Susi, ahead. Corporation. Officer the

Roger Susi

'XX. increase per for to diluted This our share, third diluted a revenue call. execute XX% at the you release again $X.XX in today's over showing grow joining ability on a ninth of Thank over quarter XXXX. share quarter third for of announced GAAP With press 'XX, per came earnings quarter. business. our our $XX.X representing quarter were million, morning. of record quarter earnings was 'XX and report XX% for share Non-GAAP Good per QX the third $X.XX. the us pleased morning's to very QX 'XX I'm consecutive third increase

customer growth this with customers gain new anticipate some past pump older materials, this monitor strong. as to and production well. our for remains Sales pull acceptance older And IV pumps, line program field the we patient of of vital to product needed science bring orders, remains quarter. very in of replacements setup. MR team orders large committed MRI strong, together entire to new The Our plans, with delivery and continues in able

As shall backlog quarter, bookings we feel comfortable typically to still a again year-to-date which guidance summer due we earn built raising sizable. new [ up quarter be is the with total to in our yet year, holidays, for weakest QX our last continues ] our for the moment.

strong As said to visibility as deliver provides before, excellent lead have we I time. issues though are maneuver and a striving this allows reduce may backlog reallocate us to and products arise, supply resources backlog less with customer and

customers domestic more we and However, they coming off to time that to XX This we our some we times purchased. days in still and products the plan international XXX. acceleration lead at lead quicker a lead long have of associated recently We backlog shave bit done production XX quote access and than customers by preferred. to close to through the materials being flow quarter. days an provide to time is of have But

remain results to Now which quarter, tests others in that's the like so like that FDA progress. provide MRI spoke progress testing far. I efforts are continues I'd of massive underway regarding finished, while pump. note Last new surrounding here, some positive to the IV with I'd XXXX the still our

And to progress and test. continued so matter the forward a it's complete of efforts

consider external for consultants. Still, a for with reduced additional external and FDA relationship for the we we statutory but neither engaged for FDA additional XXXXs carefully. XXX(k) XXX(k) ensure a cost using and is needs success support off XXX(k) for have minimal X will technical inexpensive. QX different FDA of pay Again, of been time. us with amount external We an to should support internal further such saw necessary payoff As feel our should X-month our approval help, time, refiling IV other input suggest help it team, external time new support recent we the that pump. another shorten that for clearance. the the input Though or we've with manufacturer's new targeting such the elements review hope such assistance, new time, review One is late

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

non-GAAP the diluted $X.XX We I excuse earnings per me. $X.XX $X.XX to and $X.XX, share GAAP annual diluted also -- earnings mean, forecasted raised $X.XX, to to of the

we GAAP (sic) expect -- diluted quarter [ to non-GAAP earnings $XX.X the report fourth of of revenue with earnings to expect to $XX.X say $X.XX million -- -- I For ] revenue to first yes, share of ] and per share report diluted $X.XX XXXX, per did $X.XX. $X.XX to of fourth we quarter fourth [ million XXXX, of

the to Glenn, the Now quarter. over to I'd like Jack financial call the turn to our results for CFO, review

John Glenn

everyone. morning, Thank you, and good Roger,

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

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

Domestic international reported at and the XXXX third quarter sales in morning, earlier was this of flat million, compared of increased $XX.X the quarter $X.X sales XX% increase $XX.X third we remained million As of to XX% to an revenue million. XXXX.

XX% at for for for total XX.XX% XX.X% services increased to by $X.X our monitor was driven The quarter for periods. in revenue were million domestic third from XXXX million margin gross XXXX while compared a 'XX, XX% quarter. XXXX for QX for $XX.X for to disposables This the of Device to accounted increased XX% compared XX% to was quarter revenue. the the both consistent Revenue XX% XXXX. increase QX of of contracts of maintenance $X.X and million. Overall, revenue revenue

higher expenses $X.X to The costs. material were higher of or regulatory XX.X% margin professional overhead decrease expenses or dollar primarily of revenue for to costs $X.X XXXX. increase XX% and increased to general in revenue and due legal a of On for gross Operating quarter and due is million headcount, raw compared million basis, primarily expenses expenses. and is the additional this and increased benefit third administrative higher

an operations rate a compared taxable grew income quarter resulting $X.X increase quarter. This tax XXXX ], tax million third We XXXX to X,XXX higher of of the in XXXX third quarter. XX.X% effective recognized expense for due As XXXX. a $XXX,XXX tax the of the million to in from to of approximately expense [ approximately the ] result, during XX% income in [ is

basis, the million On third same $X.XX quarter income measure for per in September the months $X.XX to adjusted diluted the was share per for On $X X income the non-GAAP share from for for quarter million $X.X XXXX. million to a ended compared third respectively. XXXX. 'XX $X.X cash was Cash a was and $X.XX ended was $X.XX basis, months a compared from flow, for September quarter. down the the XXXX free XXXX of $X.X GAAP non-GAAP net operations XXXX, period million, X XX, and our XX, And XXXX, for diluted

I with And will the turn over now Operator? that, call for questions.

Operator

first Our Henry will Instructions] Roth Partners. Capital of [Operator Scott from question come

Scott Henry

strong quarter. Congratulations another

couple of questions. a Just

you're pricing shift is OUS? with on what the monitors on U.S. thoughts the perhaps any between and And how environment? First, seeing the

Roger Susi

Roger. is Scott, this

take I'll that maybe one. So

to of by So our the July. months. we those that actually increased XX lot pricing a monitor I in has contracts increases negotiating The previous the over the think, began specifically, with largest,

going the prices it pump was that's are our So increase there. a was monitor, very, small, a decent increase up bit. actually. on And very The actually,

So relatively insignificant.

we're So not your was pushback -- we're thing, seeing seeing that of sort from question. a that if

the are as sales goes, strong. as the just internationally internationally for cultivating the had new very international far stout, in monitor penetrating of but rate pretty with we some monitor, as As both areas. has countries growth monitor that well historically, been in adoption and the sales been from The

in we've Colombia, some surprises had example, nice monitor opportunities for Mexico the So with some pleasant there. for and

things to in all, So report. guess, just I positive, all positive

Scott Henry

side, Great. do your to we And the monitor feel less focused your Has you now? still X right segment. then of landscape? anything Okay. that on to be Or take know on appears changed that [indiscernible] competitors share on

Roger Susi

good Well, question.

had only problems case, extremely long generally, in issues they focused, real little got their had they supply news during not did. are a that have They can so at they the because less we least deliveries So COVID not tell because chain their from be but focused. so weekly, But another are huge you them is. where focus we [indiscernible] the to which remains much than were still greater

up we there. catching So them see

overall, So let's that's, it their to still of force let's still have their just lighter hands say, them. light is full they and been removes fry with, the fish it But focus their say, the one the sales X X the dealing had of -- But same. size hurdles. is than bigger point of for

Scott Henry

strong margin third gross Roger. Okay. final question, Great, And the quarter. in

How XXXX, XX%, we move pumps. level? think for volumes Or the monitors about you do do in gross higher you to higher ceiling XX%, is start could think with that to volume of get As XX% margins? start in does on think XXXX, you about that to and

Roger Susi

question. okay? Another question, Another good good

say, components you paying them. some We for paying of that it let's lot were just with we COVID, really through during pricing on can't a nose advantage see but So hands get lose much, our the to did -- suppliers. were we

to people. that our fact, worst, our of for so I've It subject last a big week a just couple -- few this And raw materials a a with costs. as visible up of been is matter the materials impact percent. it's a days They're had

corrected. is there to So there something be

even for course, -- to have and cutting effort year. be and parts scaling sort were you should see that's effect now and -- supplier ground suppliers counting they're short But you shortages you now back the opportunity output. there of to be mandate X-quarter cost our long in -- reversed get think fix. The around. on are thinking take, this to it, that's turn there's We coming right? won't not -- it this lost they I'm it's back of very it so of some XXXX. an have and a coming year will upped semiconductor where quick, -- can But going surpluses during a How their in COVID like that to to that over But but recover -- expedite was can that

I be to able margin. even So question we yes, your will that our boost is, short hope answer gross to

Operator

LLC. Street Markets Frank [Operator Instructions] come of question Our Lake next from will Capital Takkinen

Unknown Analyst

Congrats your you quarter for Jack, slower strong expectations I on was QX Cox hoping quarter. to Frank. for Nelson for is mentioned seasonally orders. on being This a QX? another hear

Roger Susi

I for flip QX light we didn't is QX quarter get over year, pretty big Yes. the had carried usually far stuff until QX of last a the that year, there stuff, though QX. written lot because orders we a even were as still conventionally good as is is is last conventionally QX also think strong Well, QX a And strong. us. a had and

the So expect I change. mean Yes. we don't factor seasonality to

Unknown Analyst

it. place base understand on And to the be your in announcement X year that then to discontinue customer your years old. to Can context large better forward? help could increase try relation could and years installed Got how service over pumps IV And how pumps around X old? many of going over per us you

Roger Susi

believe I that -- lost I somehow think number. let Well, me

John Glenn

we over that category units think it's somewhere I that that to out in X,XXX X,XXX in think X there years. that are

Roger Susi

Yes.

large number I had of we've quoted, quoted we've a to -- XXX pumps. close already. think, So -- we've And

So the seeing start see -- I more those factor but certainly so orders -- a we in in that soon. X. we're being strength right? QX going being might at and be turn that December, QX, of So great start it as into the very bring to But orders QX. much we of in think Those here the kicks in some end that will

Operator

DiLorenzo Singular [Operator Instructions] question of Frank Our next come Research. from will

Unknown Analyst

going the the you be talk in next And past maintain expound Can fourth and growth systems you to about upon to extent for you detection able you into quarter strength ferromagnetic can year? this what the saw quarter? may forward

Roger Susi

grown learning quicker of -- Okay. to point product. with critical is demand we're market sales compared Yes. have what huge been our International at really it's call it's frankly, the domestic, a matter FMD sales but quite than the force the now. has our -- matter the is. a growing Well, where slowly, actually The of

a So number expectations. our we've on is it decent backlog the but not got up to

picking bit up those we see little more starting And the should for who They're quick is than sales as with territories as a FMDs sell a X And little U.S., monitor. the different that be how of with that. to. a international it seems to to the they're them. those or reps And our is think I learning to in different a grips little really to to come they it's matter a sale market, to talking that do, a folks different territories domestic pump the So sell ball be learn they with on quicker.

runway keys XXXX long that for So increase we U.S. the and year we the yet to to the opportunity, of in sales. position how position we lots to FMD, whom the and over product that gained the product

Unknown Analyst

One getting question forward? about talk of Okay. timing on approvals you a next-generation kind other as Can little regarding the for outside that your the pump. your far strategy that launch going as U.S. and bit

Roger Susi

currently. the logic yes, Oh, to they've turn ours notified deal team capacity and delayed products yet, the mid-late one until are mandatory mark kind the that our MDR applying we CE with won't of that's XXX-K stuff guns still the is for the with on [indiscernible] this probably the working like making our changes bodies to with for all the obtain will stuff summer have future MDR one, of

long So clear a files and tech time they're review to them. taking

would an have of that a we'd CE-marked So before be estimate mid-XXXX pump.

said accounts international Now X/X of probably that's our business. having for that,

The other X/X need of CE a it mark. doesn't

And launched the in so Those U.S. we'll -- will sooner. much those soon markets as enter soon very as we're enter

Operator

Instructions] would conference the session. remarks. Q&A turn This now to [Operator back Susi for to like end the Roger I will closing

Roger Susi

also great all we participating with we reporting With our it's thank Again, expect quarter forward you success. It another of the year And QX as call. year-end growth. I operator. results, you, a strong yet can XXXX to concludes. to is that, Thank today's that for in pleasure our that guide strong pride look performance great report demonstrating

Operator

This you. does the conclude call. Thank

and You may day, pleasant weekend. now Have disconnect. your enjoy a

IRadimed (IRMD) 3 Nov 232023 Q3 Earnings call transcript