IRMD - Earnings call transcript Q2 2024

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Operator

Welcome to the IRadimed Corporation Second Quarter of 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, August 1, 2024, and contains time-sensitive accurate information only today. Earlier, IRadimed released its financial results for the second quarter of 2024. A copy of this press release announcing the company's earnings is available under the heading News on our website at iradimed.com.

A copy of the press release was also furnished to the Securities and Exchange Commission on Form 8-K and can be found at sec.gov. the broadcast at the will iradimed.com, on website being the and be is the website days. company's and for call live Internet over on available This XX next a replay

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

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

be the a description the website SEC's risks For 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

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

Roger Susi

good on all Thank record you quarter. you, thank I'm and report another to call. morning, happy today's operator, yet and us joining for very

XXth $XX.X consecutive over record was this quarter record Driving quarter. at our revenue million. fact, In

In strong well, of GAAP addition, and earnings reaching up, from diluted XX% share as per increasing this with in came year. gross QX was earnings profit very XX%

in again, case margin. pumps. sizable backlog order remains the Once pump mostly is that XXXX extraordinary in the And QX check. revenue gross QX in product team this current model of Recall well, the now domestic pump intake the was Plus the backlog demand executing reflects to move generated results in our strong, actually the IV very and rate very being keep strong. as pump we

IV even new comps. who's this standing revenue the not more to that morning, Glenn, strong target earnings menu. regarding we for in I'll XXXX have on Matt, though planned, is year our and for Jack to the on are CFO, details still defer have the pump the We

about the getting we've to hard It's new working that so achieve. on pump all to that been progress. move me let So clearance

complete key for was XXX(k) weeks to very course, concise commitment these soon. FDA's a few in an of in clear, confident we that delivery August. be filed Of August, in and next hands are My this recent is will it the having XXX(k)

FDA in sometimes and the additional some questions will Again, transpire ask during -- period. we'll time question review

the We will indication response that have to first October. after that for FDA, clearance expect we list late questions a from XXX(k) of better of required of the see final time fully in and expect which we receiving

the means shipment a the At Clearance XXXX device this would this 'XX in new the cycles in as be QX not light measured expect are cell revenue-wise. days. and revenues in past, months, point, XXXX stated from will as in story well have mid-XXXX I that as we only

or the incentives and existing now of new which started get pumps sales of and in stepped drive increases these strong business business have to growth sales helped we seeing Monitor up new by believe efforts steady and incentives. level. has Due beyond, are and strategies that Though we methods new older to the on via in Monitor been January replacement a we these strong, order and pump, -- the will X, X strongly years Monitor

Matt, growing. of will on FMD due -- being hear and revenue also the the out places for FMD Monitor. delay, units of though market, the offering This many is dissimilar of these delivery speed the a the the been you steady construction Still, of there drawn to MR new limit Construction process revenue of adoption to a our to line, is new is in tied There's and inertia gaining FMD pump relatively placement rather suites. device. to from and for subject an the as

headquarters. Construction be and in not new our walls and the the up overly weather should by The to nearly a is about of and been the time roof Finally, has well schedule. next report. dried cooled underway, bit my

With moving before of in begin MR right -- the summer, of excuse newly cleared just of our time to the me, next expectation, moving exception XXXX pump. production with

Now Jack online, with of before I'd finish QX. we a like Matt to steps report for in what in see comes

to For and million per earnings to $X.XX. the million, non-GAAP of share, we third $XX $X.XX diluted expect GAAP $XX.X quarter earnings XXXX revenue $X.XX of diluted financial guidance, share to per with $X.XX

to full diluted to Accordingly, $X.XX expect and to revenues $XX 'XX, share share GAAP we and earnings annually $X.XX. of million, we per the reiterate per our million non-GAAP earnings year diluted guidance to $XX $X.XX $X.XX for of report with of

I'd going to call is morning. as the who's who Jack, to said, the leave to turn over stand Garner, this I Matt? on like Now for up in Matt

Matt Garner

Roger, and you, everyone. morning, Thank 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 measures reconciliation earnings

we compared second due of pump of bookings this the As an increase for in to bookings for strong quarter earlier and quarter. revenue our in quarter. first This into strength XX% to $XX.X increase this XXXX. the the of reported quarter million, second continued was the the pump was in second resulting morning, -- backlog XXXX We

second million was our to while $XXX,XXX. QX to XX% pump driven $X.X for to Device and remain $XX.X revenue. XXXX Overall, revenue in for the XX% XX% QX approximately for $XX.X This million. XX% Revenue XX% decreased increase contracts accounted stable to revenue services of XXXX, increased revenue at million. and sales The XXXX. maintenance million, international total to sales by from of domestic of disposables -- XX% increased for X% quarter -- and compared a $X.X Domestic decreased

compared in gross quarter. for costs primarily raw second gross in the to decrease a As increase Roger and the to XXXX sales direct mentioned, is XX.X% margin geographic efficiencies. was of for mix domestic material XX.X% revenue, XXXX favorable quarter This margin of due the labor

$X.X primarily due XX% of to to expenses for compared or regulatory The sales basis, We in second XX% and XX.X% income revenue and is strength expenses. were gross increase -- dollar of million of growing $X.X a revenue higher noted $X.X quarter payroll sales for on activity resulted XXXX with this the marketing or XXXX. expenses Operating expenses from for the operations higher million higher and quarter. to in along commissions margin and sales second benefit million

effective income $X.X line in for GAAP of a of of We the and -- an to compared XXXX. increase expense non-GAAP second was is of recognized XXXX, with was XX.X% On approximately quarter as tax second for XX.X% basis, a during a for of an the rate diluted to rate the income in quarter, XXXX resulting $X.XX On in tax which per effective of for compared the tax basis, the net $X.XX $X.XX share, million XX% XXXX quarter the $X.XX quarter per second XXXX. share quarter. of diluted adjusted

period operations $X.X the -- cash million, Cash -- months in million same which period the was $X.X a for XXXX, The same million in measure, ended is XXXX. June non-GAAP free $X.X for XXXX. flow, million the from We $X.X was from XXXX, for XX, X up up the ended months our XX, for June X

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

Operator

question And our come Instructions] Takkinen first Frank [Operator Street Lake of from Capital will . Markets.

Frank Takkinen

line of very to revenue conversion. growth given wanted the with Congrats old year Obviously, on warranty on force the as X well item. the start maybe expectations is all I pumps growing X-plus recently, progress.

and bit this Should of XX% year we the lower expectations bit end continues by back? growth maybe for down the rate of back that that growth expect the about normalized Or is little through pumps Or just comes then monitors the a than year? and the little talk year? half a monitors

Roger Susi

here. to you. Yes. to Frank, good talk Roger

our see with the original XXXX, uptick the existing, IV X-plus we in do So this kicked yes, know, the going contracts revenue notice the which, to -- year this pump, customers old that off we weren't from service the we pumps. on as you old to we'll

coming is that So steadily. fairly in

going And going 'XX but mentioned, 'XX. X and to large, So think more, through to it I do it's Well, of I what the even as don't it's these into to was, your carrying it is us I of it final question grow no, happened. rest surprisingly grow? see frankly, quarters us was,

quite up So to nice feel XX% line. if will, And this we've stay plateau. a boost XXXX we It's to some XX%, product you that's there. stepped going to

program. XX% what grow not XX%. X launched we But when ago going be to to going first very were we healthy or this from to it's No. at unexpected Now it's very much quarters looking and

revenues, remain will to healthy into XXXX. a it our I as booster So said,

So XX% more, healthily. XX% been It's been. expect a Monitor. some and incentifying But is that hope like force we're the to it the same with out what things this boost bit mentioned do this be why we that the given it's of marketing that, with Monitor sales XX%, thing. to I don't I we little to to but pump, it from growth got but boost nice, not doing

amount. the the -- small pump, forward pump we much only And in if late putting pulling is and expect a though so, the 'XX can 'XX, we'll again some plaque this an from And upon grow skis. Monitor seeing which ideas we're mentioned, incentive another of oil we XXXX, til you oil I probably in out We're and want line. new business as 'XX behind and impact a our off to year be little continued in marketing the as that over based why get even revenue look the won't

Frank Takkinen

room up I does status In months? Okay. to don't calls. know what's brought been next there's a couple increases, That's look over where through appreciate think expand in if past, are? more you Do you've question. those they ASP? I color. it's Or the them latest XX last ASPs, been just able good to the of how ASP broader keep push the with that. Maybe the that still

Roger Susi

Yes.

these ones, is happened also that. also little still point international, we're we're biggest bottom up made a out shows doing internationally. the more have it revenue we smaller which in every There's calls, comp that a increases, both U.S. basically heavily in in -- time but with line. -- the price this we're market. contracts bit. But see we the few mix margins doing the the our for Monitor, from already and So some when Internationally, I gross have mostly we'll mean,

some internationally. in countries increases be think yet to we a there's of number got So

So yes, contract, -- boosted have side, and X. years your by have -- or in be we won't X.X again guess, been the able I move another the the point. those big big we already agreements for we, to domestic won't But to

Frank Takkinen

backlog? fair That's expectations. to And would execute maybe case? Okay. Does last backlog. carried a Do me of between then the that parse for be continue a disposables the can amount continue help you you've as that of one Typically, be out you equipment, kind if well helpful. that's just to on And maybe you backlog carry to as helpful.

Roger Susi

one. I'll you Maybe out Yes. help Matt that with let

Matt Garner

be Yes. We sales our -- force. comprised related got it our strong. of. really backlog, get we have it's continue I to into continues territories to what mean, too X growth, to we do now. We've a deep But don't

is it in the as So remaining has past. backlog consistent the

Roger Susi

That's pretty Yes. consistent. takeaway. the It's

yes, is were you can the we where has been looking next year. this if of So on get reason one and steady. rest bullish very this even through into year why Backlog we're

Frank Takkinen

Perfect.

Operator

One question. for moment next our

be from coming of Jason Our will next ROTH. Wittes question

Jason Wittes

nice a quarter. on Congrats

of And of timing terms approval? walk when us kind of the new terms -- basically take in on orders? QX of I going So manufacturing you to is it's just milestones pump. take think the a have mentioned the how next only to you expect long fill long the Could how going year. through for are and in modest it will you Because before impact to what

what curious I'm So behind are in terms assumptions that? just of the

Roger Susi

to let me this -- So we'll I could anyone's until expect see in I it give how to a information FDA. get so depth requested we this by Yes. there, really prediction the some the on we additional out make as Yes, first mentioned, guess. round come XXX(k) it's right? you month, of

I able well when period applicants XX they us Even back to in That get predict been that to it's do can the XX steady -- during back in with COVID the once get questions what first days. a will were see been that. we'll happen. to days. pretty get able XX, So pretty that ramp. XXX(k) pretty very XX, AI They're They've -- they've with they questions crucial well AI to

us That's put we'll of latter close would that about November. call. part So it will let's our we'll say, some early when our have have be earnings time, -- to October, next getting when

I'll questions, track, of the point, making on depending call, having it's this August, these able we be got very or of earnings just faster it's depth like no it's longer next -- on -- to scope looking a by in from a -- really and we're a to So AI that and at you predict. filing difficult tell slog benefit it's

So to XX us from give in got started or get you that. month. get XX, real if to days it back any later in me about this on we something hear to color should really

right, in I'm have a handful And case, think QX of we're handfuls or of this pretty than -- than that, a we we XXX, I to no or in XXX part on get few after track So latter less early get then certainly QX. the hopeful a of that the that. questions, not but if that's part cleared more good

towards middle if in If fine. into the the That's our of pump next up that fairly I capacity in time of we mentioned. is we'll be clearance the new as will that's really it have new fit And where will be the increased with plan we So production that building, start that moving to pump. happens. certainly, year, well the

have clearance to about we amplified sales take start the and get that equipment and part XXXX pump and middle the of online all we new right so talk XXXX, that's the in getting early capacity in we'll demo hit up start new the given And when that our really ground and and orders. teams building of

because the probably coming question few we orders get initial said amounts, here. would but there's of And orders, won't is pumps takes by initial it actually fill, cycle revenue a just this be QX So some from huge in. show really I anticipate will to XXXX, time it sales we orders why -- be the a the making those not

We of board. The but given showing to start in to No. QX, real to QX, we story, ship new something I the as when be we product. the orders XXXX. significant is that expect revenue that have will really the start be a have tons probably into getting product So said, in won't on That's will from

Jason Wittes

the in -- about That's on color you the think helpful. above that. I And sounds Okay. if it appreciate characterized backlog, I pump of know like your very terms -- That's all our but they're then nicely sales, I expectations.

acceleration and little some lot seemed I I'm of the to at least be? also think than monitors of that Or do a might same to our At the the the this that a dynamics backlog and expectations. it -- businesses backlog it driven? what lighter like with was were you Was outlook the what quarter guessing degree. time, between those were X what saw

Roger Susi

get from getting QX. too new I to And out with said, in that of just orders like we that product from we hand. want in program in and Well, started tooth XXXX that backlog pump too didn't the long these far

XXXXs heavily shipped that we in yes, we pumps, keep So QX. old control, to heavily -- bring under shipped --

hold of didn't a much get to it. but these ahead bit little pumps we -- maybe back Monitor, out didn't We on the

general, heavy healthy still good that still we balance has driving in backlog will very a on get that QX. XXXXs, mix, a and you're maybe your out towards to but question start it is little So as at that's

we'll a think QX on little the I old have pump. be heavy still

Jason Wittes

Okay. back Very in queue. I'll jump helpful.

Roger Susi

to Good Thanks. you, to All Jason. right. talk

Operator

for Roger remarks? now like back to would turn call to I the And

Roger Susi

right QX thank on Again, XXXX we Okay. it's again, strong to for successes future excellent you can the that, with us. look our progresses. pleasure, pride as all are it's great I track as reporting And also the that report been guide that joining that progresses, year performance and expect 'XX can once forward our we a and we great With results.

Operator

concludes call. This you. the Thank

may You disconnect. now

IRadimed (IRMD) 1 Aug 242024 Q2 Earnings call transcript