IRMD - Earnings call transcript Q3 2024

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Operator

Welcome to the IRadimed Corporation Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, October 31, 2024, and contains time-sensitive accurate information only today. Earlier, IRadimed released its financial results for the second quarter (sic) [ third quarter ] of 2024. A copy of this press release announcing the company's earnings is available under the heading News on their 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. next broadcast iradimed.com, the be and the for being company's on available is website at website a the call live Internet over the on This days. XX replay will

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

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

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

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

Roger Susi

yet Once fact all at Driving today's Good was in very $XX.X happy Thank to us was joining you, revenue previous $XX.X that continues this thank million. here by report quarter IRadimed. on at record be for operator. so you, involved record million, the again, coming quarter. I'm XXth everyone, consecutive growth another morning, attainable quarter, call. quarter and Recall to our in

profit as this well X. previous and gross revenue in is been impressive at addition, likewise Again, continued remains earnings orders had as with quarter strong remained In that in $X.XX at share. very strong XX.X%, pump a diluted it following the strength,

to that and it on make is FDA. us all filing. we It on discuss believe, I pump. about filed And progress did later the when which I'll I'd during was, with finally FDA But details new as the September that last call, got we this the it's on move clearance. be more the revenue and Basically, promised for XX had like getting earnings. CFO, near at all, dear our subject Jack, and point, a to deferring to briefly

We where some where questions document, this from tied interactive is cetera. them question that bad which is arising call sign almost a they of had given that immediately, et a document, housekeeping, how most have with are this is not to and

color positive negative So But we're for being us just I the be on producing AI are or day work that they ago information, letter, additional a much now initial either we informed a will give can't a on. way. or actual X the really AI, that -- to letter

on by end we'll And color next that is so more I'm quarter's progressing. call, sure how a lot have

important still would we earlier amount, XXXX. we small And get all to as the starting happening of we be have XXXX. in quarter a again, revenue, fourth to quarter mentioned planning XXX(k). though it's that again, that only And some are calls, revenue on given sometime in course, the Of that planning initial in on second that, of

days have the all, of only X also lost news overall mentioned But on to headquarters, come We our storms new some I through Florida we all We have suffered couple schedule. a previous area. the in construction we call. believe had the which about in

put they as from on, will it before it's Thanksgiving. call the it, up, in in, put are And paints the walls be So and on all being will windows be, trim. interior ceilings dried walls, going there,

of to May well. with space production expect necessity of course, will, schedule to still the we're a the also new of next that year. on coincide And move-in pump So in about launch very further

brief we report of a QX up. like what finish see to in coming with I'd

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

are $X.XX we of to from to $X.XX. expect $XX.X to revenue per $X.XX the million, report the raising our of diluted share guidance $X.XX. earnings be to of And GAAP we'd year diluted to from to the for $X.XX previous previous to on $X.XX $X.XX thusly, $X.XX guidance non-GAAP So and per million raising earnings we'll $XX.X share,

that, the call Jack? I'd over turn with to to And Glenn. like Jack

John Glenn

you, Thank morning, good and Roger, everyone.

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

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

Device $XX.X to margin gross third our the end-of-life quarter contributed quarter As third the quarter higher X% third reported an to of strength slightly the of revenue morning, XX% Revenue quarter pump international pumps. drive as million, international increased increase $X.X Domestic versus to quarter. XX% accounted a to to remained $XX.X XX% revenue the by in our was quarter, compared the our total increased for $XX XX.X% this at domestic maintenance million XX% XXXX. of domestic in third $X.X disposables product QX strength services the our we was due XX% XX% continued XXXX. for stable million, of QX XXXX, in for margin. while below contracts IV increased and pump increase of earlier increase XX.X% to growth exceptional mix for the for the of XXXX XX% our driven revenue in XXXX compared and million The Overall, increased to to third replacement to approximately sales XXXX continues of million. revenue. from revenue program This revenue for $XXX,XXX. was The gross the for continued sales

of benefits million in sales million of percentage On is revenue activity, XXXX sales quarter of slightly for sales expenses expenses Operating expenses resulted increase expenses. $X.X to and expense a marketing due and primarily quarter. commissions from to and in regulatory XXXX. income The along million or with of noted compared QX were and last third the $X.X quality year dollar in $X.X of million and commission operating and XX% for payroll $X.X revenue down the higher increase this basis, to sales revenue for or higher XX%

tax We $X.X of of rate GAAP recognized a during On in million for of quarter, a for the for diluted higher an XX.X% quarter. rate the for $X.XX for XXXX the XXXX. expense the the basis, XXXX of was income share, the in basis, XX.X% third tax same share per tax quarter diluted than third net effective XXXX, the quarter a approximately effective third the XXXX, income slightly of quarter the $X.XX quarter. as non-GAAP On same as per adjusted was third resulting

we September drive working efficiencies very Cash million and up particularly inventory. capital the XXXX in able in from from a XXXX, accounts for $X.X period in were strong management, to $X.X our operations for was ended months as the XX, X million receivable same

was measure, of primarily million, X for up building. period for of September $X the months construction $XXX,XXX in cash capital In the XXXX. from ended the For the million XXXX, flow, a our same free expenditure our quarter, was XX, $X.X non-GAAP the new

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

Operator

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

Frank Takkinen

of that to year. pump maybe standout as by we well a normalizing year business this softer. think how quarter being approved? How think should the about start want the prior pumps to we driver Obviously, the growth one related with new line XXXX Monitor this through both as IV is fourth I been little should bit item. into has about growth to

Roger Susi

I'll calls. this bit hear that Roger take the one. We've previous to in to as closer the we from Maybe mentioned a transition here. old you. And between pump Good get in pump, deemphasizing, been and anticipating the fact, new we're start the pump. get the May, of that and there's given that going clearance older to the in we -- we've sale

that. tap brakes So the on on

that that slow expect should will that train. we So down

the to monitor. plans been we'll really for emphasize beginning the modifying of last the be basically XXXX Meanwhile, that in plans, putting months, with place couple we've our comp

the old to we the a pedal the of expect the pump to product we there do that gap. I really line mean natural And the put intend to gap, -- fill monitor So I fill in it's think dip in as we start -- to new to metal that is, be to expect the transition that product. should bottom on to the

you're may revenue the let's but X in, the kick and back mix that occur to new quarters. seeing turn be anticipate pump will pump. will again new to when us then to And we maintaining change. will used around span, think So that starts once say, rather it what but And we the the will do, briefly, story

increased again, quickly. So new turn expect mid do to XXXX recap, monitor. revenue by pump that dip given a from by the -- strongly, streets the rather the the just revenue yes, months, to to that the But back in XXXX, from around supplanted those be we will the pump hitting is and in again, mid-X

Frank Takkinen

backlog you the least bit quarter, it Is for good you a think I -- pumps, you Got the That's composition it. Or next than And backlog about not given maybe today? mostly called press the Can monitors? that in the talk today? release, helpful. bit has IV look longer what's the a of at little that. out like little if next then composition visibility the of

John Glenn

over or as this going -- over the Frank, years I quarter. said X.X into is more. sure. strong think Yes, backlog, probably been be course, fourth last that of last Jack. it to Yes, the we continues And -- the our has the very

backlog to also Of monitor be to I say good of pump. the would of good due that a portion in as well. the the is strength that course, But portion a continues that

So give visibility QX, press us that as does pretty mentioned into the we good release. in

Frank Takkinen

to just And I bit last about Perfect. hoping maybe ask one, my was OpEx. little for then a

talk you've non-GAAP rather growth looks in of growth just quarter, It line little bit line was with a there about sometimes typically, been line like or about line net that kind X% income. anything we that little and how nature top think bottom significantly. the of should Can growth OpEx returning there in the profile more? seeing onetime leverage? with XX% the an nice with outpace different bottom a top you was anomaly? on And Was I kind that the and the think of bit this

John Glenn

that I'll one. Yes, take

biggest or side sales the we for aggressive and between for bit quotas a that accrued had quarters last the In I were to of So piece year, the for plan the probably down difference of little the comes quarter. of salespeople. the probably in QX paid guess the that frankly, on commissions really sales

that sales in in forward reflects probably the a XX-so more expense on current lower the our quarter. so of I quarter say, in, spend I percent as a revenues. sales that resulted commission that overall about we're in And of percentage side, say would would going very, of

And in so I that sure was when of said, that the QX to just said, happened there. in a it the you're maybe, I X. a there's it's we challenge, so together bit make always QX, the put difference And guess, aggressive a between plans that, were as balance key like And I we sales on period little year. time these last more -- like

think a biggest the what overall between the see of going spend this X. sales line of forward, that's percentage kind difference I of you with was. the So in quarter OpEx kind as But

Operator

of Partners. question comes Jason next with from Our Capital ROTH Wittes the line

Jason Wittes

little like FDA but the obviously, track -- on it sounds is It there. you're a bit sounds unpredictable,

potentially you earlier. earlier impact the get that an pump If potentially quarter of move second approval, would than the new

had see quarter, we a third quarter if instance, For impact? could we first

Roger Susi

the I we're of pull takes mean, a the the if -- plans wouldn't earlier, in in able be all launch X even the these rest it processes all the of really. that Not I materials, month to the to it mean or meaningfully and really thing. came planning, things,

So...

Jason Wittes

makes of do sense. where your monitor of outline of business you plans and beyond in it monitor, could That the sort expand future if kind what might products for to the today? then maybe And is you terms

Roger Susi

of you lot things. point a in think I it's little a compensate it's there's the team. mean, I big is how nutshell, sales But -- the Well, just

business of monitor think become that some I a meant we a And on And good everybody saw worked that, relaxed ago, and took chased fix to we of planned, the had some as pump to better aware And so has was we measures business. that hunting. frankly, year their sales of team when course, extent, than little what well soft it our over year. this pursuit getting past

if So pump their little bit, the grow change grew like on weren't in monitor but what big business we so step not the didn't focused otherwise have had prospects. -- attentions this a would

mentioned, I it's compensation. as So

adjusted, will be it emphasize monitor will that strongly. the So and

Well, the the that of I deemphasize will quite other we'll strongly. is be pump. As it flip emphasizing mentioned, the monitor

it's and we've we've for since -- we running those ground and of working preparing putting a going to not any already team. But and the XXXX. that This for it where still our have we're hit going been is in next of So been now we'll think planning couple we're of and months, to start a plan. talking we we months it that year's news be couple sales before

Jason Wittes

for And helpful. next of in year the might versus also question, how big be what expectations of you've kind got of a base to will of mean there's go a begs that's new you So -- the that's mix It's I cycle. upgrade explains pump. pump. large going anticipate flow how kind we would it the major monitor It might through installed terms --

real I imagine pump monitor pump you of is with your but a and that, sales opportunity pumps potentially sales. can going comes So compensate focused, the leaves for very business this out, be there force on flat. to like sort once seems Obviously,

it pump sales sell other? Or one is X your does new up for that going that the to and the you question, Yes. for force right is changes set to to you So beg now think can Or you kind make the businesses? still be compensate there of monitors? or -- is do

Roger Susi

Well, territories. that's the organizing hard the sales the part team sales and of all

have we XX territories. So

So grow the from is sales opportunity territories salespeople pump, expect there new tremendous the create growth them. the more to increased more and team and big amount and with fill revenue to we of this then

is the means is you that? to If start enough be, territory. now of lag, to around don't something yes, balancing And when that go for you would So we're to course, that each do again, going do it's at then get it you premature, forsaken. -- as some have so act

mean, expect, those end and up so the to to in how yes, to need start takes -- a plug more hire going couple actually we're to number pump. increased, salespeople, we're to probably of territories up closer territories. it this it's being of And I I through speed. really But yes, salespeople but quarters planning go get would until to we're on And launching when going to before we're wait we --

year, got few a it's that so in that -- on we me, for customers So have, little manage much to those we new we a we're problem. next mentioned too when don't anticipate to going chasing next lid too end excuse target and the we up it we'll XXXX, a and next bit to keep -- we'll business. initial quarter, we're of good with try -- quarter the having this pump, It's recognize it. but salespeople one it. And to planning problems We it be fourth

Operator

call I remarks. would over now Roger back closing like to for to turn the Susi

Roger Susi

we our explosive new growth us. look clearing that downs expect All challenges a we'll forward we of and very operator. the have see the you, once to Well, with XXXX it's the made, to you even give look thank manage report plan And guidance, just again, Well, year, and ups to the by the our And we and with strongly, we performance. it. we've we discussed, as dealing much to right. XXXX plans year end forward though and pleasure pump been very next QX to our

we'll So -- next see quarter. with again talk that, we'll

Operator

you. call. Thank the concludes This

You disconnect. may now

IRadimed (IRMD) 31 Oct 242024 Q3 Earnings call transcript