IRMD - Earnings call transcript Q4 2024

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Operator

Welcome to the IRADIMED Corporation Fourth Quarter of 2024 Financial Results Conference Call. [Operator Instructions] This call is being recorded today, February 13, 2025 and contains time-sensitive accurate information only today. Earlier, IRADIMED released its financial results for the fourth 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.

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

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

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

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

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

Roger Susi

revenue good in $XX.X GAAP earnings at quarter Gross And profit per million. share you came earnings XXth diluted Driving I record strong us as today's fairly morning, thank you. quarter. this yet QX from our record Thank consecutive at joining quarter, unique XXXX. is again, with million meaning $XX.X over very well, in a increasing XX% another and call. am to all on report Once for position and

as on record the is sales and This that to interest for in sales sales pump domestically time extraordinarily year, demand. monitor also customer say brought a and strong due team's their the quarter extraordinary pump the For has to trend rate at focus trend continued the continued also continuing well. their strong however, team proud bookings

details to FDA and would more pumps revenue Jack comps the bit. a I discuss provide through clearance. on earnings like Well, in CFO, new shall Glenn, our progress

after to certain the letter. FDA submission information engaged received AI agency meetings information early this As September. We've in letter the was an with clarify we from in items additional SIR previously made shortly the additional discussed, via twice

-- plan to pushing very writing we to week May this have With hard to response our that, the possible teams there, gathering FDA few final shortly and responses have of responses. questions formal in With the in follow-up we back team pushing expect data From the April. would come with our first a thereafter. been our

slowly the FDA administration, Given usual. the if agencies in than guess anyone's turmoil with it's operating be current various more the may

strong do as we not yet. any sign of see However,

will we so expect clearance. And

To story. MR As quarter light revenue reiterate in this the of months, cycle as new previously be stated, in mid-summer. from device, device not days. what Clearance a will pump in XXXX we that expect XXXX means shipment XXXX is I sell-in new mid-XX measured mentioned, fourth only the IV the

model XXXX by discontinued are of of XXXX sales X witnessed after progress and sold older strong as extended and new replacing the as expected and the However, pump pumps on the sales of offering XXXX pump our years the quarters beyond. through sales door maintenance to the into older, IV we

the confident going be move of installation the in the soon, of trip. We shortly occupancy building and plumbing the June the of totally glass walls with thereafter. remain were ready plan to halfway. Finally, to very in material for the in commencements electrical with and are only it's new been certificate final has managed interior past now disturbances, final steady dried supply well. Interior to under mitigate well our construction, with and And will regard progress our which minor contractor facility, up general and has

a to I'd in XXXX. to expect QX what we provide see of bit like now

$XX.X to guidance We look financial XXXX $XX.X $X.XX. million revenue per of million year. GAAP diluted to with to $X.XX $X.XX million to for $XX $XX forward of quarter first reporting earnings Non-GAAP per this share $X.XX. expect the full of diluted a to For share earnings we of revenue million

And to of expect to diluted diluted with non-GAAP the share we quarter's the CFO, $X.XX financial per Glenn, call I'll $X.XX. of $X.XX to earnings per $X.XX earnings with turn that, GAAP would review our And share Jack over to results.

John Glenn

morning, good and Roger, you, Thank everyone.

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

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

million, fourth in quarter As the $XX.X earlier of XXXX. of morning, reported XX% the fourth was of increase quarter XXXX this an we revenue to compared

fiscal XXXX, growth for quarter our and pumps. revenue For to the our drive sustained for The IV to as the replacement to $XX.X our strong due million. was end-of-life program demand exceptional increase year pump year for continues increased the XX%

Overall, Domestic XX% revenue for a domestic to XXXX. revenue QX XXXX increase for sales million and and accounted to to fourth fiscal million. $XX.X the XX% revenue sales Device total of approximately $XX increased and compared XX% in in increased for XX% to XX% XX% XXXX, pump revenue, in to million of $X.X QX quarter again, XX% respectively. $XX.X decreased XX% million, driven by international

the fiscal X% XXXX the below fiscal XXXX. the for slightly XX.X% quarter quarter to Revenue compared The for margin XXXX for from to The increased fourth XXXX fiscal for quarter. for fourth XXXX, XX.X% increased of of XXXX. disposables XX.X% gross was gross and XX.X% margin services and both the

in primarily compared revenue of revenue expenses the overhead year-over-year of million million XXXX. $X decline increase spending driven XX% or $X.X quarter margin of or for fourth the Operating XX% to by was gross for the were slight The in quarter. the

or XX% revenue operating of of XX% $XX $XX to for XXXX, million expenses or For were million compared XXXX. revenue

the and commission due The the primarily result in to we sales expenses commissions and higher dollar expenses increased the marketing operating as reflect accrue pay sales exceptional backlog quarter and expenses. due year and expenses sales quarter higher for in the bookings increase to quarter a so fourth enter XXXX. booked in orders and the record on marketing for is the sales We

for fiscal the income quarter the in fiscal we for in XXXX, tax tax operating XX.X% was rate of for maintained XX.X% million an and fourth recognized effective XXXX. XX% approximately $X.X and $X with as resulting in a Operating expense year $XX This million the rate was the solid a XXXX for quarter of year. effective the for margin XX.X% and of rate the for million quarter. We line

diluted basis, quarter. share net $X.XX income fiscal GAAP share GAAP $X.XX for to for income of the fiscal XXXX. quarter net $X.XX diluted per On XXXX. was to non-GAAP quarter per fourth share to $X.XX income per compared XXXX compared of for diluted a was $X.XX a net fourth diluted a diluted $X.XX share per compared On share basis, for share diluted per the for the per XXXX was XXXX adjusted for Xth On basis, quarter the

XXXX capital as the from December from XX, income diluted efficiencies months same our XX% in management, the the working drove diluted an particularly in On $X.X for for was $X.XX million up we basis, operations fiscal X per $X.XX in to inventory. compared for ended a share per period was year-over-year. non-GAAP net of share Cash in XXXX XXXX, $X adjusted XXXX, million increase

for measure, decline XXXX, for from flow, were ongoing million a XXXX. in quarter. same million was December of the our $X.X months ended free X building, the for related to new capital cash million, down $X.X $X.X our non-GAAP our period expenditures is the XX, For This which construction

complete to the expect we million to June complete noted, approximately Roger As spend facility new and project. the we'll another $X.X by

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

Operator

Partners. Wittes Our from comes question line [Operator Capital ROTH of Instructions] first Jason the of

Jason Wittes

Solid here. quarter

do should at an is of you line the on going year, next the focus we in of we to that on there? force and the see terms this XXXX, uptick forming? top see monitor assume least sort So more business sales How

Roger Susi

the yes, far last year since Jason, we X as XXXX, the I is to quarters midyear going how Roger. highlighting sales maybe sales of I've it. indeed probably monitor spoken this here would the question. as guess, we incentivize team. last be that Good are to

the expect would monitor in business impacted. will significantly we be so And XXXX

already. bookings the in it had for monitor this quarter. started mentioned, show strong We I As some very fourth to

to as is it, to XXXX, put yes, monitor. going the more on you come have So

Jason Wittes

shift So Or sort this related to focus of already part a sales been just in of... the saw business? the of force sort or as uptick, in of sort has monitor is it we there reason of the uptick

Roger Susi

didn't say I'd beared the -- slightly midyear. QX. starting And did tweaks to some business. Yes. midyear, We impact and Yes, monitor versus pump goals surrounding some it's in to show it the that's last the the past already pump fruit yes. minor

So with pretty that. happy

Jason Wittes

Yes.

submitted you about margins what then looking -- come about if and for the line then also, pump does gross because XXXX? your I have R&D think down I assumptions, So think at bottom now for do

John Glenn

Yes, Jason, this is Jack.

from yes, uptick consistent. R&D some add but the pretty count going at that a say where spend, I area into it's little to we from might would maybe now be XXXX right head consistent, as So we're in fairly

our gross far As as I margin, think yes?

Jason Wittes

R&D? In

John Glenn

that at the for line business as with as range right it's gross geographical, discount excitable range a be and into is now Yes. as I going say, through XX% fairly distribution. overall, far going XX% in would that in mix little sell you as say feel international, But where XXXX. roughly far I XXXX. we that at then pretty margin, the we as Always in much And it the pretty to XX%, we're upon should about of just know, dependent

Jason Wittes

on say percentage to a a dollar basis or you basis, just clarify, Sorry, when percentage?

John Glenn

Yes. basis. Percentage

Jason Wittes

to Got in and sounds guidance don't that in that can going you on to terms some it. there year? means be getting any G&A I how numbers in might guess the provided like you then, out plugging this of know on leverage elaborate play I if And S&M. going to you're look there's -- map if Okay. the at that for I see that

John Glenn

Yes, quarter. variable spoke commissions bookings. the will, marketing, leverage there to was expense, I The that's our commissions strong we on that And piece bookings is G&A. QX, think some the had and reflected accrue to, the I sales is do for in and in is a the Sales plan, again our big we model hopefully, in very we get that as right?

the in can That sales increase the and was see you QX. and in marketing --

year, would if certainly of a right? certainly how say I go have, is to through little the good it forward, as to kind though, which range, that, it's plan, the that, problem leverage to exceeds we we upon more expect is that yes, be Going in a dependent but performance always maybe it

Roger Susi

like having over the of get overextension in also extending, a support clinical be adding prepared will though, year for guess, we'll launch a new This the look getting some lack it the better be XXXX I word, of of the we for specialists. next to new year, for XXXX the people, in that pump would ready pump extending in

in -- to territories, put plug-in. we'll additional We be probably some some put starting territory in

yes, XXXX there aren't made sales So be actual for cost paid increases will well. some directly there'll that be some commissions in as

Jason Wittes

back it. Got queue. jump I will in

Operator

comes from Street. next Takkinen Our from Lake question Frank

Nelson Cox

This think pump following I the today. wrong, is approval we an that, that's up of Nelson I -- new I'm talked XX on just versus Kind correct post think Cox being for number territories talked kind had on the about Frank. of XX last you and me optimal if

new of thinking post there kind change Is sales the approval any pump? were optimal how on you there about to the organization thinking of an

Roger Susi

putting that's see few calendar we but that -- the extra put at our means plan. one where starting right actually. current now, We hand, the we're we that No, above still course, won't XXXX little -- in we'll in in early. a year on be it of And XX% a will XX is

the there we'll rightsizing anticipate we'll So the within have that's do team business to pump. some why preparation have in expense sales we for

Nelson Cox

about we throughout you're And like Can year it be about providing changing us Any strength as good of the visibility overall the the through the backlog to sounds then you the commentary through on move backlog possibly backlog thinking Perfect. thinking and the you're composition there. how see how helpful. year? maybe good is walk just would

any It a take sounds would bigger but be helpful. focus color there additional team, like there monitors with portion the on maybe sales the

John Glenn

was beginning the Nelson, strong Jack. Yes, very is it year. as it this mentioned, we backlog is, of Yes, a

domestically that number on on pump, monitoring a is certainly the strong the Roger that the I at that backlog the into especially year. pump would here and gives time, first the good very though, the half So side. strong also now same as bookings on visibility, very is say we of right mentioned, units had us based of as very a bookings

biased certainly, it's it right the along. towards our half we So little as as the pick it's first talked we've But monitors But for more would now, the good go plan, especially us year. maybe be have about, pumps. think up very to of a visibility, I again, gives the --

Nelson Cox

one maybe how can through just the current pump installed year there, just XXXX And you renew then walk a many quick last can Of Perfect. think you with one. base you in a starting pumps us XXXX? out the

Roger Susi

Do you mean replacement business? this

Nelson Cox

Yes.

Roger Susi

those kind years Well, as past, that of pumps it And U.S. current -- we'd most is of there to that are hold systems be of mid-X,XXXs replacing will XXX we've to have than to where market. twin about we X,XXX be systems channel the in about our out ultimately systems talked of XXXX X,XXX to in are which we'll replacements want X right, X,XXX the the over of it's we the pumps going because demand model. older X,XXX we be feel feel to

that is that we're number that about twin of sell. So X,XXX doubling today, represents now selling at than -- pumps channels, more the looking what given we're we currently

Nelson Cox

XXXX? In

Roger Susi

yes. XXXX,

Operator

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

Roger Susi

being will that last thought the to expensive to source our Yes. hit thanks. have been mix over be over are that these One paying. every manufacturer most tariffs from regarding tariffs or and Well, that implemented. into increasing only concerns may say is in are some U.S. had the I with to has In tariffs this going exposure what we rather countries various that, like components increased I'd probably And and/or that. we've X case, here already folks X

But a of feel cost, course, very make X% which components, those Of parts larger up there's of than still, the number our impact negligible. these larger of from cost. the we bill less is material BOM inexpensive

therefore, tariffs and affect do to fraction a expect gross that, we of as with tariffs So the margin materially. wouldn't math,

with state it IRADIMED thought performance And pleasure you we that I'd you. And briefly. all. has that, I take just as to opportunity also we this that strong that, that XXXX we review as great thank progress probably And speak to been for progressed. a With always, expect

Operator

concludes you. the This Thank call.

may now You disconnect.

IRadimed (IRMD) 13 Feb 252024 Q4 Earnings call transcript