IRTC - Earnings call transcript Q1 2018 | iRhythm Technologies, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the iRhythm Technologies Inc. Q1 2018 Earnings Conference Call. [Operator Instructions] As a reminder, the conference is being recorded. I would now like to turn the conference over to your host Ms. Lynn Lewis, Investor Relations.

Lynn Lewis

you participating thank today's Sonya, you, all in for call. Thank

financial and are Officer. Officer, released the quarter press Kevin the copy me available website. XXXX. Chief March Earlier for XX, ended King, iRhythm release Financial Joining of Chief President Executive A the Garrett, and today on is results Company’s Matthew

Litigation which forward-looking of statements All management are be federal statements. Securities not during this deemed call statements Private statements Reform Before I’d in are examination we make forward-looking of the be forward-looking the Act to statements, like of begin, Any pursuant that should meaning that made to to statements which include contained including, on XXXX. in Safe will future of in operating revenue, our securities expenses and our trends various estimates based without should material place of statements these assumptions. the could and fact and or remind financial laws, historical you our this that results Provisions gross reimbursement, within limitation, call organization forward-looking actual growth implied operating differ uncertainties expectations Accordingly, anticipated for XXXX, to our upon guidance and materially statements. you These cause events expectations, for from reliance current hiring, and by that undue those risks are these margins includes involve statements. or not Harbor

only events conference forward-looking by Exchange call XX-K financial information, disclaims as over recent Kevin. any XXXX. of because broadcast otherwise. uncertainties the risks to to May that, live intention accurate on with information X, projections Commission. and Factors turn And report call refer This the revise For business, or and whether as obligation, today, of the I’ll and new statements is except with the any time-sensitive and associated section SEC of a iRhythm with required or or the most description list law, Form update or of Securities Risk contains to future our our please

Kevin King

and for afternoon Good Lynn. thanks you, joining. everyone Thank

strong for by XXXX. for XX%. prior Revenue Our quarter points and quarter increased margins to year results $XX.X, represent a XX% first nearly was start over gross after X.X adjusting ASC up to XXX, the

we acceptance XT for market saw Importantly, Zio expanding AT. Zio and both

ahead we saw with in as the of call a Sales year. number a of quarter with like first success to but Starting quarter. process went the second of some financial we exit then the $XXX we Zio represents channel on occurring majority to and able plan. range our are the continued gives Our for expansion in in take to next recent with XXX sales our ASC expansion, the turn the to meet of call highly were ended XXX guidance to that reps the business million million team sales growth for growing team to plan XX of exceptionally to in million, of revenue the few our $XXX of in we to our first in such with sales to not first reps, to we our hiring confidence half last which candidates, We guidance year. half million qualified demand the expanding Matt to XXX the infrastructure half $XXX.X well, of began from management XXXX after XX%. adding XXXX I’d that recall provide raising $XXX.X the only review of indicated our a and us minutes service XX% of over significant sales our XXXX I’ll hire highlights, the reps adjusted

and timeframes quarter, in targets reach our first success the stated I’m that the we’ll our confident year. Given for

market with continue pleased key on-going aggressively is I’m in to market sales the of around strategy accounts. exist as our significant as new component existing that drive believe in penetration, symptomatic the and the A growth is is XX% expansion organization. our to market we growth accounts there a our so progress front, U.S., potential the for making and our team in we arrhythmia monitoring total scale On share

We are AT, Zio initial alongside Zio parallel continuing of track year. initiatives released to XT Zio last release biosensor next-generation our late expansion our

associated real-time the with immediate notification or total Zio that event in as It approximately reminder, syncope XX% market. diagnosing and ambulatory monitoring actions. a reporting of available AT for and fainting offers require conditions As use more detecting such arrhythmias addresses

an wearable a overnotifications significant the with that differentiated to are present offering customer for patient with high a strong compliance reduction continuous Our Zio often validate approaches. patented our fill design, to and us allows of by market alternative need number continues providing accuracy of the uninterrupted clinical obtained through enabled monitoring, degree important that unmet we’ve Zio AT in developed. experience customers by AT through Early product

already been has XT, expectation are accounts pull-through opportunity lines. Zio our Zio that help that Our service we both within will unfold adopted have AT for and this seeing drive

continue managed Translational to anticoagulation remotely diagnosed mSToPS silent of factors which yet to atrial Silent, between Institute, in risk the digital Moving very age, hypertension list significantly high to patients such patients of reduce support center. that this monitored To X the who as trial patients control nationwide today. of designed risk visit have newly a service. study them AF Science at with in using we risk of who were such Scripps detection March. studies allow pleased our notable not would and at of top in Fibrillation, use expansion diabetes, and that enrolled was is of our asymptomatic, clinical in one-year results them design Zio actively high-risk group the late versus of greater the therapies routine diagnosed Results evaluate iRhythm, breaking our high in Janssen. medical were on fibrillation with at these mSToPs presented predispose required showed stroke. patients subjects the trial or evaluate study a of which receiving is market million Atrial for first-ever, the be have X.X% in of their end, individuals to full in or observational would Early a Zio is that These remains Aetna, one local their are Atrial care. Zio than were service. by year Fibrillation diagnosis not as enabled this ACC may as but clinical AF. The been our collaboration medically through It the case was addressable to that to market, and we patients, A opportunities X.X% Zio monitoring

monitored the the in were of group stroke found actively from Zio point than including routine-care arrhythmias potentially represent to changes We clinical of the Atrial medications, first groups. targeted in these for the and of for fibrillation step mSToPS patients will our generated of evaluate X% further rate and significant other placement. a other a to look market Fibrillation. and to develop monitored efforts the Monitoring be believe including between studies X-year Ziomonitored forward evidence to with this end strong treatment cost actionable antiarrhythmic detection to addition, in clinical group have effectiveness that and therapies, pacemaker anticoagulation atrial asymptomatic Zio In results initiation led and

In that statement to appreciation been scientific the the continuous Association time AF that monitor our unique highlighted community of are on report a forward in to heartbeat also measured burden utility have our year. percentage for AT, for up AF offers. Heart published burden service single see salesforce, Fibrillation further which We the as monitors of patient characterizing our only benefits how have Zio in ambulatory the report demonstrating ago, monitoring by to a iRhythm A pleased from look opportunity. AF the market truly and a continues record publications progress importance period. our addressable product few we on Burden proud subsequent the increase AF to We American making and the Zio XXXX on the with offering towards continues continuously of our I’m team a and in extended clinical to weeks. a unique position U.S. Other events the to monitoring or we as during our on X goals expand service of Zio is gain shorter are Zio measurement durations. weeks grow can ambulatory further this only that summary, Atrial clinical is deliver significantly of to based every provide

we the that investments with international longer-term segments of paving for ahead, further new Looking growth the stage way within the U.S. market. are and set

results excellent also for women, She to Dr. her Directors. clinical of and Medical to Streisand our like her Bairey cardiology call of for Preventive in disease of the in I’d review it Board and and a remarkable Smidt to Cedars-Sinai serves With financial Center CFO, turn to Garrett, a Rehabilitative at cardiology Noel and with the the well Professor Barbra an of at Directors. to Endowed is figure experience of Cedars-Sinai Her makes Heart Heart Merz, range of addition our over a I'd Board turn as organizations extensive Merz as I currently an the Before at heart in involvement over the like XXXX. as Institute. our Center UCLA. Matt and welcome the guidance Chair Women’s preventive and our wide to Cedars-Sinai, that, Dr. international Matt, Director

Matthew Garrett

Kevin. Thanks

with continued the financial the coordinated, payer there rapid, sales sequential salesforce previously pleased in hiring it ASC of all very goals. and in our notably our to for acceleration remain and infrastructure are of If performance placing incorporating encouraged inclusive margins gross contracts, into notably hiring. XX.X%; of very be XX% XXX a but on fundamentals year-over-year contracting; rep accelerated first as of in We for up would XT new include; and teams, our quarter, most own execution sales operational plan impact a internal last with mentioned, of expansion. theme and and ahead Highlights growth most was success sales growth us business our XX%; mentioned in our AT significant as yet in an strong sales of quarter, revenue quarter, investment the overall we periods, step the

basis XXX, method, pro-forma of we been revenue, loss which call As XXX company’s the impacted ASC that operating claims reported expenses margin, payors. modified a recognition I if net retrospective adopted ASC of primarily using related a the standard, quarter revenue not recognition first a the interest will applied. We commercial restated as X, amount has for for the revenue to and January gross thirdparty and of revenue means paid in XXXX, financial on providing the by during reminder, XXX which patient year, governmental comparability effective XXXX the the on new adopted XXXX current non-GAAP, quarter transition statements. been first ASC this had In be information total

remained we our these our addition, consistent into an run results year-over-year very Volume signs market our an XX/XX. growth ended of reconciliation our look XXXX table new large release. in March to this press continue store/same we the to business see expansion around trends rapid mix then: XX/XX and three We included million, was in Taking $XX.X an ratio XX% continues for with guidelines. unit opportunity. have quarter sequentially. store a trend the trended revenue continues quarter XX, as right for first updated while Growth as more to encouraging price at months In XX% detailed increase for

has networks catalyst customers improvements We process, The an for physician positive. successes feedback workflow continued and our extremely we’ve also point integrated the onboarding as been in from growth. large, on integrations onboarding to received EMR our ongoing

in adoption stories that support system and component our large success contracting funnel our our ability stickiness friction belief has competitive reduction workflow a and continued and networks. expand led patient attract giving cycle us key confidence for enterprise as the into and improvements accounts. our ongoing established to in These also Finally, opportunities management success in to pillars, broad of tools great revenue overall a tangible a act our information reach creating

of in attention AT our claims for mix, associated a continued year period P&L, reduction quarter continues, of first me, associated ASC our incremental the with continued gains the of XXX. of Operating $XX.X of - through margin costs driven expenses expansion. and XXXX quarter prior to costs. XXX. the proprietary for Turning was of of algorithms XXXX on despite excuse inclusive of expansion gross compared to XXXX, percentage XX% report same salesforce directly period attributed XXXX can ASC $XX.X amount generation contracted by the device-related to inclusive first were productivity an million, improvement focus same compared this X.X the manufacturing point launch, increase startup with increased be A million the of our XX.X%, over rest Margin growth to XX.X%, for the the significant

extremely We we’ve made our with pleased the are progress on salesforce significant efforts. expansion

development of spend. quarter costs incremental with reps sets make continued The carrying associated are towards loss were $X.XX loss business, the with of of work in when these own, our aggressive In prior the to or for SOX a of invest start These or of accomplishment first Section for the the hiring for well $X.XX extremely net quarter remainder and million, That year-over-year an attestation This to the us our is of million, for a with on quarter $XX.X same In growth our expansion year. fact, the share, XXX(b). well particularly share, rapid up up fourth period organization for the net costs expense was become aside, of ahead XX%. XXXX of research company we of continue quota the loss new plans productive. the and loss of XXXX reps $X.X for compared heavily important year. the we per per there

XX% guidance annual Based success, year to and start guidance adjusted $XXX.X remainder $XXX to XX%, $XXX.X XXXX of XXXX. of million ASC on growth to million strong million Turning to range million representing to the XXX. for to our accelerated our hiring we $XXX our salesforce the raising from are revenue for the

from understand strongly for again quarterly they investors new quota carrying as to and encourage As that inclusive sequential trends their models, that of sales, review summer of we patterning for recently historical reps been build seasonality have QX’XX. hired hired QX XXXX achieve to of until from of XX.X%, in are levels XX.X% Gross the meaningful is not year. the or beginning range Margin XX% to expected process for will productivity the at up being to XX%

of $XXX this take a at belief also operating - projections expect we $XX nearly for our can opportunity to With complete, that million, raising million $XXX XX%. XX% to $XXX range and range SG&A. million to also million $XXX the to margin a expense to reiterate We company including accelerated $XX scale, to of and our exercise are million gross research development for

between in progress we’ve be can these significant these reiterate to that decision confidence of continue and end by to operational April. our to of that with growth Our salesforce made infrastructure, a attributed of year visibility significant and expansion on our on as our goals XXX objectives. spending number topline the hire board support will improving increase directly XXX and investments, both to the reps reps We

the are the our assess market will continue as as hire the to questions. goal advance and We’d provide year progresses. to continue to guidance opportunity to will need of how and updates to we We open to call like toward in now this tracking

Executive like CEO, and open President King, Kevin and questions. to is Strategy now and for Vice call Q&A We Derrick Corporate of your Development. up Operator? for would me President Joining the Sung our

Operator

[Operator Stanley. comes question line of Instructions] first David Lewis Morgan from the Your from

open. Your line is

David Lewis

from kind more product just a I What of AT tactical focused the share if about one about Kevin, I’m where you. But AT. or little First, coming first on of off is I wonder and pull-through strategic, you is adoption talked being us how have on can for growth with questions from used? bit Kevin sense you

the quarter? this rate the share expect share second can happens this revenue your AT that So much an and for market MCOT update how on sort capture or how much through product always run gain pull of is against is from of when

Kevin King

So previously critical patients be ZIO ventricular of being that used might These unaddressed XT. consciousness patients loss is by if unexplained were present with ZIO example. near for in tachycardia will life indicative AT symptoms that of you symptoms

think that as AT. The of prescribers is the getting answers products of that that And these pretty at of the even that we’re invaluable international revenue our that the were way we we I sales accelerated is And thinking us. MCOT using accounts know other staffs well the it. but here in one to gain seeing share so in that about that or their XT a its was of we’re doing have and get was product wonderful close they were single the maybe AT a way adoption time accounts that it that helping MCT something new kind is so had report growth that the and the now we're in. used last - system this from we existing kind is of getting single But were getting new previously until from both. helping question pull-through won't is And that still what's enterprise you less material its accounts the AT probably are and share like we days overall staff for is single or such here happening out XX% which alongside have early share us for point system system we believe we to recognized taking us competitively helping is take of that’s being way

David Lewis

sense spending? it safe thinking to the XX/XX I me number second the more from how in that us more half number we sense XXXX mean tracking light the the couple give a a that reps for Can a XXXX should is XX conservative rep plan rep sales is utilization of is more like you of well number assume first a to force. Kevin makes

Kevin King

all get darn as we in the to guided that’s the those reported of what XX we’re here of from half pretty close. to year XX is to that is Well our first to XX we before goal and XXX so and XXX tucked

first the XX the would after of hired we’ll end in and now productive year I here half out then and in the The to start become rest that. think third fourth that we quarter we’ll upper report the by last QX/QX. So

two up traction As in you them trained one those for them know get their takes quarters get us to territories cetera. with some folks to get it and really et

David Lewis

And queue me thanks with the here. I’ll last and for in me with jump back bearing

the since market IPO, really Just broadly the of diagnostic here, the Kevin, you, advanced. has market time the monitoring

I'll round spend done of differentiation you product your bit confidence work so in just the coding? your back a And can of competitive queue? the Thanks here much. little time and your So in on you've jump

Kevin King

creating a right more and competition new thing. from competitive we good a value that say ZIO changing spurs think that's the customer complete and from a a think change. really would and about talking standpoint quo we’re is value innovation I for there’s status about status them good quo reason unless in say to that proven for changing that pulling customer. I no Look always is better front competition of And is customer than standpoint

from complete of I you we’re give So position think proven and couple of I’ll better solid standpoint a a overall. why competitive think and I a we’re in really examples

the continuous or by strong other better diagnostic aspects device have in resulting to a tests our on device you if competition somewhat will. or MCOT side review yield. seven device, than type intermittent a day the we is to. verb at that is physical monitoring time standard know of high publications we if around will, And have devices to as of become better or any was which modality pull-through IP diagnose that a a not an and whether of we is the very this be as day it’s and XX you an peer in accounts. of our all compared diagnostic three five care even ZIO days the repeat result, fewer yield, day And we So faster even through better, know proven to

capabilities this published XX we side, expert recently a capabilities On arrhythmia to a that I the classes would where are algorithmic proven where plus point outperformed X.X database we say of study the million patient data now spurs proven consistently. analytics the diagnosis cardiologist in that is

are their that diagnosed. because I our patient the and increased think done to performing but that that. tools are the claim rise And competitive that's going from they and important expert so standpoint be a equal to better and that’s there than they have prescriber cardiologist have make to gives a to And that the other we’ve AI is assurance prove better bar that are that to not that

analytics addition value have we of the capability new has of that that burden. like created sources atrial In fibrillation

strength proven of We have cetera. and shortly lives, fibrillation the be uniqueness its that treatment burden ability impact iRhythm atrial to patient et on that the studies and the of decisions coming out will iRhythm will nature and determine highlight

the and and value, their that prescribing, overloaded the of done to They are relative more unmatched The capability that side, and over claims level. On on over is it physicians incented for and kind in cetera be are best are longer that have capability. you again enterprise them Matt ordering, that completeness they have got they and I – responsibility enterprise overworked, results with we’ve the we to status no said incented take is have they and think, of seamlessly quo really to et of reason routing scale for the results has processing, with enterprise volume. want change with us to reporting,

in expanded in less has measuring system. unproven capable expanded providing market while that to ZIO impact the interest and mostly I or of and its think devices So are

On may that bit. could the question sure reimbursement a you David I'm quite be one not understand little to the side me help

David Lewis

codes having existing the using reimbursement contracts? sort traction under maybe as update you operating consistent on that you in been these confidence of maybe peer are and been an negotiating You’re you’ve

Kevin King

they’re to sometimes more of here been four our pricing. the any CMS before We’ve I we cases that you in are stated contracts price think relative renew some in one renewable decreases maybe referring automatically five or or they had As to renegotiated. years not three year many and year I've

renewed was established XXXX, that on And code three guess is. them category we by we and process an and had wait, that’s College the we approached suggested our of a in the I five Cardiology, should XXXX XXXX asked the American and or have they for We behalf. renewed, additional CMS what they years do it we I the that ACC for guess ACC

same far down of of I it’s obtain use to negotiated we every process the most period $XXX/XXX to by over the $XXX And would the year reviewed same inputs that one using think pricing that importantly is would up the have same process David processes, that up to that $X.XX moved as Category it’s time. have As built the is locally went that with down that technical that gone our In code. for processes, $X.XX for price a the through we we the stability our that other is use words been we same or was the and we it CMS tools, exactly a drive global the same code. code compasses

penetrated when the So an moving ACC, much think tell us incumbent we’ve in don’t risk with codes see to commercial upon three payers to incentive or we see challenge they don’t the at the challenges don’t us pricing have represent company I upside this us just forward use moved tough days I of three think beyond going it’s carriers a of of pricing they so we deeply side and about extensively. want them commercial really but can risk downside they on say that we’re but pretty that and CPT it. nor commercial through CPT see barrier, a in of I want of a to, really even I payers point risk codes as early to do the they was were much any our or now if because

Operator

of line from Marcus comes question next JPMorgan. Your Robbie the from

open. Your line is

Unidentified Analyst

on Allen actually is This Robbie. for

plans I question Obviously early begun Just through ultimate any or kind begin but and saw you with currently data that on you of of docs? good do discussions have you payers really terms think, in or pushing that really guys mSToPS. it's your plan put have kind data preparing of either we all enter through and have still obviously, quick to ACC space a the on

Kevin King

then validity the only two you out will the background not support utility we but because have the of would Yes will and it’s of prove a the payers. to it. here read approach driver prong working data That clinical impactful patients now these said economic with year ZIO using most also be are adopting in would if high-risk three we on the we

we created We value we to working created are done, at meaningful meaningful to meaningful is can trying to not be done, days best to the be here promote with as societies say the to medical are I looking be and in work there short-term, should this in value work early because be sure.

Unidentified Analyst

said assuming year. And out a the data then kind three again more I’m for from the just mostly reading SCREEN I of about having comes And do of into that play I you’ll the you're still waiting kind on but year mentioned once half you know strategy? this quick how be follow year. you know in up later AF, out that of data that data publish your back you expect to

Derrick Sung

that Sorry Allen this so Derrick one. I’ll take

population that is study still SCREEN the study sound which that which AF underway. addresses AF also So a

probably some And other year. studies initial out some I the in do would be to results that there that some And expect additional we we addition, – not this to are that analysis out meantime. initial currently year, expect come could in have that think we for out. come that from is next also mSToPS

measured highlight value silent atrial being two on XXth. of function, elderly at I our poster be and another association continue cognitive In posters will next the that's further on population is at And AF fibrillation May poster that’s ZIO that's looking there presented XXth. the time presented on ZIO subclinical that or to focused there which prevalence being by week this in and to fact burden and is as One HRS mention of service. take examining the

the expect evidence we over out trickle time. to clinical continue So to

Operator

Your of line next question comes from the from Genuity. Canaccord Jason Mills

is line Your open.

Jason Mills

So be quick revenue, margin. question on so question gross to on I'll try

good fairly sales last reps that pointed respect you this to that a then obviously seemingly And to success. an with had rep acceleration in end on year terms that think So expansion sales of even was year the the year hiring. you rep

to there the So productivity of had? if of so with algorithm wondering respect model just onboarding similar been reps new to many at positively/negatively initial it – or reps Matt changed the all all any sort at has in ramp is fairly sort change is for the those

Matthew Garrett

X.XX I period think we would which million additional currently I but sales new provide to are that – productivity at the on the not is that ready answer stands would guidance say to I anecdotally or we’re four seeing. way rep three any in

end optimistic level just in cautiously your early seeing But with coming from are than it’s as where of that, those a the that too hires for rep well. your of We’re of for to high more any productivity reps just season but for ranges cautiously number and not of but the sort we days that new us board t new on such particular provide to standpoint. guidance large guidance again optimistic we’re

Jason Mills

the specifically margins with I as therefore, percentages cadence think we margins there then respect rather that hasn’t to Matt the what your gross and year laid you more secondly But And see for and, it’s volume impacting is past. is reason any term and for the gross your hear progresses to on expectations expectation changed. then in percentages COGS to you guess margin year the clearly how glad gross the the year out longer to the

simplistic a that see there would year to more any is to in suggest sequentially be watchful we gross XX% - you seems down anything it wanted that companies up that anything it should start notwithstanding So we way quarter, in I we that just to like should to may seasonal will margin most the medtech don’t the make sequential affect is close it? gross continue margin for seasonally face, sequentially QX ask guess here – tick from issue given the given the that have

Matthew Garrett

There in year. we downwards gross overall, grow sequentially or again nothing in the throughout we present in our we at to could is our your there there, And first or here to would those continue should have impact debt address a have material gross time. think which reason sort me sequentially continue comment move of to present impact Let an is invest we deep not of of learning that material be is the the that feel itself specific second would small way cause margins. I or margins I tools no correct any think as AR that other seasonality aware But in, standard a as the going at the upwards overtime. but cadence question point the on one heavily see part I'm I as initial adjustment

Operator

question comes Novarro next the Capital Markets. from of Glenn RBC Your from line

line open. is Your

Glenn Novarro

[indiscernible]?

Kevin King

call Glenn is the reception your pretty poor. on

do the going We’re want echo it Matt, background a to to was to there. got there try to you repeat question sure we make repeat.

ahead If it answer and tell us you and go then can it. got we’ll Glenn you

Matthew Garrett

there to bit our the little Glenn guidance. And on So we of of a stop is what and bit if on rep impact I you think guidance I optimism X.X else see top that just question. there me in that to were we heard a had something think and is of to or raise an the have detail of beat connotates little it let yes a which your a of sales was going million about

Glenn Novarro

Yes, that correct. is

Matthew Garrett

the almost is Jason same answer levels. to I answered way sales the - productivity relates answer just to So I’ll the

coming and case that I then obviously QX standards. productivity where the of internal optimistic think confidence at present And QX we’re little of us in out what is new levels we only our hiring head of a second year. of but traction gives the seeing comments as a we’re vis-à-vis out half slight some good existing are guidance own bit we we if material ahead a thus the us AT towards well. some the albeit all our the both reps with about time as feel of aggressive Kevin move now that we not cautiously the of seeing We’re for of with deep And reason along raise providing, of that

Operator

line Your from Company. Eugene next Mannheimer question comes Dougherty the from of &

Your open. is line

Eugene Mannheimer

the that versus the the electrophysiologists lead AT your slightly care around then a patient primary the to Curious doc cardiologist? a example different to XT the call respect XT. and for general AT point or service the With doctor over nuances symptoms has if prescribe the

Kevin King

is we with the surgeons, sales care. the points so with for cardiologists, emergency call at neurology, department, cardiac the with with team level point Well electrophysiologists, enterprise have with with call primary

think abnormality wherever ones. specialist or rhythm is certain rhythm the whatever making might, of I to in essentially the that probably We’re are symptomatic heart are EP these higher get physicians patients product general heart say which that be would that the might frequently more referred though there see to trying acuity I know prescribe.

the it think we’re So be opportunity that general is in strong we in as EPs I said cards forth. that and equally so disproportionate there are could electrophysiologists amongst a

Eugene Mannheimer

productivity per and that both of scale? XT of AT right the to the just that X.XX And at million clarify service rep inclusive metric

Kevin King

no and today how mix quite could XT forth to fourth gave when and then very that your know of We to as you we’re quarter and We’ve disproportionate fourth changes that is productivity little gets current that gave the pricing be. in versus XX/XX not XT number mix you is may But given the the largely point quarter Oh and XX/XX think be we given so really rate AT current I but to that we’ve pro that AT had put is projected not rates in a XX/XX the don't and between number is Matt that the or the what well all forma the he are very, would we're forward-looking the if business. productivity it forward, was at high business. get essentially dramatically.

Operator

Securities. of Kalia Northland the comes question from next Your from Suraj line

open. Your line is

Suraj Kalia

between the you two in learning been calls. roadmap see that? six on two or amount to me once for us period. you Kevin how questions are two-week can Can and four know quarters your sent all just is they’ve Patch I time So provide the investing turnaround please how in a of next from toggling average current if a upon Any give all algos. all you you forgive asked reduced you machine roadmap significant dollars ZIO already getting should we look the

Kevin King

unless elements. you misunderstood might might two I question be confusing You the

so the wearing day XX.X are of a days period out Patch wear on XX the patients prescription. a average is ZIO there So

time get the we’re So queue the don’t fully nearly We same patch report week have two is the utilized. patients. we day. for for same a on back turnaround that reporting, from The the day we report

Suraj Kalia

my usually can the the learning that's algos certainly another even me but forgive it’s off-line. of if take weeks I it understanding two And part queue and machine that is takes in

one mentioned things on claims offload aspects other more taking physicians you of you’ll is thing of The want guys. the other to the all processing and terms in which you to

we all you patient. questions. getting I and guess component do my what really OpEx the a capturing the technical the would address patient the you I'm start we to this same. point of trying say remains the While returns is Is Thank to through the diminishing what do be there in clarity at and on of essential great. what or where taking this taking capturing than sense of more there point leverage topline it for model the know helps you more can is

Kevin King

have customer us value. order The quo customers to point from and business of value point value to be you of cost the the clinically the business labor said the for that physician an I the minimus needs want earlier status created view. to to to to for high to is for side of not a given us quality rest. value informatics diagnosis giving The company that iRhythm relative to - to responsible do we’re be a if for create created. take more a as business entire the their company of assurance and change will service or create has you care be So in created order And value is in view

versus infrastructure time across Patch competitive that informatics line. the item and or using ZIO don’t growth people the not the data products driving and Patch them, curate for curate if that’s and bill investing us interpret Those digital a the necessarily as levels it. our side That’s in that's then doing yet reaching you are is – you device be iRhythm and creating enterprise force and a you built we’ve of operating we for expense here's to to organization big analytics of be a said system they’re a that in you the for to right intended from more company more them. pivot and have here’s and expense the They contributing bottom new would sales productivity it, not do like Leverage programs. R&D unique now is because of advantage value So the the company. data to medical ZIO the things comes are in it, the

be as We relatively that in addressable what’s as leader in need oriented of oriented our others large invest value than ourselves this have growth do vision market space do think goal market a we bottom and very and a small and more and very, company And company. order we a line share. a to to our the in to

Matthew Garrett

the into business layer the down because falling lot of underestimate the XX% the don’t strength P&L. But next with a there of gross margins is or

Operator

turn time. Kevin back conference questions further would King. now this I at no the Mr. to to showing I’m like

Kevin King

your and Thank our call. XXXX you, results. know joining Operator. want with And to our year. with the Thank happy QX later We you look all you to talking interest in forward I for Thank we’re appreciate you.

Operator

concludes conference. you a participation wonderful this for and your Ladies Thank have and gentlemen, today's day.

You all disconnect. may

iRhythm (IRTC) 5 May 182018 Q1 Earnings call transcript