The digital healthcare company, iRhythm Technologies, Inc., has recently released its 10-K report, showcasing its business activities. The company specializes in designing, developing, and commercializing device-based technology to provide ambulatory cardiac monitoring services for diagnosing arrhythmias in the United States. Its main offering is the Zio Services, which include long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company's revenue primarily comes from contracted third-party payors, Centers for Medicare and Medicaid, and healthcare institutions.
In the 10-K, the company's management's discussion and analysis of financial condition and results of operations revealed that iRhythm Technologies defines Adjusted EBITDA as a key measure used to assess its financial performance. This measure is used for internal planning and forecasting purposes and is also helpful to investors, analysts, and other interested parties. The company reported an Adjusted EBITDA of $(7,748) for the year ended December 31, 2024, compared to $(4,863) for the year ended December 31, 2023.
The report also highlighted macroeconomic factors that could impact the company's future results of operations and liquidity. Factors such as delays in payments of outstanding receivables, supply chain disruptions, uncertain or reduced demand, and the impact of initiatives or programs undertaken to address financial and operational challenges faced by customers were discussed.
Furthermore, the 10-K reported on the company's revenue, cost of revenue, research and development expenses, acquired in-process research and development expenses, selling, general and administrative expenses, interest income, interest expense, other income (expense), net, and loss on extinguishment of debt for the years ended December 31, 2024, and 2023. The report showed that revenue increased by $99.2 million, or 20%, to $591.8 million during the year ended December 31, 2024, as compared to $492.7 million during the year ended December 31, 2023. Additionally, the cost of revenue increased by $23.4 million, or 15%, from $160.9 million in 2023 to $184.3 million in 2024.
Following these announcements, the company's shares moved 5.8%, and are now trading at a price of $119.22. For the full picture, make sure to review iRhythm Technologies's 10-K report.
