iRhythm Technologies, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $147.5 million for the three months ended September 30, 2024, marking an 18% increase from $124.6 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $427.5 million, up 19% from $360.2 million year-over-year. Gross profit also saw a notable rise, with $101.5 million for Q3 2024 compared to $82.5 million in Q3 2023, and $292.5 million for the nine-month period, up from $244.4 million.
Despite the revenue growth, the company reported increased operating expenses, which totaled $151.8 million for Q3 2024, a 38% increase from $110.1 million in Q3 2023. For the nine-month period, operating expenses rose to $403.9 million, up 22% from $330.4 million. This led to a loss from operations of $50.3 million for Q3 2024, compared to a loss of $27.6 million in Q3 2023. The net loss for the quarter was $46.2 million, a 70% increase from the $27.1 million loss in the prior year. For the nine months, the net loss was $112.0 million, up from $84.7 million in 2023.
The company’s cash and cash equivalents surged to $519.5 million as of September 30, 2024, a significant increase from $36.2 million at the end of 2023. Total assets also rose to $909.7 million, up from $433.1 million at the end of 2023. However, total stockholders’ equity decreased to $71.8 million from $210.1 million, primarily due to the issuance of long-term senior convertible notes amounting to $645.8 million.
Strategically, iRhythm made notable investments, including a $15 million upfront fee and $40 million in convertible promissory notes to BioIntelliSense, Inc. as part of a Technology License Agreement. The company also recorded $32.1 million in acquired in-process research and development expenses related to this agreement. Additionally, iRhythm is undergoing a transformation of its revenue cycle management function, which may impact operational efficiency.
The company continues to face challenges, including a temporary billing delay due to a cybersecurity incident affecting its claims processing vendor. Furthermore, the ongoing legal proceedings, including a putative class action lawsuit and regulatory scrutiny from the FDA, may pose risks to its operations and financial performance.
About iRhythm Technologies, Inc.
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