Iradimed (IRMD) 1 Aug 24 2024 Q2 Earnings call transcript

IRadimed Corporation, a leading player in the medical device industry, has reported another record-breaking quarter for the second quarter of 2024. The company's financial results indicate a 12th consecutive quarter of record revenue, marking a significant milestone in its growth trajectory.

Revenue Growth and Gross Profit

In the second quarter of 2024, IRadimed recorded revenue of over $17.9 million, representing an increase of 11% compared to the second quarter of 2023. This growth was driven by strong bookings and resulting backlog for its pump product line. The company's gross profit also showed a substantial increase, reaching 78%, demonstrating its operational efficiency and effective cost management.

New Pump Progress and Clearance Expectations

IRadimed is actively working on the clearance of its new pump, the 3870, which is expected to be a significant revenue driver in the coming years. The company is confident that the 510(k) filing for this new product will be in the FDA's hands within the next few weeks of August. However, the clearance process may take some time, with the first response and list of questions from the FDA expected in late October. This clearance is expected to have a modest impact on Q4 of 2025, with the revenue from this new product gradually increasing in 2026.

Domestic and International Sales

Domestic sales accounted for approximately 86% of total revenue for Q2 2024, reflecting the company's strong market position in the U.S. International sales, on the other hand, decreased by 23% compared to the previous year. This trend is partly due to the international revenue mix, which, when it is more heavily weighted, shows in the gross margins and bottom line. The company plans to push for price increases in several countries to improve its revenue mix.

Outlook and Future Growth

For the third quarter of 2024, IRadimed expects revenue of $18 million to $18.2 million, with GAAP diluted earnings per share of $0.34 to $0.37 and non-GAAP diluted earnings per share of $0.38 to $0.41. The company is also optimistic about its future growth, particularly in 2025, driven by the continued growth of its plaque oil business and strategic initiatives to boost Monitor growth.

Conclusion

IRadimed Corporation's second quarter results demonstrate its strong financial health and operational efficiency. The company's strategic initiatives, including the launch of new products and price increases in international markets, position it well for continued growth in the coming years. With a focus on innovation and market expansion, IRadimed is poised for a promising future in the medical device industry.