iRadimed Corp (IRMD) Q2 2024 Earnings Call Highlights: Record Revenue and Strong Domestic Sales ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $17.9 million, an increase of 11% compared to Q2 2023.

  • Gross Margin: 78.1%, up from 75.5% in Q2 2023.

  • Domestic Sales: Increased 19% to $15.5 million.

  • International Sales: Decreased 23% to $2.4 million.

  • Device Revenue: Increased 17% to $12.7 million.

  • Pump Revenue: Increased 52%.

  • Disposables and Services Revenue: Decreased 3% to $4.7 million.

  • Operating Expenses: $8.4 million, 46% of revenue.

  • Income from Operations: Grew 13.4% to $5.6 million.

  • Net Income (GAAP): $0.38 per diluted share, up 15% from $0.33 in Q2 2023.

  • Net Income (Non-GAAP): $0.42 per diluted share, up from $0.36 in Q2 2023.

  • Cash from Operations: $6.6 million, up $3.5 million from the same period in 2023.

  • Free Cash Flow: $5.4 million, up from $3.1 million in the same period in 2023.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • iRadimed Corp (NASDAQ:IRMD) reported its 12th consecutive record quarter with revenue exceeding $17.9 million.

  • Gross profit increased to 78%, with GAAP diluted earnings per share rising by 19% from Q1.

  • Domestic sales saw a significant increase of 19%, contributing to 86% of total revenue for Q2 2024.

  • The company experienced a 52% increase in pump revenue, driven by strong demand for the 3860 model IV pumps.

  • Cash from operations rose to $6.6 million for the quarter, up from $3.5 million in the same period in 2023.

Negative Points

  • International sales decreased by 23%, contributing only $2.4 million to total revenue.

  • Revenue from disposables and services decreased by 3% to $4.7 million for the second quarter of 2024.

  • The new 3870 IV pump is still pending FDA clearance, with significant revenue impact not expected until 2026.

  • Operating expenses increased to $8.4 million, representing 46% of revenue, up from 44% in the previous year.

  • The construction of new MR suites, which affects the FMD device sales, is subject to delays, limiting revenue speed.

Q & A Highlights

Q: Can you discuss the revenue growth expectations for pumps and monitors for the rest of the year? A: Roger Susi, CEO, explained that the revenue from the 3860 IV pump is expected to remain strong through the rest of 2024 and into 2025 due to the warranty force conversion. While the growth rate might not increase further, it will maintain a healthy level. The company is also focusing on boosting monitor sales through new marketing strategies, although not expecting the same growth rate as the pumps.

Q: What is the status of Average Selling Price (ASP) increases, and is there room for further expansion? A: Roger Susi noted that most domestic contracts have already seen price increases, and further increases are not expected for another year or two. However, there is potential for ASP increases in international markets, which could positively impact gross margins and overall revenue.

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