IRADIMED CORP Q4 FY2024 earnings call

• Record Q4 revenue with 14th consecutive record quarter; GAAP diluted earnings per share increased 11% from Q4 2023.
• New pump progress: Received additional info letter from FDA in early September, engaged with agency via SIR meetings, plan to respond to FDA in first week of April, expect clearance mid-summer 2025; light revenue from new device in Q4 2025 as sell-in is measured in months.
• New facility under construction: Steady progress, on track with minor supply disturbances mitigated; expected June final certificate of occupancy.
• Q1 2025 guidance: Revenue $19.2M-$19.4M, GAAP diluted EPS $0.35-$0.39, non-GAAP diluted EPS $0.39-$0.43.
• Full-year 2025 guidance: Revenue $78M-$82M, GAAP diluted EPS $1.55-$1.65, non-GAAP diluted EPS $1.71-$1.81.

In the fourth quarter of 2024, revenue was over $19.4 million. Device revenue increased 12% to $14.3 million in Q4 and 13% to $52 million for the fiscal year 2024, driven by a 34% and 36% increase in pump revenue respectively. Revenue from disposables and services increased 9% for both Q4 2024 and the fiscal year. Domestic sales were $16.5 million, a 21% increase, while international sales were $2.9 million, a 24% decrease. Domestic revenue accounted for approximately 85% of total revenue in Q4 2024.

• Q1 2025: Revenue expected to be between $19.2 million and $19.4 million, GAAP diluted earnings per share between $0.35 and $0.39, non-GAAP diluted earnings per share between $0.39 and $0.43.
• Full-year 2025: Revenue anticipated to be $78 million to $82 million, GAAP diluted earnings per share $1.55 to $1.65, non-GAAP diluted earnings per share $1.71 to $1.81.

• Tariffs: Source a few expensive components from countries with tariffs, but these make up less than 3% of BOM cost, so impact on gross margin is negligible.
• FDA clearance timeline: Uncertainty due to administration turmoil, though no strong sign of slower operation as of yet.

Q: In terms of next year, should we assume that the sales force is going to focus more on the monitor business and we see an uptick there? How do you see this 2025, at least on the top line sort of forming?

A: Roger Susi says that in 2025, the sales force will focus more on the monitor business, with strong bookings for monitors in Q4 2024 already showing, and the monitor business will be significantly impacted in 2025.

Q: Related to the uptick, has there already been sort of a shift in focus of the sales force or as part of the reason we saw this sort of uptick in Monitor business? Or is it just sort of...

A: Roger Susi says midyear last year, they made minor tweaks to goals surrounding monitor vs pump, which started showing in Q4 and didn't impact pump business.

Q: Of the current pump installed base out there, can you just walk us through starting in 2026 how many pumps you think you can renew a year with the 3870?

A: Roger Susi says there are over 4,000 pumps older than five years, expecting 800 to 1,000 replacements of those systems, which is about 1,600 to 2,000 pumps in 2026.

Q: Concerns over tariffs?

A: Roger Susi says they source a few expensive components from tariff-hit countries, but these make up less than 3% of BOM cost, so tariffs won't materially affect gross margin.