Joseph on for David Saxon's questions to iRhythm Technologies Inc (IRTC) leadership • Q4 2024
Question
An analyst on for David Saxon asked about the gross margin outlook, seeking clarity on the cadence of improvement in 2025 (excluding tariffs) and the margin impact from international launches.
Answer
CFO Daniel Wilson stated that the impact from international launches, which includes lower-margin distributor sales, is already factored into guidance. He projects the overall 2025 gross margin to be flat year-over-year, as sustainable operational improvements will be offset by a 50-75 basis point headwind from potential tariffs and other pricing pressures. However, he reiterated confidence in long-term margin expansion driven by manufacturing automation and platform efficiencies.