Sign in

You're signed outSign in or to get full access.

IC

IRADIMED CORP (IRMD)·Q4 2024 Earnings Summary

Executive Summary

  • Record quarter: revenue $19.39M (+11% y/y), GAAP diluted EPS $0.40, non-GAAP diluted EPS $0.44; 14th consecutive quarterly revenue record, supported by strong IV pump demand and robust backlog .
  • Revenue exceeded Q4 guidance high-end ($18.8–$19.2M) with $19.39M; EPS landed within guidance (GAAP $0.39–$0.42; non-GAAP $0.42–$0.45) .
  • FY25 outlook: revenue $78–$82M; GAAP EPS $1.55–$1.65; non-GAAP EPS $1.71–$1.81; Q1’25 outlook: revenue $19.2–$19.4M, GAAP EPS $0.35–$0.39, non-GAAP EPS $0.39–$0.43 .
  • Dividend raised to $0.17/share from $0.15, reflecting confidence and cash flow strength; facility build completes mid-2025, with ~$5.5M additional capex to finish in 2025 .

What Went Well and What Went Wrong

  • What Went Well

    • “Fourteenth consecutive quarter” of record revenue; Q4 revenue $19.4M, strong EPS, backlog momentum into 2025 .
    • IV pump demand remained the primary growth engine; Q4 device revenue +12% y/y, pump revenue +34% y/y; domestic mix rose to 85% .
    • Management raised the quarterly dividend to $0.17 and affirmed strong gross margin structure (76.1% in Q4) with 2025 margin view at ~76%–77% .

  • What Went Wrong

    • International sales declined 24% y/y to $2.9M, shifting mix toward domestic and modestly pressuring gross margin y/y (76.1% vs 76.9%) .
    • Higher sales commissions on strong bookings increased Sales & Marketing expense, limiting operating leverage in Q4 (OpEx 46% of revenue vs 47% in Q4’23; leverage expected to improve as 2025 progresses) .
    • Free cash flow declined y/y in Q4 to $2.93M (from $3.28M) due to facility capex ($2.7–$3.1M in the quarter), though operating cash flow rose to $5.99M .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($M)$17.45 $17.93 $18.33 $19.39
GAAP Diluted EPS ($)$0.36 $0.38 $0.40 $0.40
Non-GAAP Diluted EPS ($)$0.39 $0.42 $0.43 $0.44
Gross Margin (%)76.9% 78.1% 77.4% 76.1%
Operating Income ($M)$5.16 $5.63 $5.79 $5.80
Cash from Operations ($M)$3.91 $6.64 $9.12 $5.99
Free Cash Flow ($M)$3.28 $5.37 $5.10 $2.93

Segment revenue (Q4 2024 vs Q4 2023)

CategoryQ4 2023 ($)Q4 2024 ($)
MRI-Compatible IV Infusion Pump Systems$5,644,225 $7,572,771
MRI-Compatible Patient Vital Signs Monitoring Systems$6,850,452 $6,573,867
Ferro Magnetic Detection Systems$325,252 $165,008
Disposables, services and other$4,114,088 $4,467,916
Amortization of extended warranty agreements$518,159 $609,605
Total Revenue$17,452,176 $19,389,167

KPIs (mix and cost structure; Q4 2024 vs Q4 2023)

KPIQ4 2023Q4 2024
Domestic revenue mix (% of total)78% 85%
International sales ($)N/A$2.9M
Gross Margin (%)76.9% 76.1%
Operating Expenses (% of revenue)47% 46%
Dividend declared (next quarter)$0.15 (Q4’24 declared in Oct) $0.17 (Q1’25)

Estimate comparisons

  • Wall Street consensus from S&P Global was unavailable at the time of analysis due to data access limits; comparisons vs external estimates are therefore not shown (we will update upon availability). Q4 actual revenue exceeded the Company’s guidance high-end ($19.39M vs $18.8–$19.2M); EPS were within guided ranges (GAAP $0.39–$0.42; non-GAAP $0.42–$0.45) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024$18.8–$19.2M $19.39M (actual) Beat (above high end)
GAAP Diluted EPSQ4 2024$0.39–$0.42 $0.40 (actual) In-line
Non-GAAP Diluted EPSQ4 2024$0.42–$0.45 $0.44 (actual) In-line
RevenueQ1 2025N/A$19.2–$19.4M New
GAAP Diluted EPSQ1 2025N/A$0.35–$0.39 New
Non-GAAP Diluted EPSQ1 2025N/A$0.39–$0.43 New
RevenueFY 2025N/A$78–$82M New
GAAP Diluted EPSFY 2025N/A$1.55–$1.65 New
Non-GAAP Diluted EPSFY 2025N/A$1.71–$1.81 New
Gross Margin (%)FY 2025N/A~76%–77% (management view) New
R&D SpendFY 2025N/AFlat to slight uptick vs 2024 New
Capex (facility completion)FY 2025N/A~$5.5M remaining to complete New
Quarterly DividendQ1 2025$0.15 $0.17 Raised

Earnings Call Themes & Trends

TopicQ2 2024 (Prev-2)Q3 2024 (Prev-1)Q4 2024 (Current)Trend
New 3870 MR IV pump – FDA timelineNot detailed510(k) filed 9/11; expecting clearance Q2’25; minimal 2025 revenue AI letter addressed; response early April; clearance expected mid-summer 2025; commercial story is 2026 On track; clarity improving
Sales focus shift to monitorsNot highlighted2025 comp plan to emphasize monitors; pump to be deemphasized during transition Mid-2024 tweaks to goals; Q4 monitor bookings strong; 2025 monitor to “significantly” pick up Monitor momentum building
Backlog visibilityStrong bookings/backlog carry into 2H’24 Backlog supports Q4 visibility Exceptional Q4 bookings; record backlog entering 2025 Strengthening
Gross margin78.1% in Q2 77.4% in Q3 76.1% in Q4; 2025 view 76–77% Slight compression; stable outlook
Geographic mixDomestic 86.6% Domestic 83% Domestic 85%; international -24% y/y Domestic-heavy
Facility build~$12M over 9–12 months planned “Dried in” pre-Thanksgiving; move-in ~May 2025 CO targeted June; ~$5.5M remaining spend On schedule
Tariffs/macro——Tariff exposure de minimis (<3% BOM parts affected); no material GM impact Limited risk

Management Commentary

  • “Once again, I am in a fairly unique position to report yet another record quarter, and our 14th consecutive quarter,” with revenue “over $19.4 million” and continued strong demand for pumps; monitor bookings domestically hit a record-tie pace .
  • On the 3870 pump: “We plan to have [AI response] back to the FDA in the first week of April… we will expect clearance… mid-summer. To reiterate… the 3870 MR IV pump will be a 2026 story” (light Q4’25 revenue, scalable shipments in 2026–2027) .
  • CFO on growth drivers and profitability: Q4 revenue +11% y/y to $19.4M, Q4 GM 76.1%; OpEx $9.0M (46% of revenue); operating income $5.8M (~30% margin). Sales commissions rose on exceptional bookings; record backlog stepping into 2025 .
  • 2025 model cadence: gross margin expected ~76–77%; R&D fairly consistent with slight headcount additions; some upfront hiring (clinical specialists/territories) to support 2026 pump launch .

Q&A Highlights

  • 2025 mix shift to monitors: Sales incentives rebalanced mid-2024; management expects monitors to “significantly” pick up in 2025 without impairing pump momentum .
  • Cost structure: R&D roughly flat to slightly up; gross margin guided ~76–77% for 2025, mix/geography dependent; expect some leverage in G&A, while S&M remains variable with commissions .
  • Go-to-market capacity: Plan to increase territories toward ~35 over time (from ~28 currently) in preparation for 3870 launch; some spend ahead of revenue in 2025 .
  • Backlog/visibility: Backlog biased to pumps, but monitor bookings strengthened in Q4; provides strong 1H’25 visibility .
  • Replacement cycle sizing: Starting 2026, aim for ~800–1,000 system replacements annually (~1,600–2,000 pumps), more than doubling current twin-channel pump volumes (~1,200) .
  • Tariffs: Minimal gross margin impact expected; affected parts <3% of BOM .

Estimates Context

  • S&P Global consensus estimates were not retrievable at the time of analysis due to data access limits; as a result, Street-vs-actual comparisons are not shown. Internally, Q4 revenue exceeded company guidance high-end while EPS were within ranges, and FY25 guidance implies continued growth (revenue $78–$82M vs FY24 $73.24M; GAAP EPS $1.55–$1.65 vs FY24 $1.50) .
  • Directionally, monitor acceleration and a record backlog support near-term revenue resilience; margin framework remains stable at mid-70s GM, which should anchor EPS trajectory in 2025 pending ramp costs for the 2026 pump launch .

Key Takeaways for Investors

  • Clean topline beat vs guidance on revenue, with EPS in range; demand for IV pumps remains strong and backlog is a meaningful near-term support for deliveries through 1H’25 .
  • 2025 is a “monitor” year by design as incentives pivot, helping bridge to the 3870 pump launch; this should diversify growth drivers ahead of the 2026 replacement cycle .
  • Margin structure remains attractive (76%–77% GM outlook), albeit slightly lower than earlier 2024 levels; leverage expected in G&A, with S&M linked to bookings .
  • Capex headwind to FCF is transient; facility completion targeted mid-2025 with ~$5.5M remaining spend, positioning IRMD for higher capacity into the pump launch .
  • Dividend uplift to $0.17/share underscores balance sheet strength and recurring cash generation; policy appears supportive of continued returns subject to Board approval .
  • 2026 replacement cycle is sizable (800–1,000 systems/year, 1,600–2,000 pumps), setting the stage for outsized pump growth post-approval; management plans to right-size territories accordingly .
  • Limited tariff exposure (<3% BOM) reduces macro cost risk to gross margin heading into 2025 .