Eargo Debuts Two New Devices, Expanding Portfolio of Hearing Wellness Offerings

Rhea-AI Summary

Eargo, Inc. launches two new over-the-counter (OTC) hearing wellness devices, Eargo SE and LINK by Eargo, to provide customers with more choices to address hearing loss. The new devices offer a new earbud form factor and a completely-in-canal option focused on Eargo signature essentials, addressing additional consumer needs around functionality, design, and experience. Eargo's expanded portfolio ensures a breadth of options, no matter the level of need, and is available for purchase online, via Personal Hearing Guides, and in select retail partner stores.

Insights

Market Research Analyst

The introduction of Eargo's two new over-the-counter (OTC) hearing wellness devices, Eargo SE and LINK by Eargo, is a strategic move in a market where accessibility and innovation are key drivers. The hearing aid industry is experiencing a transformation with the FDA's creation of a category for OTC hearing aid devices in 2022, which has broadened consumer options and intensified competition.

The pricing strategy, with Eargo SE at a higher price point of $1,650 and LINK by Eargo at $799, suggests a tiered approach to target different segments of the market. This could potentially expand Eargo's customer base by offering options for varying budget levels. Moreover, the integration of Bluetooth 5.3 streaming in LINK by Eargo could attract tech-savvy consumers looking for connectivity features in hearing aids.

However, the challenge for Eargo remains in differentiating its products in a market where many OTC devices compete primarily on price. The company's focus on quality, discreet design and ongoing support could be a decisive factor for consumers willing to invest in higher-priced OTC options. The long-term success of these products will likely depend on consumer reception and the ability of Eargo to leverage its expanded portfolio to capture a larger market share.

Financial Analyst

The launch of Eargo's new products could have a significant impact on the company's financial performance. The hearing aid sector is marked by a high prevalence of hearing loss in the population, with an estimated 37.8 million Americans experiencing some degree of hearing difficulty. This represents a substantial market opportunity for Eargo, especially if the company can effectively address the average 8.9-year delay in hearing aid adoption.

From a financial perspective, the success of the new devices will be critical in driving revenue growth and improving market share. Eargo's distribution through both online channels and select retail partner stores, including Best Buy and Amazon, is indicative of a comprehensive go-to-market strategy that could enhance sales volume. Additionally, the acceptance of major health plans and in-network status with BCBS could improve accessibility and affordability, potentially leading to increased adoption rates.

Investors will be closely monitoring Eargo's sales performance post-launch, as this will be a key indicator of the company's ability to capitalize on the OTC hearing aid category. It will be essential for Eargo to demonstrate that its products can meet consumer needs and stand out in a crowded marketplace to sustain investor confidence.

Healthcare Industry Analyst

Eargo's product launch is timely, given the growing need for hearing support and the shift in hearing aid accessibility due to FDA regulations. The company's emphasis on quality and support aligns with industry trends that prioritize customer experience and post-purchase service.

While the hearing aid industry has been historically dominated by prescription devices, the OTC category presents a new dynamic. Eargo's strategy to offer a completely-in-canal option and a low-profile earbud-style device with advanced features like Bluetooth streaming addresses a gap in the market for discreet yet technologically advanced hearing solutions.

The potential impact on the industry could be significant if Eargo's devices are well-received. The company's approach to combine innovation with customer support could set a new standard for OTC hearing aids, influencing competitors to enhance their offerings. The long-term implications for the industry could include increased adoption rates and a shift in consumer expectations towards more feature-rich, user-friendly hearing aids.

Eargo will provide customers with even more over-the-counter (OTC) choices to help address hearing loss on their own terms

SAN JOSE, Calif., Jan. 31, 2024 (GLOBE NEWSWIRE) -- This quarter, Eargo, Inc. launches two new over-the-counter (OTC) hearing wellness devices, Eargo SE (launching today) and LINK by Eargo (launching in the first quarter of 2024). The new devices expand the brand’s portfolio of offerings with a new earbud form factor and a completely-in-canal option focused on Eargo signature essentials. For over a decade, Eargo has set the industry standard for pairing award-winning discreet and effortless hearing devices with ongoing expert support. These newest devices address additional consumer needs around functionality, design and experience. Key highlights of each product include:

• Eargo SE (MSRP$1,650): A streamlined, self-fitting OTC device launching today focused on Eargo’s signature essentials – virtually invisible, rechargeable, open-fit, completely-in-canal form factor and lifetime support. With a new ear tip design, companion app, and pocketable charger, Eargo SE pairs quality with simplicity.
  
  

• LINK By Eargo (MSRP$799): A new form factor for the brand launching in the first quarter of 2024, introducing an earbud-style OTC hearing aid that remains true to Eargo’s key hallmarks of discreet design and innovative technology. Going beyond Eargo’s exclusive virtually invisible devices, LINK By Eargo provides users with reliable hearing loss support plus additional capabilities as the first ever low-profile earbud-style hearing device with Bluetooth 5.3 streaming.
  
  

Eargo’s launch comes at a pivotal time, with growing numbers of people needing hearing support. An estimated 15% of American adults aged 18 and over, or approximately 37.8 million Americans, reported some trouble hearing without a hearing aid, making hearing loss the third most common chronic health condition in the U.S.¹ Even with the number of Americans experiencing noise-induced hearing loss on the rise, people still wait an average of 8.9 years² to address their hearing loss due to barriers like cost, lack of awareness and limited access to health services.^3,4

Hearing aid accessibility has shifted significantly since the FDA created a category for over-the-counter hearing aid devices in 2022. Consumers now have a newly broadened range of alternatives, including more basic devices competing on price over functionality. However, as a result, many new OTC devices still fall short when it comes to challenging the known shortcomings of hearing aid adoption and providing an effortless product and support model that fully benefits the user. Eargo’s portfolio of offerings proves that people with hearing loss don’t need to compromise on quality or a trusted experience when seeking the support they need.

“These two new products double down on our decade-long commitment to create better hearing wellness options – pairing innovative devices with consistent, seamless support,” says Bill Brownie, Chief Operating Officer and interim Chief Executive Officer of Eargo. “While expanding OTC access and lowering costs for customers is a great first step for our industry, people also deserve the highest quality products and necessary support to incorporate these devices into their daily lives. Our expanded portfolio ensures a breadth of options, no matter the level of need.”

Eargo’s complete portfolio of over-the-counter hearing aid devices - including LINK By Eargo, Eargo SE and Eargo 7 - will be available for purchase online at Eargo.com, via Personal Hearing Guides at +1 (855) 543-5960, and in select retail partner stores including Best Buy, Target, Victra, and on Amazon. Individuals with hearing aid insurance benefits may be able to use their benefits toward the purchase of Eargo. Eargo accepts all major health plans, subject to verification of benefits, and is in-network with BCBS.

About Eargo
Eargo is a medical device company on a mission to improve hearing health. Our innovative products and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost. We believe our Eargo hearing aids are the most innovative in the category. We believe our Eargo hearing aids are the first virtually invisible, rechargeable, completely-in-canal FDA-regulated devices indicated to compensate for mild to moderate hearing loss. Our differentiated, consumer-first approach empowers consumers to take control of their hearing. Consumers can purchase online, at retail locations or over the phone and get personalized and convenient consultation and support from hearing professionals via phone, text, e-mail or video chat. Eargo hearing aids are offered to consumers OTC without compromising the features, performance or support that we believe is vital to successfully integrating devices into our customers’ lives. To learn more, please visit https://www.eargo.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements, including, but not limited to, statements regarding the launch and differentiation of Eargo products and Eargo’s ability to support its customers; Eargo’s ability to address the objectives of the OTC hearing aid category and expand access to hearing care; Eargo’s strategy and innovation priorities; and the availability of health plan coverage for Eargo products. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results and events to differ materially from those anticipated, including, but not limited to, risks, uncertainties and assumptions related to: Eargo’s expectations regarding its omni-channel business, including partnerships with retailers, resellers and other distributors (whether brick and mortar or online); the extent to which Eargo may be able to validate and establish processes to support the submission of claims for reimbursement from third-party payors or to otherwise establish relationships with health plans, benefits managers, and managed care providers, and its ability to maintain or increase insurance coverage of Eargo hearing aids; the timing or results of ongoing claims audits by third-party payors; estimates of Eargo’s future capital needs and ability to raise capital on favorable terms, if at all, including the timing of future capital requirements and the terms or timing of any future financings; the effects, timing and costs of Eargo’s cost reduction plans; the impact of the regulatory landscape for hearing aid devices on Eargo’s business and results of operations; Eargo’s expectations concerning additional orders by existing customers; Eargo’s expectations regarding the potential market size and size of the potential consumer populations for its products and any future products, including insurance coverage of Eargo hearing aids; Eargo’s ability to release new hearing aids and the anticipated features of any such hearing aids; the performance, differentiation and attractiveness to consumers of Eargo’s products; developments and projections relating to Eargo’s competitors and industry, including competing products; Eargo’s ability to maintain its competitive technological advantages against new entrants in the industry; the pricing of Eargo’s hearing aids; Eargo’s expectations regarding the ability to make certain claims related to the performance of Eargo hearing aids relative to competitive products; Eargo’s expectations with regard to changes in the regulatory landscape for hearing aid devices and related opportunities, including the implementation and effects of the new over-the-counter hearing aid regulatory framework; and Eargo’s expectations regarding macroeconomic conditions, including but not limited to the impact of COVID-19, inflationary trends, uncertainty or volatility in the market (including recent and potential disruption in the banking system and financial markets and geopolitical events (such as the conflict in Ukraine and tensions across the Taiwan Strait)) on Eargo’s business and results of operations. These and other risks are described in greater detail in the sections titled “Risk Factors” contained in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in our other filings with the Securities and Exchange Commission. Any forward-looking statements in this press release are made pursuant to the Private Securities Litigation Reform Act of 1995, as amended, are based on current expectations, forecasts and assumptions, and speak only as of the date of this press release. Except as required by law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact
pr@eargo.com

Investor Contact
Mark Thorpe
Chief Financial Officer
ir@eargo.com

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¹ Blackwell DL, Lucas JW, Clarke TC. National Center for Health Statistics. Vital Health Stat 10(260). 2014. See also https://www.nidcd.nih.gov/health/age-related-hearing-loss
² Simpson AN, Matthews LJ, Cassarly C, Dubno JR. Time from hearing-aid candidacy to hearing-aid adoption: a longitudinal cohort study. Ear hear. 2019; 40(3):468-476. doi:10.1097/AUD..0000000000000641
³ Inga Franks & Barbra H. B. Timmer (2023) Reasons for the non-use of hearing aids: perspectives of non-users, past users, and family members, International Journal of Audiology, DOI: 10.1080/14992027.2023.2270703
⁴ Chan S, Hixon B, et al. Rurality and determinants of hearing healthcare in adult hearing aid recipients. Laryngoscope. 2017; 127(10):2362-2367.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/29ab859e-6207-46c6-a67f-87afd8459409

https://www.globenewswire.com/NewsRoom/AttachmentNg/075ace9f-8905-4ad0-b54b-d8578492c078

FAQ

What are the new over-the-counter (OTC) hearing wellness devices launched by Eargo, Inc.?

Eargo, Inc. has launched two new over-the-counter (OTC) hearing wellness devices, Eargo SE and LINK by Eargo.

What are the key highlights of Eargo SE?

Eargo SE is a streamlined, self-fitting OTC device focused on Eargo's signature essentials, with a new ear tip design, companion app, and pocketable charger.

What are the key highlights of LINK by Eargo?

LINK by Eargo is a new form factor for the brand, introducing an earbud-style OTC hearing aid that remains true to Eargo's key hallmarks of discreet design and innovative technology.

Where can Eargo's complete portfolio of over-the-counter hearing aid devices be purchased?

Eargo's complete portfolio of over-the-counter hearing aid devices can be purchased online at Eargo.com, via Personal Hearing Guides, and in select retail partner stores.

What are the retail partner stores where Eargo's over-the-counter hearing aid devices are available?

Eargo's over-the-counter hearing aid devices are available in select retail partner stores including Best Buy, Target, Victra, and on Amazon.

Does Eargo accept hearing aid insurance benefits?

Individuals with hearing aid insurance benefits may be able to use their benefits toward the purchase of Eargo. Eargo accepts all major health plans, subject to verification of benefits, and is in-network with BCBS.