Myomo Reports First Quarter 2024 Financial Results
Myomo, a wearable medical robotics company, reported financial results for Q1 2024. Highlights include $3.8 million in revenue, up 9% from Q1 2023, a record 275 patients in backlog, and 493 MyoPro candidates added to the pipeline. Gross margin decreased to 61.2%, and operating expenses increased by 24%. Net loss was $3.8 million. The company has a cash position of $11.0 million and expects to generate $28-30 million in revenue in 2024.
Record 275 patients in backlog, with 180 authorizations and orders, up 48% from the prior year
Revenue of $3.8 million, a 9% increase from the prior year
Record 493 MyoPro candidates added to the pipeline in Q1
First payments for MyoPros delivered under the new Medicare fee schedule received
Gross margin decreased to 61.2%
Operating expenses increased by 24%
Operating loss of $3.9 million in Q1 2024
Net loss of $3.8 million in Q1 2024
Insights
The reported increase in revenue by 9% to $3.8 million for Myomo aligns with positive growth trajectories observed in the medical robotics sector. However, this growth is tempered by a lower average selling price (ASP), which suggests pricing pressure possibly related to recent Medicare reimbursement adjustments. The gross margin decline from 67.0% to 61.2% is significant, as it points to escalating costs, such as material expenses, which could affect profitability if not managed effectively in upcoming quarters.
Although the backlog growth of 56% indicates robust demand, the operating loss has widened year-over-year, reflecting increased R&D and advertising expenditures. The emphasis on R&D spending is beneficial for long-term innovation but may strain short-term financials. For retail investors, the balance between growth and profitability will be a key aspect to monitor.
Myomo's strategic focus on patients with a history of payment from traditional insurers and the record number of MyoPro candidates added to the pipeline could be indicative of an expanding market presence. A 30% year-over-year growth in the patient pipeline is promising. However, investors should consider the costs associated with this growth, notably the 28% increase in cost of revenue and a 24% spike in operating expenses.
The cash position and liquidity to cover the next 12 months provide some stability, but the company’s forecast of reaching operating cash flow breakeven by Q4 2024 should be closely scrutinized against subsequent quarterly performances.
Record 275 patients in backlog, includes 180 authorizations and orders in Q1, up
Record 493 MyoPro candidates added to the pipeline in Q1
Revenue of
Conference call begins at 4:30 p.m. Eastern time today
Financial and operational highlights for the first quarter of 2024 include the following (all comparisons are with the first quarter of 2023):
-
Total and product revenue was
, up$3.8 million 9% ; -
Revenue units were 91, up
14% ; -
MyoPro® orders and insurance authorizations were received for 180 units, up
48% ; -
Backlog, which represents insurance authorizations and orders received but not yet converted to revenue, was 275 units, up
56% , and includes 83 Medicare Part B patients; - First payments for MyoPros delivered under the new Medicare fee schedule have been received;
-
A record 493 new candidates were added to the MyoPro patient pipeline, up
12% ; -
There were 1,112 MyoPro candidates in the patient pipeline as of March 31, 2024, up
30% ; -
Gross margin was
61.2% , down 580 basis points; and, -
Cost per pipeline add was
, up$1,597 1% .
Management Commentary
“First quarter revenue reflects our focus on patients with traditional insurers with a history of payment, while temporarily accepting lower pricing from CMS' billing contractors known as the DME MACs. We expect growth to increase during the second quarter as we ship MyoPros to Medicare Part B beneficiaries following the publication of reimbursement fees by the Centers for Medicare and Medicare Services (“CMS”) on April 1, 2024," said Paul R. Gudonis, Myomo's chairman and chief executive officer. “Our record backlog entering the second quarter includes 83 Medicare Part B patients, which will contribute to our expected revenue growth in the quarter."
Financial Results
|
For the Three Months
|
|
Period-
|
|
||||||||
|
2024 |
|
2023 |
|
$ |
|
% |
|
||||
Product revenue |
$ |
3,754,389 |
|
$ |
3,446,708 |
|
$ |
307,681 |
|
|
9 |
% |
Cost of revenue |
|
1,455,345 |
|
|
1,139,074 |
|
|
316,271 |
|
|
28 |
% |
Gross profit |
$ |
2,299,044 |
|
$ |
2,307,634 |
|
$ |
(8,590 |
) |
|
(0 |
)% |
Gross margin % |
|
61.2 |
% |
|
67.0 |
% |
|
|
|
-5.8 |
% |
Revenue for the first quarter of 2024 was
Gross margin for the first quarter of 2024 was
Operating expenses for the first quarter of 2024 were
Operating loss for the first quarter of 2024 was
Adjusted EBITDA for the first quarter of 2024 was
Operations Update
The MyoPro pipeline included 1,112 patients as of March 31, 2024, compared with 855 patients as of March 31, 2023, an increase of
Backlog was a record 275 units as of March 31, 2024, up
Centers for Medicare & Medicaid Services Update
On April 1, 2024, final fees were published by CMS for its Healthcare Common Procedure Coding System ("HCSPS") codes L8701 and L8702 of
Cash Position
Cash, cash equivalents and short-term investments as of March 31, 2024 were
Business Outlook
"Given our backlog, we're in a position to generate more than
Conference Call and Webcast
Myomo will hold a conference call today at 4:30 p.m. Eastern time to discuss these results and answer questions. Participants are encouraged to pre-register for the call at this link. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time including up to and after the start of the call. Those unable to pre-register may participate by dialing 844-707-6932 (
A replay of the webcast will be available beginning approximately one hour after the completion of the live conference call at http://ir.myomo.com/. A dial-in replay of the call will be available until May 23, 2024 at 877-344-7529 (
Non-GAAP Financial Measures
Myomo is providing certain financial information that has not been prepared in accordance with generally accepted accounting principles in
About Myomo
Myomo, Inc. is a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper-limb orthosis designed to support the arm and restore function to the weakened or paralyzed arms of certain patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury, ALS or other neuromuscular disease or injury. It is currently the only marketed device in the
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, including expectations for second quarter and full year 2024 revenue, expectations regarding materiality of revenues from Medicare Part B patients and expectations for its liquidity and achieving operating cash flow breakeven on a quarterly basis, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.
These factors include, among other things:
- our ability to obtain sufficient reimbursement from third-party payers for our products;
- our ability to navigate factors both within and outside our control to grow revenues sufficiently to achieve operating cash flow breakeven on a quarterly basis;
- our revenue concentration with a particular insurance payer as a result of focusing our efforts on patients with insurers who have previously reimbursed for the MyoPro;
- our ability to continue normal operations and patient interactions without supply chain disruption in order to deliver and fit our custom-fabricated devices;
- our marketing and commercialization efforts;
- our dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven;
- our ability to obtain and maintain our strategic collaborations and to realize the intended results of such collaborations;
- our ability to effectively execute our business plan and scale up our operations;
- our expectations as to our product development programs, including improving our existing products and developing new products;
- our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our products;
- our expectations as to our clinical research program and clinical results;
- our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others;
- our ability to gain and maintain regulatory approvals;
- our ability to compete and succeed in a highly competitive and evolving industry; and
- general market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients.
More information about these and other factors that potentially could affect our financial results is included in Myomo’s filings with the Securities and Exchange Commission, including those contained in the risk factors section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Although the forward-looking statements in this release of financial information are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material or adverse. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
(Tables to follow)
MYOMO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||
|
|
For the Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Revenue |
|
|
|
|
|
|
||
Product revenue |
|
$ |
3,754,389 |
|
|
$ |
3,446,708 |
|
|
|
|
|
|
|
|
||
Cost of revenue |
|
|
1,455,345 |
|
|
|
1,139,074 |
|
Gross profit |
|
|
2,299,044 |
|
|
|
2,307,634 |
|
Operating expenses: |
|
|
|
|
|
|
||
Research and development |
|
|
956,215 |
|
|
|
476,991 |
|
Selling, clinical and marketing |
|
|
2,361,845 |
|
|
|
2,030,551 |
|
General and administrative |
|
|
2,869,751 |
|
|
|
2,471,057 |
|
|
|
|
6,187,811 |
|
|
|
4,978,599 |
|
|
|
|
|
|
|
|
||
Loss from operations |
|
|
(3,888,767 |
) |
|
|
(2,670,965 |
) |
|
|
|
|
|
|
|
||
Other (income) expense, net |
|
|
|
|
|
|
||
Interest income, net |
|
|
(135,293 |
) |
|
|
(86,314 |
) |
Other expense, net |
|
|
— |
|
|
|
31 |
|
Loss on equity investment |
|
|
— |
|
|
|
17,202 |
|
|
|
|
(135,293 |
) |
|
|
(69,081 |
) |
Loss before income taxes |
|
|
(3,753,474 |
) |
|
|
(2,601,884 |
) |
Income tax expense |
|
|
82,158 |
|
|
|
42,411 |
|
Net loss |
|
$ |
(3,835,632 |
) |
|
$ |
(2,644,295 |
) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
||
Basic and diluted |
|
|
36,752,597 |
|
|
|
24,196,732 |
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
||
Basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.11 |
) |
MYOMO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
5,434,726 |
|
|
$ |
6,871,306 |
|
Short-term investments |
|
|
5,523,664 |
|
|
|
1,994,662 |
|
Accounts receivable, net |
|
|
1,683,414 |
|
|
|
2,382,658 |
|
Inventories, net |
|
|
2,386,497 |
|
|
|
1,803,507 |
|
Prepaid expenses and other current assets |
|
|
676,787 |
|
|
|
598,850 |
|
Total Current Assets |
|
|
15,705,088 |
|
|
|
13,650,983 |
|
Operating lease assets with right of use |
|
|
604,897 |
|
|
|
663,594 |
|
Equipment, net |
|
|
205,917 |
|
|
|
175,794 |
|
Other assets |
|
|
4,955 |
|
|
|
91,237 |
|
Total Assets |
|
$ |
16,520,857 |
|
|
$ |
14,581,568 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
|
4,963,707 |
|
|
|
4,885,944 |
|
Current operating lease liability |
|
|
421,514 |
|
|
|
486,143 |
|
Income taxes payable |
|
|
171,280 |
|
|
|
96,461 |
|
Deferred revenue |
|
|
— |
|
|
|
8,510 |
|
Total Current Liabilities |
|
|
5,556,501 |
|
|
|
5,477,058 |
|
Non-current operating lease liability |
|
|
64,599 |
|
|
|
115,160 |
|
Total Liabilities |
|
|
5,621,100 |
|
|
|
5,592,218 |
|
Commitments and Contingencies |
|
|
— |
|
|
|
— |
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
2,881 |
|
|
|
2,715 |
|
Additional paid-in capital |
|
|
111,522,270 |
|
|
|
105,840,239 |
|
Accumulated other comprehensive income |
|
|
147,511 |
|
|
|
83,669 |
|
Accumulated deficit |
|
|
(100,766,441 |
) |
|
|
(96,930,809 |
) |
Treasury stock, at cost |
|
|
(6,464 |
) |
|
|
(6,464 |
) |
Total Stockholders’ Equity |
|
|
10,899,757 |
|
|
|
8,989,350 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
16,520,857 |
|
|
$ |
14,581,568 |
|
MYOMO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
For the Three Months Ended March 31, |
|
2024 |
|
|
2023 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net loss |
|
$ |
(3,835,632 |
) |
|
$ |
(2,644,295 |
) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
||
Depreciation |
|
|
29,685 |
|
|
|
48,632 |
|
Stock-based compensation |
|
|
320,288 |
|
|
|
171,027 |
|
Credit losses |
|
|
— |
|
|
|
13,000 |
|
Loss on equity investment |
|
|
— |
|
|
|
17,202 |
|
Amortization of right-of-use assets |
|
|
58,658 |
|
|
|
101,829 |
|
Other non-cash charges |
|
|
63,930 |
|
|
|
49,012 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
718,676 |
|
|
|
340,533 |
|
Inventories |
|
|
(597,087 |
) |
|
|
(157,148 |
) |
Prepaid expenses and other current assets |
|
|
6,897 |
|
|
|
(53,577 |
) |
Accounts payable and accrued expenses |
|
|
87,041 |
|
|
|
386,880 |
|
Operating lease liabilities |
|
|
(115,191 |
) |
|
|
(109,109 |
) |
Deferred revenue |
|
|
(11,181 |
) |
|
|
(20,093 |
) |
Net cash used in operating activities |
|
|
(3,245,564 |
) |
|
|
(1,816,690 |
) |
CASH USED IN INVESTING ACTIVITIES |
|
|
(3,542,565 |
) |
|
|
(45,085 |
) |
CASH PROVIDED BY FINANCING ACTIVITIES |
|
|
5,361,909 |
|
|
|
5,772,057 |
|
Effect of foreign exchange rate changes on cash |
|
|
(10,360 |
) |
|
|
7,311 |
|
|
|
|
|
|
|
|
||
Net increase (decrease) in cash and cash equivalents |
|
|
(1,436,580 |
) |
|
|
3,917,593 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of period |
|
|
6,871,306 |
|
|
|
5,345,967 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
5,434,726 |
|
|
$ |
9,263,560 |
|
MYOMO, INC. RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (unaudited) |
||||||||
|
|
For the Three Months
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
GAAP net loss |
|
$ |
(3,835,632 |
) |
|
$ |
(2,644,295 |
) |
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
|
|
||
Interest income, net |
|
|
(135,293 |
) |
|
|
(86,314 |
) |
Depreciation expense |
|
|
29,685 |
|
|
|
48,632 |
|
Stock-based compensation |
|
|
320,288 |
|
|
|
171,027 |
|
Loss on investment in minority interest |
|
|
— |
|
|
|
17,202 |
|
Income tax expense |
|
|
82,158 |
|
|
|
42,411 |
|
Adjusted EBITDA |
|
$ |
(3,538,794 |
) |
|
$ |
(2,451,337 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508144403/en/
For Myomo:
ir@myomo.com
Investor Relations:
Kim Sutton Golodetz
LHA Investor Relations
kgolodetz@lhai.com
212-838-3777
Source: Myomo, Inc.
FAQ
<p>What was Myomo's revenue in Q1 2024?</p>
Myomo reported a revenue of $3.8 million in Q1 2024, a 9% increase from the prior year.
<p>How many MyoPro candidates were added to the pipeline in Q1?</p>
A record of 493 MyoPro candidates were added to the pipeline in Q1.
<p>What was the gross margin percentage in Q1 2024?</p>
The gross margin was 61.2% in Q1 2024, down from 67.0% in Q1 2023.
<p>What was Myomo's cash position as of March 31, 2024?</p>
Myomo's cash, cash equivalents, and short-term investments were $11.0 million as of March 31, 2024.