Myomo Reports Preliminary Second Quarter 2024 Revenues and Operating Metrics
Myomo, a wearable medical robotics company, announced preliminary revenues and operating metrics for Q2 2024. The company expects record quarterly revenues between $7.2 million and $7.4 million, a 92% to 97% increase from Q1 2024, and above the previous expectation of at least $5 million. Revenue units are anticipated to rise by 70% to 76% from Q1 2024. Payments from CMS and Medicare Advantage plans were faster than expected, aiding in the achievement of these figures. The company also recorded significant growth in pipeline additions, authorizations, and orders, each reaching record highs of approximately 550 and 210, respectively. Full financial results and future expectations will be disclosed in the second week of August 2024.
- Expected record quarterly revenues of $7.2 million to $7.4 million, a 92% to 97% increase sequentially.
- Revenue units expected to increase by 70% to 76% compared to Q1 2024.
- Faster-than-expected payments from CMS and Medicare Advantage plans.
- Record high pipeline additions, authorizations, and orders.
- None.
Insights
The preliminary revenue figures Myomo is reporting for Q2 2024 are quite remarkable. With revenues expected to reach between
The significant increase in revenue units—between 155 and 160 compared to the 91 units in Q1 2024—indicates that the company is scaling its operations effectively. An increase in CMS and Medicare Advantage plan payments further boosts the financial stability of the company, ensuring a more predictable revenue stream.
For investors, these metrics are hopeful signs of the company's upward trajectory. However, while the growth is impressive, attention should be paid to whether this momentum can be sustained in the subsequent quarters.
Myomo's record pipeline additions and authorizations indicate not only strong market demand but also an effective operational capacity to fulfill this demand. The reported 550 pipeline additions and 210 orders are noteworthy achievements. This suggests that Myomo's products are resonating well with its target audience, which includes individuals suffering from neurological disorders and upper-limb paralysis.
The statement about achieving hiring objectives and ramping up capacity highlights the company's strategic efforts to align operational capabilities with market demands. Nearly 150 employees by the end of Q2 2024 signifies a well-planned scaling of workforce to support growth.
The rapid payments from CMS could be an indicator of improved regulatory and reimbursement landscapes, making it easier and faster for patients to gain access to Myomo’s medical devices. This could be a significant competitive advantage, improving cash flow and reducing the time from order to revenue recognition.
From a medical perspective, the record number of patients evaluated and the increase in orders and authorizations suggest that Myomo's products are meeting a critical need in the market. The faster-than-anticipated payments from CMS and certain Medicare Advantage plans may also suggest greater acceptance and integration of Myomo’s products within medical protocols, which is positive not just for revenue but for patient outcomes.
The ability to add a high number of patients to their pipeline indicates efficient clinical operations and possibly robust clinical evidence supporting the efficacy of their products. This can lead to higher trust and adoption rates among both patients and healthcare providers.
Looking ahead, it will be important for Myomo to continue building on this momentum while ensuring that the increased production does not compromise product quality or patient outcomes. Long-term success will hinge on sustained innovation and maintaining high standards of patient care.
Expects record quarterly revenues of
Generates record pipeline additions, and authorizations and orders
Revenues for the second quarter of 2024 are expected to be
Pipeline additions, and authorizations and orders during the second quarter are expected to be approximately 550 and 210, respectively, each a record high.
“Payments from CMS were much faster than we had anticipated at the beginning of the quarter,” said Paul R. Gudonis, Myomo’s chairman and chief executive officer. “In addition, we expect to substantially meet our hiring objective for the first half of the year, as we exited the second quarter with nearly 150 employees. The added capacity in our clinical, reimbursement and manufacturing operations enabled us to evaluate a record number of patients and add them to our pipeline, generate a record number of authorizations and orders, and manufacture and deliver a record number of MyoPros.”
“With an established claims payment history from Medicare Part B beneficiaries, as of July 1, 2024, we began recording revenue for these patients upon product delivery,” added David Henry, Myomo’s chief financial officer.
Myomo expects to report full financial results and operating metrics for the three and six months ended June 30, 2024, as well as its expectations for third quarter and full year 2024 financial results, during the second week of August 2024.
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 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 2024 revenue and revenue units, expectations for pipeline additions and authorizations and orders, expectations for headcount and its expectation to begin recording revenue for Medicare Part B patients at delivery effective July 1, 2024, 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.
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For Myomo:
ir@myomo.com
Investor Relations:
Kim Sutton Golodetz
LHA Investor Relations
kgolodetz@lhai.com
212-838-3777
Source: Myomo, Inc.
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