Myomo Inc (MYO) Q1 2024 Earnings Call Transcript Highlights: Navigating Growth Amid Financial ...

GuruFocus Research
4 min read

In This Article:

  • Revenue: $3.8 million, up 9% from Q1 2023.

  • Gross Margin: 61.2%, down from 67% in Q1 2023.

  • Net Loss: $3.8 million, or $0.10 per share.

  • Operating Loss: $3.9 million, increased from $2.7 million in Q1 2023.

  • Backlog: Record 275 units, up 56% year-over-year.

  • Patient Pipeline: Increased to 1,112 candidates, up 30% from a year ago.

  • Cash Position: $11 million in cash, cash equivalents, and short-term investments.

  • Adjusted EBITDA: Negative $3.5 million, compared to negative $2.5 million in Q1 2023.

  • Financial Guidance: Projected Q2 revenue over $5 million; full year 2024 revenue target of $28 million to $30 million.

Release Date: May 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Myomo Inc (MYO) reported a 9% increase in revenue over Q1 2023, reaching $3.8 million.

  • The company has a record backlog of 275 units, up 56% year-over-year, indicating strong future revenue potential.

  • Myomo Inc (MYO) added a record 493 patients to the pipeline in Q1, showing a 30% increase from the previous year.

  • The reclassification of MyoPro into the brace category by CMS has significantly expanded market access, allowing the company to serve Medicare Part B patients.

  • Myomo Inc (MYO) is expanding its workforce to increase clinical reimbursement and manufacturing capacity, aiming to double MyoPro output in the second half of the year.

Negative Points

  • The company experienced lower than expected revenue due to delayed payments and lower payments from CMS on pre-April claims.

  • Gross margin decreased to 61.2% from 67% in the previous year, driven by lower ASP and increased costs.

  • Operating expenses increased by 24% due to higher headcount and other costs, contributing to a larger operating loss of $3.9 million compared to $2.7 million in Q1 2023.

  • Net loss widened to $3.8 million in Q1 2024 from $2.6 million in Q1 2023, reflecting increased expenses ahead of expected revenue growth.

  • There is uncertainty regarding the timely collection of payments from Medicare, which could affect financial performance in upcoming quarters.

Q & A Highlights

Q: How should we think about the pipeline growth number going forward? Is it sustainable? A: Paul Gudonis, CEO of Myomo, responded that they expect the pipeline growth number to increase as they add more capacity by hiring intake coordinators and more people in their reimbursement and clinical staff. This increase is due to now being able to engage with Part B patients, who they previously had to turn away.

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