Myomo Inc (MYO) Q2 2024 Earnings Call Highlights: Record Revenue Growth and Strategic Expansion ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $7.5 million for Q2 2024, up 77% year-over-year.

  • Product Revenue Growth: 77% increase over Q2 2023.

  • Average Selling Price (ASP): Approximately $47,500, up 9% year-over-year.

  • Gross Margin: 70.8% for Q2 2024.

  • Operating Expenses: $6.4 million, a 20% increase from Q2 2023.

  • Operating Loss: $1.1 million, unchanged from Q2 2023.

  • Net Loss: $1.1 million or $0.03 per share for Q2 2024.

  • Adjusted EBITDA: Negative $1.2 million for Q2 2024.

  • Cash Position: $9.0 million as of June 30, 2024.

  • Pipeline Additions: 550 additions in Q2 2024, up 35% year-over-year.

  • Backlog: Record 282 patients, up 58% from Q2 2023.

  • International Revenue: Over $1 million, primarily from Germany.

  • Guidance for Q3 2024: Expected revenue between $8.0 million to $8.5 million.

Release Date: August 06, 2024

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

Positive Points

  • Myomo Inc (MYO) reported a 77% increase in product revenues over the second quarter of 2023, driven by higher unit sales and increased average selling prices.

  • The company achieved a record number of 550 additions to its patient pipeline, with a total of 1,179 patients in the pipeline, marking a 22% year-over-year increase.

  • Gross margin for the second quarter of 2024 was 70.8%, indicating strong profitability from product sales.

  • Myomo Inc (MYO) successfully expanded its manufacturing capacity, producing 80 MyoPros in July, ahead of its target for the year.

  • The company has secured a $4 million line of credit with Silicon Valley Bank, providing additional financial flexibility.

Negative Points

  • Reimbursement from Medicare Advantage plans has been challenging, with a higher proportion of initial claims being denied compared to previous quarters.

  • Operating expenses increased by 20% year-over-year, driven by higher headcount and increased investment in clinical and reimbursement capacity.

  • Net loss for the second quarter of 2024 was $1.1 million, slightly higher than the $1 million loss in the same quarter of 2023.

  • The company faces potential challenges in advertising due to increased competition from political and holiday advertising in the latter part of the year.

  • Despite strong revenue growth, Myomo Inc (MYO) reported a negative adjusted EBITDA of $1.2 million for the second quarter of 2024.

Q & A Highlights

Q: Can you speak to the confidence around increasing manufacturing capacity and when you expect to need a larger footprint to support growth? A: Paul Gudonis, CEO: We've rapidly expanded our monthly manufacturing capacity and are finalizing plans to move to a larger facility in the Boston area by Q4. This will allow us to hire more people and expand capacity beyond 80 units per month, with potential for further expansion next year, possibly adding a second shift.

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