• Revenue: Reported at $3.8 million, up 9% year-over-year, falling short of the estimated $4.07 million.

• Net Loss: Totaled $3.8 million, or -$0.10 per share, aligning with the estimated earnings per share of -$0.10.

• Gross Margin: Decreased to 61.2%, down from 67.0% the previous year, reflecting a drop of 580 basis points.

• Operating Loss: Widened to $3.9 million from $2.7 million in the prior year, indicating increased operational costs.

• Backlog: Reached a record 275 units, up 56% year-over-year, including significant contributions from Medicare Part B patients.

• Patient Pipeline: Expanded by 30% to 1,112 candidates, with a notable addition of 493 new candidates during the quarter.

• Cash Position: Ended the quarter with $11.0 million in cash and equivalents, with a net cash used in operations of $3.2 million.

• Warning! GuruFocus has detected 1 Warning Sign with MYO.

On May 8, 2024, Myomo Inc (MYO), a leader in wearable medical robotics, disclosed its financial outcomes for the first quarter of 2024 through its 8-K filing. The company, known for its innovative MyoPro product line, reported a revenue of $3.8 million, marking a 9% increase year-over-year but falling short of the anticipated $4.07 million. Net loss was reported at $3.8 million, aligning with analyst expectations of a $0.10 loss per share.

Company Overview

Myomo Inc is at the forefront of wearable medical robotics, providing enhanced functionality for individuals suffering from neurological disorders and upper-limb paralysis. Their flagship product, MyoPro, is a myoelectric upper limb orthosis, approved by the FDA as a Class II medical device. It is designed to aid arm and hand function, enabling patients to perform daily activities and potentially return to work.

Operational Highlights and Financial Performance

The first quarter saw significant operational progress with a record 275 patients in the backlog, including 180 new orders and insurance authorizations, reflecting a 48% increase from the previous year. The addition of 493 new MyoPro candidates to the pipeline, a 12% increase, indicates robust future demand.

Despite these operational successes, the company faced challenges that impacted financial metrics. The gross margin declined to 61.2% from 67.0% in the previous year, primarily due to a lower average selling price influenced by underpayments from CMS' billing contractors and increased costs. Operating expenses surged by 24% to $6.2 million, driven by heightened R&D activities and expansion in clinical and human resources functions.

Strategic and Financial Outlook

Looking ahead, Myomo is optimistic about its growth trajectory, especially with the recent CMS updates on reimbursement fees which are expected to positively impact future revenues. The company anticipates generating over $5 million in product revenue in Q2 2024 and forecasts annual revenues between $28 million and $30 million. Achieving cash flow breakeven by Q4 2024 remains a target, contingent on meeting operational and market conditions.