Myomo(US:MYO)2025-05-07 20:10Myomo First Quarter 2025 Financial and Operating Results Financial and Operating Highlights Myomo reported strong Q1 revenue growth of 162% to $9.8 million, a record 700 new patient pipeline additions, and expanded its CPO network Q1 2025 Key Metrics vs. Q1 2024 | Metric | Q1 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $9.8 million | +162% | | Revenue Units | 182 | +100% | | Orders and Authorizations | 213 units | +18% | | New Pipeline Candidates | 700 | +42% | | Total Patient Pipeline | 1,482 | +33% | | Backlog | 249 units | -9% | | Gross Margin | 67.2% | +600 bps | | Cost Per Pipeline Add | $2,300 | +31% | - Medicare Part B patients constituted a significant portion of the business, accounting for 59% of Q1 2025 revenue4 - The company has completed initial MyoPro® training for over 300 certified prosthetist orthotists (CPOs) as of March 31, 2025, expanding its clinical network4 Management Commentary Management cited operational challenges from Medicare Advantage plans and social media algorithms but noted a rebound in lead flow and pipeline additions - Operational challenges in Q1 were attributed to utilization management by Medicare Advantage plans and social media algorithm changes impacting lead flow2 - Lead flow and pipeline additions rebounded in March and April, suggesting the negative impacts from early in the quarter may be temporary2 Detailed Financial Results Revenue surged 162% to $9.8 million and gross margin improved to 67.2%, while the company narrowed its operating and net losses Q1 2025 vs Q1 2024 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Product Revenue | $9.8M | $3.8M | +162% | | Gross Profit | $6.6M | $2.3M | +187% | | Gross Margin | 67.2% | 61.2% | +6.0 bps | | Operating Expenses | $10.1M | $6.2M | +64% | | Operating Loss | ($3.5M) | ($3.9M) | -10% | | Net Loss | ($3.5M) | ($3.8M) | -8% | | Net Loss per Share | ($0.08) | ($0.10) | -20% | | Adjusted EBITDA | ($2.8M) | ($3.5M) | -20% | - The increase in revenue was driven by a higher number of units (182, up 100%) and a higher Average Selling Price (ASP) of approximately $54,000 (up 31%)5 - Operating expenses rose primarily due to higher payroll from increased headcount, increased R&D spending, and a 104% increase in advertising expenditures to $1.6 million7 Operations Update The patient pipeline grew 33% year-over-year with a record 700 new additions, while the order backlog decreased by 9% Operational Metrics (as of March 31) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Patient Pipeline | 1,482 | 1,112 | +33% | | New Pipeline Adds (Q1) | 700 | 493 (implied) | +42% | | Authorizations & Orders (Q1) | 213 | 181 (implied) | +18% | | Backlog | 249 | 274 (implied) | -9% | - The decrease in backlog was attributed to a higher velocity of revenue, with 45% of Q1 revenue being generated from authorizations and orders received within the same quarter510 Cash Position The company held $21.5 million in cash and equivalents at quarter-end, with cash used in operations improving to $2.7 million - Total cash, cash equivalents, and short-term investments were $21.5 million at the end of Q1 202511 - Cash used in operating activities for Q1 2025 was $2.7 million, compared to $3.2 million in Q1 202411 Business Outlook Myomo projects Q2 revenue of $9.0-$9.5 million and reaffirms full-year 2025 guidance of $50-$53 million Revenue Guidance | Period | Revenue Guidance | YoY Growth (Full Year) | | :--- | :--- | :--- | | Q2 2025 | $9.0M - $9.5M | N/A | | Full Year 2025 | $50M - $53M | 54% - 63% | - The company expects revenue growth to accelerate in the second half of 202513 Financial Statements This section provides the unaudited condensed consolidated financial statements and a reconciliation of GAAP Net Loss to Adjusted EBITDA Condensed Consolidated Statements of Operations The company reported Q1 2025 product revenue of $9.8 million, a gross profit of $6.6 million, and a net loss of $3.5 million Q1 2025 Statement of Operations Highlights (in millions, except per share data) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Product Revenue | $9.83 | $3.75 | | Gross Profit | $6.61 | $2.30 | | Loss from Operations | ($3.52) | ($3.89) | | Net Loss | ($3.47) | ($3.84) | | Net Loss Per Share | ($0.08) | ($0.10) | Condensed Consolidated Balance Sheets As of March 31, 2025, the company reported total assets of $40.9 million and total stockholders' equity of $21.7 million Balance Sheet Highlights (in millions) | Line Item | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $19.8 | $24.4 | | Total Current Assets | $31.1 | $32.8 | | Total Assets | $40.9 | $42.2 | | Total Liabilities | $19.2 | $17.5 | | Total Stockholders' Equity | $21.7 | $24.7 | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $2.7 million for the quarter, an improvement from the prior year Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($2.7) | ($3.2) | | Net Cash Used in Investing Activities | ($1.9) | ($3.5) | | Net Cash Provided by (Used in) Financing Activities | ($0.04) | $5.4 | | Net Change in Cash | ($4.6) | ($1.4) | Reconciliation of GAAP Net Loss to Adjusted EBITDA Adjusted EBITDA loss improved to $2.8 million for Q1 2025 from a loss of $3.5 million in the prior-year period Adjusted EBITDA Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Loss | ($3.47) | ($3.84) | | Adjustments | $0.65 | $0.30 | | Adjusted EBITDA | ($2.82) | ($3.54) |