MyoPro

Search documents
Myomo(MYO) - 2025 Q2 - Earnings Call Transcript
2025-08-11 21:30
Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $9.7 million, representing a 28% increase year-over-year, driven by a higher number of revenue units and an increase in average selling price (ASP) by 14% to approximately $54,200 [21][22] - Operating loss for Q2 2025 was $4.6 million, compared to an operating loss of $1.1 million in the prior year quarter [27] - Gross margin decreased to 62.7% from 70.8% in the prior year quarter, primarily due to higher material costs and overhead spending [25][26] Business Line Data and Key Metrics Changes - The company delivered 178 MyoPro revenue units in Q2 2025, up 13% year-over-year, with 91% of revenue recorded as shipment or delivery [21] - Medicare Part B patients represented 56% of revenue in Q2 2025, while Medicare Advantage revenue accounted for 20% of revenue, which was down slightly from the previous year [22][24] - The pipeline stood at 1,611 patients, a 37% increase year-over-year, with 816 patients added in Q2 2025, up 49% from the prior year quarter [23][24] Market Data and Key Metrics Changes - International revenue was $1.5 million in Q2 2025, representing 15% of total revenue and up 41% year-over-year, primarily from Germany [22] - The number of O and P orders doubled from Q1 to Q2 2025, indicating growth in that channel [15] Company Strategy and Development Direction - The company aims to achieve sustainable cash flow positive operations while expanding its MyoPro product line and improving conversion efficiency [6][19] - A shift in advertising strategy from social media to television is expected to improve lead quality and engagement [12][79] - The company is expanding its clinical referral program to increase education activities at rehab hospitals, which is anticipated to result in more high-quality patients entering the pipeline [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in converting leads to pipeline adds and the impact of Medicare Advantage plan behaviors on authorizations [16][18] - The company expects revenue growth in 2025 to be between 23% to 29%, reflecting the number of leads and pipeline adds year-to-date [20][34] - Management expressed confidence in the adjustments being made to improve results and emphasized the importance of Medicare Part B patients for growth [19][68] Other Important Information - The company undertook a headcount reduction impacting about 8% of its U.S. workforce to align operating expenses with revenue [12][13] - Cash burn for Q2 2025 was $10 million, with expectations of a normalized cash burn of approximately $4.9 million reflecting operational performance [30][31] Q&A Session Summary Question: Clarification on Q3 guidance and backlog conversions - Management noted an increase in fill units and a higher percentage of backlog, supporting the guidance of $9.5 to $10 million for Q3 [39][40] Question: Plans to accelerate O and P channel contributions - The company plans for significant growth in the O and P channel, with about 100 certified providers actively working to build a pipeline [44][46] Question: Advertising spend and cost per pipeline ad expectations - Advertising spending is expected to remain flat in Q3, with a potential decrease in Q4, while cost per pipeline ad is anticipated to decrease in Q3 compared to Q2 [49][50] Question: Challenges with Medicare Advantage authorizations - Management indicated that the authorization rate for Medicare Advantage patients is a significant headwind, with ongoing appeals processes affecting conversion rates [62][63] Question: Quality of leads from Facebook and future expectations - The company experienced lower quality leads from Facebook due to new privacy policies, leading to a shift in advertising strategy towards television [78][79] Question: Supply side costs and tariffs impact - Higher material costs were attributed to increased usage rather than pricing, with minimal impact from tariffs expected on gross margin [74][75] Question: Confidence in metrics and operational adjustments - Management expressed encouragement from July results and confidence in the plans put in place to address identified issues [68][69]
Myomo (MYO) 2025 Investor Day Transcript
2025-06-18 15:00
Myomo (MYO) 2025 Investor Day Summary Company Overview - Myomo is focused on developing assistive technology for individuals with paralysis, particularly through their product, MyoPro, which is a myoelectric orthosis designed to help users regain movement in paralyzed arms [7][8][10]. Key Industry Insights - The company operates in the medical device industry, specifically within the orthotics and prosthetics sector, addressing a significant unmet need for patients with chronic arm paralysis [7][8]. - Myomo has established a direct provider business model, which allows them to bring their products directly to patients, enhancing accessibility and support [8][9]. Financial Performance and Goals - Myomo aims to achieve $100 million in revenue by 2028, building on a decade of consistent revenue growth [10]. - The company reported a gross margin of 70%, with potential for improvement as they scale operations [8]. Market Position and Strategy - Myomo has a first-mover advantage in the myoelectric orthosis market, particularly after receiving CMS reimbursement, which opens the market to Medicare-age patients in the U.S. [8][9]. - The revenue breakdown for Q1 indicates that 79% of revenue came from direct billing, 3% from the VA, and 13% from international sales, with plans to grow the O&P clinical channel [9][10]. Marketing and Lead Generation - The marketing strategy includes TV advertising, digital marketing, and clinical referrals, with a focus on reducing the cost per pipeline acquisition [31][32]. - The company utilizes a call center in Fort Worth, Texas, to handle inbound and outbound calls, aiming to efficiently convert leads into patients [56][60]. Patient Journey and Fulfillment Process - The patient journey begins with lead generation, followed by telehealth screenings to assess eligibility, and then moves to the fulfillment stage where custom devices are fabricated [19][25][94]. - The fulfillment process is complex, requiring precise measurements and customization for each patient, which is critical for the effectiveness of the MyoPro device [97][98]. Challenges and Considerations - The company faces challenges related to patient eligibility, as not all patients qualify for the MyoPro due to varying clinical conditions [69][70]. - There is a need for continuous education and awareness among patients, therapists, and physicians to ensure proper understanding and utilization of the MyoPro [22][23]. Leadership and Team Structure - The leadership team includes experienced professionals from various backgrounds, emphasizing a commitment to patient care and innovative solutions [11][12]. - The company is structured to allow for efficient scaling of operations, particularly in the intake and telehealth screening processes [63][66]. Conclusion - Myomo is well-positioned to capitalize on the growing demand for assistive technologies for individuals with paralysis, with a clear strategy for growth and a strong focus on patient outcomes and satisfaction [7][10].
Myomo(MYO) - 2025 Q1 - Earnings Call Transcript
2025-05-07 21:32
Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $9,800,000, representing a 162% increase year over year, driven by a higher number of revenue units and an increased average selling price (ASP) [20][21] - The company delivered 182 MyoPro revenue units in Q1, up 100% from the previous year, with ASP increasing by approximately 31% to around $54,000 [11][21] - Gross margin for Q1 2025 was 67.2%, compared to 61.2% in the prior year, primarily due to a higher ASP and better fixed cost absorption [26] - Operating loss for Q1 2025 was $3,500,000, a 9% improvement from a loss of $3,900,000 in Q1 2024 [27][28] Business Line Data and Key Metrics Changes - The O and P revenue was $475,000 in Q1, up 87% year over year, but down sequentially due to seasonality [14] - The international business, primarily in Germany, generated over $1,300,000 in revenue, representing a 42% year-over-year increase [11][22] Market Data and Key Metrics Changes - Medicare Part B patients accounted for 60% of total revenue in Q1, up from 57% in the previous quarter, indicating strong growth in this segment [11][21] - Medicare Advantage revenue represented 17% of Q1 revenue, reflecting an 18% year-over-year increase, although growth is lagging due to high denial rates [21][22] Company Strategy and Development Direction - The company is focused on continuous innovation, having launched the MyoPro 2X and the Mark II clinical unit, aimed at enhancing patient independence and expanding the O and P distribution channel [6][7] - Plans for further expansion include increasing manufacturing capacity and enhancing marketing efforts to drive lead generation and patient engagement [12][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in lead generation due to changes in social media advertising policies but reported a rebound in lead generation in March and April [10][32] - The company expects Q2 revenue to be slightly lower than Q1 but reaffirms its financial targets for the year, projecting full-year revenue between $50,000,000 and $53,000,000, representing growth of 54% to 66% over 2024 [30][31] Other Important Information - The company has signed contracts covering approximately 25,000,000 lives, including several new state Blue Cross Blue Shield plans, and is negotiating with national health insurance plans [18][64] - The company is actively working to improve insurance access and reduce denial rates through advocacy and legal engagement [17][65] Q&A Session Summary Question: Can you elaborate on the workaround around the Meta issue affecting advertising efficiency? - Management indicated that changes in Meta's algorithms impacted ad targeting, but adjustments made with their agency have led to a record number of leads in April, suggesting sustainability in improvements [37][38] Question: What is the expected cost per pipeline add moving forward? - The cost per lead in April was approximately half of that in January and February, with expectations to maintain efficiency around $1,400 to $1,500 for the year [39][40] Question: How does the authorization rate for the pipeline look? - The authorization rate was affected by backend loading of pipeline adds and high denial rates from Medicare Advantage plans, which are currently around 30% [51][52] Question: What is the outlook for gross margins going forward? - Management expects slightly lower gross margins in Q2 due to lower volume but anticipates approaching 70% gross margins in the second half of the year [53] Question: What is the confidence level in achieving the full-year guidance? - Management reiterated confidence in achieving full-year guidance, citing historical revenue patterns and increased advertising efforts to fill the pipeline [56]
Myomo(MYO) - 2025 Q1 - Earnings Call Transcript
2025-05-07 21:30
Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $9,800,000, representing a 162% increase year over year, driven by a higher number of revenue units and an increased average selling price (ASP) [18][19] - The company delivered 182 MyoPro revenue units in Q1, up 100% from Q1 2024, with ASP increasing by approximately 31% to around $54,000 [19][9] - Gross margin for Q1 2025 was 67.2%, compared to 61.2% in the prior year quarter, primarily due to a higher ASP and better fixed cost absorption [24] - Operating loss for Q1 2025 was $3,500,000, a decrease of 9% compared to the $3,900,000 loss in Q1 2024 [25][26] Business Line Data and Key Metrics Changes - The O and P revenue was $475,000 in Q1, up 87% year over year, but down sequentially due to seasonality [12] - The company added a record 700 medically qualified candidates to its patient pipeline during Q1, ending the quarter with nearly 1,500 patients in the process of obtaining MyoPro [9][20] - International revenue, primarily from Germany, was $1,300,000 in Q1, representing 13% of total revenue and up 42% year over year [19][10] Market Data and Key Metrics Changes - Medicare Part B patients represented 60% of total revenue in Q1, up from 57% in the previous quarter, highlighting the company's success in educating this patient population [19] - Medicare Advantage revenue was 17% of Q1 revenue, reflecting an 18% year-over-year increase, although growth is lagging due to high denial rates [19][14] Company Strategy and Development Direction - The company is focused on continuous innovation, having launched two product upgrades in 2025, including the MyoPro 2X, aimed at improving independent device use [6][9] - The company is expanding its O and P distribution channel by training clinicians and establishing certified MyoPro centers of excellence [12][11] - The company plans to continue investing in marketing, product development, and distribution channels to achieve cash flow positivity by the end of 2025 [16][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in lead generation due to changes in social media algorithms but reported a record number of leads in April, indicating a rebound [8][29] - The company expects Q2 revenue to be slightly lower than Q1 but reaffirms its financial targets for the year, projecting full-year revenue between $50,000,000 and $53,000,000 [28][9] - Management expressed confidence in achieving its guidance for the year, citing a historical trend of higher revenue in the second half of the year [55][28] Other Important Information - The company completed a successful capital raise at the end of 2024 to fund growth plans for 2025 and beyond [16] - The company is actively working to improve insurance access and has signed contracts covering 25,000,000 lives, including several new state Blue Cross Blue Shield plans [16][64] Q&A Session Summary Question: Can you elaborate on the workaround around the Meta issue driving advertising efficiency improvement? - Management explained that changes in Meta's algorithms affected ad targeting, but adjustments made with their agency led to a record number of leads in April, indicating sustainability in improvements [35][36] Question: What is the expected cost per pipeline add moving forward? - Management indicated that while the cost per pipeline add in April was significantly lower than in January and February, they expect it to stabilize around $1,400 to $1,500 for 2024 [37] Question: What are the drivers behind the percentage of pipeline drops? - Management noted that pipeline drops are often due to inability to contact patients again or changes in insurance, with clinical presentation changes also affecting backlog [38][40] Question: How should investors think about revenue cadence in Q3 and Q4? - Management stated that with a higher percentage of Medicare revenue, they do not need as high a backlog for revenue forecasts, and they expect to maintain fill percentages [41][42] Question: Can you provide insights on the O and P channel growth? - Management highlighted the O and P channel as a significant growth opportunity, with good reimbursement and margins, despite challenges in staffing and training [72][73] Question: What is the outlook for international markets, particularly Germany? - Management confirmed plans to expand the team in Germany and increase investments in social media advertising and clinic recruitment due to strong growth in that market [77][78]