Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $7.5 million, up 77% year-over-year, with total revenue increasing by 26% compared to the same quarter last year [12][13] - Product revenue growth was driven by a 63% increase in revenue units and a higher average selling price (ASP) of approximately $47,500, up 9% year-over-year [13][14] - Gross margin for Q2 2024 was 70.8%, slightly down from 71.8% in the prior year, primarily due to the impact of high-margin license revenue in the previous year [17][18] - Operating loss for Q2 2024 was $1.1 million, unchanged from Q2 2023, while net loss was $1.1 million or $0.03 per share, compared to a net loss of $1 million or $0.04 per share in the prior year [19][20] Business Line Data and Key Metrics Changes - The company recognized revenue on 74 MyoPros delivered to Medicare Part B beneficiaries, contributing to a record number of patient pipeline additions and authorizations [6][7] - The patient pipeline reached 1,179 patients, with 550 additions in Q2, marking a 35% year-over-year increase [16] - Revenue from Medicare Advantage plans represented 26% of total revenue, down 26% year-over-year due to a more challenging reimbursement environment [14] Market Data and Key Metrics Changes - International operations, primarily in Germany, generated over $1 million in revenue during the quarter [10] - The company has seen a positive trend with some Medicare Advantage plans starting to remit payments at the Medicare rate, contributing to the higher ASP [9] Company Strategy and Development Direction - The company plans to expand its manufacturing capacity and is finalizing plans to move to a larger production facility in the Boston area [10][24] - There is a focus on building relationships with O&P clinics and training clinicians to become MyoPro centers of excellence, with a goal of training 80 to 100 clinicians by the end of the year [30][51] - Increased investment in R&D is planned to innovate product development and maintain a first-mover advantage in the market [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth in the third quarter, expecting revenue in the range of $8.0 million to $8.5 million, representing a year-over-year growth of 58% to 67% [22] - The company anticipates that the second half of the year will be stronger than the first half, historically seeing better performance in the latter half due to patient out-of-pocket expenses resetting at the beginning of the year [46][47] Other Important Information - The company has entered into a $4 million accounts receivable line of credit with Silicon Valley Bank to support operations [21] - The company expects to file a new shelf registration statement shortly to maintain a valid registration for future offerings [21] Q&A Session Summary Question: Confidence around increasing manufacturing capacity - Management indicated plans to expand capacity beyond 80 units per month by Q4 and potentially add a second shift next year [28] Question: Goals for the O&P channel team - The focus is on building relationships and training clinicians this year, with material revenue expected to build in 2025 [30] Question: Gross margins outlook - Management views 70% as a good baseline for gross margins, with potential for expansion as more Medicare Advantage plans reimburse at the Medicare allowable rate [34] Question: Impact of political advertising on pipeline - Management acknowledged that political advertising could create competition for patient attention in Q3 and Q4, but they are increasing advertising spend to mitigate this [39] Question: Increasing marketing without impacting bottom line - Management is balancing increased marketing spend with the goal of achieving operating cash flow breakeven in Q4 while ensuring revenue growth in 2025 [44]
Myomo(MYO) - 2024 Q2 - Earnings Call Transcript