Financial Data and Key Metrics - Revenue for Q2 2024 was $6.7 million, a 402% increase compared to Q2 2023 [5] - Operating losses remained flat year-over-year despite a larger commercial footprint [5] - Gross profit for Q2 2024 was $2.8 million (41.1% of revenue) on a GAAP basis and $3.1 million (46.9% of revenue) on a non-GAAP basis [13] - GAAP operating loss for Q2 2024 was $4.4 million, compared to $5.2 million in Q2 2023 [15] - Cash and equivalents at the end of Q2 2024 stood at $15.1 million with no debt [15] Business Line Data and Key Metrics - ReWalk systems revenue was $3.1 million in Q2 2024, up 72% from Q2 2023, driven by Medicare coverage expansion [11] - AlterG products revenue was $3.6 million in Q2 2024, a sequential increase of $0.8 million from Q1 2024 [11] - The company achieved 20 ReWalk placements in Q2 2024, a record for the quarter [5] - The backlog for AlterG systems increased to 104 units by the end of Q2 2024, with orders expected to ship in Q3 and Q4 [12] Market Data and Key Metrics - In Germany, 54 ReWalk cases were in process at the end of Q2 2024, with 29 pending insurance claims and 25 court cases [12] - In the U.S., 35 ReWalk cases were in process, many of which were for Medicare beneficiaries [12] - The company received over $600,000 in Medicare receivables during Q3 2024, with expectations for further payments by year-end [16] Company Strategy and Industry Competition - The company is focused on achieving profitable breakeven operations through revenue growth, margin gains, and operating efficiencies [8] - The launch of the new NEO anti-gravity product in June 2024 is expected to drive growth, particularly in smaller clinics [6][24] - The company submitted an FDA 510(k) application for the seventh-generation ReWalk system, which includes user-driven enhancements [24][36] Management Commentary on Operating Environment and Future Outlook - Management reaffirmed full-year 2024 revenue guidance of $28 million to $32 million [9] - The company expects gross margins to reach approximately 50% by Q4 2024, driven by higher revenue and cost efficiencies [18] - Management is optimistic about the long-term market potential, envisioning a market of 1,000 systems annually with proper development and investment [25][39] Other Important Information - The company is building an additional 25 ReWalk systems in the U.S. to mitigate potential supply chain disruptions due to the conflict in Israel [17] - Medicare claims are expected to be paid on a 30- to 45-day cycle once the payment mechanism is fully established [16] Q&A Session Summary Question: Receivables and Medicare Payments - The company expects the majority of the remaining $2 million in Medicare receivables to be paid by the end of 2024 [27] Question: AlterG Business Growth - The growth in AlterG revenue is organic, driven by the sales team's efforts, with the backlog increasing from mid-60s to over 100 units [28] Question: Germany Market Progress - Germany is performing well, with growth in both Germany and the U.S., driven by court case settlements and insurance approvals [29] Question: Gross Margin Improvement - Gross margin improvement is attributed to higher volumes and production cost leverage, with expectations for further improvement through 2024 [32][33] Question: R&D Expenses - R&D expenses are expected to remain flat or slightly decrease in the coming quarters following the submission of the ReWalk 7 and NEO launch [34] Question: ReWalk 7 Enhancements - The ReWalk 7 includes user-driven enhancements such as multiple speeds, updated battery systems, and improved connectivity [36] Question: NEO Product Reception - The NEO anti-gravity product received positive early feedback, with sales occurring at the launch event [35]
ReWalk(LFWD) - 2024 Q2 - Earnings Call Transcript