Ekso Bionics(EKSO) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics - Quarterly sales for Q3 2024 were $4.1 million, down from$ 4.6 million in Q3 2023 [20] - Gross profit for Q3 2024 was $2.2 million, with a gross margin of 53.5%, slightly up from 53.3% in Q3 2023 [20] - Net loss for Q3 2024 decreased to$ 2.1 million ( $0.10 per share) from$ 3.4 million ( $0.24 per share) in Q3 2023 [21] - Revenue for the first nine months of 2024 was$ 12.8 million, down from $13.4 million in the same period in 2023 [22] - Net loss for the first nine months of 2024 was$ 7.9 million ( $0.42 per share), compared to$ 12 million ( $0.88 per share) in the same period in 2023 [23] - Cash and restricted cash as of September 30, 2024, was$ 8.3 million, down from $8.6 million at the end of 2023 [24] Business Line Data and Key Metrics - 33 EksoHealth devices were sold in Q3 2024, with approximately half of the placements in Europe and several in APAC [25] - 28% of Q3 revenue was attributed to the personal product line [25] - EksoNR devices are deployed in 9 of the top 10 rehabilitation centers in the US, indicating a growing standard-of-care adoption [13] - Sales of EksoWorks' EVO exoskeleton were impacted by labor strikes in US manufacturing industries [15] Market Data and Key Metrics - European sales achieved record levels in Q3 2024, driven by strong demand in neurorehabilitation centers [14] - US sales were affected by procurement cycle fluctuations and delayed capital purchases by customers into Q4 2024 and early 2025 [12] - The company expanded its international distribution network, achieving greater operating leverage in foreign markets [15] Company Strategy and Industry Competition - The company is focused on expanding access to its Ekso Indego Personal technology, particularly after CMS approval and reimbursement for Medicare and Medicaid patients [8][11] - The company is leveraging its strong reputation in neurorehabilitation to drive growth for both EksoNR and Ekso Indego therapy devices [14] - The company is committed to developing relationships with IDNs to secure larger multi-unit capital contracts across North America [15] - The company is raising awareness about the benefits of its EVO exoskeleton in industries such as automotive, aerospace, construction, and renewable energy [16] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about future prospects, with a growing pipeline of potential deals and a strong demand for its products [15][18] - The company expects procurement cycles with IDNs to normalize in the near term, which will positively impact sales in 2025 [30] - The company is working on expanding indications for its Indego family of products through clinical studies, leveraging relationships with top neurological research hospitals [36][37] Other Important Information - The company closed an underwritten public offering in September 2024, resulting in net proceeds of approximately$ 5 million [24] - The company has a total product portfolio with a potential addressable market exceeding $13 billion across the continuum of care [18] Q&A Session Summary Question: Geographic distribution of device placements - Approximately half of the 33 placements in Q3 2024 were in Europe, with several in APAC, and the majority outside the US [25] Question: Status of CMS claims and reimbursement - Multiple claims have been submitted year-to-date, with one claim reimbursed and two requiring additional information for resubmittal [27] - The reimbursement process for claims is taking longer than expected [28] Question: Backlog and procurement cycles - The company has a strong backlog for Q4 2024, with demand in Europe remaining strong and North America expected to see a positive impact from renewal cycles in 2025 [30] Question: Impact of CMS reimbursement on IDN purchasing - The delay in IDN purchases is more related to macroeconomic uncertainties and procurement cycles rather than distraction from CMS reimbursement [32] Question: Outlook for European sales in Q4 2024 - Demand in Europe remains strong, with a solid backlog entering Q4, indicating another strong quarter [33][35] Question: Expansion into neurological conditions - The company is working on clinical studies to expand indications for its Indego family of products, leveraging relationships with top neurological research hospitals [36][37] Question: Revenue breakdown for personal products - Approximately 20% of total revenue in Q3 2024 was attributed to personal products [38]