Ekso Bionics(US:EKSO)2025-05-05 21:32Financial Data and Key Metrics Changes - The company recorded revenue of $3.4 million in Q1 2025, down from $3.8 million in the same period of 2024, attributed to capital budget impacts from certain inpatient rehabilitation facilities related to the EksoNR enterprise health product [7] - Gross profit for Q1 was $1.8 million, representing a gross margin of approximately 54%, compared to a gross profit of $2 million and a gross margin of 52% for Q1 2024 [8] - Operating expenses for Q1 2025 were $5.3 million, essentially unchanged from $5.2 million in Q1 2024 [8] - The net loss applicable to common stockholders for Q1 2025 was $2.9 million, or $0.12 per share, compared to a net loss of $3.4 million, or $0.20 per share, in Q1 2024 [8] - As of March 31, 2025, the company had cash and restricted cash of $8.1 million, up from $6.5 million at the end of 2024 [9] Business Line Data and Key Metrics Changes - The primary end market for the company's exoskeleton technology is healthcare, with two segments: enterprise health and personal health [6] - The legacy enterprise health products, mainly the EksoNR device, faced revenue declines due to budget impacts, while the Ekso Indigo personal device saw good growth [10] - The company developed a pipeline of over 35 Medicare beneficiaries qualified for the Ekso Indigo Personal in 2025, a 37% increase from the previous quarter [12] Market Data and Key Metrics Changes - The company experienced softness in the legacy enterprise business in Q1 due to customers' capital budgets being impacted by macroeconomic uncertainties [10] - There is a strong pipeline in the enterprise business, but budget constraints have temporarily affected purchases [27] Company Strategy and Development Direction - The company is focusing on building a scalable go-to-market strategy for the Ekso Indigo Personal, leveraging partnerships with distribution networks [14] - The engagement with Priya Healthcare and the addition of Bionic P and O as distributors are expected to broaden access to the Ekso Indigo Personal device [15] - The company anticipates that the majority of revenue in 2025 will still come from enterprise health, but expects increasing contributions from personal health products [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in capital budgets, they expect solid contributions from enterprise health in 2025 due to upcoming renewals [26] - The company is preparing for potential longer-term impacts from budget constraints but remains optimistic about its pipeline and market access capabilities [27] - Management believes that gross margins can improve as revenues expand, supported by effective cost controls [29] Other Important Information - The company operates as one reportable segment with a focus on healthcare, specifically targeting individuals with physical disabilities [6] - The management team emphasized the importance of navigating the complexities of coding, coverage, and payment to enhance access to their products [13] Q&A Session Summary Question: How should investors think about where the patients will fall this year in terms of the Indigo Personal? - Management expects that enterprise products will represent 75% to 80% of the business, with solid contributions from personal products growing quarter over quarter [19] Question: Any more color on how things are going with claims submissions? - Management has learned from past claims and believes they have a strong understanding of what constitutes a successful claim, although definitive criteria from CMS are still pending [23][24] Question: What is the outlook on capital budgeting from IDNs? - Management noted softness in capital budgets in Q1 but expects solid contributions from renewals in 2025 [26][27] Question: Can gross margins continue to improve? - Management believes that with effective cost controls and increased volume, gross margins can improve as revenues expand [29]