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 Q1 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% in Q1 2024 [8] - Operating expenses for Q1 2025 were $5.3 million, essentially unchanged from $5.2 million in Q1 2024 [8] - 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 growth [10][11] - 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 noted softness in the legacy enterprise business due to macroeconomic uncertainties affecting customer capital budgets [10] - The engagement with Priya Healthcare and the establishment of new distribution partnerships are expected to enhance market access and claims processing for the Ekso Indigo Personal [11][15] 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][15] - The strategy includes working closely with neuro rehabilitation partners and enhancing education efforts for appropriate patient selection [11] - 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 acknowledged the impact of economic uncertainties on capital budgets, particularly in Q1, but expressed optimism about the pipeline and future contributions from personal health products [10][27] - The management team believes that the operational improvements and cost controls will support gross margins as revenues expand [29] Other Important Information - The company is navigating complexities in coding, coverage, and payment to enhance access to its exoskeleton technology for individuals with mobility challenges [13] - The partnerships with National Seating and Mobility and Bionic P and O are expected to broaden access to the Ekso Indigo Personal across the U.S. [15][36] 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 current submissions are comprehensive with a high probability of success [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] Question: Is the gross margin trending in the right direction? - Management believes that operational improvements will allow for higher gross margins as revenue increases [29]