Myomo(US:MYO)2025-11-10 22:30Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $10.1 million, a 10% increase year-over-year, driven by a higher number of revenue units despite a lower average selling price (ASP) [16][4] - The company delivered 186 MyoPro revenue units, up 16%, with 57% of those units from authorizations and orders received in Q3 [16] - ASP decreased by 5% year-over-year to approximately $54,300, but normalized for accounting changes, ASP increased by 3% [16][17] - Gross margin for Q3 2025 was 63.8%, down from 75.4% in the prior year, impacted by higher payroll, lease expenses, and material costs [20][21] - Operating loss for Q3 2025 was $3.5 million, compared to a loss of $1 million in the prior year [23] Business Line Data and Key Metrics Changes - International revenue reached a record $1.8 million, up 63%, primarily from Germany, representing 18% of total revenue [18] - Revenue from the O&P channel was a record $900,000, up 154% year-over-year, representing 9% of total revenue [18] - The pipeline stood at 1,669 patients, a 32% increase year-over-year, with 826 patients added in Q3 [19] Market Data and Key Metrics Changes - Medicare Part B patients represented 54% of revenue in Q3, while Medicare Advantage revenue was 18%, down 18% year-over-year due to high pre-authorization denials [17] - The company signed an additional contract with a payer, increasing covered lives to 35 million among private payers [12] Company Strategy and Development Direction - The company aims to diversify revenue streams, focusing less on advertising-driven revenues and more on the MyoPro Connect platform and O&P channel penetration [26] - Key initiatives include improving patient identification, expanding the MyoPro Connect program, and reducing operating costs [5][14] - The company is enhancing manufacturing processes to improve gross margin and operating leverage as revenues grow [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and the MyoPro Connect program, expecting to see more patient pipeline adds through these channels [40] - The company reiterated its full-year 2025 revenue guidance of $40-$42 million, representing over 23% growth from the previous year [14][26] Other Important Information - The company entered into a loan agreement providing a term loan facility of $17.5 million to support growth and operational needs [25] - Cash balance as of September 30, 2025, was $20.1 million after the loan funding [25] Q&A Session Summary Question: Scale of U.S. O&P business - The company shipped approximately $900,000 worth of units, roughly 30 units, in the O&P channel during Q3 [31] Question: Customer acquisition cost improvements - The new head of marketing is reviewing the effectiveness of various advertising channels to generate more leads at a lower cost [32] Question: Backlog drop drivers - About 40% of the backlog drop was attributed to Germany, with some cleanup in the backlog during Q3 [34] Question: Future operating expenses - Operating expenses are expected to grow, but the company aims to manage them to generate operating leverage [36] Question: Pipeline adds and market saturation - Management believes there is still significant market opportunity and expects growth through innovative patient outreach [40] Question: Q4 growth expectations - Growth in Q4 is anticipated from fill units and authorizations/orders received within the quarter [42] Question: Debt decision rationale - The company believes it can manage the debt and expects to be closer to breakeven within 18 months [46] Question: O&P clinics training progress - Several hundred clinicians have undergone training, with goals to expand the number actively placing orders [54] Question: International business performance - Germany's success is attributed to a network of O&P partners and favorable reimbursement conditions [62]