Ekso Bionics(US:EKSO)2023-07-28 00:24Financial Data and Key Metrics Changes - In Q2 2023, the company generated revenue of $4.7 million, a 36% increase from $3.5 million in Q2 2022, driven by a $1.5 million increase in EksoHealth revenue, partially offset by a $200,000 decrease in EksoWorks revenue [12][22][26] - Gross profit for Q2 2023 was $2.3 million, with a gross margin of approximately 48%, compared to a gross profit of $1.6 million and a gross margin of 47% in Q2 2022 [12][22] - Operating expenses increased to $6.5 million in Q2 2023 from $4.9 million in Q2 2022, primarily due to costs associated with the acquisition and integration of HMC, severance expenses, and increased marketing activities [12][24] - The net loss for Q2 2023 was $4.2 million, or $0.31 per share, compared to a net loss of $3 million, or $0.23 per share, in Q2 2022 [12][22] Business Line Data and Key Metrics Changes - The company booked a total of 44 EksoHealth devices in Q2 2023, marking a quarterly record, including significant multiunit orders from integrated delivery networks [4][10] - The Ekso Indego product line contributed approximately 20% to overall revenue in Q2 2023, indicating strong adoption and performance [13] - EksoWorks faced challenges due to supply chain issues, impacting revenue fulfillment, but the company has a backlog of orders to be fulfilled in Q3 [15][23] Market Data and Key Metrics Changes - The company reported strong bookings in Europe, including a notable six-unit EksoNR deal through a distributor in Hungary, highlighting the effectiveness of indirect partnerships in the region [4][10] - In the APAC region, the company secured its first Ekso Indego booking, indicating growth potential in international markets [4] Company Strategy and Development Direction - The company is focused on leveraging technology and rehabilitative programs to follow patients from post-acute to outpatient care and into home and community use, which differentiates it in the industry [22] - A new go-to-market strategy for EksoWorks emphasizes targeting large industrial settings, with an addressable market opportunity of approximately $5 billion [23] - The company is optimistic about the potential for Medicare coverage of personal exoskeletons, which could enhance access for beneficiaries [23] Management's Comments on Operating Environment and Future Outlook - Management expressed encouragement regarding performance, citing record revenue and bookings, and emphasized the strength of the commercial team and expanded product portfolio [10][18] - The company is actively working to reduce cash burn and optimize inventory levels, with improvements in supply chain predictability [24] - Management is focused on improving operational efficiencies and is not satisfied with current margin levels, indicating ongoing efforts to enhance profitability [16][24] Other Important Information - The integration of HMC is progressing, with all former HMC products now fully integrated into the company's portfolio, enhancing production and revenue potential [24] - The company reported a cash balance of $13.3 million as of June 30, 2023, with cash used in operating activities decreasing to $7.1 million from $8.5 million in the prior year [26] Q&A Session Summary Question: Contribution of Indego to Revenue Increase - Management noted that the Indego devices are part of EksoHealth bookings, with the home and community health segment representing about 20% of overall revenue in Q2 [13] Question: Details on Auto Manufacturer Bid for EksoWorks - Management confirmed an initial order from the auto industry but faced supply chain challenges that delayed fulfillment, carrying backlog into Q3 [15] Question: Future Margin Trends - Management indicated ongoing efforts to improve operational efficiencies and lower costs, but did not forecast higher margins yet [16]