Ekso Bionics(EKSO)2023-04-28 02:09Financial Data and Key Metrics - Record quarterly revenues of 2 million, representing a gross margin of approximately 49%, up from 47% in the prior year [16] - Loss from operations in Q1 2023 was 4.2 million in the prior-year period [33] - Cash used in operating activities in Q1 2023 was 16.3 million as of March 31, 2023 [33] - Operating expenses for Q1 2023 were 5.4 million in Q1 2022, primarily due to the acquisition of HMC and increased marketing activities [43] Business Line Performance - EksoHealth delivered 0.6 million in Q1 2023, with a focus on transitioning towards volume purchases from large customers in industries such as construction, manufacturing, and green energy [49] - The newly acquired HMC business unit contributed modestly in Q1 2023, with expectations for stronger contributions as the year progresses [35] Market Performance - EMEA region grew 67% compared to Q1 2022, with the first Ekso Indego personal device sold in Europe during the quarter [27][28] - The company expanded its distribution network in EMEA through the acquisition of HMC, adding a commercial resource and strengthening partnerships [50] Strategic Direction and Industry Competition - The company is focused on driving sustainable growth across the continuum of care, leveraging its EksoHealth and Ekso Indego product lines [25][31] - Integration of HMC is progressing smoothly, with plans to merge market-leading technologies to deliver lower extremity rehab and mobility solutions [32] - The company is expanding its product development pipeline into the orthotic and prosthetic (O&P) industry, forming strategic relationships with key partners like Vanderbilt University [29] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong demand for EksoHealth devices, including EksoNR and Ekso Indego, driven by the success of the commercial strategy [41] - The company anticipates continued growth in EMEA and plans to strengthen its sales and distribution network in the region [36][50] - Supply chain challenges have caused margin compression, but management expects improvements as the supply chain stabilizes [40][52] Other Important Information - The company reestablished its partnership with SoldierStrong, a charitable organization supporting veterans, and donated its 30th robotic exoskeleton to a VA Medical Center [10][11] - The cumulative conversion and renewal rate remained strong at 81%, with $1.4 million of contracted unrecognized revenue under the subscription model [8] Q&A Session Summary Question: Contribution of Indego in Q1 2023 - The contribution from Indego in Q1 2023 was relatively modest, but the company expects stronger contributions as the year progresses [35] Question: EMEA Growth and Sales Personnel - The company has a strong team in EMEA, with additional resources added through the HMC acquisition, and feels adequately resourced to support growth in the region [50] Question: Multi-Unit Orders in the US - The company is seeing more multi-unit opportunities in its pipeline, both in the US and internationally, and continues to grow relationships with network operators [51] Question: Potential for Margin Expansion - Management expects further margin expansion through supply chain improvements and cost reductions, with most supply chain challenges peaking or behind them [52] Closing Remarks - The company thanked employees and shareholders for their contributions and support, expressing optimism for continued growth and momentum [56]