Ekso Bionics(US:EKSO)2024-03-05 01:07Financial Data and Key Metrics Changes - Revenue for the full year 2023 increased by 42% to $18.3 million compared to $12.9 million in 2022, primarily driven by an increase in EksoHealth device sales [1][12] - Operating expenses for 2023 were $24.2 million, up from $21.8 million in the prior year, mainly due to the acquisition and integration of HMC [2] - Net loss applicable to common stockholders for 2023 was $15.2 million or $1.10 per share, compared to a net loss of $15.1 million or $1.16 per share in 2022 [2] - Gross profit for the full year was $9.1 million, with a gross margin of approximately 50%, compared to $6.2 million and a gross margin of 48% in 2022 [5] Business Line Data and Key Metrics Changes - The company sold 151 EksoHealth devices in 2023, a 51% increase from 2022 levels [19] - In Q4 2023, revenue was $4.8 million, a 36% increase from $3.6 million in Q4 2022, driven by increased sales of EksoNR and Indego devices [13][39] - Gross profit for Q4 was $2.4 million, with a gross margin of approximately 49%, compared to $1.7 million and a gross margin of 47% in Q4 2022 [39] Market Data and Key Metrics Changes - The company achieved solid performance in EMEA and APAC regions, with increased sales volume supported by a strong distribution network [25] - Multiunit EksoNR sales were generated across Eastern Europe in Q4, indicating growth in international markets [25] Company Strategy and Development Direction - The company is focused on building a scalable go-to-market strategy and strengthening its distribution network to drive sustained growth for EksoHealth devices [19][32] - The launch of GaitCoach software for EksoNR aims to improve user experience and increase device utilization [20][21] - The company is committed to maximizing EVO's placement in large industrial settings, despite modest revenue contributions from the industrial segment [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2024 business outlook, building on the momentum generated in 2023 [67] - The company is focused on optimizing expense and inventory management processes to scale its business efficiently [32][67] - Management highlighted the importance of supporting CMS in providing additional pricing details for reimbursement determinations [51][70] Other Important Information - Operating cash burn for Q4 was $1.6 million, down from $3.7 million in Q4 2022 [4] - Cash used in operating activities for the fiscal year was $12.1 million, with cash on hand of $8.6 million as of December 31, 2023 [42] Q&A Session Summary Question: Update on Indego pricing and CMS discussions - Management confirmed ongoing discussions with CMS regarding final pricing and the need for additional commercial pricing evidence to support reimbursement claims [49][51] Question: Sustainability of sales growth - Management indicated that the growth in sales is supported by a strong pipeline and scalable strategies, with increased multiunit orders from integrated delivery networks [54][55] Question: Operating expenses and margin expansion - Management noted that cost containment programs are in place and expressed confidence in achieving operating margin expansion in 2024 [46][58] Question: Referral pathways for personal units - Management discussed the importance of building strong relationships with healthcare providers to facilitate prescriptions and claims reimbursement [71][74]