Myomo Reports Second Quarter 2024 Financial Results
Record revenue of
Record 213 MyoPro® authorizations and orders
Record 550 additions to the pipeline, with 1,179 patients in the pipeline at quarter-end
Financial and operational highlights for the second quarter of 2024 include the following (all comparisons are with the second quarter of 2023 unless otherwise indicated):
-
Product revenue was
$7.5 million , up 77%, with total revenue up 26% reflecting receipt of the final joint venture license fee payment in the prior-year period; - Revenue units were 158, up 63%;
- Orders and insurance authorizations were received for 213 MyoPro units, up 70%;
-
Backlog, which represents insurance authorizations and orders received but not yet converted to revenue, was 282 units as of
June 30, 2024 , up 58%; - 550 new candidates were added to the patient pipeline, up 35%;
-
There were 1,179 MyoPro candidates in the patient pipeline as of
June 30, 2024 , up 22%; - Gross margin was 70.8%, down 100 basis points, with gross margin on product revenues up 1,030 basis points; and,
-
Cost per pipeline add was
$1,545 , down 26%.
Management Commentary
“I'm proud of our execution during the second quarter," said
Financial Results
|
For the Three Months
|
|
Period-
|
|
For the Six Months
|
|
Period-
|
|
||||||||||||||||
|
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
$ |
|
% |
|
||||||||
Product revenue |
$ |
7,520,767 |
|
$ |
4,243,624 |
|
$ |
3,277,143 |
|
|
77 |
% |
$ |
11,275,156 |
|
$ |
7,690,332 |
|
$ |
3,584,824 |
|
|
47 |
% |
License revenue |
|
— |
|
|
1,714,920 |
|
|
(1,714,920 |
) |
|
(100 |
)% |
|
- |
|
|
1,714,920 |
|
|
(1,714,920 |
) |
|
(100 |
)% |
Total revenue |
|
7,520,767 |
|
|
5,958,544 |
|
|
1,562,223 |
|
|
26 |
% |
|
11,275,156 |
|
|
9,405,252 |
|
|
1,869,904 |
|
|
20 |
% |
Cost of revenue |
|
2,195,255 |
|
|
1,677,488 |
|
|
517,767 |
|
|
31 |
% |
|
3,650,601 |
|
|
2,816,594 |
|
|
834,007 |
|
|
30 |
% |
Gross profit |
$ |
5,325,512 |
|
$ |
4,281,056 |
|
$ |
1,044,456 |
|
|
24 |
% |
$ |
7,624,555 |
|
$ |
6,588,658 |
|
$ |
1,035,897 |
|
|
16 |
% |
Gross margin % |
|
70.8 |
% |
|
71.8 |
% |
|
|
|
-1.0 |
% |
|
67.6 |
% |
|
70.1 |
% |
|
|
|
-2.5 |
% |
Revenue for the second quarter of 2024 was
Gross margin for the second quarter of 2024 was 70.8%, compared with 71.8% for the second quarter of 2023. The decrease was driven primarily by the license fee payment in the second quarter of 2023 offset by a higher ASP. Gross margin on product revenues for the second quarter of 2023 was 60.5%. Year-to-date gross margin was 67.6%, compared with 70.1% for the same period a year ago. Gross margin on product revenue for the first half of 2023 was 63.4%.
Operating expenses for the second quarter of 2024 were
Operating loss for the second quarter of 2024 was
Adjusted EBITDA for the second quarter of 2024 was
Operations Update
The patient pipeline was 1,179 patients as of
Business Outlook
“Our backlog entering the third quarter is slightly higher than the backlog we had entering the second quarter. In addition, velocity of revenue recognition is expected to be somewhat higher as we are now recording revenue from Medicare Part B patients at the time of product delivery," added
"We are continuing our efforts to position the Company to achieve revenue of
Cash Position
Cash, cash equivalents and short-term investments as of
Conference Call and Webcast
A replay of the webcast will be available beginning approximately one hour after the completion of the live conference call at http://ir.myomo.com/. A dial-in replay of the call will be available until
Non-GAAP Financial Measures
About
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, including expectations for third quarter and full year 2024 revenue, as well as expectations regarding achieving operating cash flow breakeven by the fourth quarter of 2024, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.
These factors include, among other things:
- our ability to obtain sufficient reimbursement from third-party payers for our products;
- our ability to navigate factors both within and outside our control to grow revenues sufficiently to achieve operating cash flow breakeven on a quarterly basis;
- our revenue concentration with Medicare and with a particular insurance payer as a result of focusing our efforts on patients with insurers who have previously reimbursed for the MyoPro;
- our ability to continue normal operations and patient interactions without supply chain disruption in order to deliver and fit our custom-fabricated devices;
- our marketing and commercialization efforts;
- our dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven;
- our ability to obtain and maintain our strategic collaborations and to realize the intended results of such collaborations;
- our ability to effectively execute our business plan and scale up our operations;
- our expectations as to our product development programs, including improving our existing products and developing new products;
- our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our products;
- our expectations as to our clinical research program and clinical results;
- our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others;
- our ability to gain and maintain regulatory approvals;
- our ability to compete and succeed in a highly competitive and evolving industry; and
- general market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients.
More information about these and other factors that potentially could affect our financial results is included in Myomo’s filings with the
(Tables to follow)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||
|
|
For the Three Months ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product revenue |
|
$ |
7,520,767 |
|
|
$ |
4,243,624 |
|
|
$ |
11,275,156 |
|
|
$ |
7,690,332 |
|
License revenue |
|
|
— |
|
|
|
1,714,920 |
|
|
|
— |
|
|
|
1,714,920 |
|
|
|
|
7,520,767 |
|
|
|
5,958,544 |
|
|
|
11,275,156 |
|
|
|
9,405,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue |
|
|
2,195,255 |
|
|
|
1,677,488 |
|
|
|
3,650,601 |
|
|
|
2,816,594 |
|
Gross profit |
|
|
5,325,512 |
|
|
|
4,281,056 |
|
|
|
7,624,555 |
|
|
|
6,588,658 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
1,007,224 |
|
|
|
564,235 |
|
|
|
1,963,438 |
|
|
|
1,041,225 |
|
Selling, clinical and marketing |
|
|
2,777,135 |
|
|
|
2,271,938 |
|
|
|
5,138,980 |
|
|
|
4,302,488 |
|
General and administrative |
|
|
2,656,217 |
|
|
|
2,547,890 |
|
|
|
5,525,968 |
|
|
|
5,018,947 |
|
|
|
|
6,440,576 |
|
|
|
5,384,063 |
|
|
|
12,628,386 |
|
|
|
10,362,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from operations |
|
|
(1,115,064 |
) |
|
|
(1,103,007 |
) |
|
|
(5,003,831 |
) |
|
|
(3,774,002 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other (income) expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
(107,242 |
) |
|
|
(103,439 |
) |
|
|
(242,535 |
) |
|
|
(189,753 |
) |
Other expense, net |
|
|
— |
|
|
|
5,631 |
|
|
|
— |
|
|
|
5,631 |
|
Loss on equity investment |
|
|
— |
|
|
|
12,514 |
|
|
|
— |
|
|
|
29,716 |
|
|
|
|
(107,242 |
) |
|
|
(85,294 |
) |
|
|
(242,535 |
) |
|
|
(154,406 |
) |
Loss before income taxes |
|
|
(1,007,822 |
) |
|
|
(1,017,713 |
) |
|
|
(4,761,296 |
) |
|
|
(3,619,596 |
) |
Income tax expense (benefit) |
|
|
113,785 |
|
|
|
(3,562 |
) |
|
|
195,943 |
|
|
|
38,849 |
|
Net loss |
|
$ |
(1,121,607 |
) |
|
$ |
(1,014,151 |
) |
|
$ |
(4,957,239 |
) |
|
$ |
(3,658,445 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
|
37,368,488 |
|
|
|
27,992,928 |
|
|
|
37,060,543 |
|
|
|
26,000,216 |
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.14 |
) |
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
|
|
|
|
|
||
|
|
2024 |
|
|
2023 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
5,846,100 |
|
|
$ |
6,871,306 |
|
Short-term investments |
|
|
3,135,801 |
|
|
|
1,994,662 |
|
Accounts receivable, net |
|
|
2,526,361 |
|
|
|
2,382,658 |
|
Inventories, net |
|
|
2,601,104 |
|
|
|
1,803,507 |
|
Prepaid expenses and other current assets |
|
|
1,032,323 |
|
|
|
598,850 |
|
Total Current Assets |
|
|
15,141,689 |
|
|
|
13,650,983 |
|
Operating lease assets with right of use |
|
|
539,498 |
|
|
|
663,554 |
|
Equipment, net |
|
|
289,303 |
|
|
|
175,794 |
|
Other assets |
|
|
219,891 |
|
|
|
91,237 |
|
Total Assets |
|
$ |
16,190,381 |
|
|
$ |
14,581,568 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
|
5,868,407 |
|
|
|
4,885,944 |
|
Current operating lease liability |
|
|
316,600 |
|
|
|
486,143 |
|
Income taxes payable |
|
|
268,310 |
|
|
|
96,461 |
|
Deferred revenue |
|
|
12,015 |
|
|
|
8,510 |
|
Total Current Liabilities |
|
|
6,465,332 |
|
|
|
5,477,058 |
|
Non-current operating lease liability |
|
|
47,338 |
|
|
|
115,160 |
|
Total Liabilities |
|
|
6,512,670 |
|
|
|
5,592,218 |
|
Commitments and Contingencies |
|
|
— |
|
|
|
— |
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
3,021 |
|
|
|
2,715 |
|
Additional paid-in capital |
|
|
111,430,314 |
|
|
|
105,840,239 |
|
Accumulated other comprehensive income |
|
|
138,888 |
|
|
|
83,669 |
|
Accumulated deficit |
|
|
(101,888,048 |
) |
|
|
(96,930,809 |
) |
|
|
|
(6,464 |
) |
|
|
(6,464 |
) |
Total Stockholders’ Equity |
|
|
9,677,711 |
|
|
|
8,989,350 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
16,190,381 |
|
|
$ |
14,581,568 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
For the Six Months Ended |
|
2024 |
|
|
2023 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net loss |
|
$ |
(4,957,239 |
) |
|
$ |
(3,658,445 |
) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
||
Depreciation |
|
|
65,663 |
|
|
|
100,622 |
|
Stock-based compensation |
|
|
228,395 |
|
|
|
451,088 |
|
Accretion of discount on short-term investments |
|
|
(108,999 |
) |
|
|
— |
|
Credit losses |
|
|
5,257 |
|
|
|
13,000 |
|
Loss on equity investment |
|
|
— |
|
|
|
29,716 |
|
Amortization of right-of-use assets |
|
|
124,057 |
|
|
|
209,625 |
|
Other non-cash charges |
|
|
44,631 |
|
|
|
(10,786 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(102,234 |
) |
|
|
235,877 |
|
Inventories |
|
|
(816,055 |
) |
|
|
68,907 |
|
Prepaid expenses and other current assets |
|
|
(363,375 |
) |
|
|
(212,438 |
) |
Other assets |
|
|
(214,937 |
) |
|
|
— |
|
Accounts payable and accrued expenses |
|
|
990,973 |
|
|
|
888,594 |
|
Income taxes payable |
|
|
176,235 |
|
|
|
34,774 |
|
Operating lease liabilities |
|
|
(237,365 |
) |
|
|
(232,467 |
) |
Deferred revenue |
|
|
3,505 |
|
|
|
(20,280 |
) |
Net cash used in operating activities |
|
|
(5,161,488 |
) |
|
|
(2,102,213 |
) |
CASH USED IN INVESTING ACTIVITIES |
|
|
(1,211,930 |
) |
|
|
(3,008,692 |
) |
CASH PROVIDED BY FINANCING ACTIVITIES |
|
|
5,361,909 |
|
|
|
5,763,910 |
|
Effect of foreign exchange rate changes on cash |
|
|
(13,697 |
) |
|
|
7,311 |
|
|
|
|
|
|
|
|
||
'Net (decrease) increase in cash and cash equivalents |
|
|
(1,025,206 |
) |
|
|
660,316 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of period |
|
|
6,871,306 |
|
|
|
5,345,967 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
5,846,100 |
|
|
$ |
6,006,283 |
|
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (unaudited) |
||||||||||||||||
|
|
For the Three Months
|
|
|
For the Six Months
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
GAAP net loss |
|
$ |
(1,121,607 |
) |
|
$ |
(1,014,151 |
) |
|
$ |
(4,957,239 |
) |
|
$ |
(3,658,445 |
) |
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
(107,242 |
) |
|
|
(103,439 |
) |
|
|
(242,535 |
) |
|
|
(189,753 |
) |
Depreciation expense |
|
|
35,979 |
|
|
|
51,989 |
|
|
|
65,663 |
|
|
|
100,622 |
|
Stock-based compensation |
|
|
(91,893 |
) |
|
|
280,061 |
|
|
|
228,395 |
|
|
|
451,088 |
|
Loss on investment in minority interest |
|
|
— |
|
|
|
12,514 |
|
|
|
— |
|
|
|
29,716 |
|
Income tax (benefit) expense |
|
|
113,785 |
|
|
|
(3,562 |
) |
|
|
195,943 |
|
|
|
38,849 |
|
Adjusted EBITDA |
|
$ |
(1,170,978 |
) |
|
$ |
(776,588 |
) |
|
$ |
(4,709,773 |
) |
|
$ |
(3,227,923 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806258317/en/
For
ir@myomo.com
Investor Relations:
LHA Investor Relations
kgolodetz@lhai.com
212-838-3777
Source: