Release Date: July 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ekso Bionics Holdings Inc (EKSO, Financial) achieved record quarterly sales of $5 million in Q2 2024.
- The company sold 37 EksoHealth devices, indicating strong demand for their products.
- Gross margin improved to 53% from 48% in the same quarter last year, driven by higher average selling prices and lower device costs.
- CMS established a Medicare reimbursement level of $91,031 for the Ekso Indego Personal, expanding access to individuals with spinal cord injuries.
- Operating expenses decreased significantly from $6.5 million in Q2 2023 to $5 million in Q2 2024, reflecting cost management efforts.
Negative Points
- Despite record sales, the company still reported a net loss of $2.4 million for the quarter.
- US sales were slightly affected by typical fluctuations in procurement cycles for larger integrated delivery network customers.
- Cash and restricted cash decreased from $8.6 million as of December 31, 2023, to $5.9 million as of June 30, 2024.
- Revenue for the first half of 2024 was slightly down at $8.7 million compared to $8.8 million for the same period in 2023.
- The company is still in the early stages of ramping up the CMS reimbursement process for the Ekso Indego Personal, with only a handful of claims submitted so far.
Q & A Highlights
Highlights from Ekso Bionics Holdings Inc (EKSO) Q2 2024 Earnings Call
Q: Where is the interest pipeline for Indego Personal materializing from? Is it mostly individuals contacting you directly or clinics pushing patients your way?
A: Interest is coming from a variety of sources, including individuals who find information through social media or their physicians, as well as clinics and existing customers. The mix appears to be relatively even between direct individual inquiries and those coming through clinics and physicians. (Scott Davis, CEO)
Q: Do you expect the source of inquiries to change over time with your investments in content marketing and webinars?
A: Yes, there is a direct correlation between our marketing efforts and the influx of leads. As we conduct webinars and campaigns, we see increased interest from both healthcare professionals and individuals. Over time, we expect more grassroots interest through social media. (Scott Davis, CEO)
Q: Was there any drag in the quarter from Indego Personal units shipped but not recognized as revenue?
A: No, all devices shipped in the quarter were recognized as revenue. (Scott Davis, CEO)
Q: How many Indego Personal units have been delivered since the CMS decision?
A: We are not reporting specific numbers, but the first handful of claims were submitted in Q2 and are progressing. We have an increasing pipeline with new claims being submitted regularly. (Scott Davis, CEO)
Q: Based on current inquiries, when do you expect revenue from Indego Personal to become meaningful?
A: We expect an increasing number of Indego Personal devices to come through the CMS reimbursement process in the coming quarters. By 2025, we believe the Indego Personal will have a significant positive impact on our revenue. (Scott Davis, CEO)
Q: Can you provide more details on the progress made in reducing expenses and improving gross margins?
A: Gross margin increased to 53% from 48% due to higher average selling prices for EksoNR and lower device and service costs. Operating expenses decreased due to lower headcount and discretionary costs. (Jerome Wong, CFO)
Q: What are your expectations for the Ekso Indego Personal's impact on future revenue?
A: We believe the Ekso Indego Personal will significantly impact our revenue in 2025 and beyond, given the $2 billion funded addressable market. We are building a scalable process to access this market efficiently. (Scott Davis, CEO)
Q: How is the international demand for Ekso Bionics' products?
A: International demand remains strong, with notable uptake in the EMEA region driven by the French public health system and multiple orders in Asia. We have also expanded our international distribution network. (Scott Davis, CEO)
Q: What are your plans for the industrial segment, EksoWorks?
A: We are raising awareness of the benefits of EVO for workers in various industries. We believe Ekso is a pioneer in this market and are targeting customers who can drive large volumes of EVO devices. (Scott Davis, CEO)
Q: What are your future prospects and pipeline of potential deals?
A: We remain focused on developing relationships with IDNs to secure larger multi-unit capital deals across North America. We are optimistic about future prospects and our pipeline of potential deals. (Scott Davis, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
