EKSO - Earnings call transcript Q1 2019 | Ekso Bionics Holdings, Inc.

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Operator

Greetings and welcome to Ekso Bionics First Quarter Financial Results Conference Call. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host David Carey with Lazar Partners. Thank you, you may begin.

David Carey

thank for and call. in operator, you, you participating all today's Thank

Earlier released me Jack ended press Jack is Officer; Officer. are Ekso March Glenn, website. available Ekso President Financial Joining copy Bionics release Executive XX, Peurach, XXXX. from of the results financial for and A Chief Chief on today, quarter company's Bionics the and the

without within will the like make I of pursuant we would that trends those historic place to to on include remind including forward-looking actual that made that uncertainties should begin, not securities involve operational statements examination statements. during statements All federal management meaning estimates results management's or financial statements undue this the and forward-looking are laws, call implied and cause future are Before various you which to Reform statements. you limitation deemed operating events statements based forward-looking expectations, be the upon or material safe harbor of in provisions statements and current statements, not these of of should anticipated these the or facts to Private or could These our be Act Securities XXXX. this Accordingly, risks Litigation historical from are forward-looking assumptions. reliance of call differ that contained materially by statements. Any

Ekso events businesses, the For any to conference by a XXXX. Commission. today, revise contains list of or intention statements, I'll accurate the X, forward-looking whether except see broadcast any This Jack time-sensitive our please other now uncertainties only our of to with call and is because risks filings information, or Securities financial turn law, over with projections future the or as as new Peurach. description Exchange call disclaims operational information May and of or associated update the and or and required obligation, otherwise.

Jack Peurach

quarter improving markets. with with financial year, everyone, strategy traction XXXX revenue our last XX that of results. we resonating We off period in commercial our thanks, is our same with today's of This resulting call. is David, proposition quarter our Compared Thanks, percentage in target customers clearly XX%. products. $X.X demand is the for record another a value million demonstrates growth and and for joining believe gross gaining revenue We kicked improvement our achieved that XX% of points first greater margin to innovative and throughout

as Additionally, on our our XX%. we first focus narrowing cost operating by is quarter losses our structure reducing rapidly expenses nearly net reduced

and simplified achieving that initiatives. We maintaining are scale a our implemented sales believe our cash organization XXXX we our through can and further momentum greater marketing business decrease and while efficiencies in in recently needs

progress review our with by EksoHealth. increased customers the continued our now XXXX. me target Let This XX% QX advancing segments, reflects quarter in our with with neurological the compared adoption neurosciences in approximately and beginning centers. Revenue business first rehabilitation

As multiple of past, the in customers customers across serve of many patients our potential an network. we've larger number facilities discussed integrated and a and operate

and that to serve the great has us adoption provider these innovative to positions leading these additional seen demand products, their a the way with we uniquely have We that EksoGT experience to our the is working piloting and excitement adopted facilities. customers of date, at for see accelerate capabilities technology these increasing believe customers. Ekso's We are throughout To pleased and EksoGT growing customers throughout centers. network EksoGT its and network one several

rental QX, for our a as current purchased from well assuming $X to capital-budgeted executed of our term productive the revenue our purchase Building sale strategy increase a successfully rental revenue sales rental end marketing continue United processes. Total were States. APAC This deferred to certain under bridge these to their relative from rentals our is strategy. helps by to ended. the team of contract We U.S. doubling as purchased sales our and into see and accommodate our rental It existing procurement budget as rental our new and sales X customers EMEA. our Of this by X we sales to in teams before that momentum, provides to a booked million. in units customers' units. to rental rental on investments we all and the XX% over a a cycles XXXX brings offering upside X, complement and units customers of customers current and sales convert the initiatives conversion X expanding rate U.S. In

to that our We addressing demand growing us customer additions opportunities. pipeline awareness growing of advantage are take increasing excited and of also help these our will organization and

in we quarter-to-quarter to I in continue the discussed see As past, timing. challenges

While QX proud for QX. planned actually the of performance and we there QX were that customers we in are attracted, our several orders the first of new week executed

Company entered Investment hub Capital another and to an countries. Asian JV Zhejiang a China with This we a manufacturing create venture into China. As exoskeleton Youchuang we global develop other the and XXXX, serve establish in announced agreement market in and in joint will and partner January Venture exoskeleton

unserved XXXX. growth units to double has continue with in we positioned to progress is China has expected million in will Kong, be deployed are factors across Hong there market view challenges the opportunity number that enormous flagship stroke potential customers. towards our several JV for are both more JV, settings. as We Separate of We fully community registering which this Once China. rehabilitation that and becomes leader to patients, by JV are in driving a Demographic the medical EksoGT it process and Asia sales from an Ekso the and the mobility a exoskeletons creating industrial XX Australia, the XX across become million to China. operational, currently Singapore in tremendous Bionics. APAC than team

markets to providers adoption drive inpatient, centers. community-based these our As outpatient part in with are health closely we leading and strategy, of working across care rehabilitation

will opportunity and developments advanced these the patient capability technology much-needed very population. and bring a believe excited to rehabilitation our large We are about

same Turning more our more segment. experience products a industrial with ago to manufacturing EksoWorks provide. that compared period to year the companies doubled benefits the continued our as EksoWorks Revenue than

device be to EksoWorks been while in overhead to worker's and gives proven us the involved an in products interest assisted growth demands work approach productivity. effective increasing has our endurance reducing physical future Our strong in confidence opportunities. The

over increased are than the While outside segments, automotive of more quarter we review have quarter seeing aerospace our turn with this That in financial forward. broader verticals. XXXX focused generated from Jack, segments moving We and other my I the on industrial opening the to our revenues XX% results. on to first call to concludes remarks. being demand we primary look our will build now interest

John Glenn

The related of of generated units The reflected of record breakdown in quarter of for up QX quarter, an QX $X.X $X.X we million year revenue from XXXX in $X.X rentals. approximately on in XXXX, $X.X strategy. Thank growth you, In Jack. revenue which prior units increase revenues booked million in revenue device follows: is and or continued recognized XX% the million. of million, growth $X.X the the period Ekso of million commercial med EksoGT our XX were compared first first X We as execution XXXX. to

a the units rental rented outside capital than converted We of the either rehab previously process the XX currently Bookings U.S. being have of which and X have field, units XXX orders of total shipped. represent our to or sales. units of been EksoGT of are that rentals were U.S. more four in part in Additionally, program shipped are

$XXX,XXX customer XXX%. in drive with and capital to help adoption the bridge an period continues Our $XXX,XXX a revenue rental than EksoWorks year ago, program compared a to as recognized a more We approximately of approximately in serve increase same purchase.

with for and our traction customers manufacturing gained We among EksoVest EksoZeroG the are products. pleased

profit to the of XX%. was a medical the XX%. $X.X to of million for period same gross margin continued business. our of primarily year gross for representing This gross a strong Our last our in compares gross attributed execution quarter This increase approximately is margin margin

with pleased superior progress extremely the making and service. reliability, product we are are customer cost We reduction on

for our quarter loss on million efforts sales close approximately our net or XX% total quarter share the Loss the of XX%. share margins. focus we company-wide commercialized reduction operations continuation to from was in our we $X.XX $X.X XXXX, in loss per compared quarter million from first the and a $X.X to million $X.X the reflects the of operations per increasing of for a of on quarter or to XXXX. million million to were Operating compared of the of Net organization to $X.X loss gross products. $X.X XXXX the optimize XXXX. $X.X million first quarter quarter of to initiatives expenses or of forward, was of million The for compared the for Going implemented year continue $X.X first reduction focus first last

for standing financial first quarter of to by million of our cash. first $X.X the operating Cash improving compared decrease the XXXX reducing of used $X.X activities XX% use the are a was million, or XXXX. We quarter in $X.X million of in

line JV $X were you the a under one $X.X open in $X.X today quarter. the regarding Please equity million. December for we XXXX China for our of earlier investment financing details March XX, raised first and ATM had that equity XX, connection further cash XX-Q XXXX, of Operator, at million in the quarter. filed Cash includes This $X.X of balance questions. million As million. with a now affiliates JV the from see was the the may partner

Operator

Instructions]. [Operator

Nudell first with Our from comes question SunTrust. Bruce

Tyler Knisley

of Of the can Tyler geographic breakdown you units line you this? give Bruce. on the is the for booked, medical This XX

Jack Peurach

Yes, sure.

quick. see, Let's real pull that me up let just

Adam, were see, what booked, the they? Let's XX

Unidentified Company Representative

XX U.S.

Jack Peurach

and Asia. XX, U.S., Europe X in X in

Tyler Knisley

early following talk units? And bit sales in you more for had little Okay. cycle GT quarter, the the the about you then conversions three a can the

Jack Peurach

Yes. improving process Sure. our that focused sales year, on anticipation over last process. the scaling really of year, in We've X.X

process able focus to So we benefit been purchase. a from done I and products decision who deliberate get believe quickly and we think today sales customers have our on to will very have point a to

offered started on bit see consistent and as getting We've X a them that and little to experienced something navigate a couple and we're to in budgeting As a about purchase, the and the more today you side they of that's help months to to seen market. sales that. the are shorten challenges adoption know, we're medical to process their become that more interim if months also process, a awareness rental we starting of more sales have unable around

Tyler Knisley

reps size your revenue And sales And can tell expand in your then to and the Okay. many of you process of hires? you us expectations plans describe the new the how hiring? onboarding you're on planning force, can

Jack Peurach

Great Sure. question. Yes.

X So with we year RSMs. States year last the United ended

lot be got new mature around of knowledge we're fortunate a bringing sales -- also today a we have to we've industry existing and RSMs. We in a that experience very team XX experienced but first that sales in experience ramping have think people. -- experience the and and and training on expanded equipment medical, with training We I capital

a really at getting we've we the Ekso. I And with have can good So ballpark job we them very quarter new first into out done of of sales a think speed or up productivity person think the to expectation two sales somewhere of the quickly. time training people new of of their

Tyler Knisley

That's Okay. over you the us in the then were Can to tell And helpful. units total quarter? how industrial switching placed many side.

John Glenn

Yes. units side. industrial We for XXX quarter the the that placed in

Tyler Knisley

customers? any Okay. Great. can receiving among to us of progression on of or pilot the the any regards give the updates adoption you're the programs, the feedback trailing ongoing process And then in you

Jack Peurach

Yes. Sure.

All experiencing -- ranging productivity. our with of from health products. customers The our that and to the are results worker safety are products positive piloting

So we and that see in continued success program. engagement

been -- have things think all positive. so I very the --

Tyler Knisley

you seeing us Okay. Great. last tell outside Can aerospace and you're of other verticals from? the And then for what auto me. one interest

Jack Peurach

rail not lot seen Sure. broader We've wind of manufacturing, area. lot in We've much but mining. auto and interest construction. it seen We've and solar seen seen any energy, space, construction manufacturing. in We've in We've in utilities. just Yes. a it of seen a large-scale both manufacturing interest energy, manufacturing

few -- what benefits we've the it's So is I'd on very think our a across is a application very verticals, say, very a focused general, but say -- it's got -- general these I I'd industries. product's product and

broader much So application I there's this for level technology. think sort it's on a of telling us interest

Operator

comes with question next Nathan Our from Aegis Capital. Weinstein

Nathan Weinstein

hoping a the to was of nice I couple just quarter. in job So questions. ask And

rate. starting conversion the Firstly, with

consistent said with you rental purchase on results. to I think pretty XX%, were conversion. I you guess earnings was so it XX% last

perspective, goes -- so And that decision? into what from a what customer's

Jack Peurach

that a they're that makes rents understanding commitment go a in something and ours, customer with a of not of program, and -- very a That's really unlikely a their they Yes. The it successfully we've would have implement when say -- on. focused lot all, I'd it -- implemented, commitment if it which and of time so into unit that it's forward. will first working unit continue they they

to Now period. the that initially product's they after -- the during unit, our evaluate everything is capabilities, the what happens unit, first to our commit they not rental but get capability, the that about just then company

our for they're this service be support a year How that How we I support they we making so, perspective the much How we company -- in in a product? marketing they take after our commit I clinical benefit that decision product it's lot to How trained? think conversion how the we've expecting? got So get fact team? customer. to or -- and measure a informed really we their and because of economic more pride were a high rate them from the renting

view And value a I that way not in a clinical as validation need perspective, our is really but them across-the-board. able it setting whole, support our and product they a, their their to that product to to, well us from so just working patients really, company, as the and is b delivering

Nathan Weinstein

any U.S. if When the looks greenfield knocks typically competitive competitive marketplace the are and just understand. other dynamic going there. I have competitors them? on your doors, you dynamic team like? clinics approach the And on sales what we terms the and have about think Or or what in they is rehabilitation finding delta noticed of

Jack Peurach

is therapy, of time, against physical our baseline most a care, competing heavy we're think PT, care which the standard I the fairly of of manual -- standard baseline.

competitors the this the think product are are side marketing I side, competitor. offering from field customers that our -- more the more we But more service, differentiate So have especially how we, that's exoskeleton rehab primary side, the of What the are from are pioneered from certainly space, from we there -- in understand and in and solutions. ourselves support. training

the where And where are But in market, people but comfortable about I good feel so feel I very we're very competitively competing are at. with there some other us. we in certainly about

Nathan Weinstein

size kind of guys you the the standpoint? center U.S. for fragmented in them? a think look If I and you and also the one maybe When do think And those and last the of me. terms U.S. the like Asia market they rehab about structure international EU markets, markets a the compare of to from of could just side

Jack Peurach

Yes. Sure.

countries, fragmented. a also different is needs. we Europe have So they Both in -- in Europe in fragmented different policies approach And way. and

in So Germany. outside distributors there we through go in of direct -- Germany and indirect

the we strong. So market believe there is

of had have Europe. a We in lot success

and roughly significant growth States. really the a focus Europe the United in the there's right been size now in opportunity perspective, has we but same principally size Our from also a U.S. we think is think market the

Singapore. immature China market from Asia-Pacific Kong and rehabilitation talk market, I'll Hong also a talk is is perspective. China, completely a a about particularly, different about I'll very

centralized we opportunity that appealing out jump really opportunity the the certainly think The in alone that's and in our innovative United lot that think ways. outside in is be the is China China, same different, need to of kind X.Xx rehabilitation areas technology large. rehab, outside payer the prioritization into And I because a significant which infrastructure a there's quite of Asia-Pacific, and made not social models -- decisions new be taking great their that patterns has we has then are in are active Hong of a that the times, could of means different, a partners It's really Kong the States, prioritized mind. of a being great size today. of in -- are the but really opportunity Singapore, but is that and and is So something built are in so thing so are of

all they're So different.

market. of in knowledge I from way. own having promising high their They're degree benefited but think in different, presence with I all think the a we've all local

Nathan Weinstein

could clear. go-forward a be you a unit a decision In be That's step in follow-up if one a decision, they of centralized have really come a of purchase, just that. guess I When large be that could maker function in placements? higher it other terms on to terms words positive? may

Jack Peurach

could. certainly certainly Yes, it It could.

gives could services be it I them phased, the to patients to in transactional, their they their it opportunity engage right? but more think provide lot that would it us in and a So can helping to and certainly you really yes. communities, level beyond a get evolve

Operator

for the Peurach, and time. Ladies further this remarks. back Jack questions no Mr. conference gentlemen, at turn closing are to over I'll there

Jack Peurach

you all Thank today. joining you. for Thank us

that of focused of our and pipeline of levels expanding awareness innovative and and delivering exoskeletons We're medical and deeper workers pleased going will customer industrial to organization, are sales maximizing a continue our shareholders. and this value forward. adoption customer by level the building We industrial on patients, that the momentum growing device support believe while highest

Operator

a parties concludes disconnect. This great day. today's you. conference. All Have Thank may

Ekso Bionics (EKSO) 1 May 192019 Q1 Earnings call transcript