EKSO - Earnings call transcript Q2 2020 | Ekso Bionics Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Ekso Bionics Second Quarter 2020 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. to of conference Lazar like host, to now Carey David Partners. would turn over the your I Please begin.

David Carey

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

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

call operational regulatory risks statements, expectations, based current forward-looking financial assumptions. expectations should Securities begin, estimates be operations, Reform material the and governing implied like These you the upon this management that uncertainties Safe these All XXXX. the would anticipated products landscape materially of we are pursuant those differ statements. that of will or these events actual make undue securities could from or and be include within forward-looking to results Harbor that Before statements management's Accordingly, statements. remind Act Litigation you provisions made various federal of including reliance historical and are place our or involve deemed I should to to our not statements forward-looking on that our statements not by in to cause facts which Any future the statements call or Private meaning are this of law, statements the contained during of forward-looking statements.

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

Jack Peurach

of joining will for segment to by thanks Thanks, who items pass quarter to strategy. other turning an for summary segment call of Then a Bill second industrial commercial provide before impacted our the and of medical detailed the discussing the and employees David. the safety more performance, an device everyone overview COVID-XX update today. today's of the first pandemic of archiving the non-essential our And emergence Jack At patients results. provide second financial the start then moving of Glenn by I’d action remotely. our work to call call our us We their overall on to and second I’ll the and end like priorities employees, our purchasing and quarter all customers quarter, and quarter health took entering Ekso decisions immediate Ekso by customers. all our

and Additionally, to designed reduce sequential strategic of we margin of existing quarterly second virtual and of representing quarter implemented and a reduction first million, $X.X we increase XX%. operational adjusted needs. to included more interaction and workforce our a a customer series match measures operations to transitioning This with expenses of our Thanks potential record gross a of flexibility, revenues to customers. and million quarter generated $X.X from revenues

of very subsequent enhanced our unforeseen from warrant proceeds raising of and quarter we and performance Ekso the recent I’m strong responded to execution we circumstances, Under in by way our Additionally, and proud financial gross difficult the our dedication million team, $XX.X second these approximately challenge. the position reflects exercises. and financings

delayed the not allows and our us As most we that previously maintain which stated, to feedback indicated customers pipeline. are strong from canceled, orders

around our team the to strategy remains benefits the interaction And continue COVID discussions regional reduces remain selling need industrial we both and exoskeleton quarter, while initiate hotspots. some to with for during settings. improved virtual in-person performance our our the due while ability the connected of there solutions allowing in Our and through medical customers to challenges

manage At the will call to this update As global weather costs continue will our provide Bill turn crisis. on medical I this device to time, prudently over will strategy. who our commercialization segment such, and we an to

Bill Shaw

you, Thank Jack.

me efforts challenging a at a Ekso by begin remarkable Let focus keep complimenting their our during for team time. to mission-driven

led We Our a delivered rental internationally acquisitions. level pleased allowed the as second the and to orders unique related seven to to impact conversion by ability and of pleased rental the generated at the high rate capabilities challenging across that U.S. and still quarter, the were led with all X.X in executed we to to quickly It at us uncertainties conversions, demonstrate more virtual the portfolio. powerful million orders commercial were delayed EksoHealth a the we were EMEA shutdowns their was team new COVID country. quarter and regions XX%. U.S. seven In environment Considering regions our the our pandemic, earlier broad-based product a adapt APAC in in that revenue, of keeping

continually several customers remain in potential engaged we actively monitor the on with deals. While uptick COVID we cases,

adoption challenges and Ekso expect on-site of Bionics. customers throughout have world. maintained driving clinical pandemic, placed work continue our gain with focus more pilot level units instituted approximately teams have their on brought Post together a continue We with globally network. the to Medical, customer with carefully as spite We evidenced now Acute virtual to and to and our our as service traction from training by support In again. strategy on the programs convert network our we’ll the Ekso training by collaboration begun of XXX We we three

estimated exoskeleton FDA clearance ABI neurorehabilitation broadens both the of are category for XX causes. clearance our represent receive injury broadest non-TBI use of injury, to robotic an market patients X.X patients first acquired clinicians opportunity to annual EksoNR pleased TBI This the an and as EksoNR is reinforces ABI. of incidence in use market. device our exoskeleton receive million TBI XXX(k) within and brain indication the rehabilitation is to brain innovative U.S. from or to We FDA patients million clearance for the and injury brain the the combined and with with globally. EksoNR This commitment of market traumatic with comprised the or the stroke and

Over injury Today, few a Phoenix, young recovered quarters, traumatic fracture success affect that that woman have story the that benefit patients of have her as spinal injury we highlight not a past been St. in-patient cervical an the a sharing Institute Neurological rehabilitation product. with a a Joseph car patient recovered traumatic from brain and as at a stories Ekso function. of of center did cord spine accident brain Riley Barrow sustained Arizona. in a was in is who we well

brain the was use balance With speak, a therapeutic to experience the unsuccessful. Ekso engagement, stages into fully a Barrow’s support, with her physical team engage successful various After to interventions Ekso ICU center, therapeutic trunk create of progressed Ekso to proved in by into to and Riley she provided functional which the of being continued brain As physical amplifying stories trialed injury. progressed inability was therapist Riley Ekso, in-patient able regained discharged intuitive success, the and Due remarkable that to traumatic interventions. trialed rehab patient her able the recovery. functional are ability, our and intrinsic introduced rehabilitation therapist Despite ambulation. With functional rehab, many her deficits an to Ekso. out software in-patient and of communication low recovery. through strategy to motion. her outpatient that create stimulate vision in and her regained inspire of from These are cognition assistance taps ambulation two primary response Ekso and human walking

cases. of with Looking the ahead, challenging we a anticipate environment uptick COVID

strong, Our to is future predict. the but opportunities remains difficult of pipeline

on back We and patients will flexible to and time, turn customers. our to Peurach. the Jack committed like business this continue CEO, supporting to call be I’d to At offerings

Jack Peurach

Thanks, Bill.

pandemic. the to purchasing navigate turn second quickly on excited Glenn, near-term and has in Jack Starting I’d to with call like an business our a I customers. delayed industrial, new customers the with conditions, barriers, and service allowing through generated Ekso’s already offering an service technology this we joint new without to are adoption adapting update were To as to decisions access to segment traction challenging to customers quarter continue upfront provide By venture. purchase. alleviate China capital industrial launch the model capital Before

Our to productivity exchange their driving a continues high-value and safety in focus on based be devices adoption regarding on benefits. EksoWorks

calls. We the and initial are updates sharing forward interests future on to pleased with additional look customer

to Now JV. our turning China

and and CFIUS JV into regarding not working requires we the company be revenue the the among XX, JV China announced role during partners CFIUS and with we a the of of JV. with security mitigated. other to review the received determined it's national together the could have termination notice terms The cooperatively July things agreements a of the operations termination its with on of Security connection of Agreement. in Agreement, JV material implement the a The the the partners our May, entered should JV JV impact with National National company's in the is CFIUS Security remainder XXXX. that from transaction. not which On concerns As

our of to initiatives in on targets ability record margins. build to cost confident QX are strength our alternative gross through achieve We the our reduction

financial the results. second over turn call quarter to Jack to will I Glenn Now, review our

Jack Glenn

achieved growth Thank versus the you, sequential first we Jack. Against of the the challenging quarter. backdrop pandemic, revenue

in our growth, this remain of second for compared pressure orders compared customers pandemic. to to revenues during and generated $X.X of Ekso XXXX. as with delayed $X.X XXXX the million million manage pleased under are quarter we revenues second $X.X and business prepare million their of While some the for to quarter first the quarter

compared the profit million profit margin period million, approximately ago. year of $X.X for a the same was a gross of XX% gross margin representing XX% record for to $X.X Our gross a second and gross of quarter

for million XXXX approximately navigate $X.X operating mentioned, challenging refocused of to to compared XXXX, million second through quarter or cost XX%. of quarter Operating about structure As this Jack the a of we for the were million second $X.X reduction $X.X expenses our environment.

$X.X months we was share May per of was period revaluation the XXXX, and $XX.X warrants gain $X.X the in liabilities issued warrants, of revaluation a loss same XX, the the Net million in with ended June the XXXX in net three loss of $X.X XXXX, quarter XXXX second due to which the warrants to second $X.XX and issued a million on XXXX. $X.XX a recorded quarter the million of or XXXX of XXXX compared warrant or for For XXXX. per loss by of for of revaluation compared million share to XXXX, impacted in associated

our excluding to compared charges XXXX. and period $X.X to million million cash in continue restructuring We the to adapt operations, in cash current $X.X utilization to in use market same conditions reduce of from

in $X.X same was Gross the six first period XXXX months XXXX. Turning compared XXXX million the million to six of Gross period margin $X.X of of expenses million of year-to-date gross Operating results, compared six a for XX% from for first in increased XXXX XX% the the first XX% of same million, million to profit compared in for period decrease about $X.X XXXX. XXXX. the $X.X the to $X.X for for the prior to same of period. the XXXX were months or revenue was for profit first months $X.X months year for million six

the million XXXX for first the the million of million first Cash in million $X.X Net revaluation XXXX, of share gain XXXX a recorded $X.X the XXXX months also of activities operating XXXX, in XXXX the and XXXX. by May in million with compared first of compared $X.X was loss share loss to six XXXX. per XX, same we the compared or liabilities six warrants $X.X XXXX million in $X.X for in months in months warrants of same period and of six in revaluation XXXX. $X.XX warrant the for the XXXX associated to issued or the $X.XX June on warrants For period $XX.X issued period to for same per used impacted to due was revaluation a ended

quarter. to cash In see million a gross corporate for a and June had Operator, net the combined direct As filed to proceeds further $XX.X offerings. open and current and of XX, purposes details July, be of exercise $XX.X of offerings now June offering the raised will the strengthened we previous from from a we The successfully for position cash Please million. related balance and XXXX, warrants registered and needs. earlier capital proceeds working general for these used line XX-Q today may meet questions. the our our you regarding in

Operator

Instructions]. time, be this session. question-and-answer At a sir. you, Thank conducting we’ll [Operator

Ramakanth from comes today of question H.C. first Wainwright. your Our with Please question. proceed

Swayampakula Ramakanth

XXX(k). afternoon, the EksoNR and the of questions. Thank you. on Jack Congratulations receiving Good A couple Jack. quick

first I’m helpful. if trying more that of the or way different the to I on any and EksoNR – from to that any this your just have install would The believe out the Especially TBI patients. first receiving figure Any of the devices? any commentary the installed how XXX(k), update there commercialization you be reception and to suited is is other

Jack Peurach

RK. is This Sure. Hi, Jack Peurach.

for for all to standard Just our cleared injury to also neurological product It is the be diagnosing. EksoNR brain clarification, applied rehabilitation. acquired was

the same So cord product just product is clarification. stroke previously spinal cleared itself the was that for and for

little that in-patient in-patient quickly I’ll Often of their the through also sort patient very rehab a provide population. facilities that is ask comes our stroke who a critical to rehab introduce different part is color. is customers having facilities see impact those injury brain I’ll Bill patient a variety major are a Now of condition that and of more their types but treat, facilities. But

that allows the more a So on ABI rehab where are some of label towards patients, this geared use opens cases to on facilities opportunity new or in-patient targeted are up those there much type this product in with set or TBI customers. And their population. them patient a then of broader

in from to the really Maybe information ask throw bit that’s he we’ve a cares it. Bill So to? seen impact little more if I’ll

Bill Shaw

Jack. Yes, absolutely,

to a just focus standpoint, adoption technology. I’d our patients give to is right, commercial driving So say, strategy from access our

example. an few in forward with a centers organization. broadens were they just indication, we didn’t this working we We’ll you because conversation our to give but Colorado with that have There’s So willing actually this commercial for the weren’t us. move

with new maybe to So didn’t there’s weren’t opportunities for customers this have of us indication. indication reengage moving specific because that comfortable we forward, that because

opportunities it kind sure. to an of say, approach overall, after I’d our customers. broaden just for But, and us to we allows So do the conversation uptick see just to of go overall

Swayampakula Ramakanth

much very you color. Thank Okay. for additional that

some touch how of to In trials could little you are positive was a strategy, the have working for point. bit there that But a of effort larger Obviously how a into it there putting remarks. said network color going And networking be takes to much do strategy you some as a that additional terms currently? some an sell us in provide How are idea obviously the your that’s will commentary how and and is you believe at trials sale? of long I into working? these on convert you

Bill Shaw

Yes, sure.

Jack Peurach

Yes --

Bill Shaw

Sorry, go ahead, Jack.

Jack Peurach

The introduce just Bill. trials do quickly pilots it market, to number and we and to going I’m it a still Okay. then pass a underway. strategy or is part go have network important of very our to of

the waiting as worked models more services – get flexible through for lot their are important adoption efficient way. more a different to a drive and fit it get sales to to be start set current a and to very a and Some crisis. on in them process to We’ve our whether and allow COVID broader broader free in for or providing way solutions they different, up, is technology into get them us situation. a also But it specific acquisition quick customers of financing efficient developing more

talk So and I a to advance I I’ll about as try be think specifics here. let as think Bill us little lot well helped these. flexible that’s we as as Bill? try we to possible a

Bill Shaw

level the it the these a really sure that key Jack. that that we’re to important we well, is we’re at engage to really I’ve really Well, just the I are aligning executives think can programs developing, that answered them. you metrics with make add working only IDNs, The had with higher

really those and focusing back and it developing step programs think Jack piece But future a the for programmatic on success. taking answered I So well.

Swayampakula Ramakanth

that then from And COVID-XX. is work second used state because Okay. the me as the quarter the didn’t as well international last during question it you markets did to of

So what international also are only domestic. but – you not

the that quarter post this up? are you how how quarter seeing as month so But for you the things idea with an pretty like are the shape have the are the we progressing can in opened can places of schools you seeing things things so, to Obviously hear sense, be opening saying or what So close States last in some not they that internationally of like that. United in and commentary fluid to I but up, would your are some will I still think up on that. would folks

Jack Peurach

cases. even happening and many is dependent the Yes, regionally what’s situation in upon really locally or

you Europe places. U.S., if is Within across in for true both Europe different and The So U.S., APAC. APAC. look and same it’s different

seeing our certainly rehab are happening. from we’re However, we activity. customers’ perspective, And seeing

And are happens, but all is back business. back of so in opening most that are of our patient And Not full in pretty on volume. to levels them, as getting side them customers up. activity most and the now of of our back business also

So I cautious. very still would say that we’re

up – on activity activity it’s color still than extreme in – are think seeing regions this with ways add We’re place so in that. seeing it’s I people a that cautioning we’re But it’s bit. Bill dealing more I’ll others some less where more different in let little pick intense. the in [ph] still

some Bill, they’re engaged. think can maybe that. I So you add specifics And to more

Bill Shaw

we’ve areas. But Europe train rebounding some centers certain Germany. think are impacting over COVID in-patient and centers just uptick and in specific U.S. those just cases obviously get regions, minimizing I’d our with where a there as operations some to ability few for I’ll our in pretty or broad I seen with it’s the Okay. months. say right situations the on site speak well in of brush, now past

engaged see well. of cases they’re uptick started our nicely, kind to virtual but in as up starting customers. really We to slight have done and driving selling keeping they’ve open also a And job with nice strategy

the just us, going and keeping just conversations really keeping we’re engaged, our to be trying flexible with So for offerings.

there’s if it seen business lost, think we is sales delayed I not anything, just But cycles any of this. have So maybe out delayed.

Swayampakula Ramakanth

Thank you talk to and folks for my all soon. taking questions your

Jack Peurach

Thanks, RK.

Bill Shaw

Thank you, RK.

Operator

[Operator Instructions].

question. Nathan Please question your next Aegis Capital. proceed of comes with Our from Weinstein

Nathan Weinstein

you nice little question been KOL in And in was Hi, Jack And through maybe the of And lot a increase and up It the than quarter. of posts, types those my digital that level what see Jack. from environment. from could for challenging noticed the to guys. an and activities approaching media to doing actually things ended market engagement one bang I’ve it a progress the expecting those of of your Thanks taking there’s better a kind from I for social speak just the amidst say you or engagement in calls, right is Is about of the bit kind then that? company? buck channels? you see business do of

Jack Peurach

both gives a with question. mechanism We’ve our in generated lot with we connected maintained great to And touch Ekso meaningful in of of way we Okay, or a through and are of stay Bionics a a to relationships about extremely working webinars and different and our educational potential customers industry. customers the Obviously, well how And to creative customers. formats really us to been something lot that lot something We’ve a way relationships it to with our existing that’s about hard sort received. new other them. either very be related stay customers. done of

efficient really of surprising, just of and maybe table lot come has an a broaden seat the effective of think out way at I So as that discussions. strength on our it’s and voice these to a the a positive been this

important general. But and interacting in I’ll way been that. Bill expect a this terms our what In we’ve maybe business directly, to the with more has will in how part of customers industry let Bill? this been our the really impact to talk of

Bill Shaw

but Nathan. it, we from customers, The or really thing – I is approach pathway. add Hi, just our more can go-to-market I for the only think the I’d us learn Jack we can evolve said more our

more different areas. we some is advisory segments up can we we group going or better advisory sure value some setting group, of are decisions to example we’re clinical one executive commercial help we market serve groups. so boards, about have learn test our arm in kind adding that or pressure it’s our and or the different of team definitely the it’s advisory the And councils a and ideas, an us make Whether make business right so to on strategies our that

Nathan Weinstein

color Bill appreciate Jack Great. and there. Thanks, it. for Much the

Jack Peurach

Nathan. Thanks,

Operator

remarks. this There time. Jack are would the back no closing additional at like turn call I questions to to Peurach for

Jack Peurach

you we adjust flexible Moreover, our launch industry all proud for these company our was strong testament In cost today. hard quarter our industrial pleased closing, I’m position. financings, times. Breakthrough. a for through cash that our certainly Company were and of to a by as MedTech team. service Bionics deliver support Ekso Thank able the the joining results revenue online innovative together Winning innovative unique and Healthcare challenging the to with I’m flexibility our operational to recognized growth, in sequential for this is devices. and entire our Robotics pipeline, us us and, achieve new offering a structure is enabled in that exoskeleton approach award the training Best leading managing it our for recent strong customers work order the Ekso Bionics maintain

outlook for serve, long-term hope healthy remain customers and and you near-term we creative value the we you impact our safe. may shareholders. and pandemic Thank I for deliver today. joining family the us that customers committed the stay for While patients, to and your

Operator

conference. This today’s concludes

time. at your this lines you your Thank disconnect may for participation. You

Ekso Bionics (EKSO) 30 Jul 202020 Q2 Earnings call transcript