EKSO - Earnings call transcript Q3 2020 | Ekso Bionics Holdings, Inc.

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Operator

Greetings, and welcome to Ekso Bionics Third Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

For opening remarks I would now like to turn the call over to David Carey of Lazar Partners. David. you, Thank

begin. You may

David Carey

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

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

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

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

Jack Peurach

everyone Thanks, us thanks joining David. to today. And for

to I'd improved their stroke, through forefront prioritize recognize for remains traumatic members time. need recovering for brain for serving at and commitment like support team we patients First, the spinal cord and our collectively our The customers care this as Ekso challenging continued injuries injuries. from

our team that is Inpatient recognize Our centers standard Ekso adopting at our the are care groundbreaking patient better exoskeleton. with rehabilitation of delivers for worldwide excellent technologies elevating outcomes. our rehab they EksoNR

latest related back. fatigue In generated benefits the lessen our reduce are workers and exoskeleton showcasing solutions industrial on of settings business newly enthusiasm. benefits medical customer side settings. This provides industrial lower strong the and productivity, shoulder has the the strain of both our advancement we to our total, key and already to in On exoskeleton industrial increase introduced [ph] different in injuries

solid commercial are COVID We levels sequential that as by billion with customers. to raised Led third our leveraging QX our pleased challenges. the of to related virtual successfully achieved remain we XX% the by increase approach to we navigate quarter continue team, engagement $X.X a customer revenues we over connected

of result of third XX% same year. last the efforts, our a As compared quarter we revenues to in the period achieved

and of world. rural recovery however, early we COVID to the late the where and the the at around path we a rise country in of are the Given cases were pandemic we across beginning March on April, with believe recent

new XX bookings We are third for quarter, our We units. outlook. in delayed cautiously total orders the near-term in XX have bookings been of most Since canceled pandemic. including EksoNR because and optimistic the not generated

quarter. XX% the above third second in the percentage overall major said record quarter was which A solid. margin, remains points was we pipeline order gross in our the Our achievement seven

resulting well of terms performance, In our to quarterly costs operational use continue of cash. the manage lowest we

have in resulted margin a actions expansion. us more Our has and which leaner business efficient made

previously solid subsequent these way from team addition proud operational proceeds flexibility, position. financing challenging completed of put and and in financial us under strategic war our to I'm cash circumstances. delivered exercises, our the In our balance strengthened and our

is Our a adaptive an commercial difference. will medical the turn device job the global sales time, strategy. call done believe over Bill this and to At provide team getting engagement customer segment a of we update is to and will commercialization approach making who our meaningful I

Bill Shaw

QX globe. to we the And performance pleased team's proud expected Ekso as I'm program benefits Thank our better of report you, commercial focused extending of the results. Jack. We're across kept than on

Our options, expand subscription is model. helps multiple base believe sale facilitate we working. that Altogether, approach our new our commercial strategic install continues by acquisition leveraging team to including our a

continue We network about moving our and our XXXX. excited with strategy, are into gain to prospects traction

quarters moving briefly now our news about was touch pilot starting of our due pandemic. me the examples specific success. first some QX. shared Let new are with we achieving forward several We pilot on how vibrant We're health to which previously care, in and delayed program

Sunnyview and the Kylie, partners of internal following and only EksoNR to incredible injury. was for accident utilize brain brain rehabilitation and XXXX, hospital, journey Kylie care help of treatment programs. their Kessler FDA traumatic to purchased serious launch advance story Kessler a continue a suffering Brain another clinical from Dr. motorcycle hospital work highly Research Sunnyview part The as they healthcare Kindred with and injury. research brain approved We Senior one Foundation our Injuries an we in that Thursday, EksoNR clinical Ekso an a of Bionics additional acquired Today, highlight airlifted the at will of hosting Scientist first exoskeleton injuries, attended is how In a a serious to XX, webinar our success patient initiative. hospital, transitional support Ekso one organization to Karen be our with and series. a of and in is on November the a Acquired at relationship webinar with of on injury. and patient was fractures new October first subscription multiple Nolan, with

We gain delivered the commercial sales by way organization, our of sales our We're team $X.X revenue, in as compared of third to first therapy Sunnyview family in success. While we continues million transferred still the the a she has using including period quarter. recovering. In progression XX the a and health Sunnyview said she amazing XXXX well leading team, walked continued Kylie US Ekso component maybe and strength same international Sunnyview's several Hospital XXXX. strong regions team in in showing and the becoming $X.X a evidenced Erica in she with of physical Rehabilitation Kylie the APAC the regions, was the second woke in coma, million EMEA quarter the amazing. to the the Ekso now Outside G treatment in remarkably session outpatient the done. quarter. made units more routinely. million with key highlighting her from third the has efficient recovered steps, is Sunnyview up certain shortening continued XXXX America she's approximately of of eventually The support of and We The walking traction in in from steps and in facility. $X wish cycle, EksoNR help and sold and North was therapists with

turn strategies in US outlook Looking the with broad will regarding implemented and cases person's commercial and ahead, remain are improving, Peurach. believe our the reach human active with the We to interactions call our the our uptake while allow we in recovery motion, mission of Europe. accelerate time, helping we drive to customers, Jack of overall is sales customer ability us remain to our our team the a movement. to this achieve COVID amplify us cautious enabling At to forward, CEO, like back which I'd to

Jack Peurach

Bill. Thanks,

to the our update an call turn Jack on to I'd I like Glenn, industrial segment. Before provide

Ekso to technologies customers and worker industrial technologies innovative they have manufacturing. who way consistent think an pool. construction Our benefit increased the and labor become expanded injuries and labor Customers productivity, use more accustomed that transform from reduced our Industrial fatigue and about

Builders, our industrial August the assistive generation in that and body EVO, We fronts a general human all EVO and our by next that construction the the step the in more productivity services construction many boosting enthusiastic employee endurance have several on related taken helps processing in of already with productivity of form response costs new of across construction, was for This an largest the customers we improving received with vertical our EGM upper customer developed the as making order and variety is of It a in faced company health EVO next to EVO launch by EVO, lowering delivering workers. first provides morning, challenges has capabilities. is augment these of the customer injuries, EVO such fatigue date. collaboration and address morale. reducing construction workforce. industry to risk addresses predictable unique announced challenges represents contractor exoskeleton and logistics. pilots orders food verticals,

pleased to exciting are this providing to of look We forward deliver this to product. and updates EGM more solution

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

Jack Glenn

reduce cash growth Jack. company's margin record our had of quarter expense by use history you, to We a achieving Thank in and we the volumes. prudent management. quarterly an EksoNR gross a lowest in solid overall driven level the revenue sequential increase Operationally, through generated

to the million, third third to EksoNR of financial $X.X Now of our summary and million $X.X the compared on quarter results, of quarter $X.X million second third XXXX. for in generated XXXX quarter revenue of the quarter to compared

Our a gross a XX% EVO driven million overall of increased gross average higher This margin medical and approximately ago. of was proportion period an composition, profit unit XX% margin introduction of year and lower revenue was in the $X.X gross record prices $X.X device higher costs, compared gross for by EksoNR the million, same of of service for the third production increase representing for profit in quarter an selling markets. sales to

our cost cash actions our environment align operating expenses. and with significantly our early to lower preserve operating enabled to Our current us the structure

of $X.X a quarter Our million, or million operating were for third to reduction XXXX approximately about the of of quarter expenses $X.X third XX%. million, $X.X XXXX the for compared

gain revaluation warrants share For $X.XX of third liabilities of the and period compared revaluation $X.X million was warrants for of quarter issued a to a in $X.XX in benefited per income the the to warrants, in million basic issued $X.X from we which gain or same three of associated of to revaluation May the of net diluted XXXX XXXX. or million recorded per months and share, $X.X share, income XXXX ended per third $X.XX XXXX September the loss a XXXX, warrant for $X.X XX XXXX in and compared Net XXXX, due with quarter XXXX on the XXXX. million

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

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

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

for our includes As filed exercise open details a XX $X.X of regarding quarter. Please XXXX, proceeds see from million line balance the today the we net strong quarter. the further This Operator, of third you December for had $XX.X warrants may million. in of XX-Q earlier the now cash of questions.

Operator

Thank you.

will session. conducting proceed question H.C. a Instructions] be question [Operator of RK We question. from Our comes first now and with your Ramakanth line Wainwright, answer with please

RK Ramakanth

to nice the direction. and going congratulations Jack you. in be It's that path see to I quarter. Thank Overall, understand great cautious the potentially and as on the well. Jack, quarter seems evening, a optimism, recovery you're Good really to the on here. right

our In terms of which itself, out of new. had the believe you the in said I were placements, XX placements XX

So cycle, as is time sale? to takes see? decline time between initial any in And how in terms know that the point you you of are of this terms to along, the of Or the something to touch if seeing goes is you the and it point time still case, getting can like the would optimal most have there? it you squeeze out some sales

Jack Peurach

making satisfied mostly on anything, was cycle the right capability. no, customer sales doing time, of is extended there of time given that thanks just distance, talk some a But we're to doing associated We've are our decision been with product. are a I'll costs we're turn question. this shorten now. overall, shortening - on not reduce this the Peurach, and do that about the on selling and and okay, of to But, over of some the cycle, that working with And, over both Hey to I the opportunity those if But think it, the I certainly we'll for Jack we're I'd RK, cycle, still period lot probably during little Bill. say, things still and Bill. think sales a things bit. to there's lot side, the help the

Bill Shaw

the in of adoption, end market technology Hey, of selling a RK. steps. advanced especially is just general, it takes front What lot in I'd say

to XX you So lot there's see you on longer a different get to stakeholders And months three of typically, maybe And from to on months on have a short board. side. anything the I side, know starts to with a different every with job our a swing. almost But deal that involved do accelerate that's and that, ways it. large But there's clinical really support. we're couple ends it's

the call, or to the validate justify to So there, have support program of really we start we our, just is what from accelerate helping we really have and clinical the champions, way value. by

So and finding whether sooner. executive them group, done get it's different will important acquisition options is ROI, help the whatever then the that efficiency, something operational to

environment, So having cycle there's as constraints. our you can right imagine, accelerate little is what's just this more capital now, flexible sales better, some actually us a in options. helped But bit

of with option types or sooner us something will doing bit our conversations for the that's and terms, a rental to helping into with whether So really program, transaction, that about little those purchase get them. subscription, executives options are aligning an find work

RK Ramakanth

Bill, also then talking about And and good. APAC Very you're India.

is this heard first think I time I've the India.

So, it's sense How and countries the in to or into is these this? line US India be more this how doing business. getting sustainable see - the less you the countries good Is other and do outside is? or need to that sustainable

Bill Shaw

Europe, India. mostly real So partner quick EMEA let we a or have do actually in just that, me Europe, to correct it's although

on having are obviously, we So a to focused global your question, answer presence.

very we focused Asia, a going but within approach, very countries we make and But on, to there's certain And the we'll that so right sure evaluate the most on basis. continue in on go-forward want it's Europe we're that what focused sense countries we're have throughout first deeper markets to we've methodical been to learning make invest and globe, do a in the more. partners then

RK Ramakanth

operating operating Jack for of done, so to we at down And more Glenn. Especially how that going margin? of starting then get that to is JNA, in $X.X the Obviously, Okay, or out is from million now, to a see decent QX one $X.X almost in clip much see question that thank margin. nice the uptick that you. expenses, the line it's in

Jack Glenn

That's for sure.

as was feel the we've the we as the about that good noted that the even cash company. far obviously, burn as record burn quarter, in really you us, So, had it a of the history for in lowest the

that this, standpoint, more the have we comfortable forward. infrastructure continue we progress have G&A especially been we think would now and I to pretty we we with side right So the we margin From now, look think in at, the say that have, become the areas in great I authentic from we're efficient, and going can even but making standpoint the structure right certainly, that there.

I going So stable. remain that's say would probably fairly to

RK Ramakanth

And again. Thank you. congratulations,

Operator

are this to There the over you. back floor questions. I'd time, Mr. like further no for Thank turn At remarks. closing to Peurach

Jack Peurach

Gavin you, joining Thank [ph]. us And you for all today. thank

and commercial Before iterator levels closing by realizing Led the our trends I'd quarter improving team, highlights. revenue like call, the to customer read of engagement. through higher we're

While something prior of take the opportunities both timing Operationally, increasing will in gross the the and to adoption period. we internationally, significantly pipeline advantage lowered sales, by and the record costs impact user achieved track we predictability domestically continue COVID increase and margins year our look in we from education. and may to future cases of is and

solid a cash taking As leader organization achieve expansion measures and prudent a well positioned margin with financially. we're balance, believe were we to

we launched feedback generation based positive trailblazing we've our vest from a customers on point, from we've their was who next this exoskeleton excellent built use that pleased received Evo. Evo, response To to and Lastly, are have our generated employees technology.

We product on come. innovative quarters this in share will to more

patients, delivering forward, and you customers for today. shareholders. Going value long committed joining remain term us to Thank we for

Operator

teleconference. concludes This today's

day. disconnect participation at you time. your and have this Thank for lines may a You your wonderful

Ekso Bionics (EKSO) 29 Oct 202020 Q3 Earnings call transcript