EKSO - Earnings call transcript Q4 2020 | Ekso Bionics Holdings, Inc.

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Operator

Greetings, and welcome to Ekso Bionics' Fourth Quarter 2020 Financial Results Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Matt Steinberg, of Lazar Finn Partners. Thank you.

You may begin.

Matt Steinberg

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

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

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

disclaims or except or whether information businesses, law, to XXXX. the is today, or future outlook XX, the of February 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 of financial required update with the Ekso with contains as risks call description of new forward-looking events or because now of Exchange

Jack Peurach

for I'd solutions recovering entire Thanks, today. across stroke, meaningful brain commitment injuries. acknowledge us and thanks customers start bring patients us of and our our spinal Their our the allowed organization. serving Matt. to everybody to To team cord and And continue to from joining like dedication traumatic

unique technology Our to tens steps of standard are neuro over date. proud that million the elevates thousands for has to recognize And we enabled growing a to patients of of see of care XXX physicians Ekso rehabilitation. number take

fourth are raising pleased subscription pressure. remained this in clinical our performance, facility long-term discuss purchases. rehabilitation customers patient strong facilitating and exoskeleton teams levels Now our but more the creating the execution innovative introduction with selling getting result The in hospital By traction subscriptions of and physician is capital EksoNR model of will detail and among awareness opportunities relationships under our we budgets process, their shortly, early Bill turning our of are more solid we whose expect using a part that future in our will the commercial of capital to or progress. devices continued community. quarter long-term the as in review care customer medical engagement expanding we

$X.X For million announcement. with the we revenue recorded quarter of preliminary fourth in our line

and the created global quarter fourth While, hospitalizations in space COVID the accelerating rising initial the and rehabilitation beginning in challenging selling cases recovery of quarter, in we quarter third signs environment. into saw a second the

for including XX subscription During the quarter bookings, total EksoNR units. we recorded

a XXXX XX year full to the XX included which we total nine bookings, rentals converted For of subscription and generated units sales.

a adapt broad upper excitement on body our pandemic, we expectations, full the Operationally, following recent surgical are variety the look We Supported a proceeds forward leaner, EVO early could verticals this more customer at the EVO business the now of invest offering, with the a we of penetrating of positioned market. and pleased financial changing industry result, quarter believe are by forward. growth with dramatically of onset efficient market. across taking applications to are quickly moving the to its has we market conditions, front, organization. industrial devices a the operations to well that as exoskeleton On interest from in by our action liner our first we range current

for medical to commercialization our Now segment call global we'd an update like and Bill over the turn strategy. to on

Bill Shaw

All right, thank Jack. you,

team spite simpler well overcoming resilient as increasing related in them commercial access making remaining by adopt been solutions. actions virtual of and with webinars. we our the has to Our benefits COVID to it to an for showcase In a selling leading as pandemic persistent of customers, the educational engaged challenges to program and exo solutions their the undertook challenges, exoskeleton of series

to gait make robotic a strategic are the webinars to further more building for We are of who clinicians, partnerships therapy exploring platform benefits these also physicians available illustrate a and program. widely

are to cases We hopeful COVID in in-person interactions live fully now site decrease. uptick team see are that and an vaccinated will continue on is at hospitalizations active and clinical centers, rehab to our And that going we forward. expect

of and increase the In previous requests three from also visits, potential of We've engagement in first customers. media combined. now are social an web XXXX experienced demo to fact, onsite compared to demos we in quarters close number quarter the the

we training outlook, effects mitigating of address opportunities, While restrictions. about well cautiously are to pipeline COVID-related of us the the future positioned successful sessions, our travel lockdowns leave the existing virtual optimistic first COVID or completion current

their technology. budgetary is The and model helps In our to subscription faster this of Well, greater are access partners. easier sure roughly is one revenue. particular of added to sales conversions long-term Ekso this of one strengthen addition introduction we have pressures. seeing decisions while importance remove Not stable model more site. from they relationships, shorter creating capital only base barriers customer as adoption our our led cycles. also since Moreover, are helps network has a increased face third to to customers, to engaging more sales our does with predictable focus of it on this our facilitate adoption and users develop than interest and recurring device make And

on month health to BG systems I'm partnership and Our one Hospital the to Group. subscription report our as we we our by offering, grow network Germany, continued global our operators. made sharing are strength network, to focus add on we more come. the we successful in with new and past, in multi-site we look executed then toward site information proving position with would now, in our pilot In pilots We program. this operators forward successful supported additional network We successful the pilots, region. is But BGH pleased the in progress XXXX. generated these to sites of largest pilot. after Internationally, subscription EMEA one to throughout with especially look with working

$X.X fourth delivered we in revenue. approximately of quarter health For XXXX, the million Ekso

renewal delay Our XX%. throughout several remained hospitalizations The of in orders the cases resulted at into conversion and rate XXXX. COVID a strong quarter increase in and

was with by million patient lab. the physical have exciting team taken ovation walk encouraging began that Tyler Ekso Tyler and by with XXXX, at that or hitting a that tremendous with have early rehabilitation Today, Omaha, orders received introduced Tyler in in no Ekso independently. device. how followed QLI their The with have million injuries. as surrounded Tyler However, of their was an as up first recover QLI’s Brock, QLI’s many multiple milestone partnership as helped patients been for XX-year-old cord associates. like clinical remarkable spinal staff his They one cord achieved Ekso the he and announcement from spinal a injury brain he facility. stroke, an acquired for Nebraska, QLI, exoskeleton cancelled. devices his QLI’s step traumatic rehab with at Quality their since an to step one recovery we customer Institute, occasion Life share completed training, relearns sign he milestone and

are We to to and for years forward continuing to our mission providing QLI proud relationship rehab many to come. on look life-changing in their support

facilities, a selling that regional changing remain that hospitals will monitor cases quickly more so engaged environment. We Going organization rapidly adapt continue its exited as much can to customers. we can with and forward, closely we year and on and to prospective impact a rehab agile the COVID current

committed Our of adoption team EksoNR access patients is to more motivated providing to driving our or our commercial highly and platform. advance

Peurach. strategy, this We leveraging engagement our expect the Jack conducting activities to turn to onsite CEO, and I'd back call time, momentum virtual At building on more to strategy. the this achieve by our our network like of

Jack Peurach

update Bill. I’d market $X industrial provide segment. greater than like with as industrial verticals targeted opportunity our you, across an billion on the our industry We to annually. the view Thank progress

EVO challenges have was designed construction industrial Our and risk by initial and workers. food trends order seen already early devices. include we for address promising health to our target where EVO segments processing, specifically faced productivity

Challenges We notwithstanding, are customer far. a usability, feedback around pleased encouraged of customer so seeing the by of interest. the launch high augmentation and are the pandemic we with level durability, are strength

utilization Given provides meet the customer our designed so and challenges budget options businesses, purchasing facing subscription flexible to many needs. model

game look just utilities, not also verticals, technology, Going verticals. and forward, we our to changing but those to bring logistics to mining warehousing,

over fourth call review to quarter will I Now, our Jack full financial Glenn results. to the and turn year

Jack Glenn

compared Ekso quarter fourth for quarter of Jack. revenues the million you, generated XXXX. $X.X fourth million, Thank $X.X of to

margin gross XX% higher gross selling profit ago. [ph] XX% of EVO. $X.X period and fourth primarily coupled prices lower The to a for same million, production introduction gross EksoNR with increase the for in devices costs gross representing the the profit $X.X Our approximately margin was quarter due of average and of was margin million year company's of the compared gross to of

us actions a fourth million, align fourth enabled quarter to the our for XXXX the operating to and expenses reduction million $X.X our of $X.X of of our preserve were structure expenses. lower for Our approximately quarter compared XXXX, X%. Operating cost cash to

or in the and to net XXXX For issued compared of and per of recorded to XXXX XXXX. and warrants $X to XX, diluted loss quarter loss basic months with compared due issued a share December XXXX. and Net in period revaluation share, for per for or same associated quarter gain warrant XXXX basic of of XXXX a on $X.XX XXXX, fourth warrants loss $X.X was million reevaluation in the XXXX, we a of the $X.X million $XXX,XXX in of fourth the the three ended liabilities million $X.XX diluted

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

$X.X year XXXX. and issued the period. XXXX in For the share use Net $XX.X compared activities recorded $XX.X XXXX and the a the million to in XXXX, warrants or the revaluation for progress million same of XXXX, gain $X $XX.X of $X.XX with was was due the of decrease XXXX per in to loss year in for year warrant a XXXX, operating share million, in reduce $X.X we basic for revaluation to XX% XXXX compared or a made million full about compared period used million million throughout $X.X on warrants liabilities full significant issued and We of associated Cash to prior loss same the XXXX to our in for diluted million year year $X.XX diluted XXXX. or per period full and cash. of basic

runway may gives for our the line included and cash to Please million execute now we cash filed net a received XX, As on quarter position $XX cash strong growth of the from and million, month, we of XXXX, approximately exercise proceeds proceeds XXXX. million $X.X strategy. warrants for details year. XX-K public our from strengthens had further Operator, a offering which open of see in that balance of the our earlier you this of December regarding gross questions. today the full $XX.X us Earlier

Operator

you. Thank

session. We will with [Operator conducting Instructions] questions Our Wainwright. H.C. a the now proceed question-and-answer of Sean with Please from line your be Kang come question.

Sean Kang

I question. EVO just of Hi, on questions the for my thank couple taking a have side. you

EVO? pilot additional or that and how So now lead there pilot could many any programs is ongoing right are discussion to also programs

Jack Peurach

Hey, Sean.

the second Let me second you question. there make any it? got understood the part Can your repeat Are of just repeat I just sure, part? –

Sean Kang

lead there was is, I that wondering EVO? to is is ongoing. – Just pilot so any like, programs first one second pilot are was there And programs the the how discussion question could additional there many or

Jack Peurach

it. Got

Okay.

going. So, programs we have pilot several

number are but kind We and a but them. haven't so XX, disclosed exactly of two second that's of about each those less of question, companies with shared how going many programs have [indiscernible] Each have between in than XX on we between additional have them to hand. number industries XX the those right. – pilot roughly them of And units yet, we of industries and start conversations additional

Sean Kang

Yes.

follow-up selling you I [ph] think opportunity any cross Just have that. products there other including ZeroG? to Is EksoWorks also for

Jack Peurach

actually true – customers same is of that of a EVO. who yet EVO There customers both customers ZeroG holds Yes. a But decent in not the there's that are are and there's products. of portion customers they're number actually for of

there are We both, So, who we pursue we're them in both. that somewhat seeing use as opportunities package. for organically customers but don't sell a

Sean Kang

I see.

you. helpful. Thank good. Sounds That's

Operator

no hand are further management any closing over back There call to this at like questions time. the I'd comments. to you. for Thank

Jack Peurach

joining be changing us summarize, conditions. commercial our to to adapting flexible today. proven for team you market the in To has Thank rapidly

engaging We our of EksoNR continuously our devices. education customers are and with their with of adoption the increasing goals

implementation sustainable install launch. our we growth. path initial growing and and expanding are base model, our following by of trends its future excitement to focused EVO’s our Moreover, encouraged the we customer With adoption on solve further are subscription supporting

industrial are customer the is ahead, which on like continued day. are workforce throughout updates will intend innovating, expanding bring in deliver the progress to executing our patient and our new solutions providing hallmark good We to and year. both from public medical goals. focus determined improve received the outcomes, the shareholders. We for our shareholders. value and company. a all we success forward of Ultimately, have continually latest our to to a to our critical segments our in Thank Looking industrial thank offering of our proceeds long-term on base growth I'd our you to look

Operator

does Thank you teleconference. today’s for conclude This your participation.

this at may great disconnect evening. your You a lines time. Have

Ekso Bionics (EKSO) 25 Feb 212020 Q4 Earnings call transcript