EKSO - Earnings call transcript Q1 2021 | Ekso Bionics Holdings, Inc.

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Operator

Hello, and welcome to the Ekso Bionics First Quarter 2021 Financial Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Matt Steinberg with Lazar Finn Partners. ahead. go please Matt,

Matt Steinberg

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

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

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

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

Jack Peurach

for today. Thanks, and thanks to everybody Matt, joining us

to off an are We start in encouraging XXXX.

our in with operators towards raising physician devices goals, model. doing community, were quarter, customer and the exoskeleton awareness each the that engagement our globally. expanding across the of number medical orders our I these network of primary new subscription in innovative of we sharing During with great levels, pleased them am made top and so increased access strides multi-unit geared objectives

new on NR the recorded we a our offering, both seven of During quarter, sequential up XX basis. units subscription bookings, including

we transitioned As adoption. we facilitate on highlighted EksoNR to subscription a previous to calls, our strategy faster selling model

drive Although us on pleased the this past. extremely revenues helped had nature this with of due model. and faster than generation, received earlier success of It has adoption near-term effect with customers has revenue the an we're results the early we to transition in

will a moment, model Bill per in order. units to highlight a also higher As of led number the subscription

to For quarter achieved of be while our COVID-XX pandemic. XX% impacted year recorded a the quarter, $X.X continued up first the ago. We the million, first revenues from we of this effects by revenue the

we to decrease. are cases However, conditions as normalize start seeing COVID and hospitalizations business to continue

devices. pleased our continuing feedback body positive side, upper EVO with are industrial the customer exoskeleton On we of

lean industrial the and continue We record and margins, achieved very operations. have we believe a number underscoring verticals, win our large EVO diverse can of potentially variety manage market. our and growing customers industry expenses we and efficient Financially, actively across in a trialing prudently, of to opportunities gross

are Looking February ahead, our in well-positioned our invest we position growth, supported by our to from cash strong financing.

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

Bill Shaw

Jack. you, Thank

it customer solid subscription was The engagement newly for simpler team. to increased our them our for model. solutions leading with while We launched the making exoskeleton year a commercial our adopt levels, to start quarter and first access

programs launching five operators, part was inpatient and Vibra pilot This are includes with on rehabilitation we delayed operators. closed are previously with top network focused pleased three strategy, to completing our of deals network with a the COVID. As Healthcare of program multi-site to that due have

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

Our than subscription new conversion renewal contracted rate remain XX%. more of under We have and our strong already at model. $XXX,XXX revenue

Our will executives to commitments revenue help fast be often over Capital sign time, required turn approval revenues. customers off. the top-line make as companies unit and is larger short-term but for allowing will levels, recognized impact similar the subscription record our monthly less offering acquisitions more to our of top contract the including

model, their offering removing being also will are accelerating be Not with believe needed, some seeing the only subscription we this approval shortening inpatient the for catalyst levels rehabilitation and With capital are the centers. we barriers, cycle. adoption we're less but of sales

validation event. is We that approach For a a after have days example, we four in working. QX, now in-person deal closed an customizable in

As a on especially has comes we are with this model units an in positive subscription Health. inpatient Kindred from number experiencing Kindred directly offering. to four-unit budgetary the This which with pressures. per a accelerating customers, seven-unit those increase of One order. development conversations was expanded commitment led of our order the its based service to also example

pieced into the in region. positive progress are partnership component to momentum In seeing physician will footprint Internationally, and network. our our our Services. further technology Australia. remain with goal provider demand. our in strong entering Royal by in robotic building continue indicating two update the of partnership and key awareness technology. APAC Royal Europe, a with increase this Educational We leading strategy region, we our our to And our global new pent-up of Disability expanded APAC webinars accessibility consecutive the in we Rehab is together a We clinician to solidifies Rehab throughout offering. Support of this rehabilitation quarters

robotics greater and the rehabilitation. recognition March centers. rehabilitation focused our of and physical to on is Physiatry in inpatient gain medicine U.S. this As practice physician to part to the successfully with announced Physiatry partnership we the U.S. U.S. educate initiative, exclusively of the devices largest in implement on in how

physiatrist team As our the healthcare continued series of four-part of that to the EksoNR that focused We will other on hosted was USP's. across this and of first series look partnership, by be part lead with industry's open webinar the will month, specialists. lecture education the a top we well a leaders globe. of physicians, forward experts attended to many clinicians, USP's partnership Earlier

addition popular In in-person live the gradual centers. events, opening the COVID decline, number are at rehab facilities we of with and increasing these of the cases on webinar to interactions

another completed therapist quickly designed today This innovative reduce of the And to us after the needing patient of and a early institutions Health, The EksoNR with When story program we getting patient therapists are steps of help in world. progress customer our happy patients newest to about Both inpatient Summa We're six-month rapid in who a elected hospital, function, EksoNR Ohio. saw the highlight EksoNR two a Health to outlook, through advanced education. her we to quick existing cautiously achieve patient half rehab over opportunities. partner Ekso's supervision and starting noted the heightened Akron, process. around recovery. male extra with more optimistic try than encouraged aided but walk the months. to million therapy. success stroke physical rates, independently, which one one COVID Vibra in to and purchase to recent only story. enabling therapist capital had to Our and requiring initially share centers patient's to proceed only rehabs hospital rehab are excited enhance an was consequently success of the training pilot functional three efficient attributed improve initially customer too ataxia, normal XX-year-old weeks from a the February take use them Summa a progress made closer technology with more balance, in significant pipeline progress his levels aid. our we marked demos improvements engagement XXX Ekso and with walking. After therapist, remain on-site current XXX

continuing We success are of quick by forward technology our these Vibra's partnership sharing stories. and to our look pleased adoption innovative and

our and of awareness adoption We the clinical cycle, barriers customer reduce predictability future continue along with devices, subscription sales education of our continued increase our excellent of of and more activities, and training, will we virtual strong leverage our With believe will support, capital this shorten increased innovative penetration our to new customers. strategy. increase combined our market strategy ahead, Looking model customer and on-site for drive technology. to deals webinar events, effort to our with network program

the turn this We I'd to to our CEO our success. to are Peurach. excited At Jack time, accelerate call back commercial like

Jack Peurach

an update provide industrial to with Thanks, the Bill. like our I'd on segment. progress

have the first quarter, promising their from exoskeleton more to mitigating conducted the productivity customers body fatigue, continues of EVO and worker executive industrial heard most levels. into upper incorporated device making risk this value receive Our and from EVO feedback In related that innovative gathering We've by workflows. feedback adds at evaluations, the extensive we injury. predictable reducing

greater targeted limited potential trialing post-launch several an our number During new EVO different period, actively and customers of across evaluation we applications. and have customers even added

job help enabling and work risk customer to stress work overwhelmingly further to kid safely was a their completed overhead a who customers, We even like alleviated exoskeleton of readily one mind risk than be earlier projects expected him the to shoulder to peace customer far, while results can testimonials, the of returned time of are but this to also was less employees. to tasks with positive thus his unable with on performing, to I'd the employee return due couple lightweight pleased provided injury, the employee, caused the reducing encouraging and highlight work previously to by EVO, injury with confidently, work-related he execute his due primarily perform

it Today, while can and and EVO are lowering had overhead EVO we XX% increase a more who enhance had where food targeting worker highlights working the a applications construction, drywall our worker repeatedly. enhance productivity supported the example each and conducted task productivity installation EVO verticals, construction a solar predictable. can XX logistics, efficiency, remarkable to safety. worker improve this grueling complete to by that improvement. productivity needed X also installer, task from output minutes, processing, with be Another to With making in work primarily in minutes demonstrates time customers that aerospace labor-intensive this

Moving targeted objective accelerate further within forward, is adoption our our to segments.

our pace. model sales driving has intend continue sales subscription model supported the commercial subscription capital reduce greater similar strategy and efforts the at to a faster EVO the adoption We our for it's barriers. to shorten and helps Ekso Finally, cycle

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

Jack Glenn

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

was gross record in compared a of representing quarter million $X.X margin XX% gross EksoNR was approximately higher service a The due cost quarter previous of increase average primarily higher and of first of XX%, proportion generation margin the a increased XX% ago. to year production same the an of for sales, to for selling compared profit the fourth gross and best lower prices medical gross margin Our to EVO device the the margins. in period XXXX

lower quarter first warrants in of and $X.X with XXXX, $X.X the quarter revenues liabilities the period, operating Net of XXXX issued period in and preserve prior de actions of Operating XXXX, $X cash our structure approximately to XXXX year reflecting million the the million. loss for of Cash XX%. first warrants of in was expenses. our XXXX, issued Gain operating XXXX operating minimis $X.X XXXX, XXXX quarter activities for compared from our the the million for the $X.X on XXXX. expenses XXXX XXXX first ended gain March Our was leaner the million cost associated used million in cost million, and reduction for compared in XX, align in revaluation of the our to quarter same a of XXXX, were revaluation fell and warrant to $X.X to in increased structure. a quarter to enabled first us from

XX-Q a had a from offering, now million the for million, our regarding strong our runway gross position for approximately see As extending the balance $XX further which may quarter. earlier of details to our of $XX.X proceeds in of Please March in our you cash we questions. XX, today cash XXXX, execute included on line strategy. cash open strengthening growth the Operator, public filed

Operator

RK from first [Operator you. is Wainwright. Our Thank Instructions] question coming today from H.C.

Your now is live. line

RK Ramakanth

however, coming increase year compared units A and when quarter. more you. working you obviously units, few it's to subscription Thank is got the placed Good on flipside, start afternoon, the in number quarter top is says first fourth of But, to the Jack see placed subscription the increased this the you've off revenue is and questions last me, from Jack. basically XX% line, on look that to the you good that certainly dip. But the a system which of the units, from right. against

your the this in being on sense want thoughts involved? in that first is as of trend the you system the after the subscription subscription amount long there is to year. going compared short-term, move a the some quarter into partly is obviously is the be previous the to the system understand I could finally So, two, it number look to because, into And period run convert weak subscription should done? revenues sales the quarter-to-quarter But the seasonality in little

Jack Peurach

you, to for and hear the question. nice RK, Yes. Hey, thanks from

communicated on a we've have we offering. result as of which deals, subscription as of come lot in past, the in been And existing, And capital have or as our generally You're to shifted the subscription. would otherwise that focus not really a spot-on.

thing it this, would really a drive we a on that, certainly a think the we predictability subscription believe view as we're in out, it expectation. converting view with So, to I to that we're into a a past to faster correct both offer, and going we But a want that our Jack will Glenn bit you being we over sale, or really lot it plays lot but bridge a that this for to is anything large Shaw, offer what that sell always capital for that versus revenue. adoption. capital purchase. the customers happens, -- because and to the that the we unlike free. purchase, was maybe a time We'll we company, this add to if see how but Bill second us just short-term have impact of going the renew capital And majority more great as gives offer, feel in had and And little is want is something the

Bill Shaw

Well, there that, and I our the to really effect subscription near-term. look the units. is be and have getting would really But thing mentioned, again, going you growth, accelerate units we the Obviously, RK, really it's key. program unit to only it's in the about that the that's going add, to as line to top out growing

RK Ramakanth

previous rather as go a even some more to of bit one for battle sale when it of a far Yes, the centers in done? reason is the not decline what capital sales, sales compared can than unit especially bad bit about terms a a least subscribe to is but A-okay you talking to mean multiple route, been little subscription appetite, have multiple I'm units a in it's to to the in have elaborate I have thing sales, to you as concerned. get And the decline as a then, times, right would for where the little the of at

Jack Peurach

great Yes, question.

evidence to now. of starting see that right we're think I

but we multiunit see, ask a versus making, our in able I -- network on central by to going Our to fill that discussions doing that. have of perspective, one will way. programmatic everyone it'll I'm little network from it color more starting And programmatic to going And certainly, more commitments. that be around And it's on decision-making been were able of deployment. with be think more central we've more operators Bill in other a a interest that with combination do in Or do moves. effective to decision belief QX, fairly multiple is to a we're differently, to drive operator. able to a very one We significant but approach obviously, is to side,

Bill Shaw

extend one can little different from able or right right necessarily a perspective, pilot take this in to the only it budget is to can want out an subscription success they pilot market operational budget. they thing capital have R.K., don't that hit multiple actually and be the bit out do then the convert markets, past, seem they renew would And own just because specific be it just the have have to add very harder. a dollars with pleased program, do could acquire technology kind of would the to time, they to I'd is of But that if whether just to decide budgeted with reality rent Yes, that over acquire to one in time, to the we or at a they that. the customer program, do They it. sites it, maybe they they would roll the this offering, of technology to still

lot why in And that's a seeing of so we're interest multi-units.

RK Ramakanth

perfect. Okay,

of terms status more So, to as one onsite state. day EksoNR I inviting seeing to kind terms on the demonstrations? leading site rather of Is the you people of from giving the as trends pandemic, pandemic as in in How place can indicator vary the demonstrations, the to don't as to a site folks quarters? vaccinated, also a coming and act of on you are clarity, to it, more number conduct the onto day in units some part of state question could and the what that kind it your know of the you of more getting

Jack Peurach

take going I'm just Bill that. ask ahead, Go Yes, to Bill. to Bill,

Bill Shaw

well, I talked being about Yes, cautiously optimistic.

that levels back and increased XXXX. better much steady is we're past. than been hopeful engagement there the of recovery spending a I they've But in emerge, to definitely to we half are see believe starting think in the

as to planet start the things we're people the now this the hybrid is with us well. selling executing in is, and really as middle a strategy. of helped But But that trying type that the to with right really shared seeing we're to doing back, COVID pretty event, process So our in we're of to we of or past, the room approach, reality come had virtual right demo I'd say on of And getting navigate more as a where a virtually much site do the possible. we've pivot a the selling in validation technology pandemic, important.

we're still open and to path customers with better no we're on come real But doing centers in site our answer back as being really being things, well. question very we're and we're site, being us having on seeing strategic yes, so demos your And how technology directly, to there's but doing seeing time. virtual where with

So do we're to of possible going as going much as to that try forward.

RK Ramakanth

Okay, so of some for trying EVO. last you the are some that I know the made about regarding industrial question, comments test to verticals EVO,

verticals, comment them as So could you far be become couple you highlight what on revenues do a this more little And as have you this? which and can industrial you absorb when could bit think seen, a meaningful of like go? ready to they'll from

Bill Shaw

Sure.

maybe generally did just So I'll couple there's match. I mention really where verticals. great a I some highlight think a like

in bit would but insulation. be first to a down The drywall construction, narrowing little

we've as drywall we've productivity And customers also doing a see number some the a now, again, area. sanding. product standard really very and quite got is there's quite appetites area lot evaluations suited overhead we if would can we given think in optimistic well that faceting of And involved about And our installations for wiring the We productivity of and field result a is improvements fairly we of of there's we're is Again, where reason that's trials that. that that demonstrate associated be done improvements. with in not activity as insulation, to placing awful A large where same this and great second right that but just finishings it's support, in have work muddied we're a a for overhead that, running one. installation. solar doing so that lot sheetrock

So two I couple highlights, of be them. for take there those but are some of a others would

bit couple is, traction terms going with fitting some to the slowly was very it see a really we first, out of about perspective. economics was things one and a sure worked A make into from the the product the little that, taking In off application so customer. deliberate about revenue

I verticals. far in at pretty of think some gotten we've that least these down path in

a So driving position invest in we driving more can into we're that more in little now and volume sales. a that bit

So growth of I year, out to this that. second-half should think some of in we the start see

that that also The offering that subscription. thing say about is as would second I we're a

the delivery. have same we'll perspective as with unit revenues a effect again, So, from revenue

RK Ramakanth

questions. thanks. Great, Thanks my for taking all

Bill Shaw

R.K. bet, You

Jack Peurach

R.K. you, Thank

Operator

Thank you, any over I'd our of the question-and-answer closing to for like we the further turn comments. back to floor end management session, reached

Jack Peurach

all was to year, XXXX our today. recap, briefly will the what who quickly. it to be of first patients believe more encouraging you more help Thank bring the To benefits quarter on technology, an solid expect network continue us a joining start for we to and of can we to operators realize focus

is Our down the helping subscription us this barriers, sales cycle. breaking shortening adoption increasing capital achieve model by goal levels and

positive to this Although EVO large on penetrate. stories we with opportunity evaluation we path received that We're sustainable for support that there's provides the believe a market EVO a of can remarkable this results to-date. verticals also and base near-term, number growth. expand with in feedback the we and believe We revenues customer our with our installed impact future inroads us continuing pleased may to and the

in success executing to February our on offering public stated growth past, our the from I As the our are received goals. proceeds and critical

improve focus on to of on the industrial both Our in workers. throughout you a year. and continued our base game expanding We bringing good and lives look providing medical will technologies remains have customer forward the industrial patients changing progress day. segments that new Thank and and updates

Operator

Thank and you. This conclude today's does teleconference webcast.

you thank today. your time line your wonderful have disconnect participation a We this may You for at and day.

Ekso Bionics (EKSO) 29 Apr 212021 Q1 Earnings call transcript