EKSO - Earnings call transcript Q2 2021 | Ekso Bionics Holdings, Inc.

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Operator

Greetings. Welcome to the Ekso Bionics Second Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note, being recorded. Please now Matt Steinberg. will turn the host, your to over conference I Thank you.

call. You operator, all today's and begin. thank may Matt you for Steinberg participating Thank you, in

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

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

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

Jack Peurach

joining the in thanks Thanks, start extended for XXXX. which the Matt, to our everybody We're we and progress solid pleased second made today. quarter, with

we driving our with model. we building momentum closed quarter, adoption these the multi-unit top globally. focused of combined and Through subscription network operators network During several access orders with operators on initiatives,

XX During EksoNR subscription bookings XX first worldwide, the the bookings from recorded we both including quarter, quarter. up

For $X.X the first second XX% quarter. million, quarter, from of revenue we the generated up

conditions that pleased are demos business back improve. now as onsite We pre-COVID gradually are levels, to

the may very spread fluid as in-person we interactions. COVID landscape closely monitoring of However, variants the are potentially affect

us virtual event Our online ability prepared to of educational and the be webinars flexible with any sudden has well solutions our changes. selling in

side, an onsite we of and continued programs. in are to high pilot pleased interest increase industrial the level see On and customer a evaluations

discuss later, to put awareness cost market I achieved which to-date building we continue feedback the the As we we year. are solid in in several initiatives for verticals. last margins as will EVO gross of place positive we has benefits see generated Financially,

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

Bill Shaw

you, Jack. thank Alright,

Our commercial during the team made second quarter. excellent progress

Our execution and successful in direct educating partner efforts with our markets. customers meeting in in and resulted

orders. Our the of speed subscription and model size accelerated new

to operators. rehabilitation this number inpatient leading a now within we with reminder market more We've continue and on opened a we launching execute programs with focused network with As orders our multi-site network up strategy, are operators. doors of

revenue. second $X.X million of in XXXX, delivered EksoHealth For the we approximately quarter

approximately model, a we revenue up is renewal XX-month now $X.X than have rolling sequentially new Our healthy rate $XXX,XXX. from our under million unrecognized of more subscription XX% contracted

moving calls the previous to discussed have a model. We benefits in of subscription

with shortens offering mentioned, previously our new both barriers. existing also customer and lowers sales It orders conversations and this capital customers. accelerating multi-unit encourages we sales As cycle,

We are new well our and increase it more us up target order customers this to inroads greater under generating model sets flow. with quickly

order differ subscriptions note, while of more revenue our long-term We're customers revenues our revenue a patients. the can in devices, most all Florida On outcomes longer partnership hospitals, excited not growth realize into bring of recurring life access locations. the that their a should proud Kindred Importantly, a only term. that rate inpatient that also standard-of-care acute we business contract, to to are with EksoNR with stream across accelerate expanded meaningful rehabilitation and faster Kindred resulting to Healthcare to our which adoption at increased say multi-unit four EksoNR is care we

our We to facilities skilled or nursing with presence expand continue also SNFs.

an facilities a strong key For example, multiple in are centers neuro perspective, work business in introduce advanced excited the attract network. has Increasing and hope more to options our provide coming our operators strength within patients performance is and with serve. firm gaining has Bionics the a EksoNR premier a their to through demonstrate City's had nursing with communities and York locations Ekso partner announcements to nursing and the to rehabilitation to sub-acute consulting skilled years. Bionics Excelsior’s our referring region, penetration member Ekso national in with our further other New the and rehabilitation to their provides network. expanding Excelsior regional Excelsior grow to services for and encouraging area facilities From technology been they rapidly patients, healthcare network these Group, that differentiate Tristate from international Care initiative offering themselves and results. to hospitals consulting We're our EMEA partnered partnership

executed includes highlights existing One an partner order multi-unit Benelux of many customer. the by from a our

devices September. technology. and in to key pleased physician robotics rehabilitation has interactions, all benefits in in-person XXXX economic Earlier that we webinar XXXX. tandem the a In a build EksoNR our strategy held with centers. million of EMEA first our implementation U.S. greater reached the awareness. alongside next than one millions of which of the in Physiatry in this of on and Poland, have clinician of front our have we such webinars who including in month, placed more steps of X patients half devices U.S. accelerated ERGO second on event educational webinar look we on we success the steps are forward Hestia example and demonstrated our recognition We are of has story. One with successful our by We clinical to discussed July Ekso strong take of success helped another customers how four Together XXrd. is exoskeleton part highlight series, this driven of education Today of partnership Physiatry. generated component

in of was But in rehabilitation, a perfect culmination went her a improve thought at words story. McIntosh's the a with and dreams. on her compete share continues With it the injury time and cord August, function we Olympics EksoNR from years assistance XXXX was Margaret happening post even stop the to the Margaret mobility to now equestrian is beginning Paralympics, didn't Margaret end Shepherd rehabilitation. her equestrian her injury of therapist at of her Good using part lifelong XX and the her in that the XXXX. to continuing sustained Paralympics started passion which excelling spinal in who sport. as of the with Margaret in a

number both are year, each subscription and optimistic half in second increasing about sales the size we of order. gaining and cycle with traction the quite accelerating are we the Looking of the offering, to our

this CEO, customers At to educate the program on to in We innovative support. acceleration will progress time, beneficial strategy like turn impact call clinical continue We to Jack the devices, forward the our months. coming of training to our our the on our of back look and further Peurach. based I'd

Jack Peurach

Thanks, second EksoWorks progress industrial sequentially. revenue to quarter We with growth our like with business Bill. increasing provide we update XX% the an EksoWorks. I'd on call segment, in order solid generated our which

industrial We the are awareness companies expanding traction and market cutting regulate focused worker are with EVO and of to industrial-related productivity, reduce these employee several incorporating risk prominent of edge EVO injury. workflows as devices EksoZeroG retention their employers verticals. gaining increase fatigue, on into across mitigate new large

set targeting customers our industry across have We automotive, continue primary construction, of potential to turn and aerospace, second I markets financial Jack applications Currently, safety. our with as quarter where enhances EVO worker productivity now review verticals. improves are call to EksoWorks Glenn add and to new and picked distribution up a results. over include conversations customers logistics will diverse while the we worker

Jack Glenn

second revenue $X.X reflecting a revenues future Ekso quarter defers to for million, the our of to generated which you, million of periods. Jack. quarter compared subscription to model $X.X continued Thank XXXX, second shift

mix. and second The loss compared with $X.X margin net quarter efficiency generation $X.X the XXXX XXXX revaluation million, quarter $X.X of noted gross profile increase $X.X in year net of quarter ended the was a year to compared quarter the increase margin $X.X prior on warrants quarter to Net and a a gross June the gross $X.X million margin XXXX the was expenses Operating development based product. associated in higher and XXXX, quarter the and to cost second million on better approximately $X.X shift research subscription. in operating million, second to for to manufacturing second million period expenses for representing XX% XXXX and our is for and the margin XX% for the warrants for compared XXXX. in to due previously million geographic ago. issued with The of the the liabilities of improvements, the XXXX revaluation EVO a of operating warrant a period. same compared to operating result were Gain of was XXXX, revenue primarily XXXX fluctuate loss period in primarily XXXX. issued profit compared prior quarter the in for XX, of loss was channel million of gross same loss of tends Our in from to XXXX Gross of

was first same period Turning the in XXXX million, months increase cost for six the million to for $X.X million profit of of million, $X.X million in XXXX profit first or $X.X operating fell Gross months XX% half an structure. X% XX% of the XXXX. XXXX, the to million, $X.X for for for the increased months XXXX. XXXX reflecting $X XX% first to of year-to-date a was XXXX period. year-to-date and a to margin year loss million to million $X.X XXXX. first the period from of compared the for six of the decrease gross in Operating six Gross revenue year-to-date revenues were first in to Net of million months for first higher compared from same period of results, expenses for of $X.X compared prior about $X.X the half the linear six $X.X

XXXX loss XXXX, million. warrant a and months XXXX, we to of the the the six again Cash XXXX, million of $X.X XXXX issued the of a the in recorded due associated months first For activities XXXX on issued revaluation XXXX in first to revaluation million compared and liabilities $X.X warrants XXXX, used of in was in six $X.X warrants XXXX. with period for for same operating of

Please strong million. of today filed we quarter. As balance XX, regarding see XXXX, to you had further $XX.X open our cash details line the XX-Q June the Operator, may of a for questions. now earlier

Operator

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

question Our Wainwright. RK H.C. is first from from

RK Ramakanth

So that that increase stating into model number, little just is you that insight we could not before increase, suddenly of whether know -- many are owned. working, we And increase see But in subscription right? detail, are of a idea placed, give size is that are subscription an they into placement. only but bit to of I an the there terms more get also they or how get orders. you units are the see us the

of come many so kind how that that placed, revenue can are So the total, thoughts basically recurring in to post-placement?

Jack Peurach

RK, question. Jack. Thanks is the for this

to your this our question think currently in subscription? our units subscription way, there units try least, currently answer I are I'll I How XX understand are many fleet. question. At the in

RK Ramakanth

And an before, And the the say then in like tell is will quarter? in what late number it how working. and in the mean kind I in the also quarter you sense, orders, fourth of and size it there was second model is like really last fourth when of quarter? that's year, increase the is late first what Because now the of much the --

Jack Peurach

Yes.

really and see. had pass But introduce Bill. network a I'll with to Let's quarter it we going to over operators. it great I'm

or units of operators. work the of network operators. order per were number. think driver shifting the Bill, -- is larger majority also the is to operators? But increasing different I that this really went [Adam] network units many how quarter on network happen the know getting at least orders unit into you going And our to to to different

Bill Shaw

guess it question…. that. RK here, I XX% some to your Yes, order in idea just is roughly of answer the first give

RK Ramakanth

you, Bill. hear Can’t

Jack Peurach

your side. is something wrong Bill, on

Bill Shaw

Okay, your answer sorry. RK first just to question.

terms we're the terms that's the multi-unit how to we're revenue of of In that doing increased, size of in order, of a time. be they period about orders over talking going more obviously, if contracted

look we but it actually and how at so not an And only revenue captured. also many increase, the units

And in of XX terms these so how structure and we’ve both subscriptions. XX positioned months, months we

this just we quarter out all had, we two I'm subscriptions subscriptions, we so had XX a that XX sorry, of those or -- And month. had,

RK Ramakanth

of them rest The months? Okay. all are XX

Bill Shaw

Correct.

RK Ramakanth

Okay.

offline. follow-up will I think I

have But just try -- more a couple to keep I'll on on to I more offline. questions. I But things. think some other questions follow-up just

on but on that marketing the side, also increase there operational also I R&D, only So, was activities. an not the on the noted

the the And industrial is, be by development? really folks side? what side you the increase terms is new the side? going health not thinking and gradual up about? open on marketing this thinking us What we hoping in to again? on talking also, on product you going my So of do on seeing we development, the close product down Are to we we Are are to mean are world question

Jack Peurach

Thanks RK.

then So first expenses, I'd extremely been overall on company, and the we’ve structure cautious. expense of the marketing say

back. investments, investments making least be then are making some come selective areas. would R&D. some We our in facing investments, some Those investments back come in have at customer we with And starting selective operation-oriented business and along seen some to

scale most areas in to now. going that's significantly right believe don't I So

variable I think are marketing stable those on side. we're Most investments pretty investments. the of

not investing We’re infrastructure. in

on and on and to side. industrial we'll we the need. started in both those we've So medical to or side, we developing in invest the can continue are turn things as R&D products, stop and invest On in on invested

going in And both so think there's I on activity sides.

see EVO a also of get but like feedback I people solutions. other think, to on in we're features both would lot terms to starting additional in the side, of EVO,

getting I’d pursue. just of, R&D That's side, medical better we’re say refine offering on is and to really to and lot customers. a make the the where So the and our think about so investment meet product I opportunities better ideas then And continuing going. to our we're where

RK Ramakanth

see? And half understand how think what guidance, of I to then trying Glenn. on for you're of Jack not giving Any we the it know, I'm last question but the sort should commentary of run second just year? to revenue would the we

Jack Glenn

course, seeing just of I don't give yes, Well, concisely we but guidance, it Bill and would say, from too. we're did what

to out things uncertain still good seeing up to But out give you leads don't year. we're of the we at and guidance, second know. of half think things there -- and as yes, hope certainly would I we front open in times. getting which a always are But customers,

I So to that? more but if Bill, want -- don't to color you know, add any

Bill Shaw

activities. just add definitely the strongest overall that just It's probably our commercial months. XX Yes. I’d we quarter last had in

than more So on year, all this we last past technology we performed events of quarter. or did demos

about a think obviously, we're feeling and positive in-person good that that's I activity. So

to we have now do closely. monitor rate uptake However, the

that. be to we hybrid to So return to model, have will a prepared we do

Jack Glenn

I would add too. just that to

nice Just able that, better results. to the we is, more we build being what time, to note revenue fleet those of model over in that about get and consistency part subscription forecast units some as in the

Operator

question-and-answer Peurach the now the for session. of end turn the reached over have to call Jack We I remarks. will closing

Jack Peurach

with solid operator, up for quarter, the Thank what be pleased we second us is everyone To we thanks with shaping and are to XXXX. the made progress you, a joining recap, today. to in and

inpatient their Activity traction patients. increased U.S. has that heading the EksoNR Europe who targeting can the rehabilitation of the year, with and cautiously to operators, recognize half we're in significantly year. are second gaining bring we value First, and this top and into optimistic the

growth and an strategy. playing is increasing model establish role create foundation driving model critical orders. to for subscription sustainable order our multi-unit our predictable This flow, us future Second, a part important helps of in it the making especially

encouraged Third, revenue sequential by the industrial on the we are side. growth strong

set across new a picked industry customers We continue with really verticals. have diverse potential to customers up of add conversations and

As subscription and we network throughout Thank on building EksoNR model progress look We providing our you operators. momentum second head we adoption the into have faster focused to a the of targeting forward remain year, sales our updates by facilitating half the on continued day. year. great through

Operator

This concludes conference. today's

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

Ekso Bionics (EKSO) 29 Jul 212021 Q2 Earnings call transcript