EKSO - Earnings call transcript Q3 2021 | Ekso Bionics Holdings, Inc.

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Operator

Greetings. Welcome to the Ekso Bionics Third Quarter 2021 Financial Results Conference Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Matt Steinberg.

begin. may You

Matt Steinberg

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

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

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

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

Jack Peurach

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

reflected progress and we on execution sequential significant in the quarter we were automotive companies material network both Industrial segment, operators. able top made existing and we win the new both in rehabilitation third and rehabilitation inpatient continued the basis. our orders The improved with reported In company an aerospace revenues And across annual with segments. segment, to as

capital and level options. sales are sales Our customers include engagement, are interest acquisition all we and giving segments. flexible evidenced of And customer by as commercial increasing an by offerings, our in growing which subscriptions, encouraged pipeline

For we sequential up revenue the quarter, a basis. million, on of third XX% $X solid generated

of bookings. On we the business, EksoHealth the recorded side EksoNR XX

drive nearly our to flexibility in through which quarter of adoption were purchases. capital our provides the of our all continue we purchasing subscription While customers, for model, bookings

As a this result X purchases of we capital bookings subscription quarter. the this generated quarter,

of the On leading driving initial in products. high And vertical innovative remain in EksoZeroG our focused with greater team companies, We on newer the evaluations. customer of industry. on-site several and participants industrial particularly the of some side, are produced has interest via commercial orders continued level awareness our EVO automotive with that building we

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

William Shaw

Jack. you, Thank

from purchases these XXXX driven purchases investments. devices. targeted capital of commercial capital in an execution engagement in Many inpatient our plan. facilities, resulted An with for our our leading strategy, Our continued by deferred its team XXXX were capital demand of by supported increase EksoNR strategic rehabilitation solid for customer exoskeleton influx

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

focused past have XX%. year, revenue And model. in of the and million under to been just our renewal contracted deepening presence of model, States. our strong conversion some more is our XX-month the is and in subscription XXXX. the is key rate these intensely unrecognized to than rolling is we continue In introduction is and Our now the expand we subscription top $X.X network have space enabling networks with traction XX% operators, of bookings utilize of all of are up gaining our us new which our have multisite, from with preferred operators U.S. generating our for accelerate faster this EksoNR United we among operators. network with year-to-date, comprised of Penetration results. the efforts, subscriptions multiunit to relationships this pleased of we adoption, orders market across XX% and larger network Because One on

our closer are expect forward. to utilizing under we this additional progress make more target this going quickly customers We relationships with generating model, and offering

a strong On we consistent partners reasons: been for front, First, the manage select Europe of number our alignment a have with markets. performer improved has who strategic indirect international

outpatient a a and direct developed opportunities to neuro we continue And we centers. efficient opened Second, with BG occupational care that more focus the meeting virtual make more and with operator. network, in our process sales rehab progress through up an third, markets has health

stimulation been UCLA continuation Edgerton injuries. spinal care of F-XX we Laboratory to at in December have collaborating in injured an others therapists in share until Ekso his Air working the Post down therapies our Ekso look research pathway Ekso-trained and himself support was but for an XXXX. both But Ignacio try outpatient motorcycle a of with determined Ignacio UCLA. able program to whose in trial, Edgerton the more and only wasn't not Dr. a the to recovery the due for EksoNR, has Neuromuscular injury, cord of spinal on promising inpatient has at combining pilot on success walked in. he providing is incomplete at this with for rehabilitation. neuro to in the fighter Ignacio of taken done hopes August was at of to XXXX. cord Montoya customer, see Ignacio the EksoNR help and cord we accident more want being his with their patients as clinical spinal patient's recover as significant first opportunities In put NeuroFitXXX. his officer and has XX,XXX spinal our and he future from the to of the steps a Force Research than result helping also former and important Specifically, growth. injuries. remains where access story of reclassified the improve at work rehabilitation a are BG injury been we aisle of wedding his July region wife transcutaneous he Europe EksoNR with Ignacio like physical care determination, to Today, an month from acute

see collaboration. to eager the results are this of We

the of we near our we of strategy. about As excited end are XXXX, the commercial progress

order. each accelerating We are the increasing cycle the overall size and sales of

in-person educate a upcoming strategy. Additionally, of our number and like impact progress events. call of training exciting virtual This the customers our turn is devices, back providing months. to commitment our beneficial of new clinical our the innovative and our includes program to Peurach. forward this Jack on to crucial We time, CEO, component updates a look I'd on coming to in At the support

Jack Peurach

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

EksoWorks' worker EVO, industrial companies EVO, injury. pleased enables our and prominent commercial last greater EVO QX quite which retention as customers productivity, are new the revenue regulate year. is to launching with Since doubled risk team have progress particularly that made compared fatigue, more employee of than it large increase manufacturers. the automotive with reduce of we we vertical, exciting mitigate considerable has awareness to generated appealing in turn First, has to vehicle

have also solar strong seen We the with progress vertical, construction most in recently installation. panel

and proposition enabled our have As us across EVO's markets. several strong you can industrial awareness deepen value penetration to see, efforts

Our industrial excited in our results. strong months. about number Jack commercial to future the potential we I now to are the team And of with call successful initial large has third Glenn financial quarter produced prospective review relationships. will recent a over turn customers evaluations for

John Glenn

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

quarter for ago. and gross of mix. and changes gross compared Our a in an The representing margin was approximately million, costs same of increase in gross period year service product was a the result second profit of margin EksoHealth the parts gross decline the XX% in XX% $X.X primarily to labor margin for

and net from to As XXXX. Net expenses $X.X net was warrant of based a result of million from were of XX, compensation of result expenses a mix. associated the issued of the loss operating third expense. quarter for third September the loss quarter issued XXXX, ended and XXXX. administrative a gross period operating of a for margin to higher a in in XXXX on the for revaluation XXXX general the quarter quarter-to-quarter with Operating increased in and XXXX the XXXX, headcount million the XXXX in compared channel of fluctuate employee on million period. compared quarter operating is and gain loss product increase third warrants was and The in with $X.X as reminder, prior to for XXXX year $X.X of the million liabilities $X.X Gain XXXX revaluation tends million same compared primarily XXXX, million $X.X warrants $X.X in

million to from first a X Now period million Net Gross XXXX million profit for $X.X for margin of of months $XX was higher of cost the for XXXX XXXX. million of period million, same year-to-date months $XX.X for X X% $X.X an for months million the reflecting XXXX. Revenue was million, months decrease narrowed the and the year-to-date the period the $X.X compared XXXX turning in of increased prior for of of X X for leaner first results. from the were revenues of about year first XX% from XX% for $X.X increase expenses for first first XXXX a XX% year-to-date of X the period. gross to from $X.X same Gross the profit operating comparable million the to XXXX, in for loss structure. period to XXXX. Operating months $XX.X

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

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

Operator

Instructions]. [Operator

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

Swayampakula Ramakanth

really Obviously, we an upswing excellent I quarter quarters X seen in have to 'XX, the and love numbers. last of compared what in the

quarter. much as saying. as bit down Just could, I the commentary, a XX third from on I to you in mean additional bookings write could tried were you if the little what I

capital are get them were including within straight So of just purchases, bookings XX Or all in trying capital purchases? I'm those to XX? X the things head. subscriptions most those my

Jack Peurach

call We Thanks, bookings here, I support some The for all RK. -- all is we XX of that had had, XX, right, capital? in Sure. Adam Adam, were might capital. those

Unidentified Company Representative

two and makes subscriptions capital the XX XX. up

William Shaw

will Yes. color, I can some Jack, help. add that

Jack Peurach

Please.

William Shaw

RK, had we had the yes, it, -- quarter. deals you look capital in at actually So if XX

We X subscriptions. also had

a of for So the little what holdover come purchases the did XXXX. it for we most unique that in sense capital, capital was us consider deferred some from

We also opened the of donor has lot we up subscription scenarios. But few had mentioned, new a offering opportunities. as a

they've from expect look If have we units if we've year-to-date, at to through working just especially look you the do with. viable of least network X remain been acquired, networks, XX% subscription. been this top we option, the our a partners at So at

little again, say quarter-to-quarter. just was it unique, bit but vary methods purchasing a will I'd So

So majority only But we're is I business that too. capital Obviously, this for wouldn't option focused the quarter. the of think about great subscription us what saw as we to was have, on.

Swayampakula Ramakanth

ramp Bill, weak my being actually, the other be because up little that 'XX? people budget your with the XXXX? up than they is feelings or in late they because capital is bit Are 'XX, going dipping purchases less into 'XX into the capital the purchases. for a in said lost need in business budgets is in very had used Having which on what just of thinking was things what number, other interesting still especially would that, to 'XX, left capital buying budgets

William Shaw

Yes. It's a good question.

look to that from at of spent the year. we this So side, care our had end capital we've if perspective, experienced is holdover on health what businesses, be by XXXX some both the from

well. year we of And that, but the the to subscription customers the So industrial seen still certain some spend as mixed capital expect I of have experiences as well. see on more where to we've end also amount in may see of then a by business,

experience our year-end pulled from think forward. capital holdover be of more new I So by to is spent capital it that being needs versus

Swayampakula Ramakanth

what also into from what just jump month me in said feel Just the I you days get to before the we and seeing quarter, could said Having fourth into trends a what back question some and seeing? last are you a the are the queue. quarter. One having fourth that for be

William Shaw

Yes.

I and lot has relationship this a we brought our is our with think I a aligned significantly think very we on with of is strategy the strategy, our important dedicated team improved partially how think about talk I of our for us, which networks, obviously, we to have which we organization the year due customers, talent into working. have and them. a networks. It's obviously focused And part

I what start into of move agreements. something example call opportunities, that's and of future. doing our to Obviously, type give those them multiyear us can we greater going multiunit, one we're So on working predictability is to with if on we're

something being company, technology. just believe have to center that's But every to our benefit add mission-driven we're access should the trying a So also I'd accomplish. of our technology we and that

we group regional focused centers, have stand-alone facilities. a So networks, also academic on

obviously because all overall contribute are important these success. they our So to

don't I what of mix So a say centers. is would But a have guidance. networks give to that independent we obviously, we between lot pretty and expect solid

Operator

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

Jack Peurach

is and Thank we up a had solid be today. for thanks third in To quarter strong you, to XXXX. everyone what operator, a recap, us joining to shaping

can focused X industry drivers: first, verticals. on Europe operators; clear inpatient flow value significantly the as that order Activity through delivering create and rehab our relationships on third, top by key rehabilitation across optimistic and the with patients. their in we capturing new By it's subscription And deepening focused out close a U.S. greater bring that becoming is has they EksoNR to momentum model; capitalizing inpatient set top recognize remain sales team this increasingly with year. Our the value EVO XXXX. second, we risen of expand customers operators,

Our focus percentage an making up customer working of is our sales. on segment inpatient rehabilitation operators increasing this as is network

market employers. acquisition leading Our front, flexible is the pipeline particularly our with options, well also bring we are as gives received our us a customers. subscription it and offering solutions customers set allowing of industrial And broader increase to on to increasing penetration, finally, large

our to to have providing continues team commercial Our and our continued is on pipeline growing. add progress. forward We new you, look updates customers opportunity Thank and day. a great

Operator

conference, may at Thank participation. today's disconnect concludes your for and time. you lines you this This your

Ekso Bionics (EKSO) 3 Nov 212021 Q3 Earnings call transcript