EKSO - Earnings call transcript Q4 2021 | Ekso Bionics Holdings, Inc.

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Operator

Greetings. Welcome to the Ekso Bionics Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. The 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.

You begin. may

Matt Steinberg

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

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

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

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

Steven Sherman

I participate our follow for my and Thank you, joining I've first experienced executive today. team. conference on And on you pleased have Ekso Chairman, Bionics chief early to thank call capital investor, everyone leadership the choice, us safety. on in focus Ekso's officer, reputation wearable market working and assets. will a I'm leader an participated I am with tandem have as entrepreneur. Matt. of I My in been belief value the Ekso's new be confidence in I raises. early business. one strengthening workplace medical a I will leadership, our Under is I serial will we rehabilitation the the the robotic and core that Ekso's have our is of have experience we realize for to solutions and and

I will new Operating to call President Davis. Chief turn Scott Officer, our and Now over the

Scott Davis

Stephen. you, Thank

while the to record potential closely shareholder executive Ekso's working to I realize I look optimizing operations and leadership value. Executive role decades also and two the of companies. state experience our have an strategy. in business ultimately jump an track Stephen of and worldwide high I've and I'm and strong Development, a knowledge our performance president served performance, experience of I like to have company I as full I'd in leadership and to change more COO. assume of Before excited Vice team tech of intimate and the Strategy, first maximizing into of than and overview public President that Corporate Ekso's having firsthand with managing Ekso forward Previously, private

fourth record on XXXX results. about to fourth by Now a our We're pleased closed achieving have revenue. talk high quarter quarter to note

fourth strength reflected sustained value up solutions. both of of segments generated to our the million, in industry our see multi-unit we solid from to customers high revenue leading and secure engagement We levels, the customer medical XX% and results our XX% Our quarter as continue $X.X globally. In top several us enabling on an basis sequentially. segment, orders EksoHealth network industrial annual operators

trends. on combined bookings capital focused demand teams in We commercial most being Our quarter, third offerings, with order network XX to purchases, commercial continuation our flexible of leading the EksoNR flow. in with increased operators, quarter is a recorded

exceeds to On spans seeing revenues expand product EVO industry, and both the as to build moving industry look opportunity in this continues particularly industrial billion we for momentum, annual for forward. an market on evidenced by multiple and and across growth basis. The the side, growing We're the $X annual this demand sequential verticals. automotive

As team for we leadership prudent and managing remain responsibility. plans in will the uphold fiduciary costs our future, our

of closely keep to opportunities. continue our toward We an growth we as cash monitor and expenses use strategic eye

well an as on update commercial our Now, industrial medical I the for call segments Bill strategy. and our over will as global turn to

Bill Shaw

Thank the and you, expectations finished a QX board. exceeded across We Alright. XXXX with performance team Scott. strong our

of delivered $X.X revenue. million quarter approximately EksoHealth XXXX. fourth the For in We

Our new XXXX. top We from cumulative order a made efforts, in within of now the unrecognized comprised base. Because of the inroads unit of network all in many model. million order, conversion providers. XX% contracted bookings subscription and our just with closed our of XX% largest under revenue renewal XXXX, than network significant for quarter, network $X.X of US we We've six fourth the our customer have up rate more our is XX%. And

markets, delivered received our international customer. allows our partners are opportunities a We our a become on Poland. sales and rehab largest out of In of record market, outpatient one process, largest QX, subscription time order we've one efficient In with balanced from our direct capital contributing us purchases the more throughout we seeing more to mix in create Technomex, of the XXXX. Europe performance to centers. consistent depending neuro commitments which

growth. of Both to Earlier want milestone APAC this story that share value we APAC. shipping the and customer and opportunities see XX inpatient, Europe quarter remain Today, important went our center Hospital for for we Hospital adaptive we in where their center a with that and a their with was neurological strong health Craig year Colorado. month a for bring customers. and We device also Craig community the Ekso individuals peak the regions to which outpatient disabilities. clients uses had first Ekso demonstrates Ekso future significant wellness anniversary in serves with

for "being cord that bones, know Ekso I using to One stand with for the my a opportunity give injury XX muscles we're years sustained completed peak patients also We'd Ekso, an a many therapist and XXXX, patients, has is to than meant to clients they said, used to my a Hospital. is and the good Rick, in activity Craig Natalie more for of in over step my for for spinal the like way used staff that community their is Rick Rick's photo extensively It's photo their and congratulate in to time center XXX upright be. said sessions. and have patients ground. stand first stand the years two has Ekso years. families She who shared can health."

quarter exceeded update the progress of segment, year. quarter our an represented the fourth with on our And We the to plan EksoWorks. strongest industrial for XXXX. Turning our

engagement and the are we had with high of XXXX, and annual of customers. targets encouraged we For level by strategic full-year an rate XX% the growth

manufacturing within and aerospace, positive same in on are the interest verticals. seeing focus segment flow. automotive time, current resulting construction and At Our general logistic is we order more the

cases to COVID in-person to continue Looking about optimistic selling activities ahead as returning to XXXX, normal we are cautiously decline.

engagement levels are call We I'd XXXX. turn experiencing our trends, our lingering still to Nevertheless, the we and with increasing our commercial promising Jack industrial challenges, to Glenn, are CFO, to including our poised strength in in like review financial COVID fourth supply results. sustain quarter this time, to customer At chain.

Jack Glenn

compared Thank of quarter you XX% $X.X quarter for record revenue fourth an Ekso the million, of fourth XXXX XXXX, million to increase. Bill. generated $X.X

Our margin The gross a was same result compared of gross manufacturing gross XX% the margin ago. $X.X of of a a costs. the for representing approximately quarter slight year for increase slight fourth margin decline XX% primarily period to in the in gross profit was million,

channel to for based to expenses fluctuate compared $X fourth As million of of XXXX. were XXXX gross the from on million Operating $X.X mix. quarter quarter for product margin a fourth quarter tends and reminder, the to quarter

XXXX During to was business XX, OpEx XXXX period. operating we in prior-year in the of related XXXX, liabilities a million ended compared warrant the period with revaluation compared fourth expenses in from of and compensation to $X fourth development quarter December associated with quarter in to $X.X business for quarter return the normalized to level the the administrative the took and rise issued $X net the million loss of warrants company issued Net a revaluation for XXXX XXXX overall and place loss of quarter XXXX incurred in operating fourth XXXX, loss increased general a costs on and employee headcount. expect million The same increased warrants XXXX. the XXXX, development XXXX from the of more higher during Gain expenses and in XXXX. was $X.X million in

million in XXXX and million was the $XX.X the for full from decrease the gross expenses Turning the impact of Gross XX, of The XXXX. December increase the year and XXXX compared this the device increase of a million in general ended expense, XX% in XXXX increase XX, pandemic. fiscal $XX.X margin year from full XXXX. offset XX% sales, in as marketing same the the period fiscal was was a result million were compared driven XXXX. year to for from same Net $X.X to revenue year the volume million, for XXXX ended for increase of full-year profit of with million $XX.X the year period, profit $X.X loss the prior-year result with was in the XXXX In sales fiscal by the for to of period results, $XX.X year for Operating operating $X.X normalizing by in XX% of XX% $XX.X administrative partly of for increased business was Gross for for an million full an conditions million revenue the in our period which the comparable expense. XXXX. COVID-XX December compared

revaluation XXXX, XXXX liabilities for the associated associated XXXX $X.X a was XXXX. Cash the of full $XX.X of warrants the loss XXXX we revaluation operating XX, fiscal the in record $X a XXXX activities of warrants warrant in with in and December in used million with period to issued issued and million the compared ended million. in same gain XXXX, XXXX year For year on XXXX,

open now strong company and questions. As of cash for filed you earlier XX-K our of the see further full for balance XXXX, Please the line the December year. had Operator, million. XX, may quarter today regarding a $XX.X details

Operator

[Operator Instructions].

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

Swayampakula Ramakanth

fourth Congratulations and a XXXX. very on quarter strong full-year

starters, and board for you Just there of day on a spent Steve changes the quite and of overall could this? operations Peurach we the you're to want run you how the running have compared now the to a on Scott. think company doing was in some day here to how should basis, strategy would be to time bit Since Jack

Steven Sherman

And a good Jack Well, We company and good opportunity And very the shape. COVID. this in that gave company focus. did job. downsize to Jack good left a came to

right moment. right I early am, doing. this shareholders' We as branding doing hope, company. that to that everything equity. I'm confident, shareholder know, time you I to I open. be I a to markets the confident were that are I the I the focused the here We're an at I'm participating am have we're here. one. love on brilliant think lots have, in at fortunate work. intend assets accelerate that and I of we And beginning am we

our I time. think it's

are I'm the a of so gas bit doing. hard work on we make all And that sure my to we're job, the step going and proud pedal

Scott Davis

for to and is This focused. did also to, XXXX, that to business, strategic of We're in to efficient evaluating continuing organizational work excellence, more And operational the opportunities. We're course we're continue continue going we're our improve to grow our to more more Scott. we to even while going and terms strive of efficiencies. make great going business be this going

Swayampakula Ramakanth

to Scott, even do commentary, trying in this something changes, some strategic opportunities. initial you strategic about said

you sort strategic mean for? Are markets? products? at are So what looking opportunities Are do at you you by What that? you of looking looking

Scott Davis

of this opportunistic the and think looking at by predict. what evaluate we're answer Ekso we that gamut And will growth quite nature work run I is for continue potential BD The sort to see normally to Well, business and historically those is everything. could to – of the you'd difficult be opportunities. has activity.

difficult, to comment In time, XXXX, really And possible this we dynamic, this strategic difficult at of it's activity. work future on cannot terms is it's predict.

Swayampakula Ramakanth

terms business, first orders. of in multi-unit and terms the all, order also six-unit the congratulations on Bill, EksoHealth of in of increase the

and orders so of come beyond an So, through? number such should we expect have XXXX to increased

Bill Shaw

a I think dedicated and these focus in has with really really success customer stakeholders on has team network our helped adding us clinical align helped. teams

if stronger all our five things of than the market these own And grow of they at faster. you in penetration providers So, top are network core market. that into strategy part our our And to core market. our group is our look roughly XX% space,

to of predictor you're So seeing. a future us, that's like opportunities,

we again, is your do orders. every directly, little different. quarter question bit answer to But, to yeah, a So, multi-unit expect more have

Swayampakula Ramakanth

predict should this XXXX as of certainly, in that saw or sort first not of, does cannot if mean this beyond? of it the growth quo we and quarter, quarter, My in and better of levels, expect even last know status pre-pandemic I than the question you fourth is to as only we – terms closer in you, growth is COVID. go the But through folks, we but sort also I today,

Steven Sherman

I think address can Jack that. Glenn

Jack Glenn

give don't we course, of guidance. RK,

for that's with rates, standpoint the COVID of out in all. hard it's first this, say we talking a predict growth feeling are as of out I But things so, come to would are optimistic we cautiously better too, remain getting we So that, but And right? from us. there Bill

that we good. And so, feel again, say, would I

rates growth of think Again, coming off optimistic into those remain I XXXX. as coming some COVID are pretty of right? still well, And we

Operator

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

Scott Davis

to for operator. us today. everyone you, thanks Thank joining And

our We challenging closed against goals Up a selling to achieve our are for executed year. with environment, pleased to revenue. we have successfully against XXXX the record plan

operators of believe which with top core customers, relationships of gradual meetings is commercial the are inpatient continues, and the reopening in-person well strategy. positioned we rehab As the deepen we to current our industrial

adapt many cultivate are We to future even able the COVID as quickly been confidence proud gives can We're remains we to cautiously that this still and that unpredictable. these the optimistic we've us relationships the challenges, that progress. everyone day. great sales force all activities as want We to we our wish in to engaged you sales can the our have more providing forward We normalize. thank field look direct and updates on a continued

Operator

conference. today's concludes This

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

Ekso Bionics (EKSO) 25 Feb 222021 Q4 Earnings call transcript