Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to the Ekso Bionics First Quarter 2023 Financial Results Conference Call.

At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. And as a reminder, this conference is being recorded.

pleasure your my FINN Matt now Partners. is to host, introduce Steinberg, It you, Thank sir.

begin. may You

Matt Steinberg

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

Officer; Officer. Ekso Davis, Officer; Joining are Jason Jerome Executive and Operating from Financial Wong, Chief me Jones, Chief Bionics Chief Scott

released company's for the Bionics website. XXXX. March quarter is release results the of copy press financial available Ekso ended XX, Today, A on the

the like the the Safe are Harbor make Securities be include begin, deemed Act provisions I'd pursuant made to should call fact of within of of statements statements XXXX. that forward-looking this during to historical we that this made will Private Any be Reform remind statements. securities of Before statements management not Litigation federal that during forward-looking call statements are laws, meaning the you which to

All statements forward-looking risks various regulatory operations that or to cause estimates management's strategy, forward-looking operating of future or could and governing current or these business materially are our events financial results our statements. the involve implied our actual those material products These and anticipated statements from expectations upon by landscape statements, expectations, differ or uncertainties regarding based assumptions. including and

on Accordingly, you not these place statements. reliance should undue

except whether or the any other or because required For with revise please events obligation, its see associated by Ekso statements, the Commission. or risks a our projections, information, law, update financial Securities description as of or list with future regulatory and of forward-looking otherwise. any disclaims filings uncertainties to and our businesses, operational and new outlook Exchange

April as sensitive accurate time contains is call only conference of today, the broadcast XXXX. and XX, This information

Scott over turn Bionics' to now Chief Executive the Davis. Officer, Ekso I call will

Scott Davis

first off compared year. thank million, we joining Thank XX% quarter, up $X.X XXXX. you, to achieved to the In everyone, We're last this for you, excellent quarterly record of start Matt. revenues in an today. us And time

as well strategy, recently Indego success of contributions product of acquired our Our line. as were continued result the levels from growth commercial our

exoskeleton and We rehabilitation to community foundation in have home from solid need changing to devices built game centers our believe patients we care and a settings. outpatient facilities into to bring post-acute

Our to advanced across of our on forward patients by to that the bring solutions care. treatment excited team this enables expanded momentum. our more We to continuum us is look focus building

Now I will our performance, business share updates with starting on EksoHealth.

the first to we revenue gain of or delivered with operators, EksoHealth million network $X continue During quarter, traction IDMs as

As multi-unit including multi-unit large EksoHealth we part In of EksoNR large largest total, orders XX our network ever the several booked second with order quarter, secured the in strategy, operators. operator. a we with devices network

illustrated by which our also order demand As flow, are healthy is we record revenues, our growing pipeline. and to strong adding generating quarterly

renewal under model. remained of this quarter the we've strong a Our made inroads with subscription cumulative bookings strong for rate conversion was at our unrecognized with commercial $X.X approximately and contracted a strategy. revenue million XX%, and Overall, to our testament

success we've throughout investments prior of Internationally, year. the these is APAC EMEA positive has to sales driving with seen up have last made compared been that internationally in first in quarter process EMEA growth more opportunities reflection are our growth regions, Ekso Increased to the quarters. important XX% support regions proficiencies and and a

personal We our device have are Ekso the booked first quarter. also pleased Indego Europe to in during

robust strategy and Going expand international network demand domestic diligent in to our our fronts. in forward, the distributor will generate both we pipelines remain and

and to growth with to Therapy key our early update progress Motion contributions smoothly. be HMC recently Indego on our continues And to in will forward. Control unit. Turning that an the first or Ekso line we our top integration The quarter, moving Human business anticipate to acquired Personal

need across can Importantly, to of home markets, we community market patients and larger care now whereby continuum across the the use in opportunity. this our expanded acquisition reach product offerings more

partners, our and University. industry, key pipeline added and we strategic relationships Furthermore, research orthotic expanded with O&P commercial to the or prosthetic Vanderbilt including development and product

will updates We provide in the more on here coming quarters. our progress

this is innovative a advancements organization SoldierStrong, and to partnership whose charitable technology Earlier the our mission and their it revolutionary we with provide to of our lives families. month, reestablished veterans better

in It's years the purchase XXth an that operations. to donated is VA of their of understanding Medical of Affairs Indego and device Medical the the Department SoldierStrong Veteran that has Charlie exoskeleton Center robotic last in our XX donation to Ekso Norwood Georgia, a Center Augusta,

honored SoldierStrong we our to look valued are through support joining needed innovative forward and veterans devices. bringing to We and with our rehabilitation be to forces much

EksoWorks. an our progress update Now turning on with the line, to industrial product

first During large to our towards focus continue we from transition customers. the purchases quarter, volume

the marquee across interest booked. and this orders future large customers a energy, opportunity. EksoWorks addressable construction, that and verticals, potential are seeing from in customers taking aerospace of are the automotive large on sharing offers at pipeline green manufacturing, updates plan from as market We share the path from We believe

our team patients our Indego EksoNR recap, operators, newly commercial as and driving also We're need. excelling product strategy securing large in from success our is customer illustrated orders To performance. our revenue pleased our while line devices of particularly for raising Indego multi-unit record by introducing the the at demand network new in to and Ekso acquired awareness with

continuum beyond, demand the across our we driving growth sustainable remain ahead care. for Looking and and rest focused of to of the products XXXX on

this for call I'd At like to discuss time, to the our developments quarter. Jason the operational to turn

Jason Jones

By elicit significantly we in process everyone. believe from am the potential And we modest incremental driving you, on to more we standpoint Scott. the afternoon, our operations, operational made have I spending. capital have an Thank progress the pleased with our only volume with continued in with efficiency quarter focus good improvement. first

achieved with pleased products. progress and the HMC team I'm integration of also on the

extremity and across With merge the market we the our how to evaluating goal are best of patients of leading delivering lower mobility continuum rehab care, solutions to technologies.

look device to software, proprietary additional providing encapsulate which majority intellectual combined the throughout of updates potential about of excited sets year. property. capabilities the our the particularly of our I'm to combine the forward I two core

Now I'd the financial to turn to first like Jerome results. quarter review call over to our

Jerome Wong

million of to The decrease by for XXXX, in was million first $X.X $X.X a $X.X Thank increase offset first EksoWorks. XXXX million EksoHealth you, increase increase. million Jason. a of compared Ekso XX% partially revenue, comprised quarter a in of generated revenue $X.X quarter the

in margin primarily profit ago. in Gross driven was year for lower due representing XX% a gross profit the by XX% first quarter margin to approximately gross device period the overall to the $X of sharp same XX% margin expanded EksoHealth while sales, was a for million, a costs. compared device increase increase gross The of

were first for million and million quarter the increase offset was the compared to marketing The XXXX primarily activities, acquisition increase associated $X.X HMC an to of the costs Operating with expenses for of $X.X service the partially additional by first costs. lower quarter XXXX. in of due

a $X.X $X.X million. Loss XXXX compared operations from XXXX prior-year first quarter was operations with in quarter loss in the from in of was million period. in $X.X of of the Cash used million the first operating activities

XX, today As of million. balance our of XXXX, quarter. for XX-Q filed cash regarding had the a the earlier details company March $XX.X further see Please

open questions. line now may for you Operator, the

Operator

[Operator Instructions].

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

Swayampakula Ramakanth

on a strong Congratulations XXXX.

contribution on a questions. But the trying quarter in XXXX? the have from first of the to few Indego what focus is I latest to itself off, product, Indego, So start

Scott Davis

Indego is into do that, from say to numbers. relatively But The tied I in our year the overall contributions, can EksoHealth we modest. business Indego strong progresses. our a are the the revenue But rolling contribution EksoHealth anticipate contributions were QX, – we as

Swayampakula Ramakanth

I Indego including said, growth is one it there's terms in In to being of meaningful sold is stage. mean quarter, the was to additional time of there meaningful? of and for EU EMEA it EMBA, What contribution that mean revenue becoming Does get in that to that as sales XX% need in Europe. that still enough you strengthen in you personnel becoming or the terms that that kind is

Scott Davis

strong very HMC, I acquisition additional think with picking commercial ended Europe, EMEA. in And the we as we of team well. an in have up up resource a

added the team. to we have through So that acquisition,

to the business. at way support is was think it as built being was scale able larger a developed looking in the of to EMEA team I be it

through So, distribution And of HMC network, we the partner go additional our partners. again, to there The in distribution we an region that strong DACH way both pan-Europe, well. use and have market expanded that. manage has combination resource a is direct as then to the we

that So we significant seeing in feel increase like we're EMEA. this we are resourced correctly for

Swayampakula Ramakanth

more the In number, sustainable? first of the saying quite were also, for a number make was to quarter you bit orders, the also and kind bit that US, Can increase the it you increase And how you plan us? little contribution a during it orders. of multi-unit of define multi-unit do for

Scott Davis

for This RK, we've working is something, on years. that been

happened is just team US has pipeline surprise the So that or that's been not on a development something working the recently.

combination appropriately resourced commercial rehab relationships build becoming it's inside a are with IDMs. of standard strong programs our more IDMs. neuro quickly clinical have these our team well And care as these of as We both that team the of of to supporting a

the As are even outside we of growing in opportunities more, but multi-unit pipeline, present in more at look US, seeing and and just US, our our and necessarily also more the not pipeline. we're strong that

And deliberately we within done partners. those of that relationships to years is and work continue every So, effort. day within and that those again, something continue with those and to segments this was grow at

customers. HMC, and that we we offer Further, our new as those acquisition expanded same products can the we've of within products through have exciting some

Swayampakula Ramakanth

me before expansion complete you Last operations. to sustainable question actually further point? on expansion margin need margin integration do just the of for we the can from this potential there about think Is here? Or from at HMC

Jason Jones

some years, a one supply to margin the think I knows But would everybody that's is there's the that. challenges, going that. many factors say on. compression over of Jason. that of had couple last answer really This is – chain I'll primary we've I and which little

But our some there. peaking there's of out either is So or us. it, behind on feel that is of most like view that that still we

down is the integration cost product expectation through don't those costs continue will think drive about chain that talk to to to line time I supply activities. my we'll driving with it's Indego reductions. So work

more supply I a just rational think it's more chain.

level. thing inventory that supply extra are stabilize. I would things think to our kind of guarantee built those expect I for all The inventory to and we've same starting

of expect those going So, from improvements some both forward. I

Operator

to are turn for time, closing comments. like I questions. the At no further this now would over Davis there floor back Scott to

Scott Davis

joining thanks And to everyone Maria. Thank us you, today.

record demand devices, first and EksoNR quarter our core EksoHealth revenues for executing were Ekso including strategies. acquired the encouraged by Indego on our we've progress We reflect newly and strong performance made Our innovative both the products.

Our increase volume continues support of large operators. by in multi-unit growth our as to orders network strategy with the evidenced commercial

Personal in need patients home the reach continuum opportunity and and Indego of care settings. Now to Therapy devices, with across Ekso additions we've to Indego Ekso our the market community expanded of

and XXXX look to to We sustaining start momentum with forward are pleased forward. this the strong moving

In their And like their thank invaluable contributions day. to our shareholders closing, and have employees Thank a you. for I'd support. for continued great

Operator

This concludes conference. today's

your Thank disconnect time. lines participation. your may you for You any at

Ekso Bionics (EKSO) 28 Apr 232023 Q1 Earnings call transcript