Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Ekso Bionics Q2 2023 Financial Results Conference Call and Webcast [Operator Instructions].

As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to your host, Matt Steinberg with FINN Partners. Please go ahead, Matt.

Matt Steinberg

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

Bionics are Chief Officer; second Executive me today, Jerome from press Jason quarter site. Davis, is Bionics Ekso Ekso Earlier copy Officer. Operating Joining of Officer; XXXX. for of Web Scott Jones, available Chief on Financial financial company's A released results Wong, the the and release Chief the

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

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

Davis. call over CEO, to now Ekso Scott Bionics turn I the will

Scott Davis

and Matt, you joining today. for you, Thank us thank everyone to

EksoHealth pleased continued and EksoNR, most second revenue by our Indego of are execution of growth from the quarter bookings solid device our with number performance team. driven contributions record and positive We strong Ekso results, our of ongoing year-over-year, products very of our the notably a XX%

are us in across has patients follow post-acute care. this recovery more using to use taken in reaching and patients We differentiate outpatient differentiating progress continued to and believe with tremendous addressable for the provides continuum programs market. our to making community gives of patients approach and process. options the We us onto more strategy use. care their an in rehabilitative Ekso technology home This and our technology sizable access helps industry of from of a

alone the than opportunity a million. with Specifically, more VA provides the Indego of its Ekso Personal market us programs we believe around $X

our product that with US. along Additionally, domestically, which expands now centers us reach approximately XX,XXX the that for to is full Indego with centers, emerging the market outpatient almost an across facilities line, XX,XXX total total wellness

these large Our work hard seek awareness penetrate markets. greater we at and drive commercial as are to teams to marketing

with integrated record. second was bookings a Among devices significant the a rehabilitation. edge that care devices, booked the the order cutting In our another EksoNR seeing within of we firsthand our multiunit We a for straight sizable of and are large second lines. quarter elevate these XX the Indego customers This quarterly of IDN, believe IDN This quarter, from represents neuro devices. EksoHealth number product XX network, standard our customer. Ekso devices booking total EksoNR an or for includes of how delivery

and Ekso better in and a in a and positive six from efficient pleased us benefits reported our through existing we Furthermore, patient more acute is EksoNR significantly post the differentiated that form centers Our strong outcomes, patient clear care that with research to offering gain booking. larger of In reach our new note Indego a network devices in economic suggests resulted in value. base team Hungary in in distributor a for strength in booking indirect One have customer These population. generating the and benefit current deal APAC, individuals EksoNR our position adoption underscores Ekso investment first our are Internationally, the strong Indego who we're our commercial personal. in of to secured a awareness among heighten from reasons Ekso is drivers a we deal. operators, The Europe. can unit Europe quarter, are Indego region. demand putting use particularly to partnerships of the exciting leveraging

continue regions the these come. years important to drivers in to as We growth

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

cycle, During quarter, approximately focusing $X a as pipeline. a mentioned, and I'm quarter on where a other promising large a of subsequent bid go-to-market to sales refocus market believe of on This strategy, automotive we with global in number won different and but time industrial to leader increased the pleased second opportunities continued placing we we have into settings takes addressable a there is billion. its previously an report opportunity EVO competitive end, longer placement emphasis with we our

brings EVO new During from shipped we the structure. pricing quarter, a better contract which also us our first our manufacturer,

to is and team success on ahead, the increasing and targeting our and of commerce engagement safety Looking ensure demand customers' EksoWorks drive focused our large commercial workforce.

the such braces. a to XXXX rate services at rule or prospective clarification of rule from quarter the updated for codifying Medicare patients coming beneficiaries of qualified proposed the as development of support And Medicare RXO enhance potential a scope as with We proposal would devices leg, further the payment a to of Medicare and Medicaid home CMS for as this Medicare for end payment and fully business exoskeletal neck our on updates is providing facilitating provide Part for to we a look proposed recently access quarters. definition forward result, lump Personal exciting for Another exoskeleton-type This certain system the long-standing sum health benefit personal and the rule centers arm, is the back B for Medicare and in newly reimbursement. relevant race the a positive of for around braces potential Medicare that purposes. in as This of classify cut Indego step our the coverage was patients.

markets our and continuum expanded of number portfolio, by the worldwide. of Overall, to record solutions team of we commercial to in performance, in care. the our quarter greater newly by the look forward highlighted strength Driven are securing bringing bookings, a of life-changing and we we patients making by and encouraged large our multiunit are network inroads with large revenues orders across results operators

will I call Chief our Jones. Now over the turn to Jason Operating Officer,

Jason Jones

cash continue Scott. operations, OpEx and cost burn controls you, mandate Thank we related these and Within execute have of underway. to number a are improving efficiencies, Among reduce and on our initiatives our processes tightening increase associated optimizing to expenses to did human the a over That HMC with operating motion said, on our our inventory. year expectations control This the line basis. due in year integration. quarter or costs in with and is

On to than production inventory half the disruptions. optimal the supply XXXX, due pervasive higher have we carried of inventory chain risks to mitigate second front, since

levels quarters. more much in back improvements, are our these completely free diligently past up In we to lead not than response to additional are to time have working they our to predictable normal, While component products inventory now now progressively. been continues integrated portfolio, our a of a integration From perspective, are product care former The of capital. all of fully working broad mobility. into the covers for rehabilitation HMC portion and continuum HMC which optimize

are HMC The revenue our production are and a combined former working continually our utilizing fully higher. which improve. potential As we team systems, significantly to also now result, is operational

addition, additional year a process completion updates and as forward the quality In progresses. our underway of well providing to target I is mid-XXXX. the to look engineering combine systems with

now Jerome Wong, second to will turn quarter the XXXX will I results. discuss call who our financial over

Jerome Wong

you, Thank Jason.

approximately period by Ekso of gross on of XX% was for margin This million increase XXXX gross second and $X.X was second the XXXX compared a costs. Now second XX%. profit XXXX, sales. device driven the for by of in $X.X of of million revenue and results. an sharp gross a representing The gross expenses Operating $X.X comprised of the summary increase quarter million quarter to million in second XXXX. million margin increase of to XXXX. was quarter a quarter gross generated quarter were EskoHealth of our delays XX% affected quarter same increase profit XX% second increase The the to million, due $X.X compared our financial transition compared for in partially EksoWorks. EksoWorks to Gross a a in $X.X our in device by EksoHealth In increase margin from was to the quarter, lower revenue $X.X contract million for revenue, $XXX,XXX second overall primarily the decrease for of $X.X the in profit offset was manufacturer. a to

company basic and the an or per and in incurred million the net loss quarter $X expense loss increased diluted for the $X.XX $X.X related increase marketing basic was activities. quarter integration second of and the compared Net the During second diluted in million and to expenses of to $X.XX severance share of same for XXXX. XXXX, HMC, acquisition share or period per

six gross Gross basic period XX%. diluted $X.X $X.X expenses lower loss gross for for year Cash $X.X increased million the period $XX.X XXXX. XX, of million of Revenue of increase margin first the the the was first representing was representing operating XX% ended million device period. in XXXX $X.XX XX% ended revenue by XXXX. in the per of compared increase in half share gross XXXX of of $XX in to profit was a XXXX. and or margin basic were and primarily first expense our of severance increase six compared for loss to to marketing months in was the for $X.X $X.X June primarily compared half to increase same June the EksoHealth million Net driven million, related six in the diluted acquisition XX, million the in XXXX, XXXX first same to The ago profit expenses costs. net to six due XXXX in of $X.X for in from was million. HMC and million million The same $X.X to share $X.X for $X.XX to million sales the gross of or the costs. operating a used XXXX million device overall in period of Turning was compared results. million, or months $X and applicable Operating an integration in months months The activities down margin per $X.X period for and primarily same XXXX

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

Operator

Sean from from coming is today question first Lee H.C. Our Instructions] [Operator Wainwright.

Sean Lee

is question bit on on to and how It's first My provide color much product I is that great wondering is Indego the do if going -- well you the was the we've to adoption the hear a of the rest how overall Indego. increasing. it can seen revenue is of contributing year? increase last much the you going the for that more see quarter, and where in in

Scott Davis

Indego EksoHealth the considers these With as of bookings. devices our part devices, Ekso

So generally we speaking, contain those that category. within

of and the family for and community by EksoIndego-NR that Indego Indego home Personal and the rehabilitation products, within patient used are clinics therapy use. is by Ekso typically used Ekso health for However, individuals

talk community are health we our specifically growth that seeing XX% the the Ekso represented And and neighborhood product we within our QX, product product year-over-year strip our alone. Indego legacy overall. revenue of and and of line line even home about in of Indego, out the if in So our segment

in So numbers contributor great our certainly Indego QX. a was to

Sean Lee

want you bid prepared In details you to guys manufacturer wondering for more was that. whether the auto provide an EksoWorks. also that some remarks, with I you on mentioned can

Scott Davis

We excited the order win auto initial industry. in we're -- about the Well, from the that. really an auto with booked

well And those the fulfill pipelines. quarter challenges backlog supply and but additional we some QX. were coming to new delivery EVOs to with we our unable due late development continue into in we forecast our as those as in in into customers category carry However, and that have chain quarter, to of the

Sean Lee

on is question margin the final My side.

increase an quarter device last mentioned You -- prices. the because of margin in the increased lower

trend So rest continue can I of was the see the year? that wondering whether for we

Scott Davis

a in supply We lower to continue seeing to as chain. and operational work are, we costs efficiencies our improve result,

on that? working it would like shed little constantly are you to is towards. that trend a Jason So light we maybe Jones, more a

Jason Jones

of be I guess a ours margin position along we think higher, we're are I satisfied to would our higher. inventory. that's focus just but I say forecast our should not We it current level. to don't going that be with in with that’s think a reducing

the we’re forecast higher But in we're a future So that's to operating. position numbers how don't think yet. I in

Operator

the over question-and-answer to reached further session. like of any Scott floor turn I'd to for closing We end our comments. or back

Scott Davis

Kevin. are revenue. you, we this highlighted made to we bookings and the everyone, by All of year, record right. far quarterly so our EksoHealth Thank And very proud number progress of

team care, we of half great Thank throughout providing and relationships continues expanded our positioned look of across We're And now commercial strengthening with to our well that product forward We Our you we of to demand top have into portfolio all beyond. to the momentum generating second new additional this orders. XXXX are strength team and believe reaching and operators. with sales the combined sustain generate network new by the continuum multiunit updates the day. our year. a

Operator

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

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

Ekso Bionics (EKSO) 27 Jul 232023 Q2 Earnings call transcript