EKSO - Earnings call 3 2023 | Ekso Bionics Holdings, Inc.

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Operator

Greetings, and welcome to the Ekso Bionics Quarter 3 2023 Financial Results Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Matt Steinberg of Finn Partners. Please go ahead.

Matt Steinberg

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

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

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

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

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

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

Scott Davis

for to achieved everyone devices EksoNR us strong significant quarter thank and today. grow us sales XX% we year-over-year. to quarterly that for a of another pleased that our to propelled by Thank announce you, joining and Matt, you revenues I'm Indego

groundwork segment, Ekso EVO Works In we in unit have record established the number addition, a for of sales. quarterly our resulting

Finally, efficiencies improvements execution resulting our $XXX,XXX the hard our to operating Overall, costs, work growing loss our reflect in focusing operating of narrowing our our markets team. in target well to we QX bottom continued to of on of and in by results as a line third continue our improve the adoption products across compared as quarter XXXX.

sold EksoNR third XX We devices a quarter, Indego the within revenue product includes or EksoHealth of recognized new devices total which in the on and Ekso lines.

quarters, top with in to EksoNR will order key we As network strong ability continue growth our a large from quarter integrated delivery the in to a our multiunit previous network. building device operators, be our order like a believe XX pipeline

Additionally, we personal benefit heighten to to our awareness relationships our for in activities. committed of can existing long-standing base who long-term remain use leveraging customer daily from with individuals their devices our

our VA Ekso Affairs the product part go-to-market with Indego a critical our Department with relationship Our of Veterans or line. strategy U.S. of remains

needed compatible encouraged increasing and Personal lightweight, a our community Ekso this clinics Ekso and advanced spinal of to our injury are design much Therapy We modular use VA bringing hospitals We access of getting solutions our remain the who bring through support our settings. Indego in to have committed exoskeleton in our slim this rehabilitation suffered potentially valued our technology. cord Indego to veterans more veterans in life-changing both better home of by that adoption devices technology the and both hope many profiles relationship. and are wheelchairs can The with

as part Europe, Ekso order, an APAC, we front, secured In of we in success multiunit in EksoNR our to In to a of Indego is relationships the highlighting our international strategic these of first now remain EksoNR of indirect in a investment which devices order our addition across regions care. partnerships. larger distributors. several the while secured expanded continuum customers with we On capabilities our We orders, raising Personal sold on among orders one order, X-unit multiunit largest that focused our building of X for global Indego. awareness the multiunit EksoHealth stretch

certain the quarter As for braces category the for new mentioned or rule Centers to is personal payment home coverage expanded the a Medicaid exoskeleton-type the approved, important exoskeletons or have to This Ekso on classify Personal addressable estimated XXX,XXX cord Indego on the grow proposed prospective Medicare we our health CMS, in would XXXX Services, call, a proposed updated because in with braces devices Medicare for purposes. who could and Medicare injury Medicare significantly this include second payments If spinal individuals rate. for coverage. rule Medicaid as it believe population benefit

device current a of at Importantly, the their obtain Personal Indego these fraction cost. individuals could Ekso

Indego look applied for recently Medicare forward Personal we expected November. which determination. to of Ekso in Code level including ruling, late CMS' We is Additionally, reimbursement,

on line, update Ekso an our industrial to product turning Works. Now

we implementation initial this manufacturer, our that the EVO number our opportunities EVO this our workers. higher With commercial several provides productivity sold part quarter in record quarter by of new third Driven and are a our promising momentum. we recognizing As of a the units XXXX, new and pipeline benefits volume product. high-volume encouraged in employers secured pricing to of compared are meaningful efforts, for to safety resulting industrial of strategy, sharply the by contract

placing on of approximately as we consists which an While revenue settings, in forward providing to addressable placement updates remains market additional segment industrial verticals. further across contributions industrial large an market were penetration our opportunity emphasis of from $X Industrial look billion. We focus drive our EVO's modest, our increased on

provides throughout Ekso listeners our an site to site to customers to have visit and invite Overall, new XXXX. user-friendly for pleased will branded platform the launched from at future recently Works experience made acquire a apparel we directly and Ekso. As to with we purchase accessories. to third that quarter we allow shop.eksobionics.com. growth, our encouraged Ekso continue This by scale -- also e-commerce progress customers are customers are and We all we performance EVOs

our Going with forward, in multiunit is Achieving products, awareness more of driving we're and our and our and existing strength efficiencies. large improvements for new orders XX% and operating team adoption to across customers, product portfolio. operators the year-over-year commercial of the a revenue driving demand on sustained securing market continuum expanding greater in growth on focused target our of expanded continual access care network markets testament and

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

Jason Jones

our costs tightly, resulting to manage continued third operating quarterly expenses with flat HMC acquisition. expense despite quarterly both the narrowed operating In Scott. loss operations higher you, quarter, our and associated operating team headcount year-over-year in Thank and

of impacting to improve effort growth. quality can part or we efficiency cash As positive flow, achieve we our where without areas to continue for look

second our financial disruptions. in we have noted risk been to I to inventory As supply quarter call, chain carrying higher-than-desired production results due mitigate

couple supply Over inventory. to chain normalized, allowed quarters, the has us has which reduce our past of our on-hand

our since evidenced, was in XXXX. the inventory quarter-over-quarter reduction in first As quarter-end decline at inventory

reductions supply flow inventory management updated our possible. believe approach As through are chain, the entire further we and

higher enabled contract manufacturing see to to This mentioned starting the lower Scott our in to is EVO product successful As partner Malaysia. pricing. by we our orders of in volume strategy are earlier, for transition response line

and ability increase the calls. outsourcing respond any to demand. additional of significantly manufacturer gives the EVO operational higher to forward addition us lower to In I future quickly to in updates results on costs, look our providing capacity potential financial

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

Jerome Wong

Operating compared of $X.X in gross an XXXX. Thank profit increase was and margin you, for an third third due generated revenue quarter million was XX%. increase to Ekso device revenue. by of third quarter $X.X segment. The for for $X.X Margin $X.X in $X.X comprised gross gross were XXXX. in sales quarter lower for Gross service to million profit a same of was of the in million EksoHealth a Ekso driven the profit Jason. quarter revenue the increase quarter increase increase XX% approximately million million, overall of $X.X costs. $X.X of increase XX%, XXXX, million gross million EksoHealth compared XXXX period and margin million XX% the $X.X for third expenses to third was of Works in a a in compared to expansion of representing and EksoHealth a the This primarily

period the increase for compared to additional loss $X.XX Net basic third offset in million was legal for due partially was quarter headcount and to diluted of basic of share net The to primarily associated $X.X the the and HMC, per million or $X.X in diluted $X.XX with share or by XXXX. stockholders same loss common applicable decrease acquisition expenses. a

same for driven an million compared sales Revenue the a gross the $X.X $X.X XX, months results. $X.X of -- increase representing profit XXXX, to for million. $X.X increased in XX% same million, ended margin margin of revenue September year-to-date million of XX%. by period in in Gross representing in XX, gross XX% to gross profit months $X.X to X or XXXX, XXXX. compared ended primarily million was million $XX.X was to a the device The EksoHealth September for of XXXX, X the increase a Turning

share operating period to margin X the for in down expenses common a the primarily per $XX in was period in -- diluted primarily of of applicable The of $XX was headcount was share used XXXX. $XX.X diluted $XX.X XXXX same XXXX of Net were XXXX and related acquisition lower HMC. months additional of to period gross operating XXXX. first in same or increase due or costs. basic device The months of X XXXX. million million overall to in for activities the for $X.XX for was and the in compared net compared the activities basic with first million Cash associated the in expenses same the Operating months shareholders increase and per million, to first loss to $XX.X loss million from X $X.XX $XX.X integration million

cash the XXXX, on XX, $X.X had September of As of million. hand company

now XX-Q our for you questions. regarding further for see earlier filed the Please line quarter. details Operator, today the may open

Operator

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

Xun Lee

So couple have I just on. questions a of

First, CMS on front. the

month, U.S.? meeting sales have when how coming next out much the an assuming And would into on say you the rules your basis, effect? With in they'll come goes well, the your on would anything impact of new

Scott Davis

about there you We're excited that is Medicare, Sean, bit frame process complicated for from really notification the Medicaid the exists of to end Yes, CMS. your with we patients The been potential that begin we've a The through given. process for thank process. is November time the question. as

impact of quarter XXXX. but first So this see could that could positive happens, on in to the we start the starting assuming -- we -- business

it to would pieces complicated lot approval lump process. ability rather the that folks a the exoskeleton There's the a major market of moving potential in this a be treating of access a and and is as this of up This technology around individuals. population step reimbursement to wider the But open much first sum brace for will this.

XXX,XXX or Medicaid Currently, also approximately spinal there cord injury coverage. individuals have have -- are suffered who and who Medicare a

Xun Lee

second greater volumes, Ekso especially question great Great. from getting -- It's My you the guys cost that's that your to in see operating the margins side. is into are and Works on better improvements. translating

I So years, improve do next see on margins where X these you term, where X medium to speaking wondering could say, you these was see to to? -- longer do

Scott Davis

margins talking specifically about or specifically to reference Are made the general? you Works business as well. on just Works Sean, overall the had margins or you also in Okay.

Xun Lee

Both and please? Works, for overall for

Scott Davis

yes. Okay,

anticipate we continue his have We really as and volumes additional we as forward, go there. these lot in that been improve. Certainly, well. lot are in we the a as optimistic volume the doing helping supply is So to been and our work. team margins of to a increase as improvements, continue that we Jason improve we performance have chain toward that to doing have continue will operations

the high On really is side the contract put for volume. this in relationship was now Works the manufacturing we -- of business, place -- that

mechanism margin we the to to relationship increase maintain our As volumes within have volume. continue good we increase, this as

in blend room for see a to several the into starts margins, our we meaningful that we as -- in as through margin overall our improvement next again, go to and -- continued So years. way

Xun Lee

to region. good orders Great. guys My It's getting are Asia from that the multi last question business. Pacific you is on the international even see

expect terms -- overall where in to So I the market the wondering you to revenues? international market grow of your do was

Scott Davis

Well, thank you.

as relationships and that's Europe the exist in strong built a everything in that market So to discipline, well we to networks Europe, partners a across have that region sales in -- throughout very from as some support. certainly international with Germany, presence hospital have And Asia we regions. region. In presence clinical distribution we've larger located very in growing strong strong a Pacific team

will growth, grow. anticipating Europe health is year-over-year are enterprise good that So area continued enterprise to we business. -- on be business there believe devices, and that on the that, in we internationally, are personal just starting growth an good our really And

we quarter. last -- placed were X We in this devices APAC

we a individuals. level opportunity various of So cord are great that see offering as within spinal countries some for injury there as also reimbursement to mechanisms

anticipating we continued So in growth see relative North are to regions growth today. we these American that the

So I a outlook positive think see -- overall, we it's a there.

Operator

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

Scott Davis

Thank you, Maria.

the like quarter I'd some of call, final XXXX. today's closing Before reiterate we as takeaways enter to key

of Indego we of neurorehabilitation standard care device First, care. we're growth to continuum the momentum the strong building for and another of across EksoNR elevate continue sales, with quarter

proposed coverage for the patients. potentially We potential November, Indego further to proposal for beneficiaries. cord the and to of adopted Second, If Personal for spinal expand CMS. Medicare we Medicaid fully enhance Ekso thousands rule in injury support access

starting see sales unit record quarter. results from with strategy for to EVO Third, our a promising commercial we're

we by take plan product positive these bringing poised finally, progress achieve joining forward operational ahead. to We we're in our the you for step and continue Supported growth, on innovative today. customers and thank all want look scale to worldwide. devices flow updating our us next expansion contract through line We cash revenue you our improvements. on manufacturer, to to to to execute new And

Operator

This concludes conference. today's

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

Ekso Bionics (EKSO) 26 Oct 232023 Q3 Earnings call transcript