EKSO - Earnings call 4 2023 | Ekso Bionics Holdings, Inc.

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Operator

Greetings, and welcome to the Ekso Bionics' Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt Steinberg, Finn Partners. Thank you.

You may begin.

Matt Steinberg

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

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

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

except now this Davis. Chief statements, to whether will Ekso speak future any operational of the with obligation, as Securities of call to the statements its Officer, our outlook only financial on please made filings events businesses, description Scott call or any the by Executive or revise this For regulatory with Ekso projections, information, of call. I or law, a Commission. see Exchange list as risks or Bionics' and required otherwise. of turn date over Any forward-looking the other associated uncertainties new forward-looking update and because and our disclaims

Scott Davis

We're positive note, highlighted XX% have increase Matt. out prior million, you, revenues XXXX an excited closed of Thank to period. by year annual $XX.X of from record on the a

the of reflect in commercial scalable continued addition contributions improvements I'll to early Our our XXXX. XXXX that in today's quarter the in revenue our and generated in Indego share Starting of business product consistency our briefly million a of fourth results other of updates. fourth solid late returns call, the with QX in results, from same results $X.X period review strategy we increase from acquired XXXX, XXXX. On quarter XX% lines our we

cord During the segment, spinal the inpatient Throughout patients we and exoskeleton continue brain technology to to devices. injury, our traumatic road multiple EksoHealth XX enterprise sclerosis sold to recovery. our leverage advanced facilities stroke, EksoHealth rehabilitation help on quarter, injury

clinically Our standard patient neuro to functional for proven our in rehabilitation. the elevate of improvements outcomes efforts support care

patient volumes. Additionally, by into higher from output continue into value year operators. the of to EksoHealth a our these translate commercial strategy vast Ekso led shown patient to our Altogether, our record our proposition devices and for we have points compelling sold. selling to network orders devices data renewals multiunit multiunit The commercial team and both of Indego therapy to implement throughput and increase been rehab providers their neuro EksoNR programs economic drive to

trust also and pipeline GaitCoach in The and making for enterprise clinical of and we our year, utilization, results marking the We for initial both an introduced this further intuitive. Feedback as full reduce this XX% to and from we the EksoHealth we this believe their our is EksoNR. levels. expand simplifies for found devices, sustained upon on with continue robotics. the product network to offer EksoNR believe intention goals. training growth makes be to opportunities. Earlier software a this EksoHealth all We in to website. to and device software increase therapy easier achieve new improve GaitCoach extra GaitCoach it impactful our demands to clinical well upgrade use exciting gait of provide to is survey as the from new A feedback of clinic easier intuitive EksoNR positioned EksoNR useful for use. of is sold launched up guidance have software our strengthen GaitCoach use therapists XXX help less support eyes. exhibited devices technology, momentum recently were at software user have drive XXXX, for indicated milestone set to XXXX dynamic will patients next-generation more For It improvement of acting and of to we can year pleased nearly specific our finding that or GaitCoach are believed therapists is that physical build distribution and experienced demonstration users Users our through guidance to be for patients portfolio. our

on that determination Personal exoskeletons, personal including for update deferred XX, device. the Ekso a an our February Ekso Personal. payment to Indego turning Indego On Now CMS announced

support relevant to to as CMS supporting rate As additional help products intend that our Personal. Medicare Code part CMS HCPCS our under provide of of reimbursement provide process such established, on non-Medicare Indego a We KXXXX, additional payor claims payment provide commercial its determination communication, data a will the customers been details has examples qualify would requested a that rate. Until support basis. to help to we case-by-case reimbursement materials for

number life-changing and a individuals affordable living help offer average well-built will cord injury. We we allows through lightweight, feature packable, XXXX, with continued crosswalks. spinal achieve VA committed device The advanced device important their look and veterans community. program. with throughout forward with SCI reimbursement walking a the work injury our this cord this modular speed, easily higher it if for Indego products design gait and CMS allows use to communities individuals potentially spinal navigating to of done more them them living have continue to an along established a to our the reach Personal is Ekso to the of in with enable delivering to consideration to we technology As bring

the as front, distribution increase in fourth gain only Not APAC we to EksoNR more we generated across achieved EMEA solid abroad. our getting we multiunit built generated Europe. quarter, international leverage but On sales network. our performance sales regions Notably, the the an across of and enables volume in network operating we us on strength are placements, Eastern

to growth across our on customers larger building Looking the Ekso's with ahead, these we international regions, support focus ongoing globe. footprint continue in as relationships we invest to in

turn contract demands customer constraints through costs relationship, on of update we'll we continued our to industrial high-volume and able drove we notable manufacturer. substantially like By implementation I'd operational market high-volume a and with and expansion. supply potentially the believe growth reducing industrial lowering on our EVOs Now line, be pipeline. Based especially for are we meet on In contract segment XXXX, to supply this, product of industrial and better from new side the in feel an manufacturer initial our Ekso to our we Works. progress supply pricing the poised

market in commitment the segment industrial steadfast of and in We're settings, on have Overall, While from industrial EVO's placement remain for EksoHealth pioneering we maximize on revenue contributions focused significant opportunity. performance out continuum building to our levels, market in positioned our record-breaking recently the I'm XXXX. leveraging large care at our are our to believe objectives. with our well deliver across devices enthusiastic revenue emerging we modest been a

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

Jason Jones

pleased I'm developments several to Scott. report operations in achievements and XXXX. within Ekso's you, Thank key

First, efficient scalable operational we've leverage, a reflecting bolstered and our operating model. more

expenses. Further, our by also XX%. of inventory operating inventory XXXX completed still new for reduce XXXX, this despite year will the able We our will collaboration going We the compared Hannifin's believe management once forward XX% processes life implemented, expected system system. have like allowed costs. At year-over-year time, revenue over year by forward the growth. financial management While Officer, efforts on the cycle to new our entire We our inventory to Ohio compliance us IT transition hand be of as our system to review call reduce in and and This to prior the development our leverage single to as team improve turn increased fourth audit fully there from efficiency. a X% we grew achieve to onto to our Wang, quarter operating In Jerome only believe Chief indicative this the and sites room strong expenses across Parker believe revenues quality is QX, we a Financial on to the of teams to to is by continue and going we're in planned full product our quality is manage results. electronic improve I'd throughout product with consolidating management to XXXX. and our foundation system over company of our transition that end

Jerome Wong

was primarily common service XXXX lower and million for the due $X.XX The per gross the We million of was of $X.X of profit $X.X quarter were EksoHealth burn the compared to revenue quarter expenses to to quarter same a Jason. XXXX. Indego stemming volume in lower margin basic per $X.X in from compared $X.X net XXXX. Operating approximately XX% for was decrease due the due quarter XXXX. million sales. $X.X and stockholders basic XX% fourth cash XXXX. period diluted increase to compared generated the X% of for was sales. the increase an fourth same profit XXXX. to primarily million to quarter margin general $X.XX fourth million for legal administrative to $X.X device in XX% and gross the you, the compared quarter EksoNR of fourth a and for was increase in primarily of XX% revenues $X.X device fourth quarter an of loss a gross in the driven gross or and increase of of share $X.X for an of the quarter EksoHealth $X.X share to loss and of was for diluted to applicable increase XXXX million a fourth The of costs. Operating million Thank expansion to in is Margin profit Net million, period expenses. fourth the million fourth million Gross in device $X.X representing decrease or of compared a expenses by The primarily for

was $XX.X and XXXX to revenue year for XXXX for activities by $XX.X same basic Revenue increase or period. million for our in prior the service $XX.X million compared $X.X a period HMC. XXXX product in full diluted in XXXX, the period Gross the increased loss in compared full year EksoHealth and $XX.X gross $X.XX year full to gross of representing million, device a year increase fiscal XX, $X.X operating the per to and result The million diluted $XX.X device The full primarily million primarily gross increase an to and expenses of mix. Operating million. expenses increase Net XXXX the for The $XX.X was was the of share, profit results. used million December basic a a of to compared by margin XX% applicable was driven was million net integration per to XX%. related XXXX. year with $X.XX million. of lower and were compared operating acquisition XXXX in the or of year. Cash Turning same loss in to of sales the stockholders $XX.X XX% ended full for for million in for costs in representing share profit common margin XXXX, profit a year gross $X.X approximately was the

to today open Please questions. approximately XXXX, in Subsequent resulting As institutional of $X.X a Form of filed the registered details cash and total now for proceeds certain December the direct regarding $X.X the Ekso XX, our for year. Operator, company of the offering you on line quarter closed may net earlier hand to further year-end, had see million. XX-K with company full on million. investors,

Operator

H.C. first Our from comes Instructions] RK Wainwright. question with [Operator

Swayampakula Ramakanth

First question pricing. is Indego on

in on CMS pricing with So come hear still until up you're final up I with case. and number, discussions they a it's by that did the case

in on become that do too X, CMS from to far need a to you effective here? not price so do what that we a helping come decision, of April which will have terms is So

Scott Davis

RK. Yes. you, Thank

meeting this recent November, So additional they with CMS' took when commercial pricing had requested -- have pricing to commercial announcement, information provided Back CMS. Ekso in place evidence. was

done time on However, not in Personal officially through for we the which November December was frame, our device, X. Indego PDAC approved were

not include did it that pricing As appears this evaluation. information a result, CMS in their

to we work that in basis. support to pricing details interim, with plan information And we'll to their case-by-case to this the on commercial they with our require. customers So claims Medicare continue along additional a provide to CMS any information provide

Swayampakula Ramakanth

Okay.

to possibility that resolved So for before next does to is this a the mean Or pricing? we start, final wait is might a which have November cycle things X? for April there get can X

Scott Davis

we are they and There's our typically their Yes. -- publish where consulting CMS pricing with who spoke meetings in biannual area this determinations. experts has

to possible However, we are a being, that to support In CMS detail providing as support this biannual going time process. final to meeting. determination. correction the told we're that requested certainly this by to we payment know could that the it's they We'll prior issue pricing work through more additional continue

Swayampakula Ramakanth

entire up multiunit to to the sales/multiunit did the quarter leases XX% beyond? sales, are quarter areas the you much really you is especially into just in sales going expect the Okay. and of. year-over-year to happening? fourth growth have you happen accounts do areas then I'm be the sustainable? where How in And proud of trying of sales for growth through where understand, something year. new and 'XX increase is thinking in this open also -- the new some more fourth see Or to new

Scott Davis

question. Great Sure.

on of inside pipeline the of and a we've at go-to-market that organization. strong hard a is been One our work things scalable strategy building

patients and So our to clinics. Indego health enterprise customers, treat relates to that who or much customers are in using -- therapy of NR our

have of quarter-over-quarter of programs with them we in additional combination out are standard rolling saying a a of increased more as care couple this multiunit in addition doing to online their that IDNs. coming a we've to are who number of these new for seeing inside we an now been IDNs are of been of coming that, we and have orders years. We what become And hospitals. And

existing So we also have IDN renewals customers. programs with of

with pipeline continue in to America. we North grow So operators our these larger

In that, are addition significant seeing we to in growth Europe.

and geographically. that have distribution evolve and to Europe in relationships grow We are continuing expand

continue between So and growth go-to-market work integrated the and seeing believe we the this delivery strategies will geographic going that we this with the networks, forward. are expansion, scalable growth the

Swayampakula Ramakanth

on Okay. And then the expenses. operating last is question from me the

to expect containment in addition doing should In some operating you're cost Ohio margin expansion in the plant, are there and 'XX? what we programs at additional place

Scott Davis

RK. work year. of something in continually Yes. HMC had part back This saw did the this lot we saw that early that that you were that, effects the positive that we half We the first the half really accounting half. with in had of is XXXX, the that We on, work a in didn't of associated costs on of back lot that and in with the of were associated costs We XXXX acquisition. our and you in see legal a

in year. the operating But of efficiencies terms onetime So to costs, of in into again, doing can control, this in we terms all inventory going maintain costs, anticipate those we management. we utmost don't those are cost

keep well right that improvements margin direction. cost We as to on in work help going work line trend the the continue on to as

Operator

next with Ben Our from comes Alliance question Partners. Haynor Global

Benjamin Haynor

okay? me hear you Can

Scott Davis

Yes, you we hear Ben. can fine,

Benjamin Haynor

Great. Okay.

decisions a they you to be -- how that place, right kind to write see pathways color as couple more of kind on do and path What the of developing they've ones a would that the in made of On way terms prescription? decision kind What's to there's me. pricing? now Just versus Anything reimbursement think for that place in of deferred helpful. any how investors personal in picture if likely has changing docs -- see units, referral the of the for happen? those about for how the big what's do on are the CMS you made referral

Scott Davis

Yes. Okay. Understood.

November the be question. So back for submission important there That I the amount. along of been waiting And time through, backup and in commercial will fixed prescribe announced that with some this historical is In think that HCPCS this approved, X clear One, Medicare has doctors a need determination interim, was what happen so commercial code, one to documentation. changed. pricing we're payment comes frame. hasn't pricing will parts to can on what That indicator KXXXX, any documentation, is against final code.

the again, package viewed So reimbursement be recent from will request And along also the at that the be that Ekso, purchases by supporting a with years we includes CMS. could have them doctors can provide approval equipment. several that rate of we a of documentation

really interim It's is who a will be are general, that to it now, the process determination information. the putting been case-by-case in So until in those, need But accompanied has claims final set. pricing by for there. considered in commercial price

Benjamin Haynor

Okay.

you prescriptions an case-by-case it's under thoughts on impact? do as any really that has Or a there's basis? don't write so have think to potential And reluctance you --

Scott Davis

Yes.

in is So as of per program lump a reimbursement with. se. CMS this is not we're brace reluctance anticipating to general, new a Again, -- sum the begin through a through an a exoskeleton

we're on a health So there. decade process. Ekso relationships network spent the care strong out building with in has our early that's provider

will We a claim this to with best program. to we information them have a positive need they have for reimbursed. again, that opportunity very community reaction ensure speaking, the work to generally health regarding have our by they had And continue the

Benjamin Haynor

Okay. Got it.

basis fair? adopters early early of Is basically, regardless So for case-by-case part. are or whether the most adopters on it's not a that

Scott Davis

fair. is Correct. it Yes,

Benjamin Haynor

those easy after? helpful. the and of color And to you that had may -- had last SCIs. that then I Got be subpopulations That's Medicare think think are would that truly talked how sort helpful. and we mentioned patients call, the particularly Okay. there and conference you What's in in addressable deck, this your on about it. I very your thoughts thousand XXX-odd Any addressable are your be those go

Scott Davis

Sure.

a a physicality there's through candidates technology. that certain level the process screening there's to and they of think are good ensure that individuals go for I

of is its on, X%. the general in more way through this to -- term, we longer then it individuals see will I range at a infancy this as in And itself work be program rule thumb it early we we program. anticipate to look that start go as a reveal the like certainly, as think There's of through percentage the XX% maybe will -- the process, any this. around smaller will

Benjamin Haynor

by shortly more more SCI XX by than the might And personal to and XX had rather that SCIs injury their it after X% the exoskeletons XX% maybe is Okay. they've or be? Ekso of patients kind happening -- driven getting new years for of years, an whatever

Scott Davis

on It's but good really who they've care there's candidate health our actually It things have into But injuries are someone with stay to mean, to case-by-case time, a go working a technology. a is density a for number There health are spinal it. no I combination. two an a like that of of could driven have and we've And really bone long help providers, guidelines alike. who's had a used injury with lot elements individuals determine be basis. you cardiovascular the cord can done and also that is we for -- active. in provided period

Benjamin Haynor

the is And cardiovascular certain there's that number off on shot absolutely qualify? to lastly, that set at? the where, new of some of they're it. going terms there of that. x just folks occurrences density, is may just not fit top, On then a those follow-up bill Got Or percent Okay. never XX%, that right bone or health kind no a in just

Scott Davis

information any the to of sure any where is a chance safety but I'm SCI and I for is of I over doing we've candidates of that just minds this, absolutely the to minds there in the not We as guidance years that that, their of way. that received is in them that, our are first general need the there think, in not certain care it. it's whomever going and is Patient the the that make that terms Ben, providers. is foremost medical health a a not portion is technology population again, that just mean, in expert yes, Well, injure

been into degree technology have managed years, again, our a been So also for we these developed around of vets maintain to the through program. number a VA screening the developed, of and high arduous and processes that safety. has get That's this multiple quite

that our where on on ensure safety, into possible So the health we're really this putting we're most of -- people and level relying program high potentially the help but the care providers -- them. that technology maintaining could to

Operator

turn no Scott the remarks. There further to you. Davis floor for are questions at Thank time. closing I'll back this

Scott Davis

Right. Bionics Diego, XXXX highlighted and Ekso growth. everyone by for to Overall, thanks year today. Thank momentous a us was record revenue joining you,

from For helped growth leverage. orders our our that to strong revenue us enabled drive operators improve multiunit EksoHealth business, our our network go-to-market us strategy achieve more and operating

devices, that to bringing expense inventory Now we being and software we addressing exoskeleton to scale an rehab we've efficiently. to are designed enable patient GaitCoach these us innovations operations our devices. From needs added EksoNR by management our our continue are latest more to perspective, to business which and grow optimize processes,

and optimistic in our are upon all great generated was -- business XXXX outlook momentum forward Have thank momentum Looking build us for updates progress, providing generated a you forward, about as on to today. we we're as looking we we joining that up and build XXXX. day. continued the excited We're the our

Operator

conference. may you. parties All Have concludes today's disconnect. Thank good This a day.

Ekso Bionics (EKSO) 4 Mar 242023 Q4 Earnings call transcript