RWLK - Earnings call transcript Q2 2021

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Operator

Good day, and thank you for standing by. Welcome to the Q2 2021 ReWalk Robotics Limited Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your host to Mr. Ori Gon. Please go ahead, sir.

Ori Gon

Patricia. you, Thank welcome Call. and Robotics quarter second Good to EARNINGS XXXX morning, ReWalk This Officer, Executive Chief on ReWalk's is Gon, Ori Financial is Jasinski, today's Larry and our Chief Officer. call me with issued a and X ended This morning, months the press detailing for X financial XXXX. XX, release June the results company of This section website ReWalk of webcast can accessed this release press a through be the at call and the Relations www.rewalk.com. Investor

in call performance and statements. or update except and shortly Act. uncertainties, differ the intent as would statements, with forward-looking SEC. I completion defined Such filings available including These involve made we risks press to express future management performance. forward-looking information by everyone Reform that are expectation, law. forward-looking started, will call. statements those ReWalk's obligation results Rewalk's not statements forecast, future regarding noted required this call release projected Litigation specifically conference Before ReWalk any on and and based or in on Securities today's the be projection, remind may like that forward-looking from belief, available considered the of a those Actual intent of today by are the the of these statements get to telephone this statements as morning's guarantees disclaims materially A after to be Private replay as anticipation forward-looking future of company's events any may

information the website. archived will on webcast find company's the The dial-in be You today's in release. press will available

recent announcements to discussed, August Larry? ReWalk's releases that, XXXX. archived CEO, and the webcast, filings. have with I'll may listening be and Since most Jasinski. turn For or then, SEC so over press the this replay recorded who ReWalk the Larry call held benefit may those reference company's topics to related the of call And the please XX, was on to made

Larry Jasinski

business a had direction met the morning, We about everyone. right key Ori. objectives. the you, very are ReWalk see year. our our and the good Thank Good and grow optimistic QX to for trends

accounts We have seen of the normal levels of majority activity. returning to our

As in training we months XX of XX VA, able now single trial in after QX or measurable without being to schedule the user the and have a in a example, QX. scheduled process being

with We growth represents of trainings patient of account which activity and in have and VA a sales database supports second potential QX half that in from quarter consecutive half work XXXX. will and candidates present The second fourth pandemic. we XXXX. the $X.XXX XX continuing of were growth the recovery XXXX million, our of the

Our is sales at margin resulted gross and a XX.X% in of year-to-date. QX XX.X% mix

milestones increase expenses long-term identifying by we and will key increased $XXX,XXX the success. the with to that as activity $X.XXX the growth started year We reopening. Our our drive market million

significant German positive system published September. with in remain most courts. one, are to impact access measurements expanding will compensation We with goals ruling progressed the following The social which products broaden use. The direct The would for We to are important the outlined via serves our define pleased access supporting broad would would whether ReWalk were: and ruling base being four the progress the have final the exoskeletons. that disability as be elements the completed for to policies session. that weeks expect has a their ruling in and the occurring a coverage each court to we of and federal our they providing meeting

Measuring indicator. insurer of coverage German Second, is expansion. contracts with German important expansion insurers an

BKK with have which groups court last contract five X live Germans progress have has contracts further million was additional case covers date we the be had XX a made all of but workers. for with We contract this significant million essentially related quarter, also added Overall, in to we DGUV covered have have injuries, the to German strategy. expected to the with a limited join which our until work as completed, total real the reimbursement German [ph]

with Third, establishing CMS. processes

building the in our issued progress pricing, Our and focus category is XXXX. successful code HCPCS primary around CMS by contracts exoskeletons for in

establishing We education are process the finding detailed established, Germany and once to code it where we the is similar we have of requires planning. contracts

We how initial application and fourth, national continuing of our broader supply, our for and for the resources from users CMS account the process activities for on have gained in are other in to And contracting have activity selecting building for ongoing supply stroke then proceed the lines. process. guidance product

for implementation now the with of the year, completed in lead have sites NHS two delayed for United U.K. and States, national trial has COVID underway chains the for the in have we While training much evaluations three

of this review their As details. the over flow experience will for Ori? expansion to a clinical we and data to the the patient for seek the turn exosuit for build soft contracts I'd financial whole now unique call a expands, Ori like of basis design the for on establishing national as to community. with

Ori Gon

million this due booked of second of the Personal compared Larry. was decrease quarter. the quarter in in lower revenue Thanks, ReWalk The units XXXX, quarter a total to XXXX. in of Europe to X.X mainly sold $X.X of second $X.X in million number

we is in June the higher revenues, from period This the revenues in increase and mainly of have U.S For to Myolyn year, XX, in year-over-year growth. XXXX, previous million XX% X the sales. represents total a X.X, which $X.X $X.X recorded Personal ended due to compared months million ReStore

units which this had we This to product highest for date $XXX,XXX, quarter over line. for for Myolyn our marked quarter example, X sold

our purchase this place of previously decisions total a rental progress, new at for during devices. or had we eight a quarter, insurance rented to new insurance and look of we conversions As a five device direct

and XX in consist Our current cases and XX, of XX Germany cases rentals U.S. at total a $X.X in million, insurance pipeline our representing XX currently of of active the overall is which

and gross margin. XX% to sales XX% compared costs well XXXX, prior the Turning changes in to revenue quarter as mix, the In was year the margin our mainly reduced due service. the is The gross decrease related into higher in the quarter. our of second as our to

$X.X Regarding $X.X second prior million our This the increase increase employee million loss for the expenses. due mainly to To XXXX $X.X the $X.X this sales we net net and compared quarter. in of elements a was to The our our loss this quarter. reduction lower is also to quarter quarterly of in back field, expenses higher we compared operating employee in was quarter and of second cost the million had quarter due are offset R&D expenses, to related year and results, second that is OpEx year now during prior mainly lower quarter marketing the recap XXXX. in that million the XXXX

Our $X.X non-GAAP $XX.X to net quarter We million like XXXX. remarks. for of in to million turn back loss final for million the with I'd compared the quarter Larry? some Larry call second to the ended that, cash. quarter second XXXX was in of $X.X the With

Larry Jasinski

Thank you, XXXX. session the Ori. the half I'd like on to focus second with continue of a

several upon CMS coverage growth there are importantly, anticipation economics results in are and less progress first, With strong Very they drive activities, the ReWalk visible the the HEMA and build several [ph]. systems bolts our business ReWalk referral and building several ones landscape. also a are There of that and activities health account our to include: access market ReWalk highly qualified as the business major physician are users. nuts visible XXXX in will second half of The German which the for court and or with network which systems efforts national prescribe highly milestones meaningful case, and to expanding have position. that efforts establishing high-level provision heavily support beyond. other activities visible coverage, investment We rely within and will processes

of through various built In a randomized from We large developing base private both and of the on we publications We access database an the scale and clinical contracts parallel, the with ReWalk a extensive in large the HEMA establishing trials. use. with of with studies our executive team two base markets. economic expansion physician have public are extensive and biopharma history gaining through data started

prescribing systems for the who of wide ReWalk selection processing those system. education, for for reliant success all and enable the Our the tools of for and scale data, qualify supply with community and

what You see then will have accomplished in to Germany. a we expansion in the similar manner of U.S contracts

that Second, with coverage organization. to marketplace. field team smaller be maintenance groups, keep nuts our place We in effectively bolts build unexpected for just and before U.S of in team capitalizing the of the post-COVID to and prepared and success well and to elected our our COVID started expanded building

and is for a we expanded, been materials, very Our plans educational this implementation of trained growth established period ahead contacts team well local our database our shifted customer to has have level. at content-driven new

invest prepare in as we position. our to product for parallel, in Third, line core have coverage a continued wider we

that features users. users new in our the of to upgrade development available will be will offer package use design able also we a existing and Our to will new be breadth improve an of

three XXXX clinical robotics, acronym regulatory documents building XXXX. data in of store neuro for presently [indiscernible] pre, categories July investigated. in that data difference, is the MCID, peer a threshold process the soft in Fourth, for are frontiers better In walking This published of anticipate changes in We papers of published. outcome that exceeded in the and several important on and exosuits. stands first a all The the launch on meaningfulness. review post use minimal in was demonstrated clinical which the

second walking X-minute improved increase are second and increases propulsion the of meters. per These meters improvements outcomes both then substantial XX speed, clinical for First by test, point which for strategies. had which three training achieved each. And showed speed, comfortable an third, paretic of of walk maximum walking

post in power improvements limb trailing pre, and paretic Specifically, peak significant observed propulsion, angle. were propulsive

very resources time the questions for contracts, this a finally market, today. the to work summary, eliminated controlled realizable our call Operator have have our pattern turn to instructions. like and place. in implement position, to growing establishing to of in you allow progress with done expenses over a a mix we in I team a growth, go expand coming of if at Thank to of coverage, forward could the please to stage. the this your the market We built debt, you have we I'd look So, reporting required are can and interest the much ahead cash $XX.X position quarters. plan have and have a coverage to million. the pathways fundamental

Operator

from Instructions] comes of the Your H.C. line question Ramakanth from Wainwright. [Operator Swayampakula first

Your line is open.

Swayampakula Ramakanth

and Good you. Larry morning, Thank Ori.

a of publishing you So think growth successful in process I court event? and by it the in from their as if meaningful 'XX stated, German completing you of findings revenue about think also 'XX? -- 'XX the thinking be process, is it in mid-October, more the Or terms their courts German are would would

Larry Jasinski

in our it could clarify I number as a to think, bit but we not There control. timing anticipate be just want impact cases. it it a will based We of social mid-October. would could on in is little actually some bit sooner, first, that court the issue immediate which little be probably It later, be history a they significant be have past that.

allow value may of to that in be this but will few 'XX. the majority a So to probably convert, the -- in

So because we'd with to holidays in patients have the we get December. by convert October, early those

So may bit. a affect little timing the that

is there potential a 'XX. 'XX lot some So in potential of in

Swayampakula Ramakanth

process But As an need an come when additional how then on, idea the it court sign. things kind is see all you joining to as you units probably, progressing, get they're the case what them? keep many even seeing is can are of the five signing to to will And so the a very to increase ready, you partners it's contract as the perfect. in fruition? good backlog, encouraging Okay, for BKK actually do

Larry Jasinski

to The see. BKK are additions encouraging

the As but into a anticipate will will get to common X the then additional month about cycle, I and get and they them. in them said, time the fully is that process what bringing trained system by to is in patients some we we trial which didn't product them, do go on

of number now. will Ori, impact early that year, five, you do The right in number, for their might me. of late specific So in front not for next I those patients have cannot but identify I this be those.

Ori Gon

Yes. Yes, the number. I have

a have within cases BKK different we six So currently the groups. of total

Swayampakula Ramakanth

the you. last back Thank get question And before me, I line. the into from

international in evaluations also and the to NHS, progressing that trial trial what's generation? process there the and revenue is on from how chains So so through

Larry Jasinski

it similar baseline not and and occurred is ago -- for evaluation with -- national to move to a in a Well, the as and we much put to early And reopened, a there X It deciding actual process data two some all we Simply, elected in so of COVID. each And that done have chains. accounts. what with whether That months into with training, we’ve weren't the a larger we've the between or chains it of time. now quite by the went selected trial what demonstrated NHS. they product, ago. quite centers product time these number stage the were centers within booked committees some provided by doing are as each for evaluations is or NHS the moved the was and groups is using completed the the done and

kind And process that the in we're of right of so middle now.

determination more fits But a consistent the how of had product, the it are used NHS at the that chains. specific we’ve with what situation by a will phase sites. other to and Our and the clinical that it U.S their move is feel expectation that is have results each really that at they places contracting at

I we're the But number a we patients the units, to would specific timing try a with still it's coming Will but be as the have been slower large sales? to not would of in few U.K., maybe that I a been hope So better don't valuation for would we still impact to not that, think is a in quickly contract. year a with switch going U.S. COVID the it Significantly, number. from it timeline before this when in year-end.

not answer exact of entirely long a the timing. it's sorry, we're So because sure

Swayampakula Ramakanth

Thanks for my all questions. you. taking Thank

Ori Gon

Thanks.

Operator

further this time. back turn for at Jasinski further no Mr. it comments. would showing questions I am Larry I to Instructions] like [Operator to

Larry Jasinski

Thank Patricia. you,

the quarters. based If these with the enjoyable some on it's us be to As we quarter. I made call, continue, trends coming progress I And see look reporting these close the much very months. the for statement coming I this in in calls really that forward this will the

our stay please So to tuned Thank everybody you. have a and publications, wonderful day.

Operator

for today's joining. Thank calls. you all concludes conference this And

You may now disconnect.

Larry Jasinski

Thank you, Patricia.

Ori Gon

Thanks.

ReWalk Robotics (LFWD) 9 Aug 212021 Q2 Earnings call transcript