MOVE - Earnings call transcript Q4 2023

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Operator

Greetings, and welcome to the Movano Health Fourth Quarter 2023 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, David Barnard, with LHA Investor Relations. David. you, Thank

begin. You may

David Barnard

CFO, company Good provide speaker us afternoon, open you Paul. President Development, position. Salvi. then Cogan, followed operating recent progress and for call of again Vice Business open Michael by fourth highlights XXXX of and remarks our be of joined everyone, Movano Health, Michael and the joining the in the will the today. the Strategy, about will will Jay on Today's BXB of by prepared and and provide President for during CEO; Product Chief company's the activities, with quarter some results guest Thanks, weeks. remarks John and thank will Then made call Jay will company's Officer, John quarterly today's Marketing Bucher, Vice who Mastrototaro be Soule, Stacy John, current Q&A. financial we'll Tyla

news dealing Health release Movano this results. quarter a both and year financial afternoon issued XXXX full fourth

update Securities revisions chain I'll Mastrototaro. those conditions statements call XX-K. to Health turn contained federal and Movano herein uncertainties, the or are materially circumstances. session, actual subject statements begin, risks section Movano like John with Health's risks prepared detailed Factors Commission securities reflect make of in based by to will that company today's and expectations regards the to from during Except the to statements and forward-looking any in current filings inherent Exchange would we may required are during forward-looking with XX-Q make to obligation that, be disclaims such uncertainties forward-looking results specifically events, CEO, and otherwise different Q&A or and These company's to statements. the expectations. Risk Whether the on the over I remarks remind and With as in everyone or Before Forms these laws, elsewhere call such to

John Mastrototaro

our Good afternoon, excited a progress. speak at point, everyone. today with and critical Movano inflection Health is I'm about to you

the garnering strong views last commercially for ahead Evie expectations. factor. we technology ring our Demand of launched the November exceeded First, Evie Ring on aesthetics, form bar and the Black Friday,

to most capital meet to experienced production to some ability significantly lesser our challenges. attain by degree, hindered a constraints was demand However, operational and volume we

intake. diligently So and been addressing we ring are to paused resolution. has our pleased our order the share issues team nearing I'm

list any During organically in wait X of weeks, buyers amassed time, this X,XXX paid we without just potential have a marketing. over

This direct-to-consumer This continued as initial partner multiple valuable a DXC Tier closed look placement, leader both investment from strategic and medical business-to-business a this including journey. million pivotal to Our $XX forward We're moment on million and company's with device launch we is feedback our providing X care in thrilled multibillion-dollar global is to private future drive user health $X growth in potential toward opportunities. a incredibly afternoon, company. seed we collaborations. a

frequency million. team strategic delivering innovative of technology both we from to underscores release in vast week, interested As to fortunate of and in participation $X.X the We're Movano approach medical had the totaling have private grade consumers Directors and health data enterprises. than more broad also placement management radio Board millimeter in Ring investor the and this is proprietary and this potential our highlighted earlier press Evie our wave our keenly then the

Now multiple the along proceed scale pursue commercial with set and should regulatory deliver shareholder further up value. production new to financing, opportunities pathway that are the market we

FDA-cleared combines both consumer the a deliver device. accessibility, medical style Our of personalization and goal to wearable recognized the and with is that capabilities

Two, three, rate on oxygen expansion our pulse the Evie first clearance of stage to follows: for as monitoring, brand are which to Our And additional for this our one, fruition. proprietary to FDA couples opportunities BXB highest Med. achieve products sets and the commercial key to blood pressure establishing the technology. priorities our forging noninvasive to clinical accelerate foundation heels monitoring, blood develop glucose for trials bring our and to clearance

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our to disparate offering insights, capital including which to in of correlate personalized updates to our with an leverage improving business-to-business launched experience, minimizing AI-based Based our customers We software In to types. plan our market sleep use direct-to-consumer improve be step feedback, green on the which position several light is our opportunities. the March, Engine, and out methodical the tracking. Insight approach we've data of overall framework, LED and our first and build early made accuracy judicious the we

we preparation for production our launch, and BXB In our volume scale secure improve and FDA clearance capabilities. must

to initiatives an and building the our of order next finished also quick app, several the version execute sufficient bolstering in plan to fulfillment inventory Android We developing customer service few ensure months, capacity.

within Evie X.XX%, versus guidance held X accuracy were on a fingers error When our quarter oxygen to levels, X the we've we Evie of fingertips. strategically of X subject in blood the the and as evaluating first pathway, rate UCSF, Rings, and ring Regarding trial a FDA SpOX. achieved pulse blood on In X gas monitoring the X FDA Rings and saturation second X.X%. with commercial arterial hypoxia of used each XXXX, in referred been well often focused which root-mean-square

available failed FDA reference our also that X oximeters, of hospital-grade accuracy. exceeded the rings accuracy addition, of commercially In meet which standard for pulse one to

to XXX(k) to July continuing Health month, We work the the data this FDA prior in put plan track read taking look the the confirmatory regarding will to Later from closely forward on process. throughout we believe the to our submission. with address this steps XXXX. FDA comments outstanding review and present decision We these Movano clearance

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Evie sizable As discuss to opportunities. our feedback base of VP customer the Michael our efforts. now and Development, Soule, hand mentioned BXB earlier, to I'll call Business over user support our

Unknown Executive

John. you, Thank

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excited and FDA-cleared are wearable All the the presently potential an devices to convenient about other place these partners prospects low-cost used. of for take of

million Evie dangerous monitoring Second, more have options. comorbidities with and market poor greatly million of U.S. lives. used for an that represent solution traction one patients of by If payer reduce unreliable approximately X% this who million rings. risks to than consists that XX more health population, interventions. chronic we Already, could and/or with the of that Evie disease insurers Med costly the top easy-to-implement for covers provide just Med that detection of with the X equates XXX prevention than diseases, early insurer's payers often would have is X.X

highlight ago. channel barely This market growing monitoring or rapidly X patient is remote wanted to third The years RPM. the market existed I

automate reduce for complete in solution the today. products visits, the accurate need that over market However, COVID We expand in-office the to with access care data believe Med result RPM unlocked reduce and RPM able in more reality advantages health meaningful costs. be Evie will and can

technology a RPM wearable with platform U.S. the is the and one company organizations is care world. health in largest the leading beta exclusive companies of testing XXX in that Our device serves for over medical

for a with $XX This Other of we've $XX an pulmonary billion. billion is the corporate and include in metabolic, BXB and identified opportunity the management cardiovascular, per condition and obesity patients, opportunities year aggregate, as just market wellness of identified iceberg. which, applications TAM large tip

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John Mastrototaro

Thanks, Michael.

Evie far further with in sensing temperature Med. development We're deeply sleep and clearances research rate address to respiration product beyond FDA a for Our solution and disturbances. extends plan pursuing invested multi-analyte and additional Evie and

metrics these may may a components update while software new different potentially only form factors. require or require of others hardware Some

ultra intervention SoC, fueled efforts frequency created X to by X.X Our Through system in health years radio X a efficient monitoring measures intensive millimeter work chip these has technology. on our R&D millimeters AI compact or commitment innovation and improving we and and of monitoring just health which and in wave size.

wearable a and automated in advances clinical MAD pressure overall millimeters announced standard tracking. an chip study blood mercury October for MAD devices. where accurate, the of this required results blood breakthrough well couplets FDA an of We XXXX, enabling below yielded our difference achieved absolute pressure blood the monitoring for of of Use mean prototype monitoring, [indiscernible] in pressure mercury X.X for recognized X-millimeter

this X clear clinical medical Tier a company. for catalyst device the investment of results The were by trial

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patients believe our platform we monitoring. chronic designed treatment noninvasive single-chip diabetes, glucose including evaluated to addition, multiple our in can the in products where be with conditions, for blood being of In technology aid is implemented

to surpasses studies RF this the millimeter wave RF technology year, and readings look leveraging later with that testing ease the forward optical provide continuous traditional sensors and clinical additional Our data reliable demonstrated collection. chip. data high-fidelity We of our

over With that, financial review. the Jay the hand call I'll now for to

Jeremy Cogan

on and including a afternoon, and -- placement, by of million team million include in more Board multibillion-dollar we of global the $X management this Directors. investment company's medical private device closed than Earlier to Tier John. a investment X a $X.X million insiders million Thanks, equity $XX by $XX members company

we clinical work pre-commercial and business, technology. related judiciously Med, to BXB target forward, trials Going proprietary resources to accelerate the drive Evie now we our launch our RF DXC believe have and

a instituting to as will funds on process. now and free Importantly, now resources capital parts turnkey partner people finished goods. manufacturing inventory our materials, sheet, Health raw these production committed and balance working Movano purchase for with both which an our should partners up our

a significant expect will benefit We for this the be company.

Moving to our financial commentary.

launching of demand launch January million in XXXX. holiday is XXXX, company XXXX very in late a Ring over sales there during to the we began significant the since we $X quarter is stage company, Black product. Evie in expect generated efficient Evie In order learned that Friday ceased That and November The a our revenue recognized we've nominal a to we be of for steady to Health intake December one see commercial While which as commenced result taking Ring first constraints, all orders transition paid when capital given results, X, through of we're as revenue, report things mid-February and be of begin the said, shipments to in paused Movano a in will will we in marketing orders. new we the mid-February. period, flow as continue launch

through and March, meet customer actions December needs. capital preservation prioritized From to and service we production

health position as ahead our product, and moving receiving were care FDA Looking and service, in we initial preparation we contracts with and BXB inventory clearance manufacturing toward intention an Evie. also the improvements customer across partners. We'll regulatory work capital improved with securing with building for pathway be first relaunching along operational

quarter of of an to loss fourth the $X and loss operating million, Health $X million compared XXXX, in an year operating of the For ago Movano reported that period.

burn. sheet. quarter our placement related cash and million of other of submission million, considerations. XXXX, the fourth timing Our inclusive offset we was partially burn the private afternoon. proceeds to raised that cash In million financing equity an cash as launch costs $XX the in November, XX, in we million $X.X earlier for this earlier, in the Ring December And on noted we and equivalents our $X.X At as on $X.X closed which of had balance was FDA as expenses Evie XXXX well cash gross

formal questions. our remarks, Operator? that your to glad take As be we'd concludes

Operator

be [Operator session. conducting Instructions]. now We'll question-and-answer a

Unknown Executive

look the doesn't on like questions any It line, we phone have operator.

webcast. start the Let's with

here, that you it begin can relates a start if questions And John, And with you first there are to I question, have additional few updates first which application? this can can ask. our XXX(k) I to provide as any maybe,

John Mastrototaro

Yes.

to progress made the Ring. First the from interesting criteria. clinical trial working off, see as In important. the hospital in on Evie in one earlier experience with latest I results tremendous with work clinical The was very it remarks, the are did and mentioned accuracy FDA, our critically the exceptional, not that obviously, of actually were we've the devices my FDA meet the results

that. And we so about really feel good

collaboratively They And very and addressed of have all brought been the with discussions the numerous questions us have with we to attention. pleased working had we've addition, that that. they our we're FDA. with In have

will And but we so this are latest discussions had we have expect I new the do to mentioned, state and about upon the feel we a I good we that agency the later information to study. in clinical pretty based to the do And filing achieved agency we've that the be the in the decision July, data where as from month.

Unknown Executive

looking question and information another Evie how for wellness the Ring about Med product. Evie there's as Evie compares little a to And more here bit Okay. about that webcast in what Med a

John Mastrototaro

there as differences. the between some we you for When in it, is there the essentially labeling So device FDA But that a have already. same launched medical the differences aspects the detail. X. Evie device are Med the reviews device wellness And Evie hardware obviously, the are of some medical

of And just of experience. from the that oximeter part wellness separated beyond agency discussions metric then a pulse the we've would what with based had as the is app the medical out as well. like the We've metrics some secondly, And labeling, that's provide experience the upon app different.

So and to And about about moment and the in agency. feel talk move thinking and about of do about forward certainly, you have good a pretty related feedback to whatnot. from this though we spend Jay, that bit Naturally, a more some could the we're that. look maybe we more talking as the we things forward future. pricing little

Jeremy Cogan

a recurring be be to space, on would given we Ring, Evie And that Evie the opportunities sale. it's device, the that, expect premium of a Evie to stream an would product to relative database revenue, say, will top with the of Ring. I FDA-cleared for we variety Sure. example, across have it Med revenue sold at a BXB see a whereas

in And forward talking future so as the more look about that we to well.

Unknown Executive

Okay.

related here. question. go John take this next Michael, is you or Let's to update or maybe an the can strategic The question partner. existing to on strategics

partners a with this talk can potential you at stand where If little things stage. about bit

Michael Leabman

Sure. you, Yes. Thank John.

So that's great question. a

RPM channel. one X this the in month, partners, large had strategic we've Just

in beta The their the other up tests. payer channel, wrapping

year to the all channels to set medical ranging looking engage are they much FDA first July our pharma. in And coming of to last our up from device forward from in continue time partners beta We clearance frame. very

to most in And off from medical pharma tranche our coming have strategic pressure us clinical everything cuffless channels new of John? work then to to blood our wanting study a between. announcement with partners whole ranging results, in of recently large we device

John Mastrototaro

fine. that's No,

to Go ahead, move should on question. we think I the Jay. next

Jeremy Cogan

has with is tell users Can the customer Stacy. you user the are Tyla this broader bring us their how response app and Maybe you thus to Great. engaging experience. for What about been far?

Tyla Bucher

kick can us of. I Yes,

of early setbacks, which well has we initial a service adopters, invaluable challenges of was implementing been fulfilling customer our across experience have very faced best-in-class the board. and frustrating from user a are received all our we customers which provide mentioned, operational obviously this goal, planning. goal us committed But go-forward amount and and our our these already a John to for feedback still support frustrating launch, as we for despite and as number in tremendous out So to we're always of

review is updates John us paid with traffic brand. all. does to and marketing noted, media as Evie X,XXX very signed positively, over up the since paused we And for awareness we the for continue no site the which have Additionally, people at driving

So influencer taking our orders mean media I our once efforts, program up with planned start on this, coupled channel our upcoming to will launch we're and set new ready success social us again. a for

ongoing and the that time, that will existing features And new expand build up, product and for our will with customer and opening back we're Stacy. include our insights. our resourced I turn actually, focus store our be now response members service out shore engagement to to to our delivery addition over up strategy to offering In that,

Stacy Salvi

Tyla. Thanks,

engaged to ring a expected. our and really pleased strategic we're from and product with users as app the So perspective, see the highly using app

users we're feature focused experience the activity rolling the and really out and delivering course, this which feature, contextualizes sleep Of in Insights to first. high-quality also on speak deserve we experience the We're coming attention improving important the paid from and months. the personalizes develop data to with our ring the as excited

Jeremy Cogan

about ask no Seeing maybe, that still on taking Tyla, questions shipping And rings webcast when or before again. going a new Q&A. lines. see What more do phone forward? there's need to there I'm here either are going a to John start orders to start the from few the we're Evie few we questions we going questions

John Mastrototaro

Yes.

to and can we we're vendors taking on orders going the on in. well ongoing with as anything forward a all ring like fulfill need want inventory an that off, We materials, ensure increased working overall improvements. delivery raw move we able on ordering optimizing working establish the to maintain We're and to materials funding, as come demand. focused you'd Tyla, to to immediately currently order month we components to by orders to But times continue until skew our satisfy add? at and almost able the or new with to be X hold we're processes be they First of our to have about when do you times. new production

Tyla Bucher

it's think I good. No,

we're continuing focused sure be the service key have. of people with is on it do driving that a customer that best-in-class engagement that going in is the experience And when goal we're this the think consumers making on the we order interim, ring. to do I focus really heavily to

So then we up, mouth. word opened solid when there's really of

Jeremy Cogan

got pressure blood We've here the Okay. and glucose few about a initiatives. pressure prototypes and blood for

So pressure there results blood be more for it could to the John from what been how us And made long you pressure you. make really bit clinical we've will it a blood the a before fall, about market? Can tell trial what that mean? the do this little to potentially referring last product

John Mastrototaro

Yes.

really was that use that resolution blood to thing fully demonstrate in critical one functional could pressure and values. to about provide concert we determine blood that work GLOBAL the signals chip able the with pressure was foundries off, First was higher we we that that working on produced

and one of by you request like And device dollar were in over blood or the suffer and from so is that such the have problem. of was pre-hypertensive cause guidelines And accuracy people commensurate disease X could that could to half hypertension things. what pressure for be multibillion was formed It's it's a important the that a we up, because real the home. -- of heart key analyte Blood really FDA gain this you age at was Tier fact really other a that first if of us. XX pressure the an a for company with leading basis it investment And product probably the this and to measuring stroke medical continuously is the able study us. huge

it's the of daddy So grand them all. big

in we're to feasibility of market, Glucose this making with critical. is well. system. how long completed terms we prototype that trial just a bit But the course, And behind as that. of is there then a And progress

studies. to board We components next in already enhancements it on the of some layout for the optimize made a have round the of

the throughout a the of consumer in year, we'll be conducting clinical more this evaluating so And factor. We'll be course more like product type work. form

we the the looking continue initial we forward, done on of finger, monitor the may do our experimental pressure have versus work to all blood at on and to but so, studies finger. wrist we do our will Moving some ability

of continue at only overall look course we the the develop will clinical tracking like. through time, to but consumer-oriented not would of evidence, look And as what well pressure. form blood as to longitudinal this factor continue generate

resources in because one updating put more time the that allow have So to behind initiatives of it us now really forward company. pressure that for over top more we to these is our look efforts you blood we the

Jeremy Cogan

but to glucose in it expect there's here And a mentioned don't John, we form factor. and if a the regarding question band some comments also pressure other another I be think you wondering first those in regarding monitoring and there, product would possibly or blood or ring

John Mastrototaro

finger. We whether things waveform the wrist look could be know radial able One that's enough finger, going source. to we of evaluated pressure know fit for using this we at to used the at inside have we RF that We small focus to basically really clean, We assess but wave arterial pressure we not of have but it on or anywhere, coming get not a do forms on we the wrist do the site. for nice to chip point. But that. is artery We're at the from pulse measurements. that ring not be an that have very energy that to evaluated blood the the could a the want

at aware the you're And CGMs something based the on the looking looking little we're on for to As lot of fluid. Quite glucose. signals -- interstitial my I signature and they're more inner the glucose, in for a existing career, worked RF open. if done a it at relates changes of really, it's bit interstitial frankly, in

use other measurement. sites the at looking monitoring, glucose So we of could for we also making are whether

glucose there's blood for I there than is pressure. more flexibility think with

Jeremy Cogan

Health when Health And there's future. a Apple question Stacy on Apple planning or the connecting maybe Great. is about Tyla, to in Evie and

Stacy Salvi

is this users, take the much of course. likely also certainly can our our users know for the of This near top I one. Apple question. list. products Thank We so you are

we attention, is of date, to focus landscape want And are on one can our certainly give short as out I and at. this so an the list. kind of something there looking we we but consider opportunity the say that. can't exact where that I

John Mastrototaro

think this Great. that And for be would incredibly actually capital first is, closed raise the today can will the question say earlier $XX want one that last of I look, pleased I you cash we just the the answer. And How what million long will we last. afternoon. we're to raised results with

As Board management we've medical and global And we the from institutional strong significant demand including of from $X multibillion a a new clearly Tier investment device by the saw seed also participation existing company. team insiders strategic mentioned, shareholders million and Directors. of we members got and X very investors had

provide and able as with that blood can our glucose noninvasive be clinical the capital also including studies to regulatory commercial major ability the clearance, monitoring us FDA to The the is to and help work around we've pressure going begin been along pathway to us production. discussing initiatives, proceed accelerate scale our to

to you. ready we I today's operator, Okay. With that, call. Thank are think end

Operator

This today's conference. concludes

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

Movano (MOVE) 4 Apr 242023 Q4 Earnings call transcript