MOVE - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to the Movano Health Q1 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Cogan. Thank you.

You may begin.

Jeremy Cogan

Thanks, operator. thank joining and today. everyone, afternoon, you us for Good first today's Mastrototaro prepared company Movano in the John open weeks. has of call recent during the Health's CEO, progress will with XXXX the remarks made quarter about company's will and operating current I results quarterly of position. provide highlights then the financial and I President Development, Officer, Stacy we'll our Tyler Strategy, Then and Vice up of Michael by joined President call the be open Business Soule; Bucher, Vice and our Product Q&A. John of for will Chief Salvi. Marketing Movano release quarter Health afternoon XXXX this financial a issued news detailing results. first

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

John Mastrototaro

everyone. afternoon, Good

dollar very included seed million device April our over company. just X, reported private the news $XX multibillion on of are medical investment Tier ago aware, placement, excited we a share earnings you XXXX As X a strategic which to QX where from a we were recent month our

so are approach committed customers. business-to-business in we out and we be a solid foundation all Evie market to to direct-to-consumer our and Med our BXC can to our judicious capital Ring While methodical BXB successfully opportunities, for plan both we Evie serve businesses build with spend establishing our and our

our pulse As against BXC Med and threefold: preparation under blood risk its two, the XXX(k) for oximeter to a our to three, take such, to on prepare Evie RF to in feature mmWave prototype priorities additional chip secure Evie clearance brand; worn the and with pressure refine orders are FDA for glucose Ring; system one, studies. the

an laser to a timeline orders ensure an take As to which response the Evie a the experience, the for we we again that software. to provide are delivery excellent orders all and are to any product improve seamless deliver improved focused diligently we standpoint, first across for preparing both working hardware priority, From and experience customer Ring, customer service on product requires issue.

chemical, with version We motion developing improved suite employ in more rate to are are heart hardware resistance. In [indiscernible] physical Android the an process environmental and algorithms AI-driven are a develop the more and software, cementing our initiating insights of and of app. comprehensive we robust improving sleep

to are we our and we side, processes relaunch. and automation, production for yield On enhancing as tooling and prepare the test increase assembly throughput

key We solution, increase to in turnkey which partner with are would efficiencies. a production conversations implement our also further our

whether over new users these site the All space. in service us service customer customer our We customer have as experience, with on BXB or DXC implemented well chatbot customer bolstered will XX ensure as head our capacity an experience channels. of reach years' through have an a AI-powered response enhanced and efforts onboarded DXC

to trial clinical last trial we of the is QX that the the FDA XXXX, name the the a closely we week significant XX, medical announced exemplary XXX(k) brand version Regarding clearance organization. for submitted Evie our FDA second successfully in working device milestone under from will of April priority, we our the which with We on Ring, Med. on Hypoxia launch results are which a anticipation

When During gas X root of the Rings the versus trial, fingertips. and each square the arterial accuracy subject well FDA mean wore X Med evaluating levels, of Evie on X X Evie Med blood achieved within X.XX%, on held rings, a X.X%. error guidance fingers

In addition, of Difficulty]. hospital-grade commercially that factors our [indiscernible], exceeded X range of one reference [Technical available the which

on yielded aggregate, our X year per our expect on opportunistic we've $XX preparation all in partners solution FDA expressed see XXXX. focus a FDA we are the which for July device our We system our patients, regarding These technology identified continue initiatives. We engaged as obesity monitoring, for we secure as enabling pressure challenge automated our medical-grade bullish blood x opportunities obtaining In decision, of part breakthrough a an metabolic, we billion just see integral cuffless our of in And will market the we finally, their unlock believe that and continuous continue medical organization. applications advances a pharmaceutical, breakthrough as we chip, and on millimeters distinction, to a the and and compact XXX(k) X.X in get the positive to already enterprise pulmonary decision clearance future payer in strategic accurate, remain monitoring and channels. data of health efficient chronic they in immediate this tracking. securing measures in to have and with closer cardiovascular, which, partners ultra and has face opportunity. And management

of wearable, difference blood previously cuffless, of recognized mercury pressure blood an recall, a where for standard or an X we October pressure FDA in the X.X devices. mercury you'll of XXXX, measuring As our required clinical millimeters for MAD mean millimeter achieved results study product type below MAD the announced overall absolute

blood continuous making an number have enhancements of which cuff, the place we blood this study only study data that first study. and we've in value, a been will be line, an evaluated which will Unlike one expect provide We prototype pressure this to June to next a precursor and FDA provides to that our arterial pressure done study, take an with on will patients. line is the pivotal arterial be

future the to calibration Ultimately, enhancing monitoring adults With half in individual we financial now of age call the the I'll U.S. be these are Evie as to to in performance suite offer over In over holds also analytes review. will pressure XX the conditions. monitoring or management pre-hypertensive, platform. addition Continuous enhance for efforts promise pressure are dramatically further blood of the AI-based currently the we a that, of hand blood over Jay hypertension. expect significant of have the our addition, evaluating of the we

Jeremy Cogan

revenue versus Rings million of operating the period. We reporting ago $XXX,XXX as in first Evie are the an January quarter time million the the revenue quarter we Ring of revenue and this company XXXX Ring tied loss in in Thanks, an $X.X John. timing Evie in period. We $X.X first the shipped reported during launched of of the year in X,XXX The and reported of first loss commenced in the of shipments, for period, XXXX to Friday Black holiday is year. XXXX which operating

preservation to operating March recall limited halted given and were actions inefficiencies XXXX, XXXX. of given December marketing XXXX February initial launch, capital some of as small and through year, early this orders temporarily learnings taking meet prioritized paid You'll we the service see customer production on. and From we there capital in and needs. Not December of X, that constraints, surprisingly,

of forward, generated results example, excitement and Rings. deal with top For were Delays timelines number of our impacted orders launch launch. intend our earlier, avoid to that anxious as issue that experienced a going line generated bottom receive ample We by consumers great to noted inventory cancellations taking a and this prior we again. to ensuring their delivery John of initial

Evie and service for important across both of that should an products, FDA clearance strides and operational in Med upon decision. direct-to-consumer BXB expanded the manufacturing and already Evie are an customer well position additional We launch making eventual Ring launch improvements in us of

Following our private multibillion-dollar our from the gross a we strategic X DXC clinical the placement and where April, including BXB resources a to proprietary company, trials RF we business, seed to proceeds, million Med, Tier device our have related Evie raised medical technology. drive investment judiciously company accelerate in launch successful $XX in target believe

balance noted turnkey both financial with working solution, Health. A our funds few capital a partner our up free for before, people and other are should highlights. and about we which in with production these conversations Importantly, now Movano on as sheet, resources

as that had we had placement, March XX, at on and equivalents cash forma Our cash private at $X.X early for cash equivalents and our $XX.X $X.X costs burn XXXX was considerations. other of Evie the expenses well the related first in and inclusive was the balance FDA million million quarter timing Whereas of cash quarter-to-quarter April as pro sheet million, time. submission we of for launch to our ring cash which of

John Now I'll final back remarks. it turn for to over

John Mastrototaro

significant launch as by past marked our This DXC Thanks, for the well significant progress valuable Jay. a in milestones. been as company, one quarter our lessons organizational has from both

We the clinical to of continued and on next forward blood phase to our and advancing a momentum successful studies. all reignition, are positive DXC look XXX(k) encouraged expected fronts clearance our pressure around

positive act keeping make and of forward success that the balance through we confident are We year, the look to a developments this headway. you combination continue as to we will updated of as for catalyst

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

Operator

[Operator Instructions]

Jeremy Cogan

so looks the have -- phone Operator, well, questions a waiting to them we while looks for the team. we're webcast, ahead directing questions few the asking I begin can at and go those from like on Okay. least it It any lines. like and

XXX(k) should the John, updates in I to the as be you for provide process it today? The you Could this beyond what relates first any mentioned think call one, you.

John Mastrototaro

Yes, Sure, for Jay. thanks the question.

only for recently for had study in mentioned during each on which really locations the results they the but clinical accurate The I As the different where were results, study. new more not X Rings FDA hospital-grade exceeded X devices that FDA results worn than the subject, with Rings refiled X and with HYPOXIA provided we control far some exceeded expectations. used call, the our were benchmarks, another we pleased we FDA-approved

very some going think have And putting pretty thus the I new reviewer. And in well. data back-and-forth with communication had so bode things us. We've well actually our for since are results far, those already

we're agency So continue market. the path along to the cleared getting closely for going with work ideally to this product of

Jeremy Cogan

partners? the can you detail Evie can Med with Soule some question, on next I BXB which the is, think answer for of provide Michael your plans launch more

Michael Soule

Jay, a Sure. that's good Yes, question.

all to the continue to medical device in of our ranging who July to Beta are looking from FDA and partners pharma, our with we engage channels So clearance timeframe. forward

clearance hit building to across back-end and we're [indiscernible] And for partnerships of the the of strategic with medical expect currently device. new We group to another monitoring. announcement so have unlocks results, we can initiatives recent our data large us remote a blood off the pharma these running. Coming patient work that ranging cuffless in host of channels we wanting clinical clinical required systems trials study ground from pressure partners

Jeremy Cogan

pressure. blood of guess, John, I comment Speaking Leabman, you've the blood on be you with This could for next progress pressure? seen want Michael question, to do or

Michael Leabman

Sure, I could Yes. take.

I it on our and is And which June, there's closer and references One, the take product So earlier, algorithm, our study. to big to would we X next as in we pivotal step, think improve into said, John arterial the John doing pivotal our really studies. if test big we get actually. similar for pressure trying steps FDA blood to as as be line test mentioned make more a

to trying really informed facilitate So and ready blood fast pressure. really just tracking to get everything

Jeremy Cogan

relate questions you this together want to Evie of the couple do shipping to I'll next of throw all take John, Okay. because the they question, Rings. a

and when also our Evie, Some start from about including related far some questions Rings about to shipping [indiscernible]? features we then are Evie questions we'll how

John Mastrototaro

question I've Thanks. seen this Yes, Jay. bit. is quite coming a Sure, up

in bit we and what of went the had pretty Jay a we were to mentioned last little prepared us through into remarks, early year, challenging situation hamstrung of which do. able as capital year So this the at a end kind on

the we learn and getting we Ring there where for launching the However, it really opportunity in when could us. did provided marketplace out great a

overall the already making on Ring well improvements we've to customer production we optimizing been course, and new service. and, are as that of working delivery we enhancements that focused times on the our our as so processes And have funding, now

satisfy We orders new are And can to we've increased ongoing we of to really this about manufacturing expect hold at moving SKU we need in under set we Ring vendors but earlier these we by all forward. orders. all all establish do X to on currently that confident new when fulfill in that the to an going than our ship demand to we're raw inventory order huge announce confident we've we're will working then months no until up ensured start to maintain times. Once that with a we feel initiatives urgency taking that and materials X ability date, are our we

is inventory turn to us built important having organization. so up this maintained we before again And on an very spicate and as

Jeremy Cogan

Great. And John, you. another have for I one

asking update other any was Someone and partnerships? strategic on there's investor if the potential

John Mastrototaro

proprietary Sure. it's to with their has the actually as where old fund support metrics as that, relationship. blood which in they and/or trends relates customers areas experience to course, interest team. a collaborative RF investor, current in we and than they to we've than market the could millimeter-Wave moving actually are multiple been very a expertise with that had and And for Well, some did further doing what been monitoring. to brand that our little And meetings us, some mentioned, They've forward. And some embodiment us we're us I've our lastly, glucose, continued have really of be big a very pressure I that already, with offered strategic Ring doing in its more future where the beneficial potentially which valuable the as couple since be technology we where the they're of daddies going. it discussed see of relates and there's work That's the of month it more current a X only could raise. holds, opportunities

there lot a So excitement of well. as

our we've complete them plan since for next our our and and positive, it's alignment. with well them rest but this are been we're into and yes, theirs, in engagement as and think, nothing from both what of gotten year strategic shared started, our this the on as I focus, feedback some going side plans So about and

Jeremy Cogan

wrist a then will be commercial we And Med, device here. And a ones a ring. first then band Evie device see couple that being the or Great. of -- Blood for quick men? for pressure, also do

John Mastrototaro

second part that, part. I'll and why of the do Michael, don't you the do first

Michael Leabman

Sure.

So I John X mean is mentioned, our millimeters. X chip, by as

have So does Ring it as the to into go eventually ability well.

all great to studies, go-around, quick we given that the as I data first our get this we of think we that through clinical in want far in make our did FDA into for sure looking possible the we'll previous as we And the bit with as at putting testing what we've already years. last Ring once I little further X.X that well. take start been a think then along, it so

John Mastrototaro

I a men are heart SpOX, different sensors very And importantly, then well as optical that entire SpOX. couple rate, that we run as skin can When women. of the you it our relates both done people because things to they're trials very Evie important. tell We looked Med, clinical as for at and for and for tones with was population example,

of we've on space, are in solutions. them was not that that that Soule it's really, some so discussions the potential had had and with discussions we've female-focused mean all. limited the only And can to Michael perhaps elaborate And healthcare women, I in but for partners the this, developing

Michael certainly And both use add. Evie looking certainly, would know have device this men will that to the you comes a but by men from today. and by we this on and using many worn it ring as men And prohibits Rings both them, but are And number either in to men albeit Soule, today anything market, than for smaller much of obviously, apply the women. don't field being men some ring nothing others at the you'd to out men, is women. the the if and women medical or call much, like are used women. And on So I

Michael Soule

covered you it well. John, No,

world, areas areas, our doing this in they and folks, we're dealing strategy beta that great think we're strategics really large of see I device. device clinical what a medical unisex see all partners, that the in direct-to-consumer and it's trial a as while the Just the with, the

I just add want to that. So

Jeremy Cogan

any like on then our it And we Okay. lines. the question have for doesn't like look it And looks webcast. the phone last

will today. be call this this question last for So our

million sold take I'll of rings the one by $X You way. this --

a netted of $XXX,XXX launch, elaborate quarter. days You difference? sold first on the your Can of after XX $X rings but full million Sure. the in you

had fulfilling the demand orders. did very But committed on delays of frustration series possible. and call, a mentioned retired of a quickly their we are consumers, grew they launch, manufacturing we all side, we as waiting As on and at subsequently to orders the lot have canceled unexpected the as which some caused we for and of

plenty an be when learning us taking that orders controls so We've So and excellent was as since our within was and we future, in to modified for deliver all sizes business that to begin have X it will processes disappointing, our the of we again and X days. colors organization. able inventory inventory

looks turn of Okay, operator, Q&A, back it to will you. I like that the end the

Operator

would have closing you Do to you. remarks Thank say? like any you

Jeremy Cogan

for our appreciate on reminding call news the We ir.movano.com. today. And you'd like website Health please at to you tuned for Thanks events, Yes. and stay follow to if me Movano continue just to one. all be

Operator

Thank this Ladies that and gentlemen, conference. concludes for joining you us.

now may your disconnect lines. You

Movano (MOVE) 15 May 242024 Q1 Earnings call transcript