Yahoo Finance Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q1 2024 Earnings Call Transcript
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q1 2024 Earnings Call Transcript April 29, 2024
Ekso Bionics Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings, and welcome to the Ekso Bionics' First Quarter 2024 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce, Matt Steinberg with Finn Partners. Thank you. You may begin.
Matt Steinberg: Thank you, operator, and thank you all for participating in today's call. Joining me from Ekso Bionics are Scott Davis, Chief Executive Officer; Jerome Wong, Chief Financial Officer; and Jason Jones, Chief Operating Officer. Earlier today, Ekso Bionics released financial results for the quarter ended March 31, 2024. A copy of the press release is available on the company's website. Before we begin, I would like to remind you that, management will make statements during this call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements made during this call that are not statements of historical facts should be deemed to be forward-looking statements.
All forward-looking statements, including statements regarding our business strategy, future financial or operational expectations, or expectations of the regulatory landscape governing our products and operations are based upon management's current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with Ekso's businesses, please see our filings with the Securities and Exchange Commission. Ekso disclaims any obligation, except as required by law, to update or revise any financial or operational projections, its regulatory outlook, or other forward-looking statements, whether because of new information, future events, or otherwise.
Any forward-looking statements made on this call speak only as of the date of this call. I will now turn the call over to Ekso Bionics' Chief Executive Officer, Scott Davis.
Scott Davis: Thank you, Matt. We closed out the first quarter and started the second quarter of 2024 with positive momentum, as we're pleased to receive final payment determination for Medicare reimbursement of our Ekso Indego Personal. Additionally, our results for the quarter reflect continued improvements from both our scalable commercial strategy and operations. I'll touch on both of these developments shortly, but first I'll share an overview of our first quarter performance. We generated revenue of $3.8 million and sold 29 EksoHealth devices in the first quarter of 2024. Sales of the EksoHealth devices for the quarter were slightly more affected by typical seasonality, due primarily to fluctuations in larger integrated delivery network or IDN procurement cycles.
We remain focused on executing upon our commercial strategy and growing our IDN network. We continue to deploy resources to develop new IDN relationships that will help us to secure larger and more multi-unit capital deals across our North American network. In doing so, we aim to convey the clear clinical and economic benefits of our EksoNR and our Ekso Indego therapy devices with the right decision-makers. Our pipeline of potential deals remains solid with approximately $1 million of backlog generated in Q1 to be recognized over the course of 2024 and we remain confident that our commercial team will succeed in driving larger unit order growth. Now turning to an Ekso Indego Personal update. As previously announced, CMS approved use of healthcare common procedure coding system K1007 to bill Medicare for the Ekso Indego Personal.
On April 11th, CMS established a reimbursement level of $91,031 for Medicare reimbursement under this code, the Ekso Indego Personal, effective retroactively beginning April 1st. This pricing decision from CMS is an important next step in our commercial strategy to build demand within clinical, home, and community use settings. We believe there are thousands of Medicare and Medicaid-covered individuals with a spinal cord injury that could potentially benefit from our differentiated personal exoskeleton device enabling them to achieve better health outcomes, along with new levels of independence. We are thrilled that our differentiated exoskeleton devices are now accessible to a larger patient population and we look forward to providing future updates on our continued work with the SCI community, CMS along with other public and private health insurance programs that generally follow CMS reimbursement practices.
With reimbursement pricing secured, we anticipate growing the personal health business. We believe this growth will ramp up quarter-over-quarter as our commercial and clinical teams engage with skilled therapists and clinicians across our expansive customer base, consisting of more than 260 clinical and rehabilitation centers domestically. We are leveraging our robust network to expand our reach to a potentially higher volume of individuals living with a spinal cord injury, who benefit from our Ekso Indego Personal, through establishing additional certified training centers across the US. Turning to our international performance. We're pleased that, we continue to gain momentum across the EMEA and APAC regions. Results were particularly strong in EMEA, as the French public health system has embraced the use of robotics in their neurorehabilitation programs.
Looking ahead, we are working to continue to build on the strength of our vast international distribution network, which serves as our focal point of achieving operating leverage and scalable worldwide growth. Now I'd like to turn to an update on our Industrial segment. EksoWorks. In the first quarter of 2024, sales within this segment increased nearly 60% from the same period a year ago, although against a modest level. Notably, we delivered devices to an OEM in the construction vertical along with continued shipments to potentially large volume customers in aerospace and energy segments. With improved cost structures driven by our new contract manufacturer, we remain focused on scaling our commercial growth through targeted customers in large industrial settings.
Overall, our performance in the first quarter of 2024 demonstrated continued progress across both of our segments. Now with CMS establishing reimbursement pricing for the Ekso Indego Personal, we believe we are poised to take the next step in our evolution. At this time, I'd like to turn the call over to our Chief Financial Officer, Jerome Wong to review our first quarter financial results.
Jerome Wong: Thank you, Scott. We generated first quarter 2024 revenue of $3.8 million, compared to $4.1 million for the first quarter of 2023. Gross profit for the first quarters of 2024 and 2023 was $2 million in both periods, representing a gross margin of approximately 52% in the first quarter of 2024, compared to a gross margin of 49% for the first quarter of 2023. The overall increase in gross margin was primarily due to lower EksoHealth device and service costs. Operating expenses for the first quarter of 2024 were $5.2 million compared to $6.4 million for the first quarter of 2023. The 19% decrease was primarily due to a decrease in general and administrative expenses, stemming from lower legal expenses, headcount, and the absence of costs associated with the acquisition and integration of HMC in the comparable quarter.
Net loss applicable to common stockholders for the first quarter was $3.4 million or $0.20 per basic and diluted share, compared to a net loss of $4.4 million or $0.33 per basic and diluted share for the same period in 2023. Cash and restricted cash as of March 31st, 2024 was $8.8 million compared to $8.6 million as of December 31, 2023. Please see our Form 10-Q filed earlier today for further details regarding the quarter. Operator, you may now open the line for questions.
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