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Mar 31, 2020
Myomo Q1 2020 Earnings Report
Reported a 21% year-over-year revenue increase and a 51% sequential increase in authorization backlog.
Key Takeaways
Myomo, Inc. reported a 21% increase in revenue to $1.0 million for the first quarter of 2020, driven by a higher average selling price from record direct billing revenues. The authorization backlog also increased by 51% sequentially. However, the company anticipates a substantial decrease in revenue for the second quarter due to public health mandates and travel restrictions.
Revenue increased by 21% year-over-year to $1.0 million.
Direct billing accounted for a record 62% of total revenue.
Gross margin increased by 300 basis points to 68.4%.
Authorization backlog increased by 51% to 80 units.
Myomo
Myomo
Forward Guidance
Myomo anticipates that second quarter revenue will be substantially below first quarter revenue due to public health mandates and travel restrictions. They have taken actions to reduce costs by over $500,000 in the second quarter and are hopeful that operations will return to a more normal pace in the coming weeks. The authorization backlog currently stands at a record 100 MyoPro units.
Positive Outlook
- Authorization backlog currently stands at a record 100 MyoPro units.
- Actions taken to reduce payroll and other costs by over $500,000 in the second quarter.
- Operations are expected to return to a more normal pace in the coming weeks.
- Continue to have success in building our authorization backlog.
- Intend to deliver and convert backlog into revenue as rapidly as possible once conditions allow.
Challenges Ahead
- Second quarter revenue is expected to be substantially below first quarter revenue.
- Public health mandates and travel restrictions are temporarily constraining revenues.
- Expected usage of cash for working capital.
- Company may require additional capital to fund its operations beyond the second quarter of 2021 if public health and travel restrictions continue into the third quarter of 2020.
- MyoPro fittings have been delayed by efforts to contain the coronavirus.