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Mar 31, 2023
Myomo Q1 2023 Earnings Report
Myomo's Q1 2023 financial results were released, showcasing a 20% year-over-year increase in product revenue and the successful implementation of virtual waiting room technology.
Key Takeaways
Myomo reported a decrease in total revenue by 11% due to a partial joint venture license fee payment a year ago, but product revenue increased 20% year-over-year. The company saw a record number of pipeline additions, driven by advertising efficiencies and the implementation of a virtual waiting room.
Product revenue increased by 20% compared to the prior year quarter, reaching $3.4 million.
A record 438 new candidates were added to the patient pipeline, up 54% compared to Q1 2022.
Cost per pipeline add decreased to $1,579, down 53% compared to the prior year quarter.
Gross margin was 67.0%, up 30 basis points compared with the prior-year quarter.
Myomo
Myomo
Forward Guidance
Myomo expects record revenue in the second quarter of 2023 and reiterates its belief that product revenue growth of between 20% to 30% is attainable in 2023.
Positive Outlook
- The company anticipates record revenue in the second quarter of 2023.
- Product revenue growth of between 20% to 30% is expected in 2023.
- The remaining initial technology license fee was received.
- Sequentially higher backlog is expected.
- The company is focusing on working with payers that have previously reimbursed for MyoPro's in the past
Challenges Ahead
- The company has a history of operating losses and there are disclosures regarding there being substantial doubt about the company's ability to continue as a going concern.
- The company's ability to achieve reimbursement from third-party payers for its products, including CMS for Medicare Part B patients, is uncertain.
- The company's ability to continue to serve patients with Medicare Advantage insurance plans CMS does not cover the MyoPro is uncertain.
- The company faces dependence upon external sources for the financing of its operations, to the extent that it does not achieve or maintain cash flow breakeven.
- General market, economic, environmental and social factors may affect the evaluation, fitting, delivery and sale of the company's products to patients.