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Jun 30, 2022
Myomo Q2 2022 Earnings Report
Myomo's financial performance increased in Q2 2022, driven by revenue growth and pipeline expansion.
Key Takeaways
Myomo reported an 18% increase in product revenue to $3.7 million for Q2 2022, driven by a higher ASP. The patient pipeline grew significantly, with a record 420 new candidates added. Gross margin decreased due to higher product costs, and the company experienced an operating loss of $2.9 million.
Product revenue increased by 18% year-over-year to $3.7 million.
A record 420 new candidates were added to the patient pipeline, a 52% increase from Q2 2021.
Gross margin decreased to 65.5% due to higher product costs.
Direct billing channel represented 83% of revenue, contributing to a higher average selling price.
Myomo
Myomo
Forward Guidance
Myomo anticipates sequential growth in the third quarter and beyond, driven by a significant backlog. While expecting lower year-over-year revenue in Q3, they remain confident in the accelerating pipeline as an indicator of future revenue and expect continued growth over the next 12 months.
Positive Outlook
- Significant backlog anticipated to drive sequential growth.
- Accelerating pipeline indicates future revenue potential.
- Strong pipeline additions in the first half of the year are expected to support continued growth over the next 12 months.
- Marketing and operational efficiencies are expected to improve operating leverage in the coming quarters.
- Existing cash plus committed capital under the ELOC is sufficient to fund operations for at least the next 12 months.
Challenges Ahead
- Expecting lower year-over-year revenue in the third quarter.
- Progress with joint venture in China impacted by COVID-19 restrictions.
- Balance of the license fee from the joint venture remains unpaid.
- Cannot forecast when the final payment will be received from the joint venture.
- Cannot forecast when they will begin providing any technology and know-how to support the start-up of the JV Company's operations.