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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.

Total Revenue
$3.68M
Previous year: $3.1M
+18.5%
EPS
-$0.42
Previous year: -$0.46
-8.7%
Gross Margin
65.5%
Backlog Units
163
Previous year: 160
+1.9%
Gross Profit
$2.41M
Previous year: $2.2M
+9.4%
Cash and Equivalents
$10.2M
Previous year: $13.8M
-25.7%
Free Cash Flow
-$2.7M
Previous year: -$3.6M
-25.0%
Total Assets
$14.6M
Previous year: $17.7M
-17.8%

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.