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Sep 30, 2020
Myomo Q3 2020 Earnings Report
Myomo achieved record revenue driven by deliveries of MyoPros authorized for insurance reimbursement.
Key Takeaways
Myomo, Inc. reported a strong third quarter with record revenue of $1.9 million, up 218% year-over-year, driven by increased direct billing and higher average selling prices. The company also saw a rise in gross margin and backlog, with cash utilization at its lowest level since 2018. They believe they have sufficient cash to fund operations through the fourth quarter of 2021, which is their target to achieve cash flow breakeven on a quarterly basis.
Revenue increased by 218% to a record $1.9 million, with revenue units up 123% to a record 51.
Direct billing channel revenue increased more than six-fold, representing 68% of total revenue.
Gross margin improved to 56% from 46% in the third quarter of 2019.
Authorization backlog reached a record 162 units, a 35% increase compared to June 30, 2020.
Myomo
Myomo
Forward Guidance
Myomo anticipates strong revenue growth for the year as they convert units in their growing backlog into revenue in the fourth quarter. They believe they have sufficient cash to fund operations through the fourth quarter of 2021, which is their target to achieve cash flow breakeven on a quarterly basis.
Positive Outlook
- Expects strong revenue growth for the year as they convert units in their growing backlog into revenue in the fourth quarter.
- Dedicated staff has been provided with personal protective equipment (PPE) and training on proper and safe procedures, and PPE is also available for patients during the MyoPro fitting process.
- A new case study showed that despite long-standing traumatic brain injury, meaningful improvements in motor function were observed with MyoPro use.
- New patents were issued, bolstering their intellectual property portfolio and extending it to 2039.
- Believes they have sufficient cash to fund operations through the fourth quarter of 2021, which is their target to achieve cash flow breakeven on a quarterly basis.
Challenges Ahead
- The direct and indirect impact of the novel coronavirus (COVID-19) on their business and operations, including fabrication and delivery, sales, patient consultations, supply chain, manufacturing, insurance reimbursements and employees.
- Ability to continue normal operations and patient interactions in order to cast, deliver and fit our custom-fabricated device.
- Sales and commercialization efforts.
- Ability to achieve reimbursement from third-party payers for our products.
- Dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven.