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Sep 30, 2024
Myomo Q3 2024 Earnings Report
Myomo reported record third quarter financial and operating results, with revenue up 81% and raised full-year revenue guidance.
Key Takeaways
Myomo reported a record third quarter with significant revenue growth, driven by increased product revenue and higher average selling prices. The company saw growth in MyoPro units, backlog, and additions to the patient pipeline. Gross margin improved, and the company is focused on expanding its sales channels and achieving operating cash flow breakeven.
Product and total revenue reached a record $9.2 million, up 83% and 81%, respectively.
Orders and insurance authorizations were received for a record 225 MyoPro units, up 44%.
Gross margin was 75.4%, up 670 basis points.
The company launched its orthotics and prosthetics (O&P) channel program.
Myomo
Myomo
Forward Guidance
Myomo expects fourth quarter revenue to be in the range of $9.5 million to $10.5 million, resulting in full year revenue of $30 million to $31 million. The company believes its objective of reaching operating cash flow breakeven in the fourth quarter is achievable and also expects to approach Adjusted EBITDA breakeven in the fourth quarter.
Positive Outlook
- Sequential revenue growth expected in the fourth quarter due to the strength of backlog.
- Full year revenue expected to be $30 million to $31 million, up from previous guidance.
- Objective of reaching operating cash flow breakeven in the fourth quarter is achievable.
- Expectation to approach Adjusted EBITDA breakeven in the fourth quarter.
- Moderation in cash used to fund growth in working capital expected.
Challenges Ahead
- Ability to obtain sufficient reimbursement from third-party payers for products.
- Ability to navigate factors both within and outside our control to grow revenues sufficiently to achieve operating cash flow breakeven on a quarterly basis.
- Revenue concentration with Medicare and with a particular insurance payer.
- Ability to continue normal operations and patient interactions without supply chain disruption.
- Dependence upon external sources for the financing of operations, to the extent that cash flow breakeven is not achieved or maintained.