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Dec 31, 2020
Myomo Q4 2020 Earnings Report
Myomo reported record Q4 2020 revenue with significant growth in direct billing and improved gross margin.
Key Takeaways
Myomo reported a record Q4 2020 with revenue of $3.8 million, a 149% increase year-over-year. The company's strategic shift to direct billing is supporting revenue growth and margin improvement. Cash used in operations was the lowest since the company's IPO.
Revenue increased by 149% to a record $3.8 million.
101 units were delivered, with 97 recognized as revenue, a 126% increase.
Direct billing channel accounted for 77% of total revenue, up from 68% in Q3 2020.
Gross margin was 73%, a 100 basis point increase from 72% in Q4 2019.
Myomo
Myomo
Forward Guidance
The company expects revenue in the first quarter of 2021 to be higher year-over-year, but lower sequentially, due to seasonality and the pull-in of revenue into Q4 2020.
Positive Outlook
- Continued annual revenue growth is expected.
- Advertising changes implemented in Q4 are showing results in Q1.
- Field clinical staff focusing on growing the pipeline.
- Pipeline expanding rapidly, with nearly 300 candidates added so far in Q1.
- Sufficient cash to fund operations well into 2022.
Challenges Ahead
- Revenue in Q1 2021 expected to be lower sequentially.
- Decrease in authorizations and orders expected in Q1 due to lower lead generation in late 2020.
- Increased cash used by operations expected in Q1 due to lower anticipated revenue.
- Payment of a deposit for inventory to a contract manufacturing partner.
- Higher capital expenditures expected in Q1 due to leasehold improvements for the new headquarters.