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Dec 31, 2022
Myomo Q4 2022 Earnings Report
Myomo's financial performance remained relatively stable with a slight revenue increase, while strategic adjustments led to significant pipeline growth and reduced patient acquisition costs.
Key Takeaways
Myomo reported fourth-quarter revenue of $4.0 million, consistent with the previous year. The company saw a 75% increase in new candidates added to the patient pipeline and a 45% reduction in the cost per new candidate. Gross margin was 65.0%, and the operating loss was $2.2 million. The company is focusing on payers with a history of reimbursement and expects first-quarter 2023 product revenue to increase between 15% and 20% compared to the first quarter of 2022.
Revenue was $4.0 million, consistent with the prior year quarter and up 2% sequentially.
Patient pipeline additions increased by 75% year-over-year.
Cost per pipeline add decreased by 45% compared to the previous year.
Gross margin decreased to 65.0% due to higher product costs.
Myomo
Myomo
Forward Guidance
Myomo anticipates a 15-20% increase in product revenue for Q1 2023 compared to Q1 2022 and projects full-year product revenue growth of 20-30%.
Positive Outlook
- Expected increase in first-quarter product revenue.
- Anticipated full-year product revenue growth of 20-30%.
- Focusing on working with payers that have reimbursed for MyoPro's in the past.
- Cost reduction actions are expected to save approximately $2.0 million in 2023.
- The Company expects these actions to have a minimal impact on 2023 revenues and to result in a higher authorization rate on a go-forward basis.
Challenges Ahead
- Uncertainty regarding CMS's proposed rule and its impact on Medicare Part B payments.
- Silicon Valley Bank was placed under receivership with the Federal Deposit Insurance Corporation.
- The company has a history of operating losses and its financial statements for the period ended December 31, 2022 include disclosures regarding there being substantial doubt about our ability to continue as a going concern.
- Dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven.
- General market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients.