Myomo (MYO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $9.2 million, up 81% year-over-year, driven by Medicare Part B coverage, higher unit deliveries, and increased ASP.

• Net loss narrowed to $0.97 million ($0.03/share), improved from $2 million ($0.06/share) in Q3 2023, reflecting improved gross margins and higher sales.

• Patient pipeline grew to 1,263, with 645 new qualified candidates added in Q3, up 69% year-over-year.

• Backlog reached a record 316 units, representing over $16 million in potential revenue, up 71% year-over-year.

• O&P channel development accelerated, surpassing the goal of training 100 clinicians, with expectations for increased orders in 2025.

Financial highlights

• Product revenue for Q3 was $9.2 million, up 83% year-over-year; 161 MyoPro units delivered, up 35%.

• Gross margin improved to 75.4% from 68.7% in the prior year quarter, primarily due to higher ASP and fixed cost absorption.

• Operating expenses rose 43% to $7.9 million, mainly due to increased headcount, R&D, and advertising.

• Adjusted EBITDA for Q3 was -$600,000, improved from -$1.7 million a year ago.

• Cash and equivalents at quarter end were $7 million; working capital was $7.8 million.

Outlook and guidance

• Q4 revenue expected between $9.5 million and $10.5 million, representing 100%-121% year-over-year growth.

• Full-year 2024 revenue guidance raised to $30-$31 million.

• Operating cash flow and Adjusted EBITDA breakeven targeted for Q4, assuming no major disruptions.

• 2025 revenue expected to exceed $40 million if Q4 targets are met.

• Revenue growth in 2025 and beyond expected from increased Medicare patient volume and expanded O&P provider training.