Myomo Inc, a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper-limb paralysis, announces financial results for the three and six months ended June 30, 2022.
Financial and operational highlights for the second quarter of 2022 include the following:
- Product revenue was $3.7 million, up 18% from Q2 2021 and up 28% sequentially;
- A record 420 new candidates were added to the patient pipeline, up 52% from Q2 2021 and resulting in 1,049 MyoPro® candidates overall in the pipeline as of June 30, 2022;
- MyoProorders and insurance authorizations were received for 102 patients, bringing the total to 196 for the first half of 2022, compared with 204 in the first half of 2021;
- Direct billing channel represented 83% of revenue, compared to 73% in the prior year period, contributing to a higher average selling price (ASP);
- Revenue units were 80, in line with the prior year;
- Backlog, which represents insurance authorizations and orders received but not yet converted to revenue, was 163 units, up 2% from Q2 2021.
- Gross margin was 65.5%, down 550 basis points from Q2 2021 and down 120 basis points sequentially;
- Cost per pipeline add decreased 7% sequentially to approximately $2,470, approximately half the cost compared to Q4 2021; and
- As announced in July, the license payment from the Company’s joint venture partner in China has been delayed due to the COVID-19 situation in China.
“Patient pipeline growth was exceptional as we reduced advertising cost per new pipeline addition by approximately 50% over the last six months” stated Paul R. Gudonis, Myomo Inc chairman and chief executive officer. “Our quarter-end patient pipeline stood at a record 1,049 candidates advancing through the insurance authorization process, which bodes well for future revenue. We’re pleased with our financial results as the organization is tracking well against all major performance metrics.”
“Progress with our joint venture in China has been impacted by restrictions imposed by the Chinese government in response to the ongoing COVID-19 outbreak,” said Gudonis. “As a result, the balance of the license fee remains unpaid. Given the unpredictable nature of the pandemic, we cannot forecast when the final payment will be received and when we will begin providing any technology and know-how to support the start-up of the JV Company’s operations.”
Revenue for the second quarter of 2022 was $3.7 million, an increase of 18% compared with the second quarter of 2021. Growth in revenue was driven by a higher ASP. Myomo Inc recognized revenue on 80 MyoPro units in the second quarter of 2022, unchanged from the same period a year ago. Year-to-date revenue of $7.5 million was up 39% compared with the same period a year ago. Excluding the partial joint venture license payment received in the first quarter of 2022, year to date product revenue of $6.5 million was up 20% compared to the same period a year ago.
Gross margin for the second quarter of 2022 was 65.5%, compared with 71.0% for the second quarter of 2021. The decrease was driven by higher product costs in the current inflationary environment, partially offset by a higher ASP. Year-to-date gross margin was 66.1%, compared with 72.0% in the year-ago period.
Operating expenses for the second quarter of 2022 were $5.3 million, an increase of 10% compared with the second quarter of 2021. The increase was driven primarily by higher compensation, payroll and advertising costs. Advertising costs of $1.0 million increased 34% compared to the second quarter of 2021. Year-to-date operating expenses were $10.6 million, an increase of 12% compared with the same period a year ago.
Operating loss for the second quarter of 2022 was $2.9 million compared to $2.6 million for the second quarter of 2021. Net loss for the second quarter of 2022 was $2.9 million, or $0.42 per share, compared with net loss of $2.6 million, or $0.46 per share, for the second quarter of 2021. Operating loss for the first six months of 2022 was $5.6 million, compared to $5.5 million for the same period a year ago. Net loss for the first six months of 2022 was $5.7 million, or $0.82 per share, compared with $5.6 million, or $1.03 per share for the same period a year ago.
Adjusted EBITDA for the first quarter of 2022 was negative $2.5 million, compared with negative $2.2 million for the second quarter of 2021. Adjusted EBITDA was a negative $4.9 million for both the six months ended June 30, 2022 and 2021.
Cash and cash equivalents as of June 30, 2022 were $10.2 million. Cash used in operating activities was $2.6 million for the second quarter of 2022. Myomo Inc entered into an equity line of credit (‘ELOC”) with Keystone Capital on August 2, 2022. The Company believes that its existing cash plus committed capital under the ELOC is sufficient to fund operations for at least the next 12 months.
“Owing to our significant backlog, we are anticipating sequential growth in the third quarter and beyond,” said Gudonis. “While we are expecting lower year over year revenue in the third quarter, we remain confident that the accelerating pipeline is a better indicator of future revenue. We expect that the strong pipeline adds in the first half of this year will support continued growth over the next 12 months, while marketing and operational efficiencies are expected to improve our operating leverage in the coming quarters.”
[Source(s): Myomo Inc, Business Wire]