The following is a summary of the Myomo, Inc. (MYO) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Myomo reported Q1 2024 revenue of $3.8 million, up 9% over Q1 of previous year, driven by a higher number of revenue units but offset by a 5% decline in average selling price.

• The company saw its gross margin decrease to 61.2%, primarily due to the decrease in average selling price and some cost increases.

• Operating expenses spiked by 24% compared to Q1 2023 due to increased headcount and higher engineering and advertising costs.

• The company reported an increased operating loss of $3.9 million for Q1 2024.

Business Progress:

• Since 2024 began, major developments came from the Centers for Medicare and Medicaid Services (CMS) with MyoPro being reclassified, paving way for lump-sum reimbursements.

• Myomo has commenced the submission of claims to Medicare Advantage plans.

• The company ended Q1 with 1,100 candidates (up 30% YoY) in the pipeline for obtaining a MyoPro and secured 83 qualified patients in its backlog.

• Q4 production is expected to double to a monthly run rate of 80-100 units.

• Despite a weaker Q1, revenue guidance for 2024 remains between $28m and $30m.

• Myomo plans to increase its workforce and manufacturing space by year-end to meet growing demand, targeting a long-term gross margin potential of 70%.

• The company is also amplifying its presence in Germany and focusing more on Medicare Part B patients, thereby accelerating the revenue cycle.

More details: Myomo IR

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