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Myomo, a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper-limb paralysis, today reported financial results for the three months and year ended December 31, 2024. Financial and operating highlights for the fourth quarter of 2024 include the following (all comparisons are with the fourth quarter of 2023 unless otherwise indicated):
• Revenue was a record $12.1 million, up 154%;
• Revenue units were a record 220, up 106%;
• Positive cash flow from operations of $3.4 million; excluding net proceeds from the Company's equity offering in December 2024 and including capital expenditures, free cash flow was $2.5 million.
• Orders and insurance authorizations were received for a record 233 MyoPro units, up 27%;
• Backlog, which represents insurance authorizations and orders received but not yet converted to revenue, was 272 units as of December 31, 2024, up 18%;
• A record 657 new candidates were added to the patient pipeline, up 72%;
• There were 1,389 MyoPro candidates in the patient pipeline as of December 31, 2024, up 33%;
• Gross margin was 71.4%, up 610 basis points;
• Cost per pipeline add was $1,224, down 46%; and
• Trained nearly 160 certified prosthetist orthotists ("CPO's) in 2024 to provide the MyoPro to their patients; U.S. orthotics and prosthetics ("O&P") channel revenue was $0.6 million, up 94% sequentially
Management Commentary
“Our success in the fourth quarter is the culmination of a transformational year for Myomo, as quarterly revenue surpassed $12 million, with double the unit volume compared to the prior year period and generating positive quarterly cash flows. I'm proud of our team achieving, and in many cases exceeding, the ambitious objectives we set for ourselves at the beginning of the year. We rapidly scaled our operations to serve the Medicare Part B population that is medically eligible to receive a MyoPro. We exited the year in the best position we've been in, and our objective is to repeat our success from this year in 2025," said Paul R. Gudonis, Myomo's Chairman and Chief Executive Officer.
Full Year Financial Results
Revenue for the year ended December 31, 2024 was $32.6 million, up 69% compared with the same period a year ago. Product revenue increased 86% compared with 2023. Gross margin was 71.1% compared with 68.5% for 2023, which includes license revenue from the joint venture in China. Excluding license revenue, gross margin on product revenue in 2023 was 65.3%. Operating expenses for 2024 were $29.4 million, an increase of 37% compared with a year ago. Operating loss in 2024 was $6.2 million, compared with an operating loss of $8.2 million in 2023. Net loss in 2024 was $6.2 million, or $0.16 per share, compared with a net loss of $8.1 million, or $0.28 per share, for 2023. Adjusted EBITDA for 2024 was $(5.1) million, compared with $(7.0) million in 2023. Operations Update The MyoPro patient pipeline was 1,389 patients as of December 31, 2024, compared with 1,042 patients as of December 31, 2023, an increase of 33%.
A record 657 patients were added to the pipeline during the fourth quarter of 2024, an increase of 72% compared with the same period a year ago. The Company generated a record 233 authorizations and orders in the fourth quarter of 2024, an increase of 27% compared with the same period a year ago. Backlog was 272 patients as of December 31, 2024, an increase of 18% compared with backlog at December 31, 2023.
Business Outlook
"Our investments in support of growth in the direct billing channel during the first half of 2025 are expected to result in accelerating revenue growth during the second half of the year," added Mr. Gudonis. "We expect typical seasonality in the first quarter, with expected revenue in the range of $9.0 million to $9.5 million. Revenue for the year is expected to be in the range of $50 million to $53 million, an increase of 54% to 63% compared with 2024" continued Mr. Gudonis. "Our objective is to continue our solid execution and scale the business to the point that we return to positive cash flow from operations on a quarterly basis by the fourth quarter of 2025."
