Myomo (MYO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 product revenue of $7.5 million, up 77% year-over-year, with total revenue also at $7.5 million, reflecting strong Medicare Part B coverage and higher product sales.

• Recognized revenue on 158 MyoPro units, up 63% year-over-year; patient pipeline reached 1,179, with 550 new candidates added in Q2, up 35%.

• Expanded staff and manufacturing capacity to meet demand, with plans to move to a larger Boston-area facility.

• Building out O&P clinic distribution channel, with initial training underway and material revenue contribution expected in 2025.

• MyoPro leverages advanced EMG signal processing and proprietary algorithms to restore arm movement, addressing unmet needs in upper limb paralysis.

Financial highlights

• Q2 2024 product revenue was $7.52 million, up from $4.24 million in Q2 2023; gross margin was 70.8%.

• Operating expenses rose 20% to $6.4 million, mainly due to increased headcount and incentive accruals.

• Net loss for Q2 2024 was $1.1 million ($0.03/share), nearly flat year-over-year.

• Adjusted EBITDA for Q2 2024 was $(1.2) million, compared to $(0.8) million in Q2 2023.

• Cash and equivalents at June 30, 2024, were $9.0 million; working capital was $8.7 million.

Outlook and guidance

• Q3 2024 revenue expected between $8.0–$8.5 million, with full-year 2024 guidance at $28–$30 million and Q4 revenue targeted at $10 million.

• Operating cash flow breakeven targeted for Q4 2024, though higher advertising spend may impact this.

• Capacity in place to double monthly output to 80–100 units by year-end; July production already reached 80 units.

• Strategic plan includes increased marketing, new product introductions, and international expansion, especially in China and Germany.

• No additional capital is expected to be required for liquidity; any equity raised would fund growth initiatives.