Myomo (MYO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 product revenue of $7.5 million, up 77% year-over-year, with significant pipeline growth and expansion in both U.S. and international markets, following Medicare Part B coverage and CMS reimbursement clarity.

• Recognized revenue on 158 MyoPro units, up 63% year-over-year; backlog reached 282 units, up 58%; patient pipeline grew to 1,179, with 550 new candidates added in Q2, up 35% year-over-year.

• Gross margin for Q2 2024 was 70.8%, up from 60.5% in Q2 2023, reflecting higher ASP and improved cost absorption.

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

• Cash, cash equivalents, and short-term investments totaled $9.0 million at June 30, 2024, with a new $4 million credit facility secured in July.

Financial highlights

• Q2 2024 revenue was $7.5 million, up 77% year-over-year; product revenue units increased 63% year-over-year.

• Average selling price (ASP) rose to $47,500, up 9% year-over-year, driven by Medicare and some Medicare Advantage reimbursements.

• Gross margin for Q2 2024 was 70.8%, compared to 71.8% in Q2 2023; product gross margin improved to 71.5% from 60.5%.

• Operating expenses for Q2 2024 were $6.4 million, up 20% year-over-year, mainly due to increased headcount and incentive accruals.

• Adjusted EBITDA for Q2 2024 was -$1.2 million, compared to -$800,000 in Q2 2023.

Outlook and guidance

• Q3 2024 revenue expected between $8.0 million and $8.5 million, representing 58%-67% year-over-year growth.

• Full-year 2024 revenue guidance maintained at $28–$30 million, with Q4 revenue implied near $10 million.

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

• Increased advertising in H2 2024 to drive future growth, with some incremental Q4 revenue expected.

• Plans to increase clinical, reimbursement, and manufacturing capacity to serve more Medicare Part B patients.