Myomo's Q1 2025: Navigating Contradictions in Advertising Efficiency, Margins, and Revenue Growth

Advertising efficiency and marketing strategy, gross margin expectations, and O&P channel revenue impact are the key contradictions discussed in Myomo's latest 2025Q1 earnings call.



Revenue Growth and Medicare Coverage:
- Myomo, Inc. reported strong year-over-year revenue growth, with over 160% increase to $9.8 million in Q1 2025.
- Revenue growth was driven by Medicare Part B patients, who contributed 60% of revenue, marking a 59% increase from the previous quarter.

Product Innovation and Market Expansion:
- The introduction of the MARK 2 clinical unit and MyoPro 2x contributed to a 100% increase in MyoPro revenue units, reaching 182 units in Q1.
- This innovation reflects Myomo's strategy to enhance product offerings based on patient feedback and clinical experience.

Advertising Efficiency and Pipeline Development:
- Despite initial challenges due to Meta's policy changes, Myomo added a record 700 medically qualified candidates to its pipeline in Q1 2025.
- The company improved its advertising efficiency, with a record number of leads in April, indicating successful adjustments to Meta's algorithm changes.

International Business and Market Approach:
- International revenue, primarily from Germany, grew by 42% year-over-year, reaching $1.3 million in Q1.
- Myomo is focusing on expanding its presence in established markets like Germany and engaging with potential distributors in other countries, prioritizing opportunities with committed partners.