Myomo (MYO) 6 Nov 24 2024 Q3 Earnings call transcript

Myomo, a leader in advanced bracing solutions, recently held its Q3 2024 earnings call, providing insightful updates on the company's financial performance and strategic initiatives. The call, led by Paul Gudonis, CEO, and Dave Henry, CFO, showcased a strong third quarter, driven by the successful implementation of Medicare coverage for its MyoPro powered arm braces.

Financial Highlights

The company reported a record $9.2 million in product revenue, up 83% year-over-year. This achievement was primarily attributed to the increased number of revenue units, which reached 161, a 35% increase from the previous year. The average selling price (ASP) also saw a significant rise, reaching $52,700 per unit. This growth is a testament to Myomo's successful market penetration, as it expanded its reach to include Medicare Part B beneficiaries.

Strategic Initiatives

Myomo outlined three major objectives for the company: serving Medicare Part B beneficiaries, developing the O&P channel, and establishing contracts with payers for in-network status. The company has made significant progress in these areas, with a record 645 medically qualified candidates added to the patient pipeline, representing a 69% increase from the previous year. This expansion is crucial, as it enables Myomo to cater to a larger market and increase its market share.

O&P Channel

The O&P channel, a strategic focus for Myomo, has shown promising signs of growth. The company attended the American Orthotics and Prosthetics National Association Assembly, securing the interest of numerous O&P clinics. Myomo has already surpassed its goal of recruiting and training 100 clinicians, with many already evaluating patients and placing orders for custom MyoPros. This channel is expected to contribute significantly to Myomo's revenue in the coming year.

Challenges

Despite the positive progress, Myomo faces challenges, particularly with Medicare Advantage plans. While some have begun covering the MyoPro, others have made it more difficult for patients and providers to access care. This has led to a higher number of authorization requests being denied, necessitating appeals. However, Myomo remains optimistic, recognizing the potential for growth as more plans begin to provide coverage.

Future Outlook

Looking ahead, Myomo anticipates a strong finish to 2024, with a projected revenue range of $9.5 million to $10.5 million for Q4. The company is also aiming for full-year revenue of $30 million to $31 million, up from its previous guidance. Myomo's strategic initiatives, coupled with its successful financial performance, position it for continued growth in 2025 and beyond.

In conclusion, Myomo's Q3 2024 earnings call highlighted the company's financial success and strategic initiatives, providing a positive outlook for the future. With a focus on expanding its reach and addressing the challenges in the market, Myomo is well-positioned to capitalize on the opportunities in the advanced bracing solutions sector.