Ekso Bionics Holdings Inc (EKSO) 2023 Q2 法說會逐字稿

Hello, and welcome to the Ekso Bionics Q2 2023 Financial Results Conference Call and webcast. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Matt Steinberg with Finn Partners. Please go ahead, Matt.

您好，歡迎參加 Ekso Bionics 2023 年第二季度財務業績電話會議和網絡廣播。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給主持人 Finn Partners 的馬特·斯坦伯格 (Matt Steinberg)。請繼續，馬特。

Thank you, operator, and thank you all for participating in today's call. Joining me from Ekso Bionics are Scott Davis, Chief Executive Officer; Jason Jones, Chief Operating Officer; and Jerome Wong, Chief Financial Officer. Earlier today, Ekso Bionics released financial results for the second quarter of 2023. A copy of the press release is available on the company's website.

謝謝接線員，也謝謝大家參加今天的電話會議。與我一起來自 Ekso Bionics 的還有首席執行官 Scott Davis；賈森·瓊斯，首席運營官；和首席財務官 Jerome Wong。今天早些時候，Ekso Bionics 發布了 2023 年第二季度的財務業績。該新聞稿的副本可在該公司網站上獲取。

Before we begin, I would like to remind you that management will make statements during this call that will include forward-looking statements within the meaning of the Federal Securities Laws which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，管理層將在本次電話會議期間發表聲明，其中包括聯邦證券法含義內的前瞻性聲明，這些聲明是根據美國《私人證券訴訟改革法案》的安全港條款制定的。 1995年。

Any statements made during the call that are not statements of historical facts should be deemed to be forward-looking statements. All forward-looking statements, including statements regarding our business strategy, future financial or operational expectations or our expectations of the regulatory landscape governing our products and operations, are based upon management's current estimates and various assumptions.

電話會議期間做出的任何非歷史事實陳述的陳述均應被視為前瞻性陳述。所有前瞻性陳述，包括有關我們的業務戰略、未來財務或運營預期或我們對管理我們產品和運營的監管環境的預期的陳述，均基於管理層當前的估計和各種假設。

These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our businesses, please see our filings with the Securities and Exchange Commission.

這些陳述涉及重大風險和不確定性，可能導致實際結果或事件與這些前瞻性陳述預期或暗示的結果或事件存在重大差異。因此，您不應過分依賴這些陳述。有關與我們業務相關的風險和不確定性的列表和描述，請參閱我們向美國證券交易委員會提交的文件。

Ekso disclaims any intention or obligation, except as required by law, to update or revise any financial or operational projections, our regulatory outlook or other forward-looking statements, whether because of new information, future events or otherwise, we speak only as of today, July 27, 2023. And I will now turn the call over to Ekso Bionics CEO, Scott Davis.

除法律要求外，Ekso 不承擔任何更新或修改任何財務或運營預測、我們的監管展望或其他前瞻性陳述的意圖或義務，無論是因為新信息、未來事件還是其他原因，我們僅在今天發表評論，2023 年7 月27 日。我現在將把電話轉給Ekso Bionics 首席執行官Scott Davis。

Thank you, Matt, and thank you to everyone for joining us today. We are very pleased with our second quarter results, most notably a record number of EksoHealth device bookings and strong revenue growth of 36% year-over-year, driven by the ongoing performance of our EksoNR, the positive contributions from our Ekso Indego products and continued solid execution of our team. We are making tremendous progress in reaching more patients across the continuum of care. Ekso has taken an approach of using our technology and rehabilitative programs to follow patients from post-acute to outpatient care and onto continued home and community use.

謝謝你，馬特，也感謝大家今天加入我們。我們對第二季度的業績感到非常滿意，尤其是 EksoHealth 設備預訂量創歷史新高，收入同比增長 36%，這得益於我們 EksoNR 的持續表現、Ekso Indego 產品的積極貢獻以及我們的團隊繼續保持紮實的執行力。我們在為更多患者提供持續護理方面取得了巨大進展。 Ekso 採用了一種方法，利用我們的技術和康復計劃來跟踪患者從急性期後期到門診護理，再到持續的家庭和社區使用。

This helps differentiate us in the industry and provides our patients with more options for use of technology in their recovery process. We believe this differentiating strategy gives us access to a sizable addressable market. Specifically, we believe the VA alone with its programs around the Ekso Indego Personal provides us a market opportunity of more than $300 million.

這有助於我們在行業中脫穎而出，並為我們的患者在康復過程中使用技術提供更多選擇。我們相信這種差異化戰略使我們能夠進入一個相當大的目標市場。具體來說，我們相信 VA 及其圍繞 Ekso Indego Personal 的計劃為我們提供了超過 3 億美元的市場機會。

Additionally, with the full Indego product line, our reach now expands to outpatient facilities that total almost 53,000 centers domestically, along with wellness centers, which is an emerging market for us that total approximately 31,000 across the U.S. Our commercial and marketing teams are hard at work to drive greater awareness as we seek to penetrate these large markets.

此外，憑藉完整的Indego 產品線，我們的業務範圍現已擴展到國內總計近53,000 個中心的門診設施，以及健康中心（這對我們來說是一個新興市場，在美國各地總計約31,000 個中心） 。在我們尋求滲透這些大型市場時，努力提高人們的認識。

In the second quarter, we booked a total of 44 EksoHealth devices, a quarterly record. This includes devices within the EksoNR and Ekso Indego product lines. Among these bookings was another significant multiunit order from an integrated delivery network, or IDN, for 12 of our EksoNR devices. This represents the second straight quarter of a sizable booking number with a large IDN customer. We believe that our customers are seeing firsthand how our cutting-edge devices elevate the standard of care for neuro rehabilitation.

第二季度，我們總共預訂了 44 台 EksoHealth 設備，創季度記錄。這包括 EksoNR 和 Ekso Indego 產品線內的設備。在這些預訂中，還有來自綜合交付網絡 (IDN) 的另一份重要的多單元訂單，涉及我們的 12 台 EksoNR 設備。這是連續第二個季度向 IDN 大型客戶提供大量預訂。我們相信，我們的客戶將親眼目睹我們的尖端設備如何提高神經康復護理標準。

Our research suggests that post-acute care centers gain clear benefits with our EksoNR and Ekso IndeGo devices in the form of positive patient outcomes, a differentiated and more efficient offering and better economic value. Furthermore, we are leveraging our current customer base to heighten awareness for individuals who can benefit from the use of Ekso Indego Personal.

我們的研究表明，急性後期護理中心通過我們的 EksoNR 和 Ekso IndeGo 設備獲得了明顯的好處，包括積極的患者治療結果、差異化且更高效的產品以及更好的經濟價值。此外，我們正在利用現有的客戶群來提高可以從 Ekso Indego Personal 的使用中受益的個人的意識。

These adoption drivers are among the reasons our commercial team is generating strong demand from new and existing network operators, putting us in a position to reach a significantly larger patient population. Internationally, we're pleased to have reported a strong booking quarter, particularly in Europe. One exciting deal of note is through a distributor in Hungary that resulted in a 6-unit EksoNR deal.

這些採用驅動因素是我們的商業團隊從新的和現有的網絡運營商那裡產生強烈需求的原因之一，使我們能夠覆蓋更多的患者群體。在國際上，我們很高興報告季度預訂量強勁，尤其是在歐洲。一項令人興奮的交易是通過匈牙利的一家經銷商達成的 6 台 EksoNR 交易。

The strength in Europe underscores our investment in indirect partnerships in the region. In APAC, we secured our first Ekso Indego booking. We continue to these regions as important growth drivers in the years to come.

在歐洲的實力凸顯了我們對該地區間接合作夥伴關係的投資。在亞太地區，我們獲得了首個 Ekso Indego 預訂。我們將繼續將這些地區作為未來幾年重要的增長動力。

Turning to an update on the progress with our industrial product line, Ekso Works. During the second quarter, as we previously mentioned, we continued focusing on a different go-to-market strategy placing increased emphasis on EVO and its placement into large industrial settings where we believe there is an addressable market opportunity of approximately $5 billion.

接下來介紹我們的工業產品線 Ekso Works 的最新進展。正如我們之前提到的，在第二季度，我們繼續專注於不同的進入市場戰略，更加重視EVO 及其在大型工業環境中的佈局，我們相信這些環境中存在約50 億美元的可尋址市場機會。

This refocus takes time with a longer sales cycle, but I'm pleased to report subsequent to quarter end, we won a competitive bid with a global automotive leader and have a number of other promising opportunities in our pipeline. During the quarter, we also shipped our first EVO from our new contract manufacturer, which brings us a better pricing structure.

這種重新聚焦需要時間，而且銷售週期較長，但我很高興在季度末後報告，我們贏得了一家全球汽車領導者的競標，並且我們的管道中還有許多其他有前途的機會。在本季度，我們還從新的合同製造商發貨了第一台 EVO，這為我們帶來了更好的定價結構。

Looking ahead, our Ekso Works commercial team is focused on targeting large customers and increasing engagement to drive demand and ensure the success and safety of our customers' workforce. Another exciting development at the end of the quarter was the recently updated 2024 home health prospective payment system rate from the centers for Medicare and Medicaid services or CMS with a newly proposed rule that is relevant for our business and our patients.

展望未來，我們的 Ekso Works 商業團隊將專注於瞄準大客戶並提高參與度，以推動需求並確保客戶員工的成功和安全。本季度末的另一個令人興奮的進展是醫療保險和醫療補助服務中心或 CMS 最近更新了 2024 年家庭健康預期支付系統費率，其中包括一項與我們的業務和患者相關的新提議規則。

This rule would [cut of] a long-standing Medicare definition of race to provide clarification on the scope of the Medicare Part B benefit for leg, arm, back and neck braces. And as a result, we classify certain exoskeleton-type devices as braces for Medicare payment purposes.

該規則將[削減]長期存在的 Medicare 對種族的定義，以澄清 Medicare B 部分腿部、手臂、背部和頸託的福利範圍。因此，我們將某些外骨骼型設備歸類為用於醫療保險支付目的的支架。

This is a positive step in facilitating the potential for Medicare coverage of personal exoskeletal such as [RXO] Indego Personal for qualified patients as a lump sum reimbursement. We fully support the codifying of the proposal to further enhance potential access for Medicare beneficiaries and look forward to providing updates around this proposed rule in coming quarters.

這是促進醫療保險覆蓋個人外骨骼（例如 [RXO] Indego Personal）對符合條件的患者一次性報銷潛力的積極一步。我們完全支持對該提案進行編纂，以進一步增強醫療保險受益人的潛在獲取機會，並期待在未來幾個季度提供有關該擬議規則的最新信息。

Overall, we are encouraged by our performance, highlighted by record quarter results of revenues and bookings securing multiunit orders with large network operators and inroads we are making in large markets across the continuum of care. Driven by the strength of our commercial team and newly expanded portfolio, we look forward to bringing our life-changing solutions to a greater number of patients in the worldwide. Now I will turn the call over to our Chief Operating Officer, Jason Jones.

總體而言，我們對我們的業績感到鼓舞，特別是創紀錄的季度收入和預訂業績，確保了大型網絡運營商的多單位訂單，以及我們在整個護理過程中在大型市場上取得的進展。在我們商業團隊實力和新擴展的產品組合的推動下，我們期待為全球更多患者帶來改變生活的解決方案。現在我將把電話轉給我們的首席運營官賈森·瓊斯。

Thank you, Scott. Within operations, we continue to execute on our mandate to reduce our cash burn and have a number of related initiatives underway. Among these are improving processes and efficiencies tightening OpEx and cost controls and optimizing inventory. That said, our operating expenses did increase in the quarter on a year-over-year basis. This is in line with our expectations due to the costs associated with HMC or Human Motion Control integration. On the inventory front, since the second half of 2022, we have carried higher than optimal inventory to mitigate production risks due to pervasive supply chain disruptions. .

謝謝你，斯科特。在運營方面，我們繼續執行減少現金消耗的任務，並正在進行一些相關舉措。其中包括改進流程和效率、加強運營支出和成本控制以及優化庫存。也就是說，我們的運營費用在本季度確實同比有所增加。由於與 HMC 或人體運動控制集成相關的成本，這符合我們的預期。在庫存方面，自 2022 年下半年以來，我們的庫存高於最佳庫存，以減輕普遍存在的供應鏈中斷造成的生產風險。 。

While not completely back to normal, our component lead time are much more predictable than they have been in past quarters. In response to these improvements, we are working diligently to optimize our inventory levels to free up additional working capital. The integration of HMC continues to progressively. From a product perspective, all former HMC products are now fully integrated into our portfolio, which now covers a broad portion of the continuum of care for rehabilitation and mobility.

雖然尚未完全恢復正常，但我們的零部件交貨時間比過去幾個季度更加可預測。為了應對這些改進，我們正在努力優化庫存水平，以釋放額外的營運資金。 HMC的整合仍在繼續進行。從產品角度來看，所有以前的 HMC 產品現已完全集成到我們的產品組合中，該產品組合現已涵蓋康復和活動連續護理的大部分內容。

As a result, our production and revenue potential are significantly higher. The former HMC team is also now fully utilizing our combined operational systems, which we are continually working to improve. In addition, the process to combine our engineering and quality systems is well underway with a target completion of mid-2024.

因此，我們的生產和收入潛力顯著提高。前 HMC 團隊現在也充分利用我們的組合操作系統，我們正在不斷努力改進該系統。此外，我們的工程和質量系統的整合流程正在順利進行，目標於 2024 年中期完成。

I look forward to providing additional updates as the year progresses. I will now turn the call over to Jerome Wong, who will discuss our second quarter 2023 financial results.

我期待著隨著時間的推移提供更多更新。我現在將電話轉給 Jerome Wong，他將討論我們 2023 年第二季度的財務業績。

Thank you, Jason. Now on to a summary of our second quarter 2023 financial results. Ekso generated second quarter 2023 revenue of $4.7 million compared to $3.5 million for the second quarter of 2022, an increase of 36%. This increase was comprised of a $1.5 million increase in EksoHealth revenue, partially offset by a $200,000 decrease in EksoWorks. In the quarter, EksoWorks revenue was affected by delays from our transition to our contract manufacturer. .

謝謝你，傑森。現在總結我們 2023 年第二季度的財務業績。 Ekso 2023 年第二季度的收入為 470 萬美元，而 2022 年第二季度的收入為 350 萬美元，增長了 36%。這一增長包括 EksoHealth 收入增加 150 萬美元，部分被 EksoWorks 收入減少 20 萬美元所抵消。本季度，EksoWorks 的收入受到我們向合同製造商過渡延遲的影響。 。

Gross profit for the second quarter was $2.3 million, representing a gross margin of approximately 48% compared to a gross profit of $1.6 million and a gross margin of 47% for the same period in 2022. The 37% overall increase in gross profit was driven by a sharp increase in EksoHealth device sales. The increase in gross margin was primarily due to lower device costs.

第二季度毛利潤為230萬美元，毛利率約為48%，而2022年同期毛利潤為160萬美元，毛利率為47%。毛利潤整體增長37%是由EksoHealth 設備銷量急劇增長。毛利率的增長主要是由於設備成本下降。

Operating expenses for the second quarter were $6.5 million compared to $4.9 million for the second quarter of 2022. During the second quarter of 2023, the company incurred increased expenses related to the acquisition and integration of HMC, severance expense and an increase in marketing activities. Net loss for the second quarter was $4.2 million or $0.31 per basic and diluted share compared to a net loss of $3 million or $0.23 per basic and diluted share for the same period in 2022.

第二季度的運營費用為 650 萬美元，而 2022 年第二季度為 490 萬美元。2023 年第二季度，該公司因收購和整合 HMC、遣散費以及營銷活動增加而產生的費用增加。第二季度淨虧損為 420 萬美元，或每股基本股和稀釋股 0.31 美元，而 2022 年同期淨虧損為 300 萬美元，或每股基本股和稀釋股 0.23 美元。

Turning to our 2023 1st half results. Revenue increased $2.8 million or 46% to $8.8 million for the 6 months ended June 30, 2023 compared to $6 million in the same period of 2022. The increase in revenue was primarily driven by an increase in EksoHealth device sales of $3.6 million. Gross profit for the 6 months ended June 30, 2023, was $4.3 million, representing a gross margin of 48% compared to gross profit of $2.9 million for the same period in 2022 representing a gross margin of 47%.

轉向我們 2023 年上半年的業績。截至2023 年6 月30 日的6 個月，收入增加280 萬美元，達到880 萬美元，增幅為46%，而2022 年同期為600 萬美元。收入增加主要是由於EksoHealth 設備銷售額增加了360 萬美元。截至2023年6月30日止6個月的毛利潤為430萬美元，毛利率為48%，而2022年同期的毛利潤為290萬美元，毛利率為47%。

The overall increase in gross margin was primarily due to lower device costs. Operating expenses for the first 6 months of 2023 were $13 million compared to $10.3 million for the same period in 2022. The increase in operating expenses was primarily related to the acquisition and integration of HMC, severance expense and marketing costs.

毛利率的整體增長主要是由於設備成本下降。 2023 年前 6 個月的運營費用為 1,300 萬美元，而 2022 年同期為 1,030 萬美元。運營費用的增加主要與 HMC 的收購和整合、遣散費和營銷成本有關。

Net loss applicable for the first 6 months of 2023 was $8.6 million or $0.64 per basic and diluted share compared to net loss of $7.6 million or $0.59 per basic and diluted share for the same period in 2022. Cash used in operating activities in the first half of 2023 was $7.1 million, down from $8.5 million in the year ago period. As of June 30, 2023, the company had a cash balance of $13.3 million.

2023 年前6 個月的淨虧損為860 萬美元，或每股基本股和稀釋股0.64 美元，而2022 年同期淨虧損為760 萬美元，或每股基本股和稀釋股0.59 美元。 上半年經營活動使用的現金2023 年的收入為 710 萬美元，低於去年同期的 850 萬美元。截至2023年6月30日，該公司的現金餘額為1330萬美元。

Please see our 10-Q filed earlier today for further details regarding the quarter. Operator, you may now open the line for questions.

請參閱我們今天早些時候提交的 10-Q，了解有關本季度的更多詳細信息。接線員，您現在可以撥打電話提問。

(Operator Instructions) Our first question today is coming from Sean Lee from H.C. Wainwright.

（操作員說明）今天我們的第一個問題來自 H.C. 的 Sean Lee。溫賴特。

Congratulations on a great quarter. My first question is on the Indego. It's nice to hear that the product is going well and adoption is increasing. I was wondering if you can provide a bit more color on -- how much of the -- how much is Indego contributing to the overall increase in revenue that we've seen in the last quarter? And where do you see it going for the rest of the year?

祝賀您度過了一個美好的季度。我的第一個問題是關於 Indego 的。很高興聽到該產品進展順利並且採用率不斷提高。我想知道您是否可以提供更多信息，說明 Indego 對我們上個季度的整體收入增長貢獻了多少？您認為今年剩餘時間的情況會怎樣？

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Okay. Thank you for your question, Sean. Appreciate it. This is Scott Davis. With the Indego devices, Ekso considers these devices as part of our EksoHealth bookings. So generally speaking, we contain those within that category. However, within that family of products, the Ekso Indego therapy and Ekso Indego-NR are typically used by clinics for patient rehabilitation. And the Ekso Indego Personal is used by individuals for home and community health use.

好的。謝謝你的提問，肖恩。欣賞它。這是斯科特·戴維斯。對於 Indego 設備，Ekso 將這些設備視為我們 EksoHealth 預訂的一部分。所以一般來說，我們將這些包含在該類別中。然而，在該產品系列中，診所通常使用 Ekso Indego 療法和 Ekso Indego-NR 進行患者康復。 Ekso Indego Personal 供個人用於家庭和社區健康用途。

So in Q2, our home and community health segment of the Indego product line represented in the neighborhood of 20% of our revenue overall. And if we talk specifically about our legacy EksoNR product and strip out the Indego, we are seeing year-over-year growth even within that product line alone. So Indego was certainly a contributor to our grade numbers in Q2.

因此，在第二季度，我們 Indego 產品線的家庭和社區健康部分占我們整體收入的 20% 左右。如果我們具體討論我們的傳統 EksoNR 產品並剔除 Indego，我們會發現即使僅在該產品線內，我們也看到了逐年增長。因此，Indego 無疑對我們第二季度的成績做出了貢獻。

Great. That was very helpful. In the prepared remarks, you also mentioned that you guys want to bid with the auto manufacturer for Ekso Works. Assuming whether you can provide some more details on that.

偉大的。這非常有幫助。在準備好的發言中，你們還提到你們想與汽車製造商競標 Ekso Works。假設您是否可以提供更多細節。

Well, we're really excited about the win with the auto -- in the auto industry. We booked an initial order from that. However, in the quarter due to some supply chain challenges in late delivery of our [EBOs] we were unable to fulfill those in the quarter, but we carry those as backlog into Q3. And we continue to have additional development in that category as well with new customers coming into our forecast and pipelines.

嗯，我們對汽車行業的勝利感到非常興奮。我們從中預訂了初始訂單。然而，在本季度，由於 [EBO] 延遲交付帶來的一些供應鏈挑戰，我們無法在本季度完成這些任務，但我們將這些積壓訂單帶入第三季度。隨著新客戶進入我們的預測和管道，我們將繼續在該類別中進行進一步的開發。

My final question is on the margin side. You mentioned the margin increased the last quarter because of lower device prices. So I was wondering whether we can see that trend continue for the rest of the year?

我的最後一個問題是關於邊際的。您提到由於設備價格下降，上個季度的利潤率有所增加。所以我想知道我們是否可以看到這種趨勢在今年剩餘時間內持續下去？

Sure. We continue to work to improve operational efficiencies. And we are, as a result, seeing lower costs in our supply chain. So it is a trend that we are constantly working towards. Jason Jones, would you like to maybe shed a little more light on that? .

當然。我們繼續努力提高運營效率。因此，我們的供應鏈成本降低了。所以這是我們不斷努力的一個趨勢。賈森·瓊斯（Jason Jones），您想進一步解釋一下嗎？ 。

Yes. I guess I would just say that we are not satisfied with our current margin level. We think it should be higher. I don't think we're in a position to forecast is going to be higher, but that's a focus of ours along with reducing our inventory. So that's how it operates. But I don't think we're in a position to forecast higher numbers in the future yet.

是的。我想我只想說我們對目前的利潤水平不滿意。我們認為它應該更高。我認為我們的預測不會更高，但這是我們關注的重點以及減少庫存。這就是它的運作方式。但我認為我們還不能預測未來會有更高的數字。

We reach end of our question-and-answer session. I'd like to turn the floor back over to Scott for any further closing comments. .

我們的問答環節即將結束。我想將發言權交還給斯科特，以徵求更多的結束語。 。

All right. Thank you, Kevin. And to everyone, we are very proud of the progress we made so far this year, highlighted by our quarterly record number of EksoHealth bookings and revenue. Our commercial team continues to generate new demand by strengthening our relationships with top network operators. We're generating new multiunit orders and combined with the strength of our sales team and our expanded product portfolio now reaching across the continuum of care. We believe that we are well positioned to sustain this momentum into the second half of 2023 and beyond. We look forward to providing additional updates throughout the year. Thank you all. Have a great day. .

好的。謝謝你，凱文。對於每個人來說，我們對今年迄今為止所取得的進展感到非常自豪，特別是我們季度創紀錄的 EksoHealth 預訂量和收入。我們的商業團隊通過加強與頂級網絡運營商的關係，不斷產生新的需求。我們正在生成新的多單位訂單，並結合我們銷售團隊的實力和我們擴大的產品組合，現在已覆蓋整個護理領域。我們相信，我們有能力將這一勢頭維持到 2023 年下半年及以後。我們期待全年提供更多更新。謝謝你們。祝你有美好的一天。 。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網絡廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。