• Q4 Revenue: $12.1 million, a 154% increase year-over-year.
• Full Year Revenue 2024: $32.6 million, up 69% from 2023.
• Revenue Units Delivered in Q4: 220 units, up 106% year-over-year.
• Average Selling Price (ASP): Approximately $54,900, a 24% increase year-over-year.
• Gross Margin Q4: 71.4%, up from 65.3% in the prior year quarter.
• Operating Expenses Q4: $8.9 million, up 60% year-over-year.
• Net Loss Q4: $300,000 or $0.01 per share, compared to a net loss of $2.5 million or $0.07 per share in Q4 2023.
• Adjusted EBITDA Q4: Positive $200,000, compared to negative $2.1 million in Q4 2023.
• Cash and Equivalents: $24.9 million as of December 31, 2024.
• Q1 2025 Revenue Guidance: $9 million to $9.5 million.
• Full Year 2025 Revenue Guidance: $50 million to $53 million.

• Warning! GuruFocus has detected 3 Warning Signs with MYO.

Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Myomo Inc (MYO) achieved record financial and operating results in Q4 2024, with revenues reaching $12.1 million, a 154% increase from the prior year.
• The company successfully expanded its market access by securing Medicare Part B coverage for the MyoPro powered arm brace, allowing them to serve a larger patient base.
• Myomo Inc (MYO) trained 160 certified prosthetist orthotists, surpassing their goal of 100, which is expected to drive future growth through the O&P channel.
• The international business, particularly in Germany, performed well, generating over $1 million in profitable revenue in Q4 and over $4 million for the full year.
• The company achieved positive adjusted EBITDA for the first time in its history, marking a significant financial milestone.

Negative Points

• Myomo Inc (MYO) continues to face challenges with Medicare Advantage and other commercial payers, with many patients being denied coverage for the MyoPro.
• The appeals process for denied claims remains slow, often requiring escalation to administrative law judge hearings, which can delay revenue recognition.
• Operating expenses increased by 60% in Q4 2024 compared to the prior year, driven by higher headcount and R&D expenses.
• Despite the growth, the company anticipates negative cash flows in the first three quarters of 2025 due to increased advertising expenses and incentive compensation payments.
• The cost per pipeline add increased, and there is uncertainty about maintaining the efficiency of marketing spend in the future.

Q & A Highlights

Q: Can you walk through your assumptions on unit or revenue contribution in 2025 from the O&P channel? What goals do you have for that channel in '25? A: We plan to have more revenue from our direct provider business, which we are expanding by hiring more CPOs and increasing advertising spend. The O&P channel showed promising growth, with revenues doubling from Q3 to Q4 of last year. We trained 160 clinicians by the end of the year and expect this channel to contribute more significantly, but the majority of revenue will still come from our direct provider channel this year. (Paul Gudonis, CEO)

Q: How quickly can you ramp advertising spend, and what do you expect from a spend perspective in Q1? A: It's too early to tell if the cost per pipeline add will remain low. We're working through changes made by Meta with Facebook, which affected lead generation. We expect a slight increase in cost per pipeline add in Q1, but we've had a decent start to the year. (David Henry, CFO)

Q: What are the main reasons for authorization denials, and is there anything the company can do to reduce their frequency? A: Denials often cite the device as experimental or investigational, which we counter by highlighting CMS approval and past payments. Medical necessity is another reason, and we rely on physician documentation to demonstrate necessity. Our Chief Medical Officer engages with medical directors to advocate for coverage. (Paul Gudonis, CEO)

Q: How should we think about the international market in 2025? A: Germany has performed well, with many statutory health insurance plans covering MyoPro. We have over 100 O&P clinical partners in Germany, and we expect continued growth in this market. We are focusing on expanding marketing and clinical staff in Germany, as opening new international markets requires significant investment. (Paul Gudonis, CEO)

Q: Are there any risks to your 70%-71% gross margin with possible tariffs, and will tariffs impact your sales into Germany? A: We don't see any impact from tariffs on our current supply chain, as most components are sourced from the US. There are no tariffs affecting our exports to Germany currently, but potential tariffs could raise prices for O&P providers there. (Paul Gudonis, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.