Myomo Inc. Reports Record Growth Amid Challenges

Myomo Inc ((MYO)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call for Myomo Inc. was marked by a strong positive sentiment, underscored by impressive revenue growth, successful market expansion, and improved financial metrics. However, the company acknowledged challenges with Medicare Advantage and rising operating expenses as areas requiring attention.

Record-Breaking Revenue and Growth

Myomo Inc. reported record-breaking revenues of $12.1 million for Q4 and $32.6 million for the full year, more than doubling the quarterly revenue compared to Q4 ’23. This represents a 69% increase over the previous year, highlighting the company’s robust growth trajectory.

Increased Market Access

A significant development for Myomo was Medicare’s decision to cover the MyoPro powered arm brace for medically-qualified patients. This change has opened access to approximately 50% of the market that was previously inaccessible, marking a pivotal expansion in market reach.

Strong Pipeline and Orders

The company added 657 medically-qualified candidates to its patient pipeline, concluding the year with nearly 1,400 patients in the process of obtaining MyoPro. This strong pipeline underscores the growing demand for Myomo’s products.

Improved Operating Efficiency

For the first time in its history, Myomo achieved positive adjusted EBITDA, reflecting a significant improvement in operating efficiency compared to the previous year.

Successful Capital Raise and Expansion

Myomo successfully completed a capital raise to fund its growth plans for 2025 and beyond. Additionally, the company increased its manufacturing capacity to 120 units per month, positioning itself for future demand.

Challenges with Medicare Advantage

Despite the positive developments, Myomo continues to face challenges with first-time authorizations and denials from Medicare Advantage, often necessitating escalation to administrative law judge hearings.

Reimbursement Delays

Reimbursement delays with Medicare Advantage and other commercial payers have persisted over the past three to six months, impacting revenue cycles and posing a challenge for the company.

Higher Operating Expenses

Operating expenses for Q4 rose to $8.9 million, a 60% increase from the previous year. This rise was driven by higher headcount, increased R&D expenses, and incentive compensation.

Forward-Looking Guidance

Looking ahead, Myomo aims to achieve revenues between $50 million and $53 million in 2025, with a focus on second-half growth. The company plans to double its advertising budget to over $6 million, hire additional staff, and expand its international presence, particularly in Germany. Myomo’s strategic focus includes increasing O&P-driven revenue and expanding market access through orthotics and prosthetics clinics.

In conclusion, Myomo Inc.’s earnings call reflected a positive outlook, with record revenues and strategic expansions paving the way for future growth. While challenges with Medicare Advantage and rising operating expenses persist, the company’s forward-looking guidance suggests a promising trajectory for 2025.