Myomo (NYSE: MYO) reported Q3 EPS of ($0.16), in-line with the analyst estimate of ($0.16). Revenue for the quarter came in at $606.62 thousand versus the consensus estimate of $1.33 million.

“In the third quarter, Myomo’s growth metrics accelerated,” said Paul R. Gudonis, Chairman and CEO of Myomo. “During the quarter, we increased our overall reimbursement pipeline by 17%, driven by a record number of pipeline additions and we also generated a record number of insurance authorizations in the quarter, which helped drive a 22% increase in our backlog.”

Backlog, which represents insurance authorizations received, but not converted to revenue, increased to 61 units at the end of the third quarter, compared to 50 units at the end of the second quarter. Growth in backlog was driven by growth in insurance authorizations received during the quarter as well as timing differences in receiving payments from insurance companies, which resulted in a number of units in backlog from last quarter remaining in backlog at the end of the third quarter.

“The timing in receiving payments from insurance companies directly affected revenue in the third quarter,” continued Mr. Gudonis. “We’ve already undertaken a number of actions to accelerate the cycle time from lead generation to delivery and payment, and we remain confident that our growing authorization backlog will convert into revenue in the coming months. The debt financing that we recently closed will support us as we work to reach the milestones that we project achieving over the next 3-6 months. We expect to end 2019 with a strong outlook for 2020 as we continue to expand market penetration, awareness, the size of our pipeline and the offerings of our life-changing wearable robotic products.”

Guidance

“We’ve nearly achieved our full year 2018 revenue during the first nine months of 2019,” added Mr. Gudonis. “Based on our visibility into fourth quarter orders and revenue, we expect our revenue to resume its growth trajectory in the fourth quarter, resulting in significant revenue growth for all of 2019 compared to 2018.”

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