Myomo (NYSE: MYO) reported Q4 EPS of ($0.37), $0.12 better than the analyst estimate of ($0.49). Revenue for the quarter came in at $3.8 million versus the consensus estimate of $3.02 million.

• Revenue was up 149% to a record $3.8 million
• 101 units were delivered to patients including 97 recognized as revenue, a 126% increase
• Revenue from the direct billing channel represented 77% of total revenue, up from 68% of revenue in the third quarter of 2020
• Gross margin was 73%, up 100 basis points from 72% in the fourth quarter of 2019 and up from 56% in the third quarter of 2020
• The reimbursement pipeline had 768 MyoPro units as of December 31, 2020, an increase of 29% compared to December 31, 2019, with 209 candidates entering the pipeline during the fourth quarter.
• The MyoPro direct billing pipeline now represents more than 80% of reimbursement pipeline units, and approximately 90% of those entering the domestic pipeline during the fourth quarter are direct bill candidates
• Backlog, which represents insurance authorizations received but not yet converted to revenue, was 131 units as of December 31, 2020; 13 units, representing $0.4 million of revenue, were pulled into the fourth quarter from 2021 and recorded as revenue from insurers where the Company determined that sufficient evidence of collectability existed to record revenues for these direct billing patients at delivery
• The Company received insurance authorizations and orders for 86 patients to receive a MyoPro during the fourth quarter

Management Commentary

“Fourth quarter revenue was not only a record, it also was equivalent to our full year 2019 revenue. This is a testament to the adaptability and execution of our team in light of the challenges presented by the COVID-19 pandemic,” stated Paul R. Gudonis, Myomo’s chairman and chief executive officer. “The strategic shift to direct billing implemented in late 2019 is supporting both revenue growth and margin improvement.”

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