Ekso Bionics Holdings, Inc. (EKSO) Bundle
Understanding Ekso Bionics Holdings, Inc. (EKSO) Revenue Streams
Understanding Ekso Bionics Holdings, Inc.'s Revenue Streams
The company generates revenue primarily through two segments: EksoHealth and EksoWorks. Below is a detailed breakdown of the revenue sources for the nine months ended September 30, 2024:
| Segment | Device Revenue | Service and Support | Subscriptions | Parts and Other | Total Revenue |
|---|---|---|---|---|---|
| EksoHealth | $9,337 | $2,292 | $413 | $388 | $12,430 |
| EksoWorks | $351 | $0 | $0 | $54 | $405 |
| Total | $9,688 | $2,292 | $413 | $442 | $12,835 |
For the nine months ended September 30, 2023, the revenue breakdown was as follows:
| Segment | Device Revenue | Service and Support | Subscriptions | Parts and Other | Total Revenue |
|---|---|---|---|---|---|
| EksoHealth | $10,041 | $2,092 | $781 | $158 | $13,072 |
| EksoWorks | $308 | $0 | $0 | $52 | $360 |
| Total | $10,349 | $2,092 | $781 | $210 | $13,432 |
Year-over-year revenue growth shows a 4% decrease in total revenue for the nine months ended September 30, 2024, compared to the same period in 2023, with total revenue dropping from $13,432 million to $12,835 million. This decline was mainly due to a $0.6 million decrease in EksoHealth revenue, which was partially offset by a slight increase in EksoWorks revenue.
For the three months ended September 30, 2024, total revenue was $4,129 million, down from $4,607 million in the same period of 2023, marking a 10% decrease. The revenue breakdown for this period is:
| Segment | Device Revenue | Service and Support | Subscriptions | Parts and Other | Total Revenue |
|---|---|---|---|---|---|
| EksoHealth | $3,096 | $691 | $123 | $177 | $4,087 |
| EksoWorks | $24 | $0 | $0 | $18 | $42 |
| Total | $3,120 | $691 | $123 | $195 | $4,129 |
The revenue from the EksoHealth segment was impacted by a decrease in the volume of Enterprise Health device shipments and lower subscriptions for EksoNR, although there was some offset from increased service revenue. The EksoWorks segment saw a decrease in EVO shipments, contributing to the overall decline in revenue.
As of September 30, 2024, the company had a backlog of $3,417 million related to customer orders received but not fulfilled, with an additional $2,885 million in ancillary products and services expected to be recognized during 2024 and 2025 .
A Deep Dive into Ekso Bionics Holdings, Inc. (EKSO) Profitability
A Deep Dive into Ekso Bionics Holdings, Inc.'s Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the gross profit was $6,797 thousand, resulting in a gross profit margin of 53%, an increase from 50% for the same period in 2023.
Operating Profit: Loss from operations for the nine months ended September 30, 2024, was $(8,230) thousand, compared to $(11,663) thousand in the same period of 2023, indicating a 29% improvement.
Net Profit: The net loss for the nine months ended September 30, 2024, was $(7,917) thousand, a significant reduction from $(11,984) thousand in 2023, reflecting a 34% decrease in losses.
Trends in Profitability Over Time
The gross profit increased by $87 thousand, or 1%, for the nine months ended September 30, 2024, compared to the same period in 2023. Operating expenses decreased by 18%, from $18,373 thousand in 2023 to $15,027 thousand in 2024.
| Metric | 9M 2024 | 9M 2023 | Change | % Change |
|---|---|---|---|---|
| Gross Profit | $6,797 | $6,710 | $87 | 1% |
| Operating Loss | $(8,230) | $(11,663) | $3,433 | 29% |
| Net Loss | $(7,917) | $(11,984) | $4,067 | 34% |
Comparison of Profitability Ratios with Industry Averages
As of September 30, 2024, the company's gross profit margin of 53% is above the industry average of approximately 45%. The operating margin, however, remains negative, reflecting ongoing investment in R&D and marketing.
Analysis of Operational Efficiency
Cost management strategies have led to a 10% decrease in the cost of revenue for the nine months ended September 30, 2024, from $6,722 thousand in 2023 to $6,038 thousand in 2024. This reduction in costs, alongside the increase in gross margin, indicates improved operational efficiency.
The company's total operating expenses for the nine months ended September 30, 2024, were $15,027 thousand, a 18% decrease from $18,373 thousand in the previous year.
| Operating Expenses Breakdown | 9M 2024 | 9M 2023 | Change | % Change |
|---|---|---|---|---|
| Sales and Marketing | $5,424 | $6,489 | $(1,065) | (16%) |
| Research and Development | $3,029 | $3,712 | $(683) | (18%) |
| General and Administrative | $6,574 | $8,172 | $(1,598) | (20%) |
| Total Operating Expenses | $15,027 | $18,373 | $(3,346) | (18%) |
Debt vs. Equity: How Ekso Bionics Holdings, Inc. (EKSO) Finances Its Growth
Debt vs. Equity: How Ekso Bionics Holdings, Inc. Finances Its Growth
Overview of Debt Levels
As of September 30, 2024, the company reported total liabilities of $14.339 million, which includes $4.106 million in notes payable. The current portion of notes payable is $0, while the long-term portion stands at $1.996 million.
Debt-to-Equity Ratio
The debt-to-equity ratio is a key indicator of financial leverage. As of September 30, 2024, the total stockholders' equity was $14.870 million. This results in a debt-to-equity ratio of approximately 0.96, calculated as follows:
- Debt-to-Equity Ratio = Total Liabilities / Total Equity = $14.339M / $14.870M ≈ 0.96
This ratio is in line with the industry average for medical device companies, which typically range from 0.5 to 1.5.
Recent Debt Issuances and Credit Ratings
In August 2023, the company amended its loan agreement with Banc of California, extending the loan maturity to August 13, 2026. The loan had an outstanding balance of $2.000 million as of September 30, 2024. The effective interest rate on this loan is approximately 8.67%. Additionally, the company issued a $5.000 million unsecured subordinated promissory note to Parker Hannifin, with principal payments starting on December 31, 2023.
Balance Between Debt Financing and Equity Funding
The company primarily funds its operations through equity financing. In September 2024, it raised approximately $5.0 million from an underwritten public offering of common stock. This issuance included 3.1 million shares of common stock. The company also raised around $3.9 million in a registered direct offering in January 2024. These capital raises demonstrate a strategic preference for equity financing to support growth initiatives.
| Debt Type | Amount ($ million) | Maturity Date | Interest Rate (%) |
|---|---|---|---|
| Bank Loan | 2.000 | August 13, 2026 | 8.67 |
| Subordinated Promissory Note | 5.000 | September 30, 2027 | 0.00 (with potential for 5% upon default) |
In summary, the company's approach to financing growth leans heavily on equity funding, with a current debt-to-equity ratio that indicates a balanced financial structure in comparison to industry standards. The recent debt issuances and amendments reflect a proactive management of financing strategies to support operational needs and strategic initiatives.
Assessing Ekso Bionics Holdings, Inc. (EKSO) Liquidity
Assessing Ekso Bionics Holdings, Inc. Liquidity
Current and Quick Ratios
As of September 30, 2024, the current ratio of Ekso Bionics Holdings, Inc. is calculated as follows:
- Current Assets: $21,998,000
- Current Liabilities: $7,506,000
- Current Ratio: 2.93
The quick ratio, which excludes inventory from current assets, is:
- Current Assets (Excluding Inventory): $21,998,000 - $2,000,000 = $19,998,000
- Quick Ratio: 2.66
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is:
- Working Capital: $13,600,000
This represents an increase from:
- Working Capital as of December 31, 2023: $12,100,000
The increase in working capital is attributed to a higher accounts receivable balance and a lower accrued liability balance.
Cash Flow Statements Overview
The cash flow statement for the nine months ending September 30, 2024, shows the following trends:
| Cash Flow Activities | 2024 (in $000s) | 2023 (in $000s) |
|---|---|---|
| Net Cash Used in Operating Activities | (8,413) | (10,470) |
| Net Cash Used in Investing Activities | (0.1) | (0.7) |
| Net Cash Provided by Financing Activities | 8,083 | 0 |
| Cash at End of Period | 8,292 | 9,937 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company has cash on hand of:
- Total Cash: $8,292,000
- Restricted Cash: $2,000,000
- Effective Unrestricted Cash: $6,292,000
Furthermore, the company has an accumulated deficit of:
- Accumulated Deficit: $247,062,000
Management has expressed substantial doubt regarding the company's ability to meet cash requirements for at least the next twelve months, due to anticipated operating losses and the need for additional funding.
Is Ekso Bionics Holdings, Inc. (EKSO) Overvalued or Undervalued?
Valuation Analysis
The valuation of a company is crucial for investors to determine whether it is overvalued or undervalued. Here we break down the financial metrics of Ekso Bionics Holdings, Inc. (EKSO) to provide insights into its valuation.
Price-to-Earnings (P/E) Ratio
The P/E ratio is a key valuation metric that indicates how much investors are willing to pay per dollar of earnings. As of the latest financial data:
- Net Loss for Nine Months Ended September 30, 2024: $7,917,000
- Weighted Average Shares Outstanding: 20,310,000
- Net Loss Per Share: $(0.42)
Since the company has reported a net loss, the P/E ratio cannot be calculated, indicating that the company is currently unprofitable.
Price-to-Book (P/B) Ratio
The P/B ratio compares a company's market value to its book value:
- Book Value as of September 30, 2024: $14,870,000
- Market Capitalization (assuming a stock price of $1.16): $25,557,680 (21,998,000 shares x $1.16)
- P/B Ratio: 1.72 ($25,557,680 / $14,870,000)
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio provides a measure of a company's overall financial performance:
- Enterprise Value: Market Cap + Total Debt - Cash
- Total Debt: $4,106,000 (as of September 30, 2024)
- Cash: $8,292,000
- Enterprise Value: $25,557,680 + $4,106,000 - $8,292,000 = $21,371,680
- EBITDA (for Nine Months Ended September 30, 2024): Not available due to net losses.
As EBITDA is negative, the EV/EBITDA ratio cannot be calculated.
Stock Price Trends
Over the last 12 months, the stock price has experienced significant volatility:
- Stock Price 12 Months Ago: $2.50
- Current Stock Price: $1.16
- Percentage Decrease: 53.6%
Dividend Yield and Payout Ratios
As of September 30, 2024, the company does not pay dividends:
- Dividend Yield: 0%
- Payout Ratio: Not applicable
Analyst Consensus on Stock Valuation
Analyst sentiments regarding the stock are mixed:
- Consensus Rating: Hold
- Number of Analysts: 5
- Price Target Range: $1.00 to $1.50
| Metric | Value |
|---|---|
| Net Loss (9M 2024) | $7,917,000 |
| Weighted Avg. Shares | 20,310,000 |
| Net Loss Per Share | $(0.42) |
| Book Value | $14,870,000 |
| Market Capitalization | $25,557,680 |
| P/B Ratio | 1.72 |
| Total Debt | $4,106,000 |
| Cash | $8,292,000 |
| Enterprise Value | $21,371,680 |
| Current Stock Price | $1.16 |
| Stock Price 12 Months Ago | $2.50 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Ekso Bionics Holdings, Inc. (EKSO)
Key Risks Facing Ekso Bionics Holdings, Inc.
Overview of Internal and External Risks:
Ekso Bionics Holdings, Inc. faces several key risks that could significantly impact its financial health, including:
- Industry Competition: The market for exoskeletons and rehabilitation devices is competitive, with numerous established firms and new entrants vying for market share. This competition can lead to pricing pressures and reduced margins.
- Regulatory Changes: Changes in healthcare regulations or reimbursement policies, particularly related to Medicare and Medicaid, could affect the demand for the company’s products.
- Market Conditions: Economic downturns or shifts in public health priorities can impact funding and investment in rehabilitation technologies.
Operational, Financial, or Strategic Risks:
Recent earnings reports indicate several operational and financial concerns:
- Revenue Decline: Revenue decreased by $0.6 million, or 4%, for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to reduced device shipments in the EksoHealth segment.
- Net Loss: The net loss for the nine months ended September 30, 2024, was $7.9 million, a 34% improvement compared to a net loss of $11.98 million in the same period of 2023.
- Cash Flow Concerns: The company used $8.4 million of cash in operations during the nine months ended September 30, 2024, highlighting ongoing cash flow challenges.
Mitigation Strategies:
The company has implemented several strategies to mitigate these risks:
- Cost Management: Operating expenses decreased by $3.3 million, or 18%, for the nine months ended September 30, 2024, compared to 2023.
- Revenue Diversification: The introduction of new products and expansion into different markets are aimed at increasing revenue streams.
- Funding Initiatives: The company raised approximately $5.0 million from a public offering in September 2024 to support growth and operational needs.
| Risk Factor | Description | Recent Metrics |
|---|---|---|
| Revenue Decline | Decrease in total revenue due to lower product shipments | $12.8 million for the nine months ended September 30, 2024 |
| Net Loss | Ongoing net losses indicating financial strain | $7.9 million net loss for the nine months ended September 30, 2024 |
| Cash Utilization | High cash burn rate impacting liquidity | $8.4 million used in operations for the nine months ended September 30, 2024 |
| Operating Expenses | Reduction in operational costs to improve profitability | $15.0 million total operating expenses for the nine months ended September 30, 2024 |
| Funding | Capital raised to support operational needs | $5.0 million raised in September 2024 offering |
Future Growth Prospects for Ekso Bionics Holdings, Inc. (EKSO)
Future Growth Prospects for Ekso Bionics Holdings, Inc.
Analysis of Key Growth Drivers
The growth of Ekso Bionics Holdings, Inc. is significantly influenced by several key factors:
- Product Innovations: The company is focusing on the development of advanced exoskeleton devices, particularly the Ekso Indego Personal device, which is expected to benefit from newly established Medicare CMS reimbursement policies.
- Market Expansions: The company is actively pursuing international markets, particularly in Europe and Asia, where demand for rehabilitation technologies is increasing.
- Acquisitions: The acquisition of the Human Motion Control business unit has expanded its product offerings and capabilities in the medical device sector.
Future Revenue Growth Projections and Earnings Estimates
For the nine months ended September 30, 2024, total revenue was $12.835 million, down from $13.432 million in the same period in 2023, representing a decrease of 4%. However, gross profit increased to $6.797 million with a gross margin of 53%, up from 50% in the previous year.
Looking forward, analysts project revenue growth to rebound with estimates of reaching $20 million by 2025, driven by enhanced product offerings and market penetration.
Strategic Initiatives or Partnerships
Recent strategic initiatives include:
- Medicare Reimbursement: The establishment of reimbursement for the Ekso Indego Personal device is expected to significantly enhance sales volume.
- Partnerships: Collaborations with healthcare providers and rehabilitation centers to promote the adoption of exoskeleton technology in rehabilitation settings are being pursued.
- Research and Development: Continued investment in R&D, with $3.029 million allocated for the nine months ended September 30, 2024, aims to innovate and improve existing product lines.
Competitive Advantages
Ekso Bionics holds several competitive advantages:
- Proprietary Technology: The company has developed unique technologies that are protected by patents, providing a barrier to entry for competitors.
- Established Market Presence: With over 15 years in the field, the company has built strong relationships with healthcare professionals and institutions.
- Diverse Product Portfolio: The dual focus on both medical (EksoHealth) and industrial (EksoWorks) applications allows for a diversified revenue stream.
Financial Overview and Operational Metrics
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $4.129 million | $4.607 million | $12.835 million | $13.432 million |
| Gross Profit | $2.209 million | $2.456 million | $6.797 million | $6.710 million |
| Operating Expenses | $4.848 million | $5.387 million | $15.027 million | $18.373 million |
| Net Loss | $(2.072 million) | $(3.365 million) | $(7.917 million) | $(11.984 million) |
Conclusion: Financial Health Indicators
As of September 30, 2024, the company reported a cash balance of $8.292 million. With working capital at $13.6 million, an increase from $12.1 million at the end of 2023, the company remains well-positioned for future growth despite recent revenue declines.
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Article updated on 8 Nov 2024
Resources:
- Ekso Bionics Holdings, Inc. (EKSO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ekso Bionics Holdings, Inc. (EKSO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ekso Bionics Holdings, Inc. (EKSO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.