Ekso Bionics Holdings, Inc.

Hello and welcome to the ExoBionics first quarter 2021 financial results conference call and webcast. At this time, all participants are in listen-only mode. Question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Matt Steinberg with Lazar Finn Partners. Matt, please go ahead.

Thank you, operator. And thank you all for participating in today's call. Joining me from Exobionics are Jack Purek, President and Chief Executive Officer, Jack Len, Chief Financial Officer, and Bill Shaw, Chief Commercial Officer. Earlier today, Exobionics released financial results for the quarter ended March 31st, 2021. A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should not be deemed to be forward-looking statements. All forward-looking statements, including our future financial or operational expectations, or our expectations of the regulatory landscape governing Our products and operations are based upon management's current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our businesses, Please see our filings with the Securities and Exchange Commission. XO disclaims any intention or obligation, except as required by law, to update or revise any financial or operational projections or regulatory outlook or other forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the broadcast today, April 29th, I will now turn the call over to Jack Pierak.

Thanks, Matt, and thanks, everybody, for joining us today. We are off to an encouraging start in 2021. During the quarter, our primary objectives were geared towards raising customer engagement levels, expanding physician awareness of our innovative exoskeleton devices in the medical community, and sharing with them our new subscription access model. I am pleased that we made great strides across each of these goals, and in doing so, increased the number of multi-unit orders with top network operators globally. During the quarter, we recorded 16 NR bookings, including seven units of our new subscription offering, both up on a sequential basis. As we highlighted on previous calls, we transitioned our selling strategy to a subscription model to facilitate faster XO NR adoption. Although this transition has had an effect on near-term revenues due to the nature of revenue generation, we're extremely pleased with the early results of this model. It has helped us drive faster adoption and earlier success with customers than we received in the past. As Bill will highlight in a moment, the subscription model also led to a higher number of units per order. For the first quarter, we recorded revenue of $1.9 million, up 30% from the first quarter a year ago. We achieved this while our revenues continued to be impacted by the effects of the COVID-19 pandemic. However, we are seeing business conditions start to normalize as COVID cases and hospitalizations continue to decrease. On the industrial side, we are pleased with continuing positive customer feedback of our Evo upper body exoskeleton devices. We have a number of customers actively trialing EVO across a variety of diverse industry verticals and believe we can win opportunities in the growing and potentially very large industrial market. Financially, we achieved record gross margins and continue to manage our expenses prudently, underscoring our lean and efficient operations. Looking ahead, we are well positioned to invest in our growth, supported by our strong cash position from our February financing. Now I would like to turn the call over to Bill for an update on our medical segment and global commercialization strategy.