Ekso Bionics Holdings, Inc.

Greetings and welcome to ESCO Bionics first quarter 2023 financials results call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt Steinberg, FinPartners. Thank you, sir. You may begin.

Thank you, Operator, and thank you all for participating in today's call. Joining me from ExoBionics are Scott Davis, Chief Executive Officer, Jerome Wong, Chief Financial Officer, and Jason Jones, Chief Operating Officer. Today, ExoBionics released financial results for the quarter ended March 31, 2023. A copy of the press release is available on the company's website. Before we begin, I'd 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 made during this call are not statements of historical fact, should be deemed to be forward-looking statements. All forward-looking statements, including statements regarding our business strategy, future financial or operating 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. EXO disclaims any obligation except as required by law to update or revise any financial or operational projections, its 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 27th, 2023. I will now turn the call over to ExoBionics Chief Executive Officer, Scott Davis.

Thank you, Matt, and thank you to everyone for joining us today. We're off to an excellent start in 2023. In the first quarter, we achieved record quarterly revenues of $4.1 million, up 61% compared to this time last year. Our growth levels were the result of continued success of our commercial strategy, as well as contributions from our recently acquired Indigo product line. We believe we have built a solid foundation to bring our game-changing exoskeleton devices to rehabilitation patients in need, from post-acute care centers to outpatient facilities and into home and community settings. Our team is excited by our expanded focus that enables us to bring our advanced treatment solutions to more patients across the continuum of care. We look forward to building on this momentum. Now I will share updates on our business performance, starting with XO Health. During the first quarter, XO Health delivered $4 million of revenue as we continued to gain traction with network operators, or IDNs. As part of our strategy, we secured several multi-unit orders with large network operators. In total, we booked 23 XO Health devices in the quarter, including the second largest multi-unit XONR order ever with a large network operator. As illustrated by our record quarterly revenues, we are generating strong demand and healthy order flow, which is also adding to our growing pipeline. Our cumulative conversion and renewal rate remains strong at 81%, with approximately $1.4 million of contracted unrecognized revenue under our subscription model. Overall, this was a strong quarter for bookings and a testament to the inroads we have made with our commercial strategy. Internationally, EMEA and APAC have been important growth regions, with EMEA up 67% compared to first quarter last year. Increased proficiencies in our sales process are driving more opportunities, and the success we've seen internationally is a positive reflection of the investments that XO has made to support growth in these regions throughout prior quarters. We are also pleased to have booked our first ExoIndigo personal device in Europe during the quarter. Going forward, we will remain diligent in our strategy to expand our distributor network and generate robust demand pipelines in both the domestic and international fronts. Turning to an update on our recently acquired Human Motion and Control, or HMC, business unit, the integration continues to progress smoothly. And with early contributions to our top line in the first quarter, we anticipate that ExoIndigo Personal and therapy will be key to our growth moving forward. Importantly, this acquisition expanded our product offerings across the continuum of care to home and community use markets, whereby we can now reach more patients in need across the larger market opportunity. Furthermore, we expanded our product development pipeline to the orthotic and prosthetic, or O&P, industry, and added strategic relationships with key commercial and research partners, including Vanderbilt University. We will provide more updates on our progress here in the coming quarters. Earlier this month, we reestablished our partnership with Soldier Strong, a charitable organization whose mission it is to provide revolutionary technology and innovative advancements to better the lives of our veterans and their families. It's our understanding that their purchase and donation of an Exo-Indigo device to the Charlie Norwood Department of Veteran Affairs Medical Center in Augusta, Georgia is the 30th robotic exoskeleton that Soldier Strong has donated to a VA medical center in the last 10 years of operations. We are honored to be joining forces with Soldier Strong and look forward to bringing much needed rehabilitation and support to our valued veterans through our innovative devices. Now, turning to an update on the progress with our industrial product line, ExoWorks. During the first quarter, we continued to transition our focus towards volume purchases from large customers. We are seeing interest from marquee customers across the construction, manufacturing, green energy, automotive, and aerospace verticals, and believe that this pipeline of potential customers offers a path at taking share from the large addressable market opportunity. We plan on sharing updates from ExoWorks in the future as large orders are booked. To recap, our team is excelling at raising customer awareness and driving demand from our ExoNR and newly acquired ExoIndigo devices, as illustrated by our record revenue performance. We're particularly pleased with the success of our commercial strategy in securing multi-unit orders with large network operators, while also introducing the new Indigo product line to patients in need. Looking ahead to the rest of 2023 and beyond, we remain focused on driving sustainable growth and demand for our products across the continuum of care. At this time, I'd like to turn the call to Jason to discuss our operational developments for the quarter.