In This Article:
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Revenue: $6.1 million in Q3 2024, up 39% from $4.4 million in Q3 2023.
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ReWalk System Revenue: $2.5 million, up 73% from the prior year.
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AlterG Products Revenue: $3.6 million, increased by $0.6 million from Q3 2023.
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Gross Profit: $2.2 million or 36.2% of revenue in Q3 2024.
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Adjusted Gross Profit: $2.6 million or 42.5% of revenue.
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GAAP Operating Expenses: $5.4 million in Q3 2024, down from $8.8 million in Q3 2023.
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Adjusted Operating Expenses: $6.7 million in Q3 2024, compared to $6.9 million in Q3 2023.
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GAAP Operating Loss: $3.2 million in Q3 2024, compared to $7.9 million in Q3 2023.
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Adjusted Operating Loss: $4.1 million in Q3 2024, compared to $4.9 million in Q3 2023.
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Cash and Equivalents: $10.7 million at the end of Q3 2024, with no debt.
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Full-Year Revenue Expectation: Revised to $25 million to $26 million for 2024.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lifeward Ltd (NASDAQ:LFWD) reported a 39% increase in revenue over the prior year quarter, indicating strong business growth.
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The company successfully expanded its Medicare coverage, now reaching over 17,000 individuals with potential access to an additional 25,000.
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Lifeward's ReWalk Exoskeleton technology is gaining traction, with 20 more individuals regaining ambulation in the quarter.
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The company has streamlined operations, resulting in the lowest adjusted operating expenses in the past five quarters.
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Lifeward ended the quarter with $10.7 million in cash and no debt, providing a solid financial foundation for future growth.
Negative Points
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The AlterG business experienced slower-than-expected growth due to delays in capital expenditures and integration challenges.
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ReWalk sales were adversely affected by delays in Medicare case processing, impacting expected revenue.
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The gross margin percentage declined due to lower absorption of factory overhead costs and higher labor costs.
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The company revised its full-year revenue expectations downward to a range of $25 million to $26 million for 2024.
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The process for claims review and approval by Medicare is time-consuming, affecting the timing of payments and cash flow.
Q & A Highlights
Q: How comfortable are you with the new guidance, and are there any issues with filing for CMS reimbursement? A: Larry Jasinski, CEO: We are comfortable with the guidance. The timing for CMS processing is longer than expected, averaging about 150 days for 2024 claims, which has impacted our timing this year. Mike Lawless, CFO, added that the documentation and validation process is more complex than traditional claims, requiring back-and-forth communication, which can delay processing.