Ekso Bionics Holdings, Inc. (EKSO) experienced an increase of 5.75% in the premarket after the company announces third quarter 2021 results. However, the last trading session closed at $4 with an increase of 1.01%.
Third Quarter 2021 Results
EKSO reported third-quarter 2021 results on 2nd November 2021. For the quarter ending September 30, 2021, revenue was $3.0 million, more than $2.9 million in the previous year. Moreover, EksoHealth’s revenue was over $2.7 million in the third quarter of 2021. Sales of EVO vests accounted for the majority of the revenue increase. The gross profit came out to be $1.8 million, the same as in the previous year. However, gross margin was at 59 percent, compared to 63 percent in the same quarter of 2020 yet an increase in EKSO service components and personnel expenses, as well as changes in product mix, contributed to the overall decline in gross margin.
In addition, sales and marketing costs were $1.7 million, down $0.1 million from the same time in 2020. Reduced general marketing activity was mostly to blame for the drop. Not only this but the research and development expenses were $0.6 million owing to higher staff pay costs. Last but not least, increased staff headcount and pay expenditure drove the rise in general and administrative costs, which was largely offset by lower outside legal expenses.
Second Quarter 2021 Results
EKSO reported second-quarter 2021 results on 29th July 2021. For the quarter ending June 30, 2021, revenue was $2.2 million, down from $2.3 million in the previous year. EKSO revenue was over $1.9 million while EksoWorks sales were around $0.3 million. The drop in revenue was mostly attributable to the Company’s strategy change to subscription-based client acquisition. Moreover, revenues from subscriptions are postponed and recognized during the life of the contract, which is usually 12 months. Furthermore, gross profit was $1.3 million, up 3% from the same time in 2020. Gross margin also improved which is mostly attributable to higher EksoWorks margins, which were driven by lower EVO vest costs compared to the previous generation, and a reduction in collaborative partnerships, which have lower gross margins.
In addition, sales and marketing costs totaled $1.8 million, up to $0.1 million over the same time in 2020. Increased general marketing initiatives were mostly responsible for the rise. The research and development costs came out to be $0.7 million. This is owed to new product development initiatives. Lastly, the general and administrative costs, more than $0.2 million over the same period in 2020.