Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Q3 2018 Earnings Conference Call Transcript
Nov 07, 2018 • 04:30 pm ET
Greetings, and welcome to Ekso Bionics' Third Quarter 2018 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, David Carey of Lazar Partners. Please go ahead, sir.
Thank you, Operator, and thank you all for participating in today's call. Joining me from Ekso Bionics are Jack Peurach, President and CEO; and Jack Glenn, CFO. Early today, Ekso Bionics released financial results for the quarter ended September 30, 2018. A copy of the press release is available on the company's website.
(Forward-Looking Cautionary Statements)
I'll now turn the call over to Jack Peurach. Jack?
Thanks, David, and thanks to everyone for joining today's call. I'm pleased to report that we had our best third quarter in the history of our company and our second strongest quarter ever from a revenue perspective. This underscores the growing adoption of our innovative products and reflects growing awareness of the benefits that our EksoGT and EksoWorks offerings provide our rehabilitation and industrial customers. We are also very proud of our year-over-year sales growth.
The key takeaway from our third quarter 2018 financial performance is that our commercial strategy continues to deliver results. Notably, our US sales pipeline has more than doubled since the first quarter of 2018. Total revenue in the third quarter was up by 60% from the prior-year period, with revenue from our rehabilitation business growing by more than 30%. Additionally, our sales productivity, as measured by units per salesperson, has also increased by almost 50% in the last three quarters.
Even more importantly, we are seeing an increase of interest from centers specifically focused on neurosciences and neurological rehabilitation, many of whom operate multiple facilities across an integrated network. We believe this demand is driven by an increasing understanding of the clinical and economic benefits our customers receive from the EksoGT, as they are able to treat more severe patients through a broad continuum of care. Approximately one-third of our US customers have multiple GT systems, and we currently have several multiunit sales in the pipeline. We believe this is a solid indication that our customers are embracing the EksoGT and making it a core part of their rehabilitation programs.
As we increase our sales productivity, we are also gaining significant benefits from our rental program, which is helping drive customer adoption of our products. Our rental offerings provide customers with a bridge to capital budgeted purchase, giving them more flexible access to our products outside of annual budgeting processes and constraints. Although the rental program is still in its early days, conversion rates from a rental to a sale are approaching 80%. We believe this high conversion rate is driven by our customers' commitment to incorporate EksoGT into rehabilitation programs supported by its clinical and economic benefits. The potential value of our current rental fleet, assuming that all rental