Movano (MOVE) 14 Aug 242024 Q2 Earnings call transcript

Greetings, and welcome to Movano Health Q2 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Jay Cogan, Chief Financial Officer. Mr. you, Thank begin. may Cogan, you

company Thanks, operator. us open you joining recent progress and call of second XXXX, and afternoon, Movano Health's everyone, in the the today. about will prepared thank during CEO, the with quarter for weeks. remarks Good made John today's Mastrototaro,

Then the some current Our by I'll then John, provide the open company's operating upcoming and remarks we'll on results quarterly Tyla position. for CMO, will DXC call company's financial and provide on Bucher, Q&A. plans again the highlights followed

detailing be John, Tyla Officer, results. by and President Officer release Stacy Jay second Technology and issued afternoon and Soule; Michael will of quarter Commercial joined Chief XXXX Health our Strategy, and news Salvi. Movano Leabman, financial Chief Product Vice Founder, a Michael this

remind Movano the Exchange specifically during XX-K. obligation I'd statements expectations herein expectations. to These Securities in with these on Q&A based company's revisions be such and filings section make everyone Commission, the to begin, securities and Health's risks today's statements Risk circumstances. results or required forward-looking such actual events, changes conditions Except contained Forms Health and XX-Q and are in company by current regards forward-looking otherwise disclaims reflect and materially any Factors the as elsewhere federal of forward-looking Movano and the with are we to to like different may laws, remarks those update to or detailed statements. will the during from prepared that inherent make Before risks subject uncertainties, call and statements uncertainties session, Whether in to

John to our I'll that, call turn With Mastrototaro. CEO, the over

continuing starting to to and use earnings launch we working make at Ring Since follows: progress we taking key the Evie initiatives clearance again BXB expansion FDA Med to our secure continuing RF pressure for partners; capital XX, as XXX(k) wearable our iteration last the preparing the first opportunities of efficient blood to most our commercial health everyone. preparing September a clinical the prioritize May, Evie business care the of infusion proprietary incorporating upcoming our delivering been in device orders solution. of while for glucose direct-to-consumer lastly, and for recent afternoon, on with with trials using work Good recent reported Ring have our and diligently

opportunities. be with in judicious We our our capital out to methodical building continue market approach and our direct-to-consumer and to business-to-business

in to the call the we're working DXC clearance. orders and our BXB with I In to turn then and will the plans launch preparations business secure closely including our provide FDA for a our CMO, for shipping Tyla to again and XXX(k) Bucher we'll of product update FDA an Evie over the Evie September. of taking progress on to Med for launch the plan Med, begin with preparation discuss

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logging and recall offer activity pulse the not mood, device metrics designed but symptoms. Ring also only its and medical Evie with functionality energy health wellness to of related to provide oximetry numerous You'll is Med feature sleep,

unlock. issue with is opportunity steadfast We towards Movano review Along FDA's XXX(k) draft move commitment Subsequent on wellness the the late filing the resolving advisers, with aspects review could with in as to clarifications information response, noted team XX promptly our our remain our and process. minor related order to and Evie earlier. response early April the to draft the provided to look now regulatory the the which agency to working Health FDA requested requested our responded. a in team our to June, July We forward X the review meeting a meeting in forward June, this FDA scheduled, and I FDA of questions with Evie additional to review requested Med. Med and May In some team

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could identified the XXX(k) remote that clinical specifically discussed unlocked a During and the and BXB significant we for monitoring trials event, possibilities following patient clearance. be

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access an For complete barely However, reduce X data believe in that reduce Patient market reality Monitoring and RPM market in-office will years or today. RPM for can advantages Remote Med Evie ago, be meaningful We over visits, of resulting the the to with accurate expand existed on COVID need more automate RPM able collection costs. and the products solution the unlocked RPM

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API our operations partners' medical data of be to meet to sharing are and these requirements partnerships the we anticipation establishing and our company scale including In back-end to to and able building efficiently, preparing labeling device a and more, modifications positioning our framework. app support

update an I to to will for our our Evie plans now it turn Tyler provide the on over Bucher, DXC CMO, Ring.

John. Thanks,

functionality, all a been this existing series know, we've since and of finalizing you some new to implement customers, and customer and best-in-class accurate service operational out more delivery of the stock necessary Ring timelines, As improvements for Evie and been prospective time including QX we've and features. better and using on our ring

From keep floor logistics real-time This more greater inventory an warehouse orders. times cycle flow production result of the management production accurate we and on and will track standpoint, the well system. and operations allow our efficiency improved in of us to as as and yields

wake our measurement sleep rate Ring From steps. perspective, algorithms, and heart stages, improving and sleep we a activity updated times, software during accuracy across

than we to to hundreds include of by X,XXX, mood. newer insights AI example of combination a addition, and proprietary insights our tend An step their of our better engine expanded for beat for by customized generated individual track our and when would data. you you informed users, your average more log a insights report new In journey of be, one wellness

product has articles that like and of built the all currently as issues real-time prefer. a to a of new Regarding required. and a XX-plus hours inquiries the responding team solid and shared they customers Ring Evie This customer can self-serve, be direct-to-consumer drafted can combined the consumers out of of in service, that with together comprehensive years XX use a knowledge any library work tips delivery a with representatives through live pace we space. have Who service understanding the or is if tricks they ours within and useful team

issues who In customers many friendly information, feed easily native responding and the both to our smarter can as AI-powered addition, quickly mitigate and in chatbot inquiries into ingests and solvable it and accurately these language. articles our get

to to the be the activity enhancements, these feature, on able results. Users detect fact. addition auto able be will started which you even on of out we with you And working you modify all will work working out, after that work following the their understand if you're to also have the In details app. your we'll also provide work to out are to not out allow workout an

prospective Black we an app quite purchase this for in a users, finally, version of which year. Friday ready our expect few are the to by Android there to of November And have of Android

attention that stock we'll We gift in post back consumers begin be September to time when pleased and for announce is summer their to and holidays are This giving. turning season XX. the on

to social We Search in as support influencer as have prepared [ user-generated launch Shop includes and content YouTube ]. a organic Google and our across and Facebook, TikTok which full paid well campaign Instagram,

press have also pitch And to strategy. them consumer robust comprehensive well across we lead exponentially gift tech a list and a with a campaign outreach e-mail have with consumers we satellite guides ready grown has We print [indiscernible] with key as for press and up a as be and lined television. will that holiday are engaging buy,

drive excited our Aligned digital entrepreneur mission has be the Ring several brand, of with them and awareness couldn't around to more partnership we for to where we formed family. healthier live has We insights welcome Heidi really together. the be continue of help grow and months Heidi and share lives, Heidi brand a our true fan. have strategic experience introduction to with and ring become data couldn't with the using finally, health we'll with women the women's the creator, been Evie more mom to D'Amelio. better improve to Evie wife, a partnership empowering And Heidi excited

ring see, and consumers, can wait. of hands to we've clock we you worth will truly As working get back be in the the around it been the the believe

with turn over I'll John. And that, things back to

Tyla. Thanks,

Med. development you our product extends beyond Evie are aware, far plan As Evie and

in deeply We pursuing disturbances. invested additional solution to temperature sensing and core are rate, further clearances in FDA address multi-analyte research with sleep a respiration and

software components different Some only a require of factors. while these new update, hardware metrics form may others require potentially or may

to for the in stages are related analytes. clinical several trials We these planning now valuable

next QX blood pressure about clinical 'XX, blood blood the their improved with of on to a great successful deal As the collect solution. form we June, the factor and study redesigning learned the for We the in also to which body maximize process ways we sensors of a we placement use of completed included We're in more focus on a recent the as data, pressure in pressure our study arterial designing conducted better an the line. we'll to study be consumer-friendly most commercializing follow-on utility.

will We before QX into continue to year-end. plan with another study develop this

and millimeter our health monitoring pressure through introduction analyte summary, radio blood improving sensing, technology. frequency additional we including AI and committed glucose remain of wave to using the In

call the With for over Jay I'll the review. to hand now that, financial

launch We phase. second quarter John. X,XXX in as Thanks, of we Evie completed XXXX shipped fulfillment our initial Rings the of

The the You'll for by did market given X,XXX approximately in recall revenue first any mid-February deferred conditions. quarter report we stopped as taking previously revenues quarter in Rings the that orders capital second shipped company offset refunds. not and

should we the in begin in again We taking have orders earlier call, taking highlighted, we shipping ample As inventory expect And to to Rings plan September. in that clearance position noted and September. important FDA made in prior Tyla well we have product customer orders in us and DXC Med across eventual as for Evie to again of expanded decision. and Evie BXB upon manufacturing an of launch strides launch an service both Ring

of April, resources executed million placement working our seed people which a from our type Health strategic we recently the up where a Following and for in partner investment going multibillion-dollar proceeds, gross should X successful Tier free turnkey company, Movano capital forward. production $XX.X company including with agreement raised medical both in device

with we company sheet operating year good million the to outstanding The takes our million in which at than versus payables June of April loss following partners milestones. reported cash of million as million $X.X catching $XX.X equivalents on ago we in position key $X.X standing an in more cash had of in an quarter placement XX, the period. loss our operating execute into balance the And $X the against company future second XXXX and private us of account our on putting up

our catch-up, managing continues approximately burn million to in resources quarter company. the the for $X.X cash was the a Excluding priority as be

Now over John for back I'll it final to remarks. turn

are all the Jay. highlighted. about of I excited couldn't team just we Thanks, The and -- progress

nearing milestones. we as for close in Evie key and on an company the inflection Evie Med We are point

half optimistic the We of to our as year. are laser BXB Med opportunities the Evie potential our the focused business, look continuing about into DXC RF our forward head on and on We to the chip. share of for expansion progress we back the of bullish

your take questions. be that, With happy to we'd

comes first Instructions] line question from [Operator of with Company. Benchmark the Bruce Jackson The

you with the launch With same auto developed? the activity that the going just new is that as the that's new detect rate heart to Evie motion features, thing in algo

you ahead and to respond would from Leabman, like Michael that to go question Bruce?

Yes, sure.

first jogging, much running, rate is be we've activity the your really algorithm get is more stand-alone et think to as to you motion start or don't added Tyla cetera. if out to ring kind That's accurate heart deep changed to activities identify collecting. watch auto fix our as algorithm. what work tell even collecting this be to The to based data, of your we've on walking, well machine app I twofold: or one, big learning start start kind really to or of doing heart in you're you're able to and if mentioned, your

for give kind So that there X much a things you of workout. are separate to combine better results

side. And Okay. then moving over the business-to-business Great. to

provider that a like the to you've minimum like orders bit have Or got organization engagement, attached an With they the maybe any Is activities? engagement? engagement? can on the you where depth as go little into more to about parallel it of detail do the

go Thanks Bruce. to you want and Soule, do ahead Michael that question? take

Yes.

they number as payers of and the the with different as said initial working as are patient in channels -- also approval remote with us we testing. are through FDA well. number including with folks, providers them monitoring the of a one channels, earlier, we remote are of formats conversations in monitoring. we We're payers, patient various In So agreement engaged beta of a our anticipation providers,

Great. for question mid-August date the with then for meeting changes Any Okay. FDA? the And me. last on

for I'll take a the optimistic to Thanks No, there. like still to to that it. comments question. our with couple are a the We agency one, I'd regard very work of no for reasons. Bruce. ability changes make with about just few

team has with U.S. their the got regulatory we've in step the in gone had more off, ever the and principle working the that. company And in a firm career. through First also pretty anyone of with we're and probably meetings beyond than deep FDA one but we've probably seasoned so fact, the whom regulatory itself, leading

So possibly all assure the we've we top to have this that really working FDA could that we're on complying team with got the policies.

medical When already preparation where the and with communication We've we meeting, devices but It Ring and questions about for the direction. product. something and can the recent our stand. you're got all good it's some some raise in we've new, the in feel we right doing new really in had trending the wellness of agency,

So that all positive. is

is always pulse kind data feature. filing results lastly, strong remember And thing oximetry of incredibly the we that foundation and on clinical really is the whole built then of strong a one for

of a reasons, work we are about and where because gain to being of FDA clearance. still all So good we able through really and feel these the

Okay. Congratulations Great. on of progress. all the

happens Thanks, Bruce. ask looks on it with lines go thereafter. some I Operator, like the questions we'll see we phone have what can and webcast. and those ahead the

else or release anything securing on terms in week, anything last confidence there's question a else guess, can discuss press if I anything XXX(k) if there's there's our wanted we move question. to here about we you If anything just in next John, of else, beyond issued submission. there's add to to that the the the otherwise,

I Yes, to Bruce. question I question. I and that at time saw it saw answer that tried online, that answered same the I

is think stand that Bottom forward we much topic. the looking soon it I and to on optimistic So to resolve and well. very covered agency we the meeting pretty are feel and move where really in next this confident still line with to

great. Okay,

app I for think biggest of about Tyla, are Evie couple of And and can expanded heading questions expanded for plan a the launch? couple what we've the changes the made of also, next then the be Ring? to questions into launch that there's the press marketing this ring Tyla. and

Sure.

last updating the focusing So and months I we've think improvements including as the the fine-tuning few on algorithms. call, across I spent obviously noted the board, on

operations activity the is insights little then have key our the us. also are a focus improved about big think engine that we But processes I our I differentiator think the other for that side. auto And on been pieces app. bit features Both talked on as has these out we're I actually the just because a roll an want asking to are the mentioned Android listening enhancements. know version for. we're consumers that have really And that these do community Bruce of as key we really that been of our to well detect excited and really

So pieces those, are I the think, on the experience side. big

go includes YouTube, said, as a Shop. relates marketing, influencer across then campaign I to we that to the Search Google and user-generated things it ready Facebook, have And other all full and content Instagram,

-- engaged, partnership really thrilled fitness, we're she her our data does only of But have We and a for strategy. She and Heidi comprehensive shared outreach creator, of just audience, insights. a beyond, health have leadless wonderfully with not announcement D'Amelio. the digital really influencer women's above highly with vision improving with and passion a engaged she and a she but and has and better

think such the the has is I with us. as around idea the drive Heidi wellness a we'll device like able forward importance that an to to women for step big a someone Ring be closely engaged as audience of again, who, well work awareness Evie for

of Great. growth have Evie webcast recently that position the on of from prior in other question answered All commercial in we've partners this a right. a how Soule, most to the and this future. opportunities Michael relates they the with company might health Med the you or for deeper question announced Bruce. the first into dive some But taking pharma and

saw Yes. Sure. I online. that And Yes. well as

the channels come partners, the our to strategic we since in other to But us large a call, have out work right? little coming with we bit various with talked last about ran beta our phase, partners. think that of looking I beta beta partners gamut us. across And

device pharma, looking who clearance. payers medical And to range to channels forward in are our so FDA to they for

monitoring. can mentioned comes, we're remote And across And to required when of host clearance for partnerships a hit the running. building expect that the as so unlock so ground initiatives systems had also, patient earlier, John clinical we these we trials, back-end -- we

number clearance, this which excited happening. of folks, we've So a as moved, discussions some agreement pace into I in and very the about we're said, that advance of with with is

Perfect.

most question clinical Michael recent Next Leabman. learn your study? What pressure for did in you blood

Yes. Great.

as June, as including a us form gets giving allowed arterial using to new of we fine smaller completed the our accommodating our antennas already us to tune data. and And it. been we've device, closer So we've with really analyzing I new different us designing data kind sizes it's mentioned, us in think concluded as that wrist line, closer study which factor, is which and continuous John really well to commercializing

new us as I in when to the of September, to we're at design, think will we somewhere allow the expect customers arterial end changes we clinical begin ready October for all our early arrive testing study BXB these really next with get and November. ready line expected

nicely next we to everything step. I kind the and think first back hardware this this forward together coming is taking getting And really and study, look of with

on planning women? Thanks, medical Michael. path question a and gender, to Okay. with and glucose device to of -- there's marketing and to about specific a the taking pressure blood target John its Tyla, is being company beyond company specific expand the Movano horizon

for Yes. health that you're have From which and I'll women. for that aspect. Med these and products Certainly, that Device some take focus there aware But space, we had have in in expand are are the opportunities the a specific as we direct-to-consumer, to moment. Tyla perspective, that can care alluded a are upon female for

So design some very and for women nicely, are many opportunities app that targeted anyone. whatnot. the this we've dovetails of because looking experience and aspects of at we've just been with the And but in

tremendous it's of for It value not that doesn't mean anyone.

major measuring monitoring and rate, the future we important problem. or whether And to And have other SpOX pressure well, work universally. all or suffering be." our chronic conditions looking subscribers today related the to it we're all glucose it's heart so won't They're and U.S., a "Oh, whatever it's said, this analytes, to may in one And everybody. partners, all future and of you're or blood of suit what using in right, a our continuous customers the from with plan they're it no at

XX in the pressure is U.S. of of pre-hypertensive, blood the about have and over X/X half got or high people We've age people. diabetes

wealth feel and doesn't changes your used the in and is good And way, be just able that finger, a with so having good that something interfere to home on can very to lifestyle products in data like at collect are can user-friendly look health than worn way bring of light And and folks. it's ever that and important your a change think before aware to I what's happened all course the of into more bring to COVID the of needed. future with think and through And care whatnot. in more delivered we're after is health this the health going home of the our I this

So leveraged it's who's massive we're this to are to be quite seamlessly the whom Tyla, all you frankly, specifically anything care and and to female -- people. be health it wellness finding the help a you on? of just the opportunity, to comment do DXC health speaking in the that support like and that about can the add focus space about have products want and there

it Sure. I I well. you really mean think captured

for I family, of that we the the notes health for opportunity comment who be themselves sort purse strings, to about up a make we present only really that to that really they're family coming good male prioritize the rather make among the would exclusion but their prioritizing solution echo their to the Evie gender, prioritize your and an care health, with for the their think Ring taking decisions sure they're and wellness. that didn't them of control is see make I design the of to women of

them make that it comfortable understand app, we're worthwhile and a how would women the insights you do their if how fit that that with now to to Ring like displayed Evie really receive what like want this sure feel tried into the wear data. consideration are. can to what is gender that you in delivering they whatever we to they is And think a I take and make are data, do endeavor see You

nothing off something a the well-being. tremendous, and track necessarily think but again, opportunity. and to forward, having your it tremendous priority will wear it But certainly, table, still work, where I health make anyone the So was women will the we said still see And we as to can ring. that, is move available

trend like Med? expanded It eventually take made and progress I'll see your John. of rates, good Evie thanks you've launch Tyla, question. last reducing some our how looks Evie Ring the quarterly Thanks, we on burn the in

feedback. appreciate the We

use and be focused our We implemented believe the and the growth continue for few margin profile customer definitely service of help over capital highest BXB the past we're manufacturing should on flow. out. businesses and and We to improvements position best of rolling organization months and that the us cash DXC as the that an product we've

-- In the mentioned turnkey with which our calls, few couple better now company's cost manufacturing we've of executed that over which up and agreement, improve lining cash we've goods. addition, the very times our last sales and partner, profile, flow a much the should contract actual of

to Operator, I'm into to just forward your in We like date touch investors you ir.movano.com. saying see staying in continue for next Health to Movano stay to thank look up on closing, if to please support. check you quarter, and

This teleconference. today's concludes you. Thank

time. for this your at your you may You participation. Thank disconnect lines