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MI

Movano Inc. (MOVE)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 revenue was $0.05M, with 339 Evie Rings shipped, as the team executed a September 17 back‑in‑stock relaunch; operating loss narrowed year over year to $(7.4)M from $(9.1)M, and net loss to $(7.2)M from $(9.0)M .
  • Management emphasized strong D2C execution (90%+ customer service approval), an organic go‑to‑market into the holidays, and the imminent launch of the Android app to expand TAM; B2B pipeline advanced with an agreement‑phase pilot in Q1 2025 pending EvieMED clearance .
  • The company submitted its complete response to the FDA during the week of Oct 28 and remained in the final stage of EvieMED 510(k) review through Q3; subsequent to quarter‑end (Dec 2), Movano received FDA clearance for EvieMED’s pulse oximeter, a major B2B catalyst .
  • Corporate actions: 1‑for‑15 reverse split (Oct 29) regained NASDAQ bid‑price compliance (Nov 12); management disclosed an investigation into apparent stock manipulation of single‑share transactions around the split .

What Went Well and What Went Wrong

What Went Well

  • D2C relaunch traction with improved experience and operations; management cited “laser focused” execution, upcoming Android app, and holiday campaigns, with 90%+ customer service approval scores .
  • B2B commercialization progressed: agreement phase with a large healthcare company for a Q1 2025 pilot; re‑engagement with pharma, CROs, payors across clinical trials, RPM, and metabolic solutions ahead of clearance .
  • R&D momentum: completed a UCSF hypoxia clinical trial with an updated wrist wearable featuring 12 additional mmWave antennas and enhanced multi‑analyte monitoring (SpO2, respiration, ECG), aiming to ease placement sensitivity and improve data collection .

What Went Wrong

  • Minimal Q3 revenue ($0.05M) and low shipment volumes (339 rings) as the relaunch occurred late in the quarter; sequential operating loss increased to $(7.4)M versus Q2 $(6.4)M, with cash burn ~$5.6M in Q3 (including ~$1M one‑time/annual payments) .
  • Q2 revenue was effectively zero due to prior deferred revenue offsets and refunds from initial launch issues; this dampened sequential revenue trajectory despite Q1’s $0.85M .
  • No quantitative guidance (revenue/margins/OpEx) provided; visibility on near‑term financial trajectory remained limited pending scale‑up of D2C marketing, Android launch, and EvieMED B2B ramp .

Financial Results

MetricQ1 2024Q2 2024Q3 2024
Revenue ($USD Millions)$0.852 $0.000 $0.050
Operating Loss ($USD Millions)$(5.754) $(6.397) $(7.379)
Net Loss ($USD Millions)$(5.720) $(6.190) $(7.201)
Diluted EPS ($USD)$(0.10) $(0.06) $(1.06)
Cash And Equivalents ($USD Millions)$2.145 $16.868 $11.272
Evie Rings Shipped (Units)5,305 1,837 339
Weighted Avg Shares (Millions)56.023 99.538 6.816

Year-over-year comparison:

MetricQ3 2023Q3 2024
Revenue ($USD Millions)$0.000 $0.050
Operating Loss ($USD Millions)$(9.079) $(7.379)
Net Loss ($USD Millions)$(8.962) $(7.201)
Diluted EPS ($USD)$(2.65) $(1.06)

Notes:

  • EPS comparability is affected by the 1‑for‑15 reverse split implemented Oct 29, 2024; Movano regained NASDAQ bid‑price compliance on Nov 12, 2024 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024Not provided Not provided; focus on holiday D2C, Android launch Maintained (no numeric guidance)
Operating ExpensesQ4 2024Not provided “Judicious” spend; incremental marketing around holidays/Android; burn managed Maintained (qualitative only)
EvieMED 510(k) (Pulse Oximeter)Q4 2024Final stage review; complete response submitted week of Oct 28 Awaiting clearance in Q3; subsequently cleared Dec 2, 2024 Progressed post‑period
B2B Pilot (Metabolic Solution)Q1 2025Agreement phase Pilot expected Q1 2025, pending clearance Maintained timeline
Android App LaunchHoliday 2024Planned Launch “right in time for holiday” On track

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2024)Previous Mentions (Q2 2024)Current Period (Q3 2024)Trend
D2C operations & inventoryPost‑launch learnings; ensure 1–2 months inventory before order resumption Operational improvements; back‑in‑stock date set; improved yields/logistics/customer service Back‑in‑stock executed; 90%+ CS approval; organic campaign into holidays Improving execution
Android appDevelopment initiated Targeting Black Friday availability Launch planned for holidays; same functionality as iOS; ~40% Android user base Near‑term launch
FDA 510(k) – EvieMEDExpect decision July; exemplary SpO2 accuracy vs hospital devices Mid‑Aug meeting; wellness features resolved; advancing review Complete response submitted Oct 28; final stage; labeling questions addressed Progressing; cleared post‑period
B2B pipelineEngaged with pharma/med device/payers; building backend Agreement phases with pharma/payer; RPM beta with platform serving 450 orgs Agreement phase with large healthcare company for Q1 2025 pilot; active CRO/pharma dialogues Building pipeline
Cuffless blood pressure & RF techPlanned June arterial line study; prior MAD 5.9 mmHg June arterial line study completed; redesign for better placement; Q4 study planned Nov UCSF hypoxia trial with 12 additional antennas; cleaner signals; ongoing accuracy work Advancing prototypes
AI insights & algorithmsImprove heart‑in‑motion & sleep algorithms; AI‑driven insights; Android development Deep‑learning heart‑rate in motion; auto activity detect; expanded AI insights AI insights engine “getting smarter,” correlating trends across health metrics Continuous enhancement
Corporate actions——1‑for‑15 reverse split; regained NASDAQ compliance; investigating apparent manipulation Compliance achieved

Management Commentary

  • “We are pleased with our Evie Ring D2C performance and continue to be laser focused on improving the consumer experience, including the upcoming launch of our Android app… Additionally, we look forward to the successful completion of the 510(k)… and… game changing opportunities… for our healthcare partners.” — CEO John Mastrototaro .
  • “We shipped 339 rings in the stub period of the third quarter… focus… on a fully organic basis without marketing dollars… plenty of inventory on hand… cash burn… ~$5.6M including ~$1M one‑time payments.” — CFO Jeremy Cogan .
  • “Our updated device features 12 additional millimeter wave antennas… delivers enhanced data collection with less impact of placement… monitors pulse rate, SpO2, respiration rate and ECG waveforms.” — CEO John Mastrototaro on cuffless BP wearable .
  • “The AI‑powered [insights] engine is getting smarter every day… discovering new ways to correlate the data… to help… improve overall health.” — CMO Tyla Bucher .

Q&A Highlights

  • Cuffless blood pressure roadmap: Management expects accuracy at least on par with prior FDA‑criteria study; ongoing iterations to slim form factor and multiple trials planned over the next year .
  • Android parity and TAM: Android app will have full feature parity with iOS; ~40% of prospective users are Android; expected demand bump on launch .
  • OpEx and cash burn: Incremental spend anticipated for holidays/Android, but overall continued discipline in resource management and burn reduction focus .
  • FDA process clarity: Final stage focused on medical aspects (including labeling); strong clinical evidence with superior accuracy to hospital pulse oximeters; waiting for remaining agency feedback by Q3 end .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q3 2024 were unavailable at the time of analysis due to an access limit; as a result, no vs‑consensus comparisons can be provided for this quarter [SPGI access error via GetEstimates].
  • Given the subsequent FDA clearance (Dec 2), we expect analysts to update B2B revenue trajectories and timing assumptions around pilots and initial deployments in 2025 .

Key Takeaways for Investors

  • Near‑term D2C: Expect holiday season and Android launch to drive improved top‑line versus Q3’s stub; watch conversion efficiency as the team shifts from organic to measured paid spend .
  • B2B inflection: FDA clearance (post‑period) materially de‑risks B2B use cases (clinical trials, RPM, payor pilots); pipeline already at agreement phase with pilots slated for early 2025—monitor contract formalization and deployment velocity .
  • R&D optionality: Continued advancement in cuffless BP/glucose with proprietary RF SoC and improved antenna arrays creates long‑term upside if accuracy and regulatory milestones are achieved; near‑term path involves more trials and hardware iteration .
  • Financial discipline: Q3 burn of ~$5.6M (incl. ~$1M one‑time) shows continued resource focus; cash of $11.3M at quarter‑end provides a runway for holiday D2C and initial B2B onboarding—investors should watch burn and gross margin trends as volumes scale .
  • Corporate housekeeping: Reverse split and regained NASDAQ compliance remove listing overhang; ongoing investigation into apparent manipulation indicates proactive governance posture .
  • Narrative shift: With clearance in hand, the story pivots from product readiness to commercialization—KPIs to track: signed B2B agreements, pilot start dates, active patients/devices, and D2C unit momentum post‑Android .
  • Risk‑reward: Execution risk remains on scaling production, maintaining quality/CSAT, and meeting data/compliance needs for partners; clearance and pipeline breadth provide visible catalysts, but revenue ramp timing should be managed conservatively .

KPIs (Operational and Balance Sheet)

KPIQ1 2024Q2 2024Q3 2024
Rings Shipped (Units)5,305 1,837 339
Cash Burn (Quarter) ($USD Millions)$4.1 (incl. launch/FDA submission timing) ~$4.4 (ex‑$3M payables catch‑up) ~$5.6 (incl. ~$1M one‑time/annual)
Cash And Equivalents ($USD Millions)$2.145 (3/31/24) $16.868 (6/30/24) $11.272 (9/30/24)
Inventory ($USD Millions)$1.064 (inventory at Q1 balance sheet) $1.790 $2.033
Customer Service Approval——90%+

Segment Breakdown

  • Not applicable; the company reports as a single operating entity with D2C shipments disclosed and B2B pipeline commentary; no segment financials provided for Q3 2024 .

Disclosures and Subsequent Events

  • FDA 510(k) clearance for EvieMED Ring received Dec 2, 2024, unlocking B2B opportunities across clinical trials, RPM, and payor pilots; this is a key catalyst beyond Q3 .
  • 1‑for‑15 reverse split (Oct 29) achieved NASDAQ bid‑price compliance (Nov 12); apparent single‑share transaction activity investigated by management .

Sources: Q3 2024 8‑K press release and financial tables ; Q3 2024 earnings call transcript ; Q2 press release and call ; Q1 press release and call ; Back‑in‑stock and FDA review updates ; Post‑period FDA clearance .