HEAR LIFE TO THE FULLEST

SECOND QUARTER 2021 EARNINGS CALL AUGUST 12, 2021

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CONFERENCE CALL LOGISTICS

Available Documents

• Release, accompanying slides and replay web cast are available

online atir.eargo.com

• Supplemental historical financial information provided on slides

11 and 12

Digital Conference Call

Replay

•ir.eargo.com

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TODAYS SPEAKERS

Christian Gormsen,

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President and Chief Executive Officer

Adam Laponis, Chief Financial Officer

Nick Laudico, Vice President, Investor Relations

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FORWARD-LOOKING STATEMENTS

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This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation are forward-looking statements, including statements regarding our full year 2021 financial guidance, our ability to deliver on that guidance while driving innovation, the acquisition of assets from Clementine further advancing our long-term strategic initiative, and third-party payor audit. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results and events to differ materially from those anticipated, including, but not limited to, risks, uncertainties and assumptions related to: the outcome of ongoing third-party payor audits and the risk that insurance companies may seek recoupments of previous claims paid and deny any claims subject to the audits, and we have received some denials to date, or future claims if the audits are not concluded in our favor following processes for appeal and, if necessary, corrective action; the risk that we may not meet our financial guidance, which assumes favorable conclusion of the ongoing audit being conducted by our largest third-party payor; the impact of unfavorable resolutions of third-party payor audits on our future financial results, including our revenue recognition, sales return rate and bad debt reserve; our expectations concerning additional orders by existing customers; our expectations regarding the potential market size and size of the potential consumer populations for our products and any future products, including our ability to maintain or increase insurance coverage of Eargo hearing aids; our ability to release new hearing aids and the anticipated features of any such hearing aids; developments and projections relating to our competitors and our industry, including competing products; our ability to maintain our competitive technological advantages against new entrants in our industry; the pricing of our hearing aids; our expectations regarding the ability to make certain claims related to the performance of our hearing aids relative to competitive products; our expectations with regard to changes in the regulatory landscape for hearing aid devices, including the implementation of the pending over-the-counter hearing aid pathway regulatory framework; and our estimates regarding the COVID-19 pandemic, including but not limited to, its duration and its impact on our business and results of operations. These and other risks are described in greater detail under the section titled "Risk Factors" contained in Eargo's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and the company's other filings with the SEC. Any forward-looking statements in this presentation are made pursuant to the Private Securities Litigation Reform Act of 1995, as amended, are based on current expectations, forecasts and assumptions, and speak only as of the date of this presentation. Except as required by law, the company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

The company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, and basic and diluted net income/loss per share in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company's financial measures under GAAP include charges such as stock-based compensation, as listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this presentation. Management has excluded the effects of this item in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance. Reconciliations of non-GAAP measures disclosed in this presentation appear below. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business.

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2Q21 FINANCIAL PERFORMANCE

44% YOY GROWTH

$22.9

$15.9

Net Revenue

($ in millions)

2Q20

2Q21

Gross Systems Shipped

9,040

12,548

YoY Growth

82.4%

38.8%

2Q21 Accomplishments

  • 44% year-over-year revenue growth
  • Initial launch of Eargo 5
  • Acquisition of Clementine hearing screening technology

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Disclaimer

Eargo Inc. published this content on 12 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2021 20:56:32 UTC.