Zynex Reports Third Quarter 2024 Financial Results
Zynex (NASDAQ: ZYXI) reported Q3 2024 financial results with net revenue of $50.0 million and net income of $2.4 million ($0.07 per diluted share). Orders increased 13% year-over-year, while revenue per sales rep grew 25% to $530,000. The company received FDA clearance for its new TensWave device. Gross profit was $39.8 million (80% margin), compared to $40.4 million (81%) in 2023. Cash flow from operations was $7.1 million, with cash and equivalents at $37.6 million. For Q4 2024, Zynex expects revenue of at least $53.6 million and diluted EPS of $0.09. Full-year 2024 guidance projects revenue of at least $200 million.
Zynex (NASDAQ: ZYXI) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi netti pari a $50,0 milioni e reddito netto di $2,4 milioni ($0,07 per azione diluita). Gli ordini sono aumentati del 13% rispetto all'anno precedente, mentre il fatturato per rappresentante di vendita è cresciuto del 25%, raggiungendo i $530,000. L'azienda ha ottenuto l'approvazione della FDA per il suo nuovo dispositivo TensWave. Il profitto lordo è stato di $39,8 milioni (margine dell'80%), rispetto a $40,4 milioni (81%) nel 2023. Il flusso di cassa dalle operazioni è stato di $7,1 milioni, con liquidità e equivalenti pari a $37,6 milioni. Per il quarto trimestre del 2024, Zynex prevede ricavi di almeno $53,6 milioni e un utile per azione diluito di $0,09. Le previsioni per l'intero anno 2024 stimano ricavi di almeno $200 milioni.
Zynex (NASDAQ: ZYXI) informó los resultados financieros del tercer trimestre de 2024, con ingresos netos de $50,0 millones y ingresos netos de $2,4 millones ($0,07 por acción diluida). Los pedidos aumentaron un 13% interanual, mientras que los ingresos por representante de ventas crecieron un 25%, alcanzando los $530,000. La empresa recibió la aprobación de la FDA para su nuevo dispositivo TensWave. La ganancia bruta fue de $39,8 millones (margen del 80%), comparado con $40,4 millones (81%) en 2023. El flujo de efectivo de las operaciones fue de $7,1 millones, con efectivo y equivalentes de $37,6 millones. Para el cuarto trimestre de 2024, Zynex espera ingresos de al menos $53,6 millones y un EPS diluido de $0,09. Las proyecciones para el año completo 2024 indican ingresos de al menos $200 millones.
지넥스 (NASDAQ: ZYXI)는 2024년 3분기 재무 결과를 발표하며 순수익이 5천만 달러, 순이익이 240만 달러 ($0.07 주당 기준)라고 밝혔습니다. 주문량은 전년 대비 13% 증가했으며, 영업 대표당 수익은 25% 증가하여 53만 달러에 이르렀습니다. 회사는 새로운 TensWave 장치에 대해 FDA 승인을 받았습니다. 총 이익은 3980만 달러(80% 마진)이며, 2023년의 4040만 달러(81%)와 비교됩니다. 운영에서의 현금 흐름은 710만 달러였고, 현금 및 현금 등가물은 3760만 달러였습니다. 2024년 4분기에는 최소 5360만 달러의 수익과 주당 희석 EPS 0.09를 예상하고 있습니다. 2024년 전체 연간 가이던스는 최소 2억 달러의 수익을 예상합니다.
Zynex (NASDAQ: ZYXI) a publié ses résultats financiers pour le troisième trimestre 2024, avec des revenus nets de 50,0 millions de dollars et un bénéfice net de 2,4 millions de dollars (0,07 $ par action diluée). Les commandes ont augmenté de 13 % d'une année sur l'autre, tandis que le chiffre d'affaires par représentant commercial a augmenté de 25 % pour atteindre 530 000 $. L'entreprise a reçu l'approbation de la FDA pour son nouvel appareil TensWave. Le bénéfice brut s'élevait à 39,8 millions de dollars (marge de 80 %), contre 40,4 millions de dollars (81 %) en 2023. Le flux de trésorerie des opérations était de 7,1 millions de dollars, avec des liquidités et équivalents s'élevant à 37,6 millions de dollars. Pour le quatrième trimestre 2024, Zynex s'attend à un chiffre d'affaires d'au moins 53,6 millions de dollars et un BPA dilué de 0,09 $. Les prévisions pour l'année complète 2024 projettent un chiffre d'affaires d'au moins 200 millions de dollars.
Zynex (NASDAQ: ZYXI) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit Nettoeinnahmen von 50,0 Millionen Dollar und Nettoeinkommen von 2,4 Millionen Dollar (0,07 Dollar pro verwässerter Aktie). Die Aufträge stiegen im Jahresvergleich um 13%, während der Umsatz pro Verkaufsrepräsentant um 25% auf 530.000 Dollar wuchs. Das Unternehmen erhielt die FDA-Zulassung für sein neues TensWave-Gerät. Der Bruttogewinn betrug 39,8 Millionen Dollar (80% Marge), verglichen mit 40,4 Millionen Dollar (81%) im Jahr 2023. Der Cashflow aus dem operativen Geschäft betrug 7,1 Millionen Dollar, bei liquiden Mitteln und Äquivalenten von 37,6 Millionen Dollar. Für das vierte Quartal 2024 erwartet Zynex Einnahmen von mindestens 53,6 Millionen Dollar und einen verwässerten EPS von 0,09. Die Prognose für das Gesamtjahr 2024 rechnet mit einem Umsatz von mindestens 200 Millionen Dollar.
- Orders increased 13% year-over-year
- Revenue per sales rep increased 25% to $530,000
- FDA clearance received for new TensWave device
- Strong cash position with $37.6 million, up 22% from Q2 2024
- Positive cash flow from operations of $7.1 million
- Net income decreased to $2.4M from $3.6M year-over-year
- EPS declined to $0.07 from $0.10 year-over-year
- Gross margin decreased to 80% from 81% year-over-year
- Adjusted EBITDA declined to $5.1M from $7.3M year-over-year
- General and administrative expenses increased to $15.3M from $12.7M
Insights
The Q3 2024 results show mixed performance with concerning trends. While revenue remained relatively flat at
Key concerns include declining sales force productivity, with a
Positively, cash position improved
Key Third Quarter Highlights and Business Update
- Q3 2024 orders increased
13% year-over-year. - Q3 2024 net revenue of
.$50.0 million - Q3 2024 net income of
; Diluted EPS$2.4 million .$0.07 - Q3 2024 cash flow from operations of
.$7.1 million - Received FDA Clearance for new TensWave device.
Management Commentary
"In the third quarter of 2024 we continued our steady growth in orders as we positioned the company for long-term profitable growth," said Thomas Sandgaard, President and CEO of Zynex. "Positive cash flow remains strong and both revenue and earnings were within guidance for the third quarter.
"Our Pain Management division delivered a
"Our focus on FDA approvals of next-generation devices and new therapy products delivered FDA clearance of our new TensWave device during the quarter. FDA clearance for the new TensWave device builds on our strong legacy of innovation in pain management, providing effective pain relief through TENS (Transcutaneous Electrical Nerve Stimulation) therapy, which has been clinically proven to reduce chronic and acute pain without opioids. We recognized a gap in the market for a high-quality TENS device that meets the specific criteria for insurance reimbursement, and TensWave is our answer to that demand. It complements our flagship multi-modality device, the NexWave, where Interferential current is the main modality and driver of obtaining prescriptions. This device broadens our product portfolio with the potential to become an essential tool for patients suffering from chronic pain conditions, offering them a safe, effective, and drug-free alternative to pain management.
"Looking ahead, we will continue to diversify our pain management revenue stream with the introduction of new therapy products. Aggressive promotion of products from our salesforce will ensure sustained profitable growth. In 2025, we should return to our normal top-line growth in our pain management division of approximately
Third Quarter 2024 Financial Results
Net revenue was
Gross profit in the quarter ended September 30, 2024, was
Sales and marketing expense for the three months ended September 30, 2024, decreased
General and administrative expenses for the three months ended September 30, 2024, were
Net income for the three months ended September 30, 2024, totaled
Adjusted EBITDA for the three months ended September 30, 2024, was
Cash flows from operations for the three months ended September 30, 2024, was
As of September 30, 2024, the Company had working capital of
Fourth Quarter and Full Year 2024 Guidance
Fourth quarter 2024 revenue is estimated to be at least
The Company expects 2024 net revenue of at least
Conference Call and Webcast Details
Thursday, October 24, 2024, at 4:15 PM Eastern Time (2:15 PM Mountain Time)
To register and participate in the webcast, interested parties should click on the following link or dial in approximately 10-15 minutes prior to the webcast: Q3 2024 Webcast Link
International number: 646-357-8785
Non-GAAP Financial Measures
Zynex reports its financial results in accordance with accounting principles generally accepted in the
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended. our results of operations and the plans, strategies and objectives for future operations; the timing and scope of any potential stock repurchase; and other similar statements.
Words such as "anticipate," "believe," "continue," "could," "designed," "endeavor," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "preliminary," "will," "would" and similar expressions are intended to identify forward-looking statements. The express or implied forward-looking statements included in this press release are only predictions and are subject to a number of risks, uncertainties and assumptions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company makes no express or implied representation or warranty as to the completeness of forward-looking statements or, in the case of projections, as to their attainability or the accuracy and completeness of the assumptions from which they are derived. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain CE marking of new products; the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources; the need to keep pace with technological changes; our dependence on the reimbursement for our products from health insurance companies; our dependence on third party manufacturers to produce our products on time and to our specifications' implementation of our sales strategy including a strong direct sales force, the impact of COVID-19 on the global economy; market conditions; the timing, scope and possibility that the repurchase program may be suspended or discontinued; economic factors, such as interest rate fluctuations; and other risks described in our filings with the Securities and Exchange Commission.
These and other risks are described in our filings with the Securities and Exchange Commission including but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 as well as our quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statements contained in this press release represent Zynex's views only as of today and should not be relied upon as representing its views as of any subsequent date. Zynex explicitly disclaims any obligation to update any forward-looking statements, except to the extent required by law.
About Zynex, Inc.
Zynex, founded in 1996, develops, manufactures, markets, and sells medical devices used for pain management and rehabilitation as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals. For additional information, please visit: www.zynex.com.
Investor Relations Contact:
Quinn Callanan, CFA or Brian Prenoveau, CFA
MZ Group – MZ North America
ZYXI@mzgroup.us
+949 694 9594
ZYNEX, INC. | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 37,630 | $ | 44,579 | |||
Accounts receivable, net | 21,623 | 26,838 | |||||
Inventory, net | 15,708 | 13,106 | |||||
Prepaid expenses and other | 3,389 | 3,332 | |||||
Total current assets | 78,350 | 87,855 | |||||
Property and equipment, net | 3,169 | 3,114 | |||||
Operating lease asset | 10,510 | 12,515 | |||||
Finance lease asset | 1,215 | 587 | |||||
Deposits | 409 | 409 | |||||
Intangible assets, net of accumulated amortization | 7,476 | 8,158 | |||||
Goodwill | 20,401 | 20,401 | |||||
Deferred income taxes | 4,529 | 3,865 | |||||
Total assets | $ | 126,059 | $ | 136,904 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and accrued expenses | $ | 9,282 | $ | 8,433 | |||
Operating lease liability | 3,979 | 3,729 | |||||
Finance lease liability | 284 | 196 | |||||
Income taxes payable | 390 | 633 | |||||
Accrued payroll and related taxes | 5,933 | 5,541 | |||||
Total current liabilities | 19,868 | 18,532 | |||||
Convertible senior notes, less issuance costs | 58,320 | 57,605 | |||||
Operating lease liability | 11,175 | 14,181 | |||||
Finance lease liability | 923 | 457 | |||||
Total liabilities | 90,286 | 90,775 | |||||
Stockholders' equity | |||||||
Common stock | 32 | 33 | |||||
Additional paid-in capital | 92,538 | 90,878 | |||||
Treasury stock | (87,186) | (71,562) | |||||
Retained earnings | 30,389 | 26,780 | |||||
Total stockholders' equity | 35,773 | 46,129 | |||||
Total liabilities and stockholders' equity | $ | 126,059 | $ | 136,904 |
ZYNEX, INC. | |||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
NET REVENUE | |||||||||||||
Devices | $ | 14,858 | $ | 16,855 | $ | 44,803 | $ | 42,542 | |||||
Supplies | 35,108 | 33,060 | 101,577 | 94,495 | |||||||||
Total net revenue | 49,966 | 49,915 | 146,380 | 137,037 | |||||||||
COSTS OF REVENUE AND | |||||||||||||
Costs of revenue - devices | 10,177 | 9,553 | 29,446 | 28,094 | |||||||||
Sales and marketing | 20,713 | 22,146 | 67,319 | 64,982 | |||||||||
General and administrative | 15,274 | 12,731 | 43,062 | 35,479 | |||||||||
Total costs of revenue and | 46,164 | 44,430 | 139,827 | 128,555 | |||||||||
Income from operations | 3,802 | 5,485 | 6,553 | 8,482 | |||||||||
Other income (expense) | |||||||||||||
Gain on disposal of assets | — | 37 | 19 | 39 | |||||||||
Change in fair value of | — | (245) | — | 2,855 | |||||||||
Interest expense, net | (625) | (327) | (1,767) | (728) | |||||||||
Other income (expense), net | (625) | (535) | (1,748) | 2,166 | |||||||||
Income from operations before | 3,177 | 4,950 | 4,805 | 10,648 | |||||||||
Income tax expense | 795 | 1,356 | 1,196 | 2,131 | |||||||||
Net income | $ | 2,382 | $ | 3,594 | $ | 3,609 | $ | 8,517 | |||||
Net income per share: | |||||||||||||
Basic | $ | 0.07 | $ | 0.10 | $ | 0.11 | $ | 0.24 | |||||
Diluted | $ | 0.07 | $ | 0.10 | $ | 0.11 | $ | 0.23 | |||||
Weighted average basic shares | 31,775 | 35,531 | 31,960 | 36,216 | |||||||||
Weighted average diluted | 32,088 | 36,103 | 32,340 | 36,866 |
ZYNEX, INC. | |||||||
For the Nine Months Ended September 30, | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 3,609 | $ | 8,517 | |||
Adjustments to reconcile net income to net cash provided | |||||||
Depreciation | 1,967 | 1,984 | |||||
Amortization | 1,402 | 1,078 | |||||
Non-cash reserve charges | — | (91) | |||||
Stock-based compensation | 2,345 | 1,621 | |||||
Non-cash lease expense | (750) | 568 | |||||
Benefit for deferred income taxes | (664) | (1,473) | |||||
Change in fair value of contingent consideration | — | (2,855) | |||||
Gain on disposal of assets | (19) | (39) | |||||
Change in operating assets and liabilities: | |||||||
Short-term investments | — | (114) | |||||
Accounts receivable | 5,215 | 1,775 | |||||
Prepaid and other assets | 106 | (826) | |||||
Accounts payable and other accrued expenses | 1,161 | 3,312 | |||||
Inventory | (4,096) | (2,071) | |||||
Deposits | — | 182 | |||||
Net cash provided by operating activities | 10,276 | 11,568 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property and equipment | (362) | (630) | |||||
Purchase of short-term investments | — | (9,810) | |||||
Proceeds on sale of fixed assets | — | 50 | |||||
Net cash used in investing activities | (362) | (10,390) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payments on finance lease obligations | (203) | (95) | |||||
Cash dividends paid | (9) | (1) | |||||
Purchase of treasury stock | (15,625) | (24,402) | |||||
Excise tax payments on net treasury stock purchases | (473) | — | |||||
Proceeds from issuance of convertible senior notes, net of | — | 57,018 | |||||
Proceeds from the issuance of common stock on stock- | 13 | 33 | |||||
Principal payments on long-term debt | — | (10,667) | |||||
Taxes withheld and paid on equity awards | (566) | (691) | |||||
Net cash (used in) provided by financing activities | (16,863) | 21,195 | |||||
Net (decrease) increase in cash | (6,949) | 22,373 | |||||
Cash and cash equivalents at beginning of period | 44,579 | 20,144 | |||||
Cash and cash equivalents at end of period | $ | 37,630 | $ | 42,517 |
ZYNEX, INC. | |||||||
For the Three Months | For the Nine Months | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Adjusted EBITDA: | |||||||
Net income | $ 2,382 | $ 3,594 | $ 3,609 | $ 8,517 | |||
Depreciation and Amortization* | 478 | 401 | 1,369 | 1,237 | |||
Stock-based compensation expense | 770 | 654 | 2,345 | 1,620 | |||
Interest expense and other, net | 625 | 290 | 1,748 | 689 | |||
Change in fair value of contingent | - | 245 | - | (2,855) | |||
Non-cash lease expense** | - | 751 | - | 978 | |||
Income tax expense | 795 | 1,356 | 1,196 | 2,131 | |||
Adjusted EBITDA | $ 5,050 | $ 7,291 | $ 10,267 | $ 12,317 | |||
% of Net Revenue | 10 % | 15 % | 7 % | 9 % |
* Depreciation does not include amounts related to units on lease to third parties which are depreciated and included in cost of goods sold. |
** Amount expensed in excess of cash payments due to abated rent. |
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SOURCE Zynex
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