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Mar 31, 2020

Zynex Q1 2020 Earnings Report

Reported a 66% increase in revenue and a net income of $2.9 million.

Key Takeaways

Zynex reported a strong first quarter with a 66% increase in revenue to $15.2 million and a net income of $2.9 million, marking the fifteenth consecutive quarter of positive net income. The company also saw significant order growth and generated $0.6 million in cash from operations.

Net revenue increased by 66% compared to the first quarter of 2019.

Net income reached $2.9 million.

Orders grew 126% compared to the first quarter of 2019.

Cash from operations was $0.6 million.

Total Revenue
$15.2M
Previous year: $9.2M
+65.6%
EPS
$0.08
Previous year: $0.06
+33.3%
Adjusted EBITDA
$3M
Gross Profit
$11.8M
Previous year: $7.41M
+59.6%
Cash and Equivalents
$14.6M
Free Cash Flow
$335K
Previous year: $1.72M
-80.5%
Total Assets
$33.2M
Previous year: $18.9M
+76.1%

Zynex

Zynex

Forward Guidance

The estimated range for second quarter revenue is between $17.5 and $18.0 million with Adjusted EBITDA between $3.2 and $3.7 million as we continue to invest in growing our sales force. Full year 2020 estimates are unchanged. Revenue is estimated between $78.0 and $83.0 million with Adjusted EBITDA between $15.0 and $18.0 million.

Positive Outlook

  • Second quarter revenue is expected to be between $17.5 and $18.0 million.
  • Adjusted EBITDA for the second quarter is projected to be between $3.2 and $3.7 million.
  • Full year revenue is estimated between $78.0 and $83.0 million.
  • Full year Adjusted EBITDA is projected to be between $15.0 and $18.0 million.
  • Order volumes have stabilized and remained steady during the last 3 weeks of March and through April.

Challenges Ahead

  • The COVID-19 pandemic continues to impact the availability of physicians to prescribe products.
  • Employee and supply chain issues are being navigated due to COVID-19.
  • Second quarter revenue estimate is approximately 70% to 75% above 2019 second quarter revenue of $10.3 million.
  • Full year revenue estimate is approximately 72% to 83% above 2019 revenue of $45.5 million.
  • The company continues to invest in growing its sales force.