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Mar 31, 2021
Zynex Q1 2021 Earnings Report
Zynex reported a net revenue increase of 58% compared to Q1 2020, but experienced a net loss due to seasonality and sales force investments.
Key Takeaways
Zynex reported a strong revenue increase of 58% year-over-year for Q1 2021, reaching $24.1 million. However, the company experienced a net loss of $0.7 million due to seasonal factors and investments in the sales force. The company anticipates profitability to improve significantly in the second quarter.
Net revenue increased by 58% to $24.1 million compared to the first quarter of 2020.
Gross margins were 76% in the first quarter of 2021.
Net loss was $0.7 million due to seasonality and sales force investments.
Order growth in the first quarter was 140%.
Zynex
Zynex
Forward Guidance
Zynex anticipates revenue between $31.0 and $32.5 million and Adjusted EBITDA between $3.0 and $4.0 million for the second quarter of 2021. Full year 2021 revenue is estimated between $135.0 and $150.0 million with Adjusted EBITDA between $15.0 and $25.0 million.
Positive Outlook
- Second quarter revenue is expected to be 61% to 69% above 2020 second quarter revenue.
- Adjusted EBITDA for the second quarter is projected to be between $3.0 and $4.0 million.
- Full year revenue is estimated to be 68% to 87% above 2020 revenue.
- Profitability is expected to continually ramp throughout the year.
- The company expects to have over 600 sales reps by the end of 2021.
Challenges Ahead
- First quarter revenue is historically affected by health insurance deductibles.
- The company experienced a small loss in Q1 2021.
- Cash decreased during the quarter due to higher inventory levels.
- Supplier delays related to COVID-19 could potentially impact the company.
- The company's actual results may differ materially from forward-looking statements due to various risks and uncertainties.