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Mar 31, 2024

Zynex Q1 2024 Earnings Report

Zynex's first quarter results for 2024 were released, revealing a 10% increase in revenue year-over-year, reaching $46.5 million, despite underperforming guidance due to delayed insurer payments, with net income at $10,000 and diluted EPS at $0.00.

Key Takeaways

Zynex reported a 10% increase in revenue for Q1 2024, reaching $46.5 million, although it underperformed guidance due to delayed insurer payments. Net income was $10,000, with diluted EPS at $0.00. The company reaffirmed its 2024 revenue guidance of at least $227 million, driven by order growth and new product introductions.

Q1 2024 revenue increased 10% year-over-year to $46.5 million, but underperformed guidance due to delayed insurer payments from a cyber incident.

Q1 2024 net income was $10,000, with diluted EPS at $0.00.

Orders increased 23% year-over-year, marking the highest number of orders in Company history for the eighth consecutive quarter.

Company reaffirms 2024 revenue guidance of at least $227 million.

Total Revenue
$46.5M
Previous year: $42.2M
+10.3%
EPS
$0.0003
Previous year: $0.04
-99.3%
Gross Profit
$37.2M
Previous year: $32.9M
+13.1%
Cash and Equivalents
$32.9M
Previous year: $16.8M
+95.6%
Free Cash Flow
$1.92M
Previous year: $1.75M
+9.4%
Total Assets
$126M
Previous year: $111M
+13.7%

Zynex

Zynex

Zynex Revenue by Segment

Forward Guidance

Second quarter 2024 revenue is estimated to be at least $52.0 million, an increase of approximately 16% from Q2 2023. Second quarter Diluted EPS is estimated to be at least $0.08. The Company expects 2024 net revenue of at least $227 million, a 23% increase from 2023. Diluted EPS is expected to be at least $0.50 per share, an 85% increase compared to 2023.

Positive Outlook

  • Second quarter 2024 revenue is estimated to be at least $52.0 million, an increase of approximately 16% from Q2 2023.
  • Second quarter Diluted EPS is estimated to be at least $0.08.
  • The Company expects 2024 net revenue of at least $227 million, a 23% increase from 2023.
  • Diluted EPS is expected to be at least $0.50 per share, an 85% increase compared to 2023.
  • Innovative new products and aggressive promotion from an expanding direct salesforce are diversifying revenue streams and ensuring sustained growth.

Challenges Ahead

  • Revenue underperformed guidance of $47.5 million due to payments from a number of insurers being delayed due to a cyber incident.
  • Approximately $1.0 million in revenue for the quarter was impacted by payments from a large number of insurers being delayed due to a cyber incident which impacted payers industry-wide.
  • FDA 510(k) submission for NiCO is now tracking to the second half of 2024.
  • Net income for the three months ended March 31, 2024, totaled $10,000, or $0.00 per basic and diluted share, as compared to net income of $1.6 million, or $0.04 per basic and diluted share, in the quarter ended March 31, 2023.
  • Payments from a number of insurers being delayed due to a cyber incident which impacted healthcare payers industry-wide.

Revenue & Expenses

Visualization of income flow from segment revenue to net income