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Jun 30, 2020

Zynex Q2 2020 Earnings Report

Reported highest quarterly revenue and continued profitability.

Key Takeaways

Zynex reported an 87% increase in net revenue to $19.3 million and a net income of $3.0 million for the second quarter of 2020. The company's order growth was 37% compared to the second quarter of 2019.

Net revenue increased by 87% compared to Q2 2019.

Net income was $3.0 million.

Orders grew 37% compared to the second quarter of 2019.

Cash from operations was $2.7 million.

Total Revenue
$19.3M
Previous year: $10.3M
+87.1%
EPS
$0.08
Previous year: $0.05
+60.0%
Adjusted EBITDA
$4.8M
Gross Profit
$15.2M
Previous year: $8.35M
+82.1%
Cash and Equivalents
$16.9M
Free Cash Flow
$2.29M
Previous year: $505K
+354.3%
Total Assets
$36.8M
Previous year: $21.8M
+68.3%

Zynex

Zynex

Forward Guidance

The estimated range for third quarter revenue is between $22.3 and $22.8 million with Adjusted EBITDA between $2.3 and $2.8 million. Full year 2020 estimates are unchanged. Revenue is estimated between $80.0 and $85.0 million with Adjusted EBITDA between $15.0 and $18.0 million.

Positive Outlook

  • Third quarter revenue is expected to increase by approximately 89% to 93% above 2019 third quarter revenue.
  • Full year revenue is estimated to increase by approximately 76% to 87% above 2019 revenue.
  • Third quarter revenue is estimated between $22.3 and $22.8 million.
  • Third quarter Adjusted EBITDA is estimated between $2.3 and $2.8 million.
  • Full year revenue is estimated between $80.0 and $85.0 million.

Challenges Ahead

  • Third quarter revenue and Adjusted EBITDA estimates are impacted by lower than normal order growth in the second quarter of 2020 due to COVID-19.
  • Third quarter revenue and Adjusted EBITDA estimates are impacted by continued investment in growing the sales force.
  • COVID-19 pandemic impacting physician availability to prescribe products.
  • COVID-19 pandemic impacting employee and supply chain issues.
  • Lower than normal order growth in the second quarter of 2020 due to COVID-19.