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Jun 30, 2023

Zynex Q2 2023 Earnings Report

Zynex's revenue increased, driven by a growth in device orders and customer base, while the company continued to invest in its pipeline and stock buyback program.

Key Takeaways

Zynex reported a 22% increase in revenue to $45.0 million for Q2 2023, with EPS at $0.09. The company saw a 51% growth in device orders and continued its stock buyback program.

Revenue increased by 22% year-over-year to $45.0 million.

Earnings per share (EPS) reached $0.09.

Gross profit increased to $35.7 million, representing 79% of revenue.

Device orders increased by 51% year-over-year.

Total Revenue
$45M
Previous year: $36.8M
+22.3%
EPS
$0.09
Previous year: $0.08
+12.5%
Gross Profit
$35.7M
Previous year: $29.4M
+21.3%
Cash and Equivalents
$58.7M
Previous year: $26.9M
+118.2%
Free Cash Flow
$531K
Previous year: -$316K
-268.0%
Total Assets
$153M
Previous year: $120M
+27.6%

Zynex

Zynex

Forward Guidance

Zynex anticipates revenue between $49 million and $51 million for Q3 2023, representing approximately 20% growth year-over-year. Diluted EPS is expected to be between $0.08 and $0.10. Full year 2023 estimates are unchanged with revenue of $180-$200 million and Diluted EPS of $0.40-$0.50 per share.

Positive Outlook

  • Third quarter 2023 revenue is estimated to be $49-$51 million, an increase of approximately 20% from Q3 2022.
  • Full year 2023 revenue is projected to be in the range of $180-$200 million.
  • The company is making significant progress as a leader in at-home pain management devices.
  • Zynex has a robust and durable business model with high recurring revenue.
  • The hospital monitoring division represents a large and growing market opportunity.

Challenges Ahead

  • Diluted EPS for Q3 2023 is estimated to be $0.08-$0.10.
  • Diluted EPS is impacted by increased operating expenses to support ZMS.
  • The Laser-based Pulse Oximetry products are being prepared for FDA submission, incurring costs.
  • The fluid monitor is being readied for the market, contributing to increased expenses.
  • Labor market conditions and sales rep productivity may affect the revenue range.