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Sep 30, 2020
Zynex Q3 2020 Earnings Report
Zynex reported a 69% increase in revenue and a net income of $1.3 million for the third quarter of 2020.
Key Takeaways
Zynex reported strong third-quarter results, highlighted by a 69% increase in revenue to $20.0 million and a net income of $1.3 million. The company's growth strategy and sales force expansion contributed to the positive performance, with orders growing 96% compared to the third quarter of 2019.
Zynex reported net revenue of $20.0 million, a 69% increase year-over-year.
Gross margins were 79% in the third quarter of 2020.
Net income was $1.3 million for the third quarter.
Orders grew 96% compared to the third quarter of 2019.
Zynex
Zynex
Forward Guidance
The estimated range for fourth quarter revenue is between $25.5 and $26.5 million with Adjusted EBITDA between $2.3 and $3.3 million. Full year 2020 revenue is estimated between $80.0 and $81.0 million with Adjusted EBITDA between $12.5 and $13.5 million.
Positive Outlook
- Fourth quarter revenue is expected to be approximately 80% to 87% above 2019 fourth quarter revenue of $14.2 million.
- Full year revenue is estimated to be approximately 76% to 78% above 2019 revenue of $45.5 million.
- Zynex expects the addition of new sales reps to have an impact on order and revenue growth in the fourth quarter and going forward.
- Company to continue to invest in its infrastructure to support the increase in order volume.
- Company will eclipse 400 sales reps and expect to have over 500 by year-end.
Challenges Ahead
- Q3 revenue was less than originally expected due to the impact of the COVID-19 pandemic.
- Similar to most companies we have seen the impact of the COVID-19 pandemic.
- COVID-19 pandemic has impacted the global economy.
- Our actual results and financial condition may differ materially from those indicated in the forward-looking statements.
- Factors that could cause actual results to materially differ from forward-looking statements include larger competitors with greater financial resources.