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Sep 30, 2024

Zynex Q3 2024 Earnings Report

Zynex's financial performance remained steady with revenue and earnings aligning with guidance, and orders increasing year-over-year.

Key Takeaways

Zynex reported a 13% year-over-year increase in orders for Q3 2024. The company's revenue and earnings were within the provided guidance. They also received FDA clearance for their new TensWave device.

Q3 2024 orders increased 13% year-over-year.

Q3 2024 net revenue reached $50.0 million.

Q3 2024 net income was $2.4 million, with a diluted EPS of $0.07.

Q3 2024 cash flow from operations totaled $7.1 million.

Total Revenue
$50M
Previous year: $49.9M
+0.1%
EPS
$0.07
Previous year: $0.1
-30.0%
Gross Profit
$39.8M
Previous year: $40.4M
-1.5%
Cash and Equivalents
$37.6M
Previous year: $42.5M
-11.5%
Free Cash Flow
$7M
Previous year: $8.9M
-21.3%
Total Assets
$126M
Previous year: $151M
-16.8%

Zynex

Zynex

Zynex Revenue by Segment

Forward Guidance

Zynex anticipates continued diversification of pain management revenue with new therapy products and expects to return to approximately 20% top-line growth in the pain management division in 2025. Fourth quarter 2024 revenue is estimated to be at least $53.6 million with Diluted EPS is estimated to be at least $0.09. The Company expects 2024 net revenue of at least $200 million and Diluted EPS is expected to be at least $0.20 per share.

Positive Outlook

  • Introduction of new therapy products to diversify revenue stream.
  • Aggressive product promotion by the salesforce to ensure sustained profitable growth.
  • Expected return to approximately 20% top-line growth in the pain management division in 2025.
  • Fourth quarter 2024 revenue is estimated to be at least $53.6 million
  • Fourth quarter Diluted EPS is estimated to be at least $0.09

Challenges Ahead

  • No specific negatives were mentioned in the provided report.
  • However, general risks include obtaining CE marking of new products, acceptance of products by doctors and hospitals,
  • competition from larger entities, keeping pace with technological changes,
  • dependence on reimbursement from health insurance companies, and reliance on third-party manufacturers.
  • Economic factors, such as interest rate fluctuations

Revenue & Expenses

Visualization of income flow from segment revenue to net income