
Zynex Appears Poised for Momentum Following Sales Force Expansion and New Product Launches
10/27/23 (written by: Scott Gleason) Zynex has reported its results for the third quarter concluding on September 30, 2023 and delivered 20% year-over-year growth in Q3 2023 revenue with sales of $49.9 million, in-line with street forecasts. The company saw an increase in orders of 39% in the third quarter setting a new record in terms of order volumes. The company also introduced three new therapy products in the pain management domain in the third quarter. The products include the Zynex Pro Thoracic Lumbar Sacral Orthosis (TLSO), a versatile back brace designed to support the mid and lower spine. Additionally, there’s the Zynex Pro Wrist, an adaptable wrist brace suitable for a wide range of wrist-related pain management needs, such as carpal tunnel syndrome. The third product was the Zynex Cryoheat, a localized therapy system, offers both cold and hot fluid treatment options for use in either a home or hospital setting. Management also noted it added 50 new sales territories in the quarter ending the 3Q23 with 480 reps, and long-term plans to reach 800 territories.
The company also noted investments in its patient monitoring segment. The company’s laser-based pulse oximeter, NiCO, is poised for commercialization in 2024 following FDA approval. The company also noted its next-generation noninvasive CM blood and fluid monitor is advancing, offering improvements over its existing CM-1600 system.
The company had diluted EPS of $0.10 in the quarter, above consensus forecasts of $0.09. Cash from operations in Q3 was $8.9 million, and as of September 30, 2023, the company had cash and cash equivalents and short-term investments stood at $52.4 million.
For the fourth quarter, the company is anticipating total revenue between $52.5 million and $57.5 million, representing a 13% increase from Q4 2022. The estimated diluted EPS for Q4 is expected to be between $0.17 and $0.22. The guidance takes into account increased operating expenses for the Laser-based Pulse Oximetry products’ FDA submission.
The President and CEO of Zynex, Thomas Sandgaard, remarked on the quarter’s accomplishments, emphasizing the sustained profitability and record-breaking positive cash flow.