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ZYXI Nasdaq· Zynex Inc
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ZYXI Nasdaq· Zynex Inc
Earnings report Q3 2023

Zynex Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Zynex Inc. reported net revenue of $49.9 million for the three months ended September 30, 2023, representing a 20% increase compared to the same period in 2022. The revenue was generated from two segments: devices and supplies. Device revenue amounted to $16.9 million, while supplies revenue reached $33.1 million.

Strengths

Zynex Inc. demonstrated strong revenue growth in the latest quarter, with a 20% increase compared to the previous year. This growth was primarily driven by a significant increase in device orders, which rose by 39% for the three months ended September 30, 2023, and 49% for the nine months ended September 30, 2023, compared to the same periods in 2022. The company's management attributes this growth to the successful performance of their ZMS subsidiary.

Challenges

Despite the overall revenue growth, Zynex Inc. experienced a decline in net income for the three months ended September 30, 2023, compared to the same period in 2022. Net income decreased from $4.9 million to $3.6 million. Similarly, net income for the nine months ended September 30, 2023, decreased from $9.6 million to $8.5 million. The company's management may need to address this decline in profitability and identify potential cost-saving measures.

Noteworthy

Zynex Inc. reported a gain on the sale of fixed assets amounting to $37,000 and a gain on the change in fair value of contingent consideration of $245,000. These gains contributed to the company's income from operations. Additionally, the company made significant share repurchases during the quarter, purchasing 300,000 common shares from Mr. Sandgaard at a total transactional value of $2.59 million.

Summary

Zynex Inc. delivered strong revenue growth in the latest quarter, driven by a substantial increase in device orders. However, the company experienced a decline in net income, which may pose a challenge for its profitability. The gains from the sale of fixed assets and the repurchase of common shares were noteworthy events during the quarter. Overall, Zynex Inc. demonstrated positive performance in terms of revenue growth, but management should focus on improving profitability in the future.

Source documents

Form 10-Q  filed on Oct 26, 2023
70 pages scanned

Reference data

Company financials Q3 revenue 49.9M
Analyst estimates Q3 EPS beat by 16.11%
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