NASDAQ$ZYXIQ

Zynex Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Zynex reported a 69% increase in revenue and a net income of $1.3 million for the third quarter of 2020.

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.

Headline financials

Total Revenue

$20M

Previous: $11.8M+69.5%
EPS (adj)

$0.04

Previous: $0.05-20.0%
Adjusted EBITDA

$2.4M

No prior period
Capital Expenditures

-$759K

Previous: -$132K-475.0%
Free Cash Flow

$1.76M

Previous: $4.07M-56.9%
Net Income

$1.33M

Previous: $2.03M-34.4%
Operating Income

$1.41M

Previous: $2.5M-43.5%
Gross Profit

$15.7M

Previous: $9.56M+64.6%
Cash & Equivalents

$41.2M

Previous: $11.9M+245.5%
Total Assets

$65M

Previous: $24.7M+162.8%
Stock-Based Comp

$730K

Previous: $258K+182.9%

Revenue & EPS history

Zynex · Revenue · Quarterly

$20M

Q3 2020+69.5%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Zynex · $49.9M total across 2 segments · Q3 2023

  • Supplies
    $33.1M
  • Devices
    $16.9M

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports

Historical avg

+0.4%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-6.5%

Avg return

30 days after

46%

29 / 63 earnings

Positive

+38.5%

Q3 2014

Best reaction

-51.6%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2024-51.3%
Q3 2025+0.0%+0.0%-98.2%
Q2 2025+0.0%+0.0%+0.0%
Q1 2025-25.6%+0.0%+0.0%
Q3 2024+9.1%+0.0%+0.0%
Q2 2024-11.4%+0.0%+0.0%
Q1 2024+2.8%+0.0%+0.0%
Q4 2023-8.8%+0.0%+0.0%
Q3 2023+17.5%+0.0%+0.0%
Q2 2023+3.3%+0.0%+0.0%
Q1 2023+2.5%+0.0%+0.0%
Q4 2022+16.7%+0.0%+0.0%
Q3 2022+15.0%+0.0%+0.0%
Q2 2022+13.3%+0.0%+0.0%
Q1 2022-8.6%+0.0%+0.0%
Q4 2021-1.7%+0.0%+0.0%
Q3 2021+10.0%+0.0%+0.0%
Q2 2021-19.3%+0.0%+0.0%
Q1 2021-9.2%-12.0%-6.3%
Q4 2020-21.2%-22.4%-18.8%
Q3 2020-6.5%
Q2 2020-6.0%
Q1 2020-1.1%
Q4 2019+3.1%
Q3 2019-7.9%
Q2 2019+9.8%
Q1 2019+7.9%
Q4 2018-11.1%
Q3 2018+3.4%
Q2 2018-3.3%
Q1 2018+4.5%
Q4 2017-20.7%
Q3 2017+6.6%
Q2 2017+34.6%
Q1 2017-5.6%
Q4 2016+9.7%
Q3 2016+23.1%
Q2 2016+34.8%
Q1 2016+0.0%
Q4 2015+0.0%
Q3 2015-4.3%
Q2 2015-5.4%
Q4 2014+0.0%
Q1 2015+0.0%
Q3 2014+38.5%
Q2 2014+2.2%
Q1 2014-0.2%
Q4 2013-3.6%
Q3 2013+13.6%
Q2 2013+7.1%
Q1 2013+0.0%
Q4 2012+3.4%
Q3 2012+5.6%
Q2 2012-5.1%
Q1 2012-6.3%
Q4 2011+0.0%
Q3 2010+12.9%
Q3 2011+12.9%
Q2 2011+1.1%
Q1 2011-8.2%
Q4 2010+0.0%
Q2 2010+2.0%
Q1 2010-51.6%

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