ZYXI - Earnings call transcript Q3 2021

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Operator

Good day, and welcome to the Zynex Q3 2021 Earnings Conference Call [Operator Instructions]. Please note, this event is being recorded. Certain statements in this release are forward-looking and as such, are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Risk factors that could cause actual results to materially differ from forward-looking statements are described in our filings with the Securities and Exchange Commission, including the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2020, as well as Forms 10-Q and 8-K, press releases in the company's Web site. to CEO. conference like Sandgaard, to now and President would turn over the Thomas I ahead. go Please

Thomas Sandgaard

Good afternoon. quarter Solutions. is both focus Welcome we My on name be of to of and will and Medical, our Zynex. our CEO pain divisions; XXXX where activities management; third covering earnings Zynex Today, Thomas call. in Sandgaard, we President Monitoring Zynex'

second to to our increased being quarter for believing sequentially gratitude excited Net in made In anniversary week I'd couple past the Zynex announce income. It XX-year having Before revenue our compared organization. operating income shareholders we're demonstrates has operations, just card, with to worth mention of which I'm and certainly four employees of and the for to at into want to boot the just net accepted Denmark. a starting of record long a all of loyal our Colorado and details a business my like looking I context, is that that road me this five get investments of as performance we financial the model. public years, well and from another to a thousand company a yet I in the been this express the leverage as on quarter, it. from XXX% achieving our strapping, bedroom sales in make to being our the of hard business and the moved results credit but so one to our working success

year. the quarter history the compared increased Our to the third and is last highest revenue quarterly in revenue company's quarter $XX.X of XX% same million

to the and corporate that, a This quarter, We last seeing quarter our entry, continue higher headquarter, how of politically of to market important has a been the dealt we saw the our These In than good chunk billing. are in second continue in keeps third up with in XX% emerge reps. XXXX, workers, trend year. the still of ability we're flow insurance of job growth. big employees impacts half with keep the third quarter second shortage at came order and orders leading our unemployment to for positions hire specifically order to including home, enrollment patient sales the overall workforce significantly see

also pay significantly a seeing there's are and most the same movement lot representative. especially We the for as medical, inflating dynamics of of sales businesses, where

have trimming improving growth hiring bonuses, increased to also productivity incentives We which keep et sales we led are than adjusted growth for a hire, quality sign-on our slacking to to plans minimum and increased currently such space criteria as competing reps. of have cetera, rep entire that sales nonproductive decent the instead in rate. on per Rather has our more focus force, and our of on

sales reps third anticipated, competitive quarter, we in XXX,XXX number term is XXX up third reps led decrease profit resulted end expected a and rep XXX,XXX, than to sales QX of which earlier in productivity this grew higher quarter per in and the approximately the to job The obviously therefore, our compared of the at to year. the reps approximately during productive XX,XXX market in compared our quarter. near active During has less The the last The sales the reps. trimmed trimming second average of year. quarter, rep highly focused to a of revenue almost on less the previously third reps than to sales

to The level chain opioid for In to COVID and no the to due strength have business. off possible opioid which levels working increased country to nearly towards report our conservative supply opioids our Currently, the in inventory, resulted XXX,XXX response more line patients issue first treating took to epidemic we to we this we're supply levels happy reached impact level in prescription chain get inventory physicians that defense more continues has in had position use year. the be our a during and and in when date, die our issues As we've pain. normal abuse. back technology discussed previously increasingly any moved the inventory we're devastating third where issues, serious and as yearly quarter, of this to regarding a

has more We literally make develop to side our effects. that technology no continue tools to of physicians aware

still NextWave for rehabilitation treatment for and the product very incontinence our these the as management management NeuroMove and of best some pain markets. well stroke products puts for as in products for rehabilitation, a pain strong in stand out us the as in rehabilitation The position Our InWave industry. device

unmet the In divisions, potential Volume continue Solutions product significantly Blood as for our our management months, great Monitoring area We to pain Monitor. see existing activity to past six in we our have as well Division. both potential increased revenue huge our for the five in generating

triple capabilities centers. more we the across country, studies provide We initiating our also looking at and that our technology staffing can and hospitals the and increased consultants, value aspects several are while than clinical different have more surgical clinical of research

the over for we monitor centers. to and probably is CM-XXXX monitor most patient's fluid in to CM-XXXX a As monitor hospitals ago in ready and know, surgical you fluid get our intended managed production. claims balance have product a and year FDA The noninvasive blood of

target ICUs to needs biggest bleedings safer complication and detect fewer surgeries, occur. until product typically that believe less We to today. common serious rooms one are We mortality, lead and will surgeries in expect to complications difficult and substantial well to the internal hospitals blood this as initially display today and loss recovery of ORs where as unmet

from at device hospitals solid the device results a more preliminary that preparing shortly. and interest see have in on on Forest, to studies a from commence study continue we're seeing to device We clinical Wake purchasing the We're demo.

CM-XXXX Zynex Monitoring you prototypes generation be Division, to and building doing what next Vice his long-term plans. well as today, we've in will easier details Donald our Our of background, Gregg, we us underway as devices well settings. been with team will engineering in to that fill use have President surgical that And is short of more the as with

Donald Gregg

everyone. Thomas. Thanks, afternoon, Good

Let decade me leadership myself. for in to background on leading global pumps, health some various start and with high-tech and and XX multinational products I've medical respiratory about bit the businesses industries start-up a corporations roles. informatics spent infusion device consumer and in over executive years a in

cleared mentioned, As most of Thomas as the fluid a volume know, probably FDA you monitor the CM-XXXX year already ago.

balance to the hospitals of end our The monitor noninvasive on by CM-XXXX, is been calendar the and wireless in a version, monitor the submitting centers. FDA has XXXX in patient's focus Our the year. surgical to CM-XXXX the intended fluid current

primary We space, operating challenge. target two there losing known is to or volume. are to a Number In question and blood too that expect overloaded fluid be surgeries fluid. clinical rooms, much being The fluid triple initially is overall patient addressed. one the this responsiveness need settings care fluid areas is, with where is or

to and including Therefore, and product therapy is second if hemodynamic than in Thomas today. stability biggest complications and die surgeries, lead less are This course, post-operatively. We mortality, as unmet mentioned. on hemodynamic very to instability. intraoperatively, we had of hospitals this the believe will largely pre-operatively fewer safer of due one morbidity needs focused able more status and or understanding Incorrect receive outcomes, can fluid important fluid to lead patient know the mortality. negative is The the and most postoperatively Patients increased fluid severe perhaps should to more and not. being one, probably frequently

into commenced We additional continue the results to Thomas as see with that relative from very study continues index prediction promising well. to QX. on donation blood preliminary Forest. fluid the studies body. for device loss in study in and that clinical And blood we've a algorithm refine of patented study is Vitalant Wake apherese to Forest Wake of results, started reinfusion components, as We've the planning mentioned, fluid a at publish specific our blood

clinical that for starting we for priority other footprint this specific to dialysis our year where the index investing study patients. of to to a fluid expand of a are relative and robust monitoring care We Additionally, fluid areas characterize clinical us with enable loss. to change a expand values in cadence continues is evidence plan heavily are calendar observational into

at We San in a very trade Anesthesiology XXXX Diego. have successful show

also the might there the was our in KOLs the and know excitement need hemodynamic or post leaders ASA opinion as conference, They this surgery. both key You are to on significant stability internationally. in from and US validating our during focus interested very

version work half their continue should of are monitor not? that field to patient interest device in first to to seeing XXXX. from in us in algorithm on give approached question on leading of, solve the focus We have hospitals placing pipeline CM-XXXX the or fluid purchasing commercializing FDA our the the post the my develop predictive closely We I and significant wireless we and several the of clearance anesthesiologists

Thomas Sandgaard

Thank now to you, Don. Moorhead, turn I the call will our Dan CFO. over

Dan Moorhead

Thomas. Thanks,

that to First, compared million review It's $XX year. grew in million worth quarter XXXX. to to revenue XX% Orders our increased third I'll revenue year-over-year and sequentially XX% third QX. Supplies XX% quarter in million were margins to $X.X from year-over-year $XX.X increased $X.X of compared increased in $XX.X revenue XX% $XX.X from Device XX% results. XX% QX Gross XXXX XXXX grew to XX% also to revenue million. compared last million the net noting QX. million

of a we new pressure XX% to expenses mentioned reimbursement order to XX% we force in of that patient support the during grew Much we year. transitioned and As year. Sales production due as increased growth. facility year-over-year. increased margins But margins sales QX, and on able XX% to forward. been functions increase we've facilities margins to the our which expense related the better increase and volumes G&A to gross growth. and get expect throughout headcount We some our warehouse still XX% pricing, was during increase range marketing and to and year-over-year previously, first half our to between related going put our continue

per Adjusted XXX% increased per during of income $X.XX income third expense were increased were net and I'll or year-over-year Sales EBITDA XXXX. grew and XX% nine also noncash, $XX.X the the $XX.X grew XXXX calculation was year-over-year. $XX.X million. net expenses XXXX. of Both XXXX. year-over-year, income net standard months first Supplies margins and expense other highest was $X.X million revenue diluted Gross lease million, results. our $XX.X the year-over-year, per $X.X quarter stock-based million million noncash marketing to Orders compared share and increased net nine million was XX% from $X.XX comp, which million severance, million G&A EBITDA, is XXXX records. revenue Device in $XX.X which share company and from press year. last quarter for and $XX.X to of XX% $X.XX of an XX% revenue million reconciled month share or earnings per XXX% months increased expense a our in a $X.X release, now review in in share. $XX million XX% the Third year-over-year nine to increase compared to diluted was is exclusion plus net diluted was million and to history. X XXXX. first EBITDA income $X.X in months Adjusted income XX% company

record balance includes sheet, on and to during that buyback, quarter XXXX, as also stock our cash the quarter. million our balance million XX, $X.X the spending expired under was profitability XX% of just during grew On our the which $XX.X September due and

that, XX% up Our I'll XXth, over working million capital $XX.X compared With turn to the September call was Thomas. back QX. to at

Thomas Sandgaard

functions. Dan. quarter growth management in and order investments sales with record profitability. of and clearly the personnel, XX% and revenue you, our I'm sales our the support justifies Thank third inside pleased It

year further and continuing traceability within the sales patients continuing sales the G&A, Our most helping remainder to more and is to to rep leverage investments as gets sales we our importantly, focus for experience, in productivity pain. the of our increase force made improve

year to due profitable a We EBITDA than adjusted $XX between and is fourth full million million $XXX XXXX. $XX estimate more QX pace revenue our our XXXX's XX% in an will $X revenue million range revenue to market, at million slower $XX.X $XXX fourth in quarter $XX.X We XXXX and it than between current The and into be adjusted and and $XX continue with years. fourth between prior million. quarter quarter force is to EBITDA million the labor come and estimated sales growth between with but will XX% But million, million. tight revenue

My management full long also in positive rehab year are The of continued million. of revenue due includes of expecting to QX electrotherapy domestic a and the is continue prescription acquisitions XXXX's void We full revenue to and approximately XX% market to the well of advantage term the in as our as $XX.X for pain seasonality force to estimate the after significant deductibles cash profitability. to above huge year growing our of potential is disappearance share flow market take main our This huge goal complementary of technologies. XX% grow and for competitors. our division sales

orders the and summary, growth Our the profit long the strong of and in revenue We're US with two. Solutions get the more have remainder increase and We're goal far our revenue extremely has fully staffing see well made year is rep XXX the and we we expect two year to up this this activity. to announced and still all takes growth orders In filled progress recent We sales in term year market. to so continued the by growth the territories, fill in pleased it and encouraged sales that division feedback productive. fully next half the Monitoring we division what in or make the which and productive. to in drive profitability, from strong we over reps and accomplished during a and years in positive in during

from questions answer now will We listeners. our

Operator

[Operator Instructions] Thalmann. with comes from Jeffrey Our first Cohen question Ladenburg

Jeffrey Cohen

the well. commentary, bit you for Donald, about about I complementary the for channels and business plans your fluid your as approach? various as commentary, as with and also how acquisitions a the for comment as that far as and think the we XXXX CMS if And there about commercial far business should thanks maybe and Thomas, channels So the as growing could the your as for thanks talk little the as far monitor. dealing they out wondered

Thomas Sandgaard

as could reimbursed as and management at how regards both as codes force country. of a range be to that could huge products have we're already are also and there. fully pain opportunities products So different and divisions, well into long, that well those across typically history developed the and into at the opportunities that would being type looking the well solutions have it looking product division, long could It's call fit and We're opportunities fit are to are the we sales see into by about that I'm thinking at companies, we in out something there. monitoring looking that of reimbursement fit point rehab complementary little that our insurance the

manufacturers, So that, kind we're looking And opportunities. at distribute that obviously of from traction, we devices. while at other we're support low products cervical as such back looking

We will post-operatively. therapy and and soon cold be used introducing hot knee also braces

products those other from So we are manufacturers. already distribute

space. into out that with at that Monitoring and could of keep invented Solutions, that opportunities monitor fluid So are strengthen to looking there have we're been line. we that many at potential blood sepsis product also fit looking in and terms technologies great so well fit monitoring there And potentially and our

keep has know, pretty at nothing materialized you yet. those we looking I’m those about things, stubborn as and So opportunities. But

Jeffrey Cohen

with BXB with organization multifunctional bit going ASC hospital would environment? beyond. current little talking more your in-house environment you're clinic direct and kind pain So model then environment or the when of about a be you And or the sales

Thomas Sandgaard

we small sales territories across There's all they Well, fairly total pain radius. a force the our country. obviously have and management, of XXX -- a

that primarily how insurance to And the go physicians patient's then get with especially the us demographics, we surgery. a into sell And they They with directly. bill is we're orthopedic So and get to that they here. paid. that's able prescription health patient and in sent

multifaceted arrangement, as the apply centers. division of our and and Solutions larger be or a Monitoring force of sales well direct distributors of separate hit strategy salary base to mentioned sales a Division, hospitals as force private but expect commission that some very pretty come. direct a could in or either to see labeling much with In companies, we OEM But top a surgical could to that have an it's that. as we them on potentially as I before, there as all where licensing So market expect working

Jeffrey Cohen

a two Dan, of how we an a trend the similarly the outlier? is some thinking were we yesterday, bit for quarter. lastly, one next Very thinking be of should QX the or or it to then of quick margin But or strong for side. you, And on representing it's year

Dan Moorhead

No, I to think that we XX% still expect XX%.

Sometimes we're close it's on on but we're the higher sometimes lower range. end, the pretty end, that to always

kind basis the still So to XX. the I all. don't of think changed modeling going has formula know I that's forward that that is at XX

Operator

from Jeffrey. Our Matthew Piper with comes next question O'Brien

Matthew O'Brien

as end us with? for numbers to many just Can far how sales exit guess, and do I starters, the maybe then the Dan. reps expect give you QX as at you of So QX

Dan Moorhead

we what the showing at one the think quarter. I we about is XXX of it in of had, the end were closures, was

think and I you're think anything are should going be of some net it's around as up or minimal. year, we'll of add said, productives less we be the some trimming don't the Like the end to to people new Thomas materially pretty down. change But going see there. well. I

Thomas Sandgaard

limit simply to can force ago There's compared to lot it a sales was a much now to how we easier. the year where a add

it limitation that how exceed in maybe will keep a with sales that little what our current are just up many therefore, bit on are or adding barely people force. we not So making

Matthew O'Brien

QX sequential last higher roughly, And the you bit before the as was from year a year that, year it the guidance, in QX of COVID then a terms little but at about million know at it's did midpoint to before what year. I the than bump I look $X that. that's guys the

productivity QX up getting give there able been you to the here bolus is ramp QX? of get people a the expectation you're expecting comfort in of access or if to of in wondering that kind haven’t that there's midpoint the in in just range So I'm that some of

Thomas Sandgaard

relative because absolute I big as as keep increase the the would numbers you is say bigger, so the not there. getting increase see

of So we monthly just this a and orders keep more of them the periods terms the supplies accumulating that revenue et maybe reflection have generate prior been is in rentals, cetera. in and shipped already in from

compounding getting more numbers and bigger. the So just are of it's a effect

right, of boost. you're an it's more any and more So therefore, firing something like at increase. significant $X more a But you're effect cylinders more of we're million -- than on looking

Dan Moorhead

it in Like I as think, at raw year, sequentially, a well. said, are past. But we've as as to more the percentage, little more last and done bit little we actually, the it's you numbers what percentage look similar Matt, we're if too, up a up in 'XX, a we a were bigger.

So is say last wider down in compared it's and little this the a a would I spot, year, to year. we're little same bit generally obviously, range but the even

Thomas Sandgaard

have definitely deductibles we and of But far weakest QX seasonality by always met. strongest, was patients’ boosted being QX the by being the quarter the insurance being

Matthew O'Brien

commentary today Last blood one just product just there's overall. and the monitoring in that me a on the is for side, on script lot of

as as do a number 'XX even business out little sales seems have year, this will a increase, revenues curious the still as head we that go? as pretty I in like just as at Street the I'm you is it to comfortable at though flatter where of is bit with force healthy numbers year. you of far coming And are the mean category be next going kind for So anticipate far I then as what impact into 'XX. look it's

Thomas Sandgaard

we in we Well, well terms on support at we least organization, should $XXX that the how in internally collect. the internal the revenue. to beginning to what into get of million Obviously, have infrastructure, we're we cash And the and can one. that force to answer much annual sales very million maybe are $XXX of squeeze I out can obviously, bullish

so And speaking, in be will start slowing might growth it percentage-wise, big our relatively dollars down. naturally but

terms our yes, year So be of expenses. we orders and and at planning really revenue where in this next of in point, finalized haven't terms we'll for

be think even until optimistic we achieve some at very levels. we'll We we're able we'll have early here growth revenue of earnings to the year before at ideas. to analysts. wait we call to rough comment really these the have compared next amount might our And as just can to I But on be next on, where

Matthew O'Brien

And the side? monitoring blood

Thomas Sandgaard

speak revenue can to Don Maybe the in potential that.

Donald Gregg

like really for been thinking through of strategy force. have of we our sales focused design been submission the our what on the FDA We've wireless currently So CM-XXXX. the looks

traditional FDA XXXX. that will back in XX, be I see As days the XX-plus of the we'll revenue the half in mentioned earlier be it submission this We're will that very our commentary expecting year. to and maybe a

We preparing QX plans commercialization be QX. in our and will

I be the execution executing a small with early that. will but certainly for direct so sales of late indirect numbers We half very for specifically the QX, and you in start not sure XXXX. phase I'm XXXX, of this force some exact first in QX a probably will have important

Operator

Our Yi next question from with H.C. Chen comes Wainwright.

Yi Chen

could My number the And XXXX? is revenue the you us improving. also, first target comment of is, rep expect do soon to Can average achieve how you achieve on been per revenue rep? And has tell question sales what you of end aim to generated the you average that? per by you mentioned your reps that

Thomas Sandgaard

but long some that term ones in but will And average little we right a revenue that that better that order. planning Hopefully, they million reps. producing can be than from territory. year brand still within around per will question decade more might mix on that average and rep, we revenue long a are And seasoned of towards sales the of in sort in $X terms backwards our therefore, reps be per be sales produce We term I sooner half take in sales know a $X so if your up In million rep. the the out. there new

target changed. that hasn't So

how type expect we there's want whether of now, normalizing of next very, now. supply saw people come of a the employees, If our assume potential the very Colorado obviously, levels of and and to can the get start close demonstrate have of quarter next the But here work in in I if see to as then right would States year. across XXX United that terms end the second to year, by headquarter things us back workforce get expect first corporate of reps very seeing of well sales couple and to sure challenges or is obviously the that But we're many goes, be here I'm on next In shortage by significant that that we now matter years role of the a demand right same it's we playing will damper XXX ago year. put how over again end bad we in reps supply/demand no the to terms right it. we'll the a end at by

Yi Chen

a you next expect is, question commercialized NextWave the similar gross my And have will margin? CM-XXXX when to margin do

Donald Gregg

you margins software you'll on has this And have have on capital a strategy the disposables. disposables, high space, on at Traditionally, that a the on a very CM-XXXX, you device it disposables, a has monitoring in you'll high margins margins device. network software hardware, of it's and because razor-razorblade look the have the it's the and it business, margins network business. type has in software, piece have equipment, When you'll the on margins this

would manufacture the bit bit a so for we'll call manufacturing in I'm reduction be cost high focused will margins and what design be And little I side. significantly the volume. higher if on this better on par, the and We've not, in can disposables on our wireless we that expecting a software so and capital on

Operator

with Marc from question Riley comes Our B. Weisenberger Securities. next

Marc Weisenberger

prescribe kind generate orders talked to you've companies to new and generating done? orders. any with direct route lowering telehealth becoming in of You've than provide nontraditional growth can you potential of the about doctors maybe to reps working it maybe new for that's to NextWave Have rate a access difficult onboard who the thought historically

Thomas Sandgaard

in developing between and the of and in it. high we've subsequent across incredibly revenues a our at certainly orders we how seen how and up sales And successful result Yes, works rates we growing looking been company also country. We a physician high representative have good filling relationship certainty revenue. a terms with growth of have from terms the of thought well know We're that. about as a territories

if could reps per average sales XXX approaching profitable, having hopefully on That sales that, us. knocking you question say for provide of specifically, be market the successful, relationships. all now, XXX and what point one then direct The and the looking that a we're in And efforts we potentially externally of as could distracting reps be and at if reps further, extent look And the as also territories can right force, sales of how the potentially, unlocking when sales sales revenue that more those top relationships, and at And which to XXX So the that way more versus building the business. we would growing get million to area. we our that add try would strategies stick being management grow building maybe we us be potential the of reasonably ways is for that potentially result makes rep. traditional $X on not internally the there really develop another is pain in definitely as the successful now. could doors to to of to

force we're looking there. as could XXX now, further all right at we options sales So of I sure and make very productive with get it one grow territories we filled apply. then many eventually want But to from

Marc Weisenberger

billing quarter potentially either conditions necessarily results the of the Could from highlighted? for current department in what in drag Sticking theme seeing back on the tight from growth a little kind fourth and any the quarter, office you maybe or not the the bit more constraints but maybe you're maybe quantify potential on you labor labor that sales longer. slower

Thomas Sandgaard

approximately, Yes, throughout say, would unfilled XX open and I we the positions. corporate have XXX office, between

that still So orders. the that obviously means processing we're

say. I severely would every are department, department, every We in nearly understaffed

position you obviously this there get social orders be, the like may are the environment market to the that. or and in grow team now that and that things specifically not versus doesn't are like year like work and on necessarily geared more organization same that be a that where hopefully, reaching better you that eventually just we difficult building to see work towards There all whatever task job there coworkers extent from and structures things period in of may be do get build in them fast as that. more many a processing less a an organization your of nature maybe building might know are activities the However, focused to do doesn't of that a But goal an have part build done. for in let's, many that against future. month's as are a not will good them We

are intangible work the are things. while the -- those we're get now matters that's we of up. really some So We more what and staffing done

a in force. net we addition we Every week, to more are have adding our net sales contrast than are We losing.

but definitely So quite here, better. we're still seats. empty There's could it a ground be few not losing

Marc Weisenberger

that you management of allocation an right the It near any noted the split there? is where the and stock Is level have ended and pain the think kind now. talk term? capital elevated monitoring there And seems that wondering Dan you maybe on that about cash in of balancing buyback could reinstate if to then priorities, in plans the I September right based now. I'm

Dan Moorhead

I'll we start have and know repeat don't think types I on got where with things. but your business table. activities reinstate immediately need Marc? we of the definitely see the it's But look buyback. question, other intention to the any those is capital you that on to allocated We Everything current it Can I table. and

Marc Weisenberger

and allocation, pain In forward? terms of of kind the split monitoring capital between going management

Dan Moorhead

million between is normal making is quarter. running million running investment pain and we're a activities, expense probably talking $XX we're just in you're of significant XX% to operating in -- I though would even say, XX% per Monitoring, $XX If management still it, that.

So top probably you piece and still, it's million year. This million. between is year, of another we this And if far, year. probably it's a by grown at that. the year year, Last pie close full next million probably $X we're $X.X of million, look definitely to $X.X $X small on $X but the were million

that all and hitting But activities about, Thomas Don the within the So it's there's there. there's some talked definitely -- definitely with plan. P&L all expenses

Marc Weisenberger

between provide the more you fluid overall can status? detail versus fluid the understanding volume on Don, difference

Donald Gregg

well. asking fluid into you're what's So are if fluid. is challenges fluid ensure a and important anesthesiologist, are are fluid responsiveness. volume if some is organizations patient should Today, the And getting of to there want patient most your clinically, overloaded? many put kind related, have things that's your But because most can focused you fluid figuring on, status or reason a you in the predictively about not yourself, conditions. from cardiac surgical slightly fluid give one question overall, address different is somewhat give to responsiveness that you an stability very need is the is, of but you that important are is that's they they out fluid setting important your as because of around losing if or because And standpoint. We that to patient hemodynamic

Marc Weisenberger

me. for one final a just then And

let's mean business of the consumables the initial sales, you generated I you revenue the of tail of think the stop at device consumable to would still we kind revenue? end and of able to off say, you order, revenue? kind fourth see if long long that's generate were What how for quarter. be the consumable of all do As runway the

Thomas Sandgaard

a But the you of even see part as would be reporting, on next scale. our significant and revenue part of our on it's for obviously, Well, very significant an more our declining it a decade, profitability. obviously,

of example, see wouldn't insignificant numbers an slide somewhat you when quarter, it today's that So would much be a it to than out. as so more you're just will then compared five the years barely and down first dip

from absolutely tell and a got disapprove get will the pay still and patient prescription and we forget monthly forget consuming, about it they're approved we between. even the and a on and in if no subscriptions or us if has revenue and goes device the insurance stuff to all So as supplies it to rentals that

Operator

Securities. Northland Our next with question James comes from Terwilliger

James Terwilliger

questions. of couple A quick

they're congrats question much nice numbers. number. of that, I you much reps that an how that become kind all, quarter. trimmed, have many you just & on how or for depending versus a Those is how on revenue but EPS call existing percentage give territory make a reps And reps what clearly, My And percentage have not six or medical been them you do getting have time many then you've you make you had time turnover loses my much is new First it's terrible to of percentage do rep, when good then understand a It's maybe think and it know it's decision? you turnover lost keep brand guys Johnson territory in first of to But then give hey, them devices, Johnson. if a months I a a able turnover anyone gone before to productive. done? of how to This job are sales maybe at We XX how great again, for trim? rep you that. and you it's do before a months have? days the growth a

Thomas Sandgaard

with nine more six have Well, many, quite the can would the don't up with. than at added year, more running gave should There specific had we have We all to off them it. of time, gave -- obviously work we because of sales second say more time XXX and of quite them especially here quarter a made managers. eventually of was our imagine XXX usual never And me because months, sales we rid down went that our half than last you about those number all nearly few We last in the to a but added that, of we more. give I I when got XXX numbers that was reps, to sales all and end from -- reps obviously don't enough net it, answers those six we XX have or to really that to months. say, to that just I a lot regional managers get they those XX I among so regional only had few been -- those to you

gave lot to not the reps get of with a a with also dealing model running. of existing and the that work them the holding So reps brand new we hands is sales but lot to only

the last given normally so either with than I normally have couple we them will days And of the we But normal normal quarters, would reps managers sales beyond were we not. do. our XX would chance than what make say to because longer simply it after a gave the and the that right or in see work therefore, more have

people up worth going that make it's not So because a lot cleaned it. are we not here recently, to caring have

don't calculations XX. Now definitely couldn't put gone know, people building net before let's has of it's I talked the the turn about when specific we just But really. it. a we about way, sales at we And lot obviously it than rates who cadence. that have the force make keep down a slower have by

James Terwilliger

or guys issues at And you of actually the and pressure My the numbers. --? I else in price is are second real so or the it else chain the I nice companies QX? did supply anything anything lot can on you gross margins. gross get guys call came the well you But in there I add? there maybe margins then there really add could are is the a talking about gross I having everywhere. you XX%, that increase. you -- during wonder can anything Is of I on earlier question how think, is add the is say know the thought was heard you XX%. margin a it quarter in, trend terms price XX% that at gross range there's margins to here XX% in if increase actually A did a on I'm with to

Dan Moorhead

pricing we normal the side said, from have Like gotten I just suppliers. really operating. It's the better on

significantly couple years. last increased have over volumes the of Our

that from obviously, perspective. so a And pricing helps

Thomas Sandgaard

prices, cost on not our our… On

Dan Moorhead

our whatever all. Our pricing wanted, revenue the or hasn't at MSRP retail, you changed

we So and that percentage and then the just revenues investments the and improvement absorption absorbing, lower. facility higher I like production lower there. really get it's as it's said, And those in made higher, gets things

going factors continued So margins. it's is again, I have forward XX XX And really to to reasonable. those drive two think that

it expected within the may range. not XX, or it but may So all XX always that's be be XX

James Terwilliger

good very very, a it's number. No,

going I think to at conservative. XX forward, I'm trying be

patient with the some is conditions next how My independent the division? today? know it great is and strategic the I monitoring division everyone maybe as the you're is, So XX big partnerships is distributors. current How looking is patient number, under. monitoring a especially for operating sits question big

Donald Gregg

on the focused CM-XXXX Today, we the version have of wireless and a engineering mix both of CM-XXXX.

team people that, size we've very to of on focused. In trials. quadrupled addition strategic kind running clinical the focused of have I be to And the and

commercial that the QX, of XXXX. team additional see built be You'll in frame will QX time

XX to so and contractors around XX And somewhere staffed things we're that. like with

James Terwilliger

that's your I move had Delta, important And are coming of in very are a concern delayed. numbers with lot My procedures is into I as next COVID, Florida like question Concern with we with down product think happened in. year. a being maybe good. what said, last I And very

with thing have device think other they're sailed hard to right or the of impact impact it's Texas. the the medical out know you have same going your numbers? that impact are numbers on companies. of patients on hospital Do any Sometimes guys that? I coming any through kind you you catch to Do that think your

Thomas Sandgaard

us except lurking seen general. little also mentioned state which is decline state, reps individual a COVID noticed of second in really was It's We the second quarter COVID, doesn't. where then, more and performance but of in you by in overall, And biggest we they right incidents that those haven't sales year infections for seen there how last get Since really still uncertainty eventually reps clinics has COVID haven't impact. to and with the I morning, bit, you any XXX it this the that It's lot a deal dictates now. Florida, big think how the or that's built. of a relationships sales their

very So procedures, medical be back to able they'll of quickly think, being do cetera. I level et probably to another

Operator

session. Sandgaard This I closing to back over any the for to Thomas turn question-and-answer concludes would our remarks. conference like

Thomas Sandgaard

to listening in all. Yes. great earnings day Thank this call. and you. a and been for appreciate I Thank call I has and everyone, Zynex informative you, the today's hope into interest

Operator

presentation. today's attending for you Thank concluded. now has conference The

You may disconnect. now

Zynex (ZYXI) 3 Nov 212021 Q3 Earnings call transcript