Earnings call transcript Q2 2023

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Operator

Good day ladies and gentlemen, and welcome to the Zynex Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, today's conference call is being recorded.

At this time, I would now like to turn the floor over to Quinn Callanan from MZ North America. ahead. go Please

Quinn Callanan

on and financial operator XX, everyone. today, is Earlier A Thank for good the released available release press results of June company's second Zynex website. copy you, the afternoon the quarter XXXX. ending

are on Officer; President Financial and Sandgaard, me of Chief Lucsok, Operating Officer; Joining Donald Thomas Moorhead, Zynex Gregg, Solutions. Executive President Dan Chairman, call today's Chief Anna Chief Officer; and Monitoring

make I'd like to results call, to remind these and during to future described that regarding statements conference and strategies, will Form the past from review or environment, and you those statements. or begin, forward-looking regarding you materially the potential, future the regulatory this events. XX-Qs, include, company and identify the cause limitation, sales subsequent events filings product specific Form we which differ without without company's in the factors projections factors These operating marketing company's encourage XX-K may statements forward-looking that with Before We including product performance. XXXX limitation, SEC, resources development, actual capital the may

that, With turn over call Thomas. now this to I'll

Thomas Sandgaard

Thanks you us for call. for second everyone. afternoon today earnings Quinn quarter joining XXXX good the and Thank

straight continue of The us Pain fifth our Monitoring of record quarter to quarter momentum divisions high numbers. our highlighted second quarter by Pain was and our profitability leading both order in Management and Xth consecutive

earnings over share. revenue of the the highest increase diluted XXXX in These beating the also company's million, number led previous prescriptions $X.XX we records produced in $XX period a quarter once for received again of and total We records. per our same the of XX% to history

Orders market quarter, growing for productivity considerable XX% to a sales increased the run is orders and testament increase products. rate year-over-year leadership force grows to to Our and we and into there significantly great future. continues believe each the great sales us a force continue

pain our development management oximeter. laser Monitoring division move from monitoring the the our our fluid continued to and to in impressive the profitable forward of Solutions Zynex blood ZMS pulse in addition In results based and or quarter second

to for clearance blood monitor, fluid with settings. wireless to were our technology improve We management second and FDA outcomes patient targeted fluid and non-invasive in better excited generation a hospital volume announce

We his provide clinical data prepared to updates continue collect in and trials Gregg additional product this Donald in remarks. will on further

in laser-based hemoglobin additional to detection for oximeter, this We we in pulse monitor division the Hospital levels, in Products we good a and progress our named to game have believe potential products pipeline have fourth of and year. HemeOx. company. our laser-based early Monitoring division; The pre-revenue the in total for a monitoring of monitor NiCO; of application pulse division a non-invasive monitoring expect submit sepsis; three Overall also we laser-based oximeter the growth will for FDA patient changing an the which made the the quarter is

I am Looking business only with ahead, leader of strength high and as in durable devices prescription a progress pain management making and continue recurring proud Monitoring revenue. Hospital but opportunity. a making a of at-home up model we're and growing significant Products robust real which into a large with to we market the opioid business and ramp also epidemic, the diversifying our operationally dent represented strategically Not execute

half second have and year after growth double consistent see growth produced to strong performance digit of the XXXX expect we following financial We for the year.

of in from of for long-term improve the and shareholders. our forward additional come as milestones pain We and expect strong to our XXXX on bring updates additional quality the of sales value we patients suffering our build illness growth as month force debilitating look continue to products. pipeline life execute or also and new our in we regulatory catalyst to We to in execute objectives

division. With will update on turn a for Pain over Lucsok, Chief more Management Officer to Anna that, the detailed Operating business the I now call our

Anna Lucsok

reps division Thank that increase the revenues. we you, room rep to is an XXX,XXX, revenue is of a quarter significant there XX% and Management Thomas. expansion quarter approximately Pain our full sequential XX% for market increase impressive order XXX first per We second was growth with basis in approximately in profitable, ended had annualized Zynex's over and sales on The is XXXX. another believe quarter year-over-year by team continued and delivering penetration. reach the year-to-date increase volumes sales and consistent over marked

the near-term sales as rep of year, added first reps during those which reps XX growth the net We revenue the ramp new of decreases half in per a approximately the in up.

cover work to productivity our to but focus. of our target maintaining expand continued territories, sales to our force remains sales primary XXX We

are procedures sales fit. our evaluating for We refining and metrics reps developed improved new onboarding reps those have for

have lingering and challenges had processes territories. we a reps but will recruiting quality market, sales the the effect we effectiveness retaining to to improving committed are There some be improved believe corporate to These and related over our and in sales high to these remain in time labor increasing pairing team.

end. to We while reps maintain closely sales order in managing to our well to XXX expenses reps by expect efficiency sales evaluate will over hit year and continue

process regardless differentiator products to status. The of key billing are patients calls. Pain to in directly continue strength work insurance orders profitable team process I coverage market for we available patients our of to updating Zynex all forward be our case. a for to the and receive you another year in all all and look We on division their with and each that insurers our Management their and as future expansions processes

to Zynex President division. to Pain of Management Monitoring ask Don provide Gregg, now updates Solutions I'll related

Donald Gregg

is estimated $X.X Thank about The monitoring market Anna. patient you, billion.

market have that We products be technologies. game-changing to brought will with truly

investment product company's diversify into will cases base, and Our the customer in entrance strategic solutions. is use future for monitoring long-term company's the a set and the

fluid provide of clinicians our the XXth. balance is monitoring management. essential CM-XXXX volume, fluid We for received June to timely toward clinical milestone assess Clearance perioperative wireless will FDA and ability changes in of of CM-XXXX approval on fluid that providing their the patient's the status for significance our an a monitor goal

our We are and key fluid product studies multiple opinion line. development advisors in technology, blood sponsoring monitoring leaders engaging and product within with and clinical to clinical our medical assist on

line our of including non-invasive positively. HemeOx addition, In NiCO and CO-Oximeter products, continues progressing

those We important executing expect Zynex's to meet to of FDA in in to submit QX Monitoring necessary recently for XXXX. the XXXX. trademarks continue Division to HemeOx our is and NiCO NiCO market. our toward received product and to We introducing products bring consistently products milestones both

to investment community sharing clinical the on they continue as will look other milestones. are completing results important trial We forward published and updating

turn Dan for Chief financial to performance now over quarter. call Financial at in-depth will I look the the Officer Moorhead, a more for

Daniel Moorhead

issued XXXX. of XX% Orders Thomas for highest our growth from remainder $XX the Thanks, to for $XX.X grew million for consecutive a earlier Don. summary will in XX% financial in million the related orders financial quarter guidance XXXX. of year-over-year, Net our results primarily history revenue our refer our the release XXXX, of company of review Please in on grew to results, After second orders. number fifth today for to press quarter. commenting the device the

our year-over-year second to Gross $XX.X profit revenue the increased last of quarter XX% $XX.X to in from second million the order or increased to of expenses million XXXX. to million of to million due the XX% $XX.X compared last compared second in second $XX.X as in same increased sales in $XX.X and $XX.X primarily increased year. to incentive were Sales million in revenue related Supplies year. million growth. XXXX, compared in quarter quarter to quarter headcount increased $X.X million and XX% to commission Device revenue of million and in the XXXX pay the $XX.X marketing period force

was launch to million the $XX.X a last increase investments growth. as of year. related remainder XX% expense for XXXX million is share primarily second to XXXX. produced Solutions was EBITDA June $X rate related new The million, last the to for million our quarter XXXX Net office $X.X $X.XX division months was compared income million of products. as per to compared diluted in percentage and million share our to G&A of for diluted $X.X or is year. $X.X million the not in ended which $X.X second was due of Approximately Adjusted and expenses the XX, effective compared $X.XX headcount three income other back in were quarter related the $X.X XXXX per Monitoring taxable. order Tax ended quarter the in headcount to quarter the in XX% to

from increased flows approximately million $XX.X debt for offering and convertible the we added the XXXX, which to million six million $X.X previous million. of of offering, million net retired. $XX.X completed working year-over-year quarter We cash of balance During ended in capital was the $XX debt the which sheet costs cash months a cash and quarter, with in $XX XX% second operations

of second the the our million quarter continued In to the in common $X.X we stock, buybacks repurchased bringing million. total XX stock $XX.X months past repurchases and

and stated creating teams, the we've opportunities management a the in both this growth incredibly that and be before, remain near believe As we to our to long-term. confident our in signal to committed that we we are for shareholder shareholders divisions, value

turn it back I'll to Thomas. over With that,

Thomas Sandgaard

greater million had million, a of third the than quarter our which orders quarter orders of of XXXX, range XXXX the $X.XX. to a expect third strong continued the approximately per $XX diluted consecutive With we and and in Thank expect Dan. We've the total record earnings is revenue growth to to post you, terms quarter. $X.XX quarter XX% in share start in of $XX to sixth of in third

total between over be million, $X.XX. in of we outlook, approximately share expect of growth XXXX and $X.XX earnings our diluted XXXX, to for reiterating As to million our guidance XX% the and revenues per representing initial and range are $XXX $XXX

With that questions. open call the please up operator, for

Operator

Instructions] time, gentlemen, question Thalmann. Jeffrey from Ladenburg question-and-answer at this from [Operator go session. with we'll question. today Please and Cohen your first Our the begin comes Ladies ahead

Jeffrey Cohen

and Hi, Dan Donald you? how are Thomas,

Thomas Sandgaard

you? are How Good.

Jeffrey Cohen

Good.

now Just what's ones. you call number did Anna, a out but quick did year, by the on hear spot sales the reps? XXX current? I the couple

Thomas Sandgaard

you, phone, what's reps. little Jeff. I a sales on but talked the you trouble don't having know about going We're hearing with

could think, you that? I repeat

Jeffrey Cohen

number Yes. sales The reps? current of

Thomas Sandgaard

sales XXX? of number Current reps,

Anna Lucsok

XXX, yes.

Jeffrey Cohen

perfect. and please? filing you the you're XXXX, it. I for clinical about commercial work about HemeOx talk and Okay, that talk hemoglobin, could the the guess, year for got also the on Donald, I for anticipated the doing And back half plans

Donald Gregg

Sure.

we several CM-XXXX by FDA, the specifically on clinical engaged that's in the of prove on milestones have So that been ensuring are and been focused product trials. we we efficacy the clinical that the have cleared

hospitals that have multiple in We and organizations.

We to and throughout we ensure and to with year. to you our trials those ensure physicians balance complete key focus due go we're proper specifically doing that management. focus will There's the fluid on leaders diligence as the and continue update a opinion perioperative

Let NiCO. me bit a talk little about

we have We completed two do we that additional trials We have for do have clinical to on trials three study and to types that of clinical FDA a hypoxia NiCO. have we submission.

of part of to to first a against have do and The that have of effectiveness we the we calibration the then product, verification device. NiCO a calibration validation do is is the

they those third are They in couple are August, quarters scheduled. fourth institutions. a different very shortly here starting with And throughout and continue so the and of will

Jeffrey Cohen

XX.X is And Okay, for the that. that real you fourth that's the one press months, fifth the repurchases of now? share XX open got open, one last one, Thanks briefly, that's that or the Dan, in the release is fourth it. the talked and about

Daniel Moorhead

through everything includes XXX. That

So the fourth five be will one. or four was plans. That it

add completed have million. we that, up it, once will then we to XX So complete that if

million. XX.X have we far So

Jeffrey Cohen

Okay.

So that's stock I the of got XX in repurchase it. common the million press approved the release. share program company's

does it Thanks quarter. great for questions. our that That's think for us. I taking

Thomas Sandgaard

you. Thank

Operator

Wainwright. our H.C. from next comes Yi go from Please Chen with question question. your ahead And

Unidentified Analyst

on it to of Congrats [indiscernible] Chen. is just I I want right. behalf on excellent sure Hey, all got this Yi progress. the make

your prepared be During to of you the XXX that right? Is around by like you sales would reps? the that your indicate did end year force remarks,

Thomas Sandgaard

Yes, over XXX, think be we we'll yes.

Unidentified Analyst

that upon you of we Okay, sounds should Could you. maybe on Thank followed half you some know prepared important key this the portfolio? across also the more the some your provide during of good. catalysts remarks, during second And catalysts color year. be touched to

Thomas Sandgaard

the Don drive the continued from increases obviously side, of on catalyst add reps, and work productivity of, as but that Management basis, which product NiCO only new to related not Pain a CM-XXXX spoke submission sales So then will in continuing rep the products. continued on revenue well. obviously I the think the And

of remainder those looking now. main of we're the the the So are as right for catalysts at year

Unidentified Analyst

wrong, in Excellent, able so them I'm the are the you the thank you comment on in to you. if comment not fourth pipeline products quarter? two to be others And hospital pulse other have on would beyond you I oximeter believe the now? monitoring able

Donald Gregg

our you provide for product CO-Oximeter, in important the our hemoglobin HemeOx is different and will hospitals, several several specifically when Sure. settings, non-invasive that's will a to example, non-invasive provide procedure. clinics, they provide, finger total clinical and non-invasive. others HemeOx reading. like you They'd when have particularly not which give on be like would NiCO because an that line that be blood, it a with stick invasive they to

that, well of line fluid go products, as opportunity to on our you NiCO combining those CM monitoring addition also an In think line technology that when to the you about have after sepsis. between

have on how accurately. often and reinvent detect to you working been sepsis monitoring And early sepsis so we will and

Unidentified Analyst

and congrats you Thank much you. Got so again.

Donald Gregg

Thank you.

Operator

with your a Cohen gentlemen followup and from Ladenburg Jeffrey Jeffrey, ahead please Thalmann. do ladies we -- go followup. from And at have this

Jeffrey Cohen

taking again thanks Hey, the questions. for

us. So two from more

physical mentioning? therapy for on back or QX QX half of worth Firstly, anything

Thomas Sandgaard

more Say that Jeff. time, one

issue Sorry, know I what don't the is.

Jeffrey Cohen

PT my therapy physical It updates? any Any must be news, phone.

Thomas Sandgaard

if therapy you updates with physical or…? regarding any asking -- there's Are

Jeffrey Cohen

Yes.

Thomas Sandgaard

Well area. product in we that's have typically prescribed one that

amount We our now. we right ourselves. very would that's have on the developed be device minimal order. a of But focusing a device stroke are not that rehab, That that for NeuroMove

So not now. we space, right that's really active in that physical therapy are the

Jeffrey Cohen

it. you consistent expect you for for And comment, G&A I lastly, Would to a any percentage then out back year? be of like Got XX% sounded guess Dan, half Okay. it the the of ZMS. that called

Daniel Moorhead

similar it normal We're No our track. on Yes. be should that. to

$XX year talked XX million going $X I XX. about to to think about million we year, this from about last

with sure. that track So for we're on -- it's

Jeffrey Cohen

does it That Thanks for perfect. again. us. Okay,

Operator

And floor ladies and remarks. turn additional showing questions, the time I'd at the and like to no gentlemen, this -- management team and over to any not back closing for

Thomas Sandgaard

for us you Thank joining yes. today. Well,

you the a interest in our pleased forward growth and with look We throughout to upcoming quarter the year consistent speaking rest and that this and investor momentum Zynex. day. leveraging delivering. of are Have appreciate events. at to performance our your We is the We team time great

Operator

gentlemen, and for conference concluding ladies you be Thank with today's that, and we'll And presentation. call joining.

lines. You your disconnect may now

Zynex (ZYXI) 27 Jul 232023 Q2 Earnings call transcript