ZYXI - Earnings call transcript Q1 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Zynex First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to Quinn Callanan from MZ North America. Please go ahead.

Quinn Callanan

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

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

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

statements may resources regulatory marketing sales include, and without factors These product performance. limitations, the potential, development, environment, operating capital product strategies, regarding or

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

Thomas Sandgaard

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

care highlighted approximately quarter delayed the up of to being Healthcare's Change quarter presented significant high flow The the that quarter a sector. XX% health Revenue eighth was prior was disruption year claims first revenue and ongoing from the the numbers. order of impact record $X straight by million of the momentum, from in entire cyber event across

event our lower the payments large than of causing slightly revenue to Due in delayed, a payers come group our from to were expected.

the $XXX cash in XXXX $X.X year. that and that guidance the million want to had from we the highlight prior reaffirming an the the million. in recognize of also over year, to expect positive increase quarter, operations revenue I We of first from at least we are rest

and Zynex continues our others industry. flows higher inflation like sales products investing in also we many earnings to cash in force, drive and in new expand as free team to combating revenue monitoring wage significant and deliver continue the our Our

expand quarter, with a compelling the team sales has Our market to by a strong enabled continued each product portfolio. force and

we our grow. orders The team that Stimulation growth in it'll XX% first confident continue revenue scale as M-Wave year-over-year, from that help sales new shipping patients. to and continue we Electrical they are drive this now to Neuromuscular the to quarter for our clearance To received FDA device production and order our increased and

the our blood laser-based excited noninvasive or and the first pain fluid our and Monitoring in to the In last impressive to announce improve second-generation division, ZMS and pulse technology and forward Solutions, for in profitable settings. quarter fluid management further hospital with addition with our to results of Zynex oximeter. development year our to move from blood monitor continued wireless management targeted clearance FDA patient outcomes monitor and better We're fluid

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

laser-based pulse called levels, have our the A of monitor, our the HemeOx. pre-revenue laser-based monitor noninvasive oximeter addition products monitoring called for noninvasive in monitor early In hospital total NiCO, X sepsis in and pipeline detection and we other and hemoglobin co-oximeter to blood of fluid a division. products

growth will study. of company. oximeter the for due to the continue which verification the potential now in for verification application great FDA the fourth the an in of XXXX. progress the During to monitoring we major timing study the We have for laser-based pulse a components quarter the device of division, strong expect progress continued and -- quarter, middle submit to being to believe NiCO several we Overall, make XXXX patient make the game-changing in beginning we with our now to

with approach making and high are we new we strategically. accelerating force non-invasive devices and delivering pain operationally products. are at-home We're to and recurring our building holistic as sales our diversifying ahead, that expanding Looking direct management significant revenue also with progress continue on execute

tandem, growing monitoring which hospital market ramping represents division, In a large are our opportunity. on we focused

We performance that also produced double-digit growth in financial growth consistent strong XXXX, expect the and year-over-year. have following we

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

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

Anna Lucsok

another Thomas. Zynex's payers. cost attack XX% had due commercial Revenue of suspension division impressive Pain for grew delays caused payments you, submit the expected with and growth. The order change claim lower Management year-over-year our group than cyber cyber quarter causing in but payments XX% several impacted payers. to was healthcare disruption large from to ability a by attack and claims the Thank

However, of over the we XXXX. recover shortfall expect the remainder to

FDA with The M-Wave patients Thomas treated M-Wave replace the features E-Wave, predecessor, manage to is our foot, or fundamental thousands for also across NMES its treatments patients to has issues, in which with rehabilitation, home be way in shoulder received M-Wave, U.S. since quad muscle-related ease. clinical improve user-friendly conditions. setting allows E-Wave set patients mentioned, clearance neuromuscular the a designed M-Wave and and is of the such As we rehabilitation. has the their been design the XXXX. The With to drop next-generation The a as hand helped subluxation advanced NMES.

in when performance exercise healthy integration have recovery even user-friendly encourage a interface patients products. lightweight of easy ease users even therapeutic chronic designing and of ensures electrotherapy credibility the M-Wave conditions including individuals. recover and compact regimen from use into routine. surgery, broader and and our will NMES customer of several design The treatments adding adoption managing The an enhancing

At force reps related underperformers. had we sales We productivity XXX targets QX, of our the strict continue sales to graphs hold to refine we to continue end and profitability. as approximately and maximize exit to

the screen reps make ensure to we criteria, thoroughly meet they will also continue believe new to them successful. We which

built compression to with see Cold low traction we current back a additions therapy need strong pipeline diversifying support, the streams accelerate cervical of which versatile a to Pro on in pain our the that prescribers revenue now cold rehab, of and rehabilitation are LSO, of patients the line and bracing, X-in-X combines Having our Zynex in Compression focused orthosis and Hybrid recovery. include spinal to Zynex products, DynaComp

orders, drive ago. Revenue per now approximately all expect couple market on calls. a years $XXX,XXX, we in to up QX over of portfolio expanded our up an team XXXX of on makes approximately of XX% rehabilitation increase Our products X% from updating another basis look rep an in of year annualized expansion the for and XX% forward continues all sales I future to higher. our efficiency division as you Pain profitable mature, to was Management

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

Donald Gregg

have and with into but team's product Thank you, technologies a that strategies successfully this Zynex businesses process clearance is line to a monitoring FDA grow looking opportunity has to comparable at experienced acquiring Anna. success of the new necessary traversing. many management With unique make successful profitability. add line market Zynex a to entrance our second to products, here much past larger a products are leverage building at we this

The monitoring our a by of product line fluid our for is precursor sepsis monitors CM technology monitoring.

patient Recently, introduced patients. ultimately to could completed XXXX CM-XXXX we CM improve of milestones the and capabilities signals alter improvements technologies R&D and new of care Our significant entirely the operating new for over devices. welfare development and saw rooms measuring that the CM-XXXX standard previous important

hardware on for the design. the first the CM-XXXX to trial clinical the We are improvements is currently planning prototype of upcoming demonstrate and new in

We noninvasive refine consult the leaders opinion by with and leaders and products of uptake maximum continue experts, to potential the future ensure to thought our capabilities in customers. space key

We expect strongly the a the effort but experience believe our technology. new that monitoring market value be benefits stand-alone patients successful proposition products, longer-term we the and other in by fluid provided than a will monitoring building will

pulse XXXX, availability laser conducted on successful including the of year Our to half verification our We expect the to in being in line, university lab now study the and FDA of positively. NiCO progressing depending to due HemeOx, submit second the a of quarter noninvasive oximetry continues currently fourth partner.

institution area oximetry. Our the a of research premier in lab partner is

We are propel renowned help honored with to such toward NiCO oximetry institution improvements a partnered and results the be and will approval for society. FDA believe

manufacturing our has manufacture focus verification As our components to At major NiCO for turned track to we are much this on systems. and time, capabilities. prepare produce study, of NiCO's

in of We this awareness laser opinion execution We are leaders and strategies. recently professional our go-to-market along finalized diligently strategy the experts, engage developing societies of with key oximetry. pulse science marketing to space, to raise working

we until I space, initial the Dan for from Considering closer this competitive turn Moorhead, look over call will the now refrain at in-depth to the a detailing in financial Officer; our Chief to Financial for performance more quarter. launch. dynamics product go-to-market

Daniel Moorhead

earlier $XX.X for guidance Thanks, results. first a summary financial our our review In to first financial issued for will press XX% Don. Thomas the the on revenue After the XXXX. million revenue release XXXX. year-over-year today history orders XXXX. for to Please million consecutive our of of refer results of first was company quarter commenting to last highest quarter, increased our in million Net $XX.X year. number eighth the orders the in million of compared first was compared of the $XX quarter. the Device to in for $XX.X quarter quarter

in period was or diluted million $X.XX first last to and million, in XXXX compared in quarter the million of Net of or profit $X.XX million income $X.X XX% to Gross revenue Sales million million G&A produced $XX.X was of million $XX.X XXXX. same per share in the share net Supplies $XX,XXX million quarter year. diluted in in expenses of expenses compared last $XX.X first quarter revenue or $XX.X million XXXX first first in XXXX the were compared of $XX.X year. quarter the were marketing of and first quarter the as per $XX.X revenue compared the XXXX. $XX.X to in in with $XX.X XX% was income up XXXX. of from

working quarter increased EBITDA capital XX, million X the sheet on million. months We flows million in ended quarter and March year-over-year X ended $XX.X million. XX, cash months million XXXX, $X.X March $X.X X% for Cash XXXX. balance the Adjusted to ended ended in the from XXXX, operations $XX.X to of compared the March XX, was with of first $X

continued million stock. XX we've $XX.X our last purchased In the and million. we quarter, the $XX.X repurchased And stock over months, first buyback of common

and cash that We buyback to continuing The divisions the believe in management long reflects We generated our in returning value cash to continue in to our return team, the we term. both between investing profiles. opportunities near business belief attractive deploying our committed balance shareholders. shareholder remain and for and growth creating offer both

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

Thomas Sandgaard

Thank revenue than We've with of of and approximately second in orders you, growth revenue XX% the XXXX million, of and earnings and $X.XX XXXX we second had greater the a $XX expect and is recognition to to Dan. in quarter share per of see start strong the see to per with continued which delayed quarter QX the diluted share.

expect earnings outlook, revenue As XXXX per growth $XXX million, approximately diluted in share we and be share. total approximately for of of approximately a $X.XX representing a XX% our over to XXXX

which continue demonstrated business incredibly to flows, high has capital in flexibility to the new levels several years. line generate allows launch several have we consistently us the we that our of the shares expand repurchasing of to growth We're stream and degree Top produced past and revenue our the us to ways. has allowed we're profitability business profitability proud free and revenue market. a a in sales created The of force, allocate cash our able open diversify have high over

cash questions. in ability operator, return our avenues shareholders both believe We please these simultaneously. to open have value. with will call investing produce We And up the continue to shareholder and for that, substantial the business

Operator

of first Thalmann. Ladenburg from Cohen Your Instructions] question Jeff [Operator comes

Your open. already line is

Jeffrey Cohen

questions for our end. Two

] $X.XX on should April Thomas, $X.XX of year, there any is [ commentary of the out the or when in for assumptions So that? revenue. factored some repurchases, you're on Any of balance future year? share And reaching call you at

Thomas Sandgaard

orders of year, to April obviously, the mean, I We quarter. see April in XX%. -- It now that grown in first well can orders last compared grew approximately Yes.

order we continue of growth. the cadence So

better is working just next diversification orders more the division. other on wave, the position see was put in other to us and which other going And mentioning more, XX%. at to next also from the around in to overall the products our wave, the products first XX%, we that we a obviously quarter for than up other XX%. revenue with We trading than continue sitting now in and Anna products, the we're grow It's the

we So fairly of $X.XX confident in we bottom be continued all, share into revenue all in that out can terms the line the years the find the and on a growth.

Jeffrey Cohen

Okay. being -- about new Got bit a generally being those are they're out? And or being new production. M-Wave users? existing shipped users, talk little Could you it. It's for in going shipments prescriptions

Thomas Sandgaard

stimulator performance it still the more it's is also in prescriptions. basically largely in all It past, easier those were it, getting most neuromuscular product for And the which The the It's The we electrical replacing market. output for easy elegant and we the a looks production. M-Wave, it much that use. -- E-Wave, prescriptions were was new the to was still which indications making use. is on XX-year-old looks to powerful

that, good was inventory So and looks running, it's it and planned product. directly up everything we've is as on replacing that the levels just production

Jeffrey Cohen

you Do portion material next over could it. year M-Wave become to that Got next the two. relative anticipate a or wave

Thomas Sandgaard

be something The that next versatile stimulation same, complex a to just be few that ratio of electrical percent is that often say, such product physician It going It change. very see physicians the prescribed order it's rather prescribe. the less M-Wave. our wave No. what production a will won't than neuromuscular same needs the we of versatile when it's will

Jeffrey Cohen

lines. then concurrent the . just analysis It's Thomas to X commercial my further hospital-based the Got talk in 'XX that is after could you anticipate NiCO or to marketplace? when perhaps through of guess first time would and monitor ox that it. be would fluid blood or question be the XXXX And like in products that I some Okay. pulse for And follow some sounding the be going the about last Donald, laser-based you,

Donald Gregg

Sure.

university its them. Therefore, of our is We've in our doing a verification, on the Jeff, preparing to for NiCO had back some year. this. lab progressing in with think, milestones. half move couple things a is One I dates that well had we've we're of partner the

that And care takes those specific I will will commercialized. HemeOx, which the the called parameters that, NiCO a be call -- oximetry that product first there into past that's is this areas due that derivative and we've product a is important in story. pulse XXXX of be said think points So a that adds the a couple And to different of parameters. revenue

It It follow-on and the is. is a blood similar product to that NiCO. is to a commercialization monitor strategy fluid

the achieved CM-XXXX fluid that, we from with is hardware, We improved it's then -- are and NiCO the clearance the will XXXX. milestone We're we clinical important to in to last that XXXX for at be getting commercialization. the CM-XXXX signals both believe point. Therefore, specific the we system. as year trials in in an and follow-on of And out development continue prove the a that of this the responsiveness

Jeffrey Cohen

on earlier Or you in monitor compared second. the be the do fluid guess to second the feel be the I So pipeline? blood as that hemoglobin CM-XXXX and still could would HemeOx

Donald Gregg

And think probably I guidance, NiCO you just working which of give HemeOx. on are platform, want Jeff, to I we some enables the they're both that and technology NiCO diligently the similar.

of both So to we there know have because work a in do full R&D real for those. if you I have on I answer timing don't

Jeffrey Cohen

Okay. wondered I No, just that's certainly that clarification. clear additional enough.

us. it does I So think for that

Operator

Your next RBC. question comes from Shagun of Singh

Avi Dahan

Shagun. Avi is for This on

that so. we a The called should first break QX versus expect out million impact the it there And how attack a out anything follow-up, much Can you for devices? the is in an on revenue as in underperformance supplies of impact? that one is cyber of was was because $X or you

Daniel Moorhead

to breakout to The our similar normal breakout. going is be

running So the device top We're XX% supplies. device on set kind and supply. of of to XX% on that

to similar on comment be should Anna it And QX. can So that.

Anna Lucsok

We're well. expecting go throughout the through as We XXXX. should to from QX seeing recover throughout it start recover and claims

Avi Dahan

talked going me. review are be Can for last share in we are Where you update the conversations? expect if news Where you One on can you've any private. great. front? Great. would process, on potentially can Anything on those us Okay. about you one And the process? that you strategic

Thomas Sandgaard

the conversations Yes, are advanced. very

lot as mentioned, going a in bring that large we to can partner looking you parts hope that. And But or moving very bring a There's a conclusion. private looking that there we can we add at We we scenario. I of are, of it's positive. to can a value. will certainly have And they if transaction a believe -- like a completion, company lot the will that

progressing I'm -- how a that's very there. pleased with are things So

Operator

of question H.C. comes Chen next from Wainright. Yi Your

Yi Chen

the any later could believe correct Regarding cyber year. that to in you this have do incident, reason

Daniel Moorhead

I it happened at have outside information that a Zynex provider. a know on we don't with large very level it. of Obviously,

we know that we have whether to. wouldn't information it don't recur year say could I that or So could but this later expect it not,

Thomas Sandgaard

there Yes. distributed the claims It's that's were of companies get thousands and And improved go have got we're and clearing impacted. that of that hard say. clearing to or a like I companies the also other that houses how cyber number insurance clearing much large more through using mean it's where house. protection, very ours to of a house then

these top Hopefully, of on are bad guys guys. again. the won't than it happen more And

Yi Chen

it do if term you near not, in out? to it And has Got I a way to have obtained Or with it. license it profit better while. respect is blood for product commercialize generate the from plan the any a FDA to monitor, volume clearance it? this mean

Donald Gregg

do is believe of And lot we aren't Chen. we potential changer technology point, good And we have commercial the for R&D we the CM-XXXX get that the game per in a it's se, because we of as it's we -- for think plans milestone. it's CM-XXXX the predicates entertaining development the milestone, major a and product next monitoring. we FDA. Yi clearance an strategy question, and therefore, through a would Zynex have -- in don't is that a commercialization to at a our Yes, Currently, CM-XXXX. commercialize how There's the licensing like market which this because the was

Yi Chen

question. last And Okay.

So is us share much left how you for the amount can -- remind buyback?

Daniel Moorhead

about on plan, QX plan. million, after announced $XX current and March, did that that million $XX $XX the still left the we in a million and was announcement, was have which we On that. We

Quinn Callanan

There are Chief call time. Please Executive ahead. Sandgaard, hand I Thomas no further Officer. at go questions would the to over this

Thomas Sandgaard

Yes. today. Thank you for joining us

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

Operator

this and Thank your participation. today's gentlemen, you conference Ladies concludes call. for

You may now disconnect.

Zynex (ZYXI) 30 Apr 242024 Q1 Earnings call transcript