Zynex, Inc. (ZYXI) Bundle
A Brief History of Zynex, Inc.
Zynex, Inc. (Ticker: ZYXI) has established itself as a significant player in the medical device industry, particularly known for its electrotherapy and pain management products. The company was founded in 1996 and has since evolved, focusing on innovative solutions for pain management.
Key Financial Performance Metrics (2024)
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $50.0 million | $49.9 million | 0.2% |
| Device Revenue | $14.9 million | $16.9 million | -12% |
| Supplies Revenue | $35.1 million | $33.1 million | 6% |
| Net Income | $2.4 million | $3.6 million | -33.3% |
| Basic Earnings per Share | $0.07 | $0.10 | -30% |
| Cash Provided by Operating Activities | $10.3 million | $11.6 million | -11.2% |
Recent Developments
As of September 30, 2024, Zynex reported a net revenue increase of $9.3 million or 7% for the nine months ended compared to the same period in 2023, driven primarily by an 18% growth in device orders. However, the company experienced a decline in device revenue by 12% in Q3 2024 compared to Q3 2023, attributed to a decreased sales force headcount and a shift towards lower-priced distributed products.
Operating Expenses
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $10.2 million | $9.6 million | 6.3% |
| Sales and Marketing Expense | $20.7 million | $22.1 million | -6.3% |
| General and Administrative Expense | $15.3 million | $12.7 million | 20.5% |
In terms of operating expenses, Zynex saw a 6% increase in the cost of revenue, reflecting the higher volumes associated with increased sales. However, the sales and marketing expenses decreased by 6% primarily due to reduced headcount in the sales force.
Stock Repurchase Programs
Zynex has been active in managing its capital structure through stock repurchase programs. In June 2023, the company initiated a $10 million buyback program, which was completed by purchasing 1,242,892 shares at an average price of $8.05 per share. A subsequent program was announced in September 2023 for an additional $10 million, with 1,204,239 shares repurchased at an average price of $8.30. As of September 30, 2024, Zynex had also approved a new $20 million repurchase program, reflecting ongoing commitment to shareholder value.
Financial Position
| Financial Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $37.6 million | $58.5 million |
| Working Capital | $58.5 million | $69.3 million |
| Total Stockholders’ Equity | $35.8 million | $46.1 million |
As of September 30, 2024, Zynex's liquidity position is robust with $37.6 million in cash, although this marks a decrease from the previous year. The total stockholders' equity has also decreased, reflecting the impact of share repurchases and lower retained earnings due to reduced net income.
Future Outlook
Zynex continues to focus on expanding its product offerings and enhancing operational efficiencies. The growth in device orders signifies a positive trend, although challenges in device revenue and increased operating costs will require strategic management moving forward.
A Who Owns Zynex, Inc. (ZYXI)
Major Shareholders
As of 2024, the ownership structure of Zynex, Inc. is concentrated among a few key shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Thomas Sandgaard | 8,000,000 | 25.1% |
| BlackRock, Inc. | 2,500,000 | 7.8% |
| The Vanguard Group, Inc. | 2,100,000 | 6.6% |
| Dimensional Fund Advisors LP | 1,800,000 | 5.6% |
| Other Institutions | 5,500,000 | 17.3% |
| Retail Investors | 10,600,000 | 33.4% |
Stock Performance
As of September 30, 2024, Zynex, Inc. reported a total of 31,840,092 shares outstanding. The stock price has seen fluctuations throughout the year, with an average price of approximately $12.29 per share in the recent repurchase program initiated in March 2024.
Recent Financial Overview
For the three months ended September 30, 2024, Zynex reported net revenue of $49.966 million, with a net income of $2.382 million. The company's net income for the nine months ended September 30, 2024, was $3.609 million, compared to $8.517 million in the previous year. The decline in net income reflects challenges in profitability amidst increased operational costs.
Cash and Liquidity Position
As of September 30, 2024, Zynex held $37.6 million in cash and cash equivalents, with working capital reported at $58.5 million. This liquidity position is critical as Zynex continues to finance operations and potential growth opportunities.
Treasury Stock Activity
In a recent stock repurchase program initiated in November 2023, Zynex has repurchased approximately 1,012,200 shares at a total cost of $9.6 million, averaging $9.47 per share. This program aims to enhance shareholder value.
Future Outlook
Management's focus on maintaining a strong balance sheet and improving operational efficiencies is pivotal as Zynex navigates market challenges. The company continues to assess opportunities for growth in the medical device sector, particularly in electrotherapy and pain management products.
Zynex, Inc. (ZYXI) Mission Statement
Overview
The mission statement of Zynex, Inc. emphasizes its commitment to providing innovative medical devices that enhance the quality of life for patients suffering from pain and other medical conditions. The company aims to lead in the development of non-invasive medical technology, focusing on electrotherapy and pain management solutions.
Financial Performance
As of September 30, 2024, Zynex, Inc. reported a net revenue of $50.0 million for the third quarter, a slight increase from $49.9 million in the same quarter of the previous year. For the nine-month period ending September 30, 2024, net revenue totaled $146.4 million, an increase of 7% compared to $137.0 million during the same period in 2023. The growth in revenue was primarily driven by a 13% increase in device orders in the third quarter and an 18% increase for the nine-month period.
Revenue Breakdown
| Type of Revenue | Q3 2024 ($ million) | Q3 2023 ($ million) | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|---|---|
| Devices | 14.9 | 16.9 | 44.8 | 42.5 |
| Supplies | 35.1 | 33.1 | 101.6 | 94.5 |
| Total Revenue | 50.0 | 49.9 | 146.4 | 137.0 |
Operating Expenses
For the three months ended September 30, 2024, the total operating expenses were $46.2 million, compared to $44.4 million in the same period in 2023. The breakdown of operating expenses includes:
- Cost of Revenue: $10.2 million (Q3 2024) vs. $9.6 million (Q3 2023)
- Sales and Marketing: $20.7 million (Q3 2024) vs. $22.1 million (Q3 2023)
- General and Administrative: $15.3 million (Q3 2024) vs. $12.7 million (Q3 2023)
Income and Cash Flow
Zynex reported a net income of $2.4 million for Q3 2024, down from $3.6 million in Q3 2023. For the nine-month period, net income totaled $3.6 million, compared to $8.5 million for the same period in the previous year. Cash provided by operating activities was $10.3 million for the nine months ended September 30, 2024, compared to $11.6 million for the same period in 2023.
Stock Repurchase Program
On February 29, 2024, Zynex's board approved a repurchase program of up to $20.0 million of the Company’s common stock. As of September 30, 2024, the company had repurchased 423,894 shares for $5.2 million at an average price of $12.29 per share.
Market Position
Zynex operates primarily in the medical devices segment, with a focus on electrotherapy and pain management products. The company has been actively expanding its customer base, which has contributed to the growth in device orders and subsequent revenue increases.
Future Outlook
Looking forward, Zynex aims to maintain its growth trajectory by continuing to innovate in the medical technology space, focusing on enhancing patient care through advanced therapeutic solutions.
How Zynex, Inc. (ZYXI) Works
Company Overview
Zynex, Inc. operates primarily in the medical device sector, focusing on electrotherapy and pain management products. Its headquarters is located in Englewood, Colorado, and its primary subsidiary is Zynex Medical, Inc.
Financial Performance
As of September 30, 2024, Zynex reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue | $50.0 million | $49.9 million | $146.4 million | $137.0 million |
| Device Revenue | $14.9 million | $16.9 million | $44.8 million | $42.5 million |
| Supplies Revenue | $35.1 million | $33.1 million | $101.6 million | $94.5 million |
| Net Income | $2.4 million | $3.6 million | $3.6 million | $8.5 million |
| Basic Earnings per Share | $0.07 | $0.10 | $0.11 | $0.24 |
Revenue Breakdown
The revenue is primarily derived from the sales of devices and supplies related to electrotherapy products. The breakdown of revenue for Q3 2024 is as follows:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Purchased Device Revenue | $7.3 million | $7.0 million |
| Leased Device Revenue | $7.6 million | $9.8 million |
| Supplies Revenue | $35.1 million | $33.1 million |
| Total Revenue | $50.0 million | $49.9 million |
Operating Expenses
For the three months ended September 30, 2024, Zynex reported the following operating expenses:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $10.2 million | $9.6 million |
| Sales and Marketing | $20.7 million | $22.1 million |
| General and Administrative | $15.3 million | $12.7 million |
| Total Operating Expenses | $46.2 million | $44.4 million |
Cash Flow and Liquidity
As of September 30, 2024, Zynex's liquidity position was as follows:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $37.6 million |
| Accounts Receivable | $21.6 million |
| Net Cash from Operating Activities (YTD 2024) | $10.3 million |
| Net Cash Used in Investing Activities (YTD 2024) | $0.4 million |
| Net Cash Used in Financing Activities (YTD 2024) | $16.9 million |
Market Strategy and Growth
Zynex has seen a growth in device orders by 13% and 18% for Q3 and YTD 2024, respectively, compared to the same periods in 2023. This growth is attributed to an expanding customer base and increased sales of consumable supplies.
Stockholder Equity and Share Repurchase
As of September 30, 2024, Zynex had the following stockholder equity metrics:
| Metric | Amount |
|---|---|
| Total Stockholders' Equity | $35.8 million |
| Treasury Stock | $87.2 million |
| Shares Repurchased (YTD 2024) | 423,894 shares |
Debt Obligations
Zynex issued $52.5 million in Convertible Senior Notes in May 2023, with an interest rate of 5.00%, due May 15, 2026. As of September 30, 2024, the unamortized issuance costs were $1.7 million.
How Zynex, Inc. (ZYXI) Makes Money
Revenue Sources
Zynex, Inc. generates revenue primarily through the sale and lease of its electrotherapy devices, as well as the sale of consumable supplies associated with these devices.
| Revenue Category | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Device Sales | $14,858 | $16,855 | $44,803 | $42,542 |
| Supplies Sales | $35,108 | $33,060 | $101,577 | $94,495 |
| Total Revenue | $49,966 | $49,915 | $146,380 | $137,037 |
Device Revenue
Device revenue consists of income from both the sale and lease of electrotherapy products. For the nine months ended September 30, 2024, Zynex reported a total device revenue of $44.8 million, representing a growth from $42.5 million in the same period of 2023. The increase was attributed to an 18% growth in device orders.
However, for Q3 2024, device revenue saw a decline of 12%, falling to $14.9 million from $16.9 million in Q3 2023. This decrease was influenced by a reduction in the sales force headcount and a shift toward lower-priced distributed products.
Supplies Revenue
Revenue from supplies, primarily consisting of electrodes and batteries for electrotherapy devices, increased significantly. For Q3 2024, supplies revenue rose by 6% to $35.1 million compared to $33.1 million in Q3 2023. For the nine months ended September 30, 2024, supplies revenue was $101.6 million, up from $94.5 million in the prior year.
Cost of Revenue
The cost of revenue for devices and supplies increased to $10.2 million for Q3 2024, up from $9.6 million in Q3 2023. For the nine months ended September 30, 2024, the cost of revenue was $29.4 million compared to $28.1 million in the same period in 2023.
Operating Expenses
Operating expenses include costs related to sales and marketing, as well as general and administrative expenses. For Q3 2024, sales and marketing expenses decreased to $20.7 million, down from $22.1 million in Q3 2023. General and administrative expenses rose to $15.3 million from $12.7 million during the same period.
| Operating Expenses Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Sales and Marketing | $20,713 | $22,146 |
| General and Administrative | $15,274 | $12,731 |
| Total Operating Expenses | $46,164 | $44,430 |
Net Income
For Q3 2024, Zynex reported a net income of $2.4 million, down from $3.6 million in Q3 2023. For the nine months ended September 30, 2024, net income was $3.6 million, compared to $8.5 million in the same period in 2023.
Cash Flow and Working Capital
Cash provided by operating activities for the nine months ended September 30, 2024, was $10.3 million, a decrease from $11.6 million in the same period of 2023. As of September 30, 2024, working capital stood at $58.5 million.
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Article updated on 8 Nov 2024
Resources:
- Zynex, Inc. (ZYXI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zynex, Inc. (ZYXI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zynex, Inc. (ZYXI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.