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Financial Data and Key Metrics Changes - Net revenue for Q4 2024 was $46 million, a decrease from $47.3 million in Q4 2023 [33] - Device revenue decreased to $14.8 million from $16.3 million year-over-year, while supplies revenue increased slightly to $31.2 million from $31 million [33] - Gross profit remained stable at $36 million, representing 78% of revenue, consistent with the previous year [34] - Net loss for Q4 2024 was $615,000, compared to a net income of $1.2 million in Q4 2023 [35] - Adjusted EBITDA fell to $584,000 from $9.9 million in the same quarter last year [35] Business Line Data and Key Metrics Changes - Revenue increased by 4% in 2024, with order growth at 16% [24] - Average revenue per sales representative increased by 22% to $490,000 in 2024, despite a reduction in the total number of sales representatives from approximately 475 to 330 [24] Market Data and Key Metrics Changes - The patient monitoring business is expected to enter a multi-billion dollar market with the anticipated FDA clearance of the NiCO pulse oximeter [32] - The company is optimistic about capturing identified sales opportunities within its designated sales territories, estimated at $800 million [13] Company Strategy and Development Direction - The company is diversifying its revenue streams by adding new products, including private label products in bracing and compression [7] - Focus on expanding the sales force to new prescribers, including national workers' compensation chains and the VA [7] - The company aims to maintain a long-term growth vision despite short-term disruptions, emphasizing the importance of product diversification [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of the company, despite challenges related to Tricare's temporary payment suspension [12][37] - The company is restructuring to optimize its cost structure and has implemented measures to ensure long-term growth and profitability [11][15] - Revenue guidance for 2025 remains uncertain due to the lack of visibility surrounding Tricare payments, with an anticipated Q1 revenue of approximately $30 million [39] Other Important Information - Tricare's temporary suspension of payments could significantly impact revenue, as it represents 20% to 25% of total revenue [19] - The company is undergoing a staff reduction of 15%, primarily affecting corporate office employees, which is expected to result in annual savings of approximately $35 million [23] Q&A Session Summary Question: What was accomplished in the fourth quarter regarding staff reductions? - The company achieved about $30 million in annual savings, with less than half realized in 2024, and expects further reductions in sales and G&A expenses [46][47] Question: What is the commercial path to market for the NiCO pulse oximeter? - The strategy includes direct sales, partnerships with distributors, and an indirect sales force to penetrate the market upon FDA clearance [52][54] Question: What was the nature of the 2022 audit by Tricare? - The audit was a routine post-payment audit with standard adjustments suggested, and no major issues were identified [58] Question: Why is there a lack of visibility into sales for 2025? - The uncertainty is primarily due to Tricare's significant role in revenue, and the company is cautious about providing guidance until more clarity is obtained [61] Question: What is the plan for the upcoming meeting with Tricare? - The company will present data from the 2022 audit and highlight compliance with previous adjustments during the appeal meeting [64] Question: Could other payers follow Tricare's lead in reviewing claims? - Management does not foresee a connection between Tricare's actions and other payers, emphasizing that each operates independently [70]

Company Overview - Zynex's share price was $10.10 as of July 22, 2024, with a market capitalization of $321 million[4] - The company's trailing twelve months (TTM) revenue as of June 30, 2024, was $193 million, with a gross margin of 80% and a net income of $6 million[4] - Zynex has $30.8 million in cash and cash equivalents as of June 30, 2024[4] - Insider holdings account for 51.5% of outstanding shares[4] Market and Growth - Zynex operates in an addressable market exceeding $4.6 billion, presenting high growth opportunities[5] - The electrotherapy market size is $950 million, excluding stroke treatment[10, 11] - The patient monitoring market size is $3.6 billion, excluding sepsis[10, 11] - The company's revenue has grown at a 4-year compound annual growth rate (CAGR) of 42%[5] Financial Performance - Zynex's TTM EBITDA is $22.4 million[5] - In 2023, 68% of Zynex's revenue came from supplies[15] - The company's revenue increased from $45.5 million in 2019 to $184.3 million in 2023, representing a 42% CAGR[50] - Zynex is targeting sales reps to achieve >$1 million in revenue per rep[36]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Financial Performance - Net revenue increased by $8.0 million or 4% to $192.4 million for the year ended December 31, 2024, compared to $184.3 million in 2023[218] - The company recorded a net income of $3.0 million for 2024, down from $9.7 million in 2023, marking a decrease of 69%[218] - Operating cash flows were reported at $12.7 million, a decrease of 28% or $5.0 million from the previous year[219] - Net cash provided by operating activities decreased to $12.7 million in 2024 from $17.8 million in 2023, primarily due to lower profitability and a decrease in accounts payable[242] Revenue Breakdown - Device orders grew by 16%, contributing to a 1% increase in device revenue to $59.6 million for the year ended December 31, 2024[230] - Supplies revenue increased by $7.2 million or 6% to $132.7 million for the year ended December 31, 2024, driven by a larger customer base[231] - Costs of revenue for devices and supplies increased by $1.1 million or 3% to $39.4 million, but as a percentage of revenue, it decreased to 20% from 21%[232][233] Expenses and Cost Management - General and administrative expenses increased by 24% to $60.4 million for the year ended December 31, 2024, compared to $48.5 million in 2023, representing 31% of revenue, up from 26% in 2023[235] - Sales and marketing expenses decreased slightly to $86.6 million, with a reduction in percentage of revenue from 47% to 45%[234] - The company is restructuring its staff, reducing overall headcount by approximately 10%, which is expected to save about $35 million annually[215] - Other expenses for the year ended December 31, 2024, were $2.4 million, primarily due to interest expense on Senior Convertible Notes, while other income in 2023 was $1.8 million[236] Cash Flow and Financing Activities - Net cash used in financing activities for the year ended December 31, 2024, was $17.1 million, mainly due to $15.6 million in treasury stock purchases[244] - The company repurchased approximately $15.6 million worth of common stock due to strong cash flow results[214] - The company issued $52.5 million in 5.00% Convertible Senior Notes in May 2023, with an additional $7.5 million from an over-allotment option[240] Tax and Working Capital - Income tax expense decreased to $0.6 million for the year ended December 31, 2024, with an effective tax rate of 17%, down from $2.8 million and 23% in 2023[237] - Working capital as of December 31, 2024, was $58.3 million, down from $69.3 million in 2023, with cash and cash equivalents at $39.6 million and accounts receivable at $18.0 million[238] Business Risks and Strategic Planning - TriCare, representing approximately 20-25% of annual revenue, temporarily suspended payments, prompting the company to seek reinstatement[214] - The company acknowledges risks and uncertainties in forward-looking statements, which could materially affect actual results[10] - Management's discussion includes expectations regarding future operations, margins, and profitability, highlighting strategic planning[10] - The company does not assume an obligation to update forward-looking statements, indicating a cautious approach to future projections[11] Asset Management and Valuation - The company allocates the purchase price of acquired companies to tangible and intangible assets based on estimated fair values, with excess recorded as goodwill[265] - Goodwill impairment assessments are conducted annually, with potential triggers including significant decreases in market price and adverse changes in business climate[266] - Contingent consideration liabilities related to business acquisitions are classified within Level 3, with fair value estimated using a Monte Carlo simulation[267] - The company emphasizes the uncertainty in management's estimates of fair value, which could lead to impairment of intangible assets if assumptions are not met[265] - Future cash flows from long-lived assets must exceed carrying values to avoid write-downs, indicating a focus on asset performance[266] - Significant adverse changes in legal or regulatory factors may trigger impairment reviews, reflecting the company's responsiveness to external conditions[266] - The company utilizes independent third-party valuation specialists for fair value assessments, ensuring accuracy in financial reporting[265]

Revenue Performance - Fourth quarter 2024 net revenue was $46.0 million, a decrease from $47.3 million in the prior year quarter[8] - Full year 2024 net revenue increased 4% to $192.4 million compared to $184.3 million in 2023[13] - Total net revenue for Q4 2024 was $45,974 million, a decrease of 2.8% from $47,284 million in Q4 2023[26] Net Income and Earnings - Full year 2024 net income was $3.0 million, or $0.09 per share, down from $9.7 million, or $0.27 per share, in 2023[14] - Net income for the year 2024 was $2,994 million, down 69.1% from $9,732 million in 2023[28] - The company reported a loss from operations of $563 million in Q4 2024, compared to a profit of $2,298 million in Q4 2023[26] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $0.6 million, significantly lower than $9.9 million in Q4 2023[11] - Adjusted EBITDA for Q4 2024 was $584 million, representing only 1% of net revenue compared to 21% in Q4 2023[30] Cash Flow and Expenses - Cash flow from operations for the full year 2024 was $12.7 million, down from $17.8 million in 2023[15] - Cash and cash equivalents at the end of 2024 were $39,631 million, a decrease from $44,579 million at the beginning of the year[28] - Total costs of revenue and operating expenses increased to $46,537 million in Q4 2024, up 3.4% from $44,986 million in Q4 2023[26] - Sales and marketing expenses for the year 2024 were $86,581 million, nearly unchanged from $86,659 million in 2023[26] - The company incurred interest expense of $615 million in Q4 2024, compared to $366 million in Q4 2023[30] Future Outlook - The company expects Q1 2025 net revenue of at least $30 million, with a projected loss per share of ($0.30) or better[16] - Orders for FY 2024 increased by 16% year-over-year[9] - The company plans to continue focusing on new product development and market expansion strategies in the upcoming year[30] Product Development and Innovation - The company received FDA clearance for a new TensWave device in 2024[9] - The NiCO laser pulse oximeter clinical trial at Duke University yielded positive results, utilizing advanced laser technology for more accurate blood oxygenation measurement[6] Restructuring and Cost Savings - The company is restructuring its staff, reducing headcount by approximately 15%, which is expected to save about $35 million annually[4] Shareholder Information - Weighted average diluted shares outstanding decreased to 32,187 million in Q4 2024 from 34,013 million in Q4 2023[26]

Core Insights - Zynex, Inc. reported steady growth in orders and profitability for 2024, despite a revenue shortfall in Q4 due to delayed payments from certain payers, particularly Tricare, which accounts for 20-25% of annual revenue [2][3][4] - The company is restructuring its workforce, reducing staff by approximately 15% to align with current revenue, which is expected to save around $35 million annually [4][5] - Zynex completed a successful clinical trial for its NiCO laser pulse oximeter, which utilizes advanced laser technology for more accurate blood oxygenation measurements [6] Financial Performance - Q4 2024 net revenue was $46.0 million, down from $47.3 million in Q4 2023, with a gross profit of $36.0 million, maintaining a gross margin of 78% [8] - For the full year 2024, net revenue increased by 4% to $192.4 million, with a gross profit of $152.9 million, representing 80% of revenue [12] - The company reported a net loss of $0.6 million in Q4 2024, compared to a net income of $1.2 million in Q4 2023, and an adjusted EBITDA of $0.6 million, down from $9.9 million in the prior year [10][12] Operational Updates - The company is focusing on payer expansion to mitigate near-term revenue challenges, with expectations for results to materialize in 2025 [5] - Zynex has maintained a healthy balance sheet, having repurchased over $80 million in shares, enhancing shareholder value [7] - The company anticipates Q1 2025 net revenue of at least $30 million, with a projected loss per share of ($0.30) or better, expecting revenue growth throughout the year [15]

Core Viewpoint - Zynex, Inc. will hold a conference call to discuss its financial results for Q4 and the full year of 2024 on March 11, 2025, at 4:15 PM Eastern Time [1] Group 1: Conference Call Details - The conference call will include a question and answer session following the management's presentation [2] - Dial-in numbers for the call are provided for both U.S. & Canada and international participants [2] - A webcast link will be available for those who wish to stream the call online [2] Group 2: Company Overview - Zynex, Inc. specializes in the development, manufacturing, marketing, and sale of non-invasive medical devices for pain management and rehabilitation [3] - The company also produces monitoring systems for fluid, sepsis, and laser-based pulse oximetry for hospital use [3] - Founded in 1996, Zynex has established itself in the medical technology sector [3]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive has a strong emphasis on technology adoption to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]