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]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The company delivers news and insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - 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]

Core Insights - Zynex, Inc. has announced a partnership with Veterans Affairs Medical Centers (VAMCs) to enhance access to noninvasive pain management solutions for veterans [1][4] - The VA spends over $112 billion annually on healthcare, servicing over 9 million enrolled veterans, presenting a significant market opportunity for Zynex [2][3] - Currently, less than 1% of Zynex's sales come from VAMCs, indicating substantial potential for sales expansion within the largest healthcare network in the U.S. [2][4] Company Overview - Zynex, founded in 1996, specializes in the development, manufacturing, marketing, and sale of medical devices for pain management and rehabilitation [5] - The company also produces non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for hospital use [5] Market Context - The Department of Veterans Affairs operates 171 VAMCs and over 1,100 outpatient facilities, alongside approximately 700 Military Treatment Facilities (MTFs) managed by the Department of Defense, creating a vast healthcare network for veterans and service members [3]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...