Zynex(US:ZYXI)2024-03-01 01:12Financial Data and Key Metrics Changes - The company reported record revenue of $184 million for 2023, representing a 17% increase from the previous year [6][34] - Net income for 2023 was $9.7 million, or $0.27 per basic and diluted share, compared to $17 million, or $0.44 per share in 2022 [37] - Cash from operations increased by 29% in 2023, reaching a record $17.8 million [42] - In Q4 2023, net revenue was $47.3 million, down from $48.8 million in Q4 2022, but adjusted for a receivables allowance, it would have been $53.5 million, a 10% increase year-over-year [38] Business Line Data and Key Metrics Changes - The Pain Management division saw a 29% order growth in Q4 and 43% for the full year [22][10] - Device revenue increased by 35% to $58.8 million in 2023, while supplies revenue rose by 9% to $125.5 million [34] - The Monitoring Solutions division is still pre-revenue but is expected to submit an application for a laser-based pulse oximeter in mid-2024 [18][29] Market Data and Key Metrics Changes - The company has expanded its sales force to approximately 475 sales reps, with an annualized revenue per rep of about $415,000, a 5% increase over 2022 [24] - The company is focused on diversifying its revenue streams, with the NexWave product now accounting for only 25% of total orders, down from 85% [15] Company Strategy and Development Direction - The company aims to fill all 800 sales territories and enhance the productivity of its sales force, which is still relatively new [14] - The introduction of the M-Wave device is expected to improve patient management and expand the product portfolio [11][12] - The company is also pursuing a potential going-private transaction with private equity firms [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent growth and strong financial performance in 2024, with expected revenue of approximately $227 million, a 23% increase over 2023 [46][20] - The company anticipates additional regulatory milestones and catalysts throughout the year [20] Other Important Information - The company repurchased $14 million of common stock in Q4 2023, totaling $38.4 million for the year [43] - Management emphasized the balance between investing in business growth and returning cash to shareholders [44] Q&A Session Summary Question: Clarification on receivable allowance - Management clarified that the $6.2 million allowance was related to slow-collecting accounts and is not tied to a specific account [49] Question: Update on blood volume monitor and public readouts - The focus is currently on the noninvasive laser pulse oximeter, with the blood volume monitor still in clinical trials [50][51] Question: Strategic alternatives and guidance for 2024 - Management is in discussions regarding a potential going-private transaction and expects to provide updates in a few months [60] Question: Expected growth from NexWave in 2024 - Management indicated that while NexWave will continue to be a significant growth driver, there is a push to grow revenue from other products as well [68]