Financial Data and Key Metrics Changes - Net revenue for Q4 2024 was 46million,adecreasefrom47.3 million in Q4 2023 [33] - Device revenue decreased to 14.8millionfrom16.3 million year-over-year, while supplies revenue increased slightly to 31.2millionfrom31 million [33] - Gross profit remained stable at 36million,representing78615,000, compared to a net income of 1.2millioninQ42023[35]−AdjustedEBITDAfellto584,000 from 9.9millioninthesamequarterlastyear[35]BusinessLineDataandKeyMetricsChanges−Revenueincreasedby4490,000 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 800million[13]CompanyStrategyandDevelopmentDirection−Thecompanyisdiversifyingitsrevenuestreamsbyaddingnewproducts,includingprivatelabelproductsinbracingandcompression[7]−Focusonexpandingthesalesforcetonewprescribers,includingnationalworkers′compensationchainsandtheVA[7]−Thecompanyaimstomaintainalong−termgrowthvisiondespiteshort−termdisruptions,emphasizingtheimportanceofproductdiversification[14]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthelong−termprospectsofthecompany,despitechallengesrelatedtoTricare′stemporarypaymentsuspension[12][37]−Thecompanyisrestructuringtooptimizeitscoststructureandhasimplementedmeasurestoensurelong−termgrowthandprofitability[11][15]−Revenueguidancefor2025remainsuncertainduetothelackofvisibilitysurroundingTricarepayments,withananticipatedQ1revenueofapproximately30 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]
Zynex(ZYXI)2025-03-12 02:09