On October 26, 2023, Zynex Inc (ZYXI, Financial), a leading medical technology company, released its financial and operational results for the third quarter ended September 30, 2023. The company reported a 20% increase in revenue to $49.9 million, up from $41.5 million in the same period last year. The growth in net revenue is primarily attributed to a 39% growth in device orders, resulting from an increased customer base.
Financial Highlights
Net income for the quarter totaled $3.6 million, or $0.10 per basic and diluted share, compared to net income of $4.9 million, or $0.13 per basic and diluted share, in the quarter ended September 30, 2022. Adjusted EBITDA for the three months ended September 30, 2023, was $7.3 million, compared to $8.1 million in the same period last year.
As of September 30, 2023, the company had working capital of $83.1 million. Cash and cash equivalents and short-term investments were $52.4 million at the end of the third quarter. Cash provided by operations for the three months ended September 30, 2023, was a record high $8.9 million.
Business Developments and Future Outlook
Thomas Sandgaard, President and CEO of Zynex, highlighted the company's continued profitability and record positive cash flow, which allowed the announcement of an additional $10 million share repurchase plan. The company's pain management division introduced three new therapy products in the third quarter, and the pre-revenue hospital monitoring products division has three additional products in the pipeline.
For the fourth quarter of 2023, Zynex estimates revenue to be between $52.5 million and $57.5 million, an increase of approximately 13% from Q4 2022. The estimated Diluted EPS for Q4 2023 is between $0.17 and $0.22. For the full year 2023, the company estimates revenue of $189.5-$194.5 million and Diluted EPS of $0.40-$0.45 per share.
Conclusion
Zynex's Q3 2023 financial results reflect the company's continued growth and profitability. With a strong product pipeline and a focus on expanding its direct salesforce, Zynex is well-positioned to continue delivering value to its shareholders.
Explore the complete 8-K earnings release (here) from Zynex Inc for further details.
