Q1 2024 Zynex Inc Earnings Call Transcript
Key Points
- Zynex Inc (ZYXI) reported an ongoing revenue momentum, marking the eighth consecutive quarter of record-high order numbers with a 10% year-over-year increase.
- The company reaffirmed its 2024 revenue guidance of at least $227 million despite a temporary delay in revenue recognition due to a cyber event.
- Zynex Inc (ZYXI) saw a positive cash flow from operations amounting to $2.1 million in the first quarter, an improvement from the previous year.
- FDA clearance was received for the new M-Wave neuromuscular electrical stimulation device, which is now in production and shipping to patients.
- The company is making significant progress in its hospital monitoring division, including advancements in its blood and fluid monitor and laser-based pulse oximeter, which are expected to drive future growth.
- Revenue for the first quarter was slightly lower than expected due to a cyber event at Change Healthcare, which disrupted claims processing across the healthcare sector.
- The cyberattack led to delayed payments from a large group of payers, impacting the company's ability to submit claims and causing a suspension in claim payments.
- Net income for the first quarter was minimal at $10,000, significantly lower compared to $1.6 million in the first quarter of 2023.
- General and Administrative expenses increased significantly to $13.3 million in Q1 2024 from $7.4 million in the same period last year, indicating higher operational costs.
- The company is still in the process of ramping up its hospital monitoring division, which represents a large market opportunity but is currently pre-revenue and requires further development and clinical trials.
Good afternoon, ladies and gentlemen. And welcome to the Zynex first-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to Quinn Callanan from MZ North America. Please go ahead.
Thank you, operator, and good afternoon, everyone. Earlier today, Zynex released financial results for the first quarter ending March 31, 2024. A copy of the press release is available on the company's website.
Joining me on today's call are Thomas Sandgaard, Chairman, President, and Chief Executive Officer; Dan Moorhead, Chief Financial Officer; Anna Lucsok, Chief Operating Officer; and Donald Gregg, President of Zynex Monitoring Solutions.
Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC including, without
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