Q2 2024 Zynex Inc Earnings Call Transcript
Key Points
- Zynex Inc (ZYXI) reported a 20% year-over-year increase in orders, marking the 9th consecutive quarter of record high order numbers.
- Revenue per sales rep increased by 26% over 2023, indicating improved sales efficiency.
- Gross profit margin remained strong at 80%, consistent with the previous year.
- The company continues to diversify its product offerings, with rehabilitation products now making up 28% of total orders.
- Zynex Monitoring Solutions division is progressing towards the commercialization of the NICO pulse oximeter, with FDA submission expected by the end of the year.
- Despite the increase in orders, the overall revenue for 2024 is expected to be lower than initially anticipated.
- Net income for the second quarter of 2024 was $1.2 million, a significant decrease from $3.4 million in the same period of 2023.
- Sales and marketing expenses increased to $23.2 million in Q2 2024, up from $21.6 million in Q2 2023.
- The reduction in the sales force has impacted near-term revenue growth, although it is expected to improve long-term productivity.
- The company's guidance for 2024 revenue growth has been revised down to approximately 9%, compared to previous higher expectations.
Good afternoon, ladies and gentlemen, and welcome to the Zynex Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. 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. Good afternoon, everyone. Earlier today, Zynex released financial results for the second quarter ended June 30, 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; 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
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