Zynex, Inc. (ZYXI) Misses Q4 EPS by 1c; Offers 1Q & FY21 Revenue Outlook

Zynex, Inc. (NASDAQ: ZYXI) reported Q4 EPS of $0.05, $0.01 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $25.61 million versus the consensus estimate of $25.8 million.

2020 Fourth Quarter

• Revenue increased 81% year over year to $25.6 million
• Orders increased 117%
• Net income of $1.8 million; Diluted EPS $0.05
• Adjusted EBITDA $3.4 million

President and CEO Commentary:Thomas Sandgaard, CEO said: "I am excited to announce our eighteenth consecutive quarter of positive net income. In the fourth quarter, we posted revenue of $25.6 million, which is the highest quarterly revenue in the history of the Company and net income of $1.8 million. Orders grew 117% compared to the fourth quarter of 2019.

We are pleased with our accomplishments in 2020 despite the pandemic and reiterate the potential of our business as we move into 2021. Our continued order growth during this pandemic shows the strength of relationships our sales force has with many prescribers and the need for them to prescribe non-opioid, non-addictive prescription strength solutions for their patients in pain.

In the fourth quarter, we continued to focus on the execution of our growth strategy and the related growth of our sales force as we eclipsed 500 sales reps and expect to have over 600 by the end of 2021.We expect the new sales reps primarily added in the second half of 2020 to add significantly to our order growth in the first half of 2021 and therefore positively impact revenue growth in the second half of 2021 and forward.

We continue to advocate for pain patients, and for physicians to prescribe our NexWave technology as the first line of defense in treating chronic and acute pain without side effects. We are dedicated to promoting our technology in an effort to remove patient addiction and other side effects from prescription opioids."

GUIDANCE:

Zynex, Inc. sees Q1 2021 revenue of $23-24.5 million, versus the consensus of $28.35 million.

Zynex, Inc. sees FY2021 revenue of $135-150 million, versus the consensus of $144.01 million.

Full year 2021 revenue is estimated between $135.0 and $150.0 million with Adjusted EBITDA between $15.0 and $25.0 million. The full year revenue estimate is approximately 68% to 87% above 2020 revenue of $80.1 million.

The estimated range for first quarter revenue is between $23.0 and $24.5 million with an Adjusted EBITDA loss of between $0.5 and $1.5 million. First quarter revenue is historically affected by health insurance deductibles not being met in the beginning of the year. The combination of seasonality of deductibles along with the sales force investments we've added during 2020 and slower ramping of sales orders due to COVID-19 restrictions are factors which will produce a small loss in Q1. We expect profitability to ramp quickly throughout the year to meet our Adjusted EBITDA forecast of $15 to $25 million for 2021.

The revenue estimate for Q1 is approximately 51% to 61% above 2020 first quarter revenue of $15.2 million.

For earnings history and earnings-related data on Zynex, Inc. (ZYXI) click here.

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