Zynex, Inc. (NASDAQ: ZYXI) reported Q3 EPS of $0.04, $0.01 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $20 million versus the consensus estimate of $21.13 million.

• Revenue increased 69% year over year to $20.0 million
• Orders increased 96%
• Net income of $1.3 million; Diluted EPS $0.04
• Adjusted EBITDA $2.4 million

President and CEO Commentary:

Thomas Sandgaard, CEO said: "I am excited to announce our seventeenth consecutive quarter of positive net income. In the third quarter, we posted revenue of $20.0 million, which is the highest quarterly revenue in the history of the Company and net income of $1.3 million. Orders grew 96% compared to the third quarter of 2019.

"Similar to most companies we have seen the impact of the COVID-19 pandemic. As we announced in our flash report earlier this month, our Q3 revenue was less than we originally expected but we've made great progress in 2020. Our original revenue guidance in 2020 before the world-wide economic slowdown related to COVID-19 was $75-$80 million, our current full year revenue guidance is $80-$81 million, approximately 77% growth compared to 2019. Our current Adjusted EBITDA projection for 2020 will exceed 2019 and includes adding over 300 sales people during the year and an investment in sales and marketing of approximately $20 million. This investment puts us in a dominant position going into 2021 as the largest supplier of prescription strength electrotherapy devices for pain management in the US.

"I think it's important to reconcile what we've accomplished to date 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 third quarter, we continued to focus on the execution of our growth strategy and the related growth of our sales force as we eclipsed 400 sales reps and expect to have over 500 by year-end. We expect the addition of new sales reps to have an impact on order and revenue growth in fourth quarter and going forward. In addition, we continue to invest in our infrastructure to support the increase in order volume.

"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 Q4 2020 revenue of $25.5-26.5 million, versus the consensus of $25.85 million.

Zynex, Inc. sees FY2020 revenue of $80-81 million, versus the consensus of $81.48 million.

• The estimated range for fourth quarter revenue is between $25.5 and $26.5 million with Adjusted EBITDA between $2.3 and $3.3 million. The revenue estimate is approximately 80% to 87% above 2019 fourth quarter revenue of $14.2 million.
• Full year 2020 revenue is estimated between $80.0 and $81.0 million with Adjusted EBITDA between $12.5 and $13.5 million. The full year revenue estimate is approximately 76% to 78% above 2019 revenue of $45.5 million.

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