Savvy Trades and Investments

[rado]

ZYXI Earnings out
Looks like they have gotten more profitable with $.17 diluted. Annualized that is $.68
https://finance.yahoo.com/news/zynex-announces-2021-third-quarter-200100552.html

I didn't look closely at the 10Q but one the surface looks like they have changed the profitability trend positive with $.17 diluted. Annualized that is $.68
For an annualized p/e of around 17-18 for a stock growing revenue at 70%. (not totally fair as first quarter is weaker)
They have hired a ton of salespeople so that has depressed the bottom line for a while, but now their new sales are finally hitting the bottom line. CEO has said they will hire slower and I think they cut non-producing salespeople so that probably helped the bottom line.
CEO says a fully ramped salesperson can generate $1M in revenue. Current # of sales reps is 450 and 550 is expected by the end of the year. That would have them top out at $450M to $550M in revenue versus the ~$115 TTM they have now.

"Our long-term goal is to fill all 800 territories in the U.S." so they plan to have 800 reps in the future.


https://www.fool.com/earnings/call-transcripts/2021/07/30/zynex-inc-zyxi-q2-2021-earnings-call-transcript/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Some negatives - alot of their sales are regular alkaline batteries and electrodes. I think they had hired a VP of sales that left so the culture isn't all that great. Hweb and KiK think they are crooks.