Zynex (ZYXI) 30 Apr 212021 Q1 Earnings call transcript

Good afternoon, and welcome to the Zynex 2021 First Quarter Earnings Call. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. release risks and, and this subject such, in numerous to uncertainties. statements are as forward-looking are Certain Actual results may or implied vary significantly from such the statements. in results expressed X-K, forward-looking results Risk the the with year releases XX-K company's XXXX, our Exchange press Risk XX, materially cause annual that the and described as actual ended Web including Forms section factors differ our December could Securities XX-Q from the well for Factors statements Commission, filings report are in Form and to in as site. of on is Please note recorded. this event being I to Executive would Chairman like Officer. to Sandgaard, Chief turn the conference and Thomas over Founder, Please go ahead.

Good XXXX afternoon. CEO our first and quarter President earnings is My Thomas call. Sandgaard, to of Zynex. Welcome name

growth sales traction. First to gain continued as our of excited year-over-year all, I'm force to announce order XXX%

of Our last quarter million first the increase was year. to compared of revenue XX.X quarter XX% same an

see to continue returns the as We normal. order to good economy flow

first last I XX% quarter of quarter orders the XXX% to the year. first in came the of fourth year, As last mentioned, quarter higher and compared sequentially than

prescribe in sales for As to an indication growth them had with up. our and there as in really their touch force and volumes relationships need were patients we are industry, The picking for previous quarter that. to has able continued that prescription part on speaks pain. many things non-addictive the strength in strength X% the And a in more to first orders the non-opioid, prescribers prior is solutions our range sequential double to seasonality that we'll comparison, of X% a as the average

to order over cash order and revenue of device and in XXXX receipt or of the second year related uses should majority and the profitability revenue two patient the the the lead of in which an reminder, supplies, following and half as beyond. expanding the related comes a to As an

of of end, slightly and sales we have second reps During sales half also a net these sales the We without force the and to the at placed in total continued materials. in-house of in on much just on a to will our of finished reps over by The four sales of of our XXX products is of that our productivity It slower force mention trimmed the line XXX XXX uninterrupted. which operations of below on hurt internal to first the I of sales many our directly months is orders assembly reps now our also focused our issues The reps. of on be our want expect quarter, with year-end of several supply still XXXX. year months remains growth months pace, practice components top obviously. second of XXXX. bottom to vendors hires XX shelf, happening a XXX keep hand net being sales for our added XX and compares addition will to chain the half additional we

supply we’ve up the levels. chain XXXX. of should During more which resulted half be We response to And inventory possible issues taken million COVID. in early position X XXXX approximately back excess a to and inventory again any of year, levels increased normal our in in during normal of conservative this towards second

XXX,XXX further a square The growth, when from the Monday the issue opioid expansion and feet feet for square us from in The footprint lease the of morning yearly Currently, As and opioids will being building. with our use to a due within moving for the new the abuse. on facility, a new street this the just headquarters line in serious new we we're building gives into XXX,XXX combined this off few our to as approximate in building, opioid XX,XXX the devastating to treating production square physicians die pain. starting feet an existing to first increasingly impact just are due the a announced headquarter, down month, tens epidemic to and building technology earlier approximately conveniently this the corporate prescription our level strength facilities where apart. country, thousands miles are to of get be defense and has working continues patients reached expand

technology develop to of make literally our effects. tools continue We no that aware to physicians side has more

for some examples in InWave rehabilitation rehabilitation the in the NexWave stroke and the the that markets. products strong as very best treatments rehabilitation and products a the pain device still stand Our products for management, are for of industry, for in of management product us incontinence NeuroMove pain out our puts position

non-invasive blood leading potential early great for our have will blood confident we surgical and in as bleeding this have be our our clinical Division, internal as month, both become Solutions we detection well and soon used of existing marketing, potential of standard see background, the hired Monitoring Operations efforts. Don area Sales research management being engineering loss for monitor. technology revenue situations I'm Don’s sales, volume will our a during division, Earlier huge we With product post where blood to generating as surgery. to care detect continue unmet recovery for Gregg our We in of as well our volume for President and as Vice pain monitor. Donald

apply is well products, Don Business Medtronic wealth experience built Health and a Systems Vice force, soon. Infusion Informatics Marketing to a infusion in roles Monitoring. clearance for CM-XXXX of is and monitoring Senior also patient market brings He full sales Director to hope decision While software that Manager Zynex. direct and remote underway production, Smith the launched previously leadership General clinical commercialized and next of of applications. Don successfully Development Medical's the of for President Product, CM-XXXX we FDA held already at and at generation and and support

by agreements, partnership of grew strategic businesses and of a innovating distribution each sales executing and he result these plans As digits. new products, creating double

clearance CM-XXXX is we FDA a monitor a flow get know, blood CM-XXXX obtained surgical ago intended in about you The monitor. three As the on patient’s to on also hospitals managed non-invasive year and balance monitor patents volume to probably monitor centers. and recently our most of already

needs begin complications filed sepsis, we technology today. detection We less ORs a well a safer to I one hospitals of a occur. of typically surgeries biggest and for in lead potential and should fewer recovery loss the also early I the today complications unmet displace product are mention up will when new recently point rooms that that initially and as bleeding and application internal this to ICUs surgeries, patent expect as prototyping. until where target will blood soon serious detect to mortality, We believe common difficult

underway now with engineering are results We solid settings. our hospitals over well that next use have preparing devices to at in the continue preliminary turn to CM-XXXX the seeing to see a is commence team on shortly. Wake the studies prototypes more demo interest in building generation would device Dan easier We're I again Forest surgical and on that clinical and device study Moorhead, of purchasing CFO. call will even from be to our from the

Thomas. Thanks,

XX.X XX% Orders First, year-over-year to million. I’ll Supplies Device XX% year-over-year grew XX% last year. XXX% to grew of first XXXX quarter million from view were revenue revenue Gross XXXX. net million results. to revenue the in in quarter increased XX.X to increased X.X margins X.X $XX.X XX% compared XX.X million our XXXX. million from first million and

put grew term As production but will transitioned This warehouse sales in we a gross to Much our increased our Sales functions year-over-year. QX. expense short efficiency, to to in order our we facility our of increase as XX% mentioned grew increased the will patient on XXX% headcount G&A and by growth. margins. was previously, some related year-over-year, force expenses enhance reimbursement and in new XXX% marketing greatly our the related support and pressure year-over-year.

or is standard our of expense XXX,XXX in First $X.XX loss loss non-cash, EBITDA share. release, an stock-based and calculation severance in a income and a per the quarter XXXX. net is and EBITDA, Adjusted had other of press of quarter and first which a reconciled $XXX,XXX was exclusion plus compensation of

XX, increased of half which million, level is this out balance as XXXX. of of sheet, second was the cash during balance the from down our inventory, but On much will is the March to year end, which XX.X related

the Our $XX.X March With I'll turn XX. now to that, at over back Thomas. working call million capital was

XXX% Thank management sales you, orders our Dan. revenue justifies I'm of of pleased support and personnel, growth investments XX%. functions. in It clearly with our year full sales growth our and in inside

course, increasing Our G&A as focus continuing to selling to for rep well improve sales made investments importantly, on in the helping normal as our its the in most leverage and patients profitability, side we XXXX is to as resumes pain. sales productivity

at but than sales growth pace our force XXXX, continue in will We a XXXX. slower in

convert the is QX grew grew sales force, our year. the have QX second signs right investments of orders as investment orders year-over-year. in We growing will all last and year-over-year This half in orders made the primarily These the year showing XXX% XXX% quarters return sales and and to therefore as revenue and get a of we eventually expect into XXXX. out, the relationship into line to and revenue over the much third further expenses between top healthier next we fourth

million. quarter deductibles, As revenue means be year. between of our XX million million We throughout it and how quarter year always and this much in an EBITDA XX.X always, estimate seasonality revenue to insurance progresses the X than our first X lower between second with million beginning the with adjusted is

revenue The million. of and of XX the is above couple potential approximately year to for long-term disappearance management, revenue second XX% includes revenue EBITDA of main advantage acquisitions market quarter for year again, This the And void force and is as XX quarter between to sales is of XXXX and growing second electrotherapy XXXX’s market after full between our full huge the technologies. range revenue about rehab our to XXX than XXX estimated million. the million, The to goal as a huge estimate take XXXX. higher XX% is of grow division share domestic adjusted with XX.X My to pain in complementary well XX% prescription continue and competitors. the the of our XX% million of million

and And revenue the from questions productive. two goal all sales that our long-term in the is quarter growth announced to and fully in We up profit a see territories orders will make it and to second drive of Our we get takes in XXX the fully second to take years fill reps productive. half we now summary, U.S. the on sales which listeners. XXXX. rep average In typically will still strong

We [Operator will now begin Instructions]. question-and-answer the session.

question Our first Piper comes O’Brien with Sandler. Please go ahead. from Matt

of that reps This of of what rep that try the issues question here. multipart place you commentary. bring uncomfortable particularly led what group three, to measures far are Hi, from the trim sales attrition as questions. seeing I putting as Drew you're is your you you don't a force? One, I reps to on voluntary sure Thanks you a on kind for run want you lot that Two, off you just as a abnormal make same in here? to seeing that Good are perspective? anything onboard Matt. And of afternoon. start then for guys. with the to kind taking have into were

answer, reps. normal If shortest don't leaving relative company about the having take than question would last terms I the XXX of in any the sales be more see first, attrition that's probably because we to

of the were so lot months half obviously in bit of a to more more the little one a a quite in look second as of we gave force. process of the a two XX maybe a sales the or parameters emphasis rep. part adding and the actually many We loyalty see sales we year. comes When that's reps at, it of lenient last on sign. days sales put probably So We first good of

first literally -- emphasis in We put develop. of was their months put scrutiny. lot orders a reps those on a of how few it So under lot were January, on

is And some it very up of up much won't obviously to survive. the days. there that orders So have XX coming to we a simply benchmarking keeping are amount within and minimum

were we the we second trimmed little. a reps than time, in the so half. sales sales And hiring rate At at new then a slower force our same

third So of in that a up And we we've we rate hired sales reps about did. a until that started January. what today, at was

the the that just up kept during barely that quarter. we've hit So with seen first attrition

will lot of that later obviously come the now in territories we particular year know we territories. growing start we quarter towards in not whole have producing. we like filled – sales is up very don't be years to XXX, to the this loose now tie third high be performing the net have when then ends those result great That that that they XXX that the need so here, -- reps, and we until into a get year, we of the something is take in force we sales of perhaps up up that break So so a is that and deliberate, they’ll through

XX it easier sales of addition those territories move our for forward. regional be So as managers will manage reps, to we those the

So financials answers when question. we sales we just many what quarter at force back think are obviously And the your later to profitability. the that see it's the we we that that second we'll we time rough about the because sales that new again you'll indicated But for I quarter, with as we as had growing seasonality see, already of in something start hope reps low then year. that of the relatively a can revenue our is insurance deductibles. same hired

maybe as of of at here, XXX above makes April share end could the that are Yes, or -- this sense. you And below you point?

I right number XXX. last saw was below The

that then you Okay, And a in the to sense. now to line And half. reps I expect a of little the until pretty obviously makes guidance. hire little It like is at on a with looks bit guide the much push QX the want street. second pace slower bit just

the seasoned you perspective implies reps. up of second fairly step in those need from productivity that a So from big a half some

be us of XXX% year a Yes. on But numbers we order growth May you'll is growth COVID for saw in of pretty maybe XXXX. we're sets right because second orders last growth much in at year. to in the or quarter. quarter significant first primarily XXX% I obviously like confident hit in probably and and the again, order looking in some about April, But XXX% Part in May see confident the the that April we're beginning order kind here than the in now. that June. That’s something see pretty last revenue higher stage that

I could you're confidence fourth revenue speak quarter the that just seasoned of wondering if rep you of third in what seeing those year. give the Okay. was kind reps in you kind that of some to from larger and of

or XX reps if see brand a you take top reps, Right. actually -- good Actually, of -- top have we our just the as all at in reps up more that up that the are a few we XX category well pretty new or a inching just already getting the time. little mix seasoned sales running as our are either of normal cadence

of a pretty they to regional the highly just few rep. actually new seasoned not in recruiting, have outdid couple that it's first gotten now very better months XX I with So several make sure managers at they training. There past are And sales over years the Again, better of that their hands a we here deployed quickly. ones the get when reps. eventually holding productive become think

very Thank you much. Okay.

Thanks, Drew.

go Ladenburg comes ahead. from Cohen Our Thalmann. Please with question next Jeffrey

Dan. and How Thomas Hi, are you?

you Jeff? How We’re are doing great. doing,

fine. Just

into any was looks Is first, like than of mix higher we and typically always It expected. to a but function like one, through in I the supplies? just supplies that devices utilization? bit read particular this ask a So what

Yes, close to it’s pretty normal.

be and We’re generally of in should a running having We about it range. we variance, that was QX. QX a of but XX/XX kind XX/XX, bit little in talked XX% sometimes

in territories. a seeing existing little new getting a there. the now more can bit force wonky traction with or see And sales seeing between starts physicians providers that are the about it. traction? that you But talk higher your got little more you're I more the prescribing into, know than do Okay, you're better out doctors QX’s is traction you where with

Yes, a dealing with the I of the normalized, doctors meaning into dealing way of second clinics, from things in sales changed found patients as terms well year. that last that as second think with and half representatives quarter

same. saw of the So year about first the here end and the what we from last was into quarter

terms A before four now that. lot three a start need probably move in show force you've to grab That's easy significant in-services entirely see in our do reps up doctors and masks be changes or our and around reflection orders. sales in freely, seen months we’ll in more really the some and new it for real another sending here. sales come just to try to it's So will of without We of beginning of how hallway. are what

Sometimes that's account, et what opens up new a cetera.

orders the the a to So year, still dramatically. very quarter going second it's quarter us entirely see the last percentage reflection we increasing orders of growth a in keep was now, and a made especially in little of it terms of reflection right reputations second and is rough we're sales on have we that

got planning planned volume particular as the as any look for commentary you're it. far XXXX number me, the during unit. XXXX? And something then Okay, XXXX? that XXXX? for that on then producing a on And lastly for the that Is there Is blood what's like

I'm so separate is animals. and thinking two efforts the -- engineering manufacturing

can made terms so XXX finish of about up we those. the In we CM-XXXX, enough of

the we these For them and we fast many in being just the hospitals we'll sell, we make degree a XXXX. XXXX that CM-XXXX. I -- to used a to at need get goes an to the could of to generation to to terms how was clinical how many depends looking how literally need or in on the now, be depend stone as invoice -- of can placed it stepping some it the the But CM-XXXX maybe keep of again, it with be make be more look already next to the sent of we’re how a CM-XXXX can eventually days, how feeling on fast studies them how And to I for at meaning get it have many XXXX well how we’ll long most ready out will them. those on and done. quickly get to

Okay.

first one obsolete the model make for and and to all because That easily, wireless of us partly the the other be pretty was user obvious interface that things that obsolete. easy would

step inventory second Okay, that be see XXXX in in about, down of balance got And more or will the it. quarter? the you the pronounced spoke throughout we'll that

over items a in thing. shipments that way the are a matter simply It's that orders that's out. a they year well making placed -- on it's have the Yes, sure slow we buying on out have we those of spread for we keep moving

a of we up inventory end lower as indirectly will that, result So with values.

We having many the of as to also been We've benefit negotiate from prices on components been assembly able to better well costs. negotiate better as prices. the able

So prices in are cost well. general decreasing as our

will But it see kicks really on the help that financials, later before year So that. cetera, on that it be again, and in too. the you et it hits that will in will

perfect. does Okay, for it questions. That for Thanks the me. taking

Thanks, Jeff.

go question next from comes H.C. ahead. Chen Please Our Wainwright. with Yi

for My taking just the you my on question Thank follow questions. inventory. first to up

X say would X is the level inventory millions? and normal of So you somewhere million between

No, level we're appropriate million, that million at an between would business for X now. be running and right X the

Okay.

if subsiding but COVID-XX the is another level is the pandemic the will again? there in So, inventory U.S., wave country, up go hitting

that have sent pandemic running, the Well, up we and we started more us samples second or sources is just improved also than products. COVID one prototypes having their are rather things of have of the actively since

That like us eventually we because will disaster to more up more effectively be would take we products on and little the those allows lean So period a little risk even able that a during see more hit to that docket. have potentially be simply a running. we suppliers

we say necessarily, do. not but So I’d

are that the the beginning coming those for of hired XXXX, firm And they there any sales members second the personnels of during with you of half are the XXXX? are train, all at you Okay. or personnel from group

question. really I'm understand I didn't sorry. your

I'm new relatively sales trained you your they reps, sales asking of right? team, those personnel have are all

are. year. Yes, half them hired most last They the of in second

time for right? a Okay. But has also, that with there the been are a few long firm quite

have there over been for reps with us are that XX Yes, years.

Okay.

occur the last that term. is in you approved later going you sometime this year, year? this to be volume XXXX So blood the expect monitor that question Is to said near

will be the we to out. a right need be I comfortable in with how the now, basis the that cetera. the But improving for predicate to That prototyping how more the looking obviously expand question. and use on lot a then we be data same sent at good than first the little forward, it a FDA. generation plays going can would et That's and that indications, keep easier device, XXXX we’re just it the obviously because as

would in you the does the if approved model the it future? more of instead make model commercialize year, this get XXXX XXXX So would that sense just later it

make side We reasons. We will at the but on et -- over ease terms as to to to safe have of some physically we obviously your we also like make to same right collection, the of CM-XXXX, over of in the the But traditional decision of the want data more terms XXXX. cetera, will stay there. to It them easy a use more big that instead time. look sure be would fairly one might in be take which jump skip I and commercial the process, trying of that the clearance for one FDA monitor, to

and Just to XXXX, there clarify, is XXXX. XXXX

in [indiscernible]. will That’s of that course, right. probably And, continue future the

come with continue up other or we'll do We numbering companies like some product. names for fancy that system will their

separate Does a require each approval? FDA model new

along so probably away We'll of like for it use that for They to use, probably more we that more next to wouldn't. we a use play try that generation but by get product we as do But to that, new to add we to there's tag following product. I'd generation no indications have try strategically need could have simply when with it. indications the

it to strategy that our do So it's part of way.

you. Thank Okay.

Marc Please with Securities. Riley B. next go from ahead. comes question Our Wiesenberger

and the how well? the in Thanks. you Can talk that's and first afternoon. about sequentially year-over-year evolved Good payer as mix quarter

a this is The company pretty constant. month? the difficult moving target. definitely It has been. mix most is same. is It always the of Who fairly or payers today insurance That much still is

slow see it's company can more And be one that's they of Sometimes insurance how things all us about of to you how the with area. difficult terminology as really terms sales in slow payment down in give the that medical obviously lot then to forces obviously a industry up the another in. they're clinics et incentivized It's us. down thing. excuse, loosen is to That's way hit us paying they direct better much we And can same we're orders, payments the pretty cetera. our also

So fundamentally, first when nothing we really changed. first hit has that of try Obviously, account by and always the insurance is we into take quarter quarter to deductibles heavy report revenue for the year.

Got it, understood.

big You force to the reach sales in prescribers. have made investments

However, in to direct order you have you marketing plan patient or further do engage any could that growth? drive

No.

Okay.

I'm different end or spent through all now et user $X for continents, on strategy. this. million $XXX and would It no on make a only and if so $XX life not my with This strategy, we dealt absolutely advertising different cetera. pull sales or approach old difference marketing industries, million I've works

doing was a of than looking kind the those of maybe normal you on normal aspects? your Got the in of in year? of reduction might aren't factor that baked it, the into maybe maybe elective people normalization to quarter, would are growth a fact and terms prescribers just what's activities say some some maybe less in different of surgeries kind And a they at a injuries larger impacts the or access Maybe that okay. maybe outlook be or

a last therefore taking impacted level months that COVID, historically, then, what probably definitely of Since what going prescribers. to not used restricted – in access saw until has see look we reached today more several much and May a before was that's to orders exactly more be take up it was it say there. before and more by we normal that the would we year, if uncertainty April change to and I

are However, them they because some of and reps we've of stay many productive, our now are very productive somewhat still being how hiring term. can been if becoming long numbers some onboard monitored -- some and

of less filled. some as in our reps anything people a long more we behave today. two But there's as and long clinics for same numbers and behave by professionally sales The hire again, there. rep productive thing again, real obviously addition their still it's being patients. can to we more is right Our the don't of -- Maybe how much order a the our of much. our than need then see of it's for as slower internal impacts slow a And there's get and than getting Yes, impacted business way sales a make XXX that more to territories are to they bit. or as little that ago. be, as exactly our is or ask impacts But not the country? in issue think triple double long significantly growth time, sales -- it was clinics it’s I the go. reps that still up a that's we terms the easily appropriately activities it's not ask their it that producing as is and Elective into numbers. not It's force we But throughout surgeries, little come still average It's the as in as to area. you orthopedic it appropriate it fewer moving maybe possible. respectful, to XXX something reps Are used now. And sales but all orders year a these there really sure because making long-term in macroeconomic

bouncing of rest about you about think how Can then a back for one throughout Understood. that Maybe the the as year? year --? we and spending kind COVID, in of increases And of much me. for expectations how final last talk result was throughout should the removed

aggressively. removed lot most doubled because whole think the opposite to down. started a have We hiring direction companies Don’t more decided go and we than we

the other out better applications actually keep had were companies because talent more and access increasing back had entirely, pool than scaling year up infrastructure a And or dropping normal. to much orders. we So to with we during last

would the reps. normally line. the expenses have are now [indiscernible] workforce G&A And than many on to line the we aggressively slower we our of that it that that be. was than sales were smarter able portion But So a top bigger still added grow we and bottom

So, Dan, I we do saved? anything where have can -- don't know point you you have to

We’ve when ones. of training think the coming $XXX,XXX training. things were and that sales on to for were classes month $XXX,XXX doing in. between biggest those I big started that about talked Those a saved we the and couple we And a related savings remotely

think did efficiencies. I have we some

efficiencies other than the doing some travel and say had the But that some in we in things past. things company had and probably would every a I think I came Zoom little one. largest was of because different the

Great. Thank much. you very

Thanks, Marc.

[Operator Instructions].

question with ahead. James Northland go next Please from comes Our Securities. Terwilliger

Hi, Tom. Can you hear me?

Loud clear. Hi, and Yes. James.

Great, questions thanks. couple. got But, course, of I've been of answered. a have Most my

of that. growth way. kind behind just all, really to of reimbursement perspective nice reimbursement but ask any change in the from as see us. the is from nothing looking at I do everyone I But from in stable? the question XXXX I release. That's just thought first XXXX My what this first the insurance wanted There's you environment companies numbers is you pretty the rates in So it. is seasonality has about issue can significant you deductible and a a heard, different did to moved question or that's

move that established, it's little There just can are you bit, not allowable say and parts Yes. amounts say two that insurance stable. I fairly they a should or or companies around moving have pricing

bit. us. just improve some on hammering they been a Some little keep areas, areas, In able we've to pricing

coverage patients, supplies or of one other well. those patient not and is is variable of that also and devices as The allowable the approved for success could send say rate the targets the you are out moving with probability our we quantities to

So some improving, insurance are bit. and allowed it, terms by again, the to going But the the what's a And some both from quantity constant. little companies, changes in of side companies, it of are side seems be the insurance all pricing volume allowed what's down all time. on

from it So no years Not yet. change looked different lot a ago. XX whole what like

second My to thanks the question been answering one on age so is for sales for I years, that. date you or – My the you’ve And you. really that XX question not want reps. second

So the go correctly, and XXXX. if to XXX today target the you're XXX at approximately to I of heard is end by it

Correct.

should Is XXXX really the XXXX? of when I that it of half my that sales and percentage marketing is and increase. looked in an as throughout spread that? about how -- QX QX second that model, had really kind And we the of Because revenue think was evenly a at

into of it in digest and second maybe you more of is my you're XXXX, now may spread I breath should more the move of year? and higher concludes reps you or your are [ph] looking timing catching Hopefully question. at what XXXX? hires How the kind as be hire half this evenly your a think you for have So of

Right.

last very the of reason first I quiet. the year, fairly are this different still point a than rate July attrition we hiring half assume be same of basically For slowly, the will to And would year. that

that's year, about the as I at that net. September, with I us keep but much late a August stepping leave year. our maybe was plus around XX say But And sales approximately we'll a and probably we rate of force, of rate simply get should But it into the XXX. because would to what end getting right net same think month as again, adding a early year. would of as deployed people, et training them of net reps cetera, a the slow down last December practicalities as of XX still November, third during not start we’ll up last it the

be half would we second sales that a rate year. So in of added of a the how third reps last of

a will it lot easier getting expensive. but start manage, more it will to So be

directly the to amount we're However, next revenue of third of the year. see to quarter is growth and fourth the year going seeing now in the right correlated we're into order and following

So the base be proportionally will and that get hurting fourth into quarter less of the the so much salaries right lot when third a we now are year.

you're answering a build you're expense how -- little think or invest think should How of support support that my revenue comfortable bit the maybe to functions about function, in given the with the I growth. is I guys make putting You've you revenue guidance. your modeling for the this that should and Maybe as about G&A. the of How to patients I my of of of to however support growth talked which a percentage touched that. -- on fantastic I'm trying just should But should Okay, for I how G&A taking sure this support I'm think for think CFO, G&A upon forward maybe expenses And and be like purposes earlier, think up, I one. a maybe to but believe got reimbursement and -- functions. you question, patient you've in might in last it I going kind those XXXX? target

to though will I James, a expense about of down kind start even it, QX from revenue. of dollar would trickle from at the XX% perspective. increase It was will look there

I pretty did we and the is by then that probably current to should the out the and based kind on have took out XX% end it of to think there, and you evenly get down revenue close. if XX% layered model year consensus you you of closer that the

guys. nice for Well, growth nice -- and on Thank thanks job And on impressive Take care, thanks the the you. clarity the again, numbers. job guys.

Thanks, James.

concludes like closing to turn Thomas to remarks. would question-and-answer over the session. for any our back I Sandgaard This conference

interest all. today's this hope earnings call a to been has Zynex for and appreciate Thank day into informative And listening you the Thank you. everyone. call. I and in I great

presentation. conference for The today's you Thank now concluded. has attending

may disconnect. You now