Zynex (ZYXI) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Company overview and market positioning

• Focuses on pain management and hospital monitoring with best-in-class devices, treating over a million patients to date.

• NexWave is the flagship electrotherapy device, generating most revenue in pain management.

• Long-term revenue goal for pain management is $800 million, with 2024 estimates near $200 million.

• Sales rep base is just under 400, with plans to expand prescriber network.

• Faces minimal competition due to product range and insurance coverage capabilities.

Product development and differentiation

• NexWave offers three modes: interferential current, NMES, and TENS, while TensWave is a single-mode TENS device.

• TensWave targets patients without insurance coverage for multimodality devices; less than 10% of patient base.

• TensWave is not expected to materially impact order growth.

• NiCO laser-based pulse oximeter uses laser light to identify four hemoglobin types, improving accuracy across all skin tones.

• HemoOx and blood/fluid monitors are in development, leveraging the same platform as NiCO.

Sales force and growth strategy

• Order growth for NexWave was 20% in Q2 2024, expected to remain near that level for the year.

• Sales rep productivity rose 26% in Q2, with average tenure under 18 months and a goal of $1M annual sales per rep.

• Sales rep headcount expected to stay flat in 2024, then grow by 10-15 reps per month in 2025, reaching mid-to-upper 400s.

• Sales force and productivity are primary growth drivers.