What caused ZYXI's earnings to decline throughout 2024?

Zynex Inc. (ZYXI) experienced a decline in earnings throughout 2024 due to a combination of factors:

1. Cyberattack Impact: The company was affected by a cyberattack, which had a significant negative impact on its operations and financial results. This incident likely led to disruptions in its business processes, increased costs, and a temporary decline in revenue.
2. Dip in Net Income: The net income of Zynex significantly decreased from $1.6 million in Q1 2023 to $10,000 in Q1 2024. This trend was not isolated to one quarter, indicating a potential underlying issue with profitability that may have been exacerbated by other factors.
3. Revenue Shortfall in Q1: Although total revenue for the year was reported at $192.35 million, the company fell short of estimated revenues in both Q1 2024, with reported revenue being $46.5 million compared to the estimated $47.69 million. This shortfall, especially in the first quarter, could have contributed to the overall earnings decline.
4. Flat Revenue in Q3: Revenue was flat in Q3 2024, with $50.0 million reported, similar to Q3 2023. The lack of growth in a key quarter may indicate broader challenges in sustaining revenue growth throughout the year.
5. Decreased Profit Margin: The profit margin decreased from 7.2% in Q3 2023 to 4.8% in Q3 2024. This decline suggests that despite maintaining revenue, the company's profitability was under pressure due to increased costs or operational inefficiencies.

In summary, Zynex's earnings decline in 2024 was likely a result of a combination of factors including a cyberattack, a dip in net income, revenue shortfall in Q1, flat revenue in Q3, and decreased profit margin. These issues collectively contributed to a challenging financial year for the company.