Third Quarter 2023 Financial Results
Net revenue was $49.9 million for the three months ended September 30, 2023, an increase of 20% from $41.5 million in the prior year quarter. The growth in net revenue is primarily related to a 39% growth in device orders, which resulted from an increased customer base.
Gross profit in the quarter ended September 30, 2023, increased to $40.4 million, or 81% of revenue, as compared to $33.1 million or 80% of revenue, in 2022.
Sales and marketing expenses were $22.1 million for the three months ended September 30, 2023, compared to $17.2 million in the prior year period.
General and administrative expenses for the three months ended September 30, 2023 were $12.7 million, versus $9.4 million in the prior year period.
Net income for the three months ended September 30, 2023, totaled $3.6 million, or $0.10 per basic and diluted share, as compared to net income of $4.9 million, or $0.13 per basic and diluted share, in the quarter ended September 30, 2022.
Adjusted EBITDA for the three months ended September 30, 2023 was $7.3 million, as compared to $8.1 million in the quarter ended September 30, 2022.
As of September 30, 2023, the Company had working capital of $83.1 million. Cash and cash equivalents and short-term investments were $52.4 million at the end of the third quarter. Cash provided by operations for the three months ended September 30, 2023 was a record high $8.9 million. Cash provided by operations for the nine months ended September 30, 2023 was $11.6 million compared to $9.0 million in the nine months ended September 30, 2022.
The Company continued its latest stock buyback by repurchasing $14.9 million of its common stock during the third quarter and has repurchased $51.0 million during the last eighteen months.
Fourth Quarter and Full Year 2023 Guidance
Fourth quarter 2023 revenue is estimated to be $52.5-$57.5 million, an increase of approximately 13% from Q4 2022. Fourth quarter Diluted EPS is estimated to be $0.17-$0.22.
2023 estimates are revenue of $189.5-$194.5 million and Diluted EPS of $0.40-$0.45 per share. The revenue range is based on best estimates of labor market conditions and sales rep productivity. Diluted EPS is impacted by increased operating expenses to support ZMS as the Laser-based Pulse Oximetry products are prepared for FDA submission and the fluid monitor is readied for the market.
Conference Call and Webcast Details
Thursday, October 26, 2023, at 4:15 PM Eastern Time (1:15 PM Pacific Time)
To register and participate in the webcast, interested parties should click on the following link or dial in approximately 10-15 minutes prior to the webcast: Q3 2023 Webcast Link
US Participant Dial In (TOLL FREE): 1-844-825-9790
International Participant Dial In: 1-412-317-5170
Canada Participant Dial In (TOLL FREE): 1-855-669-9657