Revenues and gross profits up 61% driven by
growth at Orgad and Naiz Fit
AIRPORT CITY, Israel, Aug. 14,
2023 /PRNewswire/ -- MySize, Inc.
(NASDAQ: MYSZ) (TASE: MYSZ.TA) ("MySize" or the
"Company"), an omnichannel e-commerce platform and provider of
AI-driven measurement solutions to drive revenue growth and reduce
costs for its business clients, today reported financial and
operational results for the three months ended June 30, 2023.
Key Financial Highlights for the Three Months Ended
June 30, 2023 Compared to Prior Year
Period
- Consolidated revenue increased 61% to $1,290,000 primarily driven by growth at Orgad
and the acquisition of Naiz Fit
- Gross profit increased 61% to $519,000
- Gross profit margin remained stable at 40%
- Cost of revenues increased 61% to $771,000
- Operating loss narrowed 6% to $1,554,000
- Net loss narrowed 25% to $1,291,000
- Inventory balance at June 30,
2023 was $1,043,000
Business & Operational Highlights for Q2 2023
- MySizeID and Naiz Fit SaaS apparel sizing solutions achieved
key milestones:
- 5 million end users worldwide
- 35.6 million size recommendations made
- 17.9 million items purchased through 7 million orders
- up to 65% reduction in size-related returns compared to
shoppers who did not use MySize's sizing solutions for the same
SKUs at the same online stores
- €790 million worth of items sold to Naiz Fit and MySizeID
users
- SaaS revenues from MySizeID, Naiz Fit, and Smart Catalog more
than doubled as compared to the first quarter of 2022
- Orgad sales in the first half of 2023 on Amazon alone were
$1.74 million
- Orgad made a strategic shift to utilizing Fulfillment by Amazon
(FBA) rather than fulfilling directly, reducing exposure to
inventory risk and contributing to operating efficiencies
- Luxury Italian menswear fashion brand Canali implemented the
Naiz Fit sizing solution across all 32 of its ecommerce sites in
Europe and the U.S.
Management Commentary
"MySize's strength is evidenced by robust revenue growth coupled
with decreasing operational costs during the second quarter.
Orgad's revenue momentum is ramping as we focus sales outreach on
the North American market while increasing Orgad's profitability by
implementing advanced AI tools," stated MySize Founder and CEO
Ronen Luzon. "As our SaaS based
apparel sizing solutions produce impressive results for digital
merchants, including reduced returns, higher conversions and higher
sales, our R&D spending is down, while recurring revenues
continue to increase. We've also gained significant cost reductions
by re-allocating resources with respect to our SaaS business to
Naiz Fit's operations hub in Spain
to capitalize on existing synergies across our business segments.
For the balance of 2023, we expect continued robust growth revenue
growth and improved operating efficiencies as we move toward cash
flow positive."
Financial Results for Three Months Ended June 30, 2023
Revenue for the three months ended June
30, 2023 increased 61% to $1,290,000 compared to $801,000 for the three months ended June 30, 2022. The increase was primarily
attributable to growth at Orgad as well as from SaaS revenues
generated by Naiz Fit, which was acquired in the third quarter of
2022.
Gross profit for the three months ended June 30, 2023 increased 61% to $519,000 compared to $322,000 for the three months ended June 30, 2022. The rise was primarily due to
increased sales at Orgad and SaaS revenues generated by Naiz
Fit.
Operating loss for the three months ended June 30, 2023 narrowed 6% to $1,554,000 compared to operating loss of
$1,652,000 for three months ended
June 30, 2022, primarily driven by
higher revenues, gross profits, and declines in sales and marketing
and research and development expenses.
Net loss for the three months ended June
30, 2023 narrowed 25% to $1,291,000, compared to a net loss of
$1,716,000 for the three months ended
June 30, 2022, mainly due to
increased revenues and reduced expenses.
Cash and cash equivalents totaled $1,127,000 at June 30,
2023.
About MySize Inc.
MySize, Inc. (NASDAQ: MYSZ) (TASE: MYSZ.TA) is an omnichannel
e-commerce platform and provider of AI-driven measurement solutions
including MySizeID and recently acquired Naiz Fit to drive revenue
growth and reduce costs for its business clients. Orgad, its online
retailer platform, has expertise in e-commerce, supply chain, and
has technology operating as a third-party seller on Amazon.com and
other sites.
MySize has developed a unique measurement technology based on
sophisticated algorithms and cutting-edge technology with broad
applications, including the apparel, e-commerce, DIY, shipping, and
parcel delivery industries. This proprietary measurement technology
is driven by several algorithms that are able to calculate and
record measurements in a variety of novel ways. To learn more about
MySize, please visit our website: www.mysizeid.com.
We routinely post information that may be important to investors
in the Investor Relations section of our website. Follow us
on Facebook, LinkedIn, Instagram,
and Twitter.
Please click here for a demonstration of how MySizeID
provides a full sizing solution for the retail industry.
To learn more about MySize and for additional information,
please visit: our website: www.mysizeid.com.
Forward-looking Statements
This press release contains certain forward-looking statements
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, including statements
related to the financial condition, possible or assumed future
results of operations, growth opportunities, plans and objectives
of management. These statements are identified by the use of the
words "could," "believe," "anticipate," "intend," "estimate,"
"expect," "may," "continue," "predict," "potential," "project" and
similar expressions that are intended to identify forward-looking
statements. All forward-looking statements speak only as of the
date of this press release. You should not place undue reliance on
these forward-looking statements. Although we believe that our
plans, objectives, expectations and intentions reflected in or
suggested by the forward-looking statements are reasonable, we can
give no assurance that these plans, objectives, expectations or
intentions will be achieved. Forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions that could cause actual results to differ
materially from historical experience and present expectations or
projections. Actual results may differ materially from those in the
forward-looking statements and the trading price for our common
stock may fluctuate significantly. Forward-looking statements also
are affected by the risk factors described in the Company's filings
with the U.S. Securities and Exchange Commission. Except as
required by law, we undertake no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of
unanticipated events.
Investor Contacts:
Or Kles, CFO
ir@mysizeid.com
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SOURCE My Size Inc.