NextPlat Announces 144% Increase in First Quarter 2022 Revenue as E-Commerce Demand Surges; Cash Balances Increase to Approximately $22M or $2.36 Per Share
Company Expands E-Commerce Footprint with Alibaba.com Storefront as Demand for Essential Communications Equipment and Airtime Services Drives Record RevenuesCOCONUT GROVE, FL / ACCESSWIRE / May 16, 2022 / NextPlat Corp (NASDAQ:NXPL)(NASDAQ:NXPLW) …
Company Expands E-Commerce Footprint with Alibaba.com Storefront as Demand for Essential Communications Equipment and Airtime Services Drives Record Revenues
COCONUT GROVE, FL / ACCESSWIRE / May 16, 2022 / NextPlat Corp (NASDAQ:NXPL)(NASDAQ:NXPLW) ("NextPlat" or the "Company"), a global e-commerce provider, today announced financial results for the first quarter ended March 31, 2022.
Financial highlights of the quarter ended March 31, 2022 included:
- Net sales for the first quarter reached a record of $3,577,778, an increase of over 144% from the $1,461,428 reported in the comparable period in 2021. Driving the sales increase was continued strong global demand for satellite-based connectivity and communications products and services, as well as increases in equipment rental fees and recurring revenue airtime services.
- Continuing strong demand in the major markets in North America and Europe drove increased sales at the Company's Global Telesat Communications Ltd. ("GTC") unit in the U.K. by more than 156% and at the Company's US unit, Orbital Satcom Corp. ("OSC"), by more than 119%.
- During the quarter, the Company completed sales transactions with customers located in 108 countries including all 27 countries in the EU, all 50 US states, and many countries in Africa, Asia, the Middle East, and South America.The Company achieved several performance milestones including triple digit growth across several key markets, all-time high average transaction values, and record growth of 750% in direct non-ecommerce sales. Continued strong growth in global e-commerce sales has placed the Company in the top 1% of marketplace sellers on Amazon worldwide based on 2021 sales data (Source: Marketplace Pulse). The Company's revenue from Amazon sales increased by 85% in the quarter versus the same period in 2021.
- Gross profit margins for the quarter ended March 31, 2022 was approximately 22% versus approximately 29% reported in the same period ended March 31, 2020. The decrease in margins resulted from a significant increase in the cost of hardware, shipping, and freight costs due to supply chain disruption, and an increase in the value of orders from international resellers.
- Net loss for the quarter ended March 31, 2022 was $850,083 compared to a net loss of $803,142 reported for the quarter ended March 31, 2021. The increased loss was primarily caused by increased public company overheads and staffing costs following the Company's May 2021 Nasdaq listing, professional fees including legal and accounting services, and increased advertising and promotion costs.
- The Company ended the quarter with approximately $21.9 million in cash, or approximately$2.36 per share. The increase in cash was the result of the proceeds from the $7.2 million private offering of common stock completed in January 2022.
"Record operating results in the first quarter of 2022 reflect a continuation of the strong global demand for satellite-based connectivity and tracking solutions, a trend that started early last year and remains well above expected levels. In the first quarter, NextPlat's satcom e-commerce operations benefited from several factors including increased investments into inventories, a general easing of COVID restrictions in several geographies as well as the unprecedented demand for critical communications products in response to the situation unfolding in Ukraine," said Charles M. Fernandez, Executive Chairman and CEO of NextPlat.