Reiterating 2023 revenue guidance of $9 - $10
million
AIRPORT CITY, Israel, May 15, 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 March 31,
2023.
Key Financial Highlights for the Three Months Ended
March 31, 2023 Compared to Prior Year
Period
- Consolidated revenue increased 78% to $720,000 primarily attributable to revenue
generated following the acquisition of Orgad
- Software-as-a-Service (SaaS) revenues from MySizeID and Naiz
Fit increased 223% to $142,000
- Cost of revenues was $1,147,000,
mainly due to an inventory write-down of $643,000 due to a fire that occurred at the
warehouse which stored part of Orgad's inventory in January 2023
- Operating loss was $2.5 million,
mainly due to the fire-related inventory markdown
- Net loss was $2.65 million
- Cash balance at March 31, 2023
was $2.6 million
- Inventory balance at March 31,
2023 was $491,000
Business & Operational Highlights for Q1 2023
- MySizeID and Naiz Fit's AI-driven sizing solutions were adopted
by the following brands:
- Diesel, for its Colombian
ecommerce site through an agreement with Estudio de Moda S.A.S., a leading Colombia-based retail company with a portfolio
of brands including Diesel, Celio, Superdry, Marithe François
Girbaud, and Replay
- Canali, across its 32 ecommerce sites
in Europe and the U.S.
- Harper & Neyer, a leading
Spain-based menswear brand's
global ecommerce sites
- Rotholz, a German sustainability
brand
- Natura, an iconic Spanish eco-brand
- MySize announced its plans to launch MySizeID for pets to help
get the right fit and maximize apparel comfort for dogs and cats;
dog apparel is estimated to become a $7
billion market by 2028,
Management Commentary
"While we continued to show strong growth over the first quarter
of last year driven by increases in revenues from Orgad and our
SaaS sizing solutions, we did see an expected quarter-over-quarter
decline from the fourth quarter of 2022 to the first quarter of
2023 based on holiday-related apparel shopping trends," stated
MySize CEO and Founder, Ronen
Luzon.
"We are seeing positive indications from both our business
segments during and after the first quarter and we plan to continue
to invest in inventories for Orgad. A warehouse in Israel which stored part of Orgad's inventory
had a fire, causing a write-down and distorting what we believe
would otherwise have been continued favorable gross margin and
operating trends.
"With five more major fashion brands implementing our sizing
solutions, this high margin business segment continues to grow. We
reiterate our 2023 revenue guidance of between $9 to $10 million
as we expect revenue momentum in the coming quarters.
"While reaping the revenue growth benefits of our acquisitions,
we are improving operating efficiencies by reducing redundancies
and lowering costs. In May, we initiated a transfer of several
functions from Naiz Fit in Spain
to Israel."
Financial Results for Three Months Ended March 31, 2023
Revenue for the three months ended March
31, 2023 increased 78% to $720,000 compared to $404,000 for the three months ended March 31, 2022. The increase was primarily
attributable to Orgad, which was consolidated for 3 months in the
first quarter of 2023 as opposed to 2 months in the corresponding
period. Increased revenues from MySizeID contributed to the
year-over-year revenue rise, as well as revenue generated from Naiz
Fit, which was acquired in the third quarter of 2022.
Gross profit for the three months ended March 31, 2023 was ($427,000) compared to $153,000 for the three months ended March 31, 2022. The decrease was primarily due to
a warehouse fire and the associated write-down of part of Orgad's
inventory.
Operating loss for the three months ended March 31, 2023 totaled $2,492,000 an increase of $387,000 compared to operating loss of
$2,105,000 for three months ended
March 31, 2022, primarily due to the
fire related write-downs.
Net loss for the three months ended March
31, 2023 was $2,654,000,
compared to a net loss of $2,188,000
for the three months ended March 31,
2022, mainly due an increase in cost of sales and an
inventory mark-down due to the fire related write-downs.
Cash and cash equivalents totaled $2.6
million at March 31, 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
technology operating as a third-party seller on Amazon.com and
other sites. MySize recently launched FirstLook Smart Mirror, a
mirror-like touch display that provides in-store customers an
enhanced shopping experience and contactless checkout. FirstLook
Smart Mirror extends MySize's reach into physical stores and is
expected to contribute to revenues through unit sales and recurring
service fees.
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 acquisition, expected revenues, and the expected
closing of the acquisition. 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.