NextPlat Reports Record Q2 2022 Revenue Driven by Global eCommerce Demand
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Company prepares for new global e-commerce infrastructure with enhanced websites, global market expansion and development of NextPlat digital NFT platform
COCONUT GROVE, FL/ACCESSWIRE/August 15, 2022/ NextPlat Corp (NASDAQ: NXPL, NXPLW) (“NextPlat” or the “Company”), a global e-commerce provider, today announced its financial results for the second quarter ended June 30, 2022.
Financial highlights for the quarter ended June 30, 2022 included:
- Net sales for the second quarter reached a record $2,871,479, an increase of approximately 47% over the $1,956,260 reported during the comparable period in 2021, resulting in sales growth 88.7% for the first six months of 2022 compared to 2021. Demand for satellite communications and connectivity products and recurring revenues from airtime services continued to drive sales. Global supply chain issues and the unavailability of many popular products during the quarter continued to limit the Company’s ability to fully meet customer orders.
- The strong commercial activity in Europe and North America continued throughout the second quarter. The Global Telesat Communications Ltd. unit. (“GTC”) of the company in the United Kingdom recorded a 39% increase in net sales in 2022 compared to the second quarter of 2021, and its United States unit, Orbital Satcom Corp. 64% increase in net sales compared to 2021 net sales.
- During the quarter, the company continued to set new operational milestones, including record year-to-date non-e-commerce direct sales growth of more than 500%, record Amazon sales and achieved the highest number of quarterly sales transactions in its history. In the second quarter, the company concluded product sales to customers in 104 countries, all 50 US states and 27 EU countries.
- Increases in operating expenses during the quarter were largely due to $646,027 of non-cash stock compensation expenses, increased SG&A expenses, and increased personnel and marketing expenses.
- Net loss for the quarter ended June 30, 2022 was $1,655,861 compared to a net loss of $1,458,394 reported for the quarter ended June 30, 2021.
- The Company ended the quarter with approximately $20.5 million in cash.
“We are delighted that our second quarter results continue to demonstrate our ability to generate impressive performance at a time when global demand for satellite connectivity and tracking solutions significantly exceeds supply. In response to increased demand, our team is working to ensure we can continue to effectively meet customer needs by implementing additional enhancements to our platform, securing additional inventory and increasing the diversity of products we can offer,” said Charles Mr. Fernandez, Executive Chairman and CEO of NextPlat.
David Phipps, President of NextPlat and CEO of Global Operations, added, “Thanks to our previous investments in inventory, we have been able to generate strong e-commerce results despite significantly limited global product availability. , we are now seeing strong transaction growth in both the Business-to-Business (B2B) and Business-to-Consumer (B2C) segments of our business, across our company-owned websites as well as in our third-party marketplaces, including including Amazon, Alibaba and eBay.
Operational and organizational highlights for the quarter ended June 30, 2022 and recent developments include:
- The Company continued to develop its state-of-the-art ERP system, integrating its global e-commerce, CRM, accounting and marketing systems. NextPlat is currently enhancing its internal platform to support the rapid deployment of additional marketplaces and product listings, allowing the company to quickly add a growing selection of satcom hardware as well as all other types of physical and digital.
- The company has begun modernizing its existing e-commerce websites, adding enhanced accessibility, features and functionality. The company’s global site, gtc.co.uk, and its North American site, osat.com, will be relaunched in the third quarter.
- The Company advanced the development of its Web3-enabled digital e-commerce platform, NextPlat Digital. NextPlat Digital will be a customizable platform that will provide customers and brands with direct access to mint and depository digital assets, including non-fungible tokens (“NFTs”). Initial discussions with potential customers and partners have begun and the Company expects to announce additional details on this strategic initiative later this year.
Mr. Fernandez concluded, “With our recent investments in our technology infrastructure and e-commerce platforms, we are now entering the next phase of our strategic growth plan, in particular expanding into new market sectors through through acquisitions and joint ventures. significant new capabilities in our global e-commerce platform, we can strengthen our growth in the satellite communications market for physical assets and begin our transition into the digital space with the development of NextPlat Digital. Once launched, NextPlat Digital will help brands and partners of all kinds to tap into the excitement of Web3, enabling them to capitalize on the future of e-commerce, build communities and create valuable new revenue streams at long term.”
About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth industries and markets for physical and digital assets. The Company intends to collaborate with businesses, to optimize their ability to sell their products online, both domestically and internationally, and to enable customers and partners to optimize their presence and revenues in e-commerce. NextPlat currently operates an e-commerce communications services division through its Global Telesat Communications Ltd and Orbital Satcom Corp business units which offer voice, data, tracking and IoT services to customers worldwide through multiple global storefronts.
Certain statements contained in this press release constitute forward-looking statements. These statements include the capabilities and success of the Company’s business and any of its products, services or solutions. The words “believe”, “plan”, “project”, “intend”, “expect”, “plan”, “should”, “would” and similar expressions and all statements, which do not are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company’s ability to launch additional e-commerce capabilities for physical and digital assets, transact in crypto -currencies and its ability to grow and develop over time. expected, which could prevent the Company from achieving some or all of its objectives or the actual results, performance (financial or operational) previously announced of the Company, including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that could affect the making of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (the “SEC”), copies of which may be obtained on the SEC website. at www.sec.gov. The Company undertakes no obligation to update any forward-looking statements contained in this press release and hereby disclaims any obligation.
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