- Q4 revenues were approximately $2.5 million
- 2023 revenues expected to double over 2022 levels based
on current run-rate
AIRPORT CITY, Israel, April 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 twelve months ended December
31, 2022.
Key Financial Highlights for the Year Ended December 31, 2022 Compared to Prior Year
Period
- Consolidated revenue increased 3304% to $4,459,000, primarily attributable to revenue
generated following the acquisition of Orgad
- Software-as-a-Service (SaaS) revenues from MySizeID and Naiz
Fit increased 150% to $327,000
- Gross profit increased 384% to $634,000
- Operating loss decreased 23% to $8,110,000
- Net loss decreased 21% to $8,310,000
- Cash balance at December 31, 2022
of $2.1 million, plus $3 million raised in January 2023
Business & Operational Highlights for 2022
- Acquired Naiz Fit of Spain,
creating synergies that position MySize to become one of the
leading measurement solution technology providers in the fashion
industry and to accelerate growth by broadening tech solution
offerings, expanding European footprint, global marketing &
sales infrastructure; these SaaS solutions produce high-margin
recurring revenues
- Acquired Orgad, an omnichannel e-commerce platform, which made
a significant contribution to revenue and gross profit growth in
2022; Orgad is headquartered in Israel and operates globally, including the
U.S. and Europe, and has a
presence on Amazon.com
- Launched new products including FirstLook Smart Mirror, an
interactive, mirror-like touch display that provides shoppers in
physical stores with an enhanced, online shopping experience and
contactless checkout; and Naiz Fit's Smart Catalogue, an innovative
new SaaS based solution that helps fashion designers create
patterns that optimize fit, with the aim of reducing unsold items,
improving economics for fashion brands and retailers, while
reducing environmental footprint
- Formed JV with Santista Textil to serve $33 billion apparel market in Brazil
- MySizeID and Naiz Fit sizing solutions adopted by a growing
number of fashion brands in 2022 including 7 for All Mankind,
Temperly of London, Forint; as
well as Diesel (Colombia), Natura,
Rotholz, and Harper & Neyer shortly following the end of
2022
Management Commentary
"We are very pleased to have effectively executed our growth
plans and achieved revenues of $4.5
million in line with our previous guidance. Importantly, our
fourth quarter revenues, which came in at about $2.5 million are a strong indication that we are
on a path to double revenues in 2023. While our gross profits have
certainly increased this year, gross margins narrowed, as a larger
percentage of our revenues were generated through Orgad, as
compared to our sizing solutions which yield margins of higher than
90%. Following our acquisition of Naiz Fit, we expect approximately
$1,000,000 in sizing solution
revenues in 2023, which we believe will further improve the trends
in our gross profits and corresponding operating and net loss
results which continue to narrow towards break-even," stated MySize
CEO and Founder, Ronen Luzon.
"A growing number of the top names in fashion are now on the
MySizeID and Naiz Fit sizing platforms. The data we've collected
with our brand partners show clear and quantified benefits that
include increased average basket value, increased conversion, and
reduced returns as compared to shoppers who do not use our sizing
solutions. Along with the economic and customer satisfaction
benefits of reduced returns, environmental sustainability is
increasingly becoming a driving factor for brands implementing our
solutions," Luzon concluded.
Financial Results for Twelve Months Ended December 31, 2022
Revenue for the twelve months ended December 31, 2022 increased 3304% to $4,459,000 compared to $131,000 for the twelve months ended December 31, 2021. The increase was primarily
attributable to $4,132,000 in revenue
generated from Orgad commencing on February
7, 2022, the date the Orgad's acquisition was closed.
Revenues from Naiz Fit were recorded as of October 11, 2022, the date of the closing of the
Naiz Fit acquisition.
Gross profit for the twelve months ended December 31, 2022 was $634,000 compared to $131,000 for the twelve months ended December 31, 2021. The increase was primarily
attributable to Orgad's revenues. Cost of revenues increased in
comparison with the corresponding period of 2021 due to the cost of
goods sold for revenues generated from Orgad's operations, as well
as cash and equity liabilities expenses related to the Orgad
acquisition.
Operating loss for the twelve months ended December 31, 2022 totaled $8,110,000 a decrease of $2,467,000 compared to operating loss of
$10,577,000 for the twelve months
ended December 31, 2021.
Net loss for the twelve months ended December 31, 2022 was $8,310,000, compared to a net loss of
$10,520,000 for the twelve months
ended December 31, 2021. Total
comprehensive loss including foreign currency translation
differences for the twelve months ended December 31, 2022 was $8,541,000, compared to a net loss of
$10,502,000 for the twelve months
ended December 31, 2021.
Cash and cash equivalents totaled $2.1
million at December 31, 2022.
During January 2023, the Company
raised gross proceeds of approximately $3
million.
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
concerning financial condition, possible or assumed future results
of operations, growth opportunities, industry ranking, plans and
objectives of management, markets for our common stock and future
management and organizational structure. Forward. 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. Some of the
risks, uncertainties and assumptions that could cause actual
results to differ materially from estimates or projections
contained in the forward-looking statements include but are not
limited to: our history of losses and needs for additional capital
to fund our operations and our inability to obtain additional
capital on acceptable terms, or at all; risks related to our
ability to continue as a going concern; the new and unproven nature
of the measurement technology markets; our ability to achieve
customer adoption of our products; our ability to realize the
benefits of our acquisitions of Orgad International Marketing
Ltd.and Naiz Bespoke Technologies, S.L; our dependence on assets we
purchased from a related party; our ability to enhance our brand
and increase market awareness; our ability to introduce new
products and continually enhance our product offerings; the success
of our strategic relationships with third parties; information
technology system failures or breaches of our network security;
competition from competitors; our reliance on key members of our
management team; current or future litigation; current or future
unfavorable economic and market conditions and adverse developments
with respect to financial institutions and associated liquidity
risk; and the impact of the political and security situation in
Israel on our business. 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.