Company Prepares for New Global E-Commerce Infrastructure with Upgraded Websites, Global Marketplace 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 financial results for the second quarter ended June 30, 2022.
Financial highlights of the quarter ended June 30, 2022 included:
Net sales for the second quarter reached a record of $2,871,479, an increase of approximately 47% from the $1,956,260 reported in the comparable period in 2021, resulting in a net sales growth of 88.7% for the first six months of 2022 versus 2021. Strong global demand for satellite-based connectivity and communications products and recurring revenue 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 fulfill customer orders.
Strong sales activity in Europe and North America continued throughout the second quarter. The Company's Global Telesat Communications Ltd. ("GTC") unit in the U.K. posted a 2022 net sales increase of 39% compared to the second quarter of 2021, and its US unit, Orbital Satcom Corp. ("OSC"), reporting a net sales increase of 64% over the 2021 net sales.
During the quarter, the Company continued to set new operational milestones including record growth in direct, year-to-date non-ecommerce sales of more than 500%, record high Amazon sales and reached the highest number of quarterly sales transactions in its history. In the second quarter, the Company completed product sales to customers in 104 countries, all 50 US States and all 27 EU countries.
Operating expense increases in the quarter were largely driven by $646,027 of non-cash stock compensation expenses, increased SG&A expenses, and increased staffing and marketing costs.
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 pleased that our second quarter results continue to demonstrate our ability to generate impressive top-line performance during a time where global demand for satellite-based connectivity and tracking solutions is significantly outpacing supply. In response to increased demand, our team is working to ensure that we can continue to efficiently meet the needs of customers by implementing additional enhancements to our platform, securing additional inventory, and increasing the diversity of products we can offer," said Charles M. Fernandez, Executive Chairman and CEO of NextPlat.
David Phipps, President of NextPlat and CEO of Global Operations, added, "Thanks to our previous investments into inventory, we were able to generate strong e-commerce results despite significantly constrained global product availability. Importantly, supported by our newly upgraded and expanded infrastructure, we are now seeing strong transaction growth in both the Business-to-Business (B2B) and Business-to-Consumer (B2C) segments of our business, at our company-owned websites as well as at our third-party marketplaces including Amazon, Alibaba, and E-Bay."
Operational and organizational highlights of the quarter ended June 30, 2022, and recent developments included:
The Company continued development of 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 rollout of additional marketplaces and product listings, enabling the Company to quickly add a growing selection of satcom hardware as well as all other types of physical and digital goods and services.
The Company has begun the modernization of its existing ecommerce websites, adding expanded accessibility, functionality, and features. The Company's global site, gtc.co.uk and its North American site, osat.com, will be relaunched in the third quarter.
The Company has advanced 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 drop digital assets including non-fungible tokens ("NFTs"). Initial discussions with potential customers and partners have commenced and the Company expects to announce additional details on this strategic initiative later this year.
Mr. Fernandez concluded, "Utilizing our recently completed investments in our technology infrastructure and e-commerce platforms, we are now entering the next phase of our strategic growth plan, specifically, expanding into new market sectors through acquisitions and joint ventures. By leveraging the significant new capabilities of our global e-commerce platform, we can bolster our growth in the satcom market for physical assets and begin our move into the digital space with the further 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 new, valuable long-term revenue streams."
About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets for physical and digital assets. The Company intends to collaborate with businesses, optimizing their ability to sell their goods online, domestically, and internationally, and enabling customers and partners to optimize their e-commerce presence and revenue. NextPlat currently operates an e-commerce communications services division through its Global Telesat Communications Ltd and Orbital Satcom Corp business units that offer voice, data, tracking, and IoT services to customers worldwide through multiple global storefronts.
Certain statements in this 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," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which 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 business in crypto currencies and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization 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 from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
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