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Company expands e-commerce footprint with Alibaba.com Storefront as demand for essential communications equipment and airtime services drives record revenue
COCONUT GROVE, FL/ACCESSWIRE/May 16, 2022/ NextPlat Corp (NASDAQ:NXPL)(NASDAQ:NXPLW) (“NextPlat” or the “Company”), a global e-commerce provider, today announced its financial results for the first quarter ended March 31, 2022.
Financial highlights for the quarter ended March 31, 2022 included:
- Net sales for the first quarter reached a record $3,577,778, an increase of more than 144% over the $1,461,428 reported for the comparable period in 2021. The increase in sales was a continuation of strong global demand for satellite communications and connectivity products and services, as well as increases in equipment rental fees and recurring revenue airtime services.
- Continued strong demand in key North American and European markets resulted in increased sales for the Global Telesat Communications Ltd unit. (“GTC”) of the company in the United Kingdom by more than 156% and of the United States unit of the company, Orbital Satcom Corp. (“CSO”), by more than 119%.
- During the quarter, the company concluded sales transactions with customers located in 108 countries, including the 27 countries of the EU, the 50 states of the United States and many countries in Africa, Asia, the Middle East and South America. The company achieved several performance milestones including triple-digit growth in several key markets, unprecedented average transaction values and record 750% growth in non-e-commerce direct sales. Continued strong growth in global e-commerce sales has placed the company in the top 1% market seller on Amazon globally based on 2021 sales data (Source: Marketplace Pulse). The company’s revenue from Amazon sales increased 85% in the quarter compared to the same period in 2021.
- Gross profit margins for the quarter ended March 31, 2022 were approximately 22% compared to approximately 29% reported for the same period ended March 31, 2020. The lower margins resulted from a significant increase in the cost of materials, shipping and transportation. due to supply chain disruption and an increase in the value of orders from international resellers.
- Net loss for the three months ended March 31, 2022 was $850,083 compared to a net loss of $803,142 reported for the three months ended March 31, 2021. The increase in loss is primarily due to the increased public company overhead and personnel costs following the company’s May 2021 Nasdaq listing, professional fees, including legal and accounting services, and increased advertising and promotion expenses .
- The company ended the quarter with about $21.9 million in cash, or about $2.36 per share. The increase in cash resulted from proceeds from the $7.2 million private equity offering of common stock completed in January 2022.
“Record first quarter 2022 operating results reflect continued strong global demand for satellite connectivity and tracking solutions, a trend that began early last year and remains well above expected levels. In the first quarter, satcom e-business operations benefited from several factors, including increased inventory investment, a general easing of COVID restrictions in multiple geographies as well as unprecedented demand for critical communications products in response to the situation unfolding in Ukraine,” said Charles M. Fernandez, Executive Chairman and CEO of NextPlat.
David Phipps, President of NextPlat and Chief Executive Officer of Global Operations, added, “We are pleased with the continued strong performance of revenue across our e-commerce platforms in the first quarter, given the significant ongoing issues of supply chain, particularly in international markets where demand for connectivity products and services has rapidly increased in response to disruptions in Eastern Europe. In addition to our impressive revenue growth, throughout the quarter our e-commerce business achieved several milestones of record monthly performance, further demonstrating the inherent value of our platforms through their broad reach and diversification.”
Operational and organizational highlights for the quarter ended March 31, 2022 and recent developments include:
- The company raised approximately $7.2 million through a private placement of common stock in January 2022. Approximately 73% of funds raised were raised from existing shareholders, including senior executives and NextPlat’s board of directors, including the company’s CEO, Mr. Charles Fernandez, who personally invested approximately 30% of the $7.2 million raised.
- In January, the company officially changed its name to NextPlat Corp, reflecting its new business strategy and vision embracing the future of e-commerce and its commitment to serve as a growth platform for businesses of all kinds. NextPlat intends to develop a next generation platform for digital assets designed for Web3 called NextPlat Digital. NextPlat Digital’s goal will be to facilitate the creation/minting, buying and selling of a wide range of Non-Fungible Token (“NFT”) products, including, but not limited to, art , music, collectibles, digital real estate, video games and gaming items. The Company expects NextPlat Digital to launch by Q4 2022.
- NextPlat has named Rodney Barreto, an accomplished and recognized executive and business leader with more than 35 years of experience in public and corporate affairs, real estate investment, development and hospitality throughout South America. Florida to its board of directors. Mr. Barreto was a significant new investor in the Company’s recent $7.2 million private placement.
- The company has expanded its catalog of satellite communications products through various global reseller, distribution and marketing agreements with major satellite network operators and equipment manufacturers.
- The company has completed its storefront and first product listings on Alibaba.com, which is part of the Alibaba Group (NYSE: BABA; HKEX: 9988), as part of its Gold Supplier agreement announced last year. This storefront gives the company access to Alibaba’s 26 million global active business partners, serving customers in more than 190 countries in 19 languages, who request more than 20,000 RFQs daily (“Request for Quotation “).
- In April, the company began using its new global enterprise resource planning (“ERP”) system designed to unify its business operations, including centralized inventory management of its e-commerce storefronts and marketplaces. The new ERP system will support the rapid deployment of additional marketplaces and product listings, enabling the company to support a growing selection of satellite communications equipment as well as all other types of physical and digital.
Mr. Fernandez concluded, “NextPlat continues to demonstrate its ability to capitalize on e-commerce opportunities for satellite communications products and services. Backed by a healthy debt-free balance sheet and over $21 million in cash, we are now well on our way to building on this strong foundation as we seek to expand our platform to include all forms of physical assets and platforms and launch NextPlat Digital later this year.”
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, 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 communication 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 cryptocurrencies and its ability to grow and expand as it goes. expected, which could prevent the Company from achieving some or all of its objectives or the actual results, performance (financial or operational) previously stated 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. to 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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THE SOURCE: NextPlat Corp
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https://www.accesswire.com/701614/NextPlat-Announces-144-Increase-in-First-Quarter-2022-Revenue-as-E-Commerce-Demand-Surges-Cash-Balances-Increase-to-Approximately- 22 million or 236 per share