Yahoo Finance XWELL Inc (XWEL) Q4 2023 Earnings Call Transcript Highlights: Strategic Expansions and Cost ...
Release Date: April 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the performance of your spa operations and the impact of new technologies on revenue growth? A: Scott Milford, CEO & President: Our spa operations have seen significant improvements, particularly with a 39% revenue growth in Express and a 40% increase in international locations. The introduction of new services and technologies, such as autonomous massage chairs and manicure stations, has not only enhanced operational efficiency but also contributed to this growth.
Q: What are the results from the acquisition of Naples Wax, and what are the future plans for this brand? A: Scott Milford, CEO & President: Naples Wax has performed well, showing a 3% revenue growth year over year. We plan to expand this brand across the Southeast with about 10 locations by early 2025, integrating additional aesthetic services to drive new revenue.
Q: Could you elaborate on the expansion of XpresSpa outside of airports? A: Scott Milford, CEO & President: We are excited about taking XpresSpa beyond airports, starting with a new labor-light model in New York City's Penn Station. This location will offer Quick Serve products and services tailored to commuters, which we believe will test the concept's potential in non-airport venues effectively.
Q: How is the XpresTest business contributing to public health, and what are the financial implications of its expansion? A: Scott Milford, CEO & President: XpresTest plays a crucial role in bio-surveillance, helping to monitor and potentially reduce pathogen transmission. The program now includes multi-pathogen testing and has expanded to more locations, with funding increased to about $36.7 million. This expansion not only supports public health but also positions us for potential future growth.
Q: What steps has XWELL taken towards profitability, and what are the results of these initiatives? A: Scott Milford, CEO & President: We've focused on optimizing our cost structure, which included closing less profitable spa locations and reducing operating costs by $11 million in 2023. These efforts are expected to save an additional $5 million in 2024, significantly contributing to our path back to profitability.
Q: Can you provide a summary of the financial results for fiscal year 2023? A: Suzanne Scrabis, CFO: In 2023, our total revenue was approximately $30.1 million, with a notable decrease in total cost of sales and administrative expenses due to our cost-cutting initiatives. However, we reported an operating loss of about $28.2 million, which is an improvement from the previous year's loss of $31.2 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
