The following is a summary of the Upexi, Inc. (UPXI) Q2 2024 Earnings Call Transcript:
Financial Performance:
Upexi reported Q2 2024 revenue of $21.8 million, a decrease from $26.7 million year-over-year and $27.3 million from Q1 2024.
The cost of revenue was $13.6 million, showing a decrease from $16.7 million year-over-year and $18.6 million from Q1 2024.
The reported net loss from continued operations was $2.4 million compared to net income of $2.7 million for the same period last year.
Despite a decrease in revenue, the company's gross margin increased to 38% due to a reduction in the risk of purchasing excess inventory.
Brand product sales saw a 16.7% increase to $7.7 million, or 35.1% of total revenues, bolstered by health and beauty sectors.
Business Progress:
The company is strategically focusing more on their high margin brand product sales, with brands like VitaMedica and Health and Wellness showing positive investments.
Subscription revenue within the brand segment saw month-over-month growth of approximately 5%.
Upexi plans to complete the consolidation of their manufacturing facilities by the end of April, anticipating quarterly cost savings of $450,000 to $550,000.
Sales and marketing expenses were down 18%, with the company planning to decrease advertising expenses as a percentage of sales over time.
The company also anticipates further growth in their health and wellness sector from an acne study.
More details: Upexi IR
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