Business
Hour Loop Reports First Quarter 2022 Results
Demonstrates Strong Execution Despite Challenging Macroeconomic Environment Provides Full Year 2022 Revenue Guidance Range of $81 million to $90 million
About this update from Hour Loop, Inc.
[{"type":"text","content":"Demonstrates Strong Execution Despite Challenging Macroeconomic Environment Provides Full Year 2022 Revenue Guidance Range of $81 million to $90 million REDMOND, Wash., May 16, 2022 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the first quarter ended March 31, 2022. Financial Highlights for First Quarter 2022: Total revenues increased 32.5% to $12.4 million compared to $9.3 million in the year-ago period;Net loss totaled $0.65 million compared to net income of $0.86 million in the year-ago period;Cash used for operating activities was $7.9 million compared to $1.2 million in the year-ago period. Management Commentary “We’re pleased with our first quarter 2022 performance as we reported strong financial and operational results despite the significantly impacted consumer spending environment driven by inflationary and supply chain pressures,” said Sam Lai, CEO of Hour Loop. “Against this backdrop, we further demonstrated our ability to execute on our strategy and drive growth as planned. In fact, following our initial public offering in January, we have rapidly expanded our labor force from 75 employees to over 175 employees, and delivered first quarter 2022 revenues of $12.4 million, up 32.5% compared to the year ago period. “While we are encouraged by our progress, we are not immune to the challenging macroeconomic environment, which impacted our gross profit percentage as a result of increased operating expenses, FBA fees, and a strong competitive environment. However, despite these challenges, we are frontloading our investments for the year while projecting to show profitability and maintain double digit growth for the full year 2022. We believe our investments are necessary to grow our headcount, rapidly scale, and set a foundation for future success once these headwinds ease, and we are building on our momentum since our IPO. We look forward to continuing to execute, drive growth, and ultimately deliver increased value for our shareholders.” First Quarter 2022 Financial Results Total revenues in the first quarter of 2022 were $12.4 million compared to $9.3 million in the year-ago period. The increase was primarily due to continued growth and maturity in our operating model which was enhanced by a favorable e-commerce environm...