Business
Hour Loop Reports Full Year 2022 Results
Demonstrates Strong Revenue Growth Despite Challenging e-Commerce Environment Provides Full Year 2023 Revenue and Net Income Guidance REDMOND, Wash., March
About this update from Hour Loop, Inc.
[{"type":"text","content":"Demonstrates Strong Revenue Growth Despite Challenging e-Commerce Environment Provides Full Year 2023 Revenue and Net Income Guidance REDMOND, Wash., March 31, 2023 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the year ended December 31, 2022. Financial Highlights for 2022: Net revenues increased 52.8% to $95.9 million in 2022, compared to $62.8 million in 2021.Net loss totaled $1.5 million, compared to net income of $4.8 million in 2021.Cash used in operating activities in 2022 was $11.6 million, compared to cash provided by operating activities of $7.8 million in 2021. Management Commentary “We are pleased to report our full year 2022 results, in which we delivered great performance in terms of revenue growth,” said Sam Lai, CEO of Hour Loop. “The revenue growth rate for the fourth quarter and full year 2022 were 63.1% and 52.8%, respectively, compared with the year-ago period.” “However, our gross margin was negatively impacted by the challenging e-commerce environment and intense competition caused by high inventory levels across the industry. Our operating expenses also increased because of increased platform, advertising, and storage fees paid to Amazon, and a significant increase in our labor force. Despite disappointing margins, we believe we’ve built a solid foundation in 2022 to generate strong growth for the years to come. We also plan to make improvements on profitability.” Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products during the first two months of 2023. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders. Full Year 2022 Financial Results Net revenues in 2022 were $95.9 million compared to $62.8 million in 2021. The increase was primarily due to continued growth and maturity in our operating model, despite the overall e-commerce traffic slowdown and intense competition. Gross profit percentage decreased 4.3% to 51.1%, compared to 55.4% of total revenues in the comparable period a year ago. The decrease was a function of heightened inflationary environment causing higher cost of goods sold, increased FBA fees, and intense competition. Operating expenses increased 73.7% to $50.9 million c...