Business
NEXGEL Reports First Quarter 2023 Financial Results
2023 first quarter revenue increased 56.6% year-over-year to $620 thousand Approximately $5.8 million in cash and securities at March 31, 2023 Provides second
About this update from Nexgel, Inc
[{"type":"text","content":"2023 first quarter revenue increased 56.6% year-over-year to $620 thousand Approximately $5.8 million in cash and securities at March 31, 2023 Provides second quarter 2023 revenue guidance of $1.0 million, an increase of 78.2% year-over-year LANGHORNE, Pa., May 15, 2023 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a leading provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced financial results for the first quarter ended March 31, 2023. Adam Levy, NEXGEL’s Chief Executive Officer, commented, “For the first quarter we delivered 56.6% revenue growth year-over-year, driven by increased sales in contract manufacturing and branded consumer products. We also started to see contribution in March from our new joint venture with CG Labs. During the quarter, we launched several new products and invested strategically in sales and marketing to support those launches. We are already starting to see the financial returns from these investments in the second quarter, as well as from our new JV.” Mr. Levy continued, “Based on the dynamic changes to our business, which include the March 1 joint venture, I feel it’s important to provide a one-time exception to our policy of not providing guidance. Based on these developments and our progress to date, we are projecting $1.0 million in revenue for the second quarter of 2023, an increase of 78.2% year-over-year. Complementing this, we had approximately $5.8 million in cash and cash equivalents at quarter-end, which gives us sufficient runway to operate and the ability to be opportunistic about further potential investments to accelerate our growth.” First Quarter 2023 Operational Highlights Acquired a 50% interest in a newly formed joint venture (“JV”), CG Converting and Packaging, LLC, with C.G. Laboratories Inc. (“CG Labs”) for its converting and packaging business.Executed a supply agreement with a large new customer relating to a new consumer product.Launched advertising and marketing initiative, which has increased branded product sales. First Quarter 2023 Financial Highlights For the first quarter of 2023, revenue totaled $620 thousand and increased by $224 thousand, or 56.6%, compared to $396 thousand for the same period the year prior. The increase in overall revenues was primarily due to s...