MySize Inc (NASDAQ:MYSZ) announced a huge increase in quarterly revenue following its acquisition of online retail platform Orgad.
The omnichannel e-commerce platform and AI-powered measurement solutions provider posted third-quarter revenue of $726,000, up 2,242% from the same period of the year. last year.
Orgad, acquired in February, accounted for the bulk of that figure with $685,000 in revenue generated in the quarter.
READ: MySize strengthens its presence in the European fashion industry, thanks to the extension of SaaS products
Other balance sheet items performed well, with MySizeID SaaS revenue growing 32% to $41,000.
The company’s operating loss narrowed slightly to $1.97 million, while its net loss held steady at $2.02 million for the three-month period ending Sept. 30.
MySize CEO Ronen Luzon told investors the company was “very excited” about its prospects following the closing of the deal with Orgad, which followed its acquisition of Naiz Fit.
“By bringing Naiz Fit and Orgad into the fold, MySize has created multiple and complementary revenue streams,” Luzon said in a statement.
“These acquisitions are highly strategic, placing MySize well on its way to becoming an industry leader in fashion technology and a sizing solutions consolidator. Our year-over-year revenue continued to grow, driven by Orgad, and with the holiday shopping season upon us, we expect a significant increase in quarter-over-quarter revenue in the fourth quarter. . We expect year-end 2022 revenue in the range of $4-5 million.”
Two market trends driving demand
Luzon also said environmental sustainability and the rise of so-called “hybrid buying” will help drive demand for MySize’s products in 2023.
An estimated five billion pounds of returns end up in landfills, Luzon noted.
“Correct sizing reduces returns and waste. Beyond improving return on investment for businesses that adopt our scaling solutions, we increasingly see sustainability as a driver of our business growth,” said the CEO.
Meanwhile, fashion retail is shifting towards a hybrid experience, with digital-savvy consumers eager to use technology that enhances their shopping in physical stores, according to Luzon.
“Our FirstLook smart mirror, soon to be installed in stores, addresses this need by offering personalized fit and product recommendations, a 3D interactive avatar experience, quick shopping and self-checkout. While self-checkout has become a standard offering in grocery stores and other general retail stores, this is a new concept for apparel, and MySize is positioning itself to lead the space.”
The company ended the quarter with $4.6 million in cash.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas