Kits Eyecare (KITS) Planet MicroCap Showcase: VANCOUVER 2024 summary

Business performance and growth

• Achieved eight consecutive quarters of approximately 30% organic growth, all with positive adjusted EBITDA.

• Marketing as a percentage of revenue has declined, targeting 12-14% to maintain efficiency.

• Completion of an at-scale manufacturing lab in Vancouver in Q2 2022 doubled quarterly revenue.

• Revenue grew over 30% in 2023 with inventory levels remaining flat, reflecting operational efficiency.

• Over 60% of revenue comes from repeat customers, with an active base of about 900,000 vision-corrected customers.

Strategic initiatives and infrastructure

• Built a highly automated optical lab with capacity to scale to CAD 500 million revenue and above.

• Developed proprietary technology and data infrastructure, processing 10 million unique data points daily.

• Employee stock ownership plan covers two-thirds of employees, with insider ownership at 75%.

• Focused on organic growth, with M&A considered opportunistically.

• Uses data-driven inventory management to maximize cash flow and efficiency.

Product and customer experience

• Offers a wide selection of high-quality, affordable eyeglasses and contact lenses, including designer brands.

• Launched KITS-branded premium lenses, including Invisiblock blue light blocking lenses.

• KITS-branded glasses priced between CAD 28 and CAD 38, about one-tenth the cost of brick-and-mortar stores.

• First Pair Free program attracted hundreds of thousands of new customers.

• Direct billing for insurance streamlines the purchase process, doubling average order value and increasing margins.