Kits Eyecare (KITS) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenue of CAD 44.8 million (up 42% year-over-year) and full-year revenue of CAD 159.3 million (up 32%).

• Delivered ninth consecutive quarter of positive adjusted EBITDA, with Q4 adjusted EBITDA at CAD 2.9 million (6.5% margin), up 237% year-over-year.

• Net income for Q4 was CAD 2.7 million, reversing a net loss in Q4 2023, with EPS of CAD 0.09.

• Customer loyalty remains strong, with 63% of Q4 revenue from existing customers and 79,000 new customers added in the quarter.

• Milestone of 1 million glasses shipped since inception.

Financial highlights

• Q4 gross profit was CAD 16.3 million, up 47% year-over-year, with gross margin expanding to 36.3%.

• Full-year adjusted EBITDA reached CAD 6.4 million, up 182% year-over-year, with margin at 4.0%.

• Cash and cash equivalents at year-end totaled CAD 19.3 million.

• Q4 marketing expense was 14.6% of revenue; fulfillment and G&A expenses were 10.6% and 5.8% of revenue, respectively.

• Cash flow from operations for 2024 was CAD 13.0 million.

Outlook and guidance

• Q1 2025 revenue projected between CAD 46 million and CAD 48 million, with adjusted EBITDA margin guidance of 4%-6%.

• Annual revenue run rate based on Q4 performance is CAD 179.3 million.

• CapEx expected to remain at 1.9% of revenue in 2025, with no increase planned.