NEXGEL (NXGL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $1.44 million, up 23.4% year-over-year, driven by branded consumer products and the Silly George acquisition, which contributed over $380,000 in July Shopify sales.

• Gross profit margin improved to 28.5% from 15% in Q2 2023, reflecting higher-margin product sales.

• Net loss for Q2 2024 was $979,000, compared to $642,000 in Q2 2023; net loss per share was $0.14 vs. $0.12.

• Recent acquisitions of Kenkoderm and Silly George expanded the product portfolio into skincare and cosmetics.

• Facility expansion in Texas completed, doubling capacity and supporting contract manufacturing growth.

Financial highlights

• Q2 2024 revenue reached $1.44 million, up $273,000 or 23.4% year-over-year.

• Gross profit was $410,000, up from $175,000 in Q2 2023; gross margin improved to 28.5% from 15% year-over-year and 21.9% sequentially.

• SG&A expenses rose 57.4% to $1.39 million, mainly due to increased marketing for Kenkoderm and Silly George.

• Cash balance as of June 30, 2024, was $1.1 million; subsequent $1.11 million financing completed for working capital and inventory.

• Six-month revenue rose 51.5% year-over-year to $2.71 million, with gross profit up to $687,000 from $117,000.

Outlook and guidance

• Q3 2024 revenue guidance is $2.2 million (up 83% year-over-year); Q4 guidance is $2.6 million (up over 140% year-over-year).

• Guidance excludes any revenue from the AbbVie partnership, with revenues expected to start in Q1 2025 and ramp through Q3.

• Anticipates achieving positive cash flow from operations at higher expected revenue levels in Q3 and Q4.

• Management expects continued near-term losses but believes recent capital raises provide sufficient liquidity into 2025.

• Focus remains on expanding branded consumer products, contract manufacturing, and exploring new product channels in cosmetics and medical devices.