NEXGEL (NASDAQ:NXGL), a leading provider of hydrogel products, reported a 56.6% year-over-year increase in revenue over the first quarter of 2023.
Total revenue for the three-month period to end March 31 came in at $620,000, driven by sales growth in contract manufacturing and branded consumer products.
NEXGEL (NASDAQ:NXGL) also acquired a 50% interest in a joint venture with CG Labs and executed a supply agreement with a new customer for a consumer product.
Despite a gross loss of $57,000, which the company attributed primarily to increased manufacturing expenses, NEXGEL showed improvements in net loss, which decreased to $814,000 ($0.15) compared to a $1.8 million loss ($0.33) in the same period in 2022.
“During the quarter, we launched several new products and invested strategically in sales and marketing to support those launches,” CEO Adam Levy said in a statement accompanying the results. “We are already starting to see the financial returns from these investments in the second quarter, as well as from our new JV.”
Levy told shareholders that the company is making a “one-time exception” to its policy of not providing guidance, due to the “dynamic changes” in the business, such as the March 1 joint venture with CG Labs.
NEXGEL said it expects to hit $1 million in revenue in 2Q, driven by organic growth, new product launches, and the joint venture's contributions.
The company had approximately $5.8 million in cash and cash equivalents at quarter end.
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