MySize Inc (NASDAQ:MYSZ) has reported a 78% increase in consolidated revenue to $720,000 for the three months ended March 31, 2023, primarily driven by the revenue generated following the acquisition of Orgad.
The omnichannel e-commerce platform and provider of AI-driven measurement solutions noted that Software-as-a-Service (SaaS) revenues from MySizeID and Naiz Fit also experienced significant growth, increasing by 223% to $142,000.
However, the company faced challenges during the first quarter, including a warehouse fire that resulted in an inventory write-down of $643,000. As a result, MySize reported an operating loss of $2.5 million and a net loss of $2.65 million for the quarter.
Despite these setbacks, MySize CEO and Founder, Ronen Luzon, said he remains optimistic about the company's future, highlighting positive indications from both business segments and reiterated 2023 revenue guidance of between $9 million to $10 million.
Luzon also emphasized the company's focus on improving operating efficiencies by reducing redundancies and lowering costs. In line with this, the company initiated a transfer of several functions from Naiz Fit in Spain to Israel.
The company's AI-driven sizing solutions, MySizeID and Naiz Fit, were adopted by several major brands during the first quarter, including Diesel, Canali, Harper & Neyer, Rotholz, and Natura. Additionally, MySize announced plans to launch MySizeID for pets, tapping into the growing dog apparel market estimated to reach $7 billion by 2028.
MySize's cash balance at the end of the first quarter was $2.6 million, and the company remains focused on leveraging its AI-driven measurement technology and expanding its reach in both the eCommerce and physical retail sectors through innovations like the FirstLook Smart Mirror.
Contact the author at jon.hopkins@proactiveinvestors.com