MySize Inc told investors that a ramp-up in license agreements for its MySizeID technology has resulted in an increase in recurring revenues for the company as it gave a positive outlook.
In a shareholder letter following the filing of its results for the year to December 31, 2021, chairman and CEO Ronen Luzon said: “We strongly believe in our actions over the past year and more specifically, recently, in building a strong and valuable company for the future. We have great excitement for the value we see for us in the path ahead."
The company reported 2021 revenues of $131,000 compared to $142,000 for fiscal 2020, attributing the decrease to lower fees from one-time customer projects - which it said is not its focus as it concentrates on growing recurring revenue streams.
READ: MySize acquires Orgad, an omnichannel e-commerce platform with a presence on amazon.com
During 2020 and 2021, MySize said it entered into commercial agreements with Levi's, Nautica, Gant, Lacoste, Trutex, Penti, DeMoulin, UniformMarket, and Tricorp among others.
“We continue to increase our presence in the US with retailers and the acceleration of additional commercial agreements for our measurement technology,” Luzon continued. “We are confident about MySizeID's ability to drive revenue growth, strengthen user confidence and loyalty, reduce costs and optimize processes for our existing and prospective retail clients. We believe we are now at a commercialization inflection point, surpassing 1,000 clients.”
Luzon noted My Size’s announcement in February that transitioned the company to an omnichannel solution for retailers with the introduction of FirstLook Smart Mirror, an interactive, mirror-like touch display that provides shoppers in physical stores with an enhanced, online shopping experience and contactless checkout.
“We strongly believe this is a great solution for the in-store retailer to better capture the customer and convert him/her to a final sale,” Luzon said. “FirstLook Smart Mirror received positive reviews at NRF in New York City and we are in discussions with many retailers.”
Luzon said sizing technology is gaining traction among retailers due to the benefit of decreasing returns and increasing conversion rates.
Outside retail, he said MySize has also introduced its proprietary technology to address issues for shipping companies by developing BoxSize, an innovative mobile technology that enables customers to quickly and easily measure the size and volume of a parcel to accurately calculate shipping fees.
BoxSize also offers shipping companies a variety of precise logistical data for more efficiently managing their supply chain, providing them with an accurate way to compare the physical package with what is in the shipping manifest.
In February, the company acquired Orgad, an omnichannel e-commerce platform operating globally, including the US and Europe, to expand its business into e-commerce sales.
Orgad operates as a third-party seller on several e-commerce sites and currently manages more than 1,000 stock-keeping units (SKUs), mainly in fashion, apparel and shoes, but is capable of managing tens of thousands of SKUs.
“We have greatly expanded our business as a direct e-commerce seller connecting the consumer's digital and physical experience,” Luzon added. “We are now well-positioned as an e-commerce platform engaged in online retailing in the global market with cutting edge AI technology to enhance the e-commerce experience and efficiency. Similar to Thrasio, Perch and Hour Loop, we operate as a third-party seller on Amazon.com, eBay and others.”
My Size ended 2021 with a strong cash position of $10.7 million, which Luzon said would help the company to continue to execute on its plan and rebuild shareholder value.
Contact the author at stephen.gunnion@proactiveinvestors.com