MySize Inc, the company developing AI-driven measurement solutions for retailers, reported surging first-quarter revenue in results released Friday, thanks in large part to a February acquisition.
For the three months ended March 31, the company posted revenue of $404,000, a 1,400% increase year-over-year from $27,000. Gross profit was $153,000, a 467% increase, while net loss was $2.1 million, $0.9 per share, compared to $1.4 million, $0.16 per share, in the same period of 2021.
The company’s cash balance as of March 31 was $7.8 million.
READ: MySize says it is confident about the future as it grows recurring revenue
The biggest reason for the revenue bump was MySize’s February 7 acquisition of Orgad, an omnichannel e-commerce platform operating globally, according to CEO Ronen Luzon.
“While it's early, we are extremely pleased with our acquisition of Orgad and the progress we have made since mid-February,” Luzon said in a statement. “We see opportunity to scale its business by being able to provide additional cash to bolster inventory and fuel more turnover in order to accelerate revenue growth. We believe Orgad has the potential to increase its inventory turnover by multiples over what it did in 2021."
Meanwhile, revenue from the company’s MySizeID platform increased 63% to $44,000.
"MySizeID has continued to gain traction and now reaches 1,000+ retail customers with additional reach throughout the world, including the US and Turkey,” Luzon said. “Additional growth and synergies are coming from our new product initiative FirstLook Smart Mirror and the collaboration between our Orgad and MySizeID teams working together on cross-sell opportunities whereby MySizeID can leverage some existing relationships."
Looking forward, Luzon said MySize is reiterating its guidance of at least $5 million in revenue for 2022 as a whole.
MySize has developed a unique measurement technology based on sophisticated algorithms and cutting-edge technology with broad applications, including the apparel, e-commerce, DIY, shipping, and parcel delivery industries.
This proprietary measurement technology is driven by several algorithms that are able to calculate and record measurements in a variety of novel ways.
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