MySize Inc (NASDAQ:MYSZ) reported a huge surge in quarterly revenue following its acquisition of online retailer platform Orgad.
The omnichannel ecommerce platform and provider of AI-driven measurement solutions posted $726,000 in third-quarter revenue, up 2,242% compared to the same year-ago period.
Orgad, acquired in February, comprised the bulk of that figure with $685,000 in revenue generated in the quarter.
READ: MySize increases foothold in European fashion industry, thanks to expanded SaaS products
Other items on the balance sheet fared well, with MySizeID SaaS revenue growing 32% to $41,000.
The firm’s operating loss decreased slightly to $1.97 million, while its net loss remained flat at $2.02 million for the three-month period to end September 30.
MySize CEO Ronen Luzon told investors that the company is “very excited” about its outlook following the closing of the Orgad deal, which came on the heels of its acquisition of Naiz Fit.
“By bringing Naiz Fit and Orgad into the fold, MySize has created multiple and complimentary revenue streams,” Luzon said in a statement.
“These acquisitions are highly strategic, placing MySize well on its way to becoming a leader in the fashion-tech industry and consolidator of sizing solutions. Our year-over-year revenues continued to increase, driven by Orgad, and with the holiday shopping season upon us, we expect a significant quarter-over-quarter revenue increase in the fourth quarter. We expect 2022 year-end revenues in the range of $4 to $5 million."
Two market trends driving demand
Luzon also said that environmental sustainability and the rise of so-called “hybrid shopping” will help drive demand for MySize’s products in 2023.
An estimated five billion pounds of returns end up in Iandfills, Luzon noted.
“Correct sizing reduces returns and waste. Beyond improved ROI for companies that adopt our sizing solutions, we are increasingly seeing sustainability as a driver for our business growth,” the CEO said.
Meanwhile, the fashion retail business is evolving into a hybrid experience, with digital-savvy consumers eager to use technology that enhances their shopping in physical stores, according to Luzon.
“Our FirstLook Smart Mirror, soon to be installed in stores, addresses this need by delivering personalized fit and product recommendations, a 3D ‘try-it-on’ interactive avatar experience, speed shopping, and self-checkout. While self-checkout has become a standard offering in grocery and other general retail stores, this is a new concept for apparel, and MySize is positioning to lead the space."
The company ended the quarter with $4.6 million in cash.
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