Revolutionizing Digital Eyecare with Cutting-Edge Technology and Rapid Growth - KITS Eyecare
Channel: Business Television
Date: 2023-12-08

KITS Eyecare Shatters Expectations with Stellar Financial Performance and Operational Efficiency

KITS Eyecare Ltd. (TSX: KITS), a leading vertically integrated eyecare provider, has once again demonstrated its prowess in the digital eyecare industry with its impressive third-quarter results for 2023. The company, known for making eyecare easy and accessible, has concluded another record quarter, showcasing significant growth and operational efficiency.

Third Quarter 2023 Financial & Operational Highlights:
Revenue Surge: KITS reported a remarkable 32% increase in revenue, reaching a record $31.2 million, up from $23.6 million in the previous year. This growth is attributed to strong repeat customer revenue in both contact lens and eyeglasses sectors, coupled with a higher average order value and an increase in repeat eyeglass customers.

Gross Profit and Margin Growth: The company's gross profit soared by 48% to $10.7 million, compared to $7.2 million in the prior year. The gross margin also saw a significant rise of 370 basis points, reaching 34.3% compared to 30.6% in the previous year. This increase was primarily due to a strategic reduction in promotions, focusing on higher-margin orders and leveraging improved margins from returning customers.

Net Income and EBITDA Improvement: Net income improved to$0.5 million, or $0.02 per share (basic), a notable shift from the previous year's net loss. Adjusted EBITDA also showed a positive trend, improving by $1.4 million to $0.6 million, compared to a negative $0.8 million in the prior year. These improvements reflect KITS' ability to increase revenue and gross profit while maintaining a disciplined approach to expenses.

Expense Management: KITS successfully reduced marketing, fulfillment, and general and administrative expenses as a percentage of revenue, demonstrating a tight discipline around expense management and operational efficiency.

Year-to-Date 2023 Financial & Operational Highlights:
Continued Revenue Growth: For the nine months ended September 30, 2023, revenue increased by 36% to $88.8 million, compared to $65.4 million in the same period last year.

Sustained Margin Improvement: The gross margin increased by 230 basis points to 33.4%, reflecting KITS' ongoing focus on high-margin orders and customer retention.

Roger Hardy, co-founder and CEO of KITS, expressed gratitude to the KITS team for their execution of the company's strategy. He highlighted the 32% year-over-year revenue growth, expansion of gross margin, disciplined expense management, and the achievement of the fourth consecutive quarter of positive adjusted EBITDA. Hardy emphasized the company's strong momentum heading into the holiday season, benefiting from network effects and operating in a non-discretionary category.
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With $19.3 million in cash and cash equivalents as of September 30, 2023, KITS is well-positioned for continued growth and innovation. The company's focus on customer satisfaction, technological advancements, and operational efficiency makes it a standout in the rapidly evolving digital eyecare landscape. As the industry continues its shift online, KITS is not just keeping pace but setting new standards for success and customer care in the digital eyecare domain.

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