KITS Eyecare Reports Record First Quarter 2024 Results
Vancouver, BC – KITS Eyecare Ltd., a premier integrated eyecare provider, is thrilled to announce record-breaking financial and operational results for the first quarter ended March 31, 2024. Demonstrating remarkable growth, the company’s revenue surged by 26% year-over-year to an unprecedented $34.8 million, marking the sixth consecutive quarter of positive adjusted EBITDA.
First Quarter 2024 Highlights:
- Revenue reached a new high at $34.8 million, a 26% increase from the previous year.
- Gross margin stood at $11.2 million or 32.1% of revenues, showing robust profitability.
- Marketing, fulfillment, and general administrative expenses saw significant optimizations as a percentage of revenue.
- EBITDA and Adjusted EBITDA both recorded impressive gains, demonstrating effective cost management and operational efficiency.
- The successful delivery of over 75,000 pairs of glasses, alongside the milestone of over 1.35 million glasses tried on using the KITS Virtual Try-On tool.
Management’s Perspective
Roger Hardy, Co-Founder and CEO of KITS, highlighted the company’s impressive start to the year. “Our record quarter, with an annual revenue run-rate nearing $140 million, underlines our strong market position and customer appeal across our product categories and geographies,” he stated. With over 1.35 million glasses tried on through the Virtual Try-On Tool, the company is seeing increased customer engagement and interest in their offerings. Hardy also emphasized the company’s disciplined cost management approach in light of broader economic uncertainties, which continues to attract a growing customer base. “Our momentum is accelerating, and we are confident in our strategic growth and sustained financial health,” he added.
Comprehensive Financial Results
The quarter witnessed a 26% uplift in revenue, driven by strong repeat business, higher average order values, and an increase in repeat eyeglass customers. Gross profit rose by 22%, and the company achieved a net income turnaround, posting $0.1 million compared to a net loss in the previous year. The improved bottom line is attributed to increased revenue, gross profit, and a foreign exchange gain.
As of March 31, 2024, KITS maintained a healthy cash and cash equivalents balance of $18.4 million, positioning the company well for sustained growth and operational enhancements.
Looking Ahead to Q2 2024
For the upcoming second quarter, KITS anticipates revenue to range between $36 million and $38 million, with Adjusted EBITDA expected to represent 3% to 5% of revenue. This outlook reflects the company’s ongoing commitment to growth and operational excellence.
Conference Call and Webcast
KITS management will be hosting a conference call to discuss these results and provide further insights into the company’s progress and outlook. The call will feature a live presentation available for replay on the company’s website, ensuring stakeholders and interested parties can engage fully with KITS’ strategic direction and performance.
About KITS
KITS is revolutionizing the eyecare industry with its vertically integrated digital platform, offering a vast selection of contact lenses and eyeglasses. The company is dedicated to providing exceptional value, a convenient online shopping experience, and a commitment to customer satisfaction. KITS continues to innovate, leveraging cutting-edge technologies to enhance customer experience with tools like online fittings and virtual try-on for glasses. For more information, visit www.kits.com.
Non-IFRS Financial Measures and Forward-Looking Statements
This publication includes references to non-IFRS measures and forward-looking statements regarding KITS’ future performance. Such statements are based on current expectations, entail various risks and uncertainties, and are not guarantees of future performance. KITS is committed to transparency and encourages readers to review their detailed filings for a fuller understanding of their operational and financial status.
