LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) reported record revenue of $1.44 million for the second quarter of 2024, representing a 23.4% year-over-year increase. The company’s growth was driven significantly by its recent acquisition of Silly George, a beauty brand specializing in eye and eyelash products.
CEO Adam Levy expressed enthusiasm about the company’s performance: “The second quarter of 2024 was a record revenue quarter for the Company, totaling $1.44 million, an increase of 23.4% year-over-year and 13.7% sequentially. Branded consumer product revenue was a key growth driver during the quarter led by our Silly George brand, which contributed revenue for approximately half the quarter.”
Second Quarter Highlights
NEXGEL recorded significant achievements in the second quarter. The acquisition of Silly George not only boosted revenue but also positioned the company for further expansion. The brand was on a revenue run-rate of $2 million at the time of acquisition, and in July alone, it generated over $380,000 in sales on Shopify.
The company also announced a partnership with STADA Arzneimittel AG to distribute Histasolv®, sold as DAOSIN® in Europe, in North America. Additionally, NEXGEL signed an agreement with Cintas Corporation to distribute their SilverSeal product.
Financial Performance
For the second quarter, gross profit increased to $410,000, a significant rise from $175,000 in the same period last year. The gross profit margin improved to 28.5% from 15.0% in Q2 2023. The increase in revenue and profit was primarily due to the growth in branded consumer products.
Operating expenses also rose to $1.39 million, mainly due to increased advertising and marketing costs associated with promoting Kenkoderm and Silly George. Despite these expenses, the company remains optimistic about future growth.
Future Guidance and Strategic Outlook
NEXGEL has issued revenue guidance for the third and fourth quarters of 2024, projecting $2.2 million and $2.6 million, respectively. These figures represent an 83% and 140% increase year-over-year. The company recently closed a registered direct offering, raising $1.11 million in gross proceeds to support working capital and inventory needs for Silly George.
Levy noted, “We continue to be excited with this acquisition and revenue opportunities from our partnerships with STADA and Cintas in the back half of this year.”
Paving the Way for Growth with Strategic Partnerships and Record Revenue
For investors, NEXGEL’s recent performance indicates strong growth potential. The acquisition of Silly George provides a solid foundation for expanding its consumer product line. Partnerships with established companies like STADA and Cintas further enhance NEXGEL’s market position and revenue streams.
The company’s focus on branded consumer products and strategic partnerships aligns well with its growth objectives. The improved gross profit margins and revenue guidance suggest that NEXGEL is on a path to sustained growth. With continued strategic investments and marketing efforts, the company is well-positioned to capitalize on emerging opportunities in the healthcare and beauty markets.
Overall, NEXGEL’s record revenue, strategic acquisitions, and partnerships signal a promising future for the company and its shareholders.
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