Hour Loop(HOUR) - 2024 Q4 - Annual Results

Hour Loop Full Year 2024 Results Financial and Operational Highlights The company achieved revenue growth to $138.3 million and returned to profitability in 2024 through improved operational efficiencies FY 2024 Key Financial Metrics | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $138.3 million | $132.1 million | +4.6% | | Net Income (Loss) | $0.66 million | ($2.43 million) | Turnaround to Profit | | Cash from Operations | $0.3 million | ($2.1 million) | Turnaround to Positive | - Management attributes the positive results to enhanced inventory quality, operational efficiency improvements, and disciplined expense management[2] - Despite economic and logistical challenges, the company achieved revenue growth and built a solid foundation for continued performance[2] Full Year 2024 Financial Results Analysis Revenue grew to $138.3 million and gross margin improved to 52.1%, driving a turnaround to a net income of $0.66 million - Revenue growth was attributed to the continued maturity of the company's personnel and operating model[3] Profitability Margin Improvement (YoY) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Gross Margin | 52.1% | 50.3% | | Operating Expense % of Revenue | 51.6% | 52.6% | Net Income and EPS (YoY) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Income (Loss) | $0.66 million | ($2.43 million) | | Diluted EPS | $0.02 | ($0.07) | Financial Condition and Liquidity Cash decreased to $2.1 million due to loan repayments, while inventory levels remained stable at $14.6 million - Cash and cash equivalents stood at $2.1 million as of December 31, 2024, down from $2.5 million, primarily due to loan repayment[7] - Inventories were $14.6 million at year-end 2024, remaining consistent with the $14.3 million reported at year-end 2023[8] Full Year 2025 Financial Outlook The company projects 2025 net revenue of $145-$160 million and net income between $0.5 million and $2 million Full Year 2025 Guidance | Metric | Guidance Range | Implied YoY Growth | | :--- | :--- | :--- | | Net Revenue | $145M - $160M | 5% - 15% | | Net Income | $0.5M - $2M | N/A | Consolidated Financial Statements Audited statements show improved stockholders' equity, a return to operating income, and positive operating cash flow for 2024 Consolidated Balance Sheets Total assets grew slightly to $19.97 million while liabilities decreased, improving total stockholders' equity to $5.16 million Balance Sheet Summary (As of Dec 31) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total Current Assets | $18,738,654 | $18,013,331 | | Total Assets | $19,966,964 | $19,550,280 | | Total Current Liabilities | $14,807,222 | $10,924,602 | | Total Liabilities | $14,807,222 | $15,097,383 | | Total Stockholders' Equity | $5,159,742 | $4,452,897 | Consolidated Statements of Operations The company reported net revenues of $138.3 million and successfully swung from an operating loss to an income of $730,940 Statement of Operations Summary (Year Ended Dec 31) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Revenues, net | $138,252,861 | $132,124,202 | | Gross Profit | $72,010,708 | $66,517,255 | | Income (loss) from operations | $730,940 | ($3,003,423) | | Net income (loss) | $657,447 | ($2,429,694) | | Basic and diluted EPS | $0.02 | ($0.07) | Consolidated Statements of Cash Flows The company generated positive operating cash flow of $313,140, a significant recovery driven by the return to net income Cash Flow Summary (Year Ended Dec 31) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $313,140 | ($2,063,375) | | Net cash used in investing activities | ($35,996) | ($14,823) | | Net cash used in financing activities | ($671,000) | $0 | | Net change in cash | ($364,572) | ($2,078,436) | | Cash at end of year | $2,119,581 | $2,484,153 |