Hour Loop(HOUR) - 2023 Q4 - Annual Results

Revenue and Growth - Revenue growth rate for 2023 was 37.7%, with net revenues increasing to $132.1 million from $95.9 million in 2022[2][4] - Hour Loop provided 2024 revenue guidance of $145 million to $172 million, representing 10% to 30% year-over-year growth, with expected net income of $0.5 million to $2 million[9] Profitability and Margins - Gross margin decreased by 0.8% to 50.3% in 2023, compared to 51.1% in 2022, due to increased market competition and aggressive clearance sales[6] - Net loss in 2023 was $2.4 million, or $0.07 per diluted share, compared to $1.5 million, or $0.04 per diluted share, in 2022[7] Operating Efficiency - Operating expenses percentage decreased by 0.5% to 52.6% in 2023, reflecting better management of shipping charges, advertising expenses, and labor costs[6] - Cash used for operating activities in 2023 was $2.1 million, a significant improvement from $11.6 million in 2022[5] Inventory Management - Inventories decreased to $14.3 million as of December 31, 2023, from $18.8 million in 2022, due to sales made throughout the year[8] Business Expansion - The company manages over 100,000 SKUs and plans to expand rapidly by increasing the number of business managers, vendors, and SKUs in upcoming years[10]