Hour Loop Reports Full Year 2024 Results

Core Insights - Hour Loop, Inc. reported a revenue growth of 4.6% for the year 2024, reaching $138.3 million compared to $132.1 million in 2023, despite facing challenges in the overall economy and logistics [2][3][9] - The company achieved a net income of $0.66 million in 2024, a significant improvement from a net loss of $2.43 million in 2023, attributed to better cost management and operational efficiencies [5][9][17] - For 2025, Hour Loop anticipates net revenue between $145 million and $160 million, indicating a year-over-year growth of approximately 5% to 15% [7] Financial Performance - Gross profit margin increased to 52.1% in 2024 from 50.3% in 2023, driven by improved product costs and inventory management [4] - Operating expenses as a percentage of net revenues decreased to 51.6% in 2024 from 52.6% in 2023, reflecting better management of storage fees [4] - Cash provided by operating activities was $0.3 million in 2024, a recovery from cash used in operating activities of $2.1 million in 2023 [9] Operational Highlights - The company maintained inventories at $14.6 million as of December 31, 2024, slightly up from $14.3 million in 2023 [6] - Hour Loop operates primarily as a third-party seller on Amazon and has expanded to other marketplaces like Walmart, eBay, and Etsy, managing over 100,000 SKUs across various product categories [10] - The company plans to expand its operations by increasing the number of business managers, vendors, and SKUs in the coming years [10]