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XpresSpa Group(XWEL) - 2024 Q3 - Earnings Call Transcript
XWELXpresSpa Group(XWEL)2024-11-15 00:45
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Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was approximately 8.4million,anincreasefrom8.4 million, an increase from 7.5 million in the prior year period [22] - Operating loss for Q3 2024 was 4.8million,improvedfromanoperatinglossof4.8 million, improved from an operating loss of 12.1 million in the prior year [24] - Net loss attributable to common shareholders was 4.8millioncomparedto4.8 million compared to 11.5 million in the prior year [24] - Total operating expenses were approximately 6.8million,downfromapproximately6.8 million, down from approximately 13.2 million in Q3 2023 [24] - Salaries and benefits were approximately 1.9millioninQ32024,comparedto1.9 million in Q3 2024, compared to 1.2 million in the same period in 2023, but adjusted for a non-recurring credit, this represents a 4% decrease year-over-year [23] Business Line Data and Key Metrics Changes - Revenue from XpresSpa locations and Treat locations was approximately 4.9million[22]−RevenuefromXpresTest,includingbiosurveillancepartnershipsandHyperPointebusiness,wasapproximately4.9 million [22] - Revenue from XpresTest, including biosurveillance partnerships and HyperPointe business, was approximately 3.1 million [22] - Revenue from Naples Wax Center, acquired near the end of Q3 2023, was approximately 0.4million[22]MarketDataandKeyMetricsChanges−FoottrafficandcustomertractionatthenewlyopenedXpresSpaatPhiladelphiaInternationalAirporthavebeensolid,indicatingpositivemarketreception[13]−ThecompanyplanstoopenitsPennStationXpresSpanextyear,targetingcommutersandlocalresidents[14]CompanyStrategyandDevelopmentDirection−Thecompanyisprioritizingitsout−of−airportbrandstrategy,planningtoexpandintoseveralattractivemarketsinFlorida,withexpectationstooperateupto10XWELLpropertiesbymid−2025[11]−AfocusonaligningadditionalXWELLpropertieswithexistingin−airportmarketstoenhancecompetitivepositioning[12]−Commitmenttodrivinghighersalesandmarginsthroughpartnerships,suchaswithPriorityPass,whichhasincreasedfoottrafficandrevenue[15]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinthecompany′scontinuedmomentumandgrowthpotential,emphasizingacommitmenttocostreductionandreturningtoprofitability[10][20]−Thecompanyhasreducedtotaloperatingexpensesbyapproximately350.4 million [22] Market Data and Key Metrics Changes - Foot traffic and customer traction at the newly opened XpresSpa at Philadelphia International Airport have been solid, indicating positive market reception [13] - The company plans to open its Penn Station XpresSpa next year, targeting commuters and local residents [14] Company Strategy and Development Direction - The company is prioritizing its out-of-airport brand strategy, planning to expand into several attractive markets in Florida, with expectations to operate up to 10 XWELL properties by mid-2025 [11] - A focus on aligning additional XWELL properties with existing in-airport markets to enhance competitive positioning [12] - Commitment to driving higher sales and margins through partnerships, such as with Priority Pass, which has increased foot traffic and revenue [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's continued momentum and growth potential, emphasizing a commitment to cost reduction and returning to profitability [10][20] - The company has reduced total operating expenses by approximately 35% compared to the same nine-month period in 2023 [19] - Management is focused on sustainable top-line growth and improving efficiencies across all brands [18] Other Important Information - The company reported solid liquidity with cash and cash equivalents totaling 4.4 million and $11.7 million in marketable securities [25] - There is no long-term debt, indicating a strong balance sheet position [25] Q&A Session Summary - The Q&A session details were not provided in the content, thus no specific questions and answers can be summarized.