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Mar 31, 2021
XpresSpa Q1 2021 Earnings Report
XpresSpa Group's financial performance improved in Q1 2021 with increased revenue driven by XpresCheck and a reduced net loss.
Key Takeaways
XpresSpa Group reported a revenue of $8.5 million for Q1 2021, primarily driven by XpresCheck, and narrowed its net loss to $0.8 million. The company's strong liquidity position includes a cash balance of $103 million, and it is introducing Treat, a new travel health and wellness brand.
Total revenue was $8.5 million, including $8.2 million from XpresCheck with $3.2 million deferred from 2020.
Net loss narrowed to $0.8 million compared to a $10.7 million loss in the prior year.
Cash and cash equivalents totaled $102.6 million as of March 31, 2021.
Introduced Treat, a new travel health and wellness brand with a planned launch in phases throughout the year.
XpresSpa
XpresSpa
Forward Guidance
XpresSpa Group is focused on expanding its health and wellness offerings through XpresCheck and the new Treat brand, leveraging the convergence of travel 'needs' and 'wants' in a post-COVID-19 environment.
Positive Outlook
- Strong recovery expected in the second half of 2021 due to increased passenger flow.
- XpresCheck's gross profit margin is higher than XpresSpa's peak pre-pandemic performance.
- Treat is being designed to transform healthcare access through technology.
- New digital assets, including a website and mobile app, are planned for launch.
- Potential for accretive acquisitions and investments to broaden service offerings.
Challenges Ahead
- XpresSpa locations continue to underperform due to limited airport traffic and changes in consumer behavior.
- Ongoing discussions with airports regarding rent relief indicate financial strain.
- Start-up costs associated with XpresCheck Wellness Centers and Treat development.
- Additional legal fees related to past XpresSpa litigation matters.
- Dependence on COVID-19 testing revenues may decline as travel restrictions ease.