XpresSpa Q2 2020 Earnings Report
Key Takeaways
XpresSpa Group announced its Q2 2020 financial results, highlighting the launch of XpresCheck COVID-19 testing facilities at JFK and Newark airports. The company temporarily closed all global spa locations due to COVID-19 restrictions and is focusing on expanding its health and wellness services through XpresCheck.
All global spa locations were temporarily closed starting March 24, 2020, due to COVID-19 restrictions.
The company launched XpresCheck COVID-19 testing facilities at JFK International Airport and Newark Liberty International Airport.
XpresSpa Group is in discussions with other airports to open new testing centers or convert existing spas to XpresCheck locations.
The company raised approximately $38.4 million through registered direct equity offerings to improve its working capital position.
XpresSpa
XpresSpa
Forward Guidance
XpresSpa Group is focused on expanding the XpresCheck concept across U.S. airports and into additional health and wellness services, while also managing the risks and regulatory challenges associated with the COVID-19 testing business.
Positive Outlook
- Expansion of XpresCheck concept across U.S. airports.
- Potential to expand testing to other communicable diseases.
- Opportunity to administer vaccinations for the seasonal flu.
- Positioned to be part of the national rollout of a COVID-19 vaccination when available.
- Focus on building comprehensive health and wellness service capabilities.
Challenges Ahead
- Risks and uncertainties related to domestic and international air travel due to COVID-19.
- Regulatory challenges associated with the COVID-19 testing business.
- Uncertainty regarding the timing of possible XpresCheck openings.
- Dependence on airport traffic and passenger volume.
- Potential for actual results to vary materially from expectations.