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Jun 30, 2023
XpresSpa Q2 2023 Earnings Report
XWELL reported second quarter results, showing a decrease in revenue and operating expenses.
Key Takeaways
XWELL reported a decrease in revenue due to the closure of XpresCheck locations, offset by cost-saving initiatives that led to lower operating expenses. The company is focused on improving operating performance and investing in growth.
Total revenue was $8.2 million, compared to $13.6 million in the prior year second quarter.
Cost of sales decreased to approximately $7.0 million compared to $12.4 million in the second quarter of 2022.
Operating expenses decreased to approximately $5.9 million compared to $9.0 million for the second quarter of 2022.
Net loss attributable to common shareholders was approximately $5.7 million compared to $7.9 million in the second quarter of 2022.
XpresSpa
XpresSpa
Forward Guidance
XWELL is focused on transforming into a leading wellness services provider, expanding its spa brand, and developing businesses outside the airport.
Positive Outlook
- Cost-savings initiatives are benefiting the company.
- Plans to transform XWELL into a leading wellness services provider.
- Expansion of spa brand.
- Acquisition and development of businesses outside the airport.
- Opening new XpresSpa location in Abu Dhabi during the fourth quarter of 2023.
Challenges Ahead
- Decline in revenue was primarily related to the relaxation of COVID-19 testing requirements.
- Closure of XpresCheck locations.
- Loss from operations for the second quarter of 2023 was approximately $4.7 million.
- Net loss attributable to common shareholders was approximately $5.7 million.
- Continued focus on cost-saving initiatives may impact growth investments.