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Sep 30, 2022
XpresSpa Q3 2022 Earnings Report
Reported results for the third quarter of 2022, showing a shift in direction as a leading authority in wellness for ‘People on the Go’ after rebranding as XWELL.
Key Takeaways
XWELL, Inc. reported a total revenue of $10.7 million for the third quarter of 2022, compared to $26.8 million in the corresponding period in 2021. The company experienced a net loss attributable to common shareholders of $7.2 million, compared to a net income of $5.6 million in the prior year third quarter. Despite the losses, the company is focused on strategic objectives, international expansion, retail strategy implementation, and cost reduction to achieve profitability in 2023.
Total revenue for Q3 2022 was $10.7 million, a decrease from $26.8 million in Q3 2021.
Net loss attributable to common shareholders was $7.2 million in Q3 2022, compared to net income of $5.6 million in Q3 2021.
The company closed five unprofitable XpresCheck locations during the third quarter and plans to close another seven in the fourth quarter.
XWELL's partnership with Ginkgo Bioworks secured a new contract worth approximately $16 million, with a potential to reach $61 million based on CDC program options.
XpresSpa
XpresSpa
Forward Guidance
The Company believes it is entering 2023 as a leaner business with a path to returned profitability and is well positioned to achieve its growth goals.
Positive Outlook
- Expanding internationally with new XpresSpa locations in Istanbul.
- Implementing a new retail strategy to drive more foot traffic into airport locations.
- Adding new technologies and trends, including tech-forward equipment.
- Offering diagnostic testing, hydration therapy, IV drips, and vitamin injections at Treat locations.
- Continuing biosurveillance partnership with Ginkgo Bioworks and the CDC.
Challenges Ahead
- Decreased testing volumes at XpresCheck locations due to relaxed testing requirements.
- Closing unprofitable XpresCheck locations to optimize performance.
- Q3 2022 total revenue decreased compared to Q3 2021.
- Q3 2022 net loss attributable to common shareholders, compared to net income in Q3 2021.
- Adjusted EBITDA was negative during the third quarter 2022, compared to positive Adjusted EBITDA in the prior year third quarter.