NEXGEL Achieves Remarkable Growth in Q3 2024 Performance

NEXGEL's Impressive Q3 2024 Revenue Performance

NEXGEL, Inc. (NASDAQ: NXGL), a notable provider of ultra-gentle, high-water-content hydrogel products, recently disclosed its financial results for the third quarter of 2024, showcasing record revenue of $2.94 million. This marks an outstanding 141% increase year-over-year and a remarkable 104% growth sequentially.

Highlights from Third Quarter 2024 Financial Results

Revenue and Profit Performance

The significant growth in net revenue was fueled by a staggering 99% sequential increase in branded consumer products and a 103% boost in contract manufacturing efforts. The gross profit margin for the quarter significantly improved to 43.6%, up from 28.2% in the same quarter last year and also higher than 28.5% registered in Q2 2024.

Key Financial Metrics

The advanced financial highlights include:

• Net revenue reached $2.94 million, compared to $1.22 million in Q3 2023 and $1.44 million in Q2 2024.
• The gross profit for this quarter amounted to $1.3 million, contrasting with a gross profit of $344,000 in Q3 2023.
• Despite these successes, the company reported a net loss of $754,000, compared to a net loss of $552,000 in the same quarter of the previous year.
• Adjusted EBITDA loss, a non-GAAP financial measure, was recognized at $347,000 for Q3 2024, an improvement over the adjusted EBITDA loss of $464,000 for Q3 2023.
• As of September 30, 2024, NEXGEL maintained cash reserves of approximately $1.10 million and closed a registered direct offering shortly after the quarter for gross proceeds of $2 million.

CEO's Perspective on Quarter Growth

Adam Levy, NEXGEL’s Chief Executive Officer, commented on the quarter's performance, stating, "This quarter was pivotal for our company, with record revenue growth that showcases our expanding market presence. Our growth trajectory was primarily driven by our innovative branded consumer products and robust contract manufacturing services. Looking forward, we anticipate our strong growth trend to continue as we approach the upcoming holiday season, with our first orders of SilverSeal® products slated for Cintas.”

Understanding NEXGEL's Market Position

The growth trajectory experienced by NEXGEL is indicative of a broader trend within the healthcare and consumer products markets, which increasingly favor high-quality, effective hydrogel products. With over two decades of manufacturing experience, NEXGEL’s prominence within this niche is poised to further expand as health-conscious consumers seek solutions that are both effective and gentle on the body.

Supporting Product Lines and Innovations

NEXGEL is recognized for its extensive range of products, including notable brands like SilverSeal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George®. The strategic partnerships with major consumer healthcare companies also set a solid foundation for continued growth and market penetration.

Looking to the Future

The outlook for NEXGEL in the upcoming quarters appears optimistic, with management highlighting the ongoing demand for their products which could lead to continued revenue growth. The anticipated launch of new products and expansion of existing product lines is projected to further enhance the company's competitive edge.

Frequently Asked Questions

What drove NEXGEL's revenue growth in Q3 2024?

The revenue growth stemmed from significant increases in sales of branded consumer products and contract manufacturing, with respective growths of 99% and 103% sequentially.

What is NEXGEL's cash position as of the end of Q3 2024?

NEXGEL reported approximately $1.10 million in cash as of September 30, 2024, following a successful registered direct offering that raised additional funds.

How does NEXGEL's gross profit margin compare year-over-year?

The company saw its gross profit margin increase to 43.6% in Q3 2024, significantly ahead of 28.2% in Q3 2023.

What are the expectations for NEXGEL heading into Q4 2024?

NEXGEL anticipates continued revenue growth and further narrowing of its adjusted EBITDA loss as they leverage market demand for their product lines.

What is NEXGEL's product focus?

NEXGEL specializes in healthcare and consumer products, particularly high-water-content hydrogel products known for their gentle and effective formulation.

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