Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you clarify the revenue guidance for 2025, particularly the contribution from new products like the A L four? A: Steven Rossi, CEO: We anticipate the A L three to generate $20 million next year. The A L four, being a new product, will initially contribute less but is expected to become a significant revenue driver in subsequent periods as we refine production processes and expand capabilities.
Q: How do you plan to achieve the projected gross profit margin growth in the B2C segment? A: Steven Rossi, CEO: The growth will be driven by economies of scale. We have the infrastructure and resources in place to achieve revenue targets without significant additional expenditures. As we perfect our processes, we expect to increase profitability through efficiency gains.
Q: What is the current mix of online sales across different platforms, and how do you plan to manage it? A: Steven Rossi, CEO: Over 90% of our direct-to-consumer sales are through worksport.com. We avoid platforms like Amazon to maintain brand integrity and focus on quality. We aim to support local dealers, which will be a significant part of our strategy moving forward.
Q: Can you provide more details on the expected capital expenditure for expanding production capacity beyond 200 covers per day? A: Steven Rossi, CEO: We have already invested in infrastructure anticipating expansion. Additional equipment costs would be around $3 to $3.5 million, potentially financed by vendors at no interest, allowing us to use profits to cover these costs.
Q: What are your plans for increasing institutional coverage and ownership of the company? A: Steven Rossi, CEO: Institutional ownership typically increases with higher market caps. As we execute our strategy and grow, we expect more institutions to invest. We are building relationships with analysts based on trust and transparency to increase coverage.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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