Worksport Reports 2,050% Increase in Q4 2023 YOY Revenue, Following a 2,400% YOY Q3 Revenue Advance
- 2,050% YOY revenue increase in Q4 FY2023
- 83% increase in North American revenues from Q3 to Q4 2023
- Anticipation of continued revenue growth into 2024
- Development of the COR battery system and the SOLIS solar cover
- Terravis Energy's breakthrough in the development of a Cold Climate, Air Source Residential Heat Pump
- None.
Insights
The reported 2,050% YOY revenue increase for Worksport Ltd. in Q4 FY2023 is a strong indicator of the company's growth trajectory. Such a significant jump in revenue, particularly following a 2,400% increase in the previous quarter, suggests that Worksport has effectively scaled its operations and is capturing a larger share of the market. This is further evidenced by the 83% quarter-to-quarter revenue increase in North America. The company's strategic focus on ramping up production and expanding its product line, including a second production line for 'Made in the USA' products, aligns with current consumer trends favoring domestic manufacturing and sustainability.
Investors would be interested in how sustainable this growth is and whether it can be attributed to one-time large orders or if it represents a consistent upward trend. The emphasis on automation and a product that is over 90% recyclable positions Worksport at the forefront of environmental sustainability in the automotive sector, which could attract ESG-focused investors. However, it is crucial to monitor the company's ability to maintain profitability while scaling up and investing in these initiatives.
Achieving a revenue of $1,529,975 for FY2023, up from $116,502 in FY2022, Worksport Ltd. is demonstrating substantial financial improvement. The company's focus on innovative hard tonneau covers and the forthcoming COR battery system, designed to complement the SOLIS solar light truck tonneau cover, indicates a strategic diversification into new product lines. This diversification could potentially open new revenue streams and reduce the risk of market volatility impacting a single product line.
For stakeholders, the financials suggest a strong potential for return on investment, but it is essential to consider the costs associated with the rapid expansion, such as the launch of a second production line and R&D expenses. The market will also look for signs of sustained profitability beyond the initial sales surge and how the company manages supply chain dynamics, especially with the integration of domestic and international components.
Worksport's commitment to sustainability, as evidenced by the development of a recyclable tonneau cover and the Terravis subsidiary's breakthrough in zero-emission heat pump technology, is a noteworthy differentiation in the automotive accessories market. The ability to produce heating in temperatures as low as -35ºC without supplemental heating coils could revolutionize the residential heating market and provide a competitive edge. The long-term implications for Worksport's brand reputation and market positioning are positive, especially as consumer demand for environmentally friendly products continues to rise.
However, it is important to assess whether the company's supply chain and production processes are equally sustainable and whether the costs associated with these green technologies will be offset by consumer willingness to pay a premium for sustainable products. The company's advancements in this area could also open up opportunities for government incentives and partnerships with other companies seeking to enhance their sustainability credentials.
West Seneca, New York, Feb. 06, 2024 (GLOBE NEWSWIRE) -- Worksport Ltd. (Nasdaq:WKSP) (“Worksport” or the “Company”) is pleased to report revenue (unaudited) for the fourth quarter of its fiscal year (Q4 FY2023) ended December 31, 2023 has increased by 2,
Significant revenue increase
Worksport revenues in Q4 2023 increased a remarkable 2,
“Management anticipates revenues continuing to multiply into 2024 and beyond,” said Worksport CEO Steven Rossi. “These revenues reflect the continuing strong ramp up of our production lines as we add more and more manufacturing capacity.”
Also reflecting the Company’s momentum, for the 2023 fiscal year, revenues advanced 1,
“Fiscal year 2024 is expected to be the year we’ve been planning for and anticipating for some time,” Rossi said. “Everyone at the Company is experiencing the palpable excitement of large orders for our ‘Made in the USA’, using domestic and foreign components, designation for the Company’s line of innovative hard tonneau covers, which showcases the Company's commitment to domestic manufacturing excellence.”
“Going against the grain and conventional wisdom by building a product in the U.S. that we anticipate will set a new standard for affordable and innovative light truck bed covers is a remarkable feat,” added Rossi. “It will take advantage of forthcoming progress in automation, and we believe it’s the first sustainable tonneau cover that uses very little harsh, non-recyclable materials and is over
Summary
- 2,
050% YOY FY Q4 revenue advance, follows 2,400% rise in YOY Q3 revenue 83% increase from Q3 2023 to Q4 2023 revenue demonstrates current sales momentum- Large outgoing orders and ongoing sales for light truck covers
- Second production line planned to create Made In USA products at West Seneca, N.Y. manufacturing facility
These large revenue increases were due to initial outgoing orders for the Company’s FC3 tri-fold aluminum light truck covers and on-going SC3 soft cover sales resulting from a long-term supply agreement.
During Q4 2023, the Company completed and launched a second production line in its state-of-the art 220,00 sq. ft. state-of the art manufacturing facility in West Seneca, N.Y. “The Company believes the second production line is a significant advance in sustainable automotive innovation, marking a pivotal moment in the Company's expansion strategy,” Rossi said.
COR Battery System Moves Closer to Alpha Release
During Q4 2023, the Company proudly announced that the advanced COR battery system will be designed, developed, and assembled in within North America combining domestic and international components. “By assembling the COR system in North America, Worksport has demonstrated its skill in handling the demands of such advanced circuitry, and we are very proud of that achievement.”
Subsequent to the fourth quarter’s end, Worksport announced a strategic partnership with NeuronicWorks Inc., a Toronto-based high-tech custom electronic product development and manufacturing company, to manufacture and assemble the Alpha Release of the COR battery system. The two companies will collaborate in implementing a rigorous testing and quality control process to ensure the highest quality standards for this eagerly anticipated product, the companion to the SOLIS solar light truck tonneau cover.
“We have been experiencing consistent interest for the COR battery system and the SOLIS solar cover,” Rossi said. “We are moving closer and closer to an Alpha release of the COR battery system, where the product will be placed in real-world scenarios, generating invaluable feedback, serving as a cornerstone for additional improvement. This process will bring the Company closer to its ultimate goal — the incredibly exciting official mass market release of the COR system and the SOLIS solar cover. When that does occur, it will truly be a great period, supporting Worksport’s future and demonstrating on how firmly we deliver on our promises to investors, shareholders, and employees.”
Further Advances in Terravis Subsidiary’s Zero-Emission Heat Pump Development
During Q4 2023, Worksport’s subsidiary Terravis Energy experienced a breakthrough in early test results for a working prototype of its Cold Climate, Air Source Residential Heat Pump (CCHP), which produced heating in temperatures in extreme cold as low as -35ºC (-31º F), surpassing current leading Heat Pump systems by as much as
“What a remarkable year and an incredible fourth quarter,” Rossi said. “With an
As always, Worksport will continue to update investors and shareholders on our progress with all products as soon as information is available. For further information, please visit Worksport’s official website for investors at investors.worksport.com.
About Worksport
Worksport Ltd. (Nasdaq:WKSP;), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. Worksport currently maintains an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with RAM by Stellantis, General Motors brands GMC and Chevrolet, Ford, Jeep by Stellantis, Nissan, and Toyota pickup trucks. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and NP (Non-Parasitic), Hydrogen-based technology.
Terravis Energy’s website is terravisenergy.com.
For more information, please visit investors.worksport.com.
Connect with Worksport
Please follow the Company’s social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram (collectively, the “Accounts”), the links of which are links to external third party websites, as well as sign up for the Company’s newsletters at investors.worksport.com. The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third party websites other than content published by the Company.
Worksport strives to provide frequent updates of its operations to its community of investors, clients, and customers to maintain the highest level of visibility.
LinkedIn
Facebook
X (previously Twitter)
Instagram
YouTube
Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts. The Company also uses the Accounts to announce Company news and other information. The information shared on the Accounts could be deemed to be material information. As a result, the Company encourages investors, the media, and others to review the information the Company publishes on the Accounts.
In order to comply with Regulation FD, the Company does not selectively disclose material non-public information on any Account. If there is any significant financial information, it is the policy of the Company to release it broadly to the public through a press release or SEC filing prior to publishing it on one of the Accounts.
For additional information, please contact:
Steven Obadiah, Investor Relations, Worksport Ltd.
T: 1 (888) 554 8789 E: investors@worksport.com W: www.worksport.com
Forward-Looking Statements
The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” “project,” “should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. As Worksport continues to innovate and expand the product line, it's important to clarify the compatibility of Worksport's hard-folding cover. This advanced accessory is designed to fit a variety of popular truck models, including RAM by Stellantis, GMC and Chevrolet from General Motors, Ford, as well as Jeep by Stellantis, Nissan, and Toyota pickup trucks. While we are proud of the broad compatibility of our product, we would like to emphasize that this does not imply exclusive partnerships with RAM by Stellantis, GMC, Chevrolet from General Motors, Ford, Jeep by Stellantis, Nissan, and/ or Toyota. Our commitment remains to provide high-quality, versatile truck accessories that meet the needs of a diverse range of customers and their vehicles. This statement looks forward to the possibilities that lie ahead while recognizing the current scope of our product's reach and compatibility. This statement applies to RAM by Stellantis, GMC and Chevrolet from General Motors, Ford, as well as Jeep by Stellantis, Nissan, and Toyota, and to any other model for which we have not officially announced a partnership. Terravis Energy, a fully-owned subsidiary of Worksport LTD, may reference companies such as Tesla as examples for market development, given Tesla's development of a heat pump. However, this does not imply that Terravis Energy has established a partnership with Tesla. Similar references to companies like Tesla in examples or explanations are purely informational and are used solely for the purpose of illustrating market trends or technological developments. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the SEC, including, without limitation, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company’s actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
FAQ
What was Worksport's revenue increase in Q4 FY2023?
What is the ticker symbol for Worksport Ltd.?
What new products is Worksport focusing on?
What breakthrough did Terravis Energy achieve?
