Worksport ($WKSP) Announces Record High Revenues; 275% Q2 Growth
Worksport (NASDAQ: WKSP) reported impressive Q2 2024 financial results, with revenue reaching a record $1.92 million, representing an 860% increase from Q2 2023 and a 275% growth from Q1 2024. The company attributes this surge to its new Buffalo factory and marketing initiatives. Gross profit margins improved to 15.4%, a 111% increase from Q1. Worksport anticipates continued growth, projecting $6-8 million in revenue by year-end 2024 for its tonneau cover business alone. The company is also launching new clean-tech products, SOLIS and COR, in September. CEO Steven Rossi reaffirmed his belief that the stock is undervalued, expressing confidence in Worksport's potential to become a 9-figure, middle market company in the short to mid-term.
Worksport (NASDAQ: WKSP) ha riportato risultati finanziari impressionanti per il Q2 2024, con entrate che hanno raggiunto un record di $1,92 milioni, rappresentando un aumento dell'860% rispetto al Q2 2023 e una crescita del 275% rispetto al Q1 2024. L'azienda attribuisce questo boom alla sua nuova fabbrica di Buffalo e alle iniziative di marketing. I margini di profitto lordo sono migliorati, raggiungendo il 15,4%, con un incremento del 111% dal Q1. Worksport prevede una continua espansione, pianificando di raggiungere $6-8 milioni in entrate entro la fine del 2024 solo per il suo business di coperture tonneau. L'azienda lancerà anche nuovi prodotti di clean-tech, SOLIS e COR, a settembre. Il CEO Steven Rossi ha ribadito la sua convinzione che il titolo sia sottovalutato, esprimendo fiducia nel potenziale di Worksport di diventare un'azienda di mercato medio da 9 cifre nel breve-medio termine.
Worksport (NASDAQ: WKSP) reportó resultados financieros impresionantes para el Q2 2024, con ingresos que alcanzaron un récord de $1.92 millones, lo que representa un aumento del 860% en comparación con el Q2 2023 y un crecimiento del 275% respecto al Q1 2024. La empresa atribuye este aumento a su nueva fábrica en Buffalo y a las iniciativas de marketing. Los márgenes de beneficio bruto mejoraron al 15.4%, un incremento del 111% desde el Q1. Worksport anticipa un crecimiento continuo, proyectando $6-8 millones en ingresos para finales de 2024 solo en su negocio de cubiertas tonneau. La compañía también lanzará nuevos productos de tecnología limpia, SOLIS y COR, en septiembre. El CEO Steven Rossi reafirmó su creencia de que la acción está subvaluada, expresando confianza en el potencial de Worksport para convertirse en una empresa de mercado medio de 9 cifras en el corto a mediano plazo.
Worksport (NASDAQ: WKSP)는 2024년 2분기에 대한 인상적인 재무 결과를 발표했습니다. 수익은 기록적인 192만 달러에 도달했고, 이는 2023년 2분기에 비해 860% 증가한 것으로, 2024년 1분기에 비해서는 275% 성장한 것입니다. 회사는 이러한 급증을 새로운 버팔로 공장과 마케팅 활동 덕분이라고 설명했습니다. 총 이익률은 15.4%로 개선되어 1분기 대비 111% 증가했습니다. Worksport는 2024년 연말까지에서 600만-800만 달러의 수익을 예상하고 있으며, 이는 톤노 커버 사업만 해당됩니다. 또한, 회사는 9월에 새로운 클린 테크 제품인 SOLIS와 COR을 출시할 예정입니다. CEO 스티븐 로시는 주가가 저평가되어 있다고 믿으며, Worksport가 단기에서 중기적으로 9자리 중견 기업으로 성장할 수 있는 잠재력에 대해 자신감을 표명했습니다.
Worksport (NASDAQ: WKSP) a annoncé des résultats financiers impressionnants pour le Q2 2024, avec un chiffre d'affaires atteignant un record de 1,92 million de dollars, représentant une augmentation de 860% par rapport au Q2 2023 et une croissance de 275% par rapport au Q1 2024. L'entreprise attribue cette hausse à sa nouvelle usine de Buffalo et à ses initiatives marketing. Les marges bénéficiaires brutes se sont améliorées pour atteindre 15,4%, soit une augmentation de 111% depuis le Q1. Worksport anticipe une croissance continue, prévoyant 6 à 8 millions de dollars de chiffre d'affaires d'ici fin 2024 rien que pour son activité de couvertures tonneau. L'entreprise lancera également de nouveaux produits de technologie propre, SOLIS et COR, en septembre. Le CEO Steven Rossi a réaffirmé sa conviction que l'action est sous-évaluée, exprimant sa confiance dans le potentiel de Worksport à devenir une entreprise de marché intermédiaire à 9 chiffres à court et moyen terme.
Worksport (NASDAQ: WKSP) hat beeindruckende Finanzergebnisse für das 2. Quartal 2024 veröffentlicht, mit einem Umsatz von 1,92 Millionen Dollar, was einem 860%igen Anstieg im Vergleich zum 2. Quartal 2023 und einem 275%igen Wachstum im Vergleich zum 1. Quartal 2024 entspricht. Das Unternehmen führt diesen Anstieg auf seine neue Fabrik in Buffalo und Marketinginitiativen zurück. Die Bruttogewinnmargen verbesserten sich auf 15,4%, was einem Anstieg von 111% seit dem 1. Quartal entspricht. Worksport erwartet ein kontinuierliches Wachstum und prognostiziert 6-8 Millionen Dollar Umsatz bis Ende 2024 allein für sein Tonneau-Cover-Geschäft. Das Unternehmen wird außerdem im September neue Produkte im Bereich Clean-Tech, SOLIS und COR, auf den Markt bringen. CEO Steven Rossi bekräftigte seinen Glauben, dass die Aktie unterbewertet sei, und drückte sein Vertrauen in das Potenzial von Worksport aus, in naher bis mittlerer Zukunft ein Unternehmen mit 9 Ziffern im mittleren Markt zu werden.
- Record Q2 2024 revenue of $1.92 million, an 860% increase year-over-year
- 275% revenue growth from Q1 2024 to Q2 2024
- Gross profit margins improved to 15.4%, a 111% increase from Q1
- Monthly Recurring Revenue (MRR) on track to hit $1 million per month
- Projected revenue of $6-8 million by year-end 2024 for tonneau cover business
- Forecast of $15-20 million in revenues for FY 2025 for tonneau cover business
- Launch of new clean-tech products SOLIS and COR in September
- Net loss from operations of $7,550,214 for the six months ended June 30, 2024
- Increased operating expenses of $7,884,299 for the six months ended June 30, 2024
- Early 2024 production efficiency below baseline due to process enhancements
Insights
Worksport's Q2 2024 results show impressive growth, with revenue reaching a record
Looking ahead, Worksport maintains its
Worksport's rapid revenue growth and expansion into clean energy solutions position it well in the evolving automotive accessories market. The company's focus on hybrid and clean energy solutions for light trucks aligns with increasing consumer demand for sustainable products. The planned launch of SOLIS and COR products in September could open up significant new market opportunities.
However, the company faces challenges in a competitive market. The projected growth from
Worksport's expansion into clean energy solutions with products like SOLIS and COR represents a significant technological pivot. The company's ability to integrate solar technology into tonneau covers (SOLIS) and develop portable power stations (COR) demonstrates innovation in the automotive accessory space. These products could potentially address the growing demand for mobile power solutions in various sectors.
However, the success of these products will depend on their performance, reliability and market adoption. The upcoming Alpha release in September will be important in gauging initial market response. Investors should pay close attention to the technical specifications, real-world performance and user feedback of these new products. The company's ability to iterate and improve based on early user experiences will be critical for long-term success in the competitive clean-tech market.
Q2 Earnings Call Available: Management Discusses Revenue Growth and Future Outlook
West Seneca, New York--(Newsfile Corp. - August 14, 2024) - Worksport Ltd. (NASDAQ: WKSP) ("Worksport" or the "Company"), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, at market close yesterday reported the financial results for the second quarter of its fiscal year (Q2 FY 2024) ended June 30, 2024.
Financial Results
Worksport continues its remarkable early growth story and reports an
By the end of Q2, Worksport's Monthly Reoccurring Revenue (MRR) was on track to hit
"Notably, Q2 sales surpass the entire 2023 year-end revenue of
The entire financial results for Q2 2024 can be accessed below.
Forward Guidance
With three new products launching later this year, Worksport has been investing heavily in growth, laying a strong foundation for continued expansion. Worksport is well positioned to leverage its equipment, facilities, and inventory investments to meet both current and anticipated sales growth through the remainder of 2024. No significant equipment investment is expected within the next 12 months. As revenues accelerate, we anticipate a reduction in net loss from operations, with a clear vision to move to positive operational cash flow within 2025.
For the tonneau cover business, at the current Q2 gross revenue rate, we are on track to meet or exceed our previously issued revenue guidance of
For FY 2025, Worksport believes that its tonneau cover business alone [not including the clean-tech business expected to launch soon] will represent
Worksport will launch the Alpha release of its highly anticipated clean-tech COR and SOLIS products this September. A successful Alpha launch will follow a market launch in the near future. This innovative business division forms the cornerstone of Worksport's future strategy to evolve into a mid-to-large market company. For future guidance on Worksport Clean-Tech, stay tuned for an initial sales outlook during the Q3 2024 earnings call.
CEO Statement on Worksport Stock (NASDAQ: WKSP)
Steven Rossi, Worksport CEO, stated, "In April 2024, the Company issued a press release stating that they believe the Worksport stock was undervalued. Today, given this quarters findings, the shared remarks on our path to cash flow positivity, and our update on guidance, we reaffirm that statement, confident that the revenue growth we're seeing this quarter is just the beginning of a prosperous climb ahead."
Rossi added, "Our tonneau cover business is expected to propel Worksport into a 9-figure, middle market company in the short to mid-term, while the clean-tech division opens a 10-figure-plus opportunity that we believe is achievable. Altogether, our aspirations in terms of revenues stretch beyond that of upper middle market."
Worksport Q2 Earnings Call
Worksport's Q2 Earnings Call occurred at 4:30pm ET on Tuesday August 13th, 2024. The full earnings call recording, prepared remarks, and presented deck can be found in the following locations:
Investors Interested in Speaking With Management Can Contact:
Investor Relations, Worksport Ltd.
T: 1 (888) 554-8789 x128
W1: https://invest.worksport.com/home
W2: www.worksport.com
E: investors@worksport.com
Worksport Quarterly Report, Item 1. Financial Statements
The Company has included the Financial Statements section below from the 'Full Worksport Q2 2024 10-Q' For Quarterly Period Ended: June 30, 2024. Investors are encouraged to read the full 10-Q along with the Prepared Remarks, both linked above.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Worksport Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
| June 30, 2024 (Unaudited) | December 31, 2023 | ||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 3,426,089 | $ | 3,365,778 | |||
| Accounts receivable, net | 623,386 | 463,122 | |||||
| Other receivable | 140,863 | 165,865 | |||||
| Inventory (note 4) | 6,386,744 | 3,631,492 | |||||
| Related party loan (note 8) | 14,303 | - | |||||
| Prepaid expenses and deposits (note 5) | 151,815 | 1,497,249 | |||||
| Total Current Assets | 10,743,200 | 9,123,506 | |||||
| Investments (note 10) | 90,731 | 90,731 | |||||
| Property and Equipment, net (note 6) | 14,308,776 | 14,483,436 | |||||
| Right-Of-Use Asset, net (note 11) | 705,155 | 917,354 | |||||
| Intangible Assets, net | 1,337,636 | 1,338,889 | |||||
| Total Assets | $ | 27,185,498 | $ | 25,953,916 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 1,750,166 | $ | 1,451,181 | |||
| Payroll taxes payable | 260,585 | 85,010 | |||||
| Related party loan (note 8) | - | 2,192 | |||||
| Current portion - Long term debt (note 12) | - | 5,300,000 | |||||
| Current lease liability (note 11) | 243,203 | 328,229 | |||||
| Total Current Liabilities | 2,253,954 | 7,166,612 | |||||
| Long Term - Lease Liability (note 11) | 485,451 | 608,761 | |||||
| Long Term Debt (note 12) | 5,300,000 | - | |||||
| Total Liabilities | 8,039,405 | 7,775,373 | |||||
| Shareholders' Equity | |||||||
| Series A & B Preferred Stock, | - | - | |||||
| Common stock, | 2,852 | 2,032 | |||||
| Additional paid-in capital | 69,230,341 | 64,685,693 | |||||
| Share subscriptions receivable | (1,577) | (1,577) | |||||
| Share subscriptions payable | 5,964,290) | 1,814,152 | |||||
| Accumulated deficit | (56,041,233) | (48,313,177) | |||||
| Cumulative translation adjustment | (8,580) | (8,580) | |||||
| Total Shareholders' Equity | 19,146,093 | 18,178,543 | |||||
| Total Liabilities and Shareholders' Equity | $ | 27,185,498 | $ | 25,953,916 | |||
The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here for the full notes.
Worksport Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Loss
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited)
| Three Months ended June 30, | Six Months ended June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net Sales | $ | 1,921,539 | $ | 199,851 | $ | 2,434,176 | $ | 231,776 | |||||
| Cost of Goods Sold | 1,624,910 | 153,288 | 2,100,091 | 173,045 | |||||||||
| Gross Profit | 296,629 | 46,563 | 334,085 | 58,731 | |||||||||
| Operating Expenses | |||||||||||||
| General and administrative | 2,946,386 | 1,744,801 | 5,620,704 | 3,874,413 | |||||||||
| Sales and marketing | 478,792 | 548,712 | 545,569 | 1,093,063 | |||||||||
| Professional fees | 766,563 | 1,491,453 | 1,710,341 | 2,360,064 | |||||||||
| (Gain) loss on foreign exchange | 15,636 | 316 | 7,685 | (142 | ) | ||||||||
| Total operating expenses | 4,207,377 | 3,785,282 | 7,884,299 | 7,327,398 | |||||||||
| Loss from operations | (3,910,748 | ) | (3,738,719 | ) | (7,550,214 | ) | (7,268,667 | ) | |||||
| Other Income (Expense) | |||||||||||||
| Interest expense | (134,164 | ) | (187,893 | ) | (257,762 | ) | (352,992 | ) | |||||
| Interest income | - | 78,778 | 3,054 | 198,606 | |||||||||
| Rental income (note 17) | 31,513 | 50,379 | 76,866 | 94,835 | |||||||||
| Gain on settlement of debt | - | - | - | 7,493 | |||||||||
| Total other income (expense) | (102,651 | ) | (58,736 | ) | (177,842 | ) | (52,058 | ) | |||||
| Net Loss | $ | (4,013,399 | ) | $ | (3,797,455 | ) | $ | (7,728,056 | ) | $ | (7,320,725 | ) | |
| Loss per Share (basic and diluted) | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.33 | ) | $ | (0.43 | ) | |
| Weighted Average Number of Shares (basic and diluted) | 25,958,628 | 17,165,533 | 23,573,349 | 17,162,471 | |||||||||
The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here for the full notes.
Read the rest of the 10-Q: 'Full Worksport Q2 2024 10-Q'
Key 2024 Press-Releases:
- August 1: Worksport Announces Impressive SOLIS Solar Cover Test Results
- July 30: Worksport to Drive Growth With new Live Sales Platform
- July 11: Worksport Expands Dealer Network
- June 20: Worksport Announces Record Breaking May Sales
- June 13: Worksport Awarded 'Innovator of the Year'
- May 16: Worksport Reports 1,
506% Q1 Revenue Surge - May 8: Worksport Awarded
$2.8M M Grant - April 25: Worksport Signals Undervalued Status, Eyes Major 2024 Growth
- March 18:
$2.8M M Direct Offering Priced At-The-Market. - March 6: Worksport to Launch Innovative SOLIS & COR Products This Summer
Read all Worksport press releases: [Link to All Press Releases].
Stay Connected
- Investor Newsletter: Investors and customers are invited to follow Worksport's progress as it builds on this momentum and strives to redefine industry standards with each new corporate development. Link to Newsletter
- Contact Information
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128
W: investors.worksport.com E: investors@worksport.com W: 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 has 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, Chevrolet, and GMC models from General Motors, as well as Ford, Jeep, 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.
| Product social media | Investor social media |
| X (formerly Twitter) | |
| Facebook | LinkedIn |
| YouTube | Link to Newsletter |
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 social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media.
The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
For additional information, please contact:
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com
W: www.worksport.com E: investors@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. These 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219866
FAQ
What was Worksport's (WKSP) revenue growth in Q2 2024?
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What was Worksport's (WKSP) gross profit margin in Q2 2024?
