boston127
5 years ago
NEWS - 05-18-2020
NEW YORK, May 18, 2020 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK) (“Mohawk”) the tech-enabled, consumer-focused product company, today announced it is providing its managed Software-as-a-Service (SaaS) to Emerisque, a London U.K., based specialist private equity firm focused on global consumer and retail sectors.
The value creation thesis and core theme of Emerisque investments is to acquire medium-sized companies and move them towards growth markets, channels, and categories (including multi-channel digital commerce, franchising, and licensing among others). Under the terms of the agreement, Emerisque will utilize AIMEE’s machine learning, natural language processing, and data analytics to evaluate strategic acquisitions in the marketplace, including opportunities for growth post-closing. “Our software platform’s insights into critical online sales channels will provide Emerisque with an understanding of the omnichannel competitive landscape. AIMEE can surface various untapped consumer paths to purchase that can unlock growth at the product level as well as leverage trends within the entire category. We often see existing brands missing on these insights, leaving money on the table. We believe a deeper understanding of the existing untapped upside of an M&A target is going to allow Emerisque to further drive value from each deal they lead”, said Mohawk Group’s Head of Business Development and SaaS, Sam Appelbaum.
"We are very pleased to announce this new relationship with Emerisque,” said Mohawk Group Chief Executive Officer, Yaniv Sarig. “The team at Emerisque has been very successful creating value by acquiring and expanding companies that have significant untapped global growth potential. The combination of their experience and expertise combined with AIMEE’s ability to quickly and efficiently analyze large amounts of data, will enhance Emerisque’s ability to assess the potential opportunities of its acquisition targets.”
Ajay Khaitan, Founder of Emerisque, said that “Emerisque is excited to leverage the power of Mohawk’s AIMEE platform to make improved decisions with our retail portfolio companies and on potential acquisitions.”
boston127
5 years ago
Press Release: Mohawk Group Reports
First Quarter 2020 Results
Net Revenue Grew 43.6% to $25.6 Million; April Net Revenue Grew 75% From Continued Ecommerce Acceleration
4:10 pm ET May 11, 2020 (Dow Jones) Print
Mohawk Group Reports First Quarter 2020 Results - Net Revenue Grew 43.6% to $25.6 Million; April Net Revenue Grew 75% From Continued Ecommerce Acceleration
Raises Net Revenue Guidance for Full Year 2020
Expects Positive Adjusted EBITDA in the Third & Fourth Quarters of 2020
NEW YORK, May 11, 2020 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK) ("Mohawk") today announced results for the first quarter ended March 31, 2020.
First Quarter Highlights
-- 16 new products launched in the first quarter of 2020.
-- First quarter net revenue grew 43.6% year over year to $25.6 million
compared to $17.8 million in the first quarter of 2019.
-- First quarter gross margin improved to 40.2% versus 37.4% in the first
quarter of 2019.
-- First quarter operating loss of $(13.9) million increased from $(7.1)
million in the first quarter of 2019.
-- First quarter contribution margin improved to (2.9%) from (4.5%) in the
first quarter of 2019, reflecting both higher sustain revenues and margin
expansion.
-- Excluding non-cash stock-based compensation of $7.4 million, fixed
operating expenses for the first quarter remained essentially flat.
-- First quarter net loss of $(15.0) million increased from $(8.4) million
in the first quarter of 2019.
-- First quarter Adjusted EBITDA of $(6.4) million versus $(5.6) million in
the first quarter of 2019.
-- New COO, Pramod K C, appointed to lead Operations based out of Shenzhen
office
Yaniv Sarig, Co-Founder and Chief Executive Officer, commented, "As we navigate the current environment, our thoughts are with the healthcare professionals, first responders and other essential workers around the world on the frontlines of the global COVID-19 pandemic. I am so proud of the resiliency of our team members and business partners who have gone above and beyond to ensure our business and operations are running smoothly to meet the heightened needs of online consumers during these unprecedented times."
Mr. Sarig continued, "Our strong first quarter results are reflective of our ability to continue leveraging our tech enabled business model driven by data, automation and artificial intelligence to expand our market share. Importantly, as consumers are spending more time at home, we are experiencing an increase in demand for our products across categories. Balancing liquidity and growth remains a top priority, and we are managing all expenses, working capital and capital expenditures efficiently. These efforts, combined with our AIMEE software, and new product pipeline, have us well positioned to capitalize as purchasing behavior further shifts towards ecommerce."
Outlook
For full year 2020, the Company increases its net revenue expectation to be in the range of $165.0 million to $175.0 million driven primarily by continued growth of its existing product portfolio and the positive contribution from new products launched in 2020. The Company expects to generate positive Adjusted EBITDA for the three months ended September 30, 2020 and also for the three months ended December 31, 2020.
Appointment of New COO
The Company announced today the appointment of Pramod K C as Chief Operating Officer, effective June 1, 2020. Mr. K C will oversee operations of the Company's Asia supply chain and will be based in the Company's Shenzhen offices. In conjunction with this announcement, the Company also announced that Peter Datos will step down from his position as Chief Operating Officer and depart the Company.
Yaniv Sarig, Co-Founder and Chief Executive Officer of Mohawk Group, stated, "We are very pleased to welcome Pramod to Mohawk Group. He is a seasoned leader with significant integrated supply chain management and quality control experience in Asia, working with several well-known companies during his career. We believe his strong track record in operational management will be a great addition to our executive team. This strategic decision to shift the COO role to China highlights our increased focus on optimizing our supply chain and our commitment to accelerating the number of products we can launch while maintaining high quality and competitive pricing."
Mr. Sarig continued, "I want to thank Pete for his many contributions, especially in helping us grow our product portfolio. Pete is an accomplished leader and we wish him the best in his future endeavors."
Prior to joining the Company, Mr. K C was head of Asia Operations for G-Lab GmbH, a Swiss consumer electronics company, since April 2014. Mr. K C previously held various General Manager positions at PassageMaker Solutions, a supply chain management company in Asia, from July 2007 to March 2014 and was involved in development, procurement, production management, quality control and export logistics within the supply chain for a variety of clients, including Hewlett-Packard, DELL, Harley Davidson and Home Depot. Mr. K C started his career as a product development engineer, performing embedded software programming for consumer electronics products. He then began handling and managing integrated supply chains and operations for companies operating in the Asia-Pacific region. He holds a Bachelor in Engineering with a focus in Applied Electronics Technology from Shanghai University.
Non-GAAP Financial Measures
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Non-GAAP Financial Measures and Reconciliations" section below.
Webcast and Conference Call Information
Mohawk will host a live conference call to discuss financial results today, May 11, 2020, at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 295-1077 (domestic) or (470) 495-9485 (international) at 5:00 p.m. ET and provide the Conference ID: 7123909. The conference call will also be available to interested parties through a live webcast https://ir.mohawkgp.com/investor-relations. Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software.
About Mohawk Group Holdings, Inc.
Mohawk Group Holdings, Inc. and subsidiaries ("Mohawk") is a rapidly growing technology-enabled consumer products company that uses machine learning, natural language processing, and data analytics to design, develop, market and sell products. Mohawk predominantly operates through online retail channels such as Amazon and Walmart. Mohawk has six owned and operated brands: hOmeLabs, Vremi, Xtava, RIF6, Holonix Health, and Aussie Health Co. Mohawk sells products in multiple categories, including home and kitchen appliances, kitchenware, environmental appliances (i.e., dehumidifiers and air conditioners), beauty related products and, to a lesser extent, consumer electronics. Mohawk was founded on the premise that if a company selling consumer packaged goods was founded today, it would apply artificial intelligence and machine learning, the synthesis of massive quantities of data and the use of social proof to validate high caliber product offerings as opposed to over-reliance on brand value and other traditional marketing tactics.
Forward Looking Statements
All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our expected 2020 net revenue and Adjusted EBITDA, the statements pertaining to our expected April 2020 net revenue which is subject to review by our external auditors in connection with the filing of our Form 10-Q for the period ended June 30, 2020, our ability to manage expenses, working capital and capital expenditures efficiently, our business model and our technology platform, including our ability to disrupt the consumer products industry, our ability to grow market share in existing and new product categories; and our ability to generate profitability and shareholder value. These forward-looking statements are based on management's current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to the impact of COVID-19 including on consumer demand, our cash flows, financial condition and revenue growth rate; our supply chain, sourcing, manufacturing, warehousing and fulfillment; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety concerns, reliance on third party online marketplaces, seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and other factors discussed in the "Risk Factors" section of our most recent periodic reports filed with the Securities and Exchange Commission ("SEC"), all of which you may obtain for free on the SEC's website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Investor Contacts:
Ilya Grozovsky, Mohawk Group
ilya@mohawkgp.com
917-905-1699
Brendon Frey, ICR
brendon.frey@icrinc.com
203-682-8200
Media Contact:
Jessica Liddell, ICR
203-682-8200
MohawkPR@icrinc.com
MOHAWK GROUP HOLDINGS, INC.
(MORE TO FOLLOW) Dow Jones Newswires
May 11, 2020 16:10 ET (20:10 GMT)
StockSpock
5 years ago
Preliminary 1st Q below. I Think the actual filing is next week. The annual (10K) is delayed until may (Covid).
Mohawk Group Reports Strong Preliminary First Quarter Net Revenue Between $25.0 Million & $26.0 Million, An Approximate 43% Growth Vs Prior Year.
https://ir.mohawkgp.com/node/6951/html#mwk-ex991_7.htm
April 9, 2020
NEW YORK, April 09, 2020 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK), the tech-enabled e-commerce consumer products company, today announced preliminary net revenue results for the first quarter ended March 31, 2020 driven by stronger demand from Amazon customers, as the Company continues to manage a highly challenging and uncertain business environment arising from the pandemic.
The Company expects first quarter 2020 net revenue in the range of $25.0 to $26.0 million, an increase of approximately 40.4% to 46.0% compared with the first quarter of 2019. The Company expects to report finalized first quarter 2020 results and hold a conference call in early May 2020.
“As the COVID-19 pandemic affects everyone around the globe, our thoughts are with the healthcare professionals, first responders and the retail workers who are in the frontlines,” said Yaniv Sarig, Co-Founder and Chief Executive Officer of Mohawk Group. “I am grateful for all of our team members and our business partners who have executed at a high level for us during these unprecedented times. In particular, our logistics network has implemented the appropriate protective measures and is currently operating with limited disruptions so that we can quickly get customers the products they need.”
BUSINESS UPDATE
Mohawk Group has seen a significant increase in demand across most product categories that are now harder to purchase offline due to retail closures and also thanks to the Company having its own fulfillment infrastructure. In particular, the Company has seen even stronger acceleration on certain products such as freezers, mini fridges, air purifiers, portable washing machines, home office furniture, hair trimmers and others. As an example, search volume for freezers has increased by nearly 140% in March 2020 compared to March 2019, with over 15 million unique searches across Amazon. Mini-fridge search volume has also increased by more than 25%, to nearly 33 million, while humidifiers and beverage coolers have also seen increased demand. The Company expects to continue to leverage its proprietary AIMEE software ideation platform to monitor product search trends to identify what consumers may need in the months to come.
About Mohawk Group Holdings, Inc.
Mohawk Group Holdings, Inc. and subsidiaries (“Mohawk”) is a rapidly growing technology-enabled e-commerce consumer products company that uses machine learning, natural language processing, and data analytics to design, develop, market and sell products. Mohawk predominantly operates through online retail channels such as Amazon, and Walmart. Mohawk has incubated and grouped four owned and operated brands: hOmeLabs, Vremi, Xtava and RIF6. Mohawk sells products in multiple categories, including home and kitchen appliances, kitchenware, environmental appliances (i.e., dehumidifiers and air conditioners), beauty-related products and, to a lesser extent, consumer electronics. Mohawk was founded on the premise that if a company selling consumer packaged goods was founded today, it would apply artificial intelligence and machine learning, the synthesis of massive quantities of data and the use of social proof to validate high caliber product offerings as opposed to over-reliance on brand value and other traditional marketing tactics.
Forward Looking Statements
All statements other than statements of historical fact included in this press release that address activities, events, or developments that we expect, believe, or anticipate will or may occur in the future are forward-looking statements, including the statements pertaining to our expected first quarter 2020 net revenue which is subject to review by our external auditors in connection with the filing of our Form 10-Q for the period ended March 31, 2020, and AIMEE’s ability to identify search trends for new products and the Company’s ability to bring those product opportunities to market successfully.
Forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
A list and description of risks, uncertainties and other factors that could cause or contribute to differences in our results include risks related to the completion of the customary quarterly financial statement review procedures, general economic and market factors, and specific risks related to global economic and marketplace uncertainties related to the COVID-19 pandemic, among others discussed in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We qualify all of our forward-looking statements by these cautionary statements.
Media Contact Jessica Liddell ICR
203-682-8200
MohawkPR@icrinc.com
Investor Contacts:
Ilya Grozovsky, Mohawk Group
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