This NASDAQ Company has Been Expanding with 90% YOY growth in 2021 2022 and 2023 as eCommerce Stages a Major Comeback…
Why are Insiders Buying?
With eCommerce finally turning a corner, Upexi, Inc. (NASDAQ: UPXI) may be the smartest choice to have on your radar as the company targets recession proof arenas!
Despite a turbulent time for eCommerce on Wall Street, UPXI has still been seeing record revenues and announcing a slew of positive developments!
Upexi's revenue increased 144% Year-Over-Year and 53.5% Sequentially to $27.3 Million for Fiscal First Quarter 2024
The company isn’t just a brand owner, though.
It’s a fully owned, data-driven incubator, tapping into a $160B global Re-Commerce division that has fueled steady growth through big box retail partnerships (Walmart, BJ’s, Costco, Sam’s Club to name a few), an Amazon first-party relationship, and licensing deals with industry giants like the Walt Disney Company.
Privately held aggregators such as Thrasio and Perch have seen tremendous success with valuations of $7.5B and around $1B, respectively, but Upexi, although a young company, seems to offer so much more.
UPXI with a market cap at under $100M has the potential to see blue-sky territory growth as a PUBLICLY TRADED company!
Click to View UPXI Stock ChartTop Reasons to Have UPXI on Your Watchlist:
- Strategic relationships with Microsoft and Lenovo and distribution with retail giants Walmart, Costco, BJ’s, Sam’s Club, and Amazon.
- Licensing deals with industry giants like The Walt Disney Company (they have the only Disney licensed STEM toy of 2023!)
- Record Revenues with 250% YOY growth and moving from an adjusted EBITDA loss to positive adjusted EBITDA.
- From 2020 to 2023 the company has seen a 92% CAGR.
- Heavy insider ownership at over 27% represents remarkable optimism on the company’s future growth.
- A CEO that brings a lot to the table. Allan Marshall founded Segmentz, Inc. in 2000 and served as CEO, successfully acquiring five distinct logistic companies, raising more than $25M of capital, and creating the infrastructure and business foundation that is now XPO Logistics Inc. with revenues in excess of $17 billion.
- A diverse business mix of non-discretionary brands in health, wellness, pet, toys, and re-commerce on Amazonand in wholesale. The company also focuses on recession proof categories.
- Revenue growth in the company’s last quarter was predominantly driven by acquisitions as well as strong year-end sales in many of the company’s brands including Tytan Tiles and Vitamedica, as well as strong sales from their pet product business, Lucky Tail.
Fiscal First Quarter 2024 and Subsequent Operational Highlights
- Children's toy brand, Tytan Tiles, launched its first licensed Disney Frozen Product on Amazon through its partnership with The Walt Disney Company.
- In the first month of launch on Amazon, Tytan Tiles is on a run rate to move 115 units per day and increased its rank on Amazon from 20,000 to 4,000.
- Disney Frozen product line is the first of several Disney products expected to be launched.
- Pet care brand, Lucky Tail, launched expansion of product line to include all-natural dog supplements offered via subscription and in bundles.
- Vitamedica acne treatment is expecting data from its study in early 2024.
- High-volume re-commerce provider of branded OTC products, Cygnet Online, increased revenue sequentially by approximately $1.5 million, with gross profit margins increasing from 44% to 48%.
UPXI is not only capitalizing on the convenience economy of online shopping, but is utilizing its big box retail partnerships to tackle both markets to provide steady growth across the board.
Greetings Investors,
If the pandemic did anything positive, it would help e-Commerce explode and generate a shift in consumer habits. Consumers largely shifted their purchasing habits from in-person to online ordering.
More people began working from home and avoiding indoor venues, including shopping malls and restaurants. Because of these consumer behavior changes; e-commerce has continued to grow and many brands have been pivoting their business strategies to remain competitive.
E-Commerce sales were $870 billion in the US in 2021, a 14.2% increase over 2020 and a 50.5% increase over 2019
Even though the e-Commerce arena was hit negatively, on Wall Street, it doesn’t take away from how the industry is still growing. Total e-commerce sales for 2022 were estimated at $1,034.1 billion, an increase of 7.7 percent from 2021!
While Wall Street companies may have taken a blow, it certainly doesn’t mean e-Commerce was dead.
For the fourth quarter, sales hit a record high of $299.12B according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures.
And according to the Department of Commerce, e-commerce sales in the United States broke the $1 trillion threshold for the first time. This comes despite soaring commodity prices and inflation that had been hampering sales.
And before 2022 came to an end, Wells Fargo analyst Brian Fitzgerald issued a note stating that he saw e-commerce growth starting to accelerate and that sales trends in e-commerce and brick-and-mortar stores would normalize.
The analyst said he saw growth in e-commerce and brick-and-mortar sales reverting to pre-COVID levels. For much of the last decade, e-commerce sales nationally grew by about 15%, according to the Census Bureau.
The lower valuations that many eCommerce stocks have endured may represent tremendous opportunities as the tide looks to be finally turning.
The U.S. is still in its early innings for digital disruption which means UPXI is positioned to see tremendous growth as e-commerce sales continue to accelerate!
Not only that, but Upexi proved that they could handle any market with their diversification across eCommerce and retail sectors, fueling growth in both categories!
Company Overview:
Upexi is a multi-faceted brand owner with established brands in children’s toys, health, wellness, pet, beauty, and other growing markets. The company operates in emerging industries with high growth trends and looks to drive organic growth of its current brands.
But it’s certainly not a conventional brand owner. It’s a fully owned, data-driven incubator, tapping into a $160B global Re-Commerce division that has fueled steady growth through big box retail partnerships (Walmart, BJ’s, Costco, Sam’s Club to name a few), an Amazon first-party relationship, and licensing deals with industry giants like the Walt Disney Company.
UPXI’s acquisitions are focused on profitable companies that have substantial consumer databases that allow the company to cross-sell existing products offered by its various brands.
Upexi has, and continues, to build big-box retailer and vendor relationships through acquisitions of promising resellers (Re-commerce). These acquisitions have helped lay the foundation for increased retail opportunities and eCommerce accounts. They have also helped expand distribution centers throughout the continental US to California, Nevada, Massachusetts, and Florida, with planned expansion into Texas, Tennessee, and more, to create an in-house 3PL service that is used for the company’s brands and its partners.
Company Highlights:
Upexi is focused on high growth, recession resistant companies with rich consumer data. The company’s differentiated strategy has several proven advantages:
- Brand owner and incubator, focusing on driving high-margin brands to new heights through a combination of online sales and retail partnerships.
- Build, buy & scale profitable, data-driven DTC consumer brands in multiple high growth industry verticals.
- Acquire brands with rich consumer data and with an already-established customer database.
- Focus on customer LTV and online purchase behavior across industries using competitive CPA advertising.
- Rely on overlapping industries to cross-sell current and new customers. Growth Through Acquisition
Post Scaling Acquisition StrategyAcquisition Criteria & Process
- Streamlined deal process (we aim for 30 days or less to agree on terms)
- Seek to retain management for continued upside
- Target brand acquisitions with an established customer database for cross marketing opportunities
- Acquisitions with multiples that drive growth at sensible costs
- Rely on overlapping industries to cross-sell current and new customers
- In-house brand launches to drive growth with higher margins
MODEL FEATURES:
- High-Torque Motor
- Off-Road Use Only
- 70 Mile Range*
- 3 Ride Modes + Reverse
- Time to Charge: Approximately 2.5 hours
- Top Speed: 40 mph
*Range can differ depending on several variables (speed, incline, payload, terrain, etc.)
UPXI with a market cap at under $100M has the potential to see blue-sky territory growth as a PUBLICLY TRADED company!
Click to View UPXI Stock ChartThe Market
With a diverse business mix of non-discretionary brands in health, wellness, pet, toys, and liquidation in wholesale, Upexi has a massive market.
The closing of the company’s acquisition of E-Core, Inc. and its subsidiaries; Tytan Products and New England Technology, Inc., was a tremendously strategic move to get into the children’s toy space.
With over $40 million in trailing twelve-month sales, E-Core provides Upexi with an entrance into the toy category as well as national retail distribution for owned and non-owned branded products. This is the company's Re-commerce arm that has fueled exponential growth for Upexi. Tytan, itself, has grown 100% in just two years, with major retail distribution through some of the largest retailers in America.
E-Core has a never-ending list of partners that they’ve worked with for decades, which certainly contributes to the steady growth of brands.
The brand has also signed a licensing agreement with the Walt Disney Company and has just launched its first product, a STEM-certified, Disney Frozen Princess magnetic tile set!
The global toys market is projected to grow from $141.08 billion in 2021 to $230.64 billion by 2028 at a CAGR of 7.30% in the forecast period, 2021-2028.
Tytan is a children's toy brand and maker of popular magnetic tiles and building blocks and New England Technology is a national distributor for branded consumer products.
The Tytan Tiles line of STEM toys has seen such strong demand since its entrance into Walmart stores that the retailer placed an additional order, almost doubling its initial forecast for the first half of 2023.
CEO Allan Marshall remarked, "The initial launch has surpassed all Company forecasts, resulting in additional orders to keep up with demand. We are committed to the category and have already committed to up to four new product launches in 2023/2024.
The acquisition of UPXI’s International pet care brand, LuckyTail, Inc. was another strategic move as Lucky Tail has a strong presence on Amazon and its eCommerce store, offering grooming and nutritional products. Products are also available on leading pet care website Chewy.com.
According to Fortune Business insights, the global pet care market size was USD 207.90 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with pet care products witnessing a positive demand shock across all regions amid the pandemic.
Amazon Seller M&A Market Active Despite Aggregator Struggles
Upexi has a strong footing in the health and wellness sectors, with physician formulated nutraceuticals from VitaMedica…
Another brand, Cure Mushrooms, that harnesses the power of medicinal mushrooms…
And a growing line of superfood gummies under their Moonwlkr Health brand!
Now, with so much growth, its interesting to point out that some Amazon aggregators are pausing buying, such as Thrasio and Perch, who likely made few or no acquisitions in 2022,
UPXI, however, continues to increase their pipeline.
Experienced Management
Allan Marshall - Chief Executive Officer
- 30+ years of M&A focused experience
- Founder of XPO Logistics, Transportation Services, Inc., and Segmentz, Inc.
Andrew Norstrud - Chief Financial Officer
- Experienced consultant, focused on integrating strategic acquisitions and structure implementation for public companies
Gene Salkind, M.D. - Board of Directors
- Chairman of Compensation Committee
- Practicing Neurosurgeon, Intuitive Surgical Pharmacyclics
Thomas Williams - Board of Directors
- 35+ years of experience, specialized in securitization mechanisms of illiquid assets
Lawrence H Dugan - Board of Directors
- Chairman of Audit Committee
- 25+ years of accounting experience
The potential in UPXI’s growth lies heavily at the hands of seasoned and experienced CEO Allan Marshall whose reputation is incredibly impressive!
Before he became CEO and Director of Upexi, Allan Marshall began his career in the transportation and logistics industry. He founded Segmentz, Inc. in November of 2000 and served as the Chief Executive Officer, successfully acquiring five distinct logistic companies, raising more than $25M of capital, and creating the infrastructure and business foundation that is now XPO Logistics Inc. with revenues in excess of $17 billion.
Prior to Segments, Mr. Marshall founded the U.S. Transportation Services, Inc. in 1995, whose primary focus was third-party logistics. And it was because of his innovative leadership and drive to help UST achieve its full potential that it sold to Professional Transportation Group, Inc. in January 2000.
Early in his career, Mr. Marshall served as Vice President of U.S. Traffic Ltd, a Canadian company. He founded their United States logistics division and had previously founded a successful driver leasing company in Toronto, Ontario, Canada.
Over the course of his long and storied career as a leader for companies all over the world, Mr. Marshall has proven himself to be a force to be reckoned with. His incredible growth story with XPO Logistics, Inc. shows the potential for any company with his name attached to it.
Under his guidance and expertise, UPXI is already growing year after year, with impressive multi-millions in revenue!
The Bottom Line
The e-commerce opportunity is hard to dismiss and Upexi, Inc. (NASDAQ: UPXI) is a quietly trading company that is raking in multi-millions….
They’ve taken an innovative approach by tapping into Re-commerce as well, utilizing decades of big box retail partnerships to fuel brands even more.
As a multifaceted brand owner, UPXI has established brands in the health, wellness, pet, beauty, and other growing markets and it may be just a matter of time before Wall Street fully uncovers the company.
It was in 2022 that the company executed a successful business model to acquire leading, profitable, data-rich brands. Revenue, gross profit margin, and adjusted EBITDA have increased YOY as a result.
This company trading for just a few dollars is now well positioned through many acquisitions. With a strong cash flow, and a CEO who has previously helped another company reach $17B in revenues, there could be substantial growth ahead as UPXI delivers blowout quarters.
While recession and inflation concern plague Wall Street, savvy investors look for opportunity and this company doesn’t seem phased by economic uncertainty!
Start your own research to see how there could be astronomical growth ahead for UPXI who expects exponential revenue growth in 2024!
With that, the company is building a portfolio of promising brands that will help it move towards it's $100M revenue goal in 2023!
Click to View UPXI Stock Chart
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