Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Exxe Group Reports Record Revenue and Net Income for December 2021 Quarter

  • Exxe generates substantial revenue and net income growth year-over-year
  • Dec-21 quarterly revenue jumped by 53.1% to a new record $14.2M vs 2020 results
  • Net income soared to a record $3.4M, up 41.8% from the December 2020 quarter

NEW YORK, NY / ACCESSWIRE / February 16, 2022 / Exxe Group, Inc. (OTC PINK:AXXA), ("Exxe" or the "Company") a diversified fintech company, is pleased to announce that the Company has published its three-month and nine-month results for the period ended December 31, 2021.

Financial Highlights

Exxe Group generated record quarterly results for both revenue and net income for the period. Revenue for the December 2021 quarter (3Q22) was $14,181,451 as compared with $9,263,526 for the same period a year ago, and $13,279,551 for 2Q22 which ended just ninety days earlier. As illustrated in the table above, revenue jumped by 53.1% year-over-year while net income rose by 41.8% to $3,390,829 versus $2,390,785 last year. Net income enjoyed a 17.2% increase on a sequential basis as compared with September 2021 (2Q22), resulting in a strong 24% net profit margin.

For the nine month period, revenue grew by 62.2% to $38,483,715, up from $23,723,944, while net income jumped by 56.3% to $7,816,993, as compared with $4,999,146.

The Company also enjoyed a big rise in quarterly gross profit and gross profit margin from the year-ago period. Gross profit in the December 2021 quarter grew by over 114% to $6.7 million versus 3.1 million in 3Q21, which resulted in a gross profit margin of 47.4% versus 33.8% in 3Q21. The gross profit margin also enjoyed a healthy rise from the September 2021 (2Q22) levels as the margin was 45.1% for the prior period. While operating expenses grew to reflect the increase in revenue, operating margin of 26.3% compared with the 10.9% margin for 3Q21.

It should be noted that operating margins of 25% or greater are typically associated with firms largely engaged in fintech, online, and health care businesses, which remain a clear management emphasis. Thus, Exxe believes that these enhanced gross profit and operating performances could continue, given the migration and evolution of Exxe's key assets toward a digital, online focus. In general, this performance also demonstrates that the Company's private equity business model is effective while surpassing internal expectations.

Exxe also enjoyed increases in assets and shareholder's equity for the fiscal December 2021 quarter. Total assets of $252,140,258 grew by 17%, up from $215,442,113 while shareholder's equity enjoyed a 25.4% increase to $165,319,067 compared with $131,844,474 in 3Q21.

Business Highlights

In late November, we provided guidance of an estimated $49 million - $53 million in revenue along with 15-20% net margins for the fiscal year ending in March 2022. This estimate assumed $14 million and $15 million in revenue for the December and March quarters, respectively. Given the December 2021 performance, Exxe remains on track to meet or exceed these forecasts.

While Exxe enjoyed solid financial and operating performances across the board, a handful of key businesses served as drivers of operating profit for the Company.

For the period ended December 2021, automotive line M-MOTO recorded approximately $2.7 million in revenue, a 28% jump from the $2.1 million generated in the September 2021 quarter. In addition, EBIT rose by 15% to $1.5 million, as compared with $1.3 million. Product demand and higher customer prices led the rise. Exxe's auto parts supplier unit also enjoyed major growth in the period. Sales jumped to $905,000, up 40% from the $645,000 recorded in the September quarter. EBIT rose by 14% to $130,000, as compared with $103,000, sequentially.

Other notable performers included our agribusiness units, design firm daskonzept group, and MMeditech. The current supply chain challenges continue to serve as a positive for Exxe businesses. Supply shortages and increased consumption and demand have ensured that existing customers, especially hospitals, nursing services, outpatient care, etc. are expanding their stockpiles. Seasonality, recent commercial and government wins, along with the implementation of new, digital utilization concepts such as co-working and profit-sharing models, provide daskonzept group with revenue visibility into future quarters.

Looking Ahead

During the last few months, we elected to take a conservative approach to scaling our 1Myle business to ensure it was optimized for the Company and potential customers. This approach included rigorous technology testing and troubleshooting of KYC/AML features and anti-theft tools. Plus, we are pleased to have previously announced the addition of dozens of cryptocurrencies to our stable, along with multiple blockchain integrations. With this back-office work largely behind us, we finally feel comfortable in moving beyond a soft launch to execute and process more transactions. Substantial business lies ahead in our view, including the integration of these services with our Metaverse Initiative. We look forward to providing business updates for 1Myle including the upcoming introduction of new swap pairs.

On the Metaverse side, we believe that our steadfast, direct approach which leverages our strengths in real estate, fintech, and design focus will serve as a winning combination as compared with peers utilizing more varied business models. As with 1Myle, we are taking a staged implementation approach to this high growth segment to ensure we achieve our goals vis-à-vis users, activity, and revenue. Our online kickoff event is in the works and we will update investors in the coming weeks on timing and how to participate.

On the real estate side, we continue to consolidate assets into our overall portfolio, bringing a stronger and more diverse asset base in Europe. We believe these future revenue-generating additions should materially add to our overall financial performance.

Dr. Eduard Nazmiev, Exxe Group CEO, commented on the strong financial performance and the Company's positioning. "We are very pleased with the December quarter, especially our operating and net income achievements. Our diverse yet integrative model is bearing more fruit with each passing quarter and we are on track to comfortably exceed the $50 million in revenue mark for the 2022 fiscal year, ending in March. This will certainly serve as a landmark year for Exxe and the future remains bright ahead. The combination of our real-world assets such as real estate, agribusiness, automotive and medical products, along with design and green technology are backbones for our Company's top-line growth and operating profitability. We believe this trend will continue. Combining this group with our online fintech and Metaverse lines should result in continued high growth rates in the current year as well. We continue to target $100 million in revenue for our next fiscal year, beginning in April 2022."

About Exxe Group

Exxe Group is a diversified fintech corporation focusing on acquisitions in the following sectors: technology platforms, real estate, sustainability, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise.

For additional information please visit the Company's

Website: http://www.exxegroup.com/
Twitter: https://twitter.com/exxegroup

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.

CONTACT:

Exxe Group IR: info@exxegroup.com

SOURCE: Exxe Group, Inc.



View source version on accesswire.com:
https://www.accesswire.com/689108/Exxe-Group-Reports-Record-Revenue-and-Net-Income-for-December-2021-Quarter

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.