VANCOUVER, British Columbia—Kits Eyecare Ltd. (TSX: KITS), a vertically integrated eyecare provider, yesterday reported record financial results for the third quarter ended September 30, 2024. Revenue increased by a reported 34.4 percent in the third quarter to a record $41.9 million compared with $31.2 million in the same period last year. The increase was primarily attributable to strong repeat customer revenue in both contact lens and eyeglasses, with higher average order values, according to the company.

"Reflecting on our third-quarter results, I'm incredibly proud of the progress we've made as a team. Achieving a record 34.4 percent revenue growth and significant operational efficiencies highlights the strength of our approach in reaching new customers while continually optimizing our business," said Roger Hardy, co-founder and CEO of KITS. "This quarter, we achieved a milestone in glasses revenue, up 43.2 percent year-over-year, and welcomed a record number of new customers.

“These achievements underscore the impact of our dedicated focus on product expansion and customer retention. We're excited to build on this momentum as we continue scaling KITS and driving value for our shareholders," Hardy said.

Gross profit increased by 29.2 percent to $13.8 million in the third quarter of 2024 compared with $10.7 million in the prior-year period.

Net income was reported as $0.1 million compared with net income of $0.5 million in the prior-year period. EBITDA was $0.9 million compared with $1.4 million in the prior-year period, while Adjusted EBITDA improved to $1.6 million compared with $0.6 million in the prior-year period. The bottom-line improvements were primarily attributable to the increase in revenue and gross profit, the company noted, along with achieving marketing and fulfillment efficiencies as a percentage of revenue.

On September 30, 2024, cash and cash equivalents totaled $19.1 million compared with $16.0 million on December 31, 2023 and $19.3 million on June 30, 2024.

For the nine months ended September 30, 2024, revenue increased 28.9 percent to $114.5 million compared with $88.8 million in the prior-year period. Gross profit was $37.4 million or 32.6 percent of revenue, compared with $29.7 million or 33.4 percent of revenues. Net income was $0.4 million compared with a net loss of $1.7 million in the prior-year period.

For the fourth quarter of 2024, KITS management said it expects revenue to be in the range of $43.0 million to $45.0 million, with Adjusted EBITDA as a percentage of revenue between 3 percent and 5 percent.

KITS also announced yesterday that Arshil Abdulla has been appointed to the company's board of directors, replacing Sabrina Liak who has resigned from the company's board. Abdulla is the former CEO and founder of LD Vision, and the current chief technology officer at KITS Eyecare. 

"Arshil is a remarkable technology leader with decades of experience bringing innovation to customers in the optical category," said Hardy. "He's been a terrific partner as we've rapidly grown KITS over the past six years. As we continue to build KITS into the preferred optical company for customers, Arshil's expertise in technology, AI and optical will be invaluable in the years ahead. We thank Ms. Liak for her contributions, and wish her well in her future endeavors."