VANCOUVER, British Columbia—KITS Eyecare Ltd. (TSX: KITS), a vertically integrated eyecare provider, has reported its results for the second quarter ended June 30, 2024. Revenue increased by 26 percent to $37.9 million compared with $30.0 million in the second quarter of 2023. The increase was primarily attributable to strong repeat customer revenue in both contact lenses and eyeglasses, the higher average order value and growth in the Canadian market, the company said. The company also reported record revenue of $13.8 million from new customers during the quarter.

"Again this quarter the KITS team executed across all the key metrics in our business as we continued on our mission to make eyecare easy for everyone, everywhere," said Roger Hardy, co-founder and CEO of KITS. "Once again we are leading the category in growth providing record revenue, at the high end of our range, led by our Canadian business which grew 47 percent, while our overall business accelerated to 26 percent growth year over year.

"Our glasses business grew more than 41 percent in the quarter, and we were excited to launch our Pangolins which look to lead with design and innovation in the smart eyewear category. We achieved leverage across our fulfillment, operations and marketing, and held all other costs steady while paying down debt and growing our cash flows, achieving our seventh straight quarter of positive EBITDA. Overall, it was an excellent quarter by the team which shows an acceleration across almost every key metric in the business," Hardy said.

Gross profit increased by 25.2 percent to $12.4 million compared with $9.9 million in the prior year period, the company noted. Net income was $0.2 million compared with a net loss of $1.2 million in the prior year period. EBITDA increased to $1.1 million compared with $(0.5) million in the prior year period, while adjusted EBITDA improved to $1.3 million compared with $0.5 million in the prior year period. The bottom-line improvements were primarily attributable to the aforementioned increase in revenue and gross profit, along with achieving marketing and fulfillment efficiencies as a percentage of revenue, the company said.

On June 30, 2024, cash and cash equivalents were reported as $19.3 million compared with $16.0 million on December 31, 2023, and $18.4 million on March 31, 2024. For the third quarter of 2024, KITS management said it expects revenue to be in the range of $39 million to $41 million, with adjusted EBITDA as a percentage of revenue between 3 percent and 5 percent.