Stocks Update – May 22nd, 2023: Genius Brands, Nanox, SPAR Group, MedAvail, and Lightspeed

Welcome back to my daily blog post about stocks I own! Today, we have exciting news to share about five of our portfolio companies. Genius Brands has announced a staggering 885% increase in revenue for Q1 2023, while Nanox reveals its first-quarter financial results and business update. SPAR Group proudly reports strong fiscal results, and MedAvail released its first-quarter financial results. Finally, Lightspeed has announced its Q4 and full-year financial results and provided an outlook for fiscal 2024. Keep reading to find out more details about each of these companies’ performances and how it impacts our portfolio

Genius Brands reports strong revenue growth for Q1 2023 and cost cutting plan

Genius Brands International Inc. (NASDAQ: GNUS) reported strong revenue growth for Q1 2023, announcing an 885% increase to $14.2 million, compared to $1.4 million during the same period last year. The company has also begun a comprehensive cost-cutting plan to streamline operations and reach profitability by reducing personnel costs, production spend, lease, and vendor expenses. Additionally, the company reports $114.3 million in current assets, $23.5 million in working capital and a total stockholders’ equity of $91.3 million.

Following successful strategic initiatives, Genius Brands has produced 26 original 11-minute episodes of “Shaq’s Garage,” starring and executive produced by legendary Shaquille O’Neal. This series will debut June 5th on Pluto TV, a leading free streaming television service. Furthermore, Genius Brands have sustained growth in their subscription base and viewer watch time, increasing 6% and 15% respectively since Q4 2022.

As an investor, the positive report on the significant revenue growth and cost-cutting initiatives prompts for me to continue holding my shares. The upcoming launch of “Shaq’s Garage” is an exciting addition to Genius Brands’ collection of multimedia entertainment content for children. The growth in subscription base and viewer watch time is also a clear indication of the appeal of the company. Therefore, I recommend holding on to this stock.

NANO-X IMAGING LTD Reports Progress Towards Global Supply Chain Development

NANO-X IMAGING LTD (NASDAQ: NNOX) has shared that they ended the first quarter of 2023 with cash, cash equivalents, restricted cash, and marketable securities worth $91.0 million. The company has also reported generating $2.4 million in revenue in the first quarter of 2023 as compared to $1.8 million in the first quarter of 2022.

The Israeli medical imaging technology company has recently received clearance from the U.S. Food and Drug Administration (FDA) to market the Nanox.ARC as a stationary X-ray system intended to produce tomographic images of the human musculoskeletal system adjunction to conventional radiography on adult patients. This device is intended for use in professional healthcare facilities, radiological environments such as hospitals, clinics, imaging centers, and other medical practices.

Furthermore, they have recently established a demo center in Fort Lauderdale, Florida, and are working towards receiving an import license during the second quarter of 2023. This is an effort to establish the company’s presence in the U.S. market.

NANO-X IMAGING LTD has also entered into a three-year distribution pre-sale agreement with Vital Tech SARL to deploy 270 Nanox.ARC units in the Kingdom of Morocco. They have also obtained the necessary import license for the same.

Overall, the developments in the first quarter of 2023 for NANO-X IMAGING LTD seem promising. The company is working towards establishing its presence in the U.S. market, has received clearance from the FDA, and has entered into a lucrative distribution pre-sale agreement with Vital Tech SARL. As a result, I would recommend buying the stock of NANO-X IMAGING LTD.

SPAR Group, Inc. Reports Strong Q1 2023 Results

SPAR Group, Inc. (NASDAQ: SGRP), the leading global provider of merchandising, marketing, and distribution services, has reported their financial and operating results for the first quarter ended March 31, 2023. The company reported net revenue of $64.4 million, a 9.1% increase from the prior year quarter, driven by revenue expansion and growth in merchandising, remodeling, and distribution services, especially in the U.S.

Gross profit margins increased to 22.0% of revenues, a 190-basis point improvement due to improved contract terms and pricing, system enhancements, and other cost-saving initiatives. Net earnings and adjusted EBITDA also saw strong growth.

According to Mike Matacunas, the Company’s President and CEO, “We have nothing to report publicly today regarding the review of strategic alternatives; however, we are committed to growing the business, serving our clients and supporting our employees and joint venture partners.”

As a stockholder, these Q1 2023 results are encouraging and indicate the company’s continued focus on growth and profitability. I would recommend holding onto the stock and monitoring future performance to assess the outcome of the strategic review. With the company’s strong balance sheet, expansion of revenue, and improvement of gross margins, there is potential for future growth and value for shareholders.

MedAvail Holdings, Inc. Reports Strong Q1 Results

MedAvail Holdings, Inc. (Nasdaq: MDVL), a leading pharmacy technology solutions provider, has reported impressive financial results for Q1 2023. The company’s CEO, Mark Doerr, stated that MedAvail is on track to become a leader in the development and manufacture of pharmacy technology solutions. The sale of certain SpotRx assets to CVS in January has helped solidify the company’s position in the market, and the pipeline continues to grow.

MedAvail is aiming to add 25 net new dispensing MedCenters to the network, with the goal of improving the partner experience while reducing the expense run rate and extending the cash runway. The company is achieving these benefits through faster, more seamless software integrations and the creation of an in-house service organization to replace a legacy third party relationship.

The regulatory landscape has also been favorable, with Colorado enacting legislation that supports remote kiosk pharmacy dispensing. MedAvail believes that this presents an opportunity to expand the addressable market significantly in the long term. The company continues to work with lawmakers in states where a favorable change is being considered.

MedAvail is well financed, and with its expectation for topline growth and margin expansion, combined with expense efficiencies, the company is confident it can achieve operating cash flow breakeven without the need for additional dilutive equity financings.

In my opinion, MedAvail’s Q1 results are impressive and have confirmed the company’s position in the market. It is exciting to see the company’s pipeline continue to grow, and the regulatory landscape evolving in its favor presents opportunities for further growth. I recommend holding the stock and monitoring the company’s growth in the coming months.

Lightspeed Commerce Reports Impressive Fiscal 2023 Results, Plans to Accelerate Adoption of Financial Services

Lightspeed Commerce Inc. has reported total revenue of $730.5 million for Fiscal 2023, growing by 33%, with an annual net retention rate of ~110%. The company’s total revenue for the quarter also increased by 26% YoY to $184.2 million. The Gross Payments Volume for the quarter also grew by a staggering 70% YoY to $3.8 billion. The company launched a unified POS and payments initiative to help merchants simplify their operations and create exceptional customer experiences.

The CEO of Lightspeed, JP Chauvet, expressed his pride in the milestones accomplished this year. By going from nine products to two flagship platforms, Lightspeed has increased its focus on target customers and accelerated its innovation engine. The strong annual net retention rate indicates that businesses are expanding their technology suite with Lightspeed as they grow and thrive.

Investors looking for growth opportunities may be interested in further researching the company and its financial services adoption plan for a potential buy recommendation.

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