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PhoneX Holdings, Inc. (OTC:PXHI) ($1.35; $48.5M market cap) , announced Q1 2024 results: (filed May 15, 2024)
Q1 sales of $43.6 million vs $50.6 million in the prior year
Q1 EPS of $0.03 vs $0.06 in the prior year
“While trade in volumes for the iPhone 15 were higher than for the iPhone 14 a year earlier, the Company experienced lower margins in its Proprietary Trading business in Q1 2024 versus Q1 2023. We believe that certain macroeconomic factors, such as the reopening of China after COVID-19 lockdowns, and increased demand for preowned iPhones in Russia following Apple’s departure from the region, resulted in significant competition for supply over the last four quarters, which negatively impacted margins. However, early signs in Q2 2024 point to a reversal of this trend, with margins trending higher in Q2 2024 than in Q2 2023. Based on these early signals, management believes that the market is beginning to normalize. Additionally, we believe that the reduced margin environment over the last four quarters may have caused more thinly capitalized competitors to exit the industry. While we cannot be certain that these positive margin trends will continue, we believe that our investments in technology and operational efficiency have positioned us favorably versus our competitors.”
The company has repurchased 407,336 shares since the beginning of the year.
Phonex Holdings Inc., formerly uSell.com, Inc. (uSell), is a technology-based company. The Company focuses on extracting the value from used mobile devices. It acquires products from both individual consumers, on its Website, uSell.com, and from carriers, retailers and manufacturers through its subsidiary, We Sell Cellular, LLC.
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PhoneX Holdings, Inc. (OTC:PXHI) ($1.35; $48.5M market cap) , announced Q4 2023 results:
Q4 sales of $47.0 million vs $47.4 million in the prior year
Q4 EPS of $0.09 vs $0.09 in the prior year
Full year sales of $179.4 million vs $149.2 million in the prior year
Full year EPS of $0.17 vs $0.21
“The Company’s Proprietary Trading business experienced lower margins in 2023, as trade-in volumes were lower than during the same period in 2022. Management believes that this reduction was due to a muted launch of Apple’s iPhone 14 series. Due to a reduction in available supply compared to prior years and an inflow of new entrants into the market over the last few years, it was more challenging to procure supply at attractive margins, and device margins on sales reduced sharply. While preliminary data from the iPhone 15 launch indicate higher trade in volumes than the iPhone 14, the Company continues to experience lower margins in its Proprietary Trading business, likely due to heightened competition”.
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PhoneX Holdings, Inc . (OTC:PXHI) ($1.88; $67.9M market cap), an online platform for the wholesale exchange of used smartphones, announced Q2 2023 results: (via 10-Q only)
Q2 sales of $39.9 million vs $31.9 million in the prior year
Q2 EPS of $0.01 vs $0.02 in the prior year
“The Company’s Proprietary Trading business contracted in Q2, as trade-in volumes dropped sharply from the prior quarter. Management believes that this reduction was due to a relatively unsuccessful launch of Apple’s iPhone 14 series. Due to a reduction in available supply versus prior years, it was more challenging to procure supply at attractive margins, and device margins on purchases reduced sharply. While these conditions have improved to some extent in recent weeks, the market is still substantially less constructive than it was during the same period last year. In order to continue to expand the Company's market share, and despite the lower margin environment, management will continue to seek strategies to expand the Company’s reach and capture incremental market share through its Proprietary Trading business. We believe that we can leverage our scale and technological advantages to drive efficiencies and gain an advantage over less efficient, more thinly capitalized competitors. In particular, the Company has begun building out a remanufacturing operation that it believes will result in long-term market share expansion and margin growth, and has embarked on a lean transformation of its distribution center to reduce its costs. In order to drive these initiatives, the Company will make investments in personnel and infrastructure during the upcoming quarters. The success of We Sell Cellular’s growth strategy depends on its ability to execute and its ability to continue to scale its volumes despite uncertain market conditions.”
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PhoneX Holdings, Inc . (OTC:PXHI) ($0.99; $43.3M market cap) , an online platform for the wholesale exchange of used smartphones, announced Q3 2021 results:
Sales of $27.0 million vs $22.6 million in the prior year
EPS of $0.03 vs $0.01 in the prior year
We are very encouraged that the company seems to be materially expanding its software side of the business, which as we pointed out in our recent report is the area of the business we are most excited about.
Details on quarter and outlook from 10-Q:
“The Company’s Proprietary Trading unit continued to execute on its measured growth strategy, as trade-in volumes remained strong throughout the summer months. In an effort to augment demand for its products, We Sell Cellular LLC began offering 30- day credit terms to qualified buyers during the third quarter of 2021. All terms are substantially insured by a third party. Management believes that, given the capital constrained nature of its customer base, this offering will enable it to expand its customer base and gain a greater market share. Since launching the program in July, we have seen early traction and a positive response from customers. The success of the strategy, however, depends on We Sell Cellular LLC’s ability to continue to procure a higher volume of devices at favorable prices.
In addition, the Company continued to generate meaningful software revenue via a licensing agreement effected through its PhoneX, Inc. subsidiary. Management will focus on growing Software Licensing Revenue related to its Platform Partnership business while investing in long-term growth, with the goal of transforming into a scalable cloud-based software company generating high-margin, recurring revenues. The Company has completed a redesign of its software, with a special focus on scalability, internationalization, and multi-tenancy. Management believes that this investment will substantially expand its total addressable market, as it can now license its SaaS product to distributors of all sizes throughout the world. We believe that there is significant overlap between We Sell Cellular’s customer base and the customers that will benefit from PhoneX’s software offering, and we plan to leverage this synergy.
In line with the aforementioned strategy, PhoneX, Inc. has significantly expanded both its onshore and offshore technology team throughout the course of the 2021. The Company plans to continue to invest in technologies that enhance multi-tenancy, internationalization, high-availability, and scalability. We have begun to pursue research and development in the field of machine learning in an effort to develop algorithms to assist our customers in making intelligent pricing decisions. All of our initiatives are geared toward increasing the long-term value of the enterprise. Management anticipates an increase in its cost structure in the short and medium term; however, we will seek to maintain operating leverage by contracting functions where management deems appropriate. The success of any of the above endeavors hinges on the Company’s ability to successfully market and distribute its cloud-based software offering. Early signs indicate a positive reception by the market.”
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PhoneX Holdings, Inc. (OTC:PXHI) ($0.43; $12.7M market cap, an online platform for the wholesale exchange of used smartphones announced Q4 2020 results:
Q4 Sales of $18.2 million vs $17.3 million in the prior year
Q4 Non-GAAP EPS of $0.00 vs $0.00 in the prior year
Full year sales of $75.0 million vs $67.9 million in the prior year
Full year Non-GAAP EPS of $0.04 vs $0.04 in the prior year
"Despite a roughly six-week government mandated shut down due to COVID-19 between the end of March and the beginning of May, the Company had a positive year, driven by high demand for used mobile devices across the world.
The Company’s success in the wake of the COVID-19 pandemic provides continued evidence that its substantially lower cost structure, its strategy to purchase more opportunistically, and increased activity on its online platform have fundamentally transformed the business for the better. Management will continue to focus on scaling transaction volume related to its Platform Partnership business while purchasing opportunistically through its We Sell Cellular LLC subsidiary. Management believes that a continued focus on enhancing its software will result in value creation for both the Proprietary Trading and Platform Partnership sides of the business. "
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PhoneX Holdings, Inc. (OTC:PXHI) ($0.14; $4.1M market cap, an online platform for the wholesale exchange of used smartphones announced Q3 2020 results:
Sales of $22.6 million vs $15.4 million in the prior year
EPS of $0.01 vs a loss of $0.01
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Q1 2020 Results Sales of $19.7 million vs $17.2 million in the prior year
The Company’s results for the first quarter of 2020 provide continued evidence that its substantially lower cost structure, its strategy
On Sunday, March 22, 2020, the Company was ordered to shut its warehouse due to the COVID-19 pandemic in compliance with
Since the inception of the COVID-19 pandemic, Management has seen a dramatic drop in available supply which has put substantial
