XpresSpa Group, Inc. (Nasdaq: XSPA), a travel health and wellness
company, today reported preliminary revenue for the fourth quarter
and full year ended December 31, 2021.
Doug Satzman, XpresSpa Group CEO, stated, “We
are extremely pleased with our record revenue results and sincerely
thank our entire team for our performance. For the fourth quarter,
we generated our highest ever quarterly revenue of at least $27
million, while for the full year, we generated our highest ever
annual revenue of at least $71 million.”
Mr. Satzman continued, “XpresCheck experienced
extremely robust testing volumes throughout the peak holiday travel
season despite staffing challenges related to the Omicron variant.
As we believe pre-travel COVID testing will remain mandatory before
boarding an airplane to many international destinations, we are
looking to expand XpresCheck to some existing and new airports in
2022 in order to capitalize on the ongoing and growing need for
this critical service.”
Mr. Satzman added, “In mid-December, we opened
our first Treat location in JFK Terminal 4 which is off to an
encouraging start. We will be following this up with Treat Phoenix
Sky Harbor, which is now expected to open during the spring, while
other additional locations are planned for later this year. We
envision Treat becoming a leader in the emerging category of travel
health and wellness by providing 24/7, on-demand access to
healthcare through our app, content and retail through treat.com,
and a new level of wellness services in airports.”
Business Update
XpresCheck® Wellness Centers
XpresCheck has entered into management services
agreements (“MSAs”) with Professional Corporations (“PCs”) that in
turn contract with physicians and other professional providers to
offer healthcare services. Under the terms of the MSAs, which may
be modified according to market conditions, XpresTest provides
office space, equipment, supplies, non-licensed staff, and
management services to support and facilitate the PC’s provision of
COVID-19, including a Polymerase Chain Reaction (PCR) test and a
rapid PCR test, and other medical diagnostic testing in return for
a management fee. There are currently 14 operating XpresCheck
locations in 12 airports.
During the fourth quarter of 2021, XpresCheck
initiated a $2 million, eight-week pilot program with the CDC in
collaboration with Concentric by Ginkgo. Under this program,
XpresCheck conducted biosurveillance monitoring at three major U.S.
airports (JFK International Airport, Newark Liberty International
Airport and San Francisco International Airport) aimed at
identifying existing and new SARS-CoV-2 variants. With the
emergence of the Omicron variant, this pilot transitioned into a
program targeting travelers arriving from additional countries and
expended to Hartsfield-Jackson Atlanta International Airport.
Revenue recognition for this program is based on certain milestones
specified in the contract and approximately 75% of the revenue was
recorded during the fourth quarter of 2021.
XpresSpa® Services
By the end of the fourth quarter of 2021, there
were 14 operating XpresSpa domestic locations. A majority of the
domestic XpresSpa locations are operating approximately eight hours
per day during the busiest hours (compared to up to 16 hours per
day pre-pandemic) thereby improving labor productivity. XpresSpa
also implemented a price increase in mid-October.
During the fourth quarter of 2021, we began
testing new touchless massage services and selling additional
retail products. We evaluate each airport on a month by month basis
as well as review continued learnings as the portfolio is
re-activated.
There are also six international locations
operating during the fourth quarter of 2021, including three
XpresSpa locations in Dubai International Airport in the United
Arab Emirates and three XpresSpa locations in Schiphol Amsterdam
Airport in the Netherlands.
Treat™: A New Travel Health and Wellness
Brand
Treat provides access to integrated care
services that can seamlessly fit into a health and wellness
lifestyle. Empowering travelers to take a health-first approach to
the journey ahead, Treat acts as a wellness concierge, providing
medical care and wellness services to consumers as they return to
travel.
Treat In-airport Wellness Centers offer services
such as anxiety care, emergency prescriptions, rapid PCR testing,
vitamin IV therapies, as well as private virtual wellness services
including fitness, yoga and guided meditation sessions. Treat
In-airport Wellness Centers include a highly curated assortment of
premium health and wellness travel items in their onsite retail
collection.
The first Treat In-Airport Wellness Center
launched at JFK International Airport Terminal 4 on December 16,
2021 and we are encouraged by the early results. Our second
location at Phoenix Sky Harbor International Airport is expected to
open in Spring 2022. We are also in negotiations for several
additional locations, including some XpresSpa conversions, at major
airports across the U.S. for 2022 and 2023.
The Treat website (www.treat.com) features
original content, access to resources about global COVID-19
requirements, and curated e-commerce. The Treat mobile app provides
access to on-demand virtual care to board-certified physicians,
including chat care and video care. The app also has a “travel
wallet” providing access to a person’s medical records,
vaccinations and test results. Eventually, we expect to expand the
app and benefits to include in-app premium wellness content
including meditations and workouts as well a Smart Health Card
online shopping and prescription discounts.
Over the long-term, we envision that digital
channels will provide growth opportunities beyond the airport
locations, which would be achieved through subscription-based
services that offer care and tools supporting travel health and
wellness. We also anticipate offering upstream content that can be
monetized through affiliate revenue as well as curated ecommerce
retail through www.treat.com.
Share Repurchase Program
During the fourth quarter of 2021, we continued
to execute on our share repurchase program. Management will
continue to exercise discretion in determining the conditions under
which shares may be purchased from time to time, if at all.
Preliminary Fourth Quarter and Full Year
2021 Revenue Results
Total preliminary revenue during the three
months ended December 31, 2021 was at least $27 million compared to
$0.3 million in the same period in 2020. Total preliminary revenue
during the twelve months ended December 31, 2021 was at least $71
million compared to $8.4 million in 2020.
Long-Term
Revenue Target of $500 Million by 2025
Our long-term revenue
target is $500 million by 2025 which was first introduced at the
H.C. Wainwright 23rd Annual Global Investment Conference in
September 2021.
ICR Conference
and H.C. Wainwright BioConnect Conference
Participation
We will be presenting and hosting virtual
meetings with institutional investors at the H.C. Wainwright
BioConnect Conference January 10th – 13th, 2022.
We will be presenting at the 24th Annual ICR
Conference on Tuesday, January 11th, 2022 at 11:00 a.m. Eastern
Time. The presentation will be available on our website
http://xpresspagroup.com. Visitors to the website should select the
“Investors” tab and navigate to the “Events” link to access the
webcast. We will be hosting virtual meetings with institutional
investors during this conference as well.
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a leading
global health and wellness holding company operating three distinct
brands: XpresCheck®, XpresSpa®, Treat™. XpresCheck is a leading
on-site airport provider of COVID-19 screening and testing with 14
locations in 12 domestic airports. XpresSpa is a leading airport
retailer of spa services and related health and wellness products,
with 43 locations in 21 airports globally. Treat is a travel health
and wellness brand that will be providing on-demand access to
healthcare through technology and personalized services.
To learn more about XpresSpa Group, visit:
www.XpresSpaGroup.com.To learn more about XpresCheck, visit:
www.XpresCheck.com.To learn more about XpresSpa, visit
www.XpresSpa.com.To learn more about Treat, visit:
www.Treat.com.
Twitter: @xprescheck and Instagram:
@realxprescheckTwitter: @XpresSpa and Instagram: @XpresSpaTwitter:
@Treat_Care and Instagram: @treat_care
Forward-Looking Statements
This press release may contain "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934.
These include statements preceded by, followed by or that otherwise
include the words "believes," "expects," "anticipates,"
"estimates," "projects," "intends," "should," "seeks," "future,"
"continue," or the negative of such terms, or other comparable
terminology. Forward-looking statements relating to expectations
about future results or events are based upon information available
to XpresSpa Group as of today's date and are not guarantees of the
future performance of the Company, and actual results may vary
materially from the results and expectations discussed. Additional
information concerning these and other risks is contained in
XpresSpa Group’s most recently filed Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and
other Securities and Exchange Commission filings. All subsequent
written and oral forward-looking statements concerning XpresSpa
Group, or other matters and attributable to XpresSpa Group or any
person acting on its behalf are expressly qualified in their
entirety by the cautionary statements above. XpresSpa Group does
not undertake any obligation to publicly update any of these
forward-looking statements to reflect events or circumstances that
may arise after the date hereof.
This preliminary unaudited financial information
for the quarter and year ended December 31, 2021 continued in this
press release is derived from the Company’s preliminary internal
financial reports and is subject to revision based on the
completion of our quarter-end and year-end accounting and financial
reporting processes necessary to finalize financial statements as
of and for the quarter and year ended December 31, 2021. There can
be no assurance that final fourth quarter and year-end results will
not differ materially from these estimated results when we report
the final results for the quarter and year.
Investor RelationsICRRaphael
Grossir@xpresspagroup.com(203) 682-8253
MediaJulie
FergusonJulie@jfprmedia.com(312) 385-0098
XpresSpa (NASDAQ:XSPA)
Historical Stock Chart
From Aug 2024 to Sep 2024
XpresSpa (NASDAQ:XSPA)
Historical Stock Chart
From Sep 2023 to Sep 2024