Software Acquisition Group Inc. III (NASDAQ:SWAG) Q4 2023 Earnings Call Transcript March 28, 2024
Software Acquisition Group Inc. III isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings, and welcome to the Stran & Company Fiscal 2023 Year-end Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Alexandra Schilt, Vice President of Crescendo Communications. Ma’am, the floor is yours.
Alexandra Schilt: Good morning, and thank you for joining Stran & Company’s 2023 year-end financial results and business update conference call. On the call with us today are Andy Shape, Chief Executive Officer; and David Browner, Chief Financial Officer. The company issued a press release today, March 28, 2024, containing its 2023 fourth quarter and year-end financial results, which is also posted on the company’s website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. The company’s management will now provide prepared remarks reviewing the financial and operational results for the 3 and 12 months ended December 31, 2023.
Before we get started, we would like to remind everyone that during this conference call, we may make forward-looking statements regarding timing and financial impact of Stran’s ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Stran’s control. With that, I will now turn the call over to Andy Shape, Chief Executive Officer. Please go ahead, Andy.
Andy Shape: Thank you, Ale, and thanks to everyone for joining us today as we discuss the meaningful progress and milestones made throughout 2023. First, I’m proud to report that we generated a record sales of approximately $75.9 million for 2023 or 28.7% increase over the prior year. Additionally, our gross profit increased 50.2% to approximately $24.9 million, with our gross profit margin increasing to 32.8% compared to 28.1% for 2022. Most notably, we achieved profitability for 2023. As I previously mentioned, Stran has historically been profitable, and while we did not — we did report a loss for last year, as we integrated a number of acquisitions, we knew these acquisitions will be highly accretive and beneficial for our shareholders.
We are now at an important inflection point within the company and are confident that we can sustain long-term profitability as a result of the successful execution of strategic growth initiatives implemented throughout the past few years. The improvement in operations even more visible when you look at our fourth quarter results. While revenue increased by 27.5% to a record approximately $23.3 million for the fourth quarter, even more impressive, our gross profit increased 63.5% to approximately $8.7 million, and our gross margin increased 37 — to 37.4% compared to 29.2% for the same period last year. You can get a really good picture of the operating leverage we’re starting to gain when you look at our fourth quarter operating income which increased 156% to approximately $1.1 million versus $421,000 for the same period last year.
See also Top 20 Textile Importing Countries in 2024 and 20 Countries with Highest GDP per Capita by 2024.
To continue reading the Q&A session, please click here.