VANCOUVER, British Columbia—KITS Eyecare Ltd. (TSX: KITS), a leading vertically integrated eyecare provider, has reported its results for the first quarter ended March 31, 2024. Revenue increased by 26 percent to $34.8 million compared with $27.7 million in the first quarter of 2023. The increase was primarily attributable to strong repeat customer revenue in both contact lenses and eyeglasses, higher average order value and a growth in repeat eyeglass customers, according to the company. KITS also announced that its virtual try-on reached a milestone with more than 1.35 million glasses tried on.

"We started 2024 with another record quarter, achieving an annual revenue run-rate of nearly $140 million while achieving our sixth straight quarter of adjusted EBITDA positive growth," said Roger Hardy, co-founder and CEO of KITS. "We witnessed strength across our business as we saw all product categories and geographies outperforming the broader market, with more and more consumers choosing KITS. Additionally, we were thrilled to see more than 1.35 million glasses were tried on using our Virtual Try-On Tool (VTO), indicating customers' growing interest and engagement with our product in a virtual setting.”

He continued, “We also maintained strict cost discipline throughout the quarter as we saw our operating expenses as a percentage of revenue decline across the board. With uncertainty throughout the broader consumer environment, our offering continued to cut through the economic and competitor noise, with more and more customers choosing KITS. We are seeing our momentum build, and we remain confident in our strategy to systematically grow while generating positive adjusted EBITDA and cash flows."

Gross profit increased by 22 percent to $11.2 million compared with $9.1 million in the prior-year period, the announcement stated. Net income was $0.1 million compared with a net loss of $1.0 million in the prior-year period. EBITDA increased to $1.2 million compared with $(0.05) million in the prior-year period, while adjusted EBITDA improved by 100 percent to $0.6 million compared with $0.3 million in the prior-year period.

As of March 31, 2024, cash and cash equivalents totaled $18.4 million compared with $16.0 million on December 31, 2023, the company said.

For the second quarter of 2024, KITS management said it expects revenue to be in the range of $36 million to $38 million, with adjusted EBITDA as a percentage of revenue between 3 percent and 5 percent.