Upexi, Inc. (NASDAQ:UPXI) Q2 2024 Earnings Call Transcript

Allan Marshall: Yes. we’re going to go — we’re going to continue, we’re going to go better from all aspects, right like Tytan is born out of — first starting, in DTC or — and then really evolved into brick and mortar. and now, we’re looking to bring those Disney products back to DTC. The margin there is great, the opportunity’s great. but our other brands have higher margins and our strictly at this point direct-to-consumer with great opportunity. We’ve seen, I’m not sure, I guess significant reinvestment and growth just in the first quarter. I think, VitaMedica’s, Amazon’s up 30%-40%, since we made those started to reinvest just at the beginning of the quarter. So, I think we’re just going to continue on all channels blending that margin, but still the bulk of our business is going to be direct-to-consumer with the much higher margins.

Aaron Grey: Okay. All right. great. Thank you very much, and I’ll go ahead and jump back in the queue.

Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.

Allan Marshall: All right. well, I want to thank everyone for joining the call and just summarize. The company’s in a very good position to increase the overall profitability due to several reasons, our consolidation of operations, the reduction of $2 million G&A. This will reduce our overall cost structure and not slow the growth of the brands or the growth of the profitability. Brand revenue should continue to be a bigger percentage of overall sales. The higher gross margin businesses will post — will push our gross margins even higher this year. And regardless of market conditions or external factors, myself and our team intend to reach those higher EBITDA and cash flow positive results in the next second several quarters. So, I want to thank everyone for joining our call and I hope everyone has a great evening.

Operator: Ladies and gentlemen, this does include today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.