Hour Loop, Inc. reported a net revenue of $138.3 million for the fiscal year ending December 31, 2024, marking a 4.6% increase from $132.1 million in 2023. The company also achieved a net income of $657,447, a significant turnaround from a net loss of $2.4 million in the previous year. This improvement in profitability was attributed to a 10.2% increase in total orders, which rose to approximately 6.3 million in 2024, despite facing competitive pricing pressures that affected product prices.
The company's operational strategy has evolved, focusing on expanding its product offerings and enhancing its software capabilities to identify product gaps. As of December 31, 2024, Hour Loop managed over 100,000 stock-keeping units (SKUs) across various categories, including home décor, toys, and electronics. The company has primarily operated as a third-party seller on Amazon, generating approximately 99% of its revenue through this platform. In recent years, it has also expanded its presence on other marketplaces like Walmart, eBay, and Etsy, although these channels currently contribute negligible revenue.
In terms of operational metrics, Hour Loop's total cost of goods sold increased to $66.2 million in 2024 from $65.6 million in 2023, reflecting the higher volume of sales. Operating expenses also rose by 2.5% to $71.3 million, driven by increased platform fees associated with higher sales volumes. The company reported cash and cash equivalents of $2.1 million at the end of 2024, down from $2.5 million in 2023, indicating a need for careful cash management as it navigates growth and operational costs.
Looking ahead, Hour Loop plans to continue its growth trajectory by optimizing its procurement strategy and enhancing inventory management to mitigate overstock risks. The company aims to maintain profitability while potentially increasing its workforce from 151 employees in 2024 to approximately 180 in 2025. The management remains cautious about market conditions and competition, emphasizing a focus on profit maximization over aggressive revenue expansion in the coming years.