Fireside Chat with CFO Kevin Vassily - iPower Making Progress on Several Fronts
On February 28, WTR held a fireside chat with CFO Kevin Vassily. This report contains a transcript of the conversation, which can be accessed on-demand in our full report. The TikTok Shop is likely to become a meaningful channel for iPower given the comparable size of the platform in other geographies and the substantial level of investments TikTok is directing toward this initiative in the US. iPower is looking at first-year revenue from the TikTok Shop of 2-5% of total revenue. Longer term, this channel could account for 20% of total revenue, and possibly more. iPower’s kitchen-related products and pet products are currently the best-performing products on the TikTok channel. They are the product categories in iPower’s lineup that best fit the social aspect of the TikTok Shop. The company is also currently looking at cosmetics and nutraceuticals as potential new categories due to their potential appeal on the TikTok Shop. iPower has signed a regional food and beverage brand company to a SuperSuite contract, with the specific goal of helping this client on the TikTok Shop. iPower is also in discussions with several larger, national food and beverage brands to help them on the TikTok Shop, but these discussions are complex due to the size of the potential clients and there is no guarantee that the discussions will be successful and lead to contracts. About 75% of the marketing on the TikTok Shop is user-generated, primarily through influencers with whom iPower has relations through TikTok’s affiliates program. In-house marketing makes up the balance of the marketing activity on the TikTok Shop. iPower is focused on improving gross and operating margins to return to EBITDA profitability. The company has completed a recovery from excess inventory levels caused by the 2021-2022 supply chain disruptions, with inventory at the end of the December 2023 quarter in the $15 million range, compared with a high of $30 million in 2022. These leaner inventories should help with pricing and allow the company to avoid incremental shipping and warehousing expenses. The company also believes it can target improvements in manufacturing costs and gain scale advantages in shipping costs. Adding to that some ability to modestly improve selling prices and the fact that the company’s infrastructure (systems, people, and warehousing capacity) could handle as much as five times the current sales volume, iPower believes future sales growth should translate into steady margin improvements.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.