COMPANY SPOTLIGHTMar. 16, 2023 SPONSORED CONTENT
This Quietly Trading NASDAQ Company has Been Exploding Since 2023 Began as eCommerce Stages a Major Comeback...

There's a Good Reason why Insiders are Buying Shares!

Amazon, Walmart, Twitter, Microsoft, Netflix, Roku... these are just some of the many big names that are laying off employees. While corporate and tech America let go of thousands upon thousands of workers, Upexi, Inc. (NASDAQ: UPXI) is not only growing but looking to ADD employees.

This multi-faceted brand owner with established brands in the health, wellness, pet, beauty, and other growing markets, has seen its revenue climb exponentially even in a down economy. Imagine what could be in store when the economy turns around.

(NASDAQ: UPXI) may be the smartest choice to have on your radar as the company zooms in on recession-proof arenas and continues its aggressive acquisition spree!





It's no secret that 2022 was nothing short of a disaster for e-commerce stocks. Growth in the sector was nearly grounded to a halt due to macroeconomic headwinds and tough comparisons to the pandemic boom.

Since the high inflation numbers first appeared in early 2021 and supply chain costs skyrocketed, many e-commerce companies saw their demand drop and have traded at much lower valuations.


Despite a turbulent time for eCommerce on Wall Street, UPXI has still been seeing record revenues and announcing a slew of positive developments!

For a relatively young company Upexi has been extremely profitable and could be trading at a premium right now. Privately held aggregators such as Thrasio and Perch have seen tremendous success with valuations of $7.5B and around $1B, respectively.

UPXI with a market cap at under $100M has the potential to see blue-sky territory growth as a PUBLICLY TRADED company!

10 Reasons to Have UPXI on Your Watchlist:

  • Strategic relationships with Microsoft and Lenovo and distribution with retail giants Walmart and Amazon.
  • Record Revenues with the last quarter witnessing a dramatic 444% YOY increase and moving from an adjusted EBITDA loss to positive adjusted EBITDA.
  • From 2020 to 2023 the company has seen a 92% CAGR.
  • Eliminated outstanding balance of $15 million senior secured debt.
  • Fiscal 2022 revenue was $44.6M and now a whopping $100M in revenues is projected for 2023.
  • Heavy insider ownership at over 43% represents remarkable optimism on the company's future growth.
  • A CEO that brings a lot to the table. Allan Marshall founded Segmentz, Inc. in 2000 and served as CEO, successfully acquiring five distinct logistic companies, raising more than $25M of capital, and creating the infrastructure and business foundation that is now XPO Logistics Inc. with revenues in excess of $17 billion.
  • A diverse business mix of non-discretionary brands in health, wellness, pet, toys, and liquidation in wholesale. The company also focuses on recession proof categories.
  • Revenue growth in the company's last quarter was predominantly driven by acquisitions as well as strong year-end sales in many of the company's brands including; E-core, Tytan Tiles, Vitamedica, and Cygnet Online, as well as strong sales from their pet product business, Lucky Tail.
  • The company's children's toy brand Tytan Tiles only recently launched an exciting, branded Amazon storefront and got into over 2,000 Walmart storefronts. The brand has officially outpaced their sales projections, almost doubling the forecasted order since the brand hit shelves in 2,200 stores.

UPXI is capitalizing on the convenience economy of online shopping and building a portfolio of promising brands that will help it move towards is $100M revenue goal in 2023!



Greetings Investors,


If the pandemic did anything positive, it would help e-Commerce explode and generate a shift in consumer habits. Consumers largely shifted their purchasing habits from in-person to online ordering.


More people began working from home and avoiding indoor venues, including shopping malls and restaurants. Because of these consumer behavior changes; e-commerce has continued to grow and many brands have been pivoting their business strategies to remain competitive. 


E-Commerce sales were $870 billion in the US in 2021, a 14.2% increase over 2020 and a 50.5% increase over 2019. 

Even though the e-Commerce arena was hit negatively on Wall Street, it doesn't take away from how the industry is still growing. Total e-commerce sales for 2022 were estimated at $1,034.1 billion, an increase of 7.7 percent from 2021!

While Wall Street companies may have taken a blow last year, it certainly doesn't mean e-Commerce was dead. 


For the fourth quarter, sales hit a record high of $299.12B according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures.


And according to the Department of Commerce, e-commerce sales in the United States broke the $1 trillion threshold for the first time and totaled $1.02 trillion in the past 12 months last November. This comes despite soaring commodity prices and inflation that had been hampering sales.

And before 2022 came to an end, Wells Fargo analyst Brian Fitzgerald issued a note stating that he saw e-commerce growth starting to accelerate and that sales trends in e-commerce and brick-and-mortar stores would normalize.

The analyst said he saw growth in e-commerce and brick-and-mortar sales reverting to pre-COVID levels. For much of the last decade, e-commerce sales nationally grew by about 15%, according to the Census Bureau. The lower valuations that many eCommerce stocks have endured may represent tremendous opportunities as the tide looks to be finally turning.

The U.S. is still in its early innings for digital disruption which means UPXI is positioned to see tremendous growth as e-commerce sales continue to accelerate!

Company Overview




Upexi is a multi-faceted brand owner with established brands in the health, wellness, pet, beauty, and other growing markets. The company operates in emerging industries with high growth trends and looks to drive organic growth of its current brands.

The company accelerates Amazon and eCommerce businesses by focusing on consumer data and logistical expertise to drive its growth and reduce its costs across a variety of brands. By focusing on distribution and supply chain efficiencies, the company aims to improve profit margins of acquired brands and those that it launches from scratch.

UPXI's acquisitions are focused on profitable companies that have substantial consumer databases that allow the company to cross-sell existing products offered by its various brands.



The company's in-house SaaS advertising technology from Interactive Offers allows it to lower advertising costs while reaching more consumers and acquiring data. This is a major advantage considering that inflation has not only hit retail and grocery stores, but has severely impacted the digital marketing space. 

"Instagram's CPM (cost per 1,000 impressions) has gone up by 39% in the last year, and Facebook's CPM has gone up by $5 as well to reach $16 from $11 last year. Google has faced a less severe increase, but its CPM has become 12% more expensive as well..." Digital Information World

Upexi has, and continues, to build big-box retailer and vendor relationships through acquisitions of promising resellers and liquidators. These acquisitions have helped lay the foundation for increased wholesale opportunities and eCommerce accounts. They have also helped expand distribution centers throughout the continental US to California, Nevada, Massachusetts, and Florida, with planned expansion into Texas, Tennessee, and more, to create an in-house 3PL service that is used for the company's brands and its partners.

Company Highlights:



Brand owner and aggregator for DTC, Amazon and all digital platforms for sales.
Build, buy & scale profitable, data-driven DTC consumer brands in multiple high growth industry verticals.
Leverage platform, including ad-tech and data, to facilitate improved operations, product offerings, and advertising to quickly scale revenue and maximize margins.
Acquire brands with rich consumer data and with an already-established customer database.
Focus on customer LTV and online purchase behavior across industries using competitive CPA advertising.
Rely on overlapping industries to cross-sell current and new customers.


Growth Through Acquisition



Upexi is focused on high growth, recession resistant companies with rich consumer data. The company's differentiated strategy has several proven advantages:



Post Scaling Acquisition Strategy





Acquisition Criteria & Process



● Streamlined deal process (we aim for 30 days or less to agree on terms)
● Seek to retain management for continued upside
● Target brand acquisitions with an established customer database for cross marketing opportunities
● Acquisitions with multiples that drive growth at sensible costs
● Rely on overlapping industries to cross-sell current and new customers
● In-house brand launches to drive growth with higher margins

Interactive Offers – Ad Tech Division



A Strategic Acquisition into SaaS

The company's programmatic advertising with its SaaS platform has served the FinTech space with great success over the last several years. The SaaS platform automatically allows for programmatic ad placement on any partners' sites from a simple dashboard.

SAAS Technology in the Adtech vertical will allow Upexi to boost the scale and growth of any brand launched or purchased in the future.

Interactive Offers' business grows through access to UPXI's clients who need advertising partners and a full-service SaaS platform.

It was at the end of 2022 that Interactive Offers filed a patent for its single click-to-optin technology that has fueled growth and partnerships with large publishers.



The competitive landscape and higher advertising costs have forced companies to lower budgets and/or try and find new opportunities. Interactive Offers' unique technology adds value for companies by changing the way advertisers pay for leads. 



Programmatic advertising is set for an evolution and will retain its role as an essential digital marketing tool. US advertisers programmatic ad spend amounted to $106 billion in 2021, a 41% increase year on year, with eMarketer forecasting that this will rise to $123.2 billion this year.

With this new single click-to-optin technology, advertisers will no longer be paying per click or per impression but will be bidding on a verified lead that has opted in to receive promotions and emails for each advertiser(s). 


UPXI CEO Allan Marshall stated, "The response from advertisers and publishers has been positive. This new technology solves a need for us and others. It has been a revenue driver for Interactive Offers and we're now seeing it benefit our portfolio of consumer brands."

Interactive Offers has already partnered with Finimize, Benzinga, StreetAuthority, OilPrice.com, InvestingDaily, Maropost, and more who are benefiting from this technology.

The Market




With a diverse business mix of non-discretionary brands in health, wellness, pet, toys, and liquidation in wholesale, Upexi has a massive market. 



The closing of the company's acquisition of E-Core, Inc. and its subsidiaries; Tytan Products and New England Technology, Inc., was a tremendously strategic move to get into the children's toy space.



With over $40 million in trailing twelve-month sales, E-Core provides Upexi with an entrance into the toy category as well as national retail distribution for owned and non-owned branded products. Tytan has grown 100% over the past two years, with major retail distribution through some of the largest retailers in America. 



The global toys market is projected to grow from $141.08 billion in 2021 to $230.64 billion by 2028 at a CAGR of 7.30% in the forecast period, 2021-2028. Tytan is a children's toy brand and maker of popular magnetic tiles and building blocks and New England Technology is a national distributor for branded consumer products.


The Tytan Tiles line of STEM toys has seen such strong demand since its entrance into Walmart stores that the retailer placed an additional order, almost doubling its initial forecast for the first half of 2023, and will increase rollout of the brand to over 3,900 stores throughout the second half of 2023!

CEO Allan Marshall remarked, "The initial launch has surpassed all Company forecasts, resulting in additional orders to keep up with demand. We are committed to the category and have already committed to up to four new product launches in 2023/2024. With the start of Amazon's rollout and the current success in stores and online, Tytan Tiles is expected to exceed our internal sales forecasts for 2023."


The acquisition of UPXI's International pet care brand, LuckyTail, Inc. was another strategic move as Lucky Tail has a strong presence on Amazon and its eCommerce store, offering grooming and nutritional products. Products are also available on leading pet care website Chewy.com. 



According to Fortune Business insights, the global pet care market size was USD 207.90 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with pet care products witnessing a positive demand shock across all regions amid the pandemic.

Amazon Seller M&A Market Active Despite Aggregator Struggles



Despite some Amazon aggregators pausing buying, such as Thrasio and Perch, who likely made few or no acquisitions in 2022, other aggregates have increased their pipeline such as UPXI.

Amazon is the world's leading e-Commerce website showing no signs of losing its position.

Amazon accounts for 37.8% of e-commerce sales, the highest market share of all e-commerce companies

Amazon is a household name, just like Kleenex and ChapStick. When customers have a need for a specific product, they often hop on Amazon to search its options and make a purchase. This international e-commerce company and online marketplace leads the way in e-commerce sales so it only makes sense for UPXI to utilize it.
 


Experienced Management





Allan Marshall - Chief Executive Officer
  • 30+ years of M&A focused experience
  • Founder of XPO Logistics, Transportation Services, Inc., and Segmentz, Inc.
Andrew Norstrud - Chief Financial Officer
  • Experienced consultant, focused on integrating strategic acquisitions and structure implementation for public companies
Gene Salkind, M.D. - Board of Directors
  • Chairman of Compensation Committee
  • Practicing Neurosurgeon, Intuitive Surgical Pharmacyclics
Thomas Williams - Board of Directors
  • 35+ years of experience, specialized in securitization mechanisms of illiquid assets
Lawrence H Dugan - Board of Directors
  • Chairman of Audit Committee
  • 25+ years of accounting experience
The potential in UPXI's growth lies heavily at the hands of seasoned and experienced CEO Allan Marshall whose reputation is incredibly impressive!

Before he became CEO and Director of Upexi, Allan Marshall began his career in the transportation and logistics industry. He founded Segmentz, Inc. in November of 2000 and served as the Chief Executive Officer, successfully acquiring five distinct logistic companies, raising more than $25M of capital, and creating the infrastructure and business foundation that is now XPO Logistics Inc. with revenues in excess of $17 billion.

Prior to Segments, Mr. Marshall founded the U.S. Transportation Services, Inc. in 1995, whose primary focus was third-party logistics. And it was because of his innovative leadership and drive to help UST achieve its full potential that it sold to Professional Transportation Group, Inc. in January 2000.

Early in his career, Mr. Marshall served as Vice President of U.S. Traffic Ltd, a Canadian company. He founded their United States logistics division and had previously founded a successful driver leasing company in Toronto, Ontario, Canada.

Over the course of his long and storied career as a leader for companies all over the world, Mr. Marshall has proven himself to be a force to be reckoned with. His incredible growth story with XPO Logistics, Inc. shows the potential for any company with his name attached to it.

Under his guidance and expertise, UPXI is already growing year after year, with impressive multi-millions in revenue!



The Bottom Line



The e-commerce opportunity is hard to dismiss and Upexi, Inc. (NASDAQ: UPXI) is a quietly trading company is raking in multi-millions....

As a multifaceted brand owner, UPXI has established brands in the health, wellness, pet, beauty, and other growing markets and it may be just a matter of time before Wall Street fully uncovers the company.

It was in 2022 that the company executed a successful business model to acquire leading, profitable, data-rich brands. Revenue, gross profit margin, and adjusted EBITDA have increased YOY as a result.

This company trading for just a few dollars is now well positioned through many acquisitions. With a strong cash flow, and a CEO who has previously helped another company reach $17B in revenues, there could be substantial growth ahead as UPXI delivers blowout quarters.

While recession and inflation concern plague Wall Street, savvy investors look for opportunity and this company doesn't seem phased by economic uncertainty!

Start your own research to see how there could be astronomical growth ahead for UPXI who expects a massive $100 million in revenues this year!





COMPANY OVERVIEW

UPEXI INC
NASDAQ: UPXI


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Feb. 14, 2022
Upexi Reports Record Revenue of $27.1 Million for Fiscal 2023 Second Quarter, an Increase of 444% Year-Over-Year


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