Newegg's revenue increased 39.9% in the first half of the year

According to the financial report, the company's net sales increased by 39.9% to US$1.2069 billion from US$862.7 million in the same period of 2020; gross profit increased from US$124.6 million to US$166.9 million, a growth rate of 33.9%; net income increased by 14.0% to US$21.6 million, and net profit was US$18.9 million.

As of the close of the day, Newegg's stock price rose 11.18% to $21.18.

In addition, according to data disclosed by Newegg, the company had 4.2 million daily active users in the first half of the year, the customer repurchase rate reached 32.5%, and the average value of each order was US$359.

Newegg's CEO Anthony Chow noted, "Over the past two years, we have focused on innovation and growth-oriented initiatives to help Newegg succeed in the coming years. As a result, we have diversified our revenue streams and strengthened the company's business and operating structure. By optimizing and expanding our supplier relationships, we have enhanced our product offerings and covered more regions."

Anthony Chow added, "We optimized high-demand products and promoted high-margin services. We refined Newegg's product selection by establishing the Quarterly Strategic Partnership Execution Program (QSPEP) and sharing market intelligence data with suppliers, improving relationships with suppliers and helping them make strategic decisions to help them get the right products to the right customers at the right time. We also invested in new technologies to improve customer experience, order fulfillment, and delivery times."

“In addition, earlier this year, we opened a 43,000 square foot warehouse in the Shanghai Yangshan Free Trade Zone, making a significant investment in expanding our global infrastructure. The warehouse provides freight collection and fulfillment services for our marketplace suppliers and third-party logistics customers, and we deliver merchandise to North America via truck and air freight. As a result of these additional charges, our operating income and net income increased by 26.9% and 14.0%, respectively.”

Regarding third-party business, Newegg said: "Through the Global Seller Program, we have recruited high-quality Asia-Pacific sellers, especially sellers from China, to our platform, thereby greatly broadening our product range. Newegg is working hard to build a platform that charges suppliers competitive commissions, sometimes even the lowest commissions."

Newegg

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