After a heavy decline in the market yesterday, Amyris Inc (NASDAQ: AMRS) is starting to make a comeback. The stock is gaining more than 4% in the premarket after announcing a successful launch of a product on Amazon.com (NASDAQ: AMZN). Here’s what’s going on:
AMRS Stock Gains On Amazon.com Launch
In a press release issued early this morning, Amyris announced the launch of a new product on Amazon.com. In the release, the company said that the launch of Pipette on the world’s leading eCommerce platform has been successful. However, Amazon.com wasn’t the only site the product was launched on.
The company made Pipette available to the public at Pipettebaby.com, buybuyBABY.com, Amazon.com and Dermstore.com. AMRS said that early results proved to be very strong. Moreover, it has received significant positive feedback from its customers.
The company also said that by the end of the month, Pipette will be available across all brick-and-mortar buybuyBaby stores nationwide. By the end of November, the product is expected to be available at Walmart.com.
As a result of the strong launch, AMRS said that it expects Pipette to drive strong top-line sales performance for AMRs in Q4 and beyond. Importantly, 96% of consumers have rated the product 4 stars or better.
In the release, Amyris shared a couple of testimonials, including:
I’m happy I finally found the product that’s 100% safe for my daughter, clinically approved and clean. We loved it during our bath and we’ll come back and use it again.
We have used it every night since we got it. Not only does it leave his skin soft and smooth, it isn’t super-thick and greasy like Vaseline.
in a statement, John Melo, President and CEO at AMRS, had the following to offer:
Through the third quarter we have more than doubled product revenue over the same period in 2018. We are on track for about 300% product revenue growth in the fourth quarter over the same period last year. Our conservative approach in accounting for new product scale up costs where we mostly capture capex and non direct costs associated with scaling in our cost of goods sold has resulted in an inflated cost of goods year to date, however, our adjusted gross margin continues to be at the high end of our stated 55-65% gross margin range. We have continued our strong growth and gross margin performance beyond the second half of the year and encourage those interested professional writers and business analysts to prudently contact Amyris directly for information. We are happy to share and clarify public information.
We are delivering on our promise of doubling recurring revenue or better year on year, maintaining our gross margin between 55-65% and significantly reducing our EBITDA losses by as much as half. The strong financial commitment of our leading shareholders enables us to continue executing on our long-term strategy and maintaining our investment in our technology advantage and market leadership. We are managing our growth with strong margins while remaining focused on having all of our existing outstanding short-term debt, especially convertible debt, resolved by year end and certainly as soon as possible. As the leading synthetic biology company, we have a responsibility to make the world healthier.
Why Investors Are So Excited
Product launches are just about always exciting. After all, they open the door to new revenue streams. However, in this case, the launch is going well, leading to several reasons to be excited. Here’s how I see it:
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