MGO Global (NASDAQ: MGOL) stock skyrocketed in intraday trading Tuesday after the Messi Store operator reported a substantial year-over-year increase in Q1 revenue.
MGO Global (MGOL) reported a staggering 1385% rise in revenue, soaring to $670,264 compared to $45,147 in the corresponding quarter last year. This surge is attributed primarily to the launch timing of the company’s Stand Flagpole line of products, which commenced in mid-March 2023.
Despite the impressive revenue growth, the Messi Store operator disclosed a loss of 1 cent per share, albeit an improvement from losses of 8 cents per share reported in the same quarter last year. The company also reported an operating loss of $1.86 million for the quarter, significantly wider than the $692,506 loss reported in Q1 2023.
Maximiliano Ojeda, CEO of MGO Global, expressed optimism about the company’s performance, particularly highlighting the robust revenue growth in the Stand Flagpole business. He also underscored the financial benefits resulting from the assignment of the Messi Brand to Centric Brands, which injected $2 million in cash and eliminated minimum royalty payments to LMM amounting to €1,500,000 in 2024.
CEO of MGO Global further outlined MGO’s focus on driving sustainable, long-term growth for its Stand Flagpoles business while prioritizing efficiencies in day-to-day operations. He said,
“In the first quarter, we took aggressive actions to simplify our cost structure, reduce our headcount, and implement a more sustainable business model – all of which we believe will help position MGO to achieve positive cash flow in the quarters ahead.”
MGO Global (NASDAQ: MGOL) Stock Reaction
The market responded enthusiastically to MGO Global’s performance, with MGOL stock surging by a remarkable 443.71% on Tuesday, closing at $1.25. This surge represented a 467.15% increase for the week. Trading activity also saw a notable uptick, with 337,626,624 shares changing hands, compared to the average daily volume of 5.59 million.
MGO Global MGOL MGOL shares MGOL stock MGOL stock news NASDAQ: MGOL
