By David Willey, Benzinga
Though Uber Technologies (NYSE: Uber) has just touted some impressive fourth-quarter earnings for 2022, the fact is that, like many companies, Uber’s story of growth has been long and often uncertain. Companies frequently struggle to drive revenue in their early years. That’s why JX Luxventure Limited (NASDAQ: JXJT) (“JX Luxventure”) is delighted to begin year three of its growth strategy, after revenue growth of 446% in 2021, and with the first six months of 2022 matching the full-year revenue of 2021.
For an early-stage company, revenue growth is key for its development. The average tech startup only sees around $1 to $3 million in yearly revenue within its first two to four years of operation. Uber reportedly only saw roughly $17 million in revenue in 2012, four years after its founding. Meta Platforms Inc. (NASDAQ: META) took in $382,000 and $9 million in revenue in its first and second years respectively. Meanwhile, JX Luxventure reached over $50 million in revenue in its first year of full operation.
The company took advantage of the landscape shift resulting from the COVID-19 pandemic to position itself in a growing market. Under the leadership of the company CEO Sun “Ice” Lei, it has seen two years of revenue growth. It’s confident it most likely will earn profit in this third year of its turnaround strategy, assuming market conditions stay similar.
A Successful Three-Year Turnaround Strategy?
The strategy began in late 2020, when the men's fashion wear company, KBS Fashion Group, acquired JX Luxventure. Though listed on NASDAQ, KBS Fashion Group had struggled during COVID and the market shutdowns. The acquisition of JX Luxventure was an attempt to explore a new market, and it quickly became clear it was a successful venture.
JX Luxventure is a technological software-as-a-service (SAAS) based product supplier. The acquisition of JX Luxventure provided a boost to the company’s revenue. In the first six months of 2021, the company’s revenue matched the entire year of 2020, with the majority of this revenue being driven by JX Luxventure.
The trend continued, and at the end of 2021, the company reported a 446% increase over its 2020 revenue, earning over $59 million. In the first year of its turnaround strategy, JX Luxventure had become the main driver of company revenue growth, even as many companies struggled due to China’s strict lockdowns.
JX Luxventure continued its achievements in the first half of 2022, during which time the company almost matched the revenue results of 2021. This prompted the company to sell its menswear business in October 2022. It had already changed its corporate name and its NASDAQ ticker in late 2021 from KBS Fashion Group to JX Luxventure Limited, and the company could now focus on its core SaaS-based product supplier business.
The company has seen positive developments since focusing its attention on its core SaaS business. It plans to incorporate a ChatGPT-type technology into its platform this year, incorporating artificial intelligence (AI) solutions as it continues its commitment to offering the best SaaS platform for its business partners.
Other companies in the SaaS space include BigCommerce Holdings (NASDAQ: BIGC) and Momentive Global Inc. (NASDAQ: MNTV).
Want to learn more about JX Luxventure? Check out its website.
This article originally appeared on Benzinga here.
Headquartered in Haikou, China, JX Luxventure Limited is a company delivering comprehensive products solutions to global elite families serviced by our business customers with business segments covering SAAS, tourism and cross-border merchandise.
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