Company Announces Better Than Expected Preliminary 2021 Revenues and Strategic Acquisition of HyperPointe

  • XpresSpa Group pre-announced 2021 revenues of more than $71 million, well above the one estimate of $64 million. This implies 4Q21 revenues of $27 million or more, higher than the seasonally strong 3Q21 results. These quarterly and annual results are an all-time high for the company, including pre-COVID-19 performance.
  • The bulk of the revenues came from XpresCheck and continue to demonstrate the sustained demand for COVID-19 testing services at airports, which validates the company’s plans to open additional XpresCheck locations in 2022.
  • These results illustrate the continued demand for testing, driven by a resumption of international travel, combined with the testing requirements issued by destination countries. Note that Asia remains mostly closed, or with burdensome quarantine requirements for international travelers. As the more risk-averse countries slowly re-open, we believe it is likely they will also require testing (Australia being a typical example), which should further fuel demand for XpresCheck testing services in 2022 and beyond.
  • XpresSpa Group also announced the acquisition of HyperPointe, a provider of digital healthcare and data analytics services, for $6.5 million in cash and shares, and with an additional potential $7.5 million in earn-out if certain operating metrics are met. We believe HyperPointe played an important role in helping XpresCheck secure the first CDC pilot program, and management believes it can also be key in helping XpresCheck win additional business with the CDC.
  • XpresSpa Group opened the first Treat location in December 2021 and announced a second location at Phoenix Sky Harbor Airport for this coming spring. We believe Treat is developing a compelling new category of airport offerings targeting a highly desirable demographic (affluent travelers); we like the deliberate and prudent way management is building up this business.
  • With operating margins in the 30% range at the current revenue run rate, the XpresCheck business should ensure that XpresSpa Group is solidly profitable and cash-flow positive, allowing the company to fund internal growth, consider further strategic acquisitions, and remain active with its stock buy-back program.

XpresSpa Group provides health and wellness services out of 24 US and six international airport locations. Its XpresSpa legacy business operated 43 spas in 21 airports prior to the COVID-19 pandemic. When the pandemic started, the spas had to be closed; the company pivoted and developed XpresCheck, a business offering rapid COVID-19 testing services with currently 14 locations in 12 airports, primarily targeting passengers bound for international destinations that require negative COVID tests for entry. XpresCheck has also secured a first contract with the Centers for Disease Control and Prevention (CDC) to conduct testing and biosurveillance for inbound international passengers. While the company has started to selectively reopen some of its XpresSpa locations, it is also developing Treat, a new multichannel health and wellness brand. It has already launched the brand’s website,, as well as the Treat app. The first Treat airport location opened in 4Q21 at JFK Terminal 4, and the second location will open in spring 2022 at Phoenix Sky Harbor Airport. Treat will expand on the spa and testing services offered by XpresSpa and XpresCheck and will have an extensive suite of health and wellness goods and services, including testing, vaccines, anxiety care, emergency prescriptions, vitamin IV therapies, as well as wellness offerings such as fitness, yoga, and guided meditation services.


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