Nogin Announces Exit from Product Sales Business
Highly accretive outcomes that accelerate our transformation and align us with strong partners
Will exit 2023 as a pure-play CaaS business
TUSTIN, Calif., Oct. 10, 2023 (GLOBE NEWSWIRE) -- Nogin (Nasdaq: NOGN, NOGNW), a leading provider of innovative Commerce-as-a-Service (“CaaS”) technology and services, delivering advanced SaaS solutions that drive growth and simplify the D2C ecommerce experience, announced final agreements with various parties that complete the transition of Nogin exiting its product business. After this quarter, there will be no product sales reported from these businesses, which Nogin had previously indicated were targeted for transition. In addition, each of these relationships is now converted into a CaaS structure whereby Nogin contributes its ecommerce expertise while the partners we’ve allied ourselves with contribute their considerable product sourcing, design and inventory management expertise. These transactions will drive favorable impacts to our income statement and balance sheet and enable these customer relationships and businesses to grow substantially in the near term.
Jonathan Huberman, Nogin’s President, Chief Executive Officer and Chairman, said: “As we have consistently communicated, our product related business was not generating the financial results consistent with our profitability targets nor our business strategy. During our Q2 results call we noted two clients in this category, which, as of tis week, we’ve consummated a transition plan with various parties for each. Consequently, we are moving into the final quarter of the year with a business that is 100% focused on our CaaS offering, and we’re on track to report full year results that reflect material reductions in SG&A and other efficiencies.
“With the business now structured properly, we can accelerate our growth and profitability strategy with a business model that is consistent with our corporate objectives,” concluded Huberman.
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