Edison Nation Revenues Rise 49% During the First Six Months of 2019 (NasdaqGS: EDNT)
MIAMI BEACH, Fla., August 28, 2019 (Newswire.com) - Inventors, say hello to your new best friend, Edison Nation. After combining forces with Xspand Products Lab in 2018, Edison Nation has grown into one of the most trusted marketplaces for inventors around the world by creating a platform where inventors can confidentially share ideas and shift the burdensome development and monetization processes to the Edison Nation team. And, that’s good news for inventors, who will be able to seize upon opportunities that can create financial value from recognizing market potentials.
From the investor side, Edison Nation is trading below its most recent highs despite posting a 36% increase in revenue and a more than 61% rise in gross profit. During the first half of 2019, Edison Nation achieved significant revenue growth of 49.7%, to $11.7 million, driven by the continued success of its IP and the scale of its consumer brands. The Edison Nation continues to aggressively source innovative ideas via its proprietary Edison Nation Innovation Platform, which selects the ‘best-of-the-best’ inventions utilizing proprietary algorithms, and brings them to market quickly. Edison Nation’s intellectual property, media, and consumer product launch engine will continue to drive growth in 2019 and beyond.
Inventors and innovators also have reasons to laud the value of Edison Nation, especially those that want to avoid the struggles faced when trying to bring a new product to market on their own. Further, the Edison Nation team also helps many inventors to realize that beyond their gift for concept development, they may ultimately find it difficult to maneuver the complicated landscape of turning prototypes into a market penetrating product. But, the good news is that Edison Nation has a plan for them.
Inventors Let Edison Nation Take The Burden
Since 2008, inventors have recognized that Edison Nation can bring layers of value to their projects. And, while some understand the process, new Edison Nation community members are embracing the learning curve that teaches them exactly how Edison Nation can leverage their more than 100 years of combined experience to bring value to their ideas. Further, Edison Nation believes that every great idea deserves a chance. Today, Edison Nation offers inventors the opportunity to unlock new opportunities by providing an abundance of resources that can take an idea and turn it into a successful and profitable product. Examples of these resources include:
Innovative online platform/Entrepreneur Partnership
“Everyday Edisons” Emmy and Telly award-winning PBS channel show
Edison’s Design Challenge
For existing products, Edison Nation provides resources and value by strengthening patent protection, developing new distribution channels, and leveraging its market stature through established agreements with many of the world’s top brands, companies, and manufacturers.
Edison Nation And Xspand Products Lab Combine For 100 Years Of Market Experience
The strategic combination of Xspand Products Lab and Edison Nation was transacted in 2018. At that time, Xspand was already a proven, full-service product development, manufacturing, and distribution company that engaged with clients to provide all-in-one solutions to bring ideas to market.
The newly combined Edison Nation team brings its expertise to an online marketplace designed to bring innovators and innovation-hungry companies together. Like Xspand, Edison Nation functions as an “innovation engine,” using its Live Product Search tool that enables an interactive product listing between industry and the inventor to help expedite the review and development process. The process is not overly complicated for inventor members, either. In general, ideas are analyzed and reviewed by the team at Edison Nation, with the best ideas and designs getting forwarded to industry partners for further review. Community generated ideas that are not selected will still become part of Edison Nation’s IP portfolio, adding extra value to the company’s asset base. And, to motivate community contributions, inventors are potentially compensated and incentivized to contribute to the Edison Nation platform, knowing that their chances for marketing success can get significantly heightened through the association.
Moreover, the Edison Nation platform is in growth mode. In fact, since its inception, Edison Nation has received more than 100,000 idea submissions and has generated product sales above $250 million at retail through the development and management of over 300 campaigns in their marketplace for clients. The client list is top-tier and includes some of the world’s largest manufacturers and retailers, including Amazon, Bed Bath and Beyond, Walmart, Rite Aid, Proctor&Gamble, and more.
Currently, the Edison Nation platform has a community of more than 200,000 innovators that confidentially submit ideas via the company’s online platform. From this community, Edison Nation reviews and selects the most suitable projects for development, determined by the intellectual property value as well as by the practicality of the idea. From this vast community, Edison Nation generates revenue of between $25 - $100 per submission that is used to cover program fees and cost related to review. Edison Nation also makes its open innovation platform available to its members, which enables inventors from around the world to submit ideas for potential consumer products.
The robust platform is attracting attention. And, this year, in particular, has been strong for the company, marked by significant operational highlights.
Notable 2019 Operational Highlights
Launched exclusive new products for its theme park and entertainment customers, including Disney Parks and Resorts and Universal Studios including; Avatar Light Up Wood Sprite and Star Wars Baton and Shield Set for Disney Parks and Resorts; A Monsters Inc. interactive flashlight for Tokyo Disney; and a Jimmy Fallon microphone for Universal Resorts.
Licensed Ezy Dose Medi-Spout pill assist cap to Apothecary Products, a global leader in consumer wellness products. It is the second product licensed by Apothecary Products from Edison Nation’s innovator community in what is an enhanced effort to license Edison community ideas to established brand partners.
Edison’s Innovation Platform sources product ideas from an organically grown community of 200,000+. Coming First Quarter of 2020, a mobile application will serve to facilitate further platform engagement.
Return of Emmy award-winning TV show, “Everyday Edisons” with a February 11, 2020 premier – Thomas Edison’s birthday - on a leading SVOD. This show is an inspirational reality TV series produced under license by Edison Nation, which chronicles the stories of first-time inventors as they launch their unique products into the marketplace in conjunction with the Edison Nation Online Innovation Platform. “Everyday Edisons” is produced by six-time Emmy Award-winning producer Michael Cable.
Developed the Edison Academy, inventor centric master classes, teaching the fundamentals of product development and inventing. The Academy serves as a resource to provide ongoing value to the organically grown Edison community of 200,000+, while captivating prospective inventors previously disengaged from Edison Nation. This initiative creates revenue opportunities in the form of recurring monthly and annual subscription fees.
Expanded their Online Innovation Platform with the “Edison’s Design Challenge” that will encourage members of the innovation community to contribute to the design and innovation of products already in Edison Nation’s product launch pipeline.
Expanded the Edison Online Innovation Platform with its Entrepreneur Partnership. The Entrepreneur Partnership is an opportunity for brands to further leverage Edison Nation’s inventor community and proprietary range of services to launch new products or scale additional product line.
A Strategy For Growth Is Set To Deliver Results
More than just products and idea cultivation, Edison Nation has a detailed growth strategy to deliver intended results. The company recently announced the return of its Emmy and Telly award-winning show “Everyday Edisons,” a show that features inventors that are trying to launch inventions into the marketplace. The company is also planning to launch its mobile app version of the Idea Submission Platform during the first quarter of 2020.
To develop product sales opportunities, Edison Nation is focused on launching at least six products per quarter. To complement the product launches, the company is also in the market to purchase up to three new brands per year, will integrate efficiencies for post-merger and brand acquisitions, and is already building out the economy of scale models from its increased attention to product launches.
In addition to the planned product launches, Edison Nation can leverage its cloud-based platform to expertly navigate Big Data and make efficient use of Google and Amazon advertising services to target new products to the right market. Further, Edison Nation and Xspand have the combined experience through their years of industry presence to benefit from a robust platform that differentiates their service from the competition.
Edison Nation Leads The Pack In A Hot Inventors Market
For those keeping track, the new products market has been growing. Everything from new watch designs to expensive exercise equipment all have one thing in common...they need a plan to achieve success. And, that places Edison Nation in the perfect position to take advantage of a dynamic market that is embracing change.
The Edison Nation team brings a win-win proposition where a product and business development relationship can deliver enormous value to both the inventor and to Edison Nation. And, as noted above, Edison Nation makes it simple by enabling its “Live Product Search” to provide an interactive product listing between industry and the inventor. This, in turn, can expedite the review and development processes.
At the end of the day, Edison Nation has the right tools to locate, capitalize upon, and quickly optimize real-world opportunities, which may become the difference between product success and failure. Edison Nation also has the resources and the expertise to patent, develop, and market innovative and market-changing products, which may position Edison Nation, and its growing community of members, to benefit from the rewards that expertise can bring.
Dolphin Analytics, LLC
Source: Edison Nation