Nogin Announces Exit from Product Sales 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.
- 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.
- 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.
- “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.