Technology

111, Inc. Announces Third Quarter 2024 Unaudited Financial Results

Published

2 years ago

November 27, 2024

Maintained Operational Profitability for the Third Consecutive QuarterOperating Expenses as a Percentage of Revenues Decreased 160 Basis Points YoYHeld Positive Operating Cash Flow for Three Consecutive Quarters

SHANGHAI, Nov. 27, 2024 /PRNewswire/ — 111, Inc. (“111” or the “Company”) (NASDAQ: YI), a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

Net revenues were RMB3.6 billion (US$513.1 million), remaining relatively flat compared to the same quarter last year.Gross segment profit (1) was RMB 210.6 million (US$ 30.0 million) increased by 10.5% year-over-year.Total operating expenses were RMB208.2 million (US$29.7 million), an improvement of 23.2% compared to RMB271.0 million in the same quarter of last year. As a percentage of net revenues, total operating expenses decreased by 160 basis points to 5.8% from 7.4% in the same quarter of last year, demonstrating continuous improvement in the Company’s operational efficiency.Income from operations was RMB2.4 million (US$0.3 million), compared to loss from operations of RMB80.4 million in the same quarter of last year. 111 maintained operational profitability for the third consecutive quarter.Non-GAAP income from operations (2) was RMB7.1 million (US$1.0 million), compared to Non-GAAP loss from operations of RMB54.0 million in the same quarter of last year.Net cash from operating activities was RMB109.9 million (US$15.7 million). The Company has achieved positive operating cash flow for three consecutive quarters.

(1) Gross segment profit represents net revenues less cost of goods sold.

(2) Non-GAAP income from operations represents income from operations excluding share-based compensation expenses.

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, “While the macroeconomic environment in China continues to present challenges, we are proud of our ability to maintain operational profitability for the third consecutive quarter. This achievement is a testament to the strength of our business model as a one-stop shopping platform that offers the most comprehensive selection of pharmaceutical products at competitive prices. It also highlights our commitment to operational efficiency across the organization. As a result, income from operations in Q3 reached RMB2.4 million, a significant improvement from an operational loss of RMB80.4 million in the prior year.”

Mr. Liu added, “We gained greater operational efficiency through diligent cost management, ongoing infrastructure investments, and effective staffing arrangements, all of which has enabled us to navigate an unfavorable consumer spending environment while delivering solid performance results. Operating expenses were 5.8% of revenues, a reduction of 160 basis points compared to the previous year, while non-GAAP operating expenses as a percentage of revenues decreased by 100 basis points to 5.7%. We aim to lead the pharmaceutical e-commerce sector in efficiency and sharpen our competitive advantages. As we scale and optimize operations, we expect further cost savings, which will be reinvested into growth initiatives, including technological advancements, market expansion, and client base growth, driving future profitability.”

“We are strengthening our core competitiveness in digitalization through advancements across multiple areas, laying a strong foundation for an agile, highly efficient, and customer-centric business that can swiftly adapt to evolving industry needs. Additionally, we’ve bolstered our supply chain with an expanded transshipment network and new fulfillment centers, further enhancing our service capabilities.”

“Despite challenges, we are still confident in the long-term opportunities ahead. Our investments in AI and digital technologies are not only providing industry-leading efficiency and reshaping the healthcare value chain, but also positioning us to capture significant shifts in the pharmaceutical industry—particularly the unstoppable trend of digital transformation, the growing demand for out-of-hospital drug distribution, and the expansion of the silver economy. By deepening our partnerships with pharmaceutical companies, expanding our fulfillment network, refining our digital platforms, and prioritizing new growth engines, we are well-positioned to engage more industry stakeholders, meet the needs of a broad customer base, and generate sustained growth.”

Third Quarter 2024 Financial Results

Net revenues were RMB3.6 billion (US$513.1 million), representing a decrease of 1.8% from RMB3.7 billion in the same quarter of last year.

(In thousands RMB)

For the three months ended September 30,

2023

2024

YoY

B2B Net Revenue

Product

3,556,749

3,514,298

-1.2 %

Service

20,671

21,731

5.1 %

Sub-Total

3,577,420

3,536,029

-1.2 %

Cost of Products Sold(3)

3,406,320

3,340,998

-1.9 %

Segment Profit

171,100

195,031

14.0 %

Segment Profit %

4.8 %

5.5 %

(In thousands RMB)

For the three months ended September 30,

2023

2024

YoY

B2C Net Revenue

Product

82,538

61,031

-26.1 %

Service

5,287

3,615

-31.6 %

Sub-Total

87,825

64,646

-26.4 %

Cost of Products Sold

68,301

49,061

-28.2 %

Segment Profit

19,524

15,585

-20.2 %

Segment Profit %

22.2 %

24.1 %

(3) For segment reporting purposes, purchase rebates are allocated to the B2B segment and B2C segments primarily based on the amount of cost of products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded in the fulfillment expenses. Cost of service revenue is recorded in the operating expense.

Operating costs and expenses were RMB3.6 billion (US$512.8 million), representing a decrease of 3.9% from RMB3.7 billion in the same quarter of last year.

Cost of products sold was RMB3.4 billion (US$483.1 million), representing a decrease of 2.4% from RMB3.5 billion in the same quarter of last year.Fulfillment expenses were RMB100.0 million (US$14.2 million), representing a decrease of 1.6% from RMB101.6 million in the same quarter of last year. Fulfillment expenses accounted for 2.8% of net revenues this quarter, maintaining the same as last year.Selling and marketing expenses were RMB77.0 million (US$11.0 million), representing a decrease of 19.4% from RMB95.5 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB1.6 million for the quarter and RMB5.1 million for the same quarter last year, respectively, selling and marketing expenses as a percentage of net revenues accounted for 2.1% in the quarter as compared to 2.5% in the same quarter of last year.General and administrative expenses were RMB14.4 million (US$2.0 million), representing a decrease of 68.7% from RMB45.8 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB2.3 million for the quarter and RMB16.8 million for the same quarter last year, respectively, general and administrative expenses as a percentage of net revenues accounted for 0.3% in the quarter as compared to 0.8% in the same quarter of last year.Technology expenses were RMB17.5 million (US$2.5 million), representing a decrease of 30.9% from RMB25.4 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB0.9 million for the quarter and RMB4.5 million for the same quarter last year, respectively, technology expenses as a percentage of net revenues accounted for 0.5% in the quarter as compared to 0.6% in the same quarter of last year.

Income from operations was RMB2.4 million (US$0.3 million), compared to loss from operations of RMB80.4 million in the same quarter of last year.

Non-GAAP income from operations was RMB7.1 million (US$1.0 million), compared to non-GAAP loss from operations of RMB54.0 million in the same quarter of last year.

Net loss was RMB3.5 million (US$0.5 million), representing an improvement of 96% from RMB83.5 million in the same quarter of last year. As a percentage of net revenues, net loss amounted to 0.1% in the quarter, down from 2.3% in the same quarter of last year.

Non-GAAP net income (4) was RMB1.3 million (US$0.2 million), compared to non-GAAP net loss of RMB57.1 million in the same quarter of last year.

Net loss attributable to ordinary shareholders was RMB17.1 million (US$2.4 million), representing an improvement of 82% from RMB93.3 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 0.5% in the quarter, down from 2.5% in the same quarter of last year.

Non-GAAP net loss attributable to ordinary shareholders (5) was RMB12.4 million (US$1.8 million), representing an improvement of 82% from RMB66.9 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders, accounted for 0.3% in the quarter, down from 1.8% in the same quarter of last year.

(4) Non-GAAP net income represents net income excluding share-based compensation expenses, net of tax. Considering the impact of accretion of redeemable non-controlling interest for the third quarter 2024, non-GAAP net income is used as a meaningful measurement of the operation performance of the Company.

(5) Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax.

As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB614.4 million (US$87.6 million), compared to RMB673.7 million as of December 31, 2023. To date, the Company has a total outstanding amount of RMB1.1 billion, which has been included in the balances of redeemable non-controlling interests and accrued expenses and other current liabilities, owed to a group of investors of 1 Pharmacy Technology pursuant to their equity investments made in 2020 as previously disclosed. 111 received redemption requests from certain of such investors in accordance with the terms of their initial investments in 1 Pharmacy Technology. Following communication and negotiation, the Company has reached agreements and/or commitment letters with investors representing approximately 90% of the total amount to reschedule the repayments, allowing for phased repayments at extended periods, if the holders exercise their redemption right. The Company has paid a portion of the repurchase funds upon signing of the agreements. Additionally, the Company is in ongoing discussions with investors holding the remaining approximately 10% of the total amount. For more information about the terms of 111’s arrangements with these investors, see “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources” in the Company’s annual report for the fiscal year ended December 31, 2023.

Conference Call

111’s management team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Wednesday, November 27, 2024 (8:30 PM Beijing Time on the same day).

Details for the conference call are as follows:

Event Title: 111, Inc. Third Quarter 2024 Unaudited Financial Results
Registration Link: https://s1.c-conf.com/diamondpass/10042738-te7sgd.html

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique Registration ID, which can be used to join the conference call.

Please dial in 15 minutes before the call is scheduled to begin and provide the Direct Event passcode and unique Registration ID you have received upon registering to join the call.

A telephone replay of the call will be available after the conclusion of the conference call until December 4, 2024 via:

China: 4001 209 216
United States: +1 855 883 1031
International: +61 7 3107 6325
Conference ID: 10042738

A live and archived webcast of the conference call will be available on the website at https://edge.media-server.com/mmc/p/3nkscjv6.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding share-based compensation expenses. The Company defines non-GAAP net income (loss) as net loss excluding share-based compensation expenses, net of tax. The Company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax. The Company defines non-GAAP loss per ADS as net loss attributable to ordinary shareholders per ADS excluding share-based compensation expenses, net of tax per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company believes that non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in income (loss) from operations and net loss. Share-based compensation expenses is a non-cash expense that varies from period to period. As a result, management excludes the items from its internal operating forecasts and models. Management believes that the adjustments for share-based compensation expenses provide investors with a reasonable basis to measure the company’s core operating performance, in a more meaningful comparison with the performance of other companies. The Company believes that non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, or non-GAAP loss per ADS is that it does not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP measures, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of the non-GAAP financial measures to the most comparable U.S. GAAP measures is included at the end of this press release.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024.

Forward-Looking Statements

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as 111’s strategic and operational plans, contain forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company’s ability comply with extensive and evolving regulatory requirements, its ability to compete effectively in the evolving PRC general health and wellness market, its ability to manage the growth of its business and expansion plans, its ability to achieve or maintain profitability in the future, its ability to control the risks associated with its pharmaceutical retail and wholesale businesses, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About 111, Inc.

111, Inc. (NASDAQ: YI) (“111” or the “Company”) is a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China. The Company provides consumers with better access to pharmaceutical products and healthcare services directly through its online retail pharmacy, 1 Pharmacy, and indirectly through its offline virtual pharmacy network. The Company also offers online healthcare services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation, electronic prescription service, and patient management service. In addition, the Company’s online platform, 1 Medicine, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. With the largest virtual pharmacy network in China, 111 enables offline pharmacies to better serve their customers with cloud-based services. 111 also provides an omni-channel drug commercialization platform to its strategic partners, which includes services such as digital marketing, patient education, data analytics, and pricing monitoring.

For more information on 111, please visit: http://ir.111.com.cn/.

For more information, please contact:

111, Inc.
Investor Relations
Email: ir@111.com.cn

111, Inc.
Media Relations
Email: press@111.com.cn
Phone: +86-021-2053 6666 (China)

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

As of

December 31, 2023

September 30, 2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

603,523

531,981

75,807

Restricted cash

20,025

32,430

4,621

Short-term investments

50,143

50,000

7,125

Accounts receivable, net

536,823

425,159

60,585

Notes receivable

77,598

80,853

11,521

Inventories

1,419,396

1,532,170

218,332

Prepayments and other current assets

225,823

234,295

33,388

Total current assets

2,933,331

2,886,888

411,379

Property and equipment, net

34,340

25,558

3,642

Intangible assets, net

2,256

1,643

234

Long-term investments

2,000

1,000

142

Other non-current assets

13,310

15,684

2,235

Operating lease right-of-use asset

103,799

98,909

14,094

Total assets

3,089,036

3,029,682

431,726

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT

Current liabilities:

Short-term borrowings

338,075

168,517

24,013

Accounts payable

1,588,693

1,912,109

272,474

Accrued expense and other current liabilities

818,295

569,246

81,116

Total current liabilities

2,745,063

2,649,872

377,603

Long-term operating lease liabilities

62,624

63,969

9,116

Other non-current liabilities

5,245

8,331

1,187

Total liabilities

2,812,932

2,722,172

387,906

MEZZANINE EQUITY

Redeemable non-controlling interests

870,825

943,774

134,487

SHAREHOLDERS’ DEFICIT

Ordinary shares Class A

Ordinary shares Class B

Treasury shares

(5,887)

(839)

Additional paid-in capital

3,169,114

3,167,794

451,407

Accumulated deficit

(3,819,249)

(3,864,151)

(550,637)

Accumulated other comprehensive income

72,514

72,602

10,346

Total shareholders’ deficit

(583,451)

(629,584)

(89,715)

Non-controlling interest

(11,270)

(6,680)

(952)

Total deficit

(594,721)

(636,264)

(90,667)

Total liabilities, mezzanine equity and deficit

3,089,036

3,029,682

431,726

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except for share and per share data)

For the three months ended September 30,

For the nine months ended September 30,

2023

2024

2023

2024

RMB

US$

RMB

US$

Net revenues

3,665,245

3,600,675

513,092

10,839,503

10,553,474

1,503,858

Operating costs and expenses:

Cost of products sold

(3,474,621)

(3,390,059)

(483,080)

(10,204,779)

(9,926,727)

(1,414,547)

Fulfillment expenses

(101,602)

(99,977)

(14,247)

(299,202)

(276,559)

(39,409)

Selling and marketing expenses

(95,523)

(76,954)

(10,966)

(274,880)

(237,724)

(33,875)

General and administrative expenses

(45,839)

(14,367)

(2,047)

(126,235)

(50,747)

(7,231)

Technology expenses

(25,386)

(17,549)

(2,501)

(75,243)

(54,225)

(7,727)

Other operating (expenses) income, net

(2,696)

602

(2,723)

1,941

277

Total operating costs and expenses

(3,745,667)

(3,598,304)

(512,755)

(10,983,062)

(10,544,041)

(1,502,512)

(Loss) Income from operations

(80,422)

2,371

337

(143,559)

9,433

1,346

Interest income

2,362

1,533

218

6,517

5,574

794

Interest expense

(5,433)

(7,810)

(1,113)

(14,525)

(23,067)

(3,287)

Foreign exchange gain (loss)

642

(1,095)

Other income (loss), net

(193)

(28)

4,552

(116)

(17)

Loss before income taxes

(83,376)

(3,457)

(495)

(148,110)

(8,136)

(1,158)

Income tax expense

(102)

(5)

(1)

(102)

(93)

(13)

Net loss

(83,478)

(3,462)

(496)

(148,212)

(8,229)

(1,171)

Net loss attributable to non-controlling interest

4,315

848

121

7,837

(431)

(61)

Net loss attributable to redeemable non-controlling interest

7,253

438

12,529

1,168

166

Adjustment attributable to redeemable non-controlling interest

(21,391)

(14,931)

(2,128)

(54,481)

(37,410)

(5,331)

Net loss attributable to ordinary shareholders

(93,301)

(17,107)

(2,441)

(182,327)

(44,902)

(6,397)

Other comprehensive loss

Unrealized gains of available-for-sale securities,

1,013

(407)

(58)

3,936

(753)

(107)

Realized gains of available-for-sale debt securities

(841)

407

(3,558)

896

128

Foreign currency translation adjustments

(1,690)

(1,184)

(169)

4,234

(55)

(8)

Comprehensive loss

(94,819)

(18,291)

(2,610)

(177,715)

(44,814)

(6,384)

Loss per ADS:

Basic and diluted

(1.10)

(0.20)

(0.02)

(2.16)

(0.52)

(0.08)

Weighted average number of shares used in computation of loss per share

Basic and diluted

169,088,015

171,938,537

168,179,779

171,526,062

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

For the three months ended September 30,

For the nine months ended September 30,

2023

2024

2023

2024

RMB

US$

RMB

US$

Net cash provided by (used in) operating activities

35,208

109,865

15,656

(250,230)

311,563

44,397

Net cash provided by (used in) investing activities

5,163

49,845

7,103

91,913

(141)

(20)

Net cash provided by (used in) financing activities

110,452

(110,510)

(15,748)

204,230

(370,453)

(52,789)

Effect of exchange rate changes on cash and cash equivalents, and restricted cash

2,621

(313)

(45)

3,514

(106)

(15)

Net increase (decrease) in cash and cash equivalents, and restricted cash

153,444

48,887

6,966

49,427

(59,137)

(8,427)

Cash and cash equivalents, and restricted cash at the beginning of the period

612,774

515,524

73,462

716,791

623,548

88,855

Cash and cash equivalents, and restricted cash at the end of the period

766,218

564,411

80,428

766,218

564,411

80,428

111, Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In thousands, except for share and per share data)

For the three months ended September 30,

For the nine months ended September 30,

2023

2024

2023

2024

RMB

US$

RMB

US$

(Loss) Income from operations

(80,422)

2,371

337

(143,559)

9,433

1,346

Add: Share-based compensation expenses

26,402

4,756

678

74,818

15,122

2,155

Non-GAAP (loss) income from operations

(54,020)

7,127

1,015

(68,741)

24,555

3,501

Net loss

(83,478)

(3,462)

(496)

(148,212)

(8,229)

(1,171)

Add: Share-based compensation expenses, net of tax

26,402

4,756

678

74,818

15,122

2,155

Non-GAAP net (loss) income

(57,076)

1,294

182

(73,394)

6,893

984

Net loss attributable to ordinary shareholders

(93,301)

(17,107)

(2,441)

(182,327)

(44,902)

(6,397)

Add: Share-based compensation expenses, net of tax

26,402

4,756

678

74,818

15,122

2,155

Non-GAAP net loss attributable to ordinary shareholders

(66,899)

(12,351)

(1,763)

(107,509)

(29,780)

(4,242)

Loss per ADS(6): Basic and diluted

(1.10)

(0.20)

(0.02)

(2.16)

(0.52)

(0.08)

Add: Share-based compensation expenses per ADS(6), net of tax

0.32

0.06

0.00

0.88

0.18

0.02

Non-GAAP loss per ADS(6)

(0.78)

(0.14)

(0.02)

(1.28)

(0.34)

(0.06)

(6) Every one ADS represents two Class A ordinary shares.

View original content:https://www.prnewswire.com/news-releases/111-inc-announces-third-quarter-2024-unaudited-financial-results-302317201.html

SOURCE 111, Inc.

Technology

America’s First VC-Backed Cyber Warfare Startup Raises Additional $30M from Khosla Ventures at $1.2B Valuation

Published

8 minutes ago

July 20, 2026

The investment follows Twenty’s $100M Accel-led Series B and further cements Twenty as the definitive offensive cyber company industrializing capabilities for the United States and its allies.

ARLINGTON, Va., July 20, 2026 /PRNewswire/ — Twenty, America’s first VC-backed cyber warfare startup, today announced an additional $30 million investment from Khosla Ventures at a $1.2 billion valuation. The investment follows Twenty’s recently announced $100 million Series B at a $1 billion valuation led by Accel.

With this investment, Twenty has now raised $168 million from many of the world’s foremost technology and national security investors, including Khosla Ventures, Accel, Friends & Family Capital, Point72 Ventures, Caffeinated Capital, General Catalyst, and In-Q-Tel.

Founded in 2024, Twenty is industrializing offensive cyber warfare for the United States and its allies. The company builds AI-enabled, end-to-end systems for the U.S. military and Intelligence Community, giving warfighters the speed and scale required to deter and defeat adversaries in cyberspace. Twenty’s systems are designed to keep human judgment at the center, pairing advanced AI and automation with rigorous evaluation, controlled deployment, and mission alignment.

The investment follows unprecedented government demand for offensive cyber capabilities built at commercial speed. This Administration has brought renewed leadership to offensive cyber, calling for the United States to use the full suite of offensive cyber operations to disrupt adversary networks and raise the costs of aggression on those who threaten American interests.

“Our thesis here is simple. AI is reshaping the world and the US and its allies need an AI-native cyberwarfare prime capable of protecting our most critical interests. That prime is Twenty,” said Jon Chu, the Partner at Khosla Ventures who led the investment. “Every major national security domain needs a prime that can operate at the speed of AI while delivering commercial grade execution and earning mission level trust. I’ve searched for a company that fits this thesis for years, but have never found a team with the necessary depth across AI, cyber, and defense until now. Twenty brings together the talent, product velocity, customer pull, and mission relevance required to define this category.”

“Khosla’s investment is further validation that Twenty is the definitive company industrializing cyber warfare for the United States and its allies,” said Joe Lin, Co-founder and CEO of Twenty. “We are building the industrial base for American cyber power: the AI-enabled capabilities our warfighters need to disrupt threats at their origin. We are grateful to partner with Jon and the Khosla team as we continue pouring capital directly into research and engineering.”

“AI is changing cyber warfare. Now it happens faster, at greater scale, and most defense contractors are still building for the old world,” said Vinod Khosla, founder of Khosla Ventures. “The country that moves fastest on AI-native cyber warfare will have the advantage for the next decade. Joe and the Twenty team have the technical depth and operational credibility to industrialize offensive cyber capability at exactly the moment it matters most.”

Twenty will invest this capital directly into research and engineering, expanding the technical team and accelerating development of the offensive cyber capabilities America’s warfighters need to win against determined adversaries.

About Twenty

Twenty is America’s first VC-backed cyber warfare startup. Founded in 2024, Twenty is industrializing cyber warfare for the United States and its allies. The company builds AI-enabled, end-to-end systems for the U.S. military and Intelligence Community, giving warfighters the speed and scale required to impose costs on adversaries in cyberspace. Twenty’s systems are designed to keep human judgment at the center, pairing advanced AI and automation with rigorous evaluation, controlled deployment, and mission alignment.

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SOURCE Twenty

Technology

Construction begins on the Enbridge Sunrise Expansion Program

Published

8 minutes ago

July 20, 2026

PRINCE GEORGE, BC, July 20, 2026 /CNW/ — Canada is taking the next step in building infrastructure that will strengthen our economy, secure energy sovereignty and ensure affordability for Canadians.

Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced that construction has begun on the Sunrise Expansion Program in British Columbia, following the Government of Canada’s approval in April 2026.

This $4-billion expansion of Enbridge’s Westcoast natural gas pipeline will ensure British Columbia’s growing energy needs are met by providing up to 300 million cubic feet per day of additional transportation capacity on the province’s natural gas transmission system. This additional capacity ensures we can reliably power homes, schools and hospitals; support B.C.’s industrial and manufacturing sectors; and ensure natural gas supplies are available as LNG export facilities — including Woodfibre LNG, the world’s first net-zero facility — begin operations.

The Sunrise Expansion Program marks another milestone in Canada’s strategic push to get major infrastructure projects built to diversify our trade, create jobs and prosperity, and support national and energy security. The Expansion Program will add over $3 billion to Canada’s GDP as we expand Canadian natural gas exports to Asian markets. It will also create 2,500 jobs, including for local Indigenous communities, and generate $700 million in tax revenue to fund local roads, hospitals and schools.

The project will also maximize Canadian industrial participation and use domestically produced materials, including 100 percent Canadian melted and poured steel supplied by InterPro Pipe + Steel from Saskatchewan. Commitments to buying and supplying Canadian in projects like this support manufacturing jobs and strengthen Canadian supply chains from coast to coast to coast.

This project builds on a strong foundation of Indigenous partnership. Last year, 38 Indigenous communities in British Columbia acquired a 12.5 percent ownership interest in Enbridge’s Westcoast natural gas pipeline system, supported by the first-ever federal Indigenous Loan Guarantee.

The Sunrise Expansion Program underscores the Government of Canada’s commitment to working in partnership with provinces, industry and Indigenous partners to efficiently and responsibly approve projects that turn our energy opportunities into economic realities. We are building a Canada where major projects move forward, new jobs are created, and energy is secure and affordable for everyone.

Quotes

“From approval to groundbreaking in just three months, the Sunrise Expansion Program shows how Canada is getting major projects built. This expansion will provide reliable natural gas for homes, hospitals, schools and B.C.’s growing low-carbon energy sector while creating thousands of well-paying careers and new, diverse international trade opportunities. This is how we strengthen Canadian energy security, support affordability and prove once again what being an energy superpower looks like.”

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

“Breaking ground on Enbridge’s Sunrise expansion is a big step forward for our economy, for good local jobs and for Indigenous communities. Through our government’s Look West strategy, we’re building the kind of lasting prosperity that keeps our hospitals, schools and communities strong for generations to come.”

The Honourable Ravi Kahlon
B.C Minister of Jobs and Economic Growth

“The Sunrise Expansion project demonstrates what’s possible when First Nations, industry and government work together with a shared commitment to building a stronger future. For Lheidli T’enneh, meaningful partnerships are about more than economic opportunity — they are about ensuring our Nation has a seat at the table in shaping projects that will benefit our people and region for generations to come. By working collaboratively, we can help build a reliable and secure energy future that supports growing communities, creates opportunities for First Nations participation and respects the lands and waters that have sustained for time immemorial. This is the kind of partnership that moves reconciliation from words to action while strengthening a shared future.”

Chief Dolleen Logan
Lheidli T’enneh First Nation

“Today marks an important milestone as construction begins on the Sunrise Expansion Program. We appreciate the ongoing support of the Government of Canada and the Government of British Columbia to advance this critical natural gas infrastructure project. This project will strengthen energy security, support economic growth, create jobs and help to ensure Canadians have access to reliable, affordable energy for decades to come. We’re proud to be working alongside Indigenous groups, local communities, contractors and labour across British Columbia as we move this project from approval to construction and deliver lasting benefits for Canadians.”

Greg Ebel
CEO and President, Enbridge

“The Sunrise Expansion Program will be built in Canada, with Canadian steel. InterPro Pipe + Steel is proud to supply steel that is 100 percent melted and poured in Canada for this nation-building project. By choosing Canadian steel, we are supporting skilled workers, strengthening domestic supply chains and ensuring Canada’s critical energy infrastructure is built with Canadian materials. This is how we create lasting jobs, resilient communities and long-term economic benefits across the country.”

Doug Matthews
CEO, InterPro Pipe + Steel

Quick Facts

The Enbridge Westcoast Pipeline is a 2,900-kilometre natural gas transmission system in British Columbia, supplying gas to B.C., Alberta and the U.S. Pacific Northwest. The Expansion Program would add approximately 140 kilometres of new pipeline by constructing 11 pipeline looping segments, parallel to the existing line, and supplying additional natural gas compression and upgrades and modifications to existing facilities.On July 2, 2025, Stonlasec8 Indigenous Alliance Limited Partnership, representing 38 Indigenous communities in British Columbia, acquired a 12.5 percent ownership interest in Enbridge’s Westcoast natural gas pipeline system. This transaction was supported by the Indigenous Loan Guarantee Program, which issued a loan guarantee covering $400 million of a $736-million investment.To date, more than $52 million has been spent by Enbridge on the hiring and procuring of services from Indigenous businesses for the Sunrise Expansion Program.

SOURCE Natural Resources Canada

Technology

PrideStaff Announces New Ownership for Columbia, MD Office

Published

8 minutes ago

July 20, 2026

COLUMBIA, Md., July 20, 2026 /PRNewswire/ — PrideStaff, a nationally franchised staffing organization, is pleased to announce that Paul D’Souza will acquire the PrideStaff Columbia office and assume the role of Owner/Strategic-Partner. The ownership transition marks an exciting new chapter for the office as it continues its mission of connecting top talent with leading employers throughout Columbia and the greater Baltimore-Washington metropolitan region.

As Strategic-Partner, D’Souza will lead the Columbia office’s efforts to expand its market presence, strengthen client relationships, and deliver exceptional staffing and workforce solutions to businesses and job seekers across Central Maryland.

D’Souza brings extensive business leadership experience and a strong commitment to helping organizations and individuals achieve their goals. Under his leadership, the Columbia office will continue to leverage PrideStaff’s nationally recognized resources, innovative staffing solutions, and client-focused approach while maintaining the personalized service that has become a hallmark of the local operation.

“I’m excited to join PrideStaff as the Strategic-Partner of the Columbia office and to become part of a brand so highly regarded for its commitment to service,” said D’Souza. “The Columbia market offers tremendous opportunities for growth, and I look forward to building strong relationships with local businesses, supporting job seekers, and helping our clients navigate an increasingly competitive talent landscape. Together with our team, we’ll continue delivering the personalized service and results that have made PrideStaff a trusted staffing partner.”

Located in one of Maryland’s most vibrant business communities, the Columbia office serves employers across a variety of industries, providing staffing, recruiting, and workforce solutions tailored to each client’s unique needs. The office also supports job seekers throughout the region by connecting them with meaningful employment opportunities and career advancement resources.

“We’re excited to welcome Paul as the new Owner/Strategic-Partner of our Columbia office,” said Tammi Heaton, Co-CEO of PrideStaff. “His leadership experience, entrepreneurial spirit, and dedication to helping others succeed make him an excellent fit for our organization. We are confident that Paul will build on the office’s strong foundation while continuing to deliver the exceptional client and talent experiences that define the PrideStaff brand.”

The transition reflects PrideStaff’s ongoing commitment to empowering local owners who combine market expertise with a passion for service. Supported by PrideStaff’s national resources and proven operating model, the Columbia office is well-positioned for continued success and growth in the years ahead.

About PrideStaff

PrideStaff was founded in the 1970s as 100% company-owned units and began franchising in 1995. It operates offices in North America to serve thousands of clients and is headquartered in Central California. With 45-plus years in the staffing business, PrideStaff offers the resources and expertise of a national firm, with the spirit, dedication, and personal service of smaller, entrepreneurial firms. PrideStaff is the only nationwide commercial staffing firm in the U.S. and Canada with over $100 million in annual revenue to earn ClearlyRated’s prestigious Best of Staffing® 15-Year Diamond Awards three years in a row, highlighting exceptional client and talent service quality.

For more information on our services, or for staffing franchise information, visit our website.

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SOURCE PrideStaff