The following is a summary of the Ispire Technology Inc. (ISPR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Ispire Technology reported Q3 revenue of $30 million, up 24% compared to the previous year.
Revenue in cannabis hardware saw a 57% increase, while tobacco vaping products grew by 9%.
Gross profit for the quarter reached $6.1 million, marking a 35% increase over last year's numbers, with an increased gross profit margin at 20.4%.
Despite increased revenues, operating expenses also rose considerably, resulting in a net loss of $5.9 million, a significant increase from $2.3 million net loss from last year's third quarter.
A $12.3 million public offering was successfully closed in March, bolstering the company's financial standing.
Business Progress:
The company is expanding their offerings with a joint venture with Berify and Chemular, focusing on developing advanced age verification technology for e-cigarettes.
A collaboration with a subsidiary of Acreage Holdings is aimed at introducing Ispire ONE tech to Acreage retail facilities across the U.S.
The company continues to aim for additional nicotine markets with ongoing applications for pre-market tobacco product approvals.
A global manufacturing and distribution agreement with BrkFst is showing promising results with increased revenue and global brand awareness.
The company's new manufacturing facility in Malaysia, which opened in early 2024, has already started generating revenue. Despite some delays with the Ispire ONE and weaker tobacco sales, the company is expected to reach a break-even point in the upcoming quarter.
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