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NEW YORK - Intelligent Bio Solutions Inc. (NASDAQ: INBS), a medical technology company known for its non-invasive drug testing technology, has reported preliminary unaudited revenue results for the fiscal first quarter ended September 30, 2024. The company announced a revenue increase of 10% year-on-year and 20% quarter-on-quarter, amounting to approximately $0.87 million for the three months.
The company's Intelligent Fingerprinting Drug Screening System, which utilizes single-use cartridges and a handheld reader to analyze fingerprint sweat for drug use, is expected to see cartridge sales becoming the main source of revenue. Cartridge sales, which offer higher profit margins, are anticipated to drive future growth and contribute to increased gross profit margins.
President and CEO Harry Simeonidis expressed satisfaction with the revenue growth and emphasized the importance of the shift towards recurring revenue from cartridge sales. This shift is attributed to the growing customer base's confidence in the product's reliability and quality.
Intelligent Bio Solutions has also expanded its distribution network in Saudi Arabia, focusing on strategic geographical growth. Global sales are projected to rise by 15% year-on-year. This expansion is part of the company's efforts to address the increasing demand for workplace drug testing solutions.
The reported financial figures are subject to adjustments as the company completes its quarter-end financial close process. The full financial results for the quarter are expected to be filed with the Securities and Exchange Commission in the week commencing November 4, 2024.
This announcement is based on a press release statement by Intelligent Bio Solutions Inc. and reflects the company's current expectations and projections regarding its financial performance.
In other recent news, Intelligent Bio Solutions Inc. has reported an 80% increase in revenue for the fiscal third quarter and a 193% rise for the nine months ending March 31, 2024, primarily due to a surge in product sales. The company also secured a new client, Pyrotek Pty Ltd, which plans to implement INBS's Intelligent Fingerprinting Drug Testing Solution across its Australian operations. In addition, the company has completed a key phase in its FDA 510(k) submission process for its sweat-based drug testing method.
Intelligent Bio Solutions has also announced a $3 million stock offering in an agreement with Ladenburg Thalmann & Co. Inc., aimed at funding working capital and other corporate purposes. Furthermore, the company has awarded a significant number of fully vested shares to its top executives, including CEO Harry Simeonidis and CFO Spiro Sakiris, as part of its 2024 compensation analysis and evaluation.
In other developments, Intelligent Bio Solutions installed over 1,000 drug screening readers, marking a 65% growth from the previous year, and reported a 20% increase in cartridge sales. The company also secured approximately $10.1 million in funding through a private placement transaction and was granted a new European patent for its DSR-Plus Cartridge Reader. These are the recent developments from Intelligent Bio Solutions Inc.
InvestingPro Insights
Intelligent Bio Solutions Inc. (NASDAQ: INBS) has shown impressive revenue growth, as highlighted in the recent preliminary results. This growth trend is further supported by InvestingPro data, which reveals a substantial revenue growth of 147.58% over the last twelve months as of Q4 2024. This aligns with the company's reported 10% year-on-year increase and suggests a strong trajectory for the business.
Despite the positive revenue trends, InvestingPro Tips indicate that INBS is "quickly burning through cash" and is "not profitable over the last twelve months." This information provides context to the company's financial situation beyond the revenue growth, highlighting potential challenges in achieving profitability despite increasing sales.
The company's focus on expanding its distribution network and shifting towards recurring revenue from cartridge sales appears to be a strategic move. This is particularly relevant given the InvestingPro Tip that INBS is "trading at a low revenue valuation multiple," which could suggest potential upside if the company successfully executes its growth strategy and improves profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for INBS, providing a deeper understanding of the company's financial health and market position.
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