Intelligent Bio Solutions expects to achieve 32.6% Gross Profit Expansion and Increased Profitability on Higher-Margin Sales
Rhea-AI Summary
Intelligent Bio Solutions (INBS) has announced preliminary unaudited financial results for fiscal Q2 and six months ended December 31, 2024. The company reported unaudited revenue of $0.61 million for Q2 and $1.48 million for the six-month period. Gross profit is expected to increase by 32.6% from $0.43 million to $0.57 million, with gross profit margin expanding to 38.5% from 27.7%.
The improved profitability is primarily driven by increased sales of high-margin cartridges used in the Intelligent Fingerprinting Drug Screening System. The company's total calendar year revenue grew 23% year-on-year, supported by a base of over 400 accounts. During Q2, INBS submitted a 510(k) premarket notification to the FDA for its drug screening system and formed strategic partnerships to expand its presence in the U.S. and international markets.
Positive
- Gross profit increase of 32.6% to $0.57 million
- Gross profit margin expansion to 38.5% from 27.7%
- 23% year-over-year revenue growth
- Growing recurring revenue from high-margin cartridge sales
- Expanding customer base with 400+ accounts
- FDA 510(k) submission completed for U.S. market entry
Negative
- Quarterly revenue of $0.61M shows relatively small revenue base
- Final financial results subject to adjustments after close process
Insights
The preliminary Q2 FY2025 results reveal a compelling transformation in INBS's business model, marked by an impressive
The revenue metrics -
The expansion to 400+ accounts represents a important milestone, as each new account installation creates a 'locked-in' customer generating recurring cartridge purchases. This growing installed base, combined with the pending FDA submission for U.S. market entry, positions INBS to tap into the multi-billion-dollar drug screening market. The fingerprint-based technology offers a compelling alternative to traditional testing methods, potentially disrupting the status quo in workplace and law enforcement applications.
However, investors should note that these are preliminary unaudited results subject to adjustments. The upcoming 10-Q filing will provide important details on operating expenses and cash burn rate, essential metrics for evaluating the path to profitability. The success of the FDA submission and execution of strategic partnerships will be critical catalysts for future growth.
INBS's planned entry into the U.S. drug screening market marks a pivotal expansion opportunity. The global drug testing market, valued at over
The strategic focus on building a robust distribution network through partnerships is important for penetrating both U.S. and international markets effectively. With 400+ existing accounts demonstrating product-market fit, the company has validated its technology and business model in initial markets. The scalability of the cartridge-based recurring revenue model provides a foundation for sustainable growth.
The fingerprint-based technology addresses key pain points in current drug screening processes - it's non-invasive, provides rapid results and offers improved chain of custody. These advantages position INBS favorably in both workplace testing and law enforcement applications, two substantial market segments with growing demand for efficient drug screening solutions.
Gross profit expected to surge by
Unaudited revenue of
Higher-margin cartridge sales driving profitability and long-term growth
Expanding U.S. and international market presence with FDA submission and strategic partnerships
NEW YORK, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) (“INBS” or the “Company”), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced its preliminary unaudited selected financial results for the fiscal second quarter and six months ended December 31, 2024.
For the fiscal 2025 second quarter and six-month period, the Company anticipates:
- Unaudited revenue of approximately
$0.61 million for the three months ended December 31, 2024. - Unaudited revenue of approximately
$1.48 million for the six months ended December 31, 2024. - Gross profit to increase
32.6% from$0.43 million to$0.57 million for the six months ended December 31, 2024. - Gross profit margin expected to increase to
38.5% from27.7% for the six months ended December 31, 2024. - The anticipated increase in gross profit and gross profit margin is driven by the Company's ongoing efforts to maximize recurring revenue from the sale of cartridges used in its Intelligent Fingerprinting Drug Screening System. Cartridge sales are expected to continue to outpace reader sales, serving as a primary source of recurring revenue with a higher profit margin. The sustained growth in gross profit and gross profit margin supports INBS' long-term financial stability and expansion.
“Our strong financial performance underscores the momentum we are building. Despite quarterly fluctuations, our total calendar year revenue grew
During the fiscal second quarter, the Company submitted its 510(k) premarket notification to the FDA for its Intelligent Fingerprinting Drug Screening System and strengthened its market reach through strategic partnerships. The Company's 510(k) submission represented a key achievement as it plans to enter the multi-billion-dollar U.S. drug screening market in 2025. The strategic partnerships are expected to increase opportunities for the Company in the U.S. market and internationally, with a focus on expanding brand awareness of the Company and leveraging its proprietary fingerprint sweat-based drug screening technology to address evolving workplace and law enforcement drug testing needs in key regions.
The preliminary unaudited revenue results for the fiscal second quarter and the six months ended December 31, 2024, are based on information available to management as of the date of this press release and are, therefore, subject to adjustments based on the Company's completion of its quarter-end financial close process. The Company expects to disclose financial results for the fiscal second quarter ended December 31, 2024, in its upcoming Quarterly Report on Form 10-Q, expected to be filed with the Securities and Exchange Commission during the week commencing February 10, 2025.
About Intelligent Bio Solutions Inc.
Intelligent Bio Solutions Inc. (NASDAQ: INBS) is a medical technology company delivering innovative, rapid, non-invasive testing solutions. The Company believes that its Intelligent Fingerprinting Drug Screening System will revolutionize portable testing through fingerprint sweat analysis, which has the potential for broader applications in additional fields. Designed as a hygienic and cost-effective system, the test screens for the recent use of drugs commonly found in the workplace, including opiates, cocaine, methamphetamine, and cannabis. With sample collection in seconds and results in under ten minutes, this technology would be a valuable tool for employers in safety-critical industries. The Company’s current customer segments outside the US include construction, manufacturing and engineering, transport and logistics firms, drug treatment organizations, and coroners.
For more information, visit: http://www.ibs.inc/
Forward-Looking Statements
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, Intelligent Bio Solutions Inc.’s ability to successfully develop and commercialize its drug and diagnostic tests, realize commercial benefit from its partnerships and collaborations, and secure regulatory approvals, among others. Although Intelligent Bio Solutions Inc. believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Intelligent Bio Solutions Inc. has attempted to identify forward-looking statements by terminology, including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “projects,” “intends,” “potential,” “may,” “could,” “might,” “will,” “should,” “approximately” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, included in Intelligent Bio Solutions’ public filings filed with the Securities and Exchange Commission. Any forward-looking statements contained in this release speak only as of its date. Intelligent Bio Solutions undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
Company Contact:
Intelligent Bio Solutions Inc.
info@ibs.inc
LinkedIn | Twitter
Investor & Media Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
PH: (212) 896-1254
INBS@kcsa.com
FAQ
What is INBS's expected gross profit increase for the six months ended December 31, 2024?
How much revenue did INBS generate in fiscal Q2 2024?
What is driving INBS's improved gross profit margins?
What was INBS's year-over-year revenue growth for calendar year 2024?
When will INBS release its full Q2 2024 financial results?
What regulatory milestone did INBS achieve in Q2 2024?
