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Revenue: $7.9 million, a 40.5% increase over the previous year.
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Gross Profit Margin: Increased to 31% from 26.6%.
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Adjusted EBITDA Loss: Reduced to below $1 million.
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Fund Raise: Completed a $12.7 million fund raise in early 2023.
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Revenue per Household: $49 per 1,000 households in North America; $22 per 1,000 households across Europe and North America.
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Revenue Growth from Existing Customers: $1.8 million, representing 78% of total growth.
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New Accounts: Added more than 10 new accounts, contributing about $0.5 million in revenues.
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Revenue Concentration: Two key customers represented about 63% of total revenues.
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Revenue by Market: Cleaning revenue $7.2 million, hygiene revenue $400,000, beauty revenue $300,000.
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Cash and Investments: Strong position due to successful fund raise.
Release Date: April 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Please provide guidance on revenue growth expectations. A: John Shaw, CEO of Itaconix, stated that the company’s revenue guidance for the year is between $6 million and $6.5 million.
Q: What assurance can the company give investors about future growth trajectories, especially after the recent loss of Itaconix’s largest customer? A: John Shaw explained that while the loss of a major customer has impacted investor confidence, the company’s revenues are generally sticky, and they are gaining more customers due to the value of their polymers. The focus remains on capturing profitability from the value of these polymers.
Q: Why did the Board announce the customer loss when it did instead of including it in the RNS announcing the full-year results? A: The timing was due to AIM requirements for disclosing changes in business conditions, aiming to maintain high transparency and meet all disclosure obligations to investors.
Q: What methods do you use to obtain new customers? A: John Shaw detailed that Itaconix uses several channels for acquiring new customers, including a direct sales force that engages major detergent companies in North America and Europe, partnerships in specific channels, and selected distributors in both Europe and the US.
Q: Can you explain where the recently lost major North American dishwashing detergent customer sits within the customer constitution diagram? A: Laura Denner, CFO, clarified that this customer is behind one of the contract manufacturers, using multiple sites within their customer concentration to produce their products, indicating an indirect relationship through contract manufacturers.
Q: What are the targeting EBITDA breakeven and positive cash flow from operations? A: Laura Denner mentioned that EBITDA breakeven has been pushed back by about 12 months, expected now in 2025, with positive cash flow from operations anticipated in the following year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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