Ispire Technology Revenue Grows 26.9% YoY Thanks To Tobacco And Cannabis Vaping Products

Ispire Technology Inc. ISPR released its financial results for the third quarter of the fiscal year 2023 ended March 31, 2023, revealing revenue of $24.1 million, an increase of 26.9% compared to $19.0 million in Q3 2022.

ISPR also filed its quarterly report on Form 10-Q on May 15, 2023. Moreover, its fiscal year is the year ending on June 30, 2023.

Q3 FY 2023 Financial Highlights

• Regarding its revenue increase to $24.1 million, tobacco vaping products contributed $16.5 million and cannabis vaping products contributed $7.6 million to revenue during the third quarter of 2023;
• Gross profit increased 51.9% to $4.5 million as compared to $3.0 million in the same period of 2022;
• Gross margin increased to 18.7% as compared to 15.7% in the same period of 2022.
• Total operating expenses increased 106.2% to $8.0 million as compared to $3.9 million in the same period of 2022; and
• Net loss of $3.1 million as compared to net loss of $1.0 million in the same period of 2022.

“We are very pleased with our financial results during our third quarter. Revenue growth was a robust 26.9% while gross profit grew 51.9% due to a favorable product mix and the realization of economies of scale on higher sales volume. We look forward to a strong finish to the fiscal year with a projected sequential revenue increase for cannabis vaping products of between 58% and 98% during our fourth quarter,” said Michael Wang, Ispire CFO.

Liquidity and capital resources: As of March 31, 2023, Ispire had $24.0 million in cash and cash equivalents and $5.2 million in working capital.

Initial public offering: In April 2023, Ispire completed its initial public offering, selling 3,1 million shares of common stock at $7.00 per share, including the overallotment option. The stock began trading on NASDAQ on April 4, 2023. The offering generated gross proceeds of approximately $21.7 million, with net proceeds of $18.5 million after deducting expenses and underwriting discounts.

Outlook: Ispire anticipates a promising outlook for cannabis vaping products in the fourth quarter of 2023, projecting revenue in the range of $12 million to $15 million, showcasing significant growth of 58% to 98% compared to the third quarter of the same year.

“As we begin our journey as a public company, we are focused on a multi-prong strategy directed at increasing sales of our e-cigarette vaporizer technology products and developing our cannabis vaporizer technology products with a focus on both medical and recreational usages (...) We continue to seek to remain at the forefront of technology so that we can adapt to emerging trends and thereby enhance value for all of our shareholders,” Wang concluded.

Price action: ISPR shares experienced a moderate decline of 2.95% to $8.55 during Tuesday afternoon trading.

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