Ispire Technology Q3 Report: Revenue Growth Driven by North American Cannabis E-cigarette Sales

According to the official website of Ispire, on May 14th, Ispire Technology Inc. (NASDAQ: ISPR) released its third quarter financial report for the 2024 fiscal year. Total revenue for the Q3 quarter increased by 24% year-on-year to $30 million, with the growth primarily attributed to a 57% year-on-year increase in North American cannabis e-cigarette hardware sales, rising from $7.6 million to $11.9 million; e-cigarette product revenue reached $18.1 million; and gross profit increased by 35% year-on-year to $6.1 million.

Its highlights are as follows:

• The gross profit margin increased from 18.7% in the same period of 2023 to 20.4%; 
• Total operating expenses increased by 63.7% year-on-year to 11.8 million US dollars, due to maintenance marketing expenses and operating capital related to Malaysia and Malaysian manufacturing factories; 
• Net loss was 5.9 million US dollars, a significant increase from 2.3 million US dollars in the same period of 2023; 
• Raised 12.3 million US dollars through public fundraising; 
• Had approximately 39.5 million US dollars in cash and cash equivalents; 
• As of March 31, 2024, operating capital was 28.9 million US dollars.

Additionally, Ispire has announced its performance data for the nine-month period ending on March 31, 2024. Ispire reported revenue of $114.6 million, a 38% increase from the same period last year of $83 million; of which, sales of North American cannabis e-cigarette hardware increased from $23.4 million in the first nine months of the 2023 fiscal year to $48.8 million, a growth rate of 108%; the gross profit for the nine months ending on March 31, 2024, was $19.2 million, compared to $14.3 million in the same period of the 2023 fiscal year; total operating expenses for this period were $29.8 million, resulting in a net loss of $2.3 million.

Ispire CEO Michael Wang stated:

For Ispire, the third quarter of this year is crucial. Our resilience has helped us find new strategic partners and expand our existing markets, which is an effective strategy in terms of innovation and market leadership. This quarter, we have established partnerships with Berify, Chemular, and a subsidiary of Acreage Holdings, Inc. In addition, going public will help us and our partners raise more joint venture funding and accelerate our direct operations at the manufacturing plant in Malaysia.

The Ispire Q3 quarterly conference call will take place on May 15, 2024 at 8:00 AM Eastern Time. The conference call will be hosted by Ispire management, followed by a question and answer session.