INEO Tech (INEO) Q4 2024 earnings summary

Executive summary

• Revenue for the year ended June 30, 2024, was $1,357,642, down 10% year-over-year, mainly due to declines in loss prevention products, retail media, and fabrication sales.

• Gross profit increased 18.3% to $441,450, with a margin improvement to 32.5% from 24.7% last year, attributed to higher-margin loss prevention products.

• Net loss narrowed to $3,088,727 ($0.04/share) from $3,331,491 ($0.05/share) in the prior year, reflecting lower expenses and improved gross profit.

• The company continues to invest in expanding its INEO Media Network and expects advertising revenue to grow as deployments increase.

Financial highlights

• Total expenses decreased by 10.6% to $3,211,420, mainly due to lower salaries and selling/marketing costs, offset by higher depreciation.

• Adjusted EBITDA loss improved to $2,182,615 from $2,830,169 year-over-year.

• Cash used in operations was $859,279, with $403,836 used in investing and $883,043 provided by financing activities.

• As of June 30, 2024, the company had bank indebtedness of $17,561 and current liabilities of $2,262,429.

• Accounts receivable and inventory declined, reflecting lower sales and inventory turnover.

Outlook and guidance

• Focus remains on expanding system deployments with large US retailers and the liquor store network in Western Canada.

• Management expects advertising and analytics revenues to increase as the INEO Media Network grows.

• The company is targeting conversion of pilot installations into full-scale rollouts in the coming quarters.