Financial Data and Key Metrics Changes - The company achieved a revenue of approximately $2.5 million for Q3 2024, representing a 73% increase compared to the same quarter in the previous year [8][14] - Consolidated gross profit margin improved to 61.4% from 55% due to a favorable product mix and increased demand for mobile equipment [14] - Consolidated operating profit was $149,000 compared to a loss of $901,000, marking a significant improvement [15] - The company reported a net profit of $59,000 or $0 per share, compared to a net loss of $901,000 or a loss of $0.05 per share in the prior year [15][16] Business Line Data and Key Metrics Changes - Mobile equipment sales increased by 90% in 2024 compared to 2023, significantly contributing to revenue growth [8] - IHP service revenue reached approximately $650,000, setting a record for the division's quarterly performance [8] - International sales grew by 82% year-to-date compared to 2023, indicating strong demand in global markets [9] Market Data and Key Metrics Changes - The company secured key clients such as Pfizer and Thermo Fisher Scientific, while onboarding new customers like Integra LifeSciences and Curia [10] - The partnership with EMAQ continues to grow, enhancing business development opportunities [9] Company Strategy and Development Direction - The company is focused on accelerating international growth, launching new products, and managing expenses effectively [13] - TOMI is making strides into the consumer healthcare market through partnerships with Edgewell Personal Care and Reckitt Benckiser Group [12] - A strategic shift has been made to launch the SPC program, replacing the TOMI Service Network, to enhance brand awareness and expand the global footprint [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the food safety industry, highlighting a significant increase in the ready-to-eat food market and ongoing collaborations with regulatory bodies [40] - The company aims to achieve over $10 million in revenue for the year, indicating a positive outlook for Q4 [41] - Management noted the importance of maintaining strong relationships with key contacts to sustain momentum in product lines [21] Other Important Information - The company is actively working on custom integrations and expects new contracts to be operational by 2025 [11][19] - The SteraMist Integrated System was successfully deployed at the National Institute of Forensic Medicine in Malaysia for approximately $133,000 [26] Q&A Session Summary Question: Visibility on iHP recurring revenues - Management indicated that the $600,000 projected for custom engineered systems is expected to grow, with contracts becoming more predictable as the installed base increases [36][38] Question: Outlook for food safety industry in 2025 - Management expressed excitement about the food safety industry, noting significant growth potential and ongoing engagement with industry organizations [40] Question: Accounts receivable and inventory levels - The majority of customers operate on net 30 terms, and inventory primarily consists of finished goods [41][42] Question: Marketing and customer education efforts - The company is enhancing its marketing strategies, focusing on social media and SEO to increase awareness of its products [54] Question: Progress on ethylene oxide replacement market - Management acknowledged interest from companies using ethylene oxide but refrained from providing specific details at this time [57]
TOMI Environmental Solutions(TOMZ) - 2024 Q3 - Earnings Call Transcript