Ispire Releases Q1 Results: Revenue Reaches USD 24.1 Million

Today’s news, May 23: According to foreign media reports, Ispire Technology Inc. released its financial results for the first quarter of fiscal year 2023 ended March 31. The China-based company reported revenue of USD 24.1 million, up 26.9% from USD 19.0 million in the first quarter of 2022.

Fiscal Q1 2023 Financial Highlights:

Regarding the increase in revenue to USD 24.1 million, tobacco electronic atomization products contributed USD 16.5 million, while cannabis electronic atomization products contributed USD 7.6 million in revenue in the third quarter of 2023;

Gross profit increased 51.9% to USD 4.5 million, compared with USD 3.0 million in the same period of 2022; gross margin increased to 18.7% from 15.7% in the same period of 2022.

Total operating expenses increased 106.2% to USD 8.0 million, compared with USD 3.9 million in the same period of 2022.

Net loss was USD 3.1 million, compared with a net loss of USD 1.0 million in the same period of 2022.

“We are very pleased with our third-quarter financial results,” said Ispire CFO Michael Wang. Revenue grew strongly by 26.9%, while gross profit increased by 51.9%, benefiting from a favorable product mix and economies of scale driven by higher sales volume. “We look forward to a strong finish to this fiscal year and expect fourth-quarter revenue from cannabis vaping products to grow sequentially by 58% to 98%.”

According to the press release, as of March 31, 2023, Ispire had USD 24.0 million in cash and cash equivalents and USD 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 USD 7.00 per share, including the over-allotment option.

The stock began trading on Nasdaq on April 4, 2023. The offering generated gross proceeds of approximately USD 21.7 million, with net proceeds of USD 18.5 million after expenses and underwriting discounts.