Ispire Raises Q4 Hardware Revenue Guidance to US$14M–15M

Ispire Technology Inc. (NASDAQ: ISPR) announced on June 29 that it has raised its revenue guidance for cannabis vaping hardware for the fourth quarter from the previous estimate of $12-15 million to $14-15 million. Ispire's fiscal year 2023 fourth quarter and full year ended June 30, 2023.
Ispire's CFO Michael Wang stated that although strong performance was already anticipated for the fourth quarter, hardware revenue is expected to reach the upper limit of previous estimates, with very strong growth in the third quarter attributed to market acceptance of Ispire's cannabis vaping technology, which has helped boost orders for medical and recreational products.
Data shows that Ispire began selling cannabis vaping hardware in mid-2020. After the latest revenue forecast for the fourth quarter of cannabis vaping hardware was raised, it is expected to grow by 247%-271% year-on-year compared to the fourth quarter of 2022, and by 84%-98% quarter-on-quarter. Additionally, Ispire expects total revenue for the fourth quarter to be between $29 million and $31 million, representing a 33% to 42% increase compared to the fourth quarter of 2022.
Furthermore, a press release from Ispire on June 26 indicated that it raised approximately $7.5 million through a private stock offering. At the same time, Ispire completed the sale of over 1.1 million shares of common stock at approximately $7.14 per share on June 26. The total amount raised from the stock sale was about $8 million, and the placement agent received approximately $500,000 in fees to facilitate the transaction.
Ispire plans to use the proceeds from the stock sale to develop its manufacturing operations in California and Vietnam, as well as for R&D and marketing initiatives. Thanks to recent financing and the upward revision of revenue expectations, Ispire's stock price has climbed to new highs. As of now, Ispire's stock price is $10.01, with a market capitalization of $542.8 million.