Loading...
•
Dec 31, 2021
Inotiv Q1 2022 Earnings Report
Inotiv's Q1 2022 financial results were announced, highlighting significant revenue growth driven by strategic acquisitions and internal expansion.
Key Takeaways
Inotiv reported a significant increase in revenue for Q1 2022, primarily driven by the acquisition of Envigo and growth in both DSA and RMS segments. The company experienced a substantial rise in total revenue, gross profit, and adjusted EBITDA, but also reported a net loss due to increased operating expenses, including stock compensation and fair value remeasurement of convertible notes.
Total revenue increased by 370.4% to $84.2 million, driven by DSA and RMS revenue growth.
DSA revenue increased by $14.9 million due to acquisitions and internal growth.
RMS revenue reached $51.4 million, primarily from the Envigo acquisition.
Adjusted EBITDA increased by 621.4% to $10.1 million, representing 12.0% of total revenue.
Inotiv
Inotiv
Inotiv Revenue by Segment
Revenue by Segment
RMS Revenue
CapyFin.comDSA Revenue
CapyFin.com Forward Guidance
Inotiv anticipates continued revenue growth and margin expansion, driven by strategic acquisitions and internal investments. The company expects to benefit from cross-selling opportunities and a focus on superior client experiences.
Positive Outlook
- Strong DSA backlog of $104.6 million indicates robust near-term revenue growth.
- Strategic acquisitions of Plato BioPharma and ILS enhance service offerings.
- Partnership with Synexa Life Sciences strengthens biomarker platform.
- Acquisition of Envigo provides access to critical research models and mitigates supply bottlenecks.
- Investments in G&A support new services and expansion.
Challenges Ahead
- Net loss of $(83.0) million due to stock compensation expense and fair value remeasurement of convertible notes.
- Decrease in gross profit percentage due to lower margins on RMS products.
- Increased operating expenses due to acquisitions and infrastructure build-out.
- Global research model demand outstrips supply, creating potential supply bottlenecks.
- Integration of acquired businesses may present challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income