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Mar 31, 2024
Inotiv Q2 2024 Earnings Report
Inotiv's Q2 2024 financial performance was impacted by weak NHP demand and a decrease in early-stage discovery work, with revenue declining 21.5% year-over-year.
Key Takeaways
Inotiv reported a 21.5% decrease in revenue for Q2 2024, totaling $119.0 million, primarily due to a significant drop in Research Models and Services (RMS) revenue. The company faced a consolidated net loss of $48.1 million, which included a $26.5 million charge related to an agreement in principle with the U.S. Department of Justice. The company withdrew its fiscal year 2024 outlook due to NHP revenue impact and uncertainty in customer demand.
Q2 FY 2024 revenue decreased by 21.5% to $119.0 million compared to Q2 FY 2023, driven primarily by a $32.1 million decrease in Research Models and Services (RMS) revenue.
Consolidated net loss for Q2 FY 2024 was $48.1 million, which included a $26.5 million charge related to an agreement in principle with the DOJ.
Adjusted EBITDA for Q2 FY 2024 was $3.1 million, or 2.6% of total revenue, compared to $17.1 million, or 11.3% of total revenue, in Q2 FY 2023.
The company has reached an agreement in principle with the DOJ to resolve the investigation as to the Company and its subsidiaries.
Revenue by Segment
Forward Guidance
Due to the significant impact that NHP revenue has on our consolidated revenue and margins, and the current uncertainty in customer demand for NHPs, we are withdrawing financial guidance for fiscal year 2024.
Positive Outlook
- Focused on optimizing DSA market share and increasing awards to utilize new services and additional capacity to grow DSA segment revenue.
- Strategic initiatives to increase sales force, optimize sales territory coverage, and focus on sales in Discovery Services.
- Positioned to gain market share and increase awards when biopharma companies increase their level of investment in preclinical studies.
- Focused on client satisfaction through innovation and the development of nimble solutions and custom offerings.
- Steadfast in the execution of long-term strategic plan to achieve financial goals.
Challenges Ahead
- Significant impact of NHP revenue on consolidated revenue and margins.
- Current uncertainty in customer demand for NHPs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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