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Jun 30, 2021
Inotiv Q3 2021 Earnings Report
Revenue increased and strategic acquisitions were completed.
Key Takeaways
Inotiv, Inc. reported a 45.2% increase in revenue to $22.9 million for Q3 FY 2021, driven by internal growth and acquisitions of HistoTox Labs and Bolder BioPATH. However, the company experienced a net loss of $2.3 million, or $(0.15) per diluted share, due to increased operating expenses related to strategic investments and acquisitions.
Revenue grew by 45.2% to $22.9 million, driven by internal growth and acquisitions.
Gross profit increased by 51.0% to $7.6 million, with a gross margin of 33.4%.
Net loss was $(2.3) million, or $(0.15) per diluted share.
Adjusted EBITDA increased by 147.7% to $2.2 million.
Inotiv
Inotiv
Forward Guidance
Inotiv anticipates continued strong near-term growth, reinforced by recent acquisitions, expansion plans, new services, and a quarter-end backlog of $62.0 million. The company believes strategic investments will augment future growth, deliver higher operating margins, and improve client service.
Positive Outlook
- Tremendous cross-selling opportunities across integrated services.
- Continued efforts to deliver superior client experiences.
- Recent acquisitions are expected to contribute to growth.
- Current expansion plans and new services are anticipated to drive growth.
- Strong quarter-end backlog of $62.0 million.
Challenges Ahead
- Reported earnings this quarter were impacted by strategic investments in internal startup costs.
- Acquisition-related expenses affected earnings.
- Recruiting and retention-related expenses impacted earnings.
- Unallocated corporate G&A as a percent of revenue to decline over the long-term.
- The Company’s long-term objective is for unallocated corporate G&A to reach between 6% and 8% of revenue.