FREDERICK, Md. - TOMI Environmental Solutions, Inc. (NASDAQ:TOMZ), a global provider of disinfection and decontamination solutions, announced its preliminary unaudited revenue for the second quarter ended June 30, 2024. The company expects to report revenues of approximately $3.0 million, marking a 10% year-over-year increase from the second quarter of 2023 and a substantial 170% rise from the first quarter of 2024.
Sales of the company's Binary Ionization Technology (BIT) solutions are projected to grow by 31% compared to the same quarter the previous year and by 171% sequentially over the first quarter of 2024.
TOMI's CEO, Dr. Halden Shane, attributed the anticipated improved financial results to strategic growth initiatives, expansion of sales channels, and a growing customer base. He highlighted the strongest quarterly revenue since the Covid pandemic, driven by demand for the company's Custom Engineered Systems (CES) and the SteraMist Hybrid, a semi-permanent solution launched last year.
The company also noted that it has nearly matched the total number of mobile equipment sales for the entire previous year. Dr. Shane emphasized the expectation of continued growth for the remainder of the year, aligning with analyst estimates.
The preliminary financial results are based on management's estimates and are subject to changes upon completion of the company's standard quarter-end closing procedures and review by independent auditors. The full second-quarter results are expected to be announced in the first week of August 2024.
TOMI Environmental Solutions, specializing in environmental solutions for indoor surface disinfection, utilizes its SteraMist brand products to deliver its Binary Ionization Technology.
The technology, developed with a defense grant from DARPA, uses a fog of ionized Hydrogen Peroxide to kill germs without causing harm to surfaces or the environment.
The company's products cater to a wide range of commercial structures and have been used in various settings, including healthcare, hospitality, education, and residential spaces. TOMI is a member of several industry associations and is committed to providing training and application protocols for its clients.
In other recent news, TOMI Environmental Solutions has announced a series of developments. The company's Q1 2024 revenue was reported at $1.1 million, falling short of expectations, however, with a substantial backlog of firm orders valued at $900,000, the company anticipates sequential growth with reduced losses in the following quarter.
TOMI aims to reach profitability by the third quarter of 2024, with two CES systems expected to begin generating revenue in Q4 2024.
In a significant move, TOMI secured a $1.2 million deal with Enviro-Mist Inc., a division of EMAQ Group, for the purchase of twenty SteraMist Environment Systems. This transaction is set to contribute to TOMI's Q2 2024 revenue. Furthermore, an exclusive partnership with Enviro-Mist to serve the pharmaceutical sector in the Western United States is expected to generate an estimated annual revenue of $60,000 from BIT Solution sales.
In addition to these developments, TOMI announced two key sales in the Life Sciences sector, marking the company's continued expansion in the industry. The first sale involves a purchase agreement with a major private pharmaceutical company, while the second deal facilitated the sale of a SteraMist Hybrid System to BeSpoke Pharmaceuticals.
InvestingPro Insights
In light of TOMI Environmental Solutions, Inc.'s (NASDAQ:TOMZ) recent preliminary revenue announcement, certain metrics and expert analysis from InvestingPro provide a deeper understanding of the company's financial health and market performance. With a reported year-over-year revenue increase for Q2 2024, it is noteworthy that analysts are anticipating sales growth for the current year. This aligns with the company's reported revenue surge and supports the CEO's positive outlook for continued expansion.
From a profitability perspective, TOMI's gross profit margin stands impressively at 58.36% for the last twelve months as of Q1 2024, according to InvestingPro data. This indicates that the company is effectively controlling its cost of goods sold and maintaining a strong margin on its products, which is crucial for its financial stability and potential for reinvestment in growth initiatives.
However, an InvestingPro Tip points out that the company is quickly burning through cash, which could be a concern for its operational sustainability. Moreover, with a negative P/E ratio of -4.14, it suggests that investors are wary of the company's earnings potential. Additionally, the stock has experienced a 27.9% drop in price total return over the last month, reflecting high price volatility and a divergence from market trends, as mentioned in another InvestingPro Tip.
Investors may find additional insights on TOMI's stock performance and financial health by exploring the full suite of InvestingPro Tips. For a more comprehensive analysis, including 9 more InvestingPro Tips for TOMZ, visit Investing.com/pro/TOMZ. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering exclusive access to advanced metrics and professional investment tools.
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