Executive Summary
Ispire Technology Inc reported Q4 2023 revenue of $37.34 million, generating gross profit of $10.56 million and a gross margin of 28.3%. The quarter showed a meaningful top-line improvement year over year (YoY) of 14.5%, but the company remains unprofitable at the operating level with an operating loss of $3.35 million and a net loss of $3.42 million. EBITDA was $(1.66) million, and the reported net loss per share was $(0.0606). Despite revenue growth, the company continued to hemorrhage cash from operations, with negative operating cash flow of $(1.42) million and free cash flow of $(2.38) million for the quarter.
Key Performance Indicators
QoQ: 40.98% | YoY:-687.52%
QoQ: 42.50% | YoY:-8 279.58%
QoQ: 44.91% | YoY:-7 475.00%
Key Insights
Revenue: $37.34M in Q4 2023; YoY +14.45%, QoQ +24.42%. Gross Profit: $10.56M; Gross Margin 28.29%; YoY Gross Profit +59.44%, QoQ +72.81%. Operating Income: $(3.35)M; Operating Margin −8.98%; YoY Margin deterioration (−687.52%), QoQ improvement +40.98%. Net Income: $(3.42)M; Net Margin −9.16%; YoY Net Income decline (−8,279.58%), QoQ +42.50%. EPS: −$0.0606; YoY −7,475.00%, QoQ +44.91%. Cash & Liquidity: Cash $35.07M; Net debt negative $(31.67)M; Current ratio 1.19; Quick ratio 1.1...
Financial Highlights
Revenue: $37.34M in Q4 2023; YoY +14.45%, QoQ +24.42%. Gross Profit: $10.56M; Gross Margin 28.29%; YoY Gross Profit +59.44%, QoQ +72.81%. Operating Income: $(3.35)M; Operating Margin −8.98%; YoY Margin deterioration (−687.52%), QoQ improvement +40.98%. Net Income: $(3.42)M; Net Margin −9.16%; YoY Net Income decline (−8,279.58%), QoQ +42.50%. EPS: −$0.0606; YoY −7,475.00%, QoQ +44.91%. Cash & Liquidity: Cash $35.07M; Net debt negative $(31.67)M; Current ratio 1.19; Quick ratio 1.12; Cash flow: Operating cash flow $(1.42)M; Free cash flow $(2.38)M; Capex $(0.96)M. Balance Sheet: Total assets $122.64M; Total liabilities $88.18M; Total stockholders’ equity $34.46M; Accounts receivable unusually high at $60.22M, contributing to a Days Sales Outstanding profile of ~145 days; AR and working capital management warrant close monitoring. Valuation metrics reflect a negative earnings period with a price-to-sales multiple of ~11.36 and price-to-book ~12.31, signaling a high-risk, growth-oriented multiple given current profitability.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
37.34M |
14.45% |
24.42% |
| Gross Profit |
10.56M |
59.44% |
72.81% |
| Operating Income |
-3.35M |
-687.52% |
40.98% |
| Net Income |
-3.42M |
-8 279.58% |
42.50% |
| EPS |
-0.06 |
-7 475.00% |
44.91% |
Key Financial Ratios
operatingProfitMargin
-8.98%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.04
Management Commentary
Transcript data for the QQ4 2023 period is not provided in the supplied materials. As a result, this section cannot quote management commentary or themes directly from an earnings call. In lieu of transcript-derived insights, the analysis focuses on the disclosed financial results, filings, and quarterly trends to assess the business trajectory and risks. If transcript access is supplied, key themes would typically cover strategy execution, cost control initiatives, product mix shifts, regulatory impacts, and channel/distribution updates.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. The company’s QQ4 2023 results indicate ongoing profitability challenges despite top-line growth, with negative operating cash flow and a substantial AR balance. Absent formal guidance, investors should monitor: (1) AR collection dynamics and days sales outstanding trajectory, (2) cost structure optimization (SG&A and COGS) to move toward breakeven, (3) capital allocation decisions (capex vs. strategic investments), (4) potential regulatory developments affecting vaping and cannabis products, and (5) any updates on product expansion or partnerships that could accelerate revenue growth. Based on current metrics, achievability of profitability hinges on improving operating leverage and cash conversion while maintaining or accelerating revenue growth.