NASDAQ$NOTV

Inotiv Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$119M

Previous: $151M-21.4%
EPS

-$1.86

Previous: -$0.39-376.9%
Adjusted EBITDA

$3.08M

No prior period
Adj. EBITDA % Revenue

2.6%

No prior period
Capital Expenditures

-$7.02M

No prior period
Free Cash Flow

-$48.1M

Previous: -$9.99M-381.1%
Net Income

-$48.1M

Previous: -$9.99M-381.1%
Operating Income

-$43.1M

Previous: -$2.13M-1929.0%
Gross Profit

$794K

Previous: $151M-99.5%
Cash & Equivalents

$32.7M

Previous: $24.6M+32.9%
Total Assets

$815M

Previous: $869M-6.1%
Stock-Based Comp

$1.88M

Previous: $1.78M+5.8%

Revenue & EPS history

Inotiv · Revenue · Quarterly

$119M

Q2 2024-21.4%vs Q2 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Inotiv · $158M total across 2 segments · Q3 2023

  • RMS
    $111M-17.5%
  • DSA
    $46.8M-2.3%

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.

Tailwinds

  • 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.

Headwinds

  • Significant impact of NHP revenue on consolidated revenue and margins.
  • Current uncertainty in customer demand for NHPs.
  • Withdrawal of financial guidance for fiscal year 2024.
  • Revenue in this reporting period was less than expected.
  • Weak NHP demand and a decrease in early-stage discovery work and orders contributed significantly to the period's results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.4%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+5.6%

Avg return

30 days after

39%

25 / 64 earnings

Positive

+51.3%

Q4 2022

Best reaction

-35.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-3.6%-0.2%-72.5%
Q1 2026-14.3%-33.3%-7.1%
Q4 2025-6.3%-9.6%-42.6%
Q2 2025+11.2%+4.5%+33.8%
Q1 2025-12.9%-8.9%-41.8%
Q4 2024+0.8%-2.6%+7.4%
Q3 2024+5.0%-5.0%-15.7%
Q2 2024+0.9%-13.2%-17.0%
Q1 2024+15.0%+45.5%+126.5%
Q4 2023-24.6%-7.1%+17.2%
Q3 2023-35.7%-40.7%-49.0%
Q2 2023-7.0%+0.2%-13.1%
Q1 2023+4.5%+4.4%-30.1%
Q4 2022+51.3%+67.4%+47.4%
Q3 2022+24.9%+33.9%+16.1%
Q2 2022+42.5%+60.3%+21.1%
Q1 2022-18.7%-28.8%-47.9%
Q4 2021-13.0%+9.7%-19.8%
Q3 2021+6.5%+3.2%+13.1%
Q2 2021+4.2%+9.3%+9.6%
Q1 2021+25.2%+34.7%+48.4%
Q4 2020+20.9%+13.6%+74.3%
Q3 2020-12.8%-15.7%-10.6%
Q2 2020+6.2%+13.2%+25.4%
Q1 2020-12.3%-13.1%-20.4%
Q4 2019+13.7%+10.8%+34.5%
Q3 2019-4.8%+16.2%+73.8%
Q2 2019-2.9%-4.8%-4.3%
Q1 2019-4.9%-2.1%+31.9%
Q4 2018-2.3%-2.3%+6.8%
Q3 2018+0.0%+6.7%+7.3%
Q2 2018+0.6%-2.3%-5.2%
Q1 2018-19.6%-16.4%-15.3%
Q4 2017-3.9%-5.7%-22.1%
Q3 2017-4.0%-2.8%-9.7%
Q2 2017+6.3%+3.2%+5.7%
Q1 2017+23.1%+20.9%+64.8%
Q4 2016+10.0%-1.2%+17.5%
Q3 2016-13.6%-4.3%-18.6%
Q2 2016-6.9%
Q1 2016-14.3%
Q4 2015-3.1%
Q3 2015-8.6%
Q2 2015-1.9%
Q1 2015-5.5%
Q4 2014-7.5%
Q3 2014+15.2%
Q2 2014-2.3%
Q1 2014-9.8%
Q4 2013+9.6%
Q3 2013+25.9%
Q2 2013+9.6%
Q1 2013+3.4%
Q4 2012-5.9%
Q3 2012+4.8%
Q2 2012-7.5%
Q1 2012+0.0%
Q1 2011+0.0%
Q4 2011-3.8%
Q2 2011-3.8%
Q4 2010-4.3%
Q3 2011-4.3%
Q3 2010-4.3%
Q2 2010-3.2%

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