TOMI Environmental Solutions Releases 2024 Financial Results
TOMI Environmental Solutions Reports Year-End 2024 Financials
Today, TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ), a leader in innovative disinfection and decontamination solutions, released its financial results for the year ended December 31, 2024. The company, known for its unique Binary Ionization Technology (BIT) and the SteraMist product line, revealed notable achievements in revenue and business development.
During the fiscal year, TOMI achieved a year-over-year revenue increase of 5%, enhancing its customer base and diversifying its product offerings significantly. CEO Dr. Halden Shane expressed optimism about the future, stating, "Our progress in securing new partnerships and agreements will bolster our distribution channels and elevate our brand visibility globally, especially as we continue to promote the efficacy of iHP technology across various sectors."
In the fourth quarter specifically, the company faced substantial non-cash charges that affected its GAAP net loss for the quarter and the year. Despite this, when excluding non-cash adjustments, financial performance reflected improvement compared to the previous year. Dr. Shane noted preliminary revenue results for Q1 2025 showed a remarkable rise of 42% compared to the first quarter of last year.
This increase illustrates the strong demand for TOMI's BIT solutions, affirming the company's trajectory as it heads into 2025.
Financial Highlights
Annual Performance Overview
The following insights into TOMI's financial results illustrate its growth trajectory:
- Total sales for the year reached $7,739,000, up from $7,355,000 in 2023. Non-GAAP gross sales excluding returns were approximately $7,966,000, reflecting a 6% increase compared to last year.
- GAAP gross margin was reported at 46%, showing a decrease from 58% in the previous year. However, the non-GAAP gross margin saw a slight increase to 60%, up from 59%.
- The company recorded a GAAP operating loss of $(4,105,000), compared to the loss of $(3,349,000) in the previous year, indicating the impact of ongoing investments in growth.
- Net loss figures showed $(4,477,000) or $(0.22) per share, which was higher compared to the loss of $(3,403,000) or $(0.17) per share in 2023.
Quarterly Analysis
For the fourth quarter results compared to the same quarter in 2023:
- Total quarterly sales were $1,069,000, a decline from $1,528,000 in the same period last year, with non-GAAP gross sales reporting $1,296,000.
- GAAP gross margin reported at (50%) compared to 55% in the prior year, primarily driven by increased production costs and operational overhead.
- Operating losses amounted to $(3,149,000) in the quarter, compared to $(1,171,000) in the previous year, reflecting ongoing investment efforts.
- Net loss accounted for $(3,256,000) or $(0.16) per share in Q4, compared to $(1,226,000) or $(0.06) per share in 2023.
Recent Business Developments
Highlighting the company’s strategic initiatives, TOMI recognized the following accomplishments:
- Approximately $6.035 million in revenue from SteraMist products, a $254,000 increase from the previous year.
- Service revenues increased to $1.704 million for 2024, showing strong demand for iHP services.
- Projected sales backlog at year-end 2024 reached $877,000 and surged to $1,232,000 by the end of March 2025.
- International sales grew by 33%, spurred by key market development in Canada, South Africa, and India.
- Alliances with various partners across multiple sectors, including pharmaceuticals and emergency services, further expanded TOMI's market reach.
Looking Ahead to 2025
As TOMI Environmental Solutions transitions into 2025, the company plans to focus on optimizing its high-margin solutions, driving revenue growth, and reducing operating expenses. The preliminary results for Q1 2025 already paint a positive picture, confirming the management's expectations for an upward trend in profitability and growth.
With strong strategic partnerships and an extensive service offering in disinfection technology, TOMI is poised to enhance its market position and achieve sustained growth in the coming years.
Frequently Asked Questions
What are the key financial results for TOMI in 2024?
TOMI reported a total revenue of $7,739,000 in 2024, with a net loss of $(4,477,000) or $(0.22) per share.
How did the company perform in the fourth quarter?
In Q4, TOMI recorded a loss of $(3,256,000), with total sales of $1,069,000, reflecting challenges in production costs.
What factors contributed to TOMI's revenue growth?
Increased demand for SteraMist products and the expansion of service revenues contributed to the overall revenue growth in 2024.
How is TOMI positioned for the future?
TOMI aims to enhance high-margin solutions, improve financial performance, and maintain strong growth in 2025.
What partnerships are critical to TOMI's strategy?
TOMI has established partnerships across various sectors which are essential for expanding its market presence and distribution capabilities.
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