AITX's Quarterly Revenue Up 50%, Forecasts Up to 5x Possible Growth for FY2024
Detroit, Michigan, Jan. 20, 2023 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc., (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions for enterprise clients, today announced in its FY 2023 3rd quarter SEC filings that its quarter over quarter (Q3 over Q2) revenue increased 50%. The Company also noted that gross margin increased nearly 15% from 50% to 57%. AITX is a fully reporting SEC company that files detailed annual and quarterly reports with the SEC.
The Company has also projected that the results of fiscal year 2024 are expected to yield approximately $800,000 in monthly recurring revenue by February 2024, which if achieved would place the Company in a positive cash flow position.
Highlights from Q3 of Fiscal Year 2023:
During Q3, there was a 50% increase in revenue from Q2, moving from $267,484 to $402,399. This increase was primarily attributed to an augmented number of units purchased by the Company's largest single client. Recurring monthly revenue on units purchased by this particular client begins after 24 months of deployment.
Gross profit percentage increased to 57% from 50%, Q3 over Q2. This gross profit margin (GPM) increase is the result of improvements in supply chain issues and improved production processes. The Company forecasts that the GPM over time should improve significantly. The Company has set a target GPM of 75% by the end of fiscal year 2024.
The total operating expenses for the 3rd quarter ending November 30, 2022 amounted to $3.09 million, representing a 9% decline from the previous quarter. This decrease can be attributed to a reduction in hardware expenditures used for Research and Development. The Company anticipates that operating expenses will rise in the 4th quarter of FY2023 and throughout fiscal year 2024 as a result of the development of projects such as ROAMEO 3.x, RADDOG 2.x, and other projects that are yet to be announced. Furthermore, the Company plans to expand its staff from approximately 85 to 100 over the next several months, which will also contribute to an increase in operating expenses.
The Company reported that as of January 16, 2023, there were approximately 300 units deployed with approximately 290 units on backorder, in production or enroute to deployment. Additionally, the Company has reported a total authorized dealer count of 55. The Company distributes its products through a combination of direct sales to end-users and opportunities developed through the dealer channel.
Fiscal Year 2024 Forecast:
RAD’s sales funnel has experienced substantial growth in both volume and value.
RAD is working towards adding the following deployments to be in place by February 29, 2024:
Several new clients are expected to receive their deployments in FY2024 and are expected to be public. Security is generally a private corporate function and we note that prior clients that have been publicized have been inundated with shareholder phone calls looking for further verification. It is for these reasons that we will continue to rarely pursue publicization of end users.
FY2024 will feature balancing efforts on cost savings with accelerated growth in order to increase probability of achieving targeted positive cash flow targets.
The realization of the deployments will result in the Company's recurring monthly revenues reaching approximately $800,000, and if achieved, would enable the Company to attain positive cash flow.
“Our team, investors, supporters, customers, and followers have worked hard for us to materially increase our sales and meet our forecasted goals,” said Steve Reinharz, AITX CEO. “The technology that we’ve developed, that we’re building upon, and that we own, is transforming how legacy security is utilized, paid for, and how it delivers value to its users. I thank everyone for their hard work in bringing the Company to this point. We’re far from over, but we’ll continue on this mission, and I couldn’t be happier.”
“Our dealer network, solution set and staff are geared up to achieve the stated goals”, said Mark Folmer, President of AITX’s primary subsidiary Robotic Assistance Devices, Inc., (RAD). “We’ve fought through so many challenges to get to this point, we have a strong record of winning and you can count on this team working to overachieve the results.”
AITX through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD solutions are specifically designed to provide a cost savings to businesses of between 35%-80% when compared to the industry’s existing and costly manned security guarding and monitoring model. RAD delivers this tremendous costs savings via a suite of stationary and mobile robotic solutions that complement, and at times, directly replace the need for human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.
RAD has a prospective sales pipeline of over 35 Fortune 500 companies and numerous other client opportunities. RAD expects to continue to attract new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time.
CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
The financial projections of the Company (the “Projections”) set forth above constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements or industry standards may differ materially from those express or implied in in such forward-looking statements. One should not place undue reliance upon the Projections presented herein. The underlying assumptions to the Projections were prepared internally by the Company’s management, and were not prepared with a view towards compliance with published SEC or the American Institute of Certified Public Accountants for preparation and presentation of financial forecasts or generally accepted accounting principles. Neither the Company’s independent auditors, nor any other independent accountants, have compiled, examined or performed any procedures or review with respect to the Projections, nor have they expressed any opinion or given any form of assurance with respect to such information or its achievability. Furthermore, the Projections are necessarily based on numerous variables, assumptions and estimates that are inherently uncertain, many of which are beyond the Company’s control, including a wide variety of industry performance, general business, economic, regulatory, market and financial conditions, as well as matters specific to the Company’s business. The Projections should not be regarded as an indication that any of Company or its affiliates or management considered to be predictive of actual future events, including future revenues, results of operations, and stock price. Actual results will likely vary from the Projections, and such variations may be material. Neither the Company nor its management can give you any assurance that actual results will not differ materially from the Projections. The Projections should be read together with the Company’s historical financial statements, which are available for review at: sec.gov.
About Artificial Intelligence Technology Solutions (AITX)
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