What caused INBS's earnings surprises in 2024?

Intelligent Bio Solutions Inc. (INBS) experienced significant earnings surprises in 2024, driven primarily by strong revenue growth and strategic shifts in their business model:

1. **Revenue Growth**: INBS saw a substantial increase in its annual revenue, with a reported growth of 148% year-over-year for the fiscal year ended June 30, 2024. This impressive growth was attributed to market demand, increasing brand and product awareness, and expansion of its customer base. The company's focus on delivering innovative solutions in safety-critical industries, such as construction, manufacturing, transportation, and warehousing and logistics, contributed significantly to this growth.
2. **Cartridge and Reader Sales**: The company reported a 20% increase in cartridge sales and a 26% increase in reader sales for the fiscal year ended June 30, 2024, compared to the prior fiscal year. This increase in sales was driven by the growing number of active customer accounts, which exceeded 400, indicating a strong market acceptance of their products. The recurring revenue from cartridge sales, supported by the continuous supply required for reader operation, further bolstered INBS’s continued growth.
3. **Market Positioning**: INBS's strategic focus on addressing the needs of safety-sensitive industries and its innovative, rapid, and non-invasive testing solutions positioned it well to capitalize on the growing demand for drug screening technologies. The rising positivity rates for drugs in the general U.S. workforce, particularly in industries like construction and manufacturing, highlighted the need for effective testing methods, which INBS's solutions effectively addressed.

In summary, INBS's earnings surprises in 2024 were primarily caused by strong revenue growth driven by market demand, strategic sales focus, and effective market positioning.