CleanCore Solutions, Inc. Projects Over 125% Sequential Revenue Growth for the Fourth Quarter of Fiscal 2024 Compared to Third Quarter of Fiscal 2024 and Over 50% Revenue Growth Compared to the Fourth Quarter of Fiscal 2023

Rhea-AI Summary

CleanCore Solutions (NYSE American: ZONE) projects over 125% sequential revenue growth for Q4 FY2024 compared to Q3 FY2024, and over 50% revenue growth compared to Q4 FY2023. The company expects gross margins to increase both sequentially and year-over-year. CEO Clayton Adams attributes this growth to a focus on direct sales and a well-received recurring revenue model. CleanCore's strategy aims to boost revenue and accelerate profitability. The company is gaining traction, particularly with large Fortune 100 clients exiting pilot programs successfully. An investor conference call will be held to discuss the full fiscal year results.

Positive

• Projected over 125% sequential revenue growth for Q4 FY2024 compared to Q3 FY2024.
• Expected over 50% revenue growth for Q4 FY2024 compared to Q4 FY2023.
• Anticipated increase in gross margins both sequentially and year-over-year.
• Successful execution of a direct sales focus and recurring revenue model.
• Improvement in operating margins and a solid path toward generating meaningful cash flow.
• Gaining market traction with large Fortune 100 clients.

Negative

• None.

Financial Analyst

CleanCore Solutions' projected revenue growth for the fourth quarter of fiscal 2024 is impressive, with an expected 125% increase sequentially and over 50% year-over-year growth. This kind of significant uptick is a strong indicator of effective business strategies, particularly their focus on direct sales and recurring revenue models. Both of these strategies can lead to sustainable, long-term revenue streams, which is positive for investors.

Moreover, the increase in gross margin suggests improved operational efficiency. Gross margin is a key metric because it measures the portion of revenue that exceeds the cost of goods sold, indicating how well a company is controlling its production costs. The fact that both gross and operating margins have improved reflects positively on management's ability to optimize costs while scaling the business.

CleanCore’s alignment with environmentally friendly products also taps into the growing demand for sustainable solutions. This could translate into a steady customer base, especially among large corporations that prioritize sustainability.

While the growth figures are promising, potential investors should keep an eye on the formal financial results and subsequent investor conference call to get a complete picture of the company's financial health and future projections.

Market Research Analyst

The market for environmentally friendly cleaning products is expanding rapidly and CleanCore Solutions is clearly capitalizing on this trend. Their ability to convert pilot programs with Fortune 100 clients into long-term contracts is a strong validation of their product's efficacy and market fit. These large clients not only provide substantial revenue but also serve as endorsements that can help secure additional business.

The transition to a recurring revenue model is particularly noteworthy. Recurring revenue from subscriptions or ongoing service agreements tends to be more predictable and stable compared to one-time sales. This model aligns well with investor interests as it can smooth out revenue streams and reduce volatility. However, it’s essential to monitor how effectively CleanCore can maintain and expand these recurring contracts over time.

Furthermore, the projected improvements in gross margin are noteworthy. Higher margins from direct sales and manufacturing efficiencies suggest the company is not only growing its top line but also managing costs effectively, which could lead to enhanced profitability.

Overall, CleanCore appears well-positioned within its market, but sustained performance and execution of their growth strategy will be key to watch in the coming quarters.

Gross margin for the fourth quarter of fiscal 2024 expected to have increased both sequentially and year-over-year

Omaha, NE, July 09, 2024 (GLOBE NEWSWIRE) -- CleanCore Solutions, Inc. (NYSE American: ZONE) (“CleanCore” or the “Company”), developer of patented technology that works as a safe and low-cost replacement for traditional cleaning chemicals, today reported preliminary selected unaudited financial results for the 2024 fiscal year ended June 30, 2024, and provided a business update.

“We are proud to report that we project strong growth for our fourth quarter and 2024 fiscal year,” commented Clayton Adams, Chief Executive Officer of CleanCore. “Specifically, revenue for the fourth quarter of fiscal 2024 is projected to have increased sequentially by over 125% compared to the third quarter of 2024 and over 50% when compared to the fourth quarter of last year, demonstrating the successful execution of our growth strategy. In particular, we have refocused our efforts on direct sales while implementing a recurring revenue model that has been very well received by customers. As a result, we believe that our strategy will allow us to continue to increase our revenue and accelerate our path to profitability. Additionally, we project our gross margin increased both sequentially and year-over-year reflecting the higher margins of our direct sales model and our continued manufacturing efficiencies that were recently implemented. Importantly, we saw a significant improvement in our operating margins, and based on our current trajectory, believe we are on a solid path toward generating meaningful cash flow.”

“We are rapidly gaining traction in the market, as evidenced by the growth in our sales pipeline, as customers seek environmentally friendly products that also positively impact their bottom line. Notably, many of our large Fortune 100 clients are coming out of pilot programs with exceptional results and we expect these customers will be an additional growth driver in the months ahead. Overall, we believe that companies across multiple industries are beginning to embrace our chemical-free approach and the associated cost savings. As a result, we are highly encouraged by the outlook for the business. We look forward to formally reporting our financial results for the fiscal year ended June 30, 2024, and hosting a concurrent investor conference call to provide additional updates.”

About CleanCore Solutions

CleanCore Solutions, Inc. (NYSE American: ZONE) is dedicated to revolutionizing cleaning and disinfection practices by harnessing the power of its patented aqueous ozone technology. The Company’s mission is to empower its customers with cost-effective, sustainable solutions that surpass traditional cleaning methods. Through innovation and commitment to excellence, CleanCore strives to create a healthier, greener future for generations to come.

For more information, please visit https://www.cleancoresol.com/.

Forward Looking Statements

This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on the management’s beliefs, assumptions, and expectations of CleanCore’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although CleanCore believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. CleanCore does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Forward-looking statements are subject to a number of factors, risks, and uncertainties, some of which are not currently known to us, that may cause CleanCore’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the SEC.

Investor Relations:
Crescendo Communications, LLC
Email: zone@crescendo-ir.com
Tel: (212) 671-1020

FAQ

What revenue growth is projected for CleanCore Solutions (ZONE) in Q4 FY2024?

CleanCore Solutions projects over 125% sequential revenue growth for Q4 FY2024 compared to Q3 FY2024 and over 50% growth compared to Q4 FY2023.

How has CleanCore Solutions' (ZONE) gross margin changed for Q4 FY2024?

CleanCore Solutions expects gross margins to have increased both sequentially and year-over-year for Q4 FY2024.

What strategy has CleanCore Solutions (ZONE) implemented to drive revenue growth?

CleanCore Solutions has refocused on direct sales and implemented a recurring revenue model that has been well received by customers.

What market traction is CleanCore Solutions (ZONE) experiencing?

CleanCore Solutions is gaining market traction, particularly with large Fortune 100 clients exiting pilot programs successfully.

When will CleanCore Solutions (ZONE) formally report their financial results for FY2024?

CleanCore Solutions will formally report their financial results for the fiscal year ended June 30, 2024, and host an investor conference call to provide additional updates.