INEO Tech at Emerging Growth Conference 97: growth, profit path

INEO Tech Corp. (INEO) showcased significant growth prospects during its participation in the Emerging Growth Conference 97. The company reported revenue exceeding CAD 1 million in Q4, with preliminary September-quarter revenue surpassing CAD 1.3 million. Adjusted EBITDA turned positive, moving from a negative CAD 252,000 in Q4 to near break-even in the latest quarter. The company's annualized revenue run rate is now projected to exceed CAD 5 million.

INEO aims to achieve 2,000 system deployments by June 30, which could generate approximately CAD 2.5 million in annual recurring revenue. The company currently contracts with 12,000 systems and has the potential to generate CAD 12 million or more in annual recurring revenue through its existing customer base. Chief Executive Kyle Hall emphasized the company's steady progress in both revenue growth and operating performance based on its recent financial results.

The company's core business combines loss prevention technology with digital advertising and data services for retailers. INEO's platform replaces older Electronic Article Surveillance systems, offering a comprehensive solution with detection, digital screens, edge processing, and cloud-based services. The company has around 800 systems in the market and targets 2,000 deployments by its fiscal year-end.

A major growth driver is a U.K. pharmacy retailer with 10,000 legacy EAS systems, which could potentially generate CAD 2.5 million in annual recurring revenue once 2,000 systems are installed by year-end.

INEO's unique technical advantage lies in its ability to integrate digital signage with loss prevention hardware, a feat deemed challenging due to electromagnetic interference. The company holds patents in the United States, Canada, and Europe, protecting its method for combining digital display and EAS detection. This integrated platform enables retailers to utilize the system for loss prevention data, video analytics, footfall counting, and advertising.