TOMI Environmental Solutions, Inc. (TOMZ): Boston Consulting Group Matrix [10-2024 Updated]
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TOMI Environmental Solutions, Inc. (TOMZ) Bundle
In the dynamic landscape of environmental solutions, TOMI Environmental Solutions, Inc. (TOMZ) showcases a diverse portfolio that can be categorized into four distinct segments of the Boston Consulting Group Matrix. With a remarkable 73% revenue growth in 2024 and an impressive 85% increase in SteraMist product revenue, TOMZ's strengths shine brightly. However, challenges persist, including operational losses and cash flow fluctuations. Dive deeper to explore how TOMZ's offerings align with the matrix's Stars, Cash Cows, Dogs, and Question Marks.
Background of TOMI Environmental Solutions, Inc. (TOMZ)
TOMI Environmental Solutions, Inc. (“TOMI”, “we”, “our”, or the “Company”) is a global leader in the field of bacteria decontamination and infectious disease control. The company is primarily known for its environmentally friendly solutions for indoor air and surface disinfection and decontamination. Its flagship product, SteraMist, utilizes a patented technology known as Binary Ionization Technology (BIT) to deliver a hydrogen peroxide-based fog or mist that effectively sanitizes various environments.
BIT technology was initially developed under a grant from the United States Defense Advanced Research Projects Agency (DARPA) to address biological threats. This innovative process transforms a low concentration hydrogen peroxide solution into ionized Hydrogen Peroxide (iHP) using cold plasma science. The resulting fog contains submicron hydroxyl radical particles that can achieve a 6-log (99.9999%) kill rate of pathogens without leaving harmful residues, as the only by-products are oxygen and humidity.
TOMI's product offerings are registered with the U.S. Environmental Protection Agency (EPA) and comply with the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). The SteraMist BIT was first registered as a hospital-healthcare disinfectant in June 2015 and has since been recognized for its effectiveness against a wide range of pathogens, including those responsible for hospital-acquired infections (HAIs).
The company operates through four main divisions: Life Sciences, Hospital-Healthcare, Food Safety, and Commercial. This structure allows TOMI to strategically address the unique needs and regulatory requirements of diverse industries. Recent developments include the expansion of its SteraMist product line and the introduction of customized systems tailored to specific industry demands.
In 2024, TOMI reported a total revenue of approximately $6.67 million for the first nine months of the year, reflecting a 14.5% increase compared to the previous year. This growth is attributed to a significant rise in the sales of SteraMist products, particularly in international markets.
Overall, TOMI Environmental Solutions, Inc. is positioned as a key player in the disinfection and decontamination market, leveraging advanced technology to meet the growing global demand for effective hygiene solutions.
TOMI Environmental Solutions, Inc. (TOMZ) - BCG Matrix: Stars
Significant revenue growth in 2024, up 73% year-over-year.
Total revenue for the three months ended September 30, 2024, was $2,542,000, representing an increase of $1,072,000 or 73% compared to $1,470,000 for the same period in 2023.
SteraMist product revenue increased by 85% in Q3 2024.
SteraMist product-based revenue for the three months ended September 30, 2024, was $1,766,000 compared to $953,000 in the same period of 2023, marking an increase of $813,000 or 85%.
Strong demand for mobile units and higher service revenue.
Revenue from mobile units significantly contributed to overall growth, with the mobile SteraMist equipment sales increasing by 90% in 2024 compared to 2023. Service-based revenue for the three months ended September 30, 2024, was $776,000, up from $517,000, an increase of 50%.
Positive net income of $59,000 for Q3 2024, compared to a loss in Q3 2023.
The net income for the three months ended September 30, 2024, was $59,000, a significant improvement from a net loss of $(900,780) in the same period in 2023.
Expanding international market presence, with international revenues growing 229% year-over-year.
International revenue for the three months ended September 30, 2024, reached $656,000, compared to $199,000 in the prior year, representing an increase of $457,000 or 230%.
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $2,542,000 | $1,470,000 | +73% |
| SteraMist Product Revenue | $1,766,000 | $953,000 | +85% |
| Service Revenue | $776,000 | $517,000 | +50% |
| Net Income | $59,000 | $(900,780) | Improvement |
| International Revenue | $656,000 | $199,000 | +230% |
TOMI Environmental Solutions, Inc. (TOMZ) - BCG Matrix: Cash Cows
Consistent Revenue from Service and Training
For the nine months ended September 30, 2024, TOMI Environmental Solutions reported a total service-based revenue of $1,423,000, reflecting a 7% increase compared to $1,326,000 in the same period for 2023.
Established Brand Recognition in the Decontamination Sector
TOMI has developed a strong brand presence within the decontamination industry, particularly due to its innovative SteraMist technology, which is recognized for its effectiveness in various applications, including healthcare and food safety sectors.
Stable Gross Profit Margin
The gross profit margin for TOMI in the recent quarter stood at 61%, an improvement from 55% in the prior year, indicating effective cost management and a favorable product mix.
Solid Operational Framework Supporting Steady Cash Flow Generation
TOMI maintains a robust operational framework that supports consistent cash flow generation, driven by long-term contracts and a strong customer base. This infrastructure allows the company to efficiently manage its resources and optimize operational costs.
Long-Term Contracts with Key Clients Ensuring Recurring Revenue
TOMI has secured long-term contracts with significant clients, including major corporations like Pfizer and Thermo Fisher Scientific, which ensure a steady stream of recurring revenue. These relationships are pivotal for sustaining the company's cash flow and financial stability.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Service-Based Revenue | $1,423,000 | $1,326,000 | +7% |
| Gross Profit Margin | 61% | 55% | +6% |
| Net Income (Loss) | $59,000 | ($900,780) | Improvement |
| Cash and Cash Equivalents | $809,000 | $1,410,697 | -43% |
TOMI Environmental Solutions, Inc. (TOMZ) - BCG Matrix: Dogs
Persistent Operational Losses
For the nine months ended September 30, 2024, TOMI Environmental Solutions, Inc. reported operational losses totaling $1,221,000.
Decreased Cash Reserves
As of September 30, 2024, the company's cash reserves decreased to $809,000, down from $2,339,000 in the prior period.
High Dependence on Key Vendors
TOMI has a significant reliance on a few key vendors, which accounted for 53% of cost of sales for the three months ended September 30, 2024.
Limited Market Share in a Competitive Landscape
The company continues to struggle with limited market share amid strong competition, with one customer representing 12% of net revenue for the three months ended September 30, 2024.
Underperformance in R&D Spending
Research and development expenses for the nine months ended September 30, 2024, were approximately $186,000, down from $221,000 in the same period of the previous year, indicating a decline of 16%.
| Financial Metrics | 2024 Nine Months Ended | 2023 Nine Months Ended |
|---|---|---|
| Operational Losses | $1,221,000 | $2,176,858 |
| Cash Reserves | $809,000 | $2,339,000 |
| R&D Spending | $186,000 | $221,000 |
| Dependence on Key Vendors | 53% of Cost of Sales | 60% of Cost of Sales |
| Market Share (Top Customer Revenue) | 12% | 32% |
TOMI Environmental Solutions, Inc. (TOMZ) - BCG Matrix: Question Marks
High outstanding warrants and options, totaling over 3 million shares, indicating potential dilution.
As of September 30, 2024, TOMI Environmental Solutions had approximately 5.7 million outstanding warrants and options, which could lead to significant dilution of existing shares.
Uncertain future growth in international markets despite recent increases.
International revenue for the nine months ended September 30, 2024, was $1,501,000, reflecting an 82% increase compared to $826,000 for the same period in 2023. However, the company's ability to sustain this growth remains uncertain as it expands into new territories such as Canada, South Africa, and India.
Need for strategic partnerships to enhance market penetration.
TOMI has formed strategic partnerships to enhance its market presence, such as a partnership with EMAQ, which involved an investment exceeding $1,000,000 in SteraMist iHP equipment. Such collaborations are vital for enhancing market penetration and driving sales.
Fluctuating operational cash flow, with $1,453,000 used in operations for nine months ended September 30, 2024.
For the nine months ended September 30, 2024, TOMI reported a cash usage of $1,453,000 in operations, a decrease compared to $2,362,000 used in the same period in 2023. The fluctuation is attributed to improved operational efficiency and cost-cutting measures.
Ongoing risks associated with global economic conditions impacting demand for services.
The company faces ongoing risks from global economic conditions that could affect demand for its services. This includes potential downturns in key markets and shifts in customer spending due to economic uncertainty.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) | $59,000 | $(901,000) | $960,000 |
| Cash Used in Operations | $(1,453,000) | $(2,362,000) | $909,000 |
| International Revenue | $1,501,000 | $826,000 | $675,000 |
| Outstanding Warrants and Options | 5.7 million | 3.4 million | 2.3 million |
In summary, TOMI Environmental Solutions, Inc. (TOMZ) presents a mixed portfolio as depicted in the BCG Matrix. The company showcases Stars with significant revenue growth and strong demand for its SteraMist products, while Cash Cows provide stable income from established services. However, the Dogs category highlights persistent operational losses and a reliance on key vendors, indicating challenges ahead. Lastly, Question Marks reveal uncertainties in future growth and cash flow fluctuations, underscoring the need for strategic initiatives to navigate competitive pressures and enhance market presence.
Article updated on 8 Nov 2024
Resources:
- TOMI Environmental Solutions, Inc. (TOMZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TOMI Environmental Solutions, Inc. (TOMZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TOMI Environmental Solutions, Inc. (TOMZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.