Loading...
01/10 16:38
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call shows mixed results: strong revenue growth, but declining margins and increased losses raise concerns. The Q&A reveals uncertainties in new product impact and vague customer relationship responses. Despite financing improvements, the lack of clear guidance and production inefficiencies temper optimism. Overall, the sentiment is neutral due to balanced positive and negative factors.
Revenue (Q4 2024) $2.8 million (up from $1.9 million in Q4 2023) - The increase is primarily due to expanded bottle production capacity year-over-year, enabling higher sales volumes, complemented by improvements in smoothie carton and bulk sales.
Revenue (Full Year 2024) $10.7 million (up from $8.1 million in 2023) - The increase is primarily due to expanded bottle production capacity year-over-year, enabling higher sales volumes, complemented by improvements in smoothie carton and bulk sales.
Gross Margin (Q4 2024) 26% (down from 33% in Q4 2023) - The decrease is attributed to temporary production inefficiencies and increased logistic costs experienced in the fourth quarter.
Adjusted Gross Margin (Q4 2024) 30% (down from 33% in Q4 2023) - The decrease is attributed to temporary production inefficiencies and increased logistic costs experienced in the fourth quarter.
Gross Margin (Full Year 2024) 34% (down from 35% in 2023) - The decrease is attributed to temporary production inefficiencies and increased logistic costs experienced in the fourth quarter.
Adjusted Gross Margin (Full Year 2024) 37% (up from 35% in 2023) - The year-over-year improvement is a result of favorable product mix, pricing actions, and a slight improvement in the cost of supply chain components.
Selling, Marketing and Distribution Expense (Q4 2024) $872,000 (up from $624,000 in Q4 2023) - The increase is due to increased sales and marketing personnel costs, broker commissions, and outbound freight as a result of increased shipments.
Selling, Marketing and Distribution Expense (Full Year 2024) $3.1 million (up from $2.6 million in 2023) - The increase is due to increased sales and marketing personnel costs, broker commissions, and outbound freight as a result of increased shipments.
G&A Expenses (Q4 2024) $620,000 (down from $624,000 in Q4 2023) - The slight decrease reflects stable management costs.
G&A Expenses (Full Year 2024) $3 million (up from $2.7 million in 2023) - The increase is driven by an increase in management headcount, stock-based compensation, and the non-recurrence of recognizing employee retention tax credit benefits in 2023.
Net Loss (Q4 2024) $852,000 (up from $701,000 in Q4 2023) - The increase in net loss is due to the aforementioned production inefficiencies and increased logistic costs.
Net Loss (Full Year 2024) $2.8 million (comparable to the full year of 2023) - The net loss remained stable year-over-year.
Adjusted EBITDA (Q4 2024) Loss of approximately $561,000 (compared to a loss of approximately $427,000 in Q4 2023) - The increase in loss is attributed to start-up costs of onboarding new co-manufacturers and higher logistics costs.
Adjusted EBITDA (Full Year 2024) Loss of $1.3 million (compared to a loss of $1.7 million in 2023) - The decrease in loss is due to improved operational efficiencies despite the challenges faced in Q4.
Cash and Accounts Receivable (as of December 31, 2024) Approximately $1.1 million - This reflects the company's liquidity position.
Inventory (as of December 31, 2024) Approximately $1.5 million - The inventory build was in preparation for a seasonally high third quarter.
New Product Launch: Expanded product portfolio with the launch of Pop & Go, 100% Juice Freeze Pops targeting the lunch daypart.
Market Expansion: Achieved 95% coverage across the U.S. education channel with only 5% market penetration, indicating significant growth potential.
Manufacturing Capacity: Secured two new strategic partners for manufacturing, expected to reach full capacity by end of Q2 2025.
Financial Foundation: Secured $3 million in gross financing and a $1.5 million line of credit to support growth strategy.
Growth Guidance: Expecting revenue growth of 35% to 55% in 2025, driven by existing customer orders and new opportunities.
Manufacturing Challenges: The company faced temporary cost pressures in Q4 2024 due to the onboarding of new co-manufacturers after losing their largest co-manufacturer in 2022. This transition is expected to be completed by the end of Q2 2025.
Supply Chain Issues: Higher supply chain expenses were incurred from sourcing products from multiple locations while waiting for new equipment to arrive, which caused inefficiencies in production.
Financial Risks: The company reported a net loss of $852,000 in Q4 2024, compared to a loss of $701,000 in Q4 2023, indicating ongoing financial challenges despite record revenue.
Market Penetration: The company is currently at only 5% market penetration in the education channel, which presents both a risk and an opportunity for growth.
Operational Costs: Increased logistics costs and production inefficiencies were noted due to the need to source products from multiple locations, impacting the company's ability to achieve positive adjusted EBITDA.
Regulatory and Compliance Risks: The company mentioned the need to consider regulatory issues in their forward-looking statements, which could impact future operations.
Strategic Investments: 2024 was a transformative year with significant strategic investments and operational enhancements.
Manufacturing Capabilities: Secured and began onboarding two new strategic partners to address manufacturing capabilities after losing the largest co-manufacturer.
Product Portfolio Expansion: Launched Pop & Go, 100% Juice Freeze Pops targeting the lunch daypart, with expectations for material revenue contribution in 2025.
Sales Network: Built a robust sales network with 95% coverage across the U.S., with only 5% market penetration indicating significant growth potential.
Financial Foundation: Secured non-dilutive financing including a $1.5 million line of credit and raised $3 million through common stock sale.
Revenue Guidance: Expecting record revenue growth of 35% to 55% in 2025, driven by existing customer orders and new opportunities.
Margin Improvement: Expecting meaningful margin improvement in the second half of 2025 as operational investments yield results.
Manufacturing Capacity: Full manufacturing capacity expected by the end of Q2 2025, aligning with high season demand.
Adjusted EBITDA: Plans to achieve positive adjusted EBITDA impacted by onboarding costs, with expectations for improvement as operations stabilize.
Common Stock Sale: Raised $3 million through the sale of common stock.
Line of Credit: Secured a $1.5 million line of credit.
Non-Dilutive Financing: Secured non-recourse litigation financing.
Financing in February 2025: Secured $3 million in gross financing to enhance financial position.
The earnings call revealed strong financial performance with a 16% YoY revenue growth, improved margins, and positive adjusted EBITDA. The company is addressing manufacturing challenges and expanding capacity, which should further enhance performance. Positive market penetration in the education sector and a $2.3 million government grant for facility retrofitting are additional positives. While risks exist, such as integration and liquidity management, these are being actively managed. Overall, the strategic initiatives and financial improvements suggest a positive stock price movement in the near term.
The earnings call presents a mixed picture. Despite some positive aspects like new partnerships and product launches, there are concerns about liquidity and declining gross margins. The Q&A highlights unresolved issues and unclear management responses, adding uncertainty. While optimistic guidance and strategic expansion plans exist, the financial health and execution risks temper enthusiasm, leading to a neutral sentiment.
The earnings call highlights several concerns: increased net loss, decreased gross margins, and significant operational risks. While the company secured growth financing, the financial performance indicates negative trends, with adjusted EBITDA turning from a gain to a loss. The Q&A session reveals uncertainties in manufacturing capacity and market penetration, which could further hinder growth. Despite some positive aspects, such as growth financing and customer interest, the overall sentiment is negative due to financial and operational challenges, leading to a likely stock price decline.
The earnings report reveals increased revenue but declining margins and higher losses, which are concerning. However, the optimistic outlook for the new product line and stable full-year net loss mitigate some negative sentiment. The Q&A section highlights uncertainties in customer relationships and product impact, adding to the mixed sentiment. Without a market cap, the prediction is neutral, assuming typical market reaction to both positive and negative factors.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
