ZVIA Earnings Prediction
The chart below shows how ZVIA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZVIA sees a +3.64% change in stock price 10 days leading up to the earnings, and a +6.12% change 10 days following the report. On the earnings day itself, the stock moves by -0.33%. This data can give you a slight idea of what to expect for the next quarter's release.
ZVIA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
36.37M
-15.60%
-10.04%
Gross Margin
48.23%
8.46%
17.89%
Operating Margin
-7.84%
-70.42%
-48.93%
Net Margin
-7.81%
-70.09%
-54.65%
EPS
-0.04
-75.00%
-60.00%
No Data Available
ZVIA Earnings Analysis
Zevia PBC Corporation (ZVIA.N) Earnings Conference Call
Positive
Adjusted EBITDA Improvement: 1. Improved Adjusted EBITDA: Zevia reduced its adjusted EBITDA loss to $1.5 million in Q3 2024, a significant improvement from a loss of $9.1 million in Q3 2023, showcasing effective productivity initiatives.
Record Gross Margin Achievement: 2. Record Gross Margin: The company achieved a record gross margin of 49.1%, reflecting a 370 basis point improvement year-over-year, driven by enhanced efficiencies and cost savings.
Cost Savings Target Increase: 3. Increased Annual Cost Savings: Zevia raised its expected annual cost savings target to $15 million, up from the previous estimate of $12 million, indicating effective cost management strategies.
Grocery Channel Sales Surge: 4. Strong Sales Growth in Key Channels: Scan data indicated dollar growth of 8% and unit growth of 9% in the grocery channel during Q3, with acceleration to 14% dollar growth and 17% unit growth in the four weeks ending October 6th.
Effective Brand Engagement: 5. Successful Marketing Campaigns: Zevia's marketing campaigns in 10 key markets resulted in growth averaging 5 percentage points higher than control markets, demonstrating effective brand engagement and consumer resonance.
Negative
Net Sales Decline: 1. Decline in Net Sales: Zevia reported net sales of $36.4 million in Q3 2024, a 16% decrease compared to the same quarter last year, primarily due to reduced distribution in club channels and the exit from Kids and Mixers categories.
Adjusted EBITDA Loss Improvement: 2. Adjusted EBITDA Loss: The company experienced an adjusted EBITDA loss of $1.5 million in Q3 2024, although improved from a loss of $9.1 million in the prior year, it still indicates ongoing financial challenges.
Volume Decline Impact: 3. Volume Decrease: There was a 12% decline in volumes attributed to lost distribution at club and one mass customer, negatively impacting both top and bottom lines.
Declining Average Selling Price: 4. Lower Average Selling Price: The net average selling price (ASP) declined by 3.9% on an equivalized case basis, reflecting efforts to liquidate excess inventory, which could signal pricing pressure.
Sales Outlook Revision: 5. Revised Sales Outlook: The revised net sales outlook for 2024 is between $154 million to $156 million, indicating a modest growth expectation that reflects the challenges faced in Q3.
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ZVIA Earning Call Sentiment
Zevia PBC (ZVIA) Q3 2024 Earnings Call Transcript
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ZVIA.N
-5.85%Positive
The earnings call presents a mixed picture. Financial performance shows improvement in margins and reduced losses, but net sales declined due to distribution losses. Product development and market strategy are positive with new launches and DSD success, but competition and economic factors pose risks. Guidance is weak with expected low-end sales and continued losses. Despite increased cost savings, uncertainties in marketing and profitability timelines exist. The Q&A highlighted concerns about distribution impacts and profitability, but also optimism for future growth. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
