Zevia Announces Fourth Quarter and Full Year 2024 Results
Q4 net sales up
Record gross profit margin of
Fourth Quarter 2024 Highlights
-
Net sales of
, an improvement of$39.5 million year over year$1.7 million -
Gross profit margin was
49.2% , an improvement of 8.5 percentage points year over year and the highest quarterly gross profit margin as a public company -
Net loss was
, including$6.8 million of non-cash equity-based compensation expense, an improvement of$1.0 million year over year$2.4 million -
Adjusted EBITDA loss was
(1), an improvement of$3.9 million year over year$3.0 million -
Loss per share was
to Zevia’s Class A Common stockholders, an improvement of$0.09 year over year$0.05
Full Year 2024 Highlights
-
Net sales of
, a decline of$155.0 million year over year$11.4 million -
Gross profit margin was
46.4% , an improvement of 1.5 percentage points year over year -
Net loss was
, including$23.8 million of non-cash equity-based compensation expense, an improvement of$5.0 million year over year$4.5 million -
Adjusted EBITDA loss was
(1), an improvement of$15.2 million year over year$3.8 million -
Loss per share was
to Zevia’s Class A Common stockholders, an improvement of$0.34 year over year$0.07
(1) Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure.
“We are pleased to have ended the year on a strong note with a return to top line growth and significant progress towards achieving profitability. We elevated our brand identity, advanced our three strategic growth pillars and continued to lay a strong foundation for growth and profitability over the long term.” said Amy Taylor, President and Chief Executive Officer of Zevia.
“The green shoots we saw across the business in the fourth quarter including our viral holiday campaign, successful new flavor and variety pack launches and expanded distribution in Walmart keep us optimistic about our path forward. Looking ahead, we remain focused on building brand awareness, accelerating product innovation and driving in-store visibility to capitalize on our unique market position within the fast growing and dynamic better-for-you soda category.”
Fourth Quarter 2024 Results
Net sales improved
Gross profit margin was
Selling and marketing expenses were
General and administrative expenses were
Equity-based compensation, a non-cash expense, was
Restructuring expenses were
Net loss for the fourth quarter of 2024 was
Loss per share for the fourth quarter of 2024 was
Adjusted EBITDA loss was
Full Year 2024 Results
Net sales decreased
Gross profit margin was
Selling and marketing expenses were
General and administrative expenses were
Equity-based compensation, a non-cash expense, was
Restructuring expenses were
Net loss for the full year of 2024 was
Loss per share for the full year of 2024 was
Adjusted EBITDA loss was
Balance Sheet and Cash Flows
As of December 31, 2024, the Company had
Guidance
“We are pleased with the progress we have made in our strategic growth pillars as well as our productivity initiative,” stated Girish Satya, Chief Financial Officer of Zevia. “As we look ahead to 2025, we expect to return to growth for the full year as we work to capitalize on our strengthened market position and the tailwinds that we see within the natural soda and better for you beverage categories.”
For the full year 2025, the Company expects net sales to be in the range of
For the first quarter of 2025, the Company expects net sales to be in the range of
We have not provided the forward-looking GAAP equivalent to our Adjusted EBITDA outlook or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation, income tax, and charges associated with restructuring and cost saving initiatives, including but not limited to severance costs, warehouse/distribution facility exit costs, and asset impairments. Accordingly, a reconciliation of this non-GAAP guidance metric to its corresponding GAAP equivalent is not available without unreasonable effort. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. However, it is important to note that the reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this release. For more information regarding the non-GAAP financial measures discussed in this earnings release, please see "Reconciliation of GAAP to non-GAAP Financial Results" below.
Webcast
The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss this earnings release. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia’s website at https://investors.zevia.com/ or directly here. A replay of the webcast will be available for approximately thirty (30) days following the call.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
About Zevia
Zevia PBC, a
(ZEVIA-F)
ZEVIA PBC
|
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
|
$ |
39,458 |
|
|
$ |
37,794 |
|
|
$ |
155,049 |
|
|
$ |
166,424 |
|
Cost of goods sold |
|
|
20,040 |
|
|
|
22,405 |
|
|
|
83,120 |
|
|
|
91,666 |
|
Gross profit |
|
|
19,418 |
|
|
|
15,389 |
|
|
|
71,929 |
|
|
|
74,758 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Selling and marketing |
|
|
16,459 |
|
|
|
13,845 |
|
|
|
57,132 |
|
|
|
62,312 |
|
General and administrative |
|
|
6,838 |
|
|
|
8,393 |
|
|
|
30,024 |
|
|
|
31,495 |
|
Equity-based compensation |
|
|
1,011 |
|
|
|
1,665 |
|
|
|
4,961 |
|
|
|
8,279 |
|
Depreciation and amortization |
|
|
288 |
|
|
|
381 |
|
|
|
1,329 |
|
|
|
1,615 |
|
Restructuring |
|
|
1,160 |
|
|
|
— |
|
|
|
2,137 |
|
|
|
— |
|
Total operating expenses |
|
|
25,756 |
|
|
|
24,284 |
|
|
|
95,583 |
|
|
|
103,701 |
|
Loss from operations |
|
|
(6,338 |
) |
|
|
(8,895 |
) |
|
|
(23,654 |
) |
|
|
(28,943 |
) |
Other (expense) income, net |
|
|
(420 |
) |
|
|
(235 |
) |
|
|
(63 |
) |
|
|
673 |
|
Loss before income taxes |
|
|
(6,758 |
) |
|
|
(9,130 |
) |
|
|
(23,717 |
) |
|
|
(28,270 |
) |
Provision for income taxes |
|
|
23 |
|
|
|
21 |
|
|
|
66 |
|
|
|
52 |
|
Net loss and comprehensive loss |
|
|
(6,781 |
) |
|
|
(9,151 |
) |
|
|
(23,783 |
) |
|
|
(28,322 |
) |
Loss attributable to noncontrolling interest |
|
|
1,018 |
|
|
|
1,896 |
|
|
|
3,778 |
|
|
|
6,828 |
|
Net loss attributable to Zevia PBC |
|
$ |
(5,763 |
) |
|
$ |
(7,255 |
) |
|
$ |
(20,005 |
) |
|
$ |
(21,494 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.41 |
) |
Diluted |
|
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
60,612,525 |
|
|
|
52,220,804 |
|
|
|
58,683,445 |
|
|
|
50,618,758 |
|
Diluted |
|
|
60,612,525 |
|
|
|
52,220,804 |
|
|
|
58,683,445 |
|
|
|
50,618,758 |
|
ZEVIA PBC
|
||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
30,653 |
|
|
$ |
31,955 |
|
Accounts receivable, net |
|
|
10,795 |
|
|
|
11,119 |
|
Inventories |
|
|
18,618 |
|
|
|
34,550 |
|
Prepaid expenses and other current assets |
|
|
1,843 |
|
|
|
5,063 |
|
Total current assets |
|
|
61,909 |
|
|
|
82,687 |
|
Property and equipment, net |
|
|
1,261 |
|
|
|
2,109 |
|
Right-of-use assets under operating leases, net |
|
|
1,099 |
|
|
|
1,959 |
|
Intangible assets, net |
|
|
3,179 |
|
|
|
3,523 |
|
Other non-current assets |
|
|
503 |
|
|
|
579 |
|
Total assets |
|
$ |
67,951 |
|
|
$ |
90,857 |
|
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
|
15,295 |
|
|
$ |
21,169 |
|
Accrued expenses and other current liabilities |
|
|
8,340 |
|
|
|
5,973 |
|
Current portion of operating lease liabilities |
|
|
587 |
|
|
|
575 |
|
Total current liabilities |
|
|
24,222 |
|
|
|
27,717 |
|
Operating lease liabilities, net of current portion |
|
|
726 |
|
|
|
1,373 |
|
Other non-current liabilities |
|
|
58 |
|
|
|
— |
|
Total liabilities |
|
|
25,006 |
|
|
|
29,090 |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
||||
Class A common stock |
|
|
61 |
|
|
|
54 |
|
Class B common stock |
|
|
12 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
186,148 |
|
|
|
191,144 |
|
Accumulated deficit |
|
|
(121,342 |
) |
|
|
(101,337 |
) |
Total Zevia PBC stockholders’ equity |
|
|
64,879 |
|
|
|
89,878 |
|
Noncontrolling interests |
|
|
(21,934 |
) |
|
|
(28,111 |
) |
Total equity |
|
|
42,945 |
|
|
|
61,767 |
|
Total liabilities and equity |
|
$ |
67,951 |
|
|
$ |
90,857 |
|
ZEVIA PBC
|
||||||||
|
|
Year Ended December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(23,783 |
) |
|
$ |
(28,322 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Non-cash lease expense |
|
|
587 |
|
|
|
567 |
|
Sublease impairment loss |
|
|
351 |
|
|
|
- |
|
Depreciation and amortization |
|
|
1,329 |
|
|
|
1,615 |
|
Loss on disposal of property, equipment and software, net |
|
|
57 |
|
|
|
480 |
|
Amortization of debt issuance cost |
|
|
76 |
|
|
|
76 |
|
Equity-based compensation |
|
|
4,961 |
|
|
|
8,279 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
324 |
|
|
|
(42 |
) |
Inventories |
|
|
15,932 |
|
|
|
(6,974 |
) |
Prepaid expenses and other assets |
|
|
3,220 |
|
|
|
(2,573 |
) |
Accounts payable |
|
|
(5,863 |
) |
|
|
13,640 |
|
Accrued expenses and other current liabilities |
|
|
2,367 |
|
|
|
(2,435 |
) |
Operating lease liabilities |
|
|
(635 |
) |
|
|
(585 |
) |
Other non-current liabilities |
|
|
58 |
|
|
|
— |
|
Net cash used in operating activities |
|
|
(1,019 |
) |
|
|
(16,274 |
) |
Investing activities: |
|
|
|
|
||||
Purchases of property, equipment and software |
|
|
(283 |
) |
|
|
(1,624 |
) |
Proceeds from sales of property, equipment and software |
|
|
— |
|
|
|
2,429 |
|
Net cash (used in) provided by investing activities |
|
|
(283 |
) |
|
|
805 |
|
Financing activities: |
|
|
|
|
||||
Proceeds from revolving line of credit |
|
|
8,000 |
|
|
|
— |
|
Repayment of revolving line of credit |
|
|
(8,000 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
— |
|
|
|
25 |
|
Net cash provided by financing activities |
|
|
— |
|
|
|
25 |
|
Net change from operating, investing, and financing activities |
|
|
(1,302 |
) |
|
|
(15,444 |
) |
Cash and cash equivalents at beginning of period |
|
|
31,955 |
|
|
|
47,399 |
|
Cash and cash equivalents at end of period |
|
$ |
30,653 |
|
|
$ |
31,955 |
|
|
|
|
|
|
Use of Non-GAAP Financial Information
We use Adjusted EBITDA, a financial measure that is not calculated in accordance with
We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense, foreign currency (gains) losses, (2) provision (benefit) for income taxes, (3) depreciation and amortization, (4) equity-based compensation, and (5) restructuring expenses (for 2024, in light of our Productivity Initiative). Adjusted EBITDA may in the future also be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions.
Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, and (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains) losses, and restructuring. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss or income and other results stated in accordance with GAAP.
ZEVIA PBC
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands)
(unaudited)
The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA for the periods presented:
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss and comprehensive loss |
|
$ |
(6,781 |
) |
|
$ |
(9,151 |
) |
|
$ |
(23,783 |
) |
|
$ |
(28,322 |
) |
Other expense (income), net* |
|
|
420 |
|
|
|
235 |
|
|
|
63 |
|
|
|
(673 |
) |
Provision for income taxes |
|
|
23 |
|
|
|
21 |
|
|
|
66 |
|
|
|
52 |
|
Depreciation and amortization |
|
|
288 |
|
|
|
381 |
|
|
|
1,329 |
|
|
|
1,615 |
|
Equity-based compensation |
|
|
1,011 |
|
|
|
1,665 |
|
|
|
4,961 |
|
|
|
8,279 |
|
Restructuring |
|
|
1,160 |
|
|
|
— |
|
|
|
2,137 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(3,879 |
) |
|
$ |
(6,849 |
) |
|
$ |
(15,227 |
) |
|
$ |
(19,049 |
) |
* Includes interest (income) expense, and foreign currency (gains) losses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226073346/en/
Investors
Greg Davis
Zevia PBC
424-343-2654
Greg@zevia.com
Reed Anderson
ICR
646-277-1260
Reed.Anderson@icrinc.com
Source: Zevia PBC