Zevia Announces Third Quarter 2024 Results
Net loss improved to
Expands Distribution into 4,300 Walmart Stores
Third Quarter 2024 Highlights
-
Net sales of
, a decline of$36.4 million year over year$6.7 million -
Gross profit margin was
49.1% , an improvement of 3.7 percentage points year over year -
Net loss was
, including$2.8 million of non-cash equity-based compensation expense, an improvement of$1.0 million year over year$8.4 million -
Adjusted EBITDA loss was
(1), an improvement of$1.5 million year over year$7.6 million -
Loss per share was
to Zevia’s Class A Common stockholders, an improvement of$0.04 year over year$0.12 -
Subsequent to the third quarter, Zevia expanded distribution to more than 4,300
U.S. Walmart stores from the 800 it previously served
(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 very pleased to have delivered vast improvements in net loss and adjusted EBITDA, despite coming in slightly below our net sales expectations,” said Amy Taylor, President and Chief Executive Officer. “Through the strong execution of our Productivity Initiative, we now expect to achieve
“Looking ahead, we expect to resume net sales growth in the fourth quarter, in large part due to expanded nationwide distribution at Walmart. This partnership not only bolsters volume, but also fosters awareness and trial across regions where we are underpenetrated and growing fastest. Overall, we remain laser focused on executing a powerful brand marketing strategy, building sustainable distribution expansion and delivering product innovation that is unmatched in the natural soda category, all of which we believe will help pave the way to strong profitable growth long term.”
Third Quarter 2024 Results
Net sales decreased
Gross profit margin was
Selling and marketing expenses were
General and administrative expenses were
Restructuring expenses were
Equity-based compensation, a non-cash expense, was
Net loss for the third quarter of 2024 was
Loss per share for the third quarter of 2024 was
Adjusted EBITDA loss was
Balance Sheet and Cash Flows
As of September 30, 2024, the Company had
Guidance
The Company is updating its guidance for the full year of 2024 to reflect recent results. Net sales for the full year of 2024 are now expected 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
36,366 |
|
|
$ |
43,089 |
|
|
$ |
115,591 |
|
|
$ |
128,630 |
|
Cost of goods sold |
|
|
18,516 |
|
|
|
23,517 |
|
|
|
63,080 |
|
|
|
69,261 |
|
Gross profit |
|
|
17,850 |
|
|
|
19,572 |
|
|
|
52,511 |
|
|
|
59,369 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing |
|
|
11,981 |
|
|
|
20,455 |
|
|
|
40,673 |
|
|
|
48,467 |
|
General and administrative |
|
|
7,377 |
|
|
|
8,250 |
|
|
|
23,186 |
|
|
|
23,102 |
|
Equity-based compensation |
|
|
1,034 |
|
|
|
1,876 |
|
|
|
3,950 |
|
|
|
6,614 |
|
Depreciation and amortization |
|
|
310 |
|
|
|
411 |
|
|
|
1,041 |
|
|
|
1,234 |
|
Restructuring |
|
|
112 |
|
|
|
— |
|
|
|
977 |
|
|
|
— |
|
Total operating expenses |
|
|
20,814 |
|
|
|
30,992 |
|
|
|
69,827 |
|
|
|
79,417 |
|
Loss from operations |
|
|
(2,964 |
) |
|
|
(11,420 |
) |
|
|
(17,316 |
) |
|
|
(20,048 |
) |
Other income, net |
|
|
118 |
|
|
|
165 |
|
|
|
357 |
|
|
|
908 |
|
Loss before income taxes |
|
|
(2,846 |
) |
|
|
(11,255 |
) |
|
|
(16,959 |
) |
|
|
(19,140 |
) |
(Benefit) provision for income taxes |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
43 |
|
|
|
31 |
|
Net loss and comprehensive loss |
|
|
(2,842 |
) |
|
|
(11,250 |
) |
|
|
(17,002 |
) |
|
|
(19,171 |
) |
Loss attributable to noncontrolling interest |
|
|
315 |
|
|
|
3,033 |
|
|
|
2,760 |
|
|
|
4,932 |
|
Net loss attributable to Zevia PBC |
|
$ |
(2,527 |
) |
|
$ |
(8,217 |
) |
|
$ |
(14,242 |
) |
|
$ |
(14,239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.27 |
) |
Diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
59,490,258 |
|
|
|
50,754,470 |
|
|
|
58,037,780 |
|
|
|
50,074,992 |
|
Diluted |
|
|
59,490,258 |
|
|
|
50,754,470 |
|
|
|
58,037,780 |
|
|
|
50,074,992 |
|
ZEVIA PBC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) |
||||||||
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
32,688 |
|
|
$ |
31,955 |
|
Accounts receivable, net |
|
|
10,008 |
|
|
|
11,119 |
|
Inventories |
|
|
20,690 |
|
|
|
34,550 |
|
Prepaid expenses and other current assets |
|
|
2,676 |
|
|
|
5,063 |
|
Total current assets |
|
|
66,062 |
|
|
|
82,687 |
|
Property and equipment, net |
|
|
1,490 |
|
|
|
2,109 |
|
Right-of-use assets under operating leases, net |
|
|
1,509 |
|
|
|
1,959 |
|
Intangible assets, net |
|
|
3,276 |
|
|
|
3,523 |
|
Other non-current assets |
|
|
522 |
|
|
|
579 |
|
Total assets |
|
$ |
72,859 |
|
|
$ |
90,857 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
|
14,865 |
|
|
$ |
21,169 |
|
Accrued expenses and other current liabilities |
|
|
7,700 |
|
|
|
5,973 |
|
Current portion of operating lease liabilities |
|
|
629 |
|
|
|
575 |
|
Total current liabilities |
|
|
23,194 |
|
|
|
27,717 |
|
Operating lease liabilities, net of current portion |
|
|
892 |
|
|
|
1,373 |
|
Other non-current liabilities |
|
|
58 |
|
|
|
— |
|
Total liabilities |
|
|
24,144 |
|
|
|
29,090 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Class A common stock |
|
|
60 |
|
|
|
54 |
|
Class B common stock |
|
|
13 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
188,014 |
|
|
|
191,144 |
|
Accumulated deficit |
|
|
(115,579 |
) |
|
|
(101,337 |
) |
Total Zevia PBC stockholders’ equity |
|
|
72,508 |
|
|
|
89,878 |
|
Noncontrolling interests |
|
|
(23,793 |
) |
|
|
(28,111 |
) |
Total equity |
|
|
48,715 |
|
|
|
61,767 |
|
Total liabilities and equity |
|
$ |
72,859 |
|
|
$ |
90,857 |
|
ZEVIA PBC CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in thousands) |
||||||||
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(17,002 |
) |
|
$ |
(19,171 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Non-cash lease expense |
|
|
450 |
|
|
|
423 |
|
Depreciation and amortization |
|
|
1,041 |
|
|
|
1,234 |
|
Loss on disposal of property, equipment and software, net |
|
|
55 |
|
|
|
101 |
|
Amortization of debt issuance cost |
|
|
57 |
|
|
|
57 |
|
Equity-based compensation |
|
|
3,950 |
|
|
|
6,614 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
1,111 |
|
|
|
(5,295 |
) |
Inventories |
|
|
13,860 |
|
|
|
(21,822 |
) |
Prepaid expenses and other assets |
|
|
2,387 |
|
|
|
(451 |
) |
Accounts payable |
|
|
(6,296 |
) |
|
|
30,312 |
|
Accrued expenses and other current liabilities |
|
|
1,727 |
|
|
|
(1,234 |
) |
Operating lease liabilities |
|
|
(427 |
) |
|
|
(436 |
) |
Other non-current liabilities |
|
|
58 |
|
|
|
— |
|
Net cash provided by (used in) operating activities |
|
|
971 |
|
|
|
(9,668 |
) |
Investing activities: |
|
|
|
|
|
|
||
Purchases of property, equipment and software |
|
|
(238 |
) |
|
|
(1,557 |
) |
Proceeds from sales of property, equipment and software |
|
|
— |
|
|
|
2,343 |
|
Net cash (used in) provided by investing activities |
|
|
(238 |
) |
|
|
786 |
|
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 |
|
|
733 |
|
|
|
(8,857 |
) |
Cash and cash equivalents at beginning of period |
|
|
31,955 |
|
|
|
47,399 |
|
Cash and cash equivalents at end of period |
|
$ |
32,688 |
|
|
$ |
38,542 |
|
|
|
|
|
|
|
|
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) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss and comprehensive loss |
|
$ |
(2,842 |
) |
|
$ |
(11,250 |
) |
|
$ |
(17,002 |
) |
|
$ |
(19,171 |
) |
Other income, net* |
|
|
(118 |
) |
|
|
(165 |
) |
|
|
(357 |
) |
|
|
(908 |
) |
(Benefit) provision for income taxes |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
43 |
|
|
|
31 |
|
Depreciation and amortization |
|
|
310 |
|
|
|
411 |
|
|
|
1,041 |
|
|
|
1,234 |
|
Equity-based compensation |
|
|
1,034 |
|
|
|
1,876 |
|
|
|
3,950 |
|
|
|
6,614 |
|
Restructuring |
|
|
112 |
|
|
|
— |
|
|
|
977 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(1,508 |
) |
|
$ |
(9,133 |
) |
|
$ |
(11,348 |
) |
|
$ |
(12,200 |
) |
* Includes interest (income) expense, and foreign currency (gains) losses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106357116/en/
Investors
Greg Davis
Zevia PBC
424-343-2654
Gregory@zevia.com
Reed Anderson
ICR
646-277-1260
Reed.Anderson@icrinc.com
Source: Zevia PBC