Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Jones Soda Co (JSDA, Financial) reported a 49% increase in net revenue for Q2 2024, reaching $7.2 million compared to $4.8 million in Q2 2023.
- Gross profit margin improved by 340 basis points to 35.8%, driven by sales of high-margin products and pricing adjustments.
- The company's cannabis business, Mary Jones, generated approximately $1.2 million in Q2 2024, marking a 100% increase compared to the previous quarter.
- Jones Soda Co (JSDA) successfully launched new product lines, including Nuka Cola, which contributed significantly to direct-to-consumer sales and overall revenue.
- The company raised approximately $3.2 million in an oversubscribed private placement to support growth and innovation initiatives, strengthening its balance sheet.
Negative Points
- Net loss for Q2 2024 was $1.6 million, or negative $0.02 per share, compared to a net loss of $1 million, or negative $0.01 per share, in Q2 2023.
- Adjusted EBITDA was negative $1.1 million in Q2 2024, compared to negative $0.7 million in the same quarter of the previous year.
- The increase in SG&A expenses due to strategic investments in product innovation negatively impacted the bottom line.
- The company's cash balance declined to $1.5 million at the end of June 2024, indicating potential liquidity concerns.
- Despite strong revenue growth, the company is still in the early stages of its strategic roadmap and has yet to fully realize its potential.
Q & A Highlights
Q: Can you provide an overview of Jones Soda's financial performance in Q2 2024?
A: David Knight, President and CEO: We finished a very strong first half with Q1 and Q2 being the two largest revenue growth quarters since 2009. Net revenue in Q2 increased by 49% to $7.2 million compared to $4.8 million in Q2 2023. Gross profit as a percentage of revenue increased by 340 basis points to 35.8%. However, net loss in Q2 was $1.6 million, primarily due to strategic investments in innovations.
Q: What are the key drivers behind the revenue growth?
A: David Knight, President and CEO: The growth was driven by the success of new product launches, including Nuka Cola, which generated $930,000 in sales in Q1 and Q2. Additionally, our cannabis business, Mary Jones, generated approximately $1.2 million in Q2, representing a 100% increase compared to the previous quarter.
Q: Can you elaborate on the new product launches planned for the second half of 2024?
A: David Knight, President and CEO: We have five new product lines ready to launch, including Jones Nitro Cross Cola, Jones Plus Soda with 160 milligrams of caffeine, Fiesta Jones, a lower-calorie fruit-flavored beverage, and Jones Premium Craft Mixers. These products are expected to drive further revenue growth and improve margins.
Q: How is the company addressing its liquidity position?
A: David Knight, President and CEO: Our cash balance at the end of June was $1.5 million. Since then, we have raised approximately $3.2 million in an oversubscribed private placement. We also have access to a $2 million revolving credit facility for working capital needs, ensuring a comfortable liquidity position.
Q: What are the future growth prospects for Jones Soda?
A: David Knight, President and CEO: We are focused on building momentum with our new product launches and strategic investments. Our goal is to transform Jones from a craft soda company into a high-growth beverage company. We are confident in our ability to deliver on our strategic growth plan and expect robust growth in the coming quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
