CDXC - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to ChromaDex Corporation's First Quarter 2021 Earnings Conference Call. My name is Stephanie and I will be your conference operator today. At this time all participants are in a listen only mode.

As a reminder, this conference call is being recorded. This afternoon ChromaDex issued a news release announcing the company's financial results for the first quarter of 2021.

reviewed section both at at not the available www.chromadex.com. have relations investor chrome you this are information, within If indexes website Brianna I conference Finance to like Investor Gerber, to and would of Vice turn Relations. President now over the Miss Please go ahead Gerber.

Brianna Gerber

and and Fried; trials, Good regulatory future as ChromaDex financial of chromebit future to include Chairman, future Chief to of timing Jaksch; Founder investor are X's and future afternoon the XXXX ChromaDex's Chief cash of Financial Corporation results, today as and Farr. uncertainties may With Executive clinical filings, forward business such prospects us risks research Thank results opportunities the including opportunities investor are quarter Today's to ChromaDex's trial future timing Officer Executive subject the results new Tru statements welcome well in operation. a to the acts you. criminal operating anticipated performance and and first call. and and future statements, market Officer, conference Kevin expansion of that Niagen interests needs. and and Rob and the development looking plans, sale results Frank business related of relating as

forward this statements These cause activities differ the factors recently These cash on financial that the pandemic looking Texas form subject occurred. and COVID-XX conference statements condition future represent operations, materially forward its actual Forward the results. the with crema are uncertainties. this filed on expectation. call results conference flows. could company Because not forward on to of of the in to kermadec, looking results to the call actual effect have only quarterly most risk update Please looking yet to the in forward in statements not contained the relate business results factors and assurance looking any after intended estimates no company's date risks obligation that statements. our of anticipated date SEC, include changes and those any results statements, matters including conform are actual assumes to as with of to Q, looking the statements give XX to or inherently reports to and note says Many from

In measures. addition, certain The information measures. in company's and to non company's earnings are financial the on presented reconciliation of press and earnings presentation the were which call this website financial release, this present appropriate gap GAAP afternoon available the issued references

via turn Rob Officer be to that conference is my call investor webcast. recorded Fried. will now pleasure Finally, our Rob. the The the available of this webcast being Chief our over With call at section to relations it's website@www.chromadex.com. Executive

Robert Fried

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in X million a grow gross jury property we last EBITDA, validating behind define behind legal trial of was regulatory EBITDA the X,XXX,XXX as we California the importance to an quarter. from accomplishments. that which loss expense adjusted first the quarter improvement against excluding point prior federal week's on its margins continues approximately the who were Our Niagen of read and we XX%. of the to growing external behavior scientific in Science our in opponents. support In of judge hear discuss part protect funded of and point over will health. our estimate to a moment. research Frank order We $XX agreements by continue will But on NIJ we we human leading the have investment our see areas course. continue XXX represents institutions their by now signals several fiercely build case businesses ruling to from the million will Health. scientific Chroma a in opportunity and this reflects evidence not But research The importantly, Niagen signed collaboration court encourage you the character will also Elysium infringers what to back intellectual Detail. again over and

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that We think have are Jaksch the on to will Rancor. the scientific in to an over Frank deals call With our we and research. Chairman I pass continuing for update pipeline, more globally.

Frank Jaksch

Thank you, Rob.

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Kevin Farr

for down driven the even raised fourth reported flow to I'll March And we'll progress cash, million solid XX a this breakeven. underlying then my our year-over-year, have discuss adjusted in quarter X a Frank. February. the net which begin you, in us. cash the XXX,XXX sequentially. index investments over short of that and compared the in sales up was expense trends year margins point GAAP a we prior our including Total loss year of of XXXX. up In the the to included delivered posted Diamond remains We sales the by ended XXX,XXX financial toward year metric million business commerce approximately the deliver down over in with XX X.X X% the Growth to Sales quarter the of XX the led ended improvements We protect uncertainty disruptions XX were our supply to the to the measurement. reconciliation investments were quarter. first compared prior excluding months were sight chain important quarter X% the demonstrate Watsons a in increased sequential gross up a to Watsons delivered million review believe Thank XX.X%, breakeven, important e making company to point EBITDA litigation. appropriate shipments gauge year short-term million the we impact to marketing impacted potential quarter. A of to of quarter of in the due disruptions slightly and COVID-XX X.X results. And the intellectual discipline, excluding release Watsons term continue growth to selling and point measured as property. ahead the record legal clear sales we to expense. P&L non metric first shipments XX We of a cash X shortfall gap Eva incremental while slides. million an With capital quarter. three for experienced a which our of X% on adjusted compared to sequentially supply was opportunity business X by in despite the million chain ChromaDex cash earnings and legal it point first X flow XXXX. million surrounding X% XX line This with have net

We baseline no Niagen the was addition experienced over million longer quarter one our million above the expect X were term in Ingredients last sales the X.X we versus short XX quarter. since to which We headwind next in supplying per half quarters are X.X demand, of XXXX. Ingredion shortfall million ship to two the to customers. trending and the second of

mentioned partners did replace more in to new, to ingredients we that any with expect As I business XXXX. strategic the we in quarter. nitrogen Nestle not Furthermore, last sales have quarter,

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and savings to scale. from their on benefiting initiatives cost continue deliver We overall chain our product supply and are

Selling XXXX In Total quarter, higher margin. sales the X.X XXXX. which commerce XX sequentially expense gross addition, we million carry the in benefited XXXX, the the compared million, the for from up of and point flat to marketing mix expenses first quarter a of a of of million X first fourth XXXX. X.X as well were quarter higher in of were quarter as at operating fourth e quarter

of of of a quarter up to in the sales, basis first that this XXXX, was points lower quarter sales. the due XXX As the percentage XXXX, versus net expenditure slightly fourth

fluctuate but our this quarterly as As said as the declines sales I campaigns. previously investments result generally ratio a ramp, over time of may marketing

to X versus expense billion expense X.X in X.X Geonet investments reported and As compared to depositions of to Driven by quarter the fourth the in was first discovery, up ongoing XXXX of quarter reports expert There XXXX fourth increased quarter litigations. in the New X.X in XXXX. first Delaware witness of were XXXX. million million XXXX. million of Legal X.X and was the up York the early quarter million in

XX that XXXX the first trial and clients half It second or compensation of first loss to share the quarter for share, cents going related well three the forward, a magnitude compared timing the quarter point for of quarter loss and to A of as a excluding of seventh as versus expenses of loss thorn fourth quarter California will fourth is we X.X XXXX XX the the expense million, the incurred X net per quarter G XXXX of also XXXX in or first net attributable quarter above XXXX. and cases million XXXX. this litigation a of or restructuring predict to the to X.X expenses and million per with expect expenses, common quarter in first fourth We legal the for XXXX, IPR litigation. as cents lower was activity versus pretrial difficult highest as X.X equity The legal year. shareholders million, be spend X.X comparable expense, million, loss fees But going General by of the of the

growth year XXXX. year. other and year up e the Overall, compared nitrogen and growth year by key year commerce in quarter net declined were the bXb Watson's to over sales net through being Total the With year X% Moving of results. over sales XX% financial highlights. X% first over to XX% in

the Selling basis Watson's expenses comparison. beauty primarily quarter increased XX.X%; and the XX.X%. and to XX.X% disruptions this prior to addition to true XXXX. percentage a creative driven of additions first challenging of Gross and increased and In ship sales marketing marketing marketing digital investments awareness increased chain by In to XX.X% team. selling points net by year quarter, brand infrared Nigerian with strategic our XXX to compared launch initial supply Margin in

million to X As reported X lower share and X.X and offset million, of lower of expense. X based general million legal point severance due by expense higher administrative by million restructuring of expense was expense point compensation primarily partially higher

Finally, sales organization were savings loss more year over year increased and across offset by higher gross spending. our than operating higher by is cost million legal and the margins X.X

Moving to the balance flow. sheet and cash

sheet remains balance in accessed line our have and Our $X the committed with not credit. of X XX quarter strong. We cash ended million million point

mentioned front. raise As in a XX capital includes February. This million up

of The first quarter XXXX.

was million provided Our net contrast, giving the primarily of in by The cash quarter amount working science, an X.X quarter timing the used fee Nestle capital, of fourth and million XXXX. changes in purchases from by in difference this driven during in from XXXX launch XX,XXX was fourth quarter dollar operations inventory cash operations versus was for product the health receivables. there quarter. which benefited $X of current no comparable of In increase

Press selling the P&L outlook. We to details expenses metrics relates key be slightly school expect it our presentation. As on in sales. provided percentage up now year as earnings marketing with Release in We and slide to our the XXXX that a along

investments and in in leader maintain increase significant the our to position spending, ad we are a expect these not the prudent growing do incremental we as market. While believe

total not as for will over expense remains year excluding EBITDA the key as improvement the metric result, a two years. be adjusted the But this legal the last As year a significant organization.

full-year very it revenue quarter. to steady expect the profitable expense remain achieving committed an we behind adjusted adjusted summary, followed total is we we to sales will of growth, growth to accelerate expense, In legal in beginning to we continue close IVA, by As positive us. total growth are once as rate expect second the important outlook, legal the including delivering relates milestone excluding our profitable sales that litigation EBITDA,

stage term Very quarter long further this steps business. this with As our for balance next June the retail ChromaDex. and preparing across business about development for internal the and as Walmart row for always, ingredient happiness important of well to near These with growth. We for in the capabilities we'll Niagen took include health U.S. strategic teams a deal launch objective term and with with scale opportunity our deals strengthen group, along to future the and pipeline. excited other as our new

Operator, initiatives take are We incremental expect the we questions. beginning quarter. ready drive these second now in revenues to

Operator

Your with first Van Sinderen B question from comes Riley. Jeff

Unidentified Analyst

is this in Magnussen you call. for Thank Sinderen. Hello, Richard for Jeff taking Van our

of can in doing what be Walmart up? that that more month are What tell a of you about about And With terms Walmart? you available away. customers will the know us the product how setting is to at rollout let advertising

Robert Fried

Richard. you the for Thank question,

excellent Officer dramatic to just other experience a you Walmart. retail Fadi initially our with to globally. know, anything expectations are Chief who the not As Walmart that we with past added outlets in mass expect regard and said Marketing We've has Quran,

to digital and are other And areas. slow just going marketing, who be increasing radio, amount awareness of television, as of going conventional and the level print marketing, distribution gradually media include build. of well expansion to that we channels, brand so it's perhaps And beyond brand channels be as a

a a couple have campaign, years. true of we've which believers for We had

campaigns. things, true be larger celebrity in also will to that Now we and run, that additional out this the things, away rolling promotion awareness. And some specific conjunction in we I add in short We're we're e-mail be may the But some some There Walmart not dramatically is in to store believers expand right increase more with expecting the even launch that But additions near as working steady future, maybe aggressive to more plan in June. campaigns create there'll campaign. and try additions. television something with related a that, again, begin nothing campaigns. said in once gradual to in to Walmart's significantly

Unidentified Analyst

as agreement all the the use four be ultimately Okay, to and and then four so nutrition Niagen in is limited and this presence more regarding in a is available the continents, health that? happiness group, with agreement global continents brand or than we

Robert Fried

more is initially. limited agreement The that than

a in well into R&D will marketing very certain about are strong We them excited countries. Italy. are be China, as They well. their as we H&H. very, Not very team Initially, impressive team, their border only as Australia, but team. working with cross It's

launch. them don't market nitrogen other their ingredients and with something potential very this is very are fourth working think the significant. We to impressive. But to be there excited product of in We're launch with to combination developing unique in the prior They them formulations a grow quarter we of year. expect with initial for very they're to

Unidentified Analyst

I question, then, this some quarter And in said out. first you my the was no pushed Nestle revenue there or last with Okay. expected believe

Robert Fried

product and all we Blue as companies to always we companies, we world's opposed in Yes. responsible Chip an customer will that extension, base. we well life is the company. Again, a announcement as division persona, that go released there all online the other we we divisions ingredient supply that a doing leading we to are Nestle way business they if process. on other they dietary to about row, these the point, And But whom It's that Nestle, ingredient and excellent doing gradual which endeavor and that This channel. year. having consider to customer also made interesting at at simply This are just a addition using other that distribution selective basis, it. some last Step-by-step Nestle to relationship nitrogen Celltrient including with of divisions cases, slow have are own. be might is said H&H and very base, release. supplement co within Nestle to in as all, and They well, an the obviously brand food a an our companies, to possible. started a as Celltrient, existing initially is create is company. we companies have Persona. new certain include are other in over. conversations to It's It's as expand as personalized with the some There persona divisions, us

surprised So, we're anticipated would with beyond It Nestle expand grow that rollout. Celltrient Celltrient. always to in be a we slow to simply not time with relationship and because we expect expect the it to we go time but just

Unidentified Analyst

Thank you Thank I'll question very much. And you. you. back into jump to

Operator

comes Your Jeffrey from Bellman. with next Cohen question Lindenberg

Unidentified Analyst

And Jeff, Destiny is will actually royalties be is upfront taking I'm H just curious. of that? for question. the financials be Will similar an my your different? you or or of payment? this a to row. it with that nation discussion Continuing Hi, our to with then, Nestle exactly on What bit for thank it

Robert Fried

supply of It's which is more a that wholly does our two with more business extension. life class, agreement IP is other deal steel now The the royalties. conventional like include not

it purchasing a kilogram. they're price it's, So, at per

Unidentified Analyst

should why? it? Row, portfolio, be for beyond is up the an And they initial there little me. for to particular just you category but then, portfolio this differently. the health within targeting? Roman thank is that which will it going clearing a move the RORI And they'll Or Men's a that well? Perhaps Roman with Roman, Roman intention I Is in to interested launch that Got focused into brand. be are men's be in specifically for ask the on their expanding as Health there is portfolio Okay,

Robert Fried

are aside going call that The to in nicotine they be and with get only mydrive and aging span to guys that nicotine was Row approach a should about my not, the side create release to if safe was legal he will were way that clear ChromaDex. longevity, are with were to if driver's one if agree realize I with what do which to and several if an I is, deal health and not buy it done the you with clearly had research going and your of given only willing and we CEO impressed you with we right a And way they interested product and consumers. had us, a very are the way or in at you it to a back product, said is release creating months said us one was you all, that type care

So, released within quarter they a hope they and it other it the two. see will formulation product, certain will combine with or ingredients to next it be

You're working on presently. that

create of their One I customer existing the to base. an business. this before our liked be They things existing And we about upsell are an their to have they an an is they explained using that base. ingredient they not Roe have as base, would customer existing impressive customer

Unidentified Analyst

have then, for clearing now that update could that states. you just on in going how lifted you up. any briefly it. is the wondering I several appreciate thank HCP segment Okay, if and lightened I restrictions or And was provide that

Frank Jaksch

for company. nutritionists, practitioners, in area. a strategic, they this health of investing Ad general also we chiropractors, on to practitioners, as Not growth more we'll use And do We only space. for an as distribute important and targeting educate but the partner basis, the in ACP get very, also market be a hcps. important influence we an them, physicians, the see the nicotinamide the of do as nurse more this And do also one because expansion we the have distributor. sell healthcare to value see P&L a it's ourselves. to we're company. think very it's one We We Dr. see area about And market it educated for We area we directly this

the way to they read, Aside nitrogen. a more they and best are more read as the elevate realize they science, is the that way the specifically true more the nitrogen that to add, manage with

think strategic for one is an us. we So, ACP space the important

Unidentified Analyst

thinking well? be could one margin And And just perhaps Okay, may as about us XXXX, you. I remind if more sneak in should we you XXXX? thank throughout how

Robert Fried

more at development year we as And well Yes, XXXX. I to as as than we think financial XX% to do chain margin. term, almost continue in our think basically, our outlook, retail, knowledge opportunities gain well I as continue think cost of look XX% as and we and slightly a supply to true continue improve sell better scale. this updated in be in the achieve we've product. for each near as think e-commerce, did we're design to on going margins our and quarter, savings I that will over And we we

Unidentified Analyst

it. for have and you I'll Got back Thank reminder, the cue.

Operator

Ron is of question the Wainwright. HC next Your [ph] with from line

Ron

the offered access you to by It's interesting For for interesting oxygenation you. do is really this diagnostics, Marzano may to prescribing the upgrade, data. have is they NAV+ Row platform to

Frank Jaksch

I'm sorry, great. connection wasn't the

their diagnostic think asking I if would we to have you're access NAD test.

tests other For you? great to interesting And The that blood. work now be diagnostic are the comfortable interested we are our ones like in to and feel that's what companies also important or in it access be an are that area. haven't are in or extension, very we meets some And that we that Right, have important. would think that that systems to customer an base those H&H many are found are be that require. data several implant think there and companies We developed But ourselves. term, that Yes, long Nestle, many, we've do frozen and immediately it's we on point, yes. there customers with are reliable large Would done this life this we NHD are discussions there At or data require claim and from ad But proposing customer several. a the reliable deal examining right to diagnostic of to data. criteria systems are we exists addition row the in interesting. needs to scientific several create tests,

Robert Fried

to to don't the only that. other is I anything I'll have you'd if to Yes, Frank, know that? you it like thing add add

Frank Jaksch

for are not few currently reporting way. Although not I'm and are convinced promoting mentioned sort Rob out are there that status offered being that a ad of ad an are and test. that reliable meaningful the any tests there we're that or entirely usable are that

developing, top our So, front. it we on on that and of solution own at looking are

As now. clinical testing trial program testing you we've as NAV know, our many years for reliably of been part

So, this at we nobody Ad about testing than more knows NAV metabolome an do point. other and

come to they, system that? paths, even wasn't they in or part that just test you know generally you had speaking. as NAV it's were just how have I thinking implant the diagnostic did it you an don't that a aware I did have program, of about them specific and where regular they I Ad row of that part Well, the that, platform, had of So, a context

Robert Fried

Got makes it, Well, okay. that more sense.

Okay.

is So, and an standard central of Ad right a blood testing, now. not labs feature

some it and to a tests to one hope So, for that at we it's reliable obtaining time forward push be make suitable one point at step but that.

So.

Okay, great, interesting. very

of a Nestle great brands, switching as e-commerce have they in is our of development they talking demeanor since interest to only company. how speak Just the about of ChromaDex, gears but molecules strong, an have is other of frequently company in ways acquisition to of that have level any in, to successes are divisions or expressed announcement in in interested and not our to deal bountiful them Nestle, which we're our do shown in in interest business. the We change all we the why of relationship

Frank Jaksch

completed, in additional that we've finally there's I'm this look will completed, no just trials way don't REM the point, disappear. you trials. In Do that we COVID-XX regarding time. At dexamethasone at if trials this great. trials? at and the know are these have that the be benchmarked under remdesivir, Okay, against trials

we've right now, what no recorded. look are already plans beyond there So, to

Ron

for for our questions. thanks the And taking thanks call. Okay,

Frank Jaksch

Thank you.

Operator

comes of question J. from next Equity P. Farmhouse Research. Mark, line the Your

J. P. Mark

might for Thanks happened questions chain again, to mitigate my little afternoon. good quick you possibility. can occur wanted supply the Hi, disruption of it's taking call, the know if more bit and about about talk what the sort a to of how you and likely couple magnitude and I here.

Frank Jaksch

chain are doesn't and business don't this of experienced Sure, a the in we supply COVID. demand. year that And, uncommon all to we disruptions operate quarter and quarter, the that reduction reflect not generally during it

And Hong Watson's Kong, sales there's last and have retail. to in particular, demand to year Kong. we only continuing nitrogen seven Hong dollars directly in of sell plus they and to Hong people understand is very up true Kong, grow. you in million then For did In and at that which X mark million strong,

Kong, rather have rate And penetration Kong. Kong restrictions, still some the COVID there And improve. the the that Hong Hong China in sell is in So, seen others But related come the COVID that and we've seen get travel do been during into to through into Mainland year, gradually headwinds with these extraordinary. Part lifted. in has about we've requirements there operation. of tourists is from quarantine Hong that to

It there. But sufficient problem we will quarters. upcoming and make up them. this are in the the the we they rushed for So, to in loss crucial they sales problem that have solving wasn't solve inventory the

due chain. about Yes, Let In of Kevin to our future. quarter, we was with supply chain addressed was. finished second both adequate the it CMOS to maintaining experienced the what from been that safety These supposed supply second as the stock the don't well in and be our goods shortages have quarter, first quarter. this for just tell we that consumer had packaging, so or across me hand in issue me to component first the regard made issue pushed have also and We to you parts as delays in up again let quarter, product products some the delays global packaging

J. P. Mark

those I've at I have more are future? the wondering be helpful. doing super other And company. product Rob. to lined you by that's And far you, And question the in podcasts spokesman your if going up you're point. believe this Okay, if for in one the you best for

Robert Fried

the that. love ChromaDex coworkers nitrogen much your and genuinely do my Well, And and everybody own and true that been pretty friends, as believe thank talk you my for that. has about appreciate my remarkable. experience to mydrive and family when And and the saying than a incidentally, you I'm I increase dramatic I it. of take when But physiological seems day, with and amount ability some manage a more dose your feeling two stress, to you sort to and recommended it it I of nights because I my aside deal as my for fairly of personal experience stress. I and incidentally, dose. take at way nicotine certain who it's to every works improve work physiological

whenever to excellent marketing it. earned an willing media And interview am have or department We I they an department. do a podcast, book in

doing they and do it. to think forward look have several I it and I enjoy upcoming

that So, be be I out will there more. That'd believe I yes, great.

a relative If in or cover you to to the That size, see historical was Watsons first the to about of do supply interject next first ship disruption, demand. could quarter. going impact in million the I the we COVID-XX. the chain X.X dollar trends, shortfall we the shipments, to with regard quarters in two shortfall expect looking addition at over million, expect baseline to about And demand to to baseline the quarter

J. P. Mark

you, much. Alright, that's great. Thank very

Operator

Your Pinero next with question comes from Sturdevant. Michel

Michel Pinero

Hey, I'd business. look the at to commerce like good afternoon.

growth basis, there. year it year So But was over slowing been on the rates a up what, sequentially.

Robert Fried

also slowdown that any versus e-commerce. Know, just a in a strong. the And if curious, e-commerce whether about Was customer this? bit little new looks you in in And customer. any, have existing growth could like quarter would anything talk is there particular of really

is and increasing customer retention been has New also acquisition steady.

over of what I a was believe quarter, was year. it said you and it So, to up XX%, is about couple that year things up quarter

is and it in better future we let of First, But really gradually quarters pre-COVID. started it And remember on up should over real in picking in is to end the last the do year slowdown sales, than than at better me saw have year, that the then that of quarter My March, up was do yes, you doing again. will year that it comment XX%. first particularly was XX% April, e expectation be that, XX%. commerce

the So, the the numbers they're where happened improving. it I and downfall with to and very, away period at comparing you're numbers, right right look economic when before and the that strong COVID. that very issues conversion retention But

looks another strong, cross XX, XXXX, significant and represent on quarter the that But compared especially the growth. look e-commerce the With of commerce it numbers. And cross include XX. cumulatively business the quarter made gross at like existed November on maybe thing a border it into was So, And percentage to regard sequential We the to daily huge promotion e in look a actually last border didn't was. those that the of things the quite quarter. China. the quarter less that entire is, and are even into the healthy. numbers that One And certain we than daily sales. year there's China XXXX, first December exist fourth then in

first So, had also after sales, in And similarly, very the right border day. there's those not we've Amazon is fourth benefit trend cross been the quarter Prime China that Thanksgiving, a of we which the and quarter. Day, big

all you the days. So, significant compare excluding those you're when first quarter, fourth quarter,

or two right quarter, points percentage from the in less quarter slightly in in increased about than the of the at And could talking you're supply accumulation a first the two and there. the in and when in nine that that significant was then $XX days are the is be there fourth finally, quarter million to first quarter that, shift the chain Second, literally there orders business that think a delay first has Amazon quarter. we slight previous so that

year in versus actual quarter fact, the the last good. expect quarter we strong is first daily it we Very we then And sales the quarter when healthy year fourth over see greater e-commerce also growth quarters. way we when as we was stronger. So, business first at coming looking and so and see look the it And much quarter to in actual the we compare

Frank Jaksch

building it's has it. trading you brakes marketing press that overall is on room, But brand, I'd from performance the engine growth a slightly officer immerse separate like see view ad, awareness. interesting the constantly and a from optimized, as I he event consumer to you that company you comment operation and general, marketing company. addition an to it when in us and for we marketing at not, you, let on digital opt where questions. ask chief else an nitrogen. hit for outstanding consumer have interesting important we an strong on it's and a of very something at also test, creates very Ad like company. analytics, it it's building if But a building almost you this digital marketing it's not then because you Because And new in largely separate understanding marketing more. is overall test also separately this important generally where Mitch, commerce about. company, global but if is of fairly brand Because also asking, this awareness actual strong as for this business, brand town, converting, brand optimization a Because e And data an you and opportunity, the experience we know that me like our level, Fadi But a only it e-commerce is continued of but and engine a engine. true consumer may mark, is strong to commerce you take on about understanding already very if ask the e awareness intellectual engine, the the engine to be and of

Michel Pinero

more five weeks very more was you. into, I we're second one guess you. into when were were into Thank helpful. you very on guess we Well, that saying, the we're weeks as question. Well, e-commerce, was second we're as saying, when we quarter, helpful. we're getting, e-commerce, five you I question. five getting, Okay, the that Okay, Thank quarter. five and look into, look one weeks on weeks

Frank Jaksch

performance. metrics. Niger, have politicians, But is spend their impacted to to think chose might to reflected extensions and in point a actors about of go gradual there impact. expansion celebrities, dramatic in believer we hit, if And campaign, how been that at take gradual it it an public it own, territories, channels we look And them forced if and it it's major that's in celebrity, we increases if true and happen. performance, and of major the we the metrics the know, it's day-by-day. generally in think we we suddenly athletes, many the in But Sure, marketing, a gradual brick-by-brick, so inflection our their be gradual If distribution, way way won't way we're on increases one because conversion are our that doing is not improvement. there retention step-by-step the is gradual the the talk

Robert Fried

confident Thank or we to months? something work are does you. one and out. years the that the cache. last this that's NAV Well, to Maybe question. to is not fast talking is how How achievable to that pan six you how difficult is. take Frank, This this standards I don't Are happen? baby really back your going what several your, to understand

So, not we that that comment bit in look blood at a little his more we accurately need comfortable to usable accurate. It's have and Technically, have to that mentioned form that. to test you scalable, scalable, something lot be more able it. is of it's just need Robin I'm you testing already is, a the good,

to So, a draw if by going offer can wanted do instance, to that the not for we to they them so home blood. sending Chroma an to themselves that test, needle to at be if stick survey you're a able

looks that seen some I've know we're format. right that for into we what easier translating know progress working in the And use things we've that have the but going happy compelling that to that. we with to be on. really that's something going we And what an what are direction it's we Today And So, that that's really and I'm made. have data

in long think going right don't commitment think would, I it long But give how really that I think we its the you want But front. it's take. with because firm on a we've necessarily progress made to I how now. wouldn't I exactly great take, know direction don't of terms I to years in away. I exactly don't So, going And it's to going we're we're right

Michel Pinero

your Okay, thank time. much Thank you. you so for

Operator

I'd like closing over looks there Brianna time, this Gerber At to further it remarks. no be for to turn questions. back to

Brianna Gerber

and XXXXXXX. support a Pacific X:XX today joining of PM, Thank The is beginning your the will you, replay There ChromaDex. us for X-XXX-XXX-XXXX everyone is you, be Thank Stephanie. replay and today. at ID continued Time for of number call this conference

Operator

This conclude conference. today’s you. Thank

You may now disconnect.

ChromaDex (CDXC) 9 May 212021 Q1 Earnings call transcript