CDXC - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to ChromaDex Corporation's Third Quarter 2021 Earnings Conference Call. My name is Julie and I will be the conference operator today. At this time, all participants are in a listen-only mode. And as a reminder, this conference call is being recorded. This afternoon, ChromaDex issued a news release announcing the company's financial results for the third quarter of 2021.

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

Brianna Gerber

Officer, and today Chief and Thank us Executive Corporation forward-looking third call. ChromaDex's Chairman, Karam. Niagen development such new opportunities, Founder Financial development financial and Chief plans, trials, well and Farr; Executive filings, Fadi Frank to quarter you. prospects markets, and welcome results, Marketing related call of ChromaDex and of results future Officer, conference operating XXXX Kevin results may performance, as Chief opportunities including cash timing Good statements, business and as investor Tru future Fried; operation. to and Jaksch; afternoon regulatory are research results anticipated With the trial Today's investor ChromaDex's of Officer, in Rob clinical the include and of interest the business the and expansion needs, timing of sale statements

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

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

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

Rob Fried

Brianna. you, investor our everyone. you thank afternoon, joining And Thank Good for third call. XXXX quarter

This on and milestone Today, for the from jury. receiving both This Frank Chief our human in to and Karam, achievements $X.X an Officer, what Tru important quarter California litigation expect XXXX. discuss furthering hearing the building look to largely the marks us million an now awarded to more because to by inflection financial, behind is the approximately us can we $X.XX we The was point million the ChromaDex. that important devote forward and is our significant relationships brand, science quarter, briefly our scientific addition can with developing of tasks Marketing to results financial on the partners. global Kevin Niagen global will we in our this and Fadi resources,

published and Niagen we Frank completed this outline and will clinical As and involving trials over now I XX clinical additional in progress. have significant XX developments greater said, the have scientific been But in trials quarter detail.

groups. XXX CERP, collaborative Our has now research industry-leading External over ChromaDex amassed Research Program,

our others. investing health, support product cellular We're trials and going to marketing extensive focus translate future messages, health, in health, in aging, forward body including science claims marketing to of growing and to Our also into build and heart is this compelling in pipeline. muscle clinical

could plans. portfolio study property COVID-XX NAD and includes III these of As of Phase is riboside and XXXX Of long the and many submission be company's discussed intellectual reviewed but safest that Turkey. NRT, still showed levels, of to we've population the a Still, on plus dates And our is ataxia-telangiectasia fact total study XX ranging goes on part patents, in NRH, knowledge, -related This with approval and in NR NRT, far, of NAD To of to ingredients study it scientific to the related XX NR first well is Ministry in of ScandiBio issues. is results of applications further with potential the properties drug an term believe health with NAR. best premature best interesting way or as beyond in relate Health orphan chloride. AT important we the and recently benefit manage the We Previously, nicotinamide expertise NAR, have maturity AT. our NR unique being the evidence Niagen's you of interesting Turkey. XXXX. to a of cocktail and NRH from because by all also particularly for by know, aging. clinical ChromaDex All children supplementation announced the characterized patient disease this impact this by cocktail of

time. this We further have no updates at

boosting pharmaceutical of China. Chinese partner companies. in largest for given the consumer to a deal and about possibly products strategic highlight for consumers ChromaDex Xingsha of is domestic with Walmart I'd the most event have our to Sinopharm one This Sinopharm of Finally, enterprise Group, among this Niagen partnerships. very strategic quarter strategic excited Perhaps was potential like Tru Xingsha, Ro. a presently. and subsidiary We're state-owned awareness is China's Sinopharm. Sinopharm most three NAD the our of high

on product XXXX. market discussions believe new in sales accelerating available existing cross clinical anticipate will We're sales in led by it initially NMN, mononucleotide, focus to should NR led new data based Sinopharm product Chinese Niagen we currently on be by is marketplaces. date. formulation evidence the nicotinamide across While safety Tru the We formulations. a and border off of currently our

companies larger XX,XXX Sinopharm's health secure China. will agreement ChromaDex over registration the plus but broad be to believe up is milestone pharmacies This a food transformative and a given in collaborate process, potential China. multi-year the for time. this market because We in to distribution a is partnership this network would open has Additionally, significant much

Our by Walmart first commitment with first earlier we're launch review Niagen. this year as to mass our for launch our strategic US building team's Tru had another marked the for and line continued company Walmart encouraged their the retail category. We recently milestone

include shortly. we've education programs, plans Fadi national as TV and course, a of future discussed, Our will campaign. packaging a this further refresh, discuss

new with with Ro, from in launched our it Tru Finally, features was a is that their is beginning Life's by packaging September. Ro Roman Life phased with Roman product partnership Roman approach subscribers. Niagen. Life, launch taking prominently the supercharged

support will maximizing awareness, them consistent We with in phased their launch strategy.

dates Niagen We W.R. best-in-class are We Niagen is develop Grace, because we alongside worldwide, a growing partnered of has that pioneers industry getting over with back supplement call we in and and and science, reputation customers our H&H, chosen like now many on point the we the our company an selective featuring partners, to thank commercial Niagen we fast said, us We as the Frank? valued and work to Sinopharm and Tru over pipeline Walmart, have space. startup Frank We Ro, started. regulatory potential. shareholders, Xingsha, I update research, enter their pass Chairman, you at as we ChromaDex in As of products employees research. And of the these our the Jaksch, on proprietary And of the just including companies as believe focus growth. teams. the will a scientific which currently our compounds, R&D this and I'd company. years. Tru partners developing believe an XX next with phase understand unique operating this dietary for And tremendous do we're inflection scientific relentless know, we as for are obtain approvals. I

Frank Jaksch Jr.

I'll Since publications on exciting Rob. highlight were several two. preclinical you, Thank update, last briefly our NR. there

retinal health. in builds cell chronic study treatment preclinical NR upon evidence ganglion found a eye on of growing and protective survival, the systemic rolling First, is and models body that acute NR's of with

of a neuro DNA and senescence. memory brain inflammation, increased mouse in that learning Second, improved in mice with disease, also demonstrated NR model cellular NR study levels reduced administration and a and damage NAD of Alzheimer's Alzheimer's.

or ataxia who with results protection against a our reviewed of aging Biology. and The addition, from Rob results standard balance be scores pathogens. found on patients we non-alcohol nutritional findings NR patients ScandiBio four liver benefits first Molecular were of October trial And XX a XX. liver human our in analyzed. ataxia, Therapeutics. serum exploring of immunoglobulin of one fatty protocol kind protocol disease increased In antibodies, them speech, or are level received improved G included through of from its NR ingredients AT which NR. on laboratory II AT the the parameters XX, of clinical with blood a that and patients published group study of journal, important under known research of XX% reduction function The patients in announced nutritional NR prematurely study including on of several and this telangiectasia, for which concentrations. improved a were life, is in immunodeficient, and a quality studies coordination, AT. promising This with are inflammation phase liver of effects participants decreased The is and Patients as in for affect mentioned, with serum disorders fat with collaborator, highlighting XX improvements age ataxia to clinical in peer immunoglobulin children, Systems

to and Farr. to that, the Chief several the in excited months to NAD our are pass additional share Kevin? call our the With Officer, growing are in market. studies remaining of committed We Financial I'll Kevin leader completed results coming

Kevin Farr

breakeven an with underlying $XX.X larger legal slides. campaign litigation as a our the investments drive we're legal behind cash Frank. metric Thank adjusted important reconciliation GAAP of total growth in We margin appropriate launch. believe in a only gauge towards year-over-year, flow our in overall a XX% brand million, a earnings third you, us, $XXX,XXX of expense, gross with quarter by included quarter. prioritizing EBITDA, support to remains sales adjusted Furthermore, measure release XX.X%. expense, expense we excluding posted to up a and the to significant EBITDA and loss Walmart The our of delivered ChromaDex measured progress a business net metric, excluding and non-GAAP solid

planned P&L discuss is national sequential larger Our for trends. campaign begin by reviewing I'll we'll early currently the results then year-over-year and XXXX. TV the

the XXXX, of sequentially. X% net Tru ChromaDex the in compared $XX.X sales million, Niagen of million three were quarter months second reported down down $XX.X September XXXX. X% For to sales ended XX, net

a at launch driver largest in the stocking stock as Walmart the is Delta Watson's distancing manage lower COVID-XX variant sales through safety We traffic X,XXX the the $X.X XX Kong to sell through as shelf Watson recent travel to Watson's well concerns COVID expected, stores, second local due build end still COVID-XX The to marketing through the their The compared the supply quarter, improved initial to at programs which to impact tourism We're were headwind more million resident in has this traffic sales steady. As is We've compared down as base store at headwinds. was have in and the distribution to million catchup least quarters from the working XXXX. recovers believe Chinese through centers. the sales following quarter third Hong to related with pre and improvement is to year-over-year recovery disruption from $X.X social levels. fourth lower COVID-XX. chain this complete. expect shipments remain with sales restrictions first seen measures, the that the second the slightly of drive quarter And they from may quarter. in recent and returned not in some of we demand. quarter Watson's while been is over economy aligned yet support sell the

Our ecommerce X% sequentially. down was business

Amazon strong, the with Prime sales in a we challenge business faced last comparison While remained quarter. Day underlying

in promotions entering optimistic is which by strong are fourth China. We US seasonally and the quarter, the driven

ingredients Niagen driven Health the to sales by life quarter, were Our and XX% prior shipment to extension sales Science. a up Nestle versus

XXXX and Our flat of quarter were XXXX. gross third in quarter margins at roughly XX.X% the of second the

in of the $XX.X chains. the XX% supply product to $X.X up second across to marketing scale XXXX year third in product $X.X compared due and better margins expenses savings million of are tracking supply XXXX. for to offsetting million overall Total increased cost than We compared quarter are currently slightly inflationary to and goal third well XXXX. second quarter million, mix our to the of full XXXX the Selling quarter quarter initiatives, operating chain $X.X pressures global of were million gross expenses and of

expenditure second percentage XXXX. on customer was As trends sales, this the driven XXX higher advertising basis industry quarter of points net third quarter costs for the XXXX new a of by experienced social broader up costs versus impacting that channels. acquisition, of in are We've

in on test messaging In conversion. that we larger television more addition, not investing spend immediately advertising top rollout. brand our of and we're drive campaign incremental networks brand This ahead includes as does of advertising funnel

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

XXXX million the quarter of quarter to in quarter of expense second $XX.X of $X.X G&A to up reported, in was by third second million expense $X.X As the in XXXX the third million to quarter Legal the was $X.X $X.X XXXX. XXXX. million million compared of versus up

the the in California activity and saw to increase litigation-related legal expected, due we As quarter increased corresponding expense. third trial, a in

for However, Delaware lower September. expense a discuss than the XXXX since our for it in did take quarter was place I'll legal outlook trial not expected the moment. preliminary in

compensation second quarter $X.X and versus hired equity XXXX of third comparable XXXX was million by G&A. Excluding severance, quarter expense, legal fees, the restructuring &A

quarter million operating or for third attributable per of net compared for of XXXX, the third of loss quarter a second $X.X or as loss For second to $X.X of per net the share shareholders in our quarter was quarter XXXX. the common loss versus loss XXXX XXXX. a share of $X.XX $X.X of million the $X.X $X.XX The loss million of million a to was

Moving Niagen, in and growth including sales. year-over-year BXB compared XX% e-commerce growth were quarter year-over-year net Watson's growth Total third and XXXX, in combined to XX% sales results. the financial the up XX% XX% with in to Tru other of

drivers of sales net quarter earlier. XXX discussed points compared to of to expense net third Selling a ingredient XX.X% basis I year-over-year, to up sequential points the gross to the increased quarter this increase margins XXXX. drivers Niagen and XX.X% year-over-year by of XX.X% XXX and Our The XX.X% in marketing compared were XXXX. basis percentage in XX% sales similar to increased were third as the of

functional expense growth. is and million, million, to due support As reported, legal $X.X general well of in technology administrative headcount higher higher investments and $X.X by and to as expense key primarily areas as

and organization and $X.X year-over-year were Finally, million our operating loss higher and increased margins cost investments by expense offset the more savings by marketing. sales as than across higher and gross legal selling in

the flow. balance to Moving sheet cash and

strong. in vendors We was operations the Our the credit. net quarter negative use second of customers. collections cash a to accounts our of remains of XXXX, access to accounts receivable our a $XX.X $X.X a third the from of we quarter balance quarter cash and increase driven due the with The payment our $X to XXXX. the million million this line million in in in committed to timing sheet versus business and ended cash, quarter the negative by timing difference payable million business not In in of used accrued $X.X was did due expenses and of primarily decrease

marketing, it our brand Consistent underlying prior in position As provided our press XXXX, we larger as legal in and invest The in a the ahead expect business outlook, organization year more fourth along adjusted achieving to to the on outlook, relates leader profitability. awareness, focus slide full measured more we EBITDA a we but the is in metric and to growing with P&L key quarter our choose essentially details acquisition presentation. NAD our key of maintain campaigns expense. XXXX on to we earnings customer performance have market. excluding with R&D for release year-to-date as brand remains will growth invest may in and of breakeven XXXX This the investments similar our by total XXXX we as for balance metrics

continue to outlook. year full our sales, net consistent steady to growth relates financial revenue previous the it we As with expect

our cause Ro, they will we has and e-commerce H&H to growth. ramp expect quarter grown early more XXXX. launched coming fairly growing Niagen in new including may but Walmart, which new consistent or their a from featuring business product partners, launch Our in H&H steady to sales portion and until later quarter, volatility this Ro consistently quarterly are Tru up year September of

As such, to we the from expect sales to H&H benefit fourth beyond. Ro quarter in and and

new as H&H As as we partners, including and look ahead more to a XXXX, in Ro, from the contribution pipeline. we our Sinopharm meaningful potential well other strategic partnerships revenue Walmart, expected

next potential from are look in earnings We campaign and our benefit theirs beyond. and Our we notably the Group the own And H&H about TV should business national strong China, and plans US excited our Tru year. in sharing partnerships players and more Niagen Sinopharm the next e-commerce on forward with to XXXX about call.

to expense legal like I'd address Finally, for total our preliminary in outlook XXXX.

and expense consists Ongoing million each general balancing opportunity additional marks expense of summary, near-term an decline I'm the company beginning that growth us enables proud will objectives. legal will in including This We'll litigation case, short, a to XXXX. the expect We million. and prioritize significantly In the at York which continues around profitability to in investments fourth and In how ChromaDex. business. patent, milestone expense, the market our team behind would well look We for important primarily $X execute, litigation. shareholders, and accelerate very as be our believe to corporate of the appeal, long-term us, quarter XXXX. for optimize to this as should expense Thorne expense these largely litigation headcount the ways baseline in $X Delaware the New conclude cost IPR of than legal with outstanding less the continue budgets

pipeline, his and the is marketing robust, including very growth that, experience to more worked team Fadi. and Fadi? our Under said testing refine continued all at R&D internal leadership, particularly during development our I'm much with the call last With concept the across is to channels. I their our I'm over we turn I've time strategic brings and that quarter, about the Fadi I'll business XXXX. ChromaDex. brand the strongest their building to As optimistic use capabilities, I company. global believe excited team my has as enter potential accelerate importantly, build messaging about to to

Fadi Karam

speak share at to followed engineer an to P&G Nestle. a and more plans. roles started It's I traditional at Kevin. upcoming Microsoft, and career you, pleasure you about as brand my today all our Thank by more marketing

So my and team our about are science at we to building work concepts and them plans, and I disciplined methodical marketing being on are basing established aiming our and then how scale. use strategies

is that younger and the a should concept in more repair with XX this vision household, someone message concrete, Delivering over that presence, mass and the aging Famer. health scale cellular many makes this shot with of and marketing every a is early true Hall cases. this with quarter brand of media one in present vision our started see you In even spots on Our requires that coupled can including TV, straightforward Sharpe, including plans, use using believers, Shannon us NFL expect have we which XXXX, national of television. to the of our be

messaging consumer quarter needs. this targeting different is next our to Our test shape TV year. That may and of include for creatives presence types different meant plans our

celebrities with other Niagen the A-list reach us national We exploring give who deserves. working also can are Tru

to that fits to Tru briefly criteria how whoever on is meant representing I'll our Walmart. plans and of our this ensure Niagen product brand We in image. authentic, touch have for believes relates our is a list

launch been US, first the this ecommerce has current the learn priority our mass and retail in are versus top to our consumer needs test consumer. of is the As retail what our

from point have tests interact Our micro we of There from sale with valuable and two date we the launch been with efforts. has see to results primary very at early team coupled learnings influencers Walmart. included the guidance

Walmart. it And extensive benefits. an comes that a real on its brand to education at have so to ours has estate to back First, shelf key limited like amount when we research do of is

exploring So enhance to we're in-store actively education. our ways

Walmart, of Second, we reach wide choose must as given the marketing channels unprecedented such national with TV. geographical footprint

this business Also, As is accelerate will brand XXXX. our enter beyond priority our Walmart said, scale. Walmart. the we accelerate top well I on with as consumer extends our as you we and begin both to that our when education we it know, ecommerce And business experience believe

experience to to such scientific forward channels, are latest So working sharing plans offerings. more across we from enhance look of our future. with and research product all to the excited in the to you I'm part sharing consumer increasing be great

Now pass to back will Rob. it I

Rob Fried

and Fadi you, Kevin. Frank Thank and

over to questions. it turn let's Okay,

Operator

[Operator Instructions]. Jeffrey from first And comes Cohen from your question Ladenburg.

Jeffrey Cohen

Just side. a our few from questions

far you and So, it, what's as at Elysium now know company and the as the sales channels? the status, as the

Rob Fried

We sales three debt operating. They does of years. don't don't for look June don't financials that they're much. which know We in heavy recently, about far how current good. NR. flat significant been There's contain We were as financials much so XXXX. released have to not their until of liabilities a assets. product amount their new privy a They've and they disclosed of not And We excess of know recently. know

do an ChromaDex So market, forward. this on for them two have product we going third of three the important don't see not is issue But as NR. their the

Jeffrey Cohen

for next down XX%, picture, by XX%, big going expenses, legal like year be will sounds It XX%.

the far the plan? So plan overall in Fadi, that marketing and included into going the sales and how does forward, television as expense as with tie

Kevin Farr

are you financial a asking So question?

Jeffrey Cohen

from legal next year. Yeah, by I decreasing double guess the low millions digits will G&A be

we expected? the we do will further does what Or dramatically and marketing So how more work? currently that that expect than sales increase had

Rob Fried

overall marketing we time spend. Of course, careful be with pay increasing conjunction especially e-commerce business, the with investment, in attention very we on real return regard to Walmart. the will But our media to

investment anticipate overall marketing. sales can larger you and a in So,

Kevin Farr

year. date, like at And as outstanding, well have is for about year not case Delaware year, my at there's mentioned the a things for remarks, went headcount, I in have a the indicating may case. well And matters quarter, potentially $X less got, prepared baseline New to we for I remarks. earlier, when at you $X look this appeal, over, general look think in addition the corporate we we've IPR, litigation Thorne expense the as court the November, my it's I look, million. each the $X is expenses million. about if and That scheduled, judge to million as do indicated, just could $XX in scheduled. December. run think is legal million as It's fourth the rate about that it year, I be but happen full And as as Those mentioned as be the I which three less the $X York would than on prepared million, three patents

be again, in more start invest as in then legal to think jogging. works a in disciplined it And going doing that and be We're we're then to spending to to when going over likely it then then we've lot I it's about way. the working, there testing to marketing and based marketing. for XXXX make crawling by will really So, message, sure of measured right it, and start a pivot very a information. and we're we And think on we're off going should to significant know walking to I do run. got and we decrease And

Jeffrey Cohen

liquid, powder, new further sachet? Anything as you that a flavor want on? ideas One working do there? I any Any say be color tablets, if formulation? more, than as or further you're sounds the give like formulation far to may. Is additional that going Can you us to

Rob Fried

that we XXXX, release a another will in that, product anticipate Niagen. do includes We formulation capsule of

Operator

comes Your next Oppenheimer. Brian from question from Nagel

Brian Nagel

a got of I've couple questions.

the off, got First one on on science one and marketing. I've question question

this So, for I'm Rob, going to you. separate is that.

at and all talking scientific this your the next which now, have just have so impressive. of with basically stage, I you upon comments, and is as say, it to team been point? you Tru to regard piece? did missing something that is here has Is Or done? a in you still behind needs talked question there You done, Niagen as this about ChromaDex to of science that work embark The the Niagen, particularly your there Tru complete be development the of

Rob Fried

we always It's by are never this because molecule. complete amazed

clinical we Of are now. XX right collaborative in process in course, agreements place. remember, And there XXX studies have

research great about have exposure a our had early health. deal there's continue will of we not how see is good some yet, So, of but which to nicotinamide to, some some riboside on news expectation that going we we've improves presently,

that it's just us complete. say ways in not new claims would Not There but that be alternative take products. research. may to for of advantage I new formulations, So, also

We have to to to we today want where get enough get to.

Brian Nagel

the the welcome, Welcome company. Fadi, by way. to

So, for you. to Probably well. I a this guess is as Kevin question related

your a marketing your what are for this vantage prior financial your or will we've to the to a recognizing this getting that to slowly previously? question. marketing. how As of different still regard comment new financial several campaign company follow-up seen it's But followed a we from be company Then, Kevin, be much lifted about point to being move of you a some recognizing this will guess, kind few next I new plans, question, the from for having compared weights I as prior campaign? someone But towards you now use question have this obligations litigation. as sorry, How Kevin's past marking is, to the quarters, quite the the – or just investment look over just while, product marketing much and the at while, talk throw on as with financial willing to early,

Fadi Karam

by part question. the me the of Let answering first start

And me, And will recruiting were in one, education, a to they job. this how the then like have seeking me few and and they research. you don't my because years, seeking entire like ended usually usually thing first will for I led adopters, a people people then this go a new when molecule up I didn't know, looking you out the who I go I then, wasn't know – the And for need Rob the to early As family using reached really that's have one and time. product long another. they education, been

few first years, a we much marketing wide for ranging like of me So, consumers our of is work wide And the in have to how This marketing after going is our But product this the that, effects. are effects on to are educate really people you. do so new to must – effects consumers. about ranging given a job scale, are the come – to we health as category the that, the then Niagen, team so of the education. it. science that The ones behind

previously this to work difference been about was audience. phase reading the said done phase next ecommerce in or think available, XX. above was with a as to going I this make anyone – between and well-oiled XX is In to has my a the phase that product I previous larger be I phase household in made, But the truly of truly every believe in many machine. believe have is the statements needs cases, earlier, and I younger amazing even Because people. to we the much So, the what I product that previous the age

of will to very will education and that's that that, have requires it do using benefits amazing life that extensive is we at the what and ensure that day message the team day at me scale. resonate methodically, quick research going testing bring been the molecule novel, changing to And have we're life to message tools to my very, scale So, and the after have.

Operator

question next Sturdivant. Mitchell from your Pinheiro comes And from

Mitchell Pinheiro

Question for you.

said you so, concrete. make more that benefits need message Brian's to to around on be Just you staying the Fadi, aging question,

Niagen aging of is haven't specific you health is can't the this of mean A claims around and there about some been benefits? much as your do So, you Tru make lot anything. more does way, as that specific you prophylactic in But diseases. – doing in in terms is concrete that can messaging –

know really what don't are. You the benefits

not may You feel them.

see or things. blood And unlocking may that. could about message some them But You a talk if in work was other to the key seems to to you faster growth. be get wondering concrete I

Fadi Karam

The answer is absolutely.

tools. one some a for testing of look, ways testing, is we the example, messaging, use you, live If do testing of the some we take we're

NFL So, the tests football live one doing the of player, Hall of the Sharpe Famer. copy, we're famous Shannon is

have for speaks seen might then other says, you there come see iterations then, like that of it. cellular some and beast TV he to if And on now it's are And mode you copyright a are up, cell. going your energy. about that he have copy, We

is So, research, to the hallmarks aging, of one of according our most important energy.

and the we talk is day. XX, the old, I age the one that the among which I'm thing have first the afternoon, And and in subscribers, be I I age, most to things go a energy with to on with take that same energy feel other and thing of or so they having of of frequent grandkids, report, we're as more family, years that's the we to we course, play if have our that so as during XX feeling XX, above don't things, levels my of So, need think the not same is, my to nap. forth. we

So, energy or energetic have cellular we is that basically something heard feeling reporting. more energy, consumers or

it them. his more about, in working make the earlier, around we're written mentioned can remarks Now, are benefits to also Rob we're cognitive around, is that there heart so working which substantiate liver. health, question as we health, – through science, to was Then stronger claims asked internally answer

are So, these aging. all of signs linked of to

online, personalized why about message of how you consumers can of the top they what funnel of about go when and TV and But are funnel figure funnel on through using we all we're the with how but you tools, top this. have in start cannot trying or is, make the you experiencing we out they the to So the the to of top aging. message, go general funnel, on understand us – how can more once you the more talk you you because came to TV, talk engaging

the So, doing now. of kind sense? we're this make Does is work this

Mitchell Pinheiro

I does. the you've what It sort does. It plan to see what between final been to have the you differences are do. and of see what doing to work

Fadi Karam

answer the part I'm going second your of question. to

was part people second we make The it. how feel do

sometimes and As you feel What very weeks. immediately. few you said, takes this feel it a is not you subtle something is

and if our So communication more, product we've buy engaging what we expect. what more our and packaging been inserts, email, through do, whether at through to it's is to subscribers this you Walmart, tell

successful to was inside repair really lead does forth. cellular you of after that where so week? of to? interested expect their body? cellular in NAD One and our nine of consumers most on first What's NAD what in posts ever and happening really see the week bodies. so happening fourth about do what's talk inside the What's – What blog what's are benefits first happening could know you in Niagen, what's then, six health, And we that taking the So, terms the happening What's in your you're months? month? happening happening

manager, with most consumer – consumers working, So, with on to allow using, most behind; world, working, more brand consequential are most you engage car engage and my another brand you your one how only you stops have consequential will there, it. the change brands we're your that engage and from engaging can one; out working body to little potentially because, in consumers cannot your But stops one of we believe consumers. with you Every the are working, are them. phone have we We time brands that wants their be personal stops every important only buy lives education. again, it one on is but very in the of things the a to experience, when leave CMO

has saying is on we and, it to hearts your listen opening being is happiness. very when with life. linked one's is say. we're then, live and impact they ultimately, to So, And an their that communicate our them how care will know have for what health, Because long important is their able health very we hands really their see to they on consumers, to why to body this them, happiness, to what consequential we

we the of connect to why first get first the this these of explain up taking this as expect subtle then changes value with consumers, So, and go, ability the to them them is brand. year, we're to how advantage understand to our from to what more to week

Mitchell Pinheiro

questions. to have I this I how us you color two look more breakdown looked? I Rob, recurring you there. seeing give customer around customer e-commerce growth, forward ask what versus some happens Well, every can new quarter, but

Rob Fried

Remember, events. steady was does. lot the second there Yes, overall first big to quarter number the The Mitch, event where quarter. growth A of for in a always Amazon of but the from consistent, June was three in special has And do I can. it this there looks as the days growth and days the with Prime was numbers high. quarter, an also were significantly

for put as it in if retained on we And day in, a we customers. customers back steady new are as quarter so, growth you was decrease acquisition. another you customer if normalized was it that well But new steady, it, consistent. just us slight But are

in there's the noticed that have increase marketing a We changes with in conjunction costs. social media Apple of slight sort

the But customer steady seeing late. a in one quarters. of a was on opportunity monitoring the an didn't on bit e-commerce is consistent acquisition So, costs answer this we thing we're Brian's with We're day and There's day in of quarter bump that have spend. previous a to other question basis. to

we'll Mitch, an to if if back see then additional come quickly Kevin ask have you and that mind do you I So, to address question.

Kevin Farr

asked regard and it. how Brian's to are he it to With going question, manage scale we

that a we'd with years and of obviously, So, being at looking we'll advertising continue here. that. spent of time XX do And about disciplined Mattel, at lot to experience

ensure going I know know know also before, it time. both metrics over invest is like how e-commerce as as business, at the And investment. a margin. scale, we I think, ecommerce earlier, rate mentioned business, looking that, our well and has on we good XX% as mentioned and we need important. that's we we to And frequency to we is raise to, the on growth the our as as we Walmart, that level about reach news And at scale success know sufficient to

business. done the right And and got increasing and it successful funding continue we from our as proceeds more be marketing we'll time, the a working program. will with to metrics we can it. in this message, that to over time we'll that be said, the make And confident in successful scale achieve become scale I future as fact So the over

So Mitch, got question? you've another

Mitchell Pinheiro

Last question on Sinopharm.

you a have in I formulation start border remind would supplier you So, are start? half they'll think will the and manufacturing? a any be doing guess, Sinopharm me selling, first got when has that Sinopharm that or – And you to of XXXX. where something is Can cross

Rob Fried

business As cross presently JD.com we a you operate Tmall, ourselves. know, and WeChat. Kaola, border

pricing, those platforms. But be doing they're will about about about taking analysis detailed messaging formulation. a they So over and very heavy

new for don't they're timeframe, platforms. management to point within I those will that at probably But time, And likely of we and the with So formulation is expect a likely know connection it that in be a product sure. be six within months. certain there that, Niagen in over take existing in to into product, going addition China. campaign is be the a with there conjunction that in to Tru to

Operator

H.C. Next Wainwright. question from comes from Ram Selvaraju

Raghuram Selvaraju

purveyors? with potentially sole by in of of Firstly, expect Sinopharm real to via Sinopharm I specifically, sold NMN extent nicotinamide relationship be the as you picture? on anticipate, you Chinese sort products what be you that other the being ask up to be the position riboside product rid drill currently that respect and saturation in to little it cleaning possible Niagen the might Tru effectively a sort which process the based bit wanted And to get are to of to what down market and expect specifically instrumental

Rob Fried

how factor don't off two it's on a As maybe you a We exactly know, be quite We our be We Ram, year, three. know think by that's NMN in popular been excess overestimating, much. only a but is million. rough We it's year-and-a-half. $XXX market in or China. And estimate. of the of could could

of the China, NMN that, cells. that than government you converts they're into And to order proliferation are NR NMN all is regulatory have many be first scientific to in fairly which as NMN, a But actual has on selling showing up there are to approval. the many does. NR recently, researcher is study NMN spokesperson main you because himself like worse bloodstream in to great are have But not it The down what and Chinese the claims, NR know, listening it has to make a significantly NR. NMN. But of taking cracked a cross of claims, of Indeed, who taken it in NMN. published for at a Harvard, that make companies superior NMN deal So border. number who's making does great there's

very is of why is all Sino expensive popular NR big aware of Sino sure level about NMN safety. They're knows really, NR fact a fact doesn't the – superior. is and This the with reason that have the business that inefficient ChromaDex. NMN aware was and of very they're we're So, not this. and in got it

So the do opportunity this to is that the drove them deal.

then work So a already them market and established with capture we beyond. that's well to excited to grow been are

age that the there'll Chinese million know, government. aging or over coming the with in in priority the a it's be high million health estimated maybe XXX XXX years. China of you XX people and As Aging is very

this see we opportunity. as So significant a

And so does Sino.

Raghuram Selvaraju

is product to development of wondering you In words, side, a solely clarify of business. was you be Health pretty kind obviously but what big Sciences if also pharmaceuticals, demarcation the on with their you on other expect expect to out not you Sinopharm and it's with all folks, of we prioritizing a the that I part collaboration is Sinopharm could and their Nestle the between focused relationship? diversified particularly organization, that know doing come what pharmaceuticals

in and whether the I doing versus, be purview with the you consumer more to to medical of Nestle solely to of understand example, So whether nutrition well? you what or some wanted is as Sinopharm work Sinopharm arena for development better Health type products that's the guys that going relationship of to Sciences to extent be be the expect going product arena

Rob Fried

question, Ram. good very another That's

So, China was deal. of out carved Nestle the

from have Nestle operating but the was deal. course, not foods, in the of expressed have in interest excluded China, They, case that does of in rights. medical So, those

Sino significant as operate who do And pharma molecules. in do the as arena, the NAR potential supplement well Secondly, you just NRT that dietary as and potential of nicotinamide these NRH keenly other beyond and of have and riboside aware know are both market. Nestle companies the benefits

or drug about companies So, both the some will food of be developing or that for medical future those either there sort matter. the that a in with of one other a it down discussions based is product road or possible companies

we and We the more have We time the lot Nestle scientists. Sino spent spend the of to much with spent Sino with time a expect time with scientists. scientists,

these long-term of they They're imminent. certainly possibilities. possibilities. are all not short-term things So, possibilities, are but not They're

Raghuram Selvaraju

with studies was more treating situation on if anticipate but I any if Turkey nicotinamide the not claims, of with, wondering there, updates infection. riboside you wondering market? the specifically context additional the published and should there's was had looking Turkey me. of know for further combination in at further Certainly making I work nicotinamide one for been pharmaceutical could that just COVID-XX Turkish of the additional respect some work ivermectin, example, I historically drugs provide and an Just in if done clinical potential you on for whether expect any like we the news, you being actual update exploratory near-term in riboside, any medical to

Rob Fried

Before Frank address I Jaksch, an let ask like that? give me you would to answer,

Frank Jaksch

take can that. I Yeah,

don't for you in We probably further And waiting updates one in medRxiv of going the we're And Turkey. on have no was published. Ram, But additional what's it's now process been any terms plans But right on As version are piece in still recently the there earlier where that had of saw, on underway. clinical terms that it's of at. it. studies.

I regulatory game think point. a it's waiting of this really more at

Operator

Riley. Sinderen Van Jeff from comes question next your And Instructions]. [Operator from B.

Jeff Van Sinderen

share spend, you're around run especially testing sales of by sort little ad metrics TV give to but of of doing, can is follow I sales to seeing driving on And how the you're any in up you or Walmart want the relevant wanted you the early, bit us what's best Walmart, other terms then any response testing. curious, you in when Just color more working any it of in terms you're if might to it's realize things on that. way, a and marketing. any

Fadi Karam

acquisition. And this testing. how then, As Sharpe we the TV. we like types test briefly immediately look have of tools within can two and iterate testing looking up into Shannon we then searches of within and offline can course, use we Google having And we with day of then, – at test One mentioned tools from messaging on thousands earlier, live, – copy again. is to a have I anything where is where impacting people

with So, start latter. the let me

research honing we're right? the to studies. On XXX on earlier, almost the right messages. resonate we've because Rob we have messages by what with testing, been already XXX We're see mentioned much at We people research collaborations. backed offline more really so say,

Prize We the have behind brand. Nobel winners

the terms And We that's of only have have we more XX benefits. backing and than the science in all the patents. of

is takes to what trying fit this a XX figure message to how seconds. to that in So, this XX we're out,

in has this unsubstantiated been resonating that to start spoke Sharpe but say Shannon to category when it's Kevin see science, can yes, and is learn earlier, and resonating the is and from It's which comment, On scale, summarize we the starting it's copy, too so a see to we results. to really, early making basically. Rob this To so claims, I can this, that competitors results. now would starting then, we what we're And we we've there, speak about really about we're see much really noise, many well.

Rob Fried

that the I'd are real And we time. ads add TV in tracking

investment decrease or the you on media in increase based can those So, television results.

Fadi Karam

Rob, would like take you to the question? Walmart

Rob Fried

Fadi. ahead, Go

Fadi Karam

need review we for education. the really are about very just the earlier, They them. category. the as Walmart, understand with Rob They For had mentioned line passionate

education So cannot happen as we shelves. mentioned earlier, on that know only we

marketing, which beyond consumer So the of with using connecting and our besides other TV need in plans methods, the the doing Walmart mass with the shelves. for what discuss we're team of we terms scale

and we the So, forget world. We're not to smartest of the talking in we some helpful. incredibly walmart.com. let's have have Walmart course, buyers – of They've been

and have figure benefits the a Niagen awareness they So to how helping of out Walmart they've to Niagen. really around shopper us for drive how the and lot experience been of

Jeff Van Sinderen

I of what maybe might margin up W.R. just inflationary guess you're components, around on on or sort and what material of shipping, ingredient seeing sort since level also those any maybe that of I prices, raw of raw idea kind and this seeing, follow And going impact what anticipate from to P&L wanted inflationary Grace around you anticipated touch labor are on forward? you of also, gross labor, impact inputs, things is can shipping the ingredient inputs?

Kevin Farr

margins. With I our see don't regard to XXXX, impact on major a

slightly achievable. getting XX%, think higher that the than I is to So,

you margins through if look think about gross I September, XX.X%. our at it's year-to-date

year, on at next maintain focusing we're For moving XX%. lot of than margins trying pieces. a There's our better slightly to

cost margins looking business But impact to the on something scale on on already earnings we of again, plans us, those But, our XXXX. play. are to our outlook favorable a environment. at talked think the when an you expect maintain think our continued if where we're see in for We dynamic going I that it call. next that look detail things for margins. more chain have are I up, you pretty the our we at it's And I supply all of in things. about going our again, we'll at, XXXX end helping things made overall provide initiatives. And mix. be savings we're We all on ultimately, won't And pricing are to is at think to The offset looking product And we'll as September. costs give achieve

Jeff Van Sinderen

any would a to of guess, perceive they guess, them follow-up have from When that other a have like for the SKUs line In presence products with better Just they you or indicate idea meeting you? more or, kind that? are kind did more line to I real them, than on Walmart. your sort do did words, building comments of, around of brand I just rather you

Rob Fried

much the not. know if about don't means I happy relationship, be excited about this don't of have the further or Walmart point we but we with and very the ChromaDex. line future there'll think seems with product comment at to that We're that. extensions

Kevin Farr

presented XXXX I them though, and the line that. in were do carrying product think review, they that at we the interested in that to

Operator

Bill [ph] And [ph]. from Capital we Titan one from time for more coming have Desella question

Unidentified Participant

that you release does have I'd that The to actually the two that ask all in if compare science described AT Cockayne and in with Syndrome the how to I you today, past? here interacted press may. questions, like

Frank Jaksch

a basically, It's abnormality. different It's to leads problems. It's genetic Frank. genetic similar similar a sorts defect, of that

Cockayne no as does severe an but of is there is to type the more XX, affect but you treatment will, way AT component accelerated there it's is, if So, than population, it Cockayne. AT not for severe is still and AT. sort under aging as

Unidentified Participant

loss was Alzheimer's? study truly then And specific that middle was the memory on the referenced, it of prophylactic a that to done and the you effects Or it of in reversed Alzheimer's basis?

Frank Jaksch

and it's more say wouldn't I of the latter. Alzheimer's prophylactic kind it say – is tough. I'd was

You're any it's to out trying impairment or find mild Alzheimer's whether usually cognitive of or them.

You're some in or trying whether can way that. improve either find be – there on to to change treatment or lessen the improve decline, the restored than out curb

Unidentified Participant

And you I that bent study, decline, the reverse the it a longer was at to of more that correctly? curve? actually, were if the understood so, the And with temporary? And Or mouse then, benefit? least correct, is if was able there comments lasting if

Frank Jaksch

continued whether it went that far we I think if far would enough continued. have out not it would seen it have or don't or how

signs intent think show main I were to reversal. was whether really some there of the

Unidentified Participant

China from embedded. Number consumers' on to be So, regulatory of two I received? from questions and there humans. like that relative second question that and mice standpoint a in and can almost view. are something one, one guess Is that well this be the the kind than that the additional they studies Sinopharm would One are would use rather

Frank Jaksch

regulating government on around the a different of Chinese of there. have claims. to China, and all world approved sort limited actually The of have the claims. of has In ways list regulatory actually You're sort something bodies they –

claims just can And even having you not some animal with are actually – of support human data. the studies,

studies, allow do that based following they So, mechanisms the doing approved that formats have. claims just on study have they

would way did you make that, do do if be So, with you a to want in the accordance to the to have And you that you'd then claim. studies basically them. they able

Operator

closing Brianna at call no remarks. will turn there the question for further And to are over I back time. this

Brianna Gerber

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

Operator

conference This concludes today's call.

may now disconnect. You

ChromaDex (CDXC) 4 Nov 212021 Q3 Earnings call transcript