CDXC - Earnings call transcript Q4 2021

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Operator

00:03 Ladies and gentlemen, thank you for standing by, and welcome to ChromaDex Corporation's Fourth Quarter 2021 Earnings Conference Call. My name is Josh, 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 fourth quarter of 2021.

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

Brianna Gerber

forward-looking Good of XX:XX Officer, clinical Today's welcome to you. statements and the the Forward-looking in and and condition including including in and the expectations. risk in obligation the date activities statements Financial no are and pandemic on Kevin ChromaDex's certain actual XX:XX Rob cause not Shao. changes results Quarterly to well the materially that call call XXXX addition, update estimates as Fried; any Form and of of that fourth the filed ChromaDex are this In the to most today Senior and With and may operations, of ChromaDex's Farr; statements, results, available presented cash Regulatory of filings, and Andrew any business, such timing to results actual Affairs presentation the to statements, timing forward-looking anticipated give results to on call. company's expansion statements and COVID-XX cash Niagen reconciliations in include activities business differ occurred, Chief the Because information opportunities, date interest intended risks sale investor conference opportunities to company's call are release, to uncertainties. and relate Many statements flows. financial conference note represent yet assurance research the this of after prospects with effect its conform investor performance, and the include forward-looking statements Please us Dr. trials, the on non-GAAP of with XX:XX afternoon, company's ChromaDex's XX-Q, Scientific measures. of those and results statements. and appropriate Vice The ChromaDex's financial GAAP contained factors future Thank operations. financial the trial forward-looking present factors recently could Corporation's conference which Tru the development to our matters Report in are these subject call These inherently from regulatory business as future this to XX:XX forward-looking results not or quarter were company XX:XX results. needs, earnings afternoon of the financial of to results markets, website, new measures. anticipated future only of related earnings Chief this President assumes or have Executive results issued the Officer, development press SEC, and as actual on operating plans references

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

Rob Fried

thank milestones. strategic afternoon, stores. several achieved in X,XXX We ChromaDex launched our XX:XX Niagen you investor Brianna. Walmart fourth In XXXX, XXXX everyone Good and Thank quarter important you, for Tru call. joining

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for performance Full these XXXX increase sales were our net point environment. year margins supply we XXXX. XXX very the a Tru a sales last also and $XX.X Niagen million, XX% $XX.X in beyond, basis growth year-over-year. chain of XX% despite delivered XX:XX company many position While were And were increase a achievements million, a net in versus increase solid year, global gross challenging year-over-year. XX.X%, financial

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Andrew Shao

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Kevin Farr

financial ChromaDex or Andrew. all our XX:XX full to metrics. Thank exceeded outlook you, XXXX investors across latest delivered year on

of net increase Roughly For a position $X.X decrease more and in adjusted inflationary us selling increased a percentage chains. the initiatives sales administrative is investments in activities, slight XX:XX million product marketing the sales increased funded to measured a a supply brand expense our increase posted a than building offset year, a year-over-year year marketing EBITDA expense, $XX.X general loss invested flat a $X as and The versus for underlying net primarily we of metric, growth delivered been loss total outlook tightly was strong a in XX.X%, cost. development. saving investments expense as Tru The to and and full key in full we non-GAAP expense of has managed we for year NAD points beyond. growth R&D loss business we with excluding of Higher million across Gross compared driven organization. in of sales slight as This by as million, pressures of brand legal year-over-year XXXX. global percentage Niagen XXXX metric by basis net precursor a as new XXX of cost approximately as and XX:XX mix in year-over-year including of up XX% scale, in XX%, e-commerce. XX% margins

measured before fourth gross expense the XX:XX However, The fourth EBITDA, excluding adjusted sales with the of expense, delivered Turning adjusted behind be loss by in focusing forward XX% million, business XX.X%. total GAAP We've a non-GAAP used million solid proxy us, working measure for the year-over-year net including significant to $X.X on the in capital reconciliation with margin a a from quarter a of posted as release of a up slides. we'll $XX.X quarter the provided earnings of XXXX, expense going to measures underlying investments. highlights as legal litigation ChromaDex EBITDA appropriate and our legal cash a quarter.

our Tru I with growth XX:XX we last awareness call, be said, TV. in commercial on on to earnings new new be at said soon As As Walmart. behind significant the our Rob brand us, will prioritizing brand investments campaigns Niagen overall and litigation are national airing drive

expect indicators scale fashion and results adjust Given sequential to be P&L pragmatic leading accordingly. the by looking begin in year-over-year we campaign We'll current spending success a this XXXX. trends. in reviewing discuss new and I'll the brand XX:XX macroeconomic environment, then of we'll the at

reported months Monte in XX, $XX.X compared net rollout quarter into ended impacted delayed $XX.X sequentially. restrictions X% that For were Cana XXXX. sales XX:XX were million, three million XXXX, the down Niagen Our of more net than December ChromaDex of the Australia X% COVID-XX X,XXX by up to the sales Tru sales to pharmacies. third in the

resume While expect Zealand, more to Monte Australia, lifted. Niagen on once headwinds, COVID-XX are to Cana sales we and recently, face to continue restrictions significant Tru New

this not year-over-year shipments quarter, of million signs and seen traffic improvement from the is on XX:XX residents As COVID-XX, in We're have traffic this significant to steady. $X.X chain drive XX:XX in the restrictions recently third similar partnered While sell-through impact in And headwinds. social return yet tourism marketing they recovers having down to sell-through. the Hong sales programs and store variant to impact is a has and the to travel and COVID-XX XXXX Hong Chinese to as recovery resident we Kong been the to from campaigns In and where local the most evaluating sell-through Watson from staff sales Kong measures manage fourth economy support quarter compared these which quarter related supply distancing up XXXX. and pre-COVID restrictions. $X.X which expected, movement some were have levels. the Watsons and remain programs to due Watsons the headwind final a We included may we COVID-XX local quarter, through disruptions. million first catch Omnicare is with higher incentive in believe still

levels. to Watson For sell-through to need to continue to we sales grow pre-COVID return

up was business sequentially. e-commerce Our X%

quarter is in the we XX/XX. by XX/XX with fourth As strong, China Day on and Singles' U.S. said, and seasonally the promotions driven

We underlying growth Our were to see steady prior driven to sales continue up H&H to Group. ingredient in quarter, sales XX:XX the extension the a business. XX% shipment Niagen and by versus life

the fourth quarter to compared quarter XXXX. XXXX million, the $X.X increased compared sales that XXXX work will quarter in million H&H down of $X.X our were $XX.X about closely margins excited in third to fourth the is first of formulation. of not the at XXXX. were Nestle third in million on H&H product expense communicated, of remains as H&H team operating this Niagen the fourth R&D previously to of of new the While ingredient Total continues to gross Our XX:XX the quarter versus up expectation $X.X XXXX were expense the of Niagen. of the quarter and slightly launch in XXXX. our quarter. Selling in to XXXX no for quarter There marketing third XX.X% million XX.X% potential with quarter

social quarter costs in customer percentage in are industry primarily trends, to sales, fourth was well by Apple's advertising, new efficiencies the XXXX the costs changes as continue third up that including higher a XX:XX search. basis for and of We versus driven XXXX. channels this see points broader of acquisitions As as impacting XXX iOS quarter on of net expenditure

spend the on brand brand networks tested on our consumers including conversion audience a of rollout. time on XX:XX to Amazon, drive be plan new invested We've that we've more categories. at This in proved but spending other in their television, slots investment in does reducing are included as our incremental the continue year of and tools platform addition, streaming other areas broader efficient quarter. In full the ahead funnel to advertising television to less investments XXXX, For advertising television immediately tested fourth also prospect conversion. driving that not funnel top top we and across we customer of new of supplement in campaign

an the search to in have see XXXX. first in acquisition, We quarter in begun improvement per of cost especially

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

well we to as California the reinvest legal related dropping baseline IPR. earlier, in to the XX:XX expense allowed while million in the funnel top to motions the As some incurred Delaware nominal costs legal significant that expense appeal approximately expected, expense Importantly, related as building of quarter this of line. to post-trial $X and mentioned the initiatives Thorne savings the relegation reduction in the us brand bottom in I of the to

XX:XX share compared the to Total X% XXXX. of XXXX, a the growth of $X.X sales loss were of equity compensation a XXXX compared growth quarter versus to G&A severance, and Watsons e-commerce XX% fees, by legal of BXB $X.X million combined a in quarter was including of up our loss $X.X and and fourth in of loss in results. common the $X.X operating quarter or the XX% quarter attributable fourth restructuring expense For XX% Niagen, million XXXX the of sales. million expense. million G&A year-over-year lower versus was other net Tru with Moving growth $X.X loss net year-over-year was fourth comparable XX:XX per third expense, in quarter or as stockholders $X.XX for fourth of XXXX. share The third XXXX, a financial the for Excluding to XXXX third per million quarter net quarter loss $X.XX

of increased customer, sales compared quarter Gross primarily basis to which XX to fourth XXXX. to a points net XX:XX fourth were XX% earlier. XXX represented $X.X XX.X% margin quarter million, Our year-over-year reported, basis Niagen sales increased XXXX. quarter in XX% drivers a to XX:XX by the As of lower in approximately points and of sequential ingredient, of year-over-year the similar were sales expense key of loss drivers as expense marketing administrative percentage XXXX. up Selling despite million. $XXX,XXX of to this due discussed to by legal and net in the increase was XX.X% general of the fourth spend XX,X% of I $X.X lower The compared the

improved operating as our million marketing. cash sales XX:XX balance and gross partly higher $X.X the Moving were year-over-year and organization sheet flow. Finally, margins loss and offset by cost in savings selling the across investments and to by

the and prior key customer uncertain R&D XXXX outlook, by the leader credit. year Our growth invest we growth the negative was in year details balance and the the Recognizing with the operations we expect XX:XX of to XXXX. was access along cash around in offset of well $X.X due full these decrease growing as BXB sheet the a an negative a year net million quarter provided driven position with due inventory, to As million cash increase our marketing, remains receivable million XX% sales, our use timing objectives. a balancing plus strong. loss, lower it we from As this we in did full by sales payments and long-term on the brand in our third committed timing acquisition backdrop, to in maintain release XX% of we're earnings to ended to in macroeconomic net quarter it partially profitability quarter vendors, changes The of relates expect of accounts primarily near-term customers. to our to our to with net as XXXX, year-over-year. press as investments metrics not our with fourth outlook, used in collections $X.X of awareness, the the We accounts quarter in relates our line presentation. NAD difference in $XX.X cash, market. versus In slide P&L Consistent payable XX:XX our in XXXX

Health contribution see more to In we of could including partners, as in result terms continued Designs meaningful and our Watsons continue We as growth in in from of for a and tailwinds, for with we're expect revenue several e-commerce these and in sales partners new of XXXX. COVID-XX COVID-XX them early challenging aggregate environment. BXB XXXX from and a headwinds is well more steady Monte consistent and challenging navigate XX:XX Singapore working Hong New Australia with partners closely Cana The Zealand. to but Kong the timing growth as in

than similar excludes only partnerships outlook Our includes of margins upsides We're potential pipeline. from existing new from targeting the last slightly in partnerships gross revenue and any better XX%, to year.

We We full continue basis, inflationary of expect driven there tests. the XX:XX although sales be percentage that the supply to pressure net selling may cost year as volatility global campaigns on offset marketing expect timing scale a quarterly experiencing a will and our to will supply slightly chain. initiatives savings currently chain and and we're of by across expense be down

to NAD patent in We our will we among as new expect approximately R&D be million others. precursor invest related that $X up recently development granted

of enough balancing very profitability the how to we'll I'm market and company objectives. to cash continues growth $X proud revenue driven with legal million, to In support count and objectives by partially growth. expense, of pragmatically. fund in reported expect investments to and XX:XX million continue down have by we offset the that long-term a reduction the significant functional growth the and in be And Finally, technology $X key opportunity will head areas G&A company, we to near-term information summary, invest execute

said, to take phase Niagen's questions. Tru potential. us has ready point of inflection at Rob with As true XX:XX realizing behind and Operator, we're litigation the we're next an I'm for excited now

Operator

of first Your Instructions] XX:XX [Operator Ladenburg question Thalmann. from comes Jeffrey line Cohen the with

is line open. Your

Jeffrey Cohen

Rob, Hi, you? XX:XX How and Kevin. are Andrew,

Andrew Shao

Hey, Jeff. XX:XX

Rob Fried

XX:XX Good, Jeff.

Kevin Farr

Hello. XX:XX

Jeffrey Cohen

could CERP my NR? into you the Andrew, marketing for you if XX:XX outcomes being Andrew. for I and for claims talk question So on and about that the initially I how work on guess slip programs. the markets walkthrough could is now thank that's wonder done

Andrew Shao

you Hi, for your XX:XX question. Thank Jeff.

of body look claims we way that's the the substantiating total evidence is at So, take available. to

other So come look that of that studies on studies studies carry the inform in evidence most and claims. do that weight are we main through and claims. that CERP look to the source the would We obviously we whole identified to to CERP, clinical effort, that as part body literature. of studies make clinical as Obviously, those of include, the at studies support decisions

permitted studies those that, to make to that. use of how those -- supplement. As the normal you body affecting a don't do related great and and forth, know, the into studies number we're organs claims. affects different NAD course to function, give a studies patients of selling function and how outcomes, allowed normally, directly disease dietary normally systems. different of not do how But so disease us course of is involve not those Niagen We're We insights disease

those to kind we claims. That's answer study. support look a if a So, at sure very I'm question. specific not it using holistically and about of general you a to really to in your studies try had generate question

Jeffrey Cohen

impacting QX couple, legal actually my if follow-up, you much. XX:XX anticipate and number? do be margins if measuring if expense if a margin as freight, for outbound your 'XX, what us perfect, you remind you could and that No, that's talk just you're And that, or legal margins to do you. and Kevin, the Thank as or Andrew. that's with very also about include from not then Thank do going

Kevin Farr

We saw expense doing the were as think quarter, into drop. fourth legal judgment. Yeah, pre-motion went the I judgments XX:XX we before we

XXXX So, regard majority But we to of continue the legal that with expense. in to have spending some us. legal expect litigation behind is we did

less more of internal expect patents, in quarterly. XXXX. We divided and probably baseline that be four, by or legal $X will That's that's continue and million expense which headcount primarily around to consists corporate general

In the appeal, including Delaware should litigation expense, expense, York IPR addition ongoing rejuvenation each case, to litigation New less the baseline cost Thorne $X and than million.

have year. late balance to also decline supply the -- we inflationary and supply the above regard overall scale XXXX the to quarter or mix magnitude predict. of are in expense parts Thorne in will timing we be We're continued appeal gross in considering Health. where partially However, we expense and freight favorable component in fully filed of XXXX, expect in initiatives And was initiatives, continue interest do York XX%. won't think regard the Court settlement have inflationary buy chain. we'll motion expense was agreed to in pre-judgment is due $X.X that the include is of persistently cost inflation XX:XX maintain others, publicly of the year. that until driven the California, on IPR. offset to And slightly so did We and margins, pressures to margin pursuing look glass high. see expense chain but factoring filed parts of the Litigation details and we some Again, by expense New business aggressively remains bottles Delaware been recently with ongoing in the these for to million of increases can forced cost projection after are across savings gross with strong mainly with to to we highest the Elysium and more our litigation of the others, component and by gross related It litigation, the we price global and of District that court. also leveraging the The should some litigation early, what inflation motions XXXX if We I of outstanding difficult budgets, a see in first margin. our like we for this optimize

Jeffrey Cohen

our for taking questions. Thanks XX:XX Super.

Kevin Farr

welcome. XX:XX You're

Operator

from question & Your Sturdivant Pinheiro line Co. Mitch XX:XX comes the next with of

Your line open. is

Mitchell Pinheiro

guess at guidance, your for. below what is while I'm my Hey, XX% it XXXX is looking good question I sales to Yeah. I'm is, looking XX% first afternoon. nice, XX:XX

imagine then the, global here, I sort it to as are in you or here the of that able much just America the mid-XX% XXXX? little growth, understand have sort fall be in to in initial talk think everything sort outlook else a but that -- just Can you And stronger I States -- seems does. you consensus. some bit? being expect United of whether in where it's it a support about headwinds, is like e-commerce shouldn't and the do I your -- United States, just look of North and conservative

Kevin Farr

Rob, free me, start let let me Yeah, feel add in. and to XX:XX

And XXXX quarter countries. so we're tone then, macroeconomic in significantly COVID-XX changed certain increased of in impacting iOS funnel has I since environment are think due and headwinds investments the instability industry headwinds I including Apple conversion. fourth of XXXX. the regard think geopolitical there bottom are And also, changes to not gearing in you accelerated are deaf, know, as we in in early to up with TV the

XXXX. you more we're versus anything that, add in such, headwinds, taking to approach campaign growth other our As to initiatives into Rob? leaning these in early and Would investments to like TV measured a

Rob Fried

changes change, that big Kevin, to think, The That's that of one I with iOS Yeah, of late. e-commerce. been algorithm have reality, XX:XX regard it. covers a lot there is the

So, seeing the what influencer is board in digital in social, Search, customer marketing, costs you're across and acquisition in in campaigns. higher

we're At acquisition, to of television. new time, we though advertise same months, and last seeing on we're the lots it's even more So expensive. growth few customer gotten starting seeing more are

the consumer, the the increased Sharpe of fourth there we've appeal in we that's a our targets But really think for I shortly. sort television is market broader launched Walmart we be which what and offer. quarter and now more -- ad, huge is expecting market we're is ad new the think out that a know advertising we really to So, we that more -- still the going with ad, shot Shannon

there expensive shift. until grow. -- We continue be is a to coming in might costs costs more to expect slightly We the marketing think months

Tru that Niagen take word about why shows that doesn't mouth. valuable one make XX:XX as it others. have we because leave, approach if keep reason -- likes taking buy try and has Tru So of retention Amazon yes, a people XX:XX a And they to Tru They have study people disease The and and for The actually look direct they What and as it very a and any disease solutions, measured, friend asked, buying a excellent And Niagen highest a our of is that the it is we we into we it's they continue on benefit Jeff that we retention who see state. channels sell. studies kind can it we they dietary are know a it see. in the other seeing for period these they of really to that from support the answers expect not look supplement conservative that year. to we But heard hope looking a see solid. our is that people the we like the and the website for and our investments have we And we yes, as have cost approach This research think see, that how are environment, to still think marketing looking that hope talk take Parkinson's know and inflation, because claim, and extremely advertising, a Tru we we're is Kevin it's us read make, cost, We who increased growth. is claim study why to retention. it. for say, time The and of I Niagen. could still taking eventually -- they of because pragmatic so Parkinson's we're to macroeconomic to numbers a us. that at can't be who conservative. increase like it's see Parkinson's of Niagen is increased measured about we very we take know the it indicated that it continue to taking on well. number media,

Tru it's still healthcare just that experts. and anticipate Designs the expectation. why takes part to it be where a from when a Health with reason hit impossible And communicate growth actually So the that We expect tipping good explosive our It's going way, growth. goes deal of to to to by we point Niagen the for happen. solid did that's so on is this is the going practitioners

Mitchell Pinheiro

My you question are ad, hopefully go that are I you the -- it be obviously, the awareness, little not I stronger TV think with be one satisfactory to are been seems couple operate where campaign by returns there'd science is mean that mean is of you is has to certainly, you consumer stronger your I XX:XXYeah. a have would just or in mean and a you Like can with mean, happy that behind -- getting of -- that? and TV to in, be response this Sharpe's a address type -- different a the than tough that. just momentum far Shannon ad but that the awareness. like research, behind would years, And I the baseline, momentum to direction.

Rob Fried

us No, those past, And the in ads quite XX:XX well. actually quite has the we've and department played has ads the that played marketing told used well. -- they those

use a with agree also We campaign still and this other we we're But we fitness Sharpe intend So, market we just specific related I now you. is audience. based to a targeting go use wider than Shannon broader male a more could the much ad. a that territories. expect to continue just sports cohort. What It's new is cohort that, Shannon to in than it's think group. sort sports thinking of broader much and

Niagen be age-related that whole of a of was we're the showing Andrew that disorders. host clinical amazing. now think works published issues peer-reviewed science I saying, spate I a to continues mean, as studies seeing and on

is yet and is have we So, can't that the make problem claim. still you awareness not a The great.

So, about very was your question the be comes right you promote have but dot. Science on out, to you it. how careful

So, it hits that we we're it, we're we're very very -- in one it at and be way until careful, measured, take step have to we point. a time just the tipping very we promote conservative

Kevin Farr

holistic We've for message engaging which Tru XXXX. also communication building requires developed, roadmap but initiatives, brand broadly, the more that they the these it's plan program an Tru product a includes TV a Niagen of ambassador just to various that including and Mitch, our a than incentivizes Yeah, doing that spot. TV to XX campaign, most of and tested expanded brand XX:XX second implementing stages simplified in we're portfolio loyalty think consumer together but more recommend benefits new Tru and Rob or customers that and articulate to Niagen, the are TV a I bringing referred needs, spot, education, caters different to consumer portfolio. our in We're

exiting see this growth place. expect all is to when XXXX accelerated in We of

Mitchell Pinheiro

upside look you What see you were If that sales are? to the you're would forecast? to they -- key current do current the what to have better have are going than forecast, XX:XX for looking your couple think do of you why things

Rob Fried

doing for from a it, it XX% things that. multiples And growth to isn't cost XX%, happen, that necessarily buying do way There large could go it it, the to make could it. paying XX:XX most one, a number is are the but of that efficient campaign of

make as partners. with you number we a deals know, of -- are We

expand dinner one like very we infant could We Nestle, with have to table. have other those any could to it's talked there and publicity activity difficult pet have could more partnered nutrition, yield. be and -- Ro, of well-known viral product an every we Sino, H&H, understand from when about we like nutrition, at and have We goes into that, a we categories deals could make deals

to feel can't You we off. and word we're very when takes But pretty catches of that. mouth difficult force that. just close it that to It's know

saying the the know right right influencers just at the right saying the people works. the right the people time to product we thing it's and right -- So,

was there was There it's sales can't experience good video taking his to a exploded ago. you happen years are that to that's Tru claims. to but in in you be make personal posted who Kong, when on happen Hong So, about but That's were trying We very few careful -- then XX:XX have very -- Niagen. Hong Hong Kong. very because for an here, make in that waiting influencer really happened what independently sales Kong a

I just may could then that's work. about itself. that create campaign to Kevin explosive TV of course be we're So going and growth. very And well that the as happen, could it, said, but measured mean, it thing careful another

a have XX at department it. a lot going only marketing do very of producing they're research, and team. it it high to succeed. they put will but taking spots a spot and spot. We But how new An the the thoughtful, company they're energy XX for or hopes have careful, one still added of step a they're at there. time, conservative lot that that It's -- spot, excellent They expectations months, will the for very very been it tested they've be the only it's succeed. of But have not we other into creating the we script behind expect they're time we're

Mitchell Pinheiro

my... And last XX:XX just question,

Kevin Farr

XX:XX Sorry, was add just to going I to that.

Mitchell Pinheiro

Go sorry. I'm XX:XX ahead.

Kevin Farr

places XX:XX COVID No, impacting again, like seeing, look, Hong New we're Kong. I'm to indicate our businesses consumer in just going Zealand takeaway Australia, that, and and in

consistent end that So that amount to basically the down higher the for of if dies of too that -- could time, range. hit help us

Mitchell Pinheiro

appreciate XX:XX other trying there, talk Okay. you and if what's what's Nestle to Thank about Nestle. talked then quarter I plans it. last, you happening I'd looking know No it's happening Got just but you. you. where sales conversations? about could And this at at is are

Rob Fried

has XX:XX Nestle, few companies over space. been in many acquiring Well the years you as the know, last

brand e-commerce with very, done very in this impressed well and trusted extremely company with last they're build announced with they recognizable the in supplement it further. three addition one the They bought last effort food to is to I the it's in is. $X for what another the a relationship we've become where Bountiful called. excited largest And ago. Tru another how forgot largest last it know month riboside to years they've the But they and develop company bought nicotinamide unique fact, in And world company. being month, year billion, here an they're California dietary In they to what brand, the creating highly Niagen basically

there. division, divisions. these have infant know, divisions have an have then even pet many division, you they As supplement all division They they have a they pharmaceutical they nutrition nutrition a have and we dietary

continuing this for be initial know we a will was create and to But optimizes our done and So, brand the interests. expect as we to them ChromaDex interest and they to quite finding brand, they but the bit that the with of that has Nestle Tru way expand It's in a that impression committed continue Celltrient. shareholders' We the ways in deal relationship. Celltrient, expand, have are invest it to they yet money to relationship still it. but and towards under to are Niagen in hope has take in that a off

see we may we So, be the exploring are year, that certainly something but it. that -- we during

Mitchell Pinheiro

XX:XX All right. Thank you so much.

Rob Fried

Thanks, XX:XX Mitch.

Operator

question line next comes B. Jeff Sinderen Your the Van of XX:XX Riley. from with

is Your line open.

Jeff Van Sinderen

Hi, everyone. XX:XX

contribution ROAs driving it -- targeted too any a then and the at you around the Walmart wondering on yet? follow-up Just could to maybe demographic. early then update but I just it us tested programs international? speak multipart kind of kind newer just including that, question, an I had status, of campaigns of for anticipated just or it And Thanks. Just broader have has Is some kind on year Walmart H&H of the give from you more can on on Is like a about been this sales. ramping? guess guess, ad example,

Rob Fried

you it? XX:XX want So do -- me to

Kevin Farr

ahead. take Go if one XX:XX I'll want. Walmart you the

Rob Fried

Okay. XX:XX

let get it way back to in other Australia, hopefully a and similar here New the world. all seen and booked, we've stores. of been the cases has So severe X Hong in and because yeah, COVID now international are have in and Europe And lockdown has Zealand International is it tough They start and in they now, right very will and Kong hospitals have things a people their traffic in of will and population a die hopefully, million of the in foot XX,XXX not the me parts And with then great formal very, now. problem piece. right that of down lockdown is kind normal.

when not international have the grown, will, sales So, would, they but dies down. as as and much COVID

campaign, early. of as it's for In no, the too terms ROs

We up of a and marketing taken algorithm the of on more iOS the on a much for to haven't It's The spot last spot television. that's shot. even lot place. ROs new difficult launched mostly marketing. marketing testing in difficult ROs, measure has XX:XX this that that It's on digital because months department easier just that specific digital the also have six but gone we've to due the done, changes

is I these in But the towards ROs important environment to marketplace. begin media -- media has very, us, very good given macroeconomic marketing what's shifting digital timing it think pretty traditional to the days. considering happening especially actually -- our

that are describe increasing our growth, to as and not marketing also to our we our approach Do why marketing approach dollars. just Walmart? attention, efficiency, a but is on measured, you want So, take we pragmatic spending on

Kevin Farr

expect really take not think I'll in remarks in based think my Health, that revenue and we aggregate And they We about campaign. NAD+ XXXX overall, Designs for in campaign partners then Walmart. and us want from pipeline. Yeah, provide Walmart to over national more we for highlight this are TV them. meaningful to included But XX:XX partners. it we as our continues And with in again, respect any time. and are on with And new and XXXX. We slowly, for mentioned we as scale remarks, to upon partners enthusiastic business Walmart, accelerate building Tru will growth just our but I shared it expectations launch aligned with retail building I are I campaign I've is prepared to XXXX, launching potential they that sell-through don't build in expectation new our the we new have our remain revenues the television the Walmart just are the in Niagen together and committed my categories the

Jeff Van Sinderen

to this then, Niagen I XX:XX product planning think Thanks a you that you're that. launch hear. Okay. Good new And for year. Tru to mentioned

where to launch target might where it, or it, more is you kind can thing? if market support timing, the wondering, what Just you speak -- advertising of planned about that launch there, targeted that at,

Rob Fried

let first been for the last few years, single just we company So Tru basically have Niagen. -- XX:XX product me a

Niagen, that have to haven't they and have Niagen is product released Niagen it, expect but we planning we be and formulations created a course whom H&H supplied yet shortly. it with Nestle. extension, We they have to life partners and of formulation includes

we product center released at looks specifically single first Niagen. riboside. and little we But NAD, We be December, as should And company a expected are the that nicotinamide they're are we ingredient like sold it formulation anyone in and leading of in delayed. NAD pure product. in, all them it this just this a will Remember, it to includes interested our interested the phenomenon or be we've for which have

could that and Niagen, includes a its making through So, highest are and We are it to be is our product release exists is product. very also very important that people the are XX% of We that exceptionally on that we meticulous educated that year, customers adds other people this ingredients planet. that the group are of XX:XX our we it think intend a know smart the they have research to who that absolutely special grade presently but the to customers process of graduate degrees. gone well-educated. very, close the highly we've think very This sure and sophisticated

product another good it make ChromaDex, If as you're it trust we going be. buy another you product to that can as can from take will --

other it indication it goes. to released carefully So, targets launch, benefit and that there space we'll see and take then how It few what people, there well a a next will it product to few provide to that months. a e-commerce formulation that to extremely the ingredients be it, dietary primarily planning includes and formulated be in it there will in we and release Niagen supplement the behind from very will marketing specific be be launch, a are expect specific online I -- is a are an soft sourced

interest it that one many there but our step a product partners, at course, on from is time. Of we're of taking

Jeff Van Sinderen

of you around on what to manufacturing? runs then ChromaDex said can competitors? patent you the hit just patent you can just guess, does clarify -- if litigation, XX:XX I think Good that XXXX. to the touch really hear. Okay. just new mean I kind maybe the for and for And through around

Rob Fried

triacetate exchange issued relationship process then were NRTA deep ChromaDex a new patent pending. very on NRT you who manufacturing no nicotinamide is require not a in The in a second important manufacturing NRT nicotinamide be very course, a triacetate GRACE, to riboside an patented that developed, get riboside. of two because nicotinamide are portfolio a of does patent, have riboside these the actually there's patent the for patent of ChromaDex we to know GRACE for NRTA and intermediate as as very, there step So also this and combination to And Dartmouth patents ChromaDex excited But that we with has this we addition, know, XX:XX patent but process -- very exclusive has patent. relationship. manufacturing exclusive

order in to of So, manufacturing NR, are to start involve And NRT. get to and patents you've process got NRT. NRT the these that

that's patent good feel nicotinamide the we very, and been to the riboside. about existing of one that's patent addition pending So, portfolio this hopefully very of our strong issued,

Jeff Van Sinderen

XX:XX Okay.

to patent So, and this Rob, your it mouth, to it is put to others will fair say manufacture it I words to the but want patent that in Tru this is and say, fair is manufacturing Niagen? don't pending that make new around difficult process really for

Rob Fried

not know difficult, of it anybody on that be presently. whether comment infringing XX:XX we but it's or safe it that we will not that to I on could say think is

Jeff Van Sinderen

my XX:XX for Okay. Fair all you enough. Thank taking questions.

Rob Fried

Sure. XX:XX

Operator

XX:XX comes with Oppenheimer. the line question from of Your Nagel next Brian

open. is line Your

Brian Nagel

taking XX:XX question. afternoon. my Good Thanks Hi. for

Kevin Farr

Hey, Brian. XX:XX

Brian Nagel

My the 'XX of with are couple follow at the of the up prior questions, XX:XX to a respect then questions just guidance. a least initial to topic marketing, sales

are been merge with So, you in degree Walmart. that's but TV is contemplated for is to that When the And one what ad kind work your Shannon to I've and talked the them to is, side-by-side in expecting ads that as to someone guess I has lot together, the with to and -- done any I bringing forthcoming guidance with mean Sharpe there partnership going long launch? then that company, thought was XX%? as ambassador about been Sharpe? that in, Sharpe, we And talked you Shannon is of Is about TV Shannon a spokesperson. associated key XX% I new second,

Rob Fried

other we've I both think and we I'll about There can is had discussions with -- second start. to So discussion celebrities. is yes. The the question XX:XX answer

with are there. out you know, there call Lochte, and we as Burke Shannon Gabby Tru other, Brooke believers to course, Ryan in also and we Of what work Sharpe, addition Reece, a there big and within Oprah have like, is Tom -- think been I going what worked we've past. after mean Brady others name, or that have the a But you Winfrey.

Brian Nagel

yeah. That's what XX:XX exactly mean, I

Rob Fried

have along answer The Something XX:XX lines. we have we meetings, yes, had had those discussions. is

can that to is it's product, people taken we these with, it consistent is, with is second is they pricey. pay of have. a but Some also have the They've want endorsement, anybody but just are significant expensive believer. you spots we're not the fee, that things, very media. And and them be thing actually sure then -- a couple TV endorsement, buying of we they're credible to we Tru the make that a one brand not one it's their support we which think thing -- to And their that and with another go

Goop on are Tru the it Tru Paltrow's down seal for we There So, is know to Goop yet consider only. insignificant the do the first but do She take with to not we what of XX:XX not be a Niagen community answer Tru is and and the we an yes, while, there. to did approval. on taking to it. has measured is in work the next right community and of But what careful it She that additional commitment to landed the have Gwyneth it Brooke endorsed Hollywood sports is of we go Niagen are Niagen spokesperson sort not that truly and a and deal many and recently. Shannon to take your that that. level. hooked been only is the and to question be But Goop we the now brand. about product And quite need was Goop we with

Brian Nagel

XX:XX Got it.

Rob Fried

Okay. XX:XX

the with ad Not other shot. The -- campaign with Walmart. question we was had new to do Walmart, that in targeting but conjunction

Brian Nagel

Okay. XX:XX

Rob Fried

he's experience you new, creating of year, has of worked the the here, a of at that less as These and types know, in XX:XX Marketing past. been types We than great a -- are Head campaigns. deal the the has of on products ChromaDex these

and consumer purchases towards So, because know. at type our that created has he convert until measure the launch of with he that the of it in that Walmart, but been past and conservative is into in it, will don't sales we just he Walmart, is worked we he believes at projections targeted has that it campaign have ad the launching the how we

Operator

last with Capital XX:XX Sean comes Your line question the McGowan from ROTH of Partners.

open. is line Your

Sean McGowan

Good XX:XX back. to be Thanks. Hi, guys.

Rob Fried

XX:XX Hey, Sean.

Sean McGowan

standards questions. that's segments you of XX:XX guidance consumer, out across XX%, give kind play I've how XX% on any your On couple to ingredients and got color three and a services? going can of to us to

Kevin Farr

the going it's the e-commerce business. we've the think going in in aggregate, our come to to think And which Niagen across are said engine, I I partners which from is be partners, to -- XX:XX our growth come is it's going category. what is

So that's going Niagen growth. and between going be that to be to that Tru it's -- Niagen drives

Sean McGowan

ingredients? XX:XX So you would and consumer in expect both growth

Kevin Farr

XX:XX Yes.

Sean McGowan

XX:XX Okay. Great.

from are could contribute be including of about more guidance those or in your of -- that amount -- does partnerships the meaningful on that not not a partnerships that you currently the part XXXX are talk -- in there in kind Second, everything contribution numbers is future? contemplating there we a an that not contribution handicap guidance? the in talking are if -- what you can about Could any when from that small kick and pipeline,

Kevin Farr

regard that we in if marketplace. go it the back to I think it while for to Ro our be I I additive. with think think get H&H, with regard think takes the to to I And that, XX:XX them XXXX will product experience and a to

it this quarter I fourth near item. to term is to more year of second of got one we've market, they've think Sinopharm. a -- more half is bring and or that's But probably the got the again,

orders But from how think I additive. is be big, So, of be yet be determined. -- it magnitude, to will would it

Sean McGowan

up sequentially? XX% XX:XX Kevin, the other when you two And did it increase ingredient you. was say were you Thank sales quickies. then about Okay. talking

Kevin Farr

XX:XX Yes.

Sean McGowan

XX:XX Yeah.

Okay.

then be So, finally, the XX-K when filed? I will thought --and heard

Kevin Farr

XX:XX is of the will be XX-K between earnings on month, the it and due XXth. so XXth

Sean McGowan

good. XX:XX Okay. much. Very Thank you very

Rob Fried

-- we're and We've to and you say to you working honored that I worked Sean you just for Sean, with years have cover and very privileged with to welcome just and left, before ROTH. Sean, many you decided XX:XX But we're wanted wanted us, forward here. looking I -- known and

Sean McGowan

appreciate I you. Thank XX:XX that, Rob.

Kevin Farr

XX:XX And I wanted to...

Sean McGowan

be as XX:XX this on Good to side well.

Kevin Farr

to by we wanted grew clarify grew. Quarter-over-quarter, sequentially That, I it XX%. the And XX:XX XX%.

Sean McGowan

Yeah. XX:XX

Got Thank you. Okay. it.

Operator

all questions. I time remarks. turn that's Brianna we for the had to closing for And call will back XX:XX the Gerber

Brianna Gerber

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

Operator

conference concludes today's This call. XX:XX

now may disconnect. You

ChromaDex (CDXC) 10 Mar 222021 Q4 Earnings call transcript