CDXC - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to ChromaDex Corporation's First Quarter of 2024 Earnings Conference Call. My name is Jericho, and I will be the conference operator today. [Operator Instructions]. 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 first quarter of 2024.

reviewed section both www.chromadex.com. of not the available have Relations Investor ChromaDex's you this are information, within If website at would Vice turn [ to now call . I to over the Ben of President conference ] Lytham Partners. Samson like ahead, go Please Mr. Samson.

Unknown Attendee

Dr. welcome and Senior and us of the Financial related With for prospects ChromaDex Corporation's results are results, in Officer, cash Shao, clinical development Fried; Vice interest of expansion Chief trial sale ChromaDex's financial Scientific to Chief Andrew of Brianna afternoon, and new XXXX and and Good investor statements opportunities, First business Affairs, timing results call join future as Investor of and development as such Results operations. timing research opportunities including President will ChromaDex's you. of plans the Regulatory Today's to trials, markets, Q&A. and Thank filings, Rob may Gerber, of business Call. today of forward-looking needs, Quarter who TRU include Executive statements Officer, and call anticipated the NIAGEN performance, well the the and operating regulatory future conference

only represent this call give estimates are subject met to are yet these on the the not occurred, conference future to to to date statements any inherently forward-looking not of intended the as uncertainties. relate statements company's and assurances risks actual statements Because Forward-looking results. that and have

including conditions operations, filed Form or cause in as recently global cash factors results contained results from well activities include condition, economic differ with most on risk on and the of ChromaDex's in XX-Q quarterly activities could These financial our anticipated businesses. actual report ChromaDex's Many market flows statements. factors and to results as the forward-looking SEC, materially those

with to or expectations. obligation statements to changes that call conform its the to this any no forward-looking note the company statements, after forward-looking actual date assumes of update conference Please results

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

is at The webcast the website via Finally, will www.chromadex.com. this our Investor recorded be at section Relations of conference call available webcast. being

now Officer, my our Fried. call With the over that, to to Chief pleasure turn Rob it's Executive

Robert Fried

adjusted Ben, you, unwavering is while and support of Thank a thank for R&D announce that I'm fourth consecutive positive afternoon, commitment delivered in to today's which and reflects us investor $X.X revenue you good EBITDA solid year. generated maintaining quarter delivering This our fiscal to on we XXXX, this everyone, start launching and proud joining adjusted later million positive to million. investments in EBITDA, we $XX.X the discipline innovations to have which strategic making call.

the million and positive quarter, In ended the net flow in cash we first no quarter and operating with $XX.X debt. cash generated first

continues as to Our and revenue. campaigns on source the reliable e-commerce as for own our to year-over-year the implement team focus continues business to and first engine the that of most efficient initiatives returns business. were direct E-commerce be X% quarter our for and to drive growth in our marketing up continues largest website build strategies sales

a first quarter XXXX, continued the to of which growth the growth a In in stabilization see foundation business XXXX, our of providing in the large brand takeover, in our absent a continued XXXX. campaign of signs Amazon. in significant website and in we such on Amazon's In Amazon for business, invested had campaign, purchases we homepage quarter first new-to-brand drove through increase

subscribers a on to base In promotions value. of robust initiatives to customer the our to long-term first price team focused quarter, less drive committed focus on build be and

going forward. early this is While the we behavior, assess consumer too strategy still believe to right it is

content Also marketing. For XXXX, and which importance optimize our media presence, social we're also retention allocating are strategy. to strategies, influencer more of resources

Farmers that major retail Sprouts specialty announced partnering Market we Sprouts be distributors, the Vitamin X we locations over month, Shoppe. with and available TRU Market of in chain available Last TRU XXX NIAGEN are first of NIAGEN major grocery carry will shop IMMUNE. also locations. will XXX retail TRU to the NIAGEN and the on TRU over vitamin as Farmers be shelves NIAGEN

many Our aligns the health possible base. new people TRU and with Vitamin help a Shoppe diversifies our consumer of to larger partnerships vision with It wellness-focused broadens Sprouts and and access to NIAGEN way expand a to as spend. share passion to continue solutions I'm at to age. consumers health proud ChromaDex they bringing who that wish the to partners, network the all promote transform our will teams of as

a are peer-reviewed published we industry external program, XX studies, always for XXX over the standard over in NIAGEN we last gold our believe and key body. that NAD human number call been been completed ChromaDex trials with be preclinical research clinical on have to to can human benefits continues scientific the highlight. We health and numerous I establishing which update, published SEP It's our to studies studies of of want explore the have quarterly have

designed a NR between ischemia. utilized of liposome-encapsulated study cerebral of through assess organ clinical therapy. The First, healthy stroke agents injections its The in chloride liposomes IV NR NR was effectiveness application and impact in treating models. examines study demonstrated to and neuroprotective and mice for the for standard MICE beyond preclinical recent results mice model pharmacokinetics, given the cerebral distribution potential of liposome-based broader for ischemia delivery therapeutic

of highlighted healing. with having study ulcers NR resveratrol diabetic the and Second of by a resveratrol, of caused healing impact the the potential accelerating model, inflammation in diabetic of wound combination NR the preclinical in rat results

the a mass of investigated causes particularly model. and congenital of miscarriages NAD malformations preclinical role deficiency study the using Another

NAD deficiency elevated found a is embryonic is that normal risk development. The pregnancy. NAD researchers ensure of that suggest to Interestingly, required the results during supply sufficient

the NR provide. many potential trials Of course, to preclinical can some are boundless illustrate just human health just observations. these the that few I benefits further study validate needed are But studies in positive results highlighted of NIAGEN

does has of precursors know NAD that space the ChromaDex. another therapeutic company an I or supplement in of pipeline value may innovation do as prophylactic that such profound have pharmaceutical dietary not

to further continue our for healthy our to ways, in further to and develop invest of the aging. innovative and longevity NIAGEN science benefit potential NIAGEN can understanding We

As portfolio some into products launch to know, of skin may of Jovenes in launched plans looking partner, has the by care States. Korea United you is a NIAGEN powered our South and in

supplement continue we with pet Additionally, to further products the to work innovative research Zestipas in market.

to vertical in illustrate the mentioned announcing are quarter, increasingly last unique will NIAGEN close position new ChromaDex's for As that a we industry.

the safety with and and proud long, supply I infrastructure. chain and regulatory While establishment process efficacy, studies am I of of for thorough at teams proper bodies the on compliance in acknowledge been ChromaDex has the being development our diligent

many improve to global As the authority our NAD mission lives at ChromaDex possible. as signage, in is as

includes Our way that dietary to drive This to humans vision age. pipeline benefit commitment products supplements. that this our extend to delivery innovation mechanisms NAD beyond the unwavering develop continues new and products boosting

represent standard industry. As earlier, the every ChromaDex I NAD mentioned X the at we gold of in us believes

more to takes world-class research innovation. originally trusted will anticipated. and and than our integrity the continue development support represent and innovation partner some industry to We as scientific partners regulatory level the of authorities take drive recognize time a researchers, highest business that We It use to may to time. in position

more not our While make yet details next on to We to any we are sharing ready update. forward announcements. look

quarter's in Q&A the over detail on then closing like call to Brianna results to discuss now would to turn more I remarks. and and And Brianna? the to

Brianna Gerber

Thank our today. us It's pleasure to team Rob. and a speak who you, to members partners investors, have joined

$X.X delivered performance, highlights to the a loss our key it gross ChromaDex . reduction million operating solid million, net $XX.X quarter XX.X%, overall million. of As a expenses total of of first $X.X in sales of relates net and margins

again and positive non-GAAP operating Additionally, cash EBITDA, flows. we yet achieved million adjusted generated we positive $X.X of a metric,

strong Our across has performance our organization, enabled investments us the growth. financial increase this which quarter demonstrates in to management

this new planned quarter ramped Specifically, year. for support half the and to anticipated, as initiatives strategic we this and launches R&D of second investments

turn that, With first let's financials in quarter the detail. more to

in of by Watsons in million, sales, reduction and to decline As sales. primarily decrease e-commerce a of timing $XX.X NIAGEN, a quarter due combined This first was other were was driven a BXB the of XXXX I growth to sales net in TRU by largely X% XX% said, X% XXXX. quarter overshadowed those X% first a compared in the total

while social invested sales during current boost on awareness developing an later quick NIAGEN will especially did of of a mid-March previous Instead, a in event not helped as the and created that we brand-building media period. undertake comparison efficiency marketing more event reminder, brand-building event a with expect in a this year. influencer remain similar which we we This in we the year, quarter. As beginning broaden strategy TRU that focused homepage takeover, Amazon year-over-year challenging the

sales. Now touch I'll other BXB on and Watsons briefly

highest and the NIAGEN driven year, vary, can sales quarter of Watson's timing steady. Immune Watsons business sales growth volume noting partnerships, last to the year with the the TRU XXXX being launch. it's all by base full the first for of shipping that launch year, was with As basis, a last and On worth of saw immune including

sales in margins moderate total XX.X% decline by of while Gross flat in of mix. of ingredients. compared ingredient increased shift addition, offset year-over-year, In in in which to by ingredient first XX.X% the primarily other $X.X NIAGEN business XXXX, equal sales quarter XX points were a an growth driven basis by had we million sales, to was our

up XX% marketing from our improving sales Sinan sales in to net to of constituted Specifically, and XX.X% as quarter, XX% basis of quarter e-commerce first decreased the prior percentage total in XXXX. points compared expense XX.X% quarter. current the in a the of net year sales XXX

in the a do a not As in event large overall efficiency. year, last year, discussed building this drove brand which invested we similar earlier, have campaign improvement and

our we and research new XXXX, NAD year-over-year million anticipated development in new increased to precursor expenses vertical development. invest $X.X commercialize with along as As

and administrative expenses, debt decreased compensation general primarily $X.X year-over-year, and restructuring count reported, reductions administrative As and severance and other due expense. head expense expense in million share-based expense executive to bad

was million first an of driven by operating quarter million our loss the XXXX, improvement expenses. versus $X.X lower of of loss quarter a in total For million $X.X first $X the XXXX, operating

for was share quarter XXXX of quarter or attributable loss to loss the a net loss in million $X.X of $X.XX and of net of first stockholders $X.XX loss to per The $X.X common of share a XXXX. per a first compared million the

the and to flow. cash Moving sheet balance

no the debt. Our balance in and cash million with We strong. ended sheet remains $XX.X quarter

provided $X.X by driven months in changes XXXX. cash last cash the the and was ended largely payable smaller reductions and Net of period other inflow in inventory greater $X.X reductions capital million respectively. $X.X $X.X to million and a working prepaid of For compared relatively March assets $X.X million year-over-year The related million, in and operations was year. to difference same expenses X million accounts in by XX,

loss costs. a I that a impact while it not the if Delaware motion financials comment nothing recent briefly in the owed. District based our Court to on determination not on attorney does be ChromaDex judge yet ruling fees this March, quarter and is decision appeal probable. will -- Finally, and for to granted In successful, intends first our the Lithium's litigation. wanted

of XX-Q liability maximum However, in estimate we the disclosed our an report.

year presentation. key As to our information earnings it in metrics found be and relates our full P&L financial on outlook slide press release can detailed XXXX accompanying

metrics outlook. with key remain all short, In quarter's last consistent

that launch Furthermore, a we our is note, we and new in than pipeline. of prepare launches. product beyond. revenues taking it growth longer vertical year XXXX R&D from partnerships line first quarter continue new be As half heavier to that the to our of last investments, discussed outlook include part but reminder, are particularly of opportunities continues in the other top plan includes our launches, anticipated, anticipate initially the for and to will for new Of the

half. solid results. this line map ramp summary, the R&D second while Accordingly, in delivering important XXXX At quarter same investments to our moderate. made for strategic revenues will strides will advance the In time, we road bottom

initiatives. have ability maintain is a invest flows positive robust operating balance while in to strong and evidence financial cash foundation of growth the sheet created, Our we to continuing

store grocery our Rob mentioned, market our position to We with which us in expand partnerships, new reach retail also customer locations. allowing and new strengthened

we expect and revenue to Operator, take later unlock built questions. excited this now are the about the to I'm we we ready opportunities year. that momentum new

Operator

[Operator Instructions]

HC with The ahead. first Raghuram . Please question from comes go Selvaraju the line of Wainwright.

Raghuram Selvaraju

even respect about you the or if likely play to the other margin on little is in In see if revenue was than to being And if future can talk past? e-commerce that excellent percentage could role and margin improvement the is to bit an with to that from . product base? you to maintain evolution increasing I Congrats the contribute overall gross margin panel by start revenue gross of a have channels driven achieve year. improvements more you necessary coming if how the wondering mix. particular, in they gross the e-commerce start

Brianna Gerber

it's Ram, Brenda.

and if recently, margins, have mix. when you about trending we've quarters been gross e-commerce look XX%. it's trend So when with a higher, between And we we XX% higher

think BXB speaks I your low e-commerce side, the to generally, we so that mid-XXs. the more and set are -- XXs XX the in And margins, point, low low

That is mix a impact there there. cost said, savings We do a mix initiatives. while So contributor. have is ongoing

year. full We have continue for versus contribute half year basis executed improvement a things slight We year XX.X% some set the to every into last the targets and up overall year. the gross will this of we these year that many last on second that expect margin should

Raghuram Selvaraju

Great.

exhibited And TRU already the or to of initiative NIAGEN TRU those have intent you was if to it move contribute talked higher could you that previously to And who customers revenue future? is who just utilized how those had I customers to dosage in to NIAGEN you comment forms adherence Secondly, product. the to expect what about going? wondering on the extent growth

Robert Fried

see thus we sooner who that what People the the and new-to-brand X,XXX have been issues, for supply also we notice far. difference mostly resolved customers. surprising at milligram. great we've that a demand worked has has initiative That milligram more point. for had successful launch X,XXX And are mean some Right. this is which dramatic. there the has X,XXX milligram I chain But taking been is it's

was fact, effective for just going an in It's initially well. be new-to-brand was for It's that profitable to us. X,XXX SKU customers been migrating to very it milligrams. it's over customers anticipation But effective SKU for a existing us. Our as

see that future. we us in So moving direction more in the

Raghuram Selvaraju

pertains was the remainder additional what lastly, maybe you you aspects wondering of to then the comment of if One could value inflection story on And for I company's coming Nestle anticipate course of partnerships X XXXX. Sinopharm, or year? Health announcements for those have, you any with you example, existing from of the that either meaningful on the anticipate over Sciences and developments this points fronts

And about could indications, XXXX. of remainder clinical the of bit clinical And look talk nicotinamide you excited what in most XXXX? riboside anticipate also, may little from about you assessment in standpoint if of you ahead which, as a we be the particular, to

Robert Fried

with the question. second start I'll

doing. forward looking Harvard actual that the data the We they but on haven't long We have the study. study that a know are -- very we study, completed much seeing to COVID blinded has been it's

see study, concluded. We have Parkinson's not We're yet seen the the data. We're about also should be excited that. which to excited

a fully would We to a little than It's done of a those It's But are thought it of a year. it's first get next done probably all quarter that later participants in December. recruited. taking for year. just be gram day obviously going

doing half and that us disease very category. [indiscernible] that excited These So we ataxia we're we're data until are very, important probably diseases work well. the of in won't There's see sometime first later also like very we're probably think obviously, and year. the this excited about we that the year. for for study as in But about other next orphan

to question, anticipate regard any announcements SinoPharm. exciting the regard don't or first news With to with we

of We TRU are and also about China. to the NIAGEN Sino partners to with to increase regularly the and into cross-border talking them increase cross-border work to some to ways sales talking ChromaDex China other sales into are

don't But announcements. any we expect major

the other brands, a will do be partner H&H later territories. called China, other pure products relationship launched extremely there cross-border in will is encapsulation. with It also XXXX. As into that you now That we know, successfully. be and has have X we Nestle possible with they and and so H&H sell they expanding

another has exists due NIAGEN SKUs think, I high-end Nestle [indiscernible] encapsulations X and the with -- also in, important So brand released product.

we with expand, talking are We major you about hopeful been that would Nestle, they the continue the or hear data. but not so will It's to partners the with XXXX There about we'll and only know ChromaDex. some both. to that very both, the balance of have that happy we've possible in expand announcements, that We will purchases about. more we're haven't ingredient other and that regard other read any ads seen we're anecdotally actual Nestle. estimates our seen for business with sales expecting grow they're that see very We're and NIAGEN with partnerships from in conservative

Operator

Our next question Mitch comes Co. with from Pinheiro the line Sturdivant of &

Mitchell Pinheiro

Good Yes. afternoon.

Just a couple of questions.

for revenue the year, first a something quarter it's levels going And the XX% the this So quarter expect with in the the I'm solid, be going we X acceleration with product to any for I'm obviously last XX% curious months. new Brianna I from? is second curious . second But ramped roughly reach should from whether that to is where growth come to see heard to say is QX half. revenue

Brianna Gerber

catalyst in baking as in There's a the ramp implied quarter. and of in reiterate the that any did full that product which, faster be we've and partnerships of to I'd year outlook We revenue year, with new very new that. terms half. not product second been this discussing at is that launches. in the least are other combination second than nothing outlook, consistent of new growth We've We've We vertical terms will second quarter, been steadily. point includes the last delivered in of the you our clear XX% in said,

comment So on is I'm not as specifically it second a second heard. you quarter, half going but to

Mitchell Pinheiro

Okay.

half that in reach -- of saying in you're to -- comfortable accomplish to some you're the have XX% that going to Is you're So half your guidance to combination back back do a you're guidance? so get to to what guess, kind your strong going I growth to XX, of you're enough that? see XX%

Brianna Gerber

was the we last And an lower there. QX recall Yes. so dollar have And toughest then the revenue absolute were that. then quarter, highest from other quarters year comp basis, than is. It

So throughout we there's year.. also comparisons as the move easier

Mitchell Pinheiro

Okay.

-- you thoughts sort launch With Walmart exactly which in of customer there -- your Rob, the new us with companies? give to how fit, further but you future? the And wasn't retail it you partners, retail could launch the portends -- expect maybe the at these expansion if go, you right can do the why chose wasn't

Robert Fried

Vitamin well further extraordinarily retail NMN NMN the selling were ingredient. the be it Shoppe it very There since illegal have their future. near NIAGEN expansion won't They Vitamin very, are in interesting be managers very well, mass retail the but is because future, Shoppe know like in at shelves Walmart but well. might informed. from became an They store removed

And longevity important in general category an is vitamin for Shock.

So education We that needed initiatives further managers. Marketing Shoppe. direct will do to Vitamin a there when a it, won't at was awareness the with Shoppe strong television mass not with quite be actually lot the create Vitamin support we which to have campaign to we of it And store television done running, be campaign. recall, and with case Walmart. were did at to sales got the as And you was a Walmart. enhancement up

and the support. see that, specialty overlap long. are is made the already distributed, that and Sprouts And think took dollars to another campaign. by decision NIAGEN its we deals and as well base. base Walmart a too example justify directly extreme had is retailers just ad we overlap well customer further that back and running more will in time retail customer investment you not might It out of And our did require and of high-end they the that informed poor advertising got TRU specialty to are pull not like investment significant media of of with

Mitchell Pinheiro

similar business? similar it it when margins are similar your to your to and e-commerce or comes product, e-commerce pricing you the . And will prices of margins to be to

Robert Fried

retail lower they are be No. e-commerce. yes, the margins will comparable. pricing And in in are The than

Mitchell Pinheiro

Okay.

so that And major R&D, approved name the then but the guess, so a is question integrity, was last expense Okay. -- your that your supplement your or got I investment firm just you the in I QX. forget -- the -- in of

Brianna Gerber

making the our believe you're get sold No. have as also up certifying picked I the goods port. in cost actually X and I'll to, of certified commence product. NSF Those referring assured to related we

not investments. as part R&D, $X quarter, about, a launch, That sequentially year-over-year was about also million NAD from with it as that expect related there's was as of precursor on to was first and vertical development ready saw, in also driver about it that ongoing up in second number. to R&D. increase large about talking heavy So fourth for always do we've studies again we've half bit this R&D. respect new and there other in the you SERP working talked We a new been moderating getting We and been up that $XXX,XXX that things some set well in half QX, similarly

Mitchell Pinheiro

I'll right. Okay. . All queue. the get back in

Operator

Our Capital of Please next Partners. line question . ahead. comes go ROTH McGowan from the Sean with

Sean McGowan

the you've occasionally Switching question time pipeline pipeline a When about past with the periods contraction. the back of different kind of was retailers. in on Watson, a talked to there and fill

be So should abnormal retailers load-in more will for load-in period initially? an . stock kind expecting the the product we gradual as these be they Or of

Robert Fried

obviously as is quite it's initial purchase, an not There dramatic. but

Sean McGowan

will product stores the And have time their they the Okay. of same out start at all to in with? each

Robert Fried

they but that. don't don't . building towards They they're yet,

Sean McGowan

this low sales? would think than point quarter, as . of for hear gross I you cadence on say this? the of to is this Brianna, but margin a quarter clear expect lower spending you that of a the percentage this and the see you Or R&D I loud year

Brianna Gerber

XX.X% Well, we I'd full our number, expect year just slightly say to to slightly up. that certainly It's pretty below we XX.X%. be strong. said That's and

think you but what is you the is which there that. mix probably to aspect X some I So of that is in lower, can will, imply

in mix think is gross numbers. closer And it stronger XX.X% than for a this when year so We comfortable. higher margin the and solid get XX% feels the has above, those e-commerce you to

Sean McGowan

the that first going sales event, correctly . of on marketing your Amazon, year. the hear up versus up last event I year last did despite quarter the against Rob, through actually Amazon you were

Robert Fried

Yes, sir. .

Sean McGowan

mean, are effort was and additional was step successful? didn't looking you that, -- got the we to the and How awareness you to that attribute guys look it say, you that money. back it? follow-through. Or . is at you that spend that I would need maybe at raised I do so as So that

Robert Fried

I was good was a . expensive. think too it that program

Sean McGowan

have and have last is Okay. product. -- milligram on the expect in the may that to I question I past, that you X,XXX know you now but know And be for do expect commented you is -- then SKU, this accretive? that the the revenue I take that do you

taking I'm so XXX, instead And X,XXX. now taking XXX a of day,

So I mean X,XXX and XXX, so I'm thinking pills. slightly more, but I'm only taking X

guys? So is to accretive that revenue you .

Robert Fried

It is slightly cost more revenue effective. Yes. also accretive, but

Sean McGowan

just I'm a good deal But that's you. bad for is deal if wondering me, something that a for

know You what mean.

Robert Fried

good a both. It's . deal for

Brianna Gerber

than Underscoring the fact Rob's was that it Rob we stock. new-to-brand as expected. new brand out noted, and very early. of we've more And in earlier on It's been to point

are caught We now demand. We've chasing up.

higher some. people to So But will not we're may large you seeing overall, doing. good to be trade be see projections. There's retention, are but There getting of percentage value better clear doing what lifetime we're that a the to picture it dose. a kind good there's up

Still we're confident not the for move a to all small business, of but term. of SKU the feeling make. So piece long and it's right the

Robert Fried

key . see retention But point, how good to a retention still numbers and up in the it's compare. early also brings is game Brianna the

Sean McGowan

pass on. it guys. just it's for a a from and lot, Easier Thanks to Anyway, -- a I'll easier get pack bills. fewer trip take standpoint, I your day to consumer Yes. . going. just

Brianna Gerber

Sean. . you, Thank

Operator

Tieton comes . of from Dezellem with Our the Bill line Capital. next question

William Dezellem

retention? And on are last up but X,XXX comment your pick to early, about retention what know going it's I indications I'm milligram. early the about with

Robert Fried

in only few The is early is other milligrams all other SKUs. . X,XXX indications it's months. again, with retention higher a fact, SKUs, But than

William Dezellem

sense staying are you that believe is has they more socioeconomic because a consumers it's And difference different of is dosage? on that who consumer than mindset? it lower a a do Or group different just noticed a your Rob, the on

Robert Fried

have We've surveys coming and so preliminary. in, very done we it's the only some surveys,

. than definitive former I think really can't the latter. the give So it's But you answer. more I a

William Dezellem

forward? start to Shoppe is those relative of Great. QX? And then those? and is for that them begin Sprouts, estimate size as And revenues the distribution what Vitamin distribution the when in did going you Or channels or point

Robert Fried

quarter. going in next to to first -- think . XXX quarter. shop we're recognize in They're stores months. in I the be XXX be but we're couple that Think stores. Yes, yet, of first to that I don't going close revenue they'll think in within vitamin we the the

William Dezellem

question is And ongoing your combined could guess ongoing what the and on what my Sprouts annual be, or revenue Vitamin speculation Shoppe so direct at would expectation an of basis? the be

Brianna Gerber

Our plans, be year ramp-up, the course, larger. think not for meaningful conservatively . and our we time, our We've contributor planned outlook. a hope to of for over full it's brand, fit a we will but it's good much it

William Dezellem

you're that to And a number do . you there, have share willing Brianna?

Brianna Gerber

No, not at this time, Bill. .

William Dezellem

Okay. No problem.

me of grow me quarter. to is you going is what that the million G&A going spending neighborhood. that that details that I to And And shifting said terms And money by so that said be let -- you back think going to What to you increasing somewhere have nicely or for this that will I think then -- $X.X additional to do G&A. G&A in you was be up $X million, means be to increase you're that practically in in used around business. up, on?

Brianna Gerber

Sure. you million, was in $X the in year-over-year, think, our down so spend. ramp-up out some current G&A implies about that actually and And Bill, our were quarter, calling I outlook

legal at We around we increased basically infrastructure margin, just into have We just are we IT the investing in for anticipate verticals expense areas. as the many as initiatives ongoing. get well regulatory, new these new infrastructure the of

call at areas that that key I'd planning conservatively we're time this so the And year. of are for the . Those out.

William Dezellem

Thank you, both .

Brianna Gerber

. Bill. Thank you,

Operator

Our Martin [ Hodous with comes . next JP of ] from Liquidity Research.. question the line

Unknown Analyst

already about you resources the allocating is I'm taking going many that and and selling call, physicians you know going ask is the channels you're my talking that's specifically? ask Since through little is how are bit pro clinics. and just question and how for the about market a you Can to talk

Robert Fried

pretty been for That market stable us. isn't for It's yet us. growing

We have focusing relevant announcing verticals are on that market. the last a that we very will But and have really investing to that think new be in close team that we over dedicated we that the is market. to been that years particular

Unknown Analyst

Okay. of do it as sales stable? same have increased I -- it, have it's . whether get it to marketing percent, the of you mean, you you speaking, look sort that? consistently for it? but don't is how talk decreased it? roughly Or about Or Has In the spend the and been number, amount and at a budget, you

Brianna Gerber

marketing selling a for on channel? . and comment practitioner the that health specifically professional That's care

Unknown Analyst

Correct the Yes, . that's that's it. Yes, question.

Brianna Gerber

I'd have sales force small been talked there. ramp leadership business maybe say or . perhaps be that steady, there, to drives not ahead some about that. say this around Rob bit it's I'd looking variability, we'll that as meaningful overall business, of but new investment that business of development little a and a a vertical, we fairly

Unknown Analyst

All Okay. off next quarter. hold right. I'll until

Operator

from comes line question Sean next the of ROTH our with And McGowan Capital.

Sean McGowan

fees, is that certain ramp to got liability kind up dispute This early meaningful add . and of attorney that for -- any legal meaningfully potential spending, about of that you've a relates the comment there's amount liability always the way those spending just beyond made going will to but the that on legal in you to already you

Brianna Gerber

way. we and think not this. expect our meaningful of outlook it's We these in our outlook. a on numbers. Not covered did We G&A covered areas legal. it's in some This but in was conservatively think original current not our planning

meaningful nothing XXXX. in there So

Operator

time. at further no are There questions this

hand back to I'll the . call Mr. over So Samson.

Unknown Attendee

replay is and There joining today a will operator. of for of us p.m. your for you, Thank Thank everyone, at today. X:XX Eastern this be The the support X-XXX-XXX-XXXX number and Time ID continued beginning call replay is ¢. replay ChromaDex. you,

Operator

today's conference concludes call. This

disconnect. may now You

ChromaDex (CDXC) 8 May 242024 Q1 Earnings call transcript