Mitch Pinheiro's questions to CDXC leadership • Q1 2024
Question
Inquired about the path to achieving the full-year revenue growth target, the strategy behind the new retail partnerships with Sprouts and Vitamin Shoppe, the expected pricing and margins in these new channels, and whether a recent supplement certification was a major R&D expense.
Answer
The company reiterated its full-year growth guidance, stating that revenue will ramp in the second half driven by new products and partnerships. The new retail partners are a better fit than Walmart as they are specialty retailers requiring less marketing support. Margins in retail will be lower than e-commerce, with comparable pricing. The certification cost was part of COGS, not R&D; the R&D increase was for new vertical and product development.