Name: Vinco Ventures, Inc. Q2 2019 Earnings Call
Start: 2019-08-15T00:00:00.000Z

Executive Summary

Q2 2019 revenue rose 36.0% year over year to $5.97M, with gross profit up 61.8% and gross margin expanding to 34.2% on favorable product mix .
Net loss widened to $1.78M (−$0.30 EPS) versus −$0.73M (−$0.18 EPS) a year ago, driven by higher SG&A from acquisitions and integration costs; interest expense also increased with new borrowings .
Adjusted EBITDA was approximately breakeven ($0.01M) vs $0.21M in Q2 2018; management highlighted non-GAAP adjustments for stock comp, restructuring, and transaction costs .
Liquidity remains the key risk: negative working capital of ~$5.7M at quarter-end; management plans include capital raises, debt, cost reductions, and Cloud B asset foreclosure reducing certain liabilities .
No formal guidance or call transcript was issued; near-term catalysts are margin trajectory and product launches versus balance sheet constraints .

What Went Well and What Went Wrong

Gross margin expanded to 34.2% (vs 28.8% LY), attributed to favorable product mix from Cloud B and Edison Nation brands: “The increase is primarily a result of a favorable product mix” .
Strong first-half growth: H1 2019 revenue up 49.7% to $11.7M, with CEO citing scale of consumer brands and innovation platform as drivers .
Operational highlights: new theme park products for Disney/Universal, licensing wins (Apothecary), and platform/Academy initiatives to monetize the inventor community .

Operating expenses doubled YoY to $3.39M, reflecting acquisition integration, professional fees, and higher wages for growth initiatives .
Net loss and EPS deterioration (−$1.78M; −$0.30) versus LY (−$0.73M; −$0.18); interest expense rose 44.5% YoY on increased borrowings .
Liquidity strain: negative working capital (~$5.7M) and reliance on convertible notes/lines of credit; going concern disclosed with mitigation plans .

Metric	Q2 2018	Q1 2019	Q2 2019
Revenue ($USD)	$4,387,197	$5,738,534	$5,968,255
Gross Profit ($USD)	$1,262,976	$1,792,976	$2,044,003
Gross Margin (%)	28.8%	31.2%	34.2%
Operating Income (Loss) ($USD)	−$395,462	−$1,256,212	−$1,348,593
Interest Expense ($USD)	$277,602	$124,694	$401,170
Net Loss ($USD)	−$726,661	−$1,378,397	−$1,775,065
Diluted EPS ($USD)	−$0.18	−$0.25	−$0.30
Adjusted EBITDA ($USD)	$207,960	−$202,607	$9,156

Actual vs. Estimates (Q2 2019):

Metric	Actual	Consensus	Surprise
Revenue ($USD)	$5,968,255	N/A (S&P Global consensus unavailable)	N/A
EPS ($USD)	−$0.30	N/A (S&P Global consensus unavailable)	N/A

Segment/Revenue Stream Breakdown:

Revenue Stream	Q2 2018	Q1 2019	Q2 2019
Product Sales ($USD)	$4,387,197	$5,637,350	$5,845,651
Services ($USD)	—	$25,597	$22,714
Licensing ($USD)	—	$75,587	$99,890
Total Revenue ($USD)	$4,387,197	$5,738,534	$5,968,255

Operating Expense and Liquidity KPIs:

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	FY/Q2 2019	None issued	None issued	Maintained (no formal guidance)

Topic	Previous Mentions (Q4 2018 and Q1 2019)	Current Period (Q2 2019)	Trend
Platform & Innovation	Rolled out “One Company” integration; platform crowdsourcing and Everyday Edisons distribution; MasterSous Kickstarter success 400%+ target	CEO cites platform scale and IP/media engine as growth drivers	Consistent focus; scaling content and community
Product Performance	Goodie Gusher expansion; 911 Help Now launch; Smarter Specs entry	New theme park SKUs; licensing deal with Apothecary; Edison Academy launch	Broadening portfolio
Supply Chain & Manufacturing	Concentrated manufacturing in China/HK; expanded vendor base; HK office for QA	Continued tooling investments; inventory build tied to 911 Help Now; AR increase	Capacity build; working capital usage
Regional Trends	NA ~77–83% of revenue; Europe/Asia contributions	NA 73%, Europe 18%; Asia-Pacific <10%	Stable mix; Europe modest presence
Regulatory/Legal	—	Arkansas state notice on Reg A notice filing; pursuing consent order (no admission)	New compliance item
Capital Structure	Convertible notes and receivables financing initiated	Additional $1.11M senior convertible notes; higher interest expense	Leverage increased

“During the first half of 2019, EDNT achieved significant revenue growth of 49.7%, to $11.7 million… driven by the continued success of our IP and the scale of our consumer brands” — Chris Ferguson, CEO .
“Gross profit margin was 34.2%… primarily a result of a favorable product mix of goods sold to customers” .
“Adjusted EBITDA… totaled $0.01 million in the second quarter of 2019” (with reconciliation provided) .

No earnings call transcript was filed or available for Q2 2019; therefore no Q&A themes or clarifications to report [ListDocuments showed none].

Wall Street consensus (S&P Global) for Q2 2019 EPS and revenue was unavailable for BBIG in SPGI mapping; as a result, estimate comparisons could not be made (S&P Global consensus unavailable) [GetEstimates tool error noted].

Margin trajectory improving: gross margin expanded to 34.2% on mix, partially offset by higher SG&A — monitor sustainability as portfolio scales .
Liquidity is the swing factor: negative working capital (~$5.7M) and increased borrowings elevate risk; watch capital raising plans, cost reductions, and working capital discipline .
Non-GAAP near breakeven but GAAP loss widened; improvement will require SG&A leverage and reduced one-time integration/transaction costs .
Product and licensing pipeline remains active (theme parks, Apothecary, Academy); execution on launches can drive revenue, but cash conversion and inventory turns are key .
Legal/regulatory housekeeping (Arkansas consent order) appears manageable, but underscores need for robust compliance processes as the company scales .
With no formal guidance and no call transcript, trading could be headline-driven; near-term catalysts include additional product announcements and any capital markets updates .