Executive Summary

Q1 2024 delivered $22.2M revenue, 60.7% gross margin, net loss of $0.5M (−$0.01 EPS), and positive Adjusted EBITDA of $0.7M; operating cash flow was $0.3M and cash ended at $27.6M with no debt .
Tru Niagen® revenue was $17.4M; mix improvements and cost controls lifted margins YoY despite distributor timing headwinds; S&M efficiency improved 450 bps YoY to 30.4% .
Full-year 2024 outlook reiterated: revenue growth “at least 16%” (also described as higher YoY than 16%), slight gross margin improvement, S&M stable as % of sales, higher R&D and G&A (+$1.5–$2.5M); revenue expected to ramp in H2 .
Near-term catalysts: expansion into Vitamin Shoppe and Sprouts, growing 1,000 mg Tru Niagen® SKU with higher early retention, and anticipated new vertical launch later in 2024; management emphasized e-commerce-led margin profile and disciplined spend .

What Went Well and What Went Wrong

What Went Well

Delivered positive Adjusted EBITDA ($0.7M) and positive operating cash flows, marking continued operational discipline; “We reduced total operating expenses, and delivered positive Adjusted EBITDA of $0.7M, along with positive operating cash flows, ending with $27.6M in cash and no debt” — CEO Rob Fried .
Gross margin up 80 bps YoY to 60.7% on mix and optimization; CFO noted e-commerce margins in low 70s vs B2B low–mid 50s, with ongoing cost-saving initiatives targeting slight FY margin improvement .
New retail distribution: 700 Vitamin Shoppe and ~400 Sprouts locations; management expects specialty retail to fit the brand without heavy mass-media support required at Walmart .

What Went Wrong

Total net sales fell 2% YoY driven by timing-related declines in Watsons and other B2B, offsetting e-commerce growth; Tru Niagen® down 2% YoY .
Operating cash flow declined YoY to $0.3M from $2.8M due to working capital (greater AP reductions, lower inventory/prepaids reductions) .
Litigation update: Delaware attorney fees ruling; company intends to appeal; CFO expects legal spend covered within G&A outlook but acknowledged it was not in numbers originally .

Financial Results

Quarterly Financials (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$19.495	$21.196	$22.153
Gross Margin (%)	61.4%	61.0%	60.7%
Operating Income (Loss) ($USD Millions)	$(1.147)	$(0.168)	$(0.731)
Net Income (Loss) ($USD Millions)	$(0.959)	$0.114	$(0.492)
Diluted EPS ($USD)	$(0.01)	$0.00	$(0.01)
Adjusted EBITDA ($USD Millions)	$0.504	$1.247	$0.670
Cash from Operations ($USD Millions)	$0.396	$0.649	$0.295
Cash And Equivalents ($USD Millions)	$26.773	$27.325	$27.565

YoY Comparison – Q1 2024 vs Q1 2023

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$22.556	$22.153
Gross Margin (%)	59.9%	60.7%
Sales & Marketing (% of net sales)	34.9%	30.4%
Total Operating Expenses ($USD Millions)	$15.486	$14.187
Operating Income (Loss) ($USD Millions)	$(1.968)	$(0.731)
Net Income (Loss) ($USD Millions)	$(1.902)	$(0.492)
Diluted EPS ($USD)	$(0.03)	$(0.01)
Adjusted EBITDA ($USD Millions)	$(0.069)	$0.670
Cash from Operations ($USD Millions)	$2.792	$0.295

Segment / Channel Breakdown – Q1 2024

Net Sales ($USD Millions)	Amount	YoY Change
E-Commerce	$12.9	+5%
Watsons & Other B2B	$4.5	(17)%
Niagen® Ingredient	$4.1	+5%
Analytical Reference Standards & Services	$0.7	(11)%
Other Ingredients	$0.0	(100)%
Total Net Sales	$22.2	(2)%
Tru Niagen® Net Sales	$17.4	(2)%

KPIs – Q1 2024

KPI	Value
Tru Niagen® Net Sales ($USD Millions)	$17.4
Tru Niagen® as % of Net Sales (%)	78%
Niagen®-related Net Sales as % of Net Sales (%)	97%
Gross Margin (%)	60.7%
Sales & Marketing (% of net sales)	30.4%
Adjusted EBITDA ($USD Millions)	$0.670
Operating Cash Flow ($USD Millions)	$0.295
Cash And Equivalents ($USD Millions)	$27.565

Note: The Q1 2024 investor slide shows e-commerce mix at 54% , while CFO commentary cited ~58% for the quarter, indicating minor disclosure differences; margin drivers were consistent (e-commerce mix and cost optimization) .

Guidance Changes

Metric	Period	Previous Guidance (Q4 2023)	Current Guidance (Q1 2024)	Change
Revenue Growth (YoY)	FY 2024	Higher rate than +16% FY23 growth	At least +16%; also described as higher than +16% YoY	Maintained (language varies)
Gross Margin (%)	FY 2024	Slight improvement YoY vs 60.8%	Slight improvement YoY (unchanged)	Maintained
Selling, Marketing & Advertising (% of net sales)	FY 2024	Up in absolute $, stable % of sales	Up in absolute $, stable % of sales (unchanged)	Maintained
Research & Development ($)	FY 2024	Up in absolute $ YoY	Up in absolute $ YoY (unchanged)	Maintained
General & Administrative ($)	FY 2024	+$1.5M to +$2.5M YoY	+$1.5M to +$2.5M YoY (unchanged)	Maintained

Management reiterated that revenue would ramp in H2 2024, with R&D heavier in H1 and moderating in H2 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2024)	Trend
E-commerce strategy & margins	Q3: e-commerce growth; margins supported by supply chain optimization . Q4: strong e-commerce drove Tru Niagen®; margin improved 380 bps .	E-commerce +5% YoY; focus on building subscribers, influencer and social content; e-commerce margins low-70s vs B2B low–mid-50s .	Improving mix; margin tailwind sustained
Retail partnerships	Q3: iHerb global launch; product pipeline . Q4: continued Tru Niagen® distribution .	Specialty retail expansion to Vitamin Shoppe (~700 stores) and Sprouts (~400 stores); preference over mass retail like Walmart due to alignment and lower support needs .	Expanding specialty footprint
Supply chain and cost optimization	Q3: economies of scale, yield loss improvements . Q4: margin improved via mix and scale .	Continued optimization supports slight margin improvement FY; e-commerce mix boosts quarterly margin .	Ongoing incremental gains
Product performance – Tru Niagen® 1,000 mg	Q4: launched 1,000 mg clinical strength .	Strong demand, new-to-brand adoption, early higher retention; slightly revenue accretive and more cost effective .	Positive early adoption
Regional/China cross-border	Q3: Watsons strength; partner timing . Q4: mix effects; Nestlé ingredient timing .	Discussions with SinoPharm to increase cross-border; possible H&H relationship expansion later in 2024; Watsons/B2B timing drove Q1 decline .	China strategy steady; potential partner expansion
Regulatory/legal	Q3/Q4: disciplined G&A, legal managed down .	Delaware attorney fees ruling; appeal planned; not expected to meaningfully change 2024 legal spend within G&A outlook .	Managed within outlook
R&D execution & new vertical	Q3: heavier R&D in Q4 for new NAD precursor work . Q4: investment in innovations close to launch .	R&D ramped in Q1 (~+$0.9M YoY) to prepare a new vertical; H2 moderation expected .	Near-term ramp, H2 moderation

Management Commentary

“We delivered $22.2 million in revenue… reduced total operating expenses, and delivered positive Adjusted EBITDA of $0.7 million… ending with $27.6 million in cash and no debt” — CEO Rob Fried .
“Gross margins… trend higher when we have quarters with a higher e-commerce mix… e-commerce margins… low 70s… B2B… low mid-50s… cost savings initiatives… should contribute to slight improvement” — CFO Brianna Gerber .
“1,000 mg launch… surprising… effective for new-to-brand… profitable SKU… moving more in that direction” — CEO Rob Fried .
“We are not baking in any new product revenue in second quarter… ramp will be in the second half… reiterated full year outlook of at least 16% faster growth” — CFO Brianna Gerber .
“Specialty retail… Vitamin Shoppe and Sprouts… overlap with our customer base and will not require significant investment of advertising dollars… unlike Walmart” — CEO Rob Fried .

Q&A Highlights

Gross margin drivers: mix favors e-commerce, structural initiatives continue; e-commerce low-70% margin vs B2B low–mid-50%; management comfortable with slightly higher FY margin than 60.8% .
Tru Niagen® 1,000 mg: early signals of higher retention, revenue accretive and more cost-effective; demand required chasing supply, now caught up .
Retail rollout cadence: initial load-in not dramatic; stores ramping towards full coverage; pricing similar to e-commerce but lower retail margins .
2024 growth cadence: no clear Q2 catalyst; H2 ramp from new vertical/partnerships; easier comps after Q1; reiterated at least 16% FY growth .
Legal outlook: Delaware fees ruling appeal; not expected to meaningfully change 2024 legal costs within G&A plan .

Estimates Context

S&P Global consensus EPS and revenue estimates for CDXC were unavailable due to missing CIQ mapping; consequently, we cannot assess beat/miss versus Street for Q1 2024, Q4 2023, or Q3 2023 at this time (values from S&P Global not retrievable).
Given the reiterated FY outlook and H2 ramp commentary, buyside models may need to reflect stronger H2 revenue cadence and modest gross margin tailwinds; absence of quarterly consensus limits near-term beat/miss framing .

Key Takeaways for Investors

Margin profile improving modestly on e-commerce mix and optimization; quarterly GM at 60.7% with path to slight FY improvement .
Channel mix headwinds (Watsons/Other B2B timing) masked underlying e-commerce strength; watch specialty retail ramp (Vitamin Shoppe/Sprouts) for incremental volumes without mass-media spend burdens .
Tru Niagen® 1,000 mg SKU shows promising demand and early retention with revenue accretion; continued supply visibility and subscriber growth efforts are critical .
H2 2024 revenue ramp is the narrative driver (new vertical, partnerships, product launches); near-term (Q2) lacks discrete catalysts per management .
Balance sheet provides flexibility (cash $27.6M, no debt); operating cash flow positive, albeit lower YoY on working capital dynamics .
Legal overhang (Delaware fees) managed within G&A outlook; monitor appeal progress but 2024 P&L impact expected to be immaterial .
Without available S&P Global consensus, trading into prints should focus on channel metrics (e-commerce growth, specialty retail sell-through), margin trajectory, and clarity on timing/scale of the new vertical .

ChromaDex Corp. (CDXC)·Q1 2024 Earnings Summary