Sign in

You're signed outSign in or to get full access.

MI

MANGOCEUTICALS, INC. (MGRX)·Q3 2023 Earnings Summary

Executive Summary

  • Q3 2023 revenue rose to $0.245M, up 42.5% sequentially versus Q2 ($0.141M) and from $0 in Q3 2022; gross profit reached $0.145M, with gross margin ~59% .
  • Operating expenses stepped down sequentially to $1.94M (from $2.38M in Q2) as the company ramped marketing ($0.721M in Q3) while reducing quarter-over-quarter spend elsewhere; net loss improved to $(1.80)M and diluted loss/share to $(0.11) from $(0.14) in Q2 .
  • No formal financial guidance; management outlined Q4 initiatives (new product categories, website redesign, affiliate program targeting 500 affiliates, digital marketing agency engagement, and UK-focused global expansion) which are potential catalysts for volume and brand awareness through year-end .
  • Consensus estimates were unavailable via S&P Global for Q3 2023 during this request; comparisons to Street numbers could not be made. Consider revisiting once data access is restored.

What Went Well and What Went Wrong

What Went Well

  • Accelerating customer and subscription metrics: “Subscription sales increased 65% from Q1 to Q3, with Q2 to Q3 sequential growth of 47%, demonstrating an accelerating growth curve” .
  • Brand and go-to-market progress: “We believe we are finally beginning to see accelerating growth in brand recognition and revenues… Stay tuned. The excitement is just beginning!” — CEO Jacob Cohen .
  • Revenue momentum driven by marketing partnerships: sequential revenue growth of 28.8% (Q1→Q2) and 42.5% (Q2→Q3), attributed to brand prominence, Barstool Sports/Audacy promotions, and IPO-funded marketing .

What Went Wrong

  • Heavy operating cost base and losses: Q3 operating expenses of $1.94M drove a net loss of $(1.80)M despite revenue growth; operating model not yet at scale to cover spend .
  • Continued reliance on related-party pharmacy and regulatory exposure: related-party cost of revenues persisted, and MD&A highlights FDA compounding risks and broader regulatory/compliance factors that could impede sales or require changes to operations .
  • Funding needs and dilution risk: management disclosed working capital of ~$1.2M and stated current capital resources are not sufficient for the next 12 months absent additional financing, potentially dilutive .

Financial Results

MetricQ3 2022Q1 2023Q2 2023Q3 2023
Revenues ($USD)$0 $100,722 $141,237 $245,160
Gross Profit ($USD)$0 (no revenue) $57,199 $87,130 $144,589
Gross Profit Margin (%)N/A ~56.8% ~61.7% ~59.0%
Total Operating Expenses ($USD)$991,825 $2,616,324 $2,379,388 $1,944,049
Net Loss ($USD)$(994,915) $(2,560,885) $(2,284,025) $(1,799,460)
Basic & Diluted EPS ($)$(0.10) $(0.23) $(0.14) $(0.11)

Estimates comparison

MetricQ3 2023 ConsensusQ3 2023 Actual
Revenue ($USD)Unavailable (S&P Global access limit)$245,160
Primary EPS ($)Unavailable (S&P Global access limit)$(0.11)

Note: Consensus data could not be retrieved due to request limits; revisit when data access is restored.

Segment Breakdown

  • The company does not report segment-level financials; operations are a single direct-to-consumer telemedicine/compounded ED product business at this stage .

KPIs

KPIQ3 20239M 2023
Average Order Value (Subscribing) ($)$130.27 $130.00
Average Order Value (Non-Subscribing) ($)$105.35 $104.88
Subscribing Share of Orders (%)11% 9%
New Orders Share of Revenue (%)—76%
Refills/Auto-Refills Share of Revenue (%)—24%
Subscription Sales Growth (Q1→Q3) (%)—65%
Subscription Sales Sequential Growth (Q2→Q3) (%)—47%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue/EPS/Margins)FY 2023 / Q4 2023NoneNoneMaintained (no formal guidance)
Operational InitiativesQ4 2023N/ANew products (hair loss/weight loss/performance/hormone therapies), website redesign, affiliate program to 500 affiliates, ADM engagement, UK marketing (Raindance sponsorship)Introduced

Earnings Call Themes & Trends

No earnings call transcript was available; themes tracked via MD&A and press releases.

TopicQ1 2023Q2 2023Q3 2023Trend
Marketing & BrandInitial ramp; partnerships; begin advertising (Nov 2022) Continued ramp; $0.284M quarterly marketing; brand building Heavy spend ($0.721M in Q3); affiliate program; ADM agency; broad podcast sponsorships Increasing investment; broader mix
Product StrategyED rapid dissolve tablet; compounding disclosure; regulatory context Same; exploring operations growth New men’s health categories planned; Q4/Q1 launch target Expansion beyond ED
Regulatory/LegalFDA compounding risks; compliance emphasis Continued disclosures Reiterated risks; Section 503A, “essentially copies” limitations Ongoing risk factor prominence
Supply Chain/PharmacyExclusive related-party pharmacy (Epiq Scripts) Same; licenses across states MSA addendum; consulting agreement; ROFR and non-use fee provisions Deepening ties, formalized rights
Global Expansion——Exploring UK, Mexico, South America; London sponsorship Initiated
Subscription & RefillsEarly subs base forming Building subs; operational focus Sub sales +65% (Q1→Q3); +47% (Q2→Q3) Accelerating

Management Commentary

  • “We believe we are finally beginning to see accelerating growth in brand recognition and revenues. We plan to continue to invest in driving new customer acquisition in our flagship Mango ED products… while expanding into new verticals… The excitement is just beginning!” — Jacob Cohen, CEO .
  • Operational focus: expansion to new product categories (hair loss, weight loss, performance, hormone therapies); new website rollout; affiliate program scaling to 500 affiliates by year-end; engagement of ADM to optimize social media advertising; UK/LatAm exploration via sponsorship and market assessment .
  • MD&A reiterates ED product is compounded under Section 503A, with explicit risk disclosures around FDA, “essentially copies” limits, and patient safety/regulatory exposure .

Q&A Highlights

  • No Q3 2023 earnings call transcript available for Q&A review (no transcript found in the document catalog).

Estimates Context

  • S&P Global consensus estimates for Q3 2023 (Revenue, EPS) were unavailable during this request due to access limits; therefore, beat/miss analysis versus Street could not be performed. Consider re-running when access is restored to update investor comparison.
  • Based on actuals, revenue was $0.245M and diluted EPS was $(0.11); momentum trends are sequentially positive, but without consensus data, implied Street positioning is unknown .

Key Takeaways for Investors

  • Revenue trajectory improving with sequential growth (+42.5% Q2→Q3) and expanding gross profit; scale remains nascent relative to expense base .
  • Operating discipline is starting to show (opex down Q/Q), but losses remain significant; monitor marketing efficiency (CAC/AOV/refill rates) given Q3 marketing spend of $0.721M .
  • Subscription economics are a key lever: faster growth (+65% Q1→Q3) and refills suggest rising LTV; management’s target to raise subscription share (10%→20–25%) could stabilize revenue if achieved .
  • Execution catalysts into Q4: affiliate program scale (goal 500), new product category launches, site redesign, and new agency engagement could accelerate customer acquisition and AOV .
  • Structural/regulatory risks and related-party reliance (Epiq Scripts) are material; recent MSA addendum and consulting agreement formalize rights but underscore concentration and compliance dependencies .
  • Liquidity watch: working capital ~$1.2M and disclosure that current resources are insufficient for 12 months; funding likely required (equity/dilution risk) unless revenue inflects materially .
  • Re-run a Street comparison when consensus is accessible to refine expectations and gauge potential upside/downside versus market models.

References:

  • Q3 press release and 8-K update (operational achievements and Q4 initiatives) .
  • Q3 2023 10-Q (financials, MD&A, KPIs, liquidity) .
  • Q2 2023 10-Q (financials, MD&A) .
  • Q1 2023 10-Q (financials, MD&A) .
  • Epiq Scripts consulting agreement and MSA addendum (structural rights) .