Executive Summary

Q4 2018 net revenue was $0.406M, up 40% year over year; unit cases grew to 36,600 from 27,400, marking the fifth consecutive quarter of double‑digit revenue and unit case growth .
Operating margin increased to 50% from 43% in the prior‑year quarter, despite Q4 being “typically the lowest quarter for revenue in the beverage industry” per management .
Net loss narrowed 23% year over year to $0.145M, supported by higher revenue and margin initiatives; however, the company remains loss‑making and cash is limited ($24k at year‑end) .
Near‑term catalysts include accelerated launch of MOJO Pure Coconut Water + mango juice on Amazon (moved up to February 2019) and refreshed branding/website rollout in early February 2019 .

What Went Well and What Went Wrong

What Went Well

“Fifth consecutive quarter of double digit revenue growth and unit case growth,” with Q4 revenue +40% YoY to $405,741 and unit cases +34% YoY to 36,600 .
Management highlighted execution on commercial capabilities: “building a better broker network and internal sales capabilities,” adding points of sale, and “build[ing] out our hybrid distribution system in the northeast” .
Product pipeline and speed: “we developed three new MOJO branded beverages and one product for our private label business” and moved the Amazon launch well ahead of plan (February vs June 2019) .

What Went Wrong

The company is still posting losses: Q4 net loss was $145,315; the business remains sub‑scale and capital constrained with year‑end cash of $24,031 and working capital of $165,271 .
Cost discipline improved through 2018 (full‑year SG&A down $550k), but quarterly variability persists; in Q3 2018, operating expenses increased year‑over‑year due to higher selling and consulting costs, pressuring the quarterly loss .
Customer concentration remains an ongoing risk: in FY 2018 two customers accounted for ~51% of revenue (26% and 25%), elevating exposure to account‑level changes .

Financial Results

Revenue, Net Income, Margins vs Prior Periods and Estimates

Metric	Q2 2018	Q3 2018	Q4 2018	Wall Street Consensus (Q4 2018)
Revenue ($USD Millions)	$0.442	$0.490	$0.406	N/A – S&P Global consensus unavailable
Net Income ($USD Millions)	$(0.047)	$(0.139)	$(0.145)	N/A
Cost of Revenue (% of Revenue)	55%	52%	N/A	N/A
Operating Margin (%)	N/A	N/A	50% (vs 43% YoY)	N/A

Notes: S&P Global Wall Street consensus for MOJO Q4 2018 was unavailable; no comparable EPS consensus was found via S&P Global for this micro‑cap OTC issuer.

KPIs

KPI	Q4 2017	Q4 2018
Unit Cases Sold	27,400	36,600
Operating Margin (%)	43%	50%

Segment Breakdown

Company reports as a single beverages business focused on MOJO coconut water and related products; no segment disclosure provided .

Guidance Changes

Metric/Topic	Period	Previous Guidance	Current Guidance	Change
MOJO Pure Coconut Water + Mango Juice – Amazon Launch	Q1 2019	Planned June 2019 launch	Launch in February 2019	Accelerated
Product Website & Branding	Q1 2019	Not previously dated in filings	“In early February, we plan to launch our new product website showcasing new products and our refreshed branding”	New timing disclosed
Financial Guidance (Revenue, Margins, OpEx, EPS)	2019	None disclosed	None disclosed	Maintained (no guidance)

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 2018 in our document corpus; themes are synthesized from Q2/Q3 2018 10‑Qs and the Q4 2018 earnings press release.

Topic	Previous Mentions (Q2 2018)	Previous Mentions (Q3 2018)	Current Period (Q4 2018)	Trend
Cost of goods/margins	Cost of revenue 55% of revenue; margin improvement driven by lower purchase prices	Cost of revenue 52% of revenue; continued benefit from lower purchase prices	Operating margin increased to 50% vs 43% YoY	Improving margins YoY
Selling/OpEx discipline	SG&A down vs prior year; compensation costs substantially lower, selling costs slightly higher with volume	OpEx up YoY in the quarter due to selling and consulting expenses	Focus on “increasing sales and gross margin”; improved operating margin	Mixed intra‑quarter; improving full‑year trend
Distribution/broker network	Emphasis on expanding distribution; hybrid networks evolving	Ongoing expansion; working capital needs tied to demand	“Building a better broker network and internal sales capabilities” and “build out our hybrid distribution system in the northeast”	Positive build‑out
Product development/innovation	Core MOJO coconut water formats; expanded SKUs	Continued Non‑GMO portfolio focus	Three new MOJO beverages developed; accelerated Amazon launch; refreshed branding	Accelerating innovation cadence
Customer concentration	Not highlighted in quarterlies	Not highlighted in quarterlies	Two customers ~51% of FY18 revenue	Elevated structural risk

Management Commentary

“We hit many milestones including strong growth in revenue and operating margin during the quarter… this was the fifth consecutive quarter of double digit revenue growth and unit case growth.” — Glenn Simpson, Chairman & CEO .
“We… devoted significant resources to building a better broker network and internal sales capabilities… added to our points of sale and continued to build out our hybrid distribution system in the northeast region of the USA.” .
“MOJO Pure Coconut Water + mango juice is expected to launch on Amazon in February 2019 well ahead of our planned launch date of June 2019… In early February, we plan to launch our new product website showcasing new products and our refreshed branding.” .
“Being able to develop and launch new products quickly is a required competence for beverage companies today. In this quarter, we developed three new MOJO branded beverages and one product for our private label business.” .

Q&A Highlights

No Q4 2018 earnings call transcript was available in our source documents; therefore, no management Q&A disclosures were identified for this period (analysis based on press release and SEC filings) .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2018 revenue and EPS was unavailable for MOJO; this OTC micro‑cap appears to have limited or no active analyst coverage through S&P Global at that time. Our attempt to retrieve consensus returned an error (daily request limit exceeded), and no alternative consensus source was identified in filings .

Key Takeaways for Investors

Momentum intact: Q4 revenue +40% YoY and operating margin up to 50% underscore improving unit economics and commercial execution, even in a seasonally low quarter .
Near‑term catalysts: Amazon launch pulled forward to February 2019 and refreshed branding/website support demand capture and digital visibility; monitor sell‑through and reviews post‑launch .
Watch seasonality and sequential trends: Sequential revenue declined vs Q3 (typical seasonality); track Q1/Q2 to confirm rebound and whether margin gains persist amid higher volumes .
Cost structure discipline: Full‑year 2018 shows lower SG&A (especially compensation), but quarterly spikes are possible; sustained margin expansion likely requires scale plus continued COGS improvements .
Liquidity and concentration risks: Minimal cash ($24k), modest working capital ($165k), and high customer concentration (~51% of FY18 revenue from two customers) raise financing and execution risks if growth accelerates; dilution or credit facilities may be needed .
Distribution build‑out: Broker network and hybrid distribution expansion in the Northeast should enhance points of sale; verify additions and reorders as key health indicators .
Position sizing: Given micro‑cap status, limited coverage, and concentration/liquidity risks, position sizing and liquidity considerations are prudent until revenue scale and cash generation improve .

EQUATOR Beverage Co (MOJO)·Q4 2018 Earnings Summary