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Reborn Coffee, Inc. (REBN)·Q3 2022 Earnings Summary

Executive Summary

  • Q3 2022 revenue was $0.84M, up 22% year-over-year, driven by new store openings and brand marketing; quarterly net loss narrowed to $0.92M vs $1.94M last year, with EPS improving to -$0.08 from -$0.18 .
  • Operating costs decreased ~1% YoY despite expansion, reflecting cost discipline amid growth; segment mix remained dominated by stores with wholesale/online modest and down YoY .
  • Liquidity strengthened post-IPO: $6.2M net proceeds and cash of $4.73M at 9/30/22, supporting accelerated store expansion (Cabazon, Huntington Beach, Irvine in Q4’22; Mission Viejo in Q1’23) and B2B/RTD entry .
  • No formal quantitative guidance or earnings call transcript was available; limited sell-side coverage means Street estimates were unavailable, making near-term catalysts primarily operational openings and product launches .

What Went Well and What Went Wrong

What Went Well

  • Revenue growth and loss reduction: Q3 sales +22% YoY to $0.84M; net loss improved to -$0.92M (vs -$1.94M) and EPS to -$0.08 (vs -$0.18) as expansion scaled and costs were contained .
  • IPO-funded expansion: “With revenue growth driven by strong customer demand…we are highly focused on our expansion strategy goals supported by proceeds from our recent IPO” — Jay Kim, CEO .
  • Strong liquidity: Cash rose to $4.73M at quarter-end vs $0.91M at 12/31/21, providing runway for openings without additional capital per management’s commentary .

What Went Wrong

  • Still operating at a loss with limited scale: Wholesale/online revenue fell YoY ($10.9K vs $19.6K), underscoring reliance on stores and early-stage B2B/ecommerce traction .
  • Ongoing cash burn: Nine-month operating cash flow was -$2.00M, reflecting growth investments ahead of scale benefits .
  • No numeric guidance or call transcript: Lack of quantified outlook, margin targets, or Q&A-color limits visibility for investors; risk factors highlight macro and inflation sensitivities .

Financial Results

Consolidated Results vs Prior Periods and Estimates

MetricQ3 2021Q2 2022Q3 2022
Revenue ($USD)$687,814 $800,000 $838,245
Net Loss ($USD)$(1,940,973) $(900,000) $(920,060)
EPS ($USD)$(0.18) n/a $(0.08)
Total Operating Costs ($USD)$1,755,693 n/a $1,733,877
Store Gross Margin (%)n/an/a71.0%
Consensus Revenue (Q3 2022)n/an/an/a (S&P Global consensus unavailable)
Consensus EPS (Q3 2022)n/an/an/a (S&P Global consensus unavailable)

Segment Breakdown (Q3)

SegmentQ3 2021 ($USD)Q3 2022 ($USD)
Stores Net Revenues$668,184 $827,332
Wholesale & Online Revenues$19,630 $10,913
Total Net Revenues$687,814 $838,245

KPIs and Balance Sheet Highlights

KPIQ3 2022
Cash and Cash Equivalents ($USD)$4,730,097
Net Cash Used in Operating Activities (9M) ($USD)$(1,996,700)
IPO Net Proceeds ($USD)$6,200,000

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Store Openings TimelineQ4 2022n/aCabazon, Huntington Beach, Irvine expected to open in Q4’22 New qualitative update
Store Openings TimelineQ1 2023n/aMission Viejo expected to open in Q1’23 New qualitative update
Funding for Pipeline2022–2023n/a“Sufficient cash to meet our current pipeline…without the need to raise additional funds” New qualitative update
Strategic TargetsMulti-yearn/aUp to 40 company-owned retail locations; 4 U.S. flagships; 4 overseas locations New qualitative roadmap
Revenue/Margins/OpEx/TaxQ3 2022 onwardn/aNo numeric guidance provided Maintained “no formal guidance” stance

Earnings Call Themes & Trends

No Q3 2022 earnings call transcript was found; company appears not to have published a call transcript for the period. Narrative trends are derived from press releases and risk disclosures.

TopicPrevious Mentions (Q2 2022, Q1 2022)Current Period (Q3 2022)Trend
Store ExpansionQ2: 63% revenue growth; IPO to fund expansion Q3: Specific openings slated for Q4’22/Q1’23; target up to 40 stores Acceleration with funded pipeline
B2B/RTD ProductsQ2: Strategy building; early-stage Q3: Preparing entry with RTD cold brew and premium ice cream Execution phase beginning
Macro/Inflation/COVID RisksQ2: Noted in filingsQ3: Explicit forward-looking risk factors include inflation, competition, COVID Ongoing external risk vigilance
Franchise DevelopmentQ2: Program development post-IPO Q3: Continued focus on franchise opportunity alongside company-owned growth Building optionality
International AspirationsQ2: Early plansQ3: Roadmap includes 4 overseas locations (Korea, Austria, Dubai) Increasingly articulated

Management Commentary

  • “We continued to build the foundation for long-term growth with ongoing revenue execution and location expansion…with the transition to a Nasdaq listed public company and the addition of new capital to accelerate our growth strategy.” — Jay Kim, CEO .
  • “We believe we have sufficient cash to meet our current pipeline of new locations without the need to raise additional funds…we are well-positioned to reach our goals for sustained operational execution and year-over-year revenue growth.” — Jay Kim .

Q&A Highlights

  • No Q3 2022 earnings call transcript located; no Q&A available for the period [ListDocuments returned none; Internet search did not surface a transcript].

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2022 EPS and revenue was unavailable; company appears to have limited analyst coverage. As a result, no beat/miss determination vs consensus can be made for Q3 2022 [GetEstimates error; coverage unavailable].

Key Takeaways for Investors

  • Near-term growth is operationally driven: funded store openings in Q4’22/Q1’23 and entry into RTD/B2B should lift scale and brand reach .
  • Profit trajectory is improving: net loss narrowed sharply YoY and EPS improved; continued cost discipline will be crucial as locations ramp .
  • Liquidity is solid post-IPO: $4.73M cash and $6.2M net proceeds provide runway for the current pipeline without additional capital, reducing financing risk in the near term .
  • Mix reliance on stores remains high: wholesale/online revenue contracted YoY in Q3, underscoring the importance of retail traffic and AUV growth at existing locations .
  • Visibility is limited: absence of numeric guidance and Street estimates places more emphasis on execution milestones and store-level performance to drive stock reaction .
  • Watch catalysts: on-time openings (Cabazon, Huntington Beach, Irvine, Mission Viejo), early RTD sell-through, and any franchise/licensing announcements should be stock-moving events .
  • Risk monitoring: inflation, competition, and COVID-related traffic impacts remain key external variables highlighted in risk disclosures .

Sources

  • Q3 2022 8-K and Exhibit 99.1 press release, financial statements:
  • Q2 2022 press release:
  • Q2 2022 additional coverage (net loss data):
  • IPO closing press release (Aug 16, 2022):
  • Q3 2023 release (reference to Q3’22 store margin):