Executive Summary

Q1 2024 delivered sequential and year-over-year revenue growth to $1.255M, with gross margin above 30% for a fifth straight quarter and the lowest loss from continuing operations in over six years; OpEx declined double-digit YoY as cost actions held .
GoodWheat continued distribution expansion (Amazon’s Choice for Three Cheese Mac & Cheese; >3,500 stores across three categories) while Zola showed accelerating category growth and set up a >3,300-store footprint by end of Q2 via ~1,300 new doors .
Management reiterated a 2024 net operating loss target of under $10M, plans to grow revenue, optimize margins, and reduce OpEx, and continues to pursue strategic alternatives and IP monetization partnerships (supply chain and large food manufacturers) .
Street estimates were unavailable via S&P Global; focus for investors is on execution of Zola distribution/innovation and GoodWheat retailer velocity work, plus any outcomes from the ongoing strategic review as potential stock catalysts (no timetable) .

What Went Well and What Went Wrong

What Went Well
- Sustained margin discipline and cash burn improvement narrative: five consecutive quarters >30% gross margin and the lowest loss from continuing operations in 6+ years, supported by disciplined OpEx reductions .
- Zola re-acceleration: category unit and dollar sales +10% YoY for 13 weeks ended Mar 30; last 4 weeks +14% units/+15% dollars; flavors (pineapple, lime) and ~1,300 new Q2 stores position Zola as the majority driver of revenue and gross profit growth near term .
- GoodWheat brand validation and distribution: Amazon’s Choice designation for Mac & Cheese and >3,500 stores across pasta, pancakes, and mac & cheese strengthens brand equity and shelf presence .
What Went Wrong
- GoodWheat execution is mixed across retailers (price/promo/planogram/SKU hurdles), implying slower velocity build and higher near-term selling investment needs at certain accounts .
- Promotional/slotting costs tied to GoodWheat expansion weighed on near-term profitability; management expects associated costs to begin ramping down by Q4 2024 (not immediately) .
- Limited disclosures and Street coverage: no segment revenue breakdown and unavailable consensus estimates reduce external benchmarking, placing more weight on internal execution milestones .

Financial Results

Sequential trend (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$1.597	$1.170	$1.255
GAAP EPS ($)	$(1.89)	$(2.10)	$(1.78)
Loss from Continuing Operations ($USD Millions)	$(3.242)	$(3.364)	$(3.064)
Total Operating Expenses ($USD Millions)	$4.839	$4.534	$4.319
Cost of Revenues ($USD Millions)	$1.102	—	$0.820
Gross Margin %	31%	42.6% (calc. from $1.170–$0.671=$0.499 GP and revenue)	34.7% (calc. from revenue and cost)

Notes: Q4 2023 gross profit was disclosed at $0.499M; margin shown is calculated using reported revenue and gross profit . Q1 2024 margin is calculated from reported revenue and cost of revenues .

Year-over-year for the quarter

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$1.232	$1.255
GAAP EPS ($)	$(10.86)	$(1.78)
Loss from Continuing Operations ($USD Millions)	$(3.867)	$(3.064)
Total Operating Expenses ($USD Millions)	$5.099	$4.319

Actual vs Estimates (Q1 2024)

Metric	Actual	Consensus	Surprise
Revenue ($USD Millions)	$1.255	NA	NA
GAAP EPS ($)	$(1.78)	NA	NA

Estimates from S&P Global were unavailable for Q1 2024; consensus not shown due to limited coverage.

KPIs and balance sheet (Q1 2024)

KPI	Value
GoodWheat distribution	>3,500 stores; three categories (pasta, pancakes, mac & cheese)
GoodWheat Mac & Cheese	Amazon’s Choice “New Arrival Pick” (Three Cheese)
Zola distribution momentum	~200 new stores in Q1; shipping to ~1,300 new stores in Q2; total >3,300 stores by end of Q2
Zola category trends	13 weeks: +10% units/+10% dollars; last 4 weeks: +14% units/+15% dollars (Nielsen)
Gross margin streak	>30% for five consecutive quarters
Cash & cash equivalents	$3.317M
Short-term investments	$5.184M
Net cash used in operating activities (Q1)	$(3.210)M

Segment breakdown: The company did not disclose revenue by brand/category in Q1; all reported as Product revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net operating loss	FY 2024	“Under $10M” target (Q4 call)	Reiterated path to net operating loss under $10M; grow revenue, optimize margins, reduce OpEx	Maintained
Revenue growth	FY 2024	“Double-digit increase in sales in 2024” (Q4 commentary)	Plan to grow revenue in 2024 (directional)	Maintained (directional)
Gross margin %	FY 2024	30–35% expected (mix-driven) (Q4 Q&A)	No update provided in Q1; five-quarter >30% streak reiterated	Maintained (implicit)
Zola growth	FY 2024	Anticipating double-digit growth in 2024	Optimistic for continued double-digit growth with flavors + distribution	Maintained
Marketing/SG&A run-rate	2024	Lower SG&A YoY; lowest since 2019 (Q4)	Marketing investment to come down vs prior years; cost ramp-down by Q4 2024	Clarified trajectory

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
GoodWheat retail execution	Learning on price points, shelf placement, promos; nurturing existing doors (Q3) ; focus on building velocity in 3,000+ doors entering 2024 (Q4)	Execution “mixed” across retailers; challenges with buyer changes, planograms, promoted pricing	Mixed execution; targeted investments needed
Zola innovation & distribution	New pineapple/lime flavors planned Q1 2024; distribution recovery (Q3)	Category growth accelerating; ~1,300 new Q2 stores; Zola to be majority driver of revenue and gross profit growth	Improving; key growth engine
Margins & OpEx	Q3 gross margin 31%; SG&A lowest since 2019 (Q3) ; FY24 margin view 30–35% (Q4)	>30% margin streak extends to five quarters; lowest loss from continuing ops in 6+ years; OpEx down double-digit YoY	Sustained discipline
Strategic review	Initiated; engaging potential transactions (Q3)	Final discussions with potential partners; no timetable; continued exploration	Ongoing, no timing
IP monetization (wheat supply chain)	Exploring supply chain partners and manufacturer demand creation (Q4)	In final discussions with supply chain partners; conversations with large food manufacturers ongoing	Advancing discussions

Management Commentary

“Revenue continues to grow both sequentially and year-over-year… our gross profit margins have been greater than 30% for 5 consecutive quarters… Operating expenses continued to decline at a double-digit pace versus last year… [Q1 2024 achieved] the lowest loss from continuing operations in over 6 years.” – CEO Stan Jacot .
“Zola is back to growing share… store count… nearly 1,300 [new] stores bringing our total… to over 3,300 by the end of Q2… we expect Zola to be a key growth driver… for both revenue and gross profit.” – CEO Stan Jacot .
“We… have engaged with a significant number of potential transaction partners… continue to have discussions and perform the due diligence work necessary to accelerate our ability to monetize our IP… no timetable has been set for the conclusion of the strategic review.” – CEO Stan Jacot .
“Our overall marketing investment will come down significantly relative to prior… years as we focus more on our existing customers and driving velocities versus new distribution into new stores.” – CFO Thomas Schaefer .

Q&A Highlights

GoodWheat cost trajectory: Upfront investments centered on promotions/slotting; marketing spend to decline vs prior years; ramp-down of related costs expected by Q4 2024 .
Retail execution: Mixed results across accounts due to buyer changes, planogram resistance, and promo pricing challenges; continued focus on nurturing existing relationships .
Zola’s role: Management expects Zola to be the majority driver of revenue and gross profit growth given lower selling/promotional intensity vs center-store categories .

Estimates Context

S&P Global consensus estimates for Q1 2024 revenue and EPS were unavailable; as such, no formal “beat/miss” assessment could be made for the quarter. Coverage appears limited for RKDA at this time.

Key Takeaways for Investors

Mix improvement and cost discipline are working: five quarters of >30% gross margin, lower OpEx, and reduced operating losses indicate improving earnings quality and cash burn trajectory .
Zola is the near-term growth and profit engine: flavor innovation plus a >3,300-store footprint by end of Q2 supports double-digit growth and better incremental profitability vs GoodWheat .
GoodWheat needs execution wins: retailer-by-retailer progress is uneven; success depends on pricing, promos, shelf placement, and SKU expansion—expect a measured build in velocity .
2024 guardrails: management continues to target a sub-$10M net operating loss with revenue growth and margin optimization; monitor gross margin hold (30–35% framework) and OpEx cadence into 2H .
Strategic review/IP monetization optionality: final-stage partner discussions are underway, but no timetable; any transaction or licensing progress could be a catalyst .
Liquidity watch: $3.3M cash and $5.2M short-term investments at Q1 end; Q1 operating cash outflow $(3.2)M—track progress on working capital and OpEx discipline through 2024 .

Additional Documents Reviewed

Q1 2024 8-K and press release (Ex. 99.1) and financials (Ex. 99.2) .
Q1 2024 earnings call transcript –.
Q4 2023 8-K and press release/financials –.
Q4 2023 earnings call transcript –.
Q3 2023 8-K and press release/financials –; Q3 2023 earnings call transcript –.

No other standalone press releases were listed in the Q1 2024 window beyond the 8-K/press release in our document catalog.

Arcadia Biosciences, Inc. (RKDA)·Q1 2024 Earnings Summary