Revises Q4 Adjusted EBITDA loss(1) Expectations
to Approximately $3.9 - $4.2 Million to Reflect Incremental
Investment in Successful Holiday Marketing Campaign
Zevia PBC (“Zevia” or the “Company”) (NYSE: ZVIA), the Company
bringing naturally delicious, zero sugar, clean-label beverages,
provides an update on its fourth quarter and full year 2024
outlook. Zevia currently expects fourth quarter 2024 net sales of
approximately $39.5 million, at the high end of its previous
outlook. Adjusted EBITDA loss(1) is now expected to be $3.9 million
to $4.2 million, primarily due to the strategic decision to put
incremental investment behind its successful holiday campaign.
“We are pleased with the overwhelmingly positive response to our
now-viral holiday marketing campaign as well as the inflection in
business during the fourth quarter,” said Amy Taylor, President and
Chief Executive Officer of Zevia. “The ad, ‘Break from Artificial’
used exaggerated AI imagery to shine a light on artificiality in
advertising and in beverage in a light-hearted way. We saw an
opportunity to create a parody of a widely-discussed mainstream
soda holiday ad, which effectively positioned Zevia as an
alternative for consumers craving something more real. The response
validated our new marketing direction and served as an early launch
to a series of 2025 campaigns that position Zevia as the
anti-artificial alternative to mainstream soda.”
Ms. Taylor continued, “Based on the strong consumer response and
engagement levels of the original digital ad, we made the strategic
decision to increase our linear advertising in December during NCAA
football playoff games and key holiday NFL games, among others. In
total, the ad garnered over 292 million impressions, serving to
bring Zevia’s brand voice and unique positioning to a much broader
audience. We plan to continue to opportunistically invest in
initiatives to further build brand awareness and drive accelerated
future growth. This is in part fueled by the significant progress
we have made with our productivity initiative, which is expected to
result in $15 million in annual cost savings, the majority of which
we plan to reinvest in growth initiatives.”
Q4 and Full Year 2024 Outlook
For the fourth quarter of 2024, the Company now expects:
- Net sales of approximately $39.5 million.
- Adjusted EBITDA loss(1) of $3.9 million to $4.2 million as
compared to an Adjusted EBITDA loss(1) of $6.8 million in the
fourth quarter of 2023.
For the Full Year 2024, the Company now expects:
- Net sales of approximately $155.0 million.
- Adjusted EBITDA loss(1) of $15.2 million to $15.5 million as
compared to an Adjusted EBITDA loss(1) of $19.0 million in
2023.
We have not provided the forward-looking GAAP equivalent to our
Adjusted EBITDA outlook or a GAAP reconciliation due to timing
considerations required for stock-based compensation, income tax,
and charges associated with restructuring and cost saving
initiatives. Accordingly, a reconciliation of this non-GAAP
guidance metric to its corresponding GAAP equivalent is not
available without unreasonable effort. However, it is important to
note that the reconciling items could have a significant effect on
future GAAP results.
These preliminary results and updated forecasts presented herein
for the fourth quarter and full year of 2024 are estimates, based
on information available to management as of the date of this
release, and are subject to further changes upon completion of the
Company’s year-end closing procedures. This press release does not
present all necessary information for an understanding of the
Company's financial condition as of the date of this release, or
its results of operations for the fourth quarter and full year
2024.
ICR Conference
Management will present at the 27thAnnual ICR Conference today,
January 13, 2025, at approximately 3:00 pm ET. A live webcast of
the presentation will be available on the Investor Relations
section of Zevia’s website, investors.zevia.com. Shortly following
the event, a replay of the webcast will be available for
approximately thirty (30) days.
Use of Non-GAAP Financial Information
We use Adjusted EBITDA, a financial measure that is not
calculated in accordance with U.S. generally accepted accounting
principles (“GAAP”). The Company’s management believes that
Adjusted EBITDA, when taken together with our financial results
presented in accordance with GAAP, provides meaningful supplemental
information regarding our operating performance and facilitates
internal comparisons of our historical operating performance on a
more consistent basis by excluding certain items that may not be
indicative of our business, results of operations or outlook. In
particular, we believe that the use of Adjusted EBITDA is helpful
to our investors as it is a measure used by management in assessing
the health of our business, determining incentive compensation and
evaluating our operating performance, as well as for internal
planning and forecasting purposes.
We calculate Adjusted EBITDA as net income (loss) adjusted to
exclude: (1) other income (expense), net, which includes interest
(income) expense, foreign currency (gains) losses, (2) provision
(benefit) for income taxes, (3) depreciation and amortization, (4)
equity-based compensation, and (5) restructuring expenses (for
2024, in light of our Productivity Initiative). Adjusted EBITDA may
in the future also be adjusted for amounts impacting net income
related to the Tax Receivable Agreement liability and other
infrequent and unusual transactions.
Adjusted EBITDA is presented for supplemental informational
purposes only, has limitations as an analytical tool and should not
be considered in isolation or as a substitute for financial
information presented in accordance with GAAP. Some of the
limitations of Adjusted EBITDA include that (1) it does not
properly reflect capital commitments to be paid in the future, (2)
although depreciation and amortization are non-cash charges, the
underlying assets may need to be replaced and Adjusted EBITDA does
not reflect these capital expenditures, (3) it does not consider
the impact of equity-based compensation expense, including the
potential dilutive impact thereof, and (4) it does not reflect
other non-operating expenses, including interest (income) expense,
foreign currency (gains) losses, and restructuring. In addition,
our use of Adjusted EBITDA may not be comparable to similarly
titled measures of other companies because they may not calculate
Adjusted EBITDA in the same manner, limiting its usefulness as a
comparative measure. Because of these limitations, when evaluating
our performance, you should consider Adjusted EBITDA alongside
other financial measures, including our net loss or income and
other results stated in accordance with GAAP.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, any statement that may
predict, forecast, indicate or imply future results, performance or
achievements, and may contain words such as “anticipate,”
“believe,” “consider,” “contemplate,” “continue,” “could,’”
“estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “on
track,” “outlook,” “plan,” “potential,” “predict,” “project,”
pursue,” “seek,” “should,” “target,” “will,” “would,” or the
negative of these words or other similar words, terms or
expressions with similar meanings. Forward-looking statements
should not be read as a guarantee of future performance or results
and will not necessarily be accurate indications of the times at,
or by, which such performance or results will be achieved.
Forward-looking statements contained in this press release relate
to, among other things, statements regarding financial guidance or
outlook, expected benefits of and annualized cost savings from the
Productivity Initiative, long-term growth opportunities, future
results of operations or financial condition, strategic direction,
and plans and objectives of management for future operations,
including marketing, distribution expansion and product innovation.
Forward-looking statements are based on current expectations,
forecasts and assumptions that involve risks and uncertainties,
including, but not limited to, the ability to develop and maintain
our brand, our ability to successfully execute on our rebranding
strategy, cost reduction initiatives, and to compete effectively,
our ability to maintain supply chain service levels and any
disruption of our supply chain, product demand, changes in the
retail landscape or in sales to any key customer, change in
consumer preferences, pricing factors, our ability to manage
changes in our workforce, future cyber incidents and other
disruptions to our information systems, failure to comply with
personal data protection and privacy laws, the impact of inflation
on our sales growth and cost structure such as increased commodity,
packaging, transportation and freight, warehouse, labor and other
input costs and other economic conditions, our reliance on contract
manufacturers and service providers, competitive and governmental
factors outside of our control, such as pandemics or epidemics,
adverse global macroeconomic conditions, including relatively high
interest rates, instability in financial institutions and a
recessionary environment, any potential shutdown of the U.S.
government, and geopolitical events or conflicts, including the
military conflicts in Ukraine and the Middle East and trade
tensions between the U.S. and China, our ability to maintain our
listing on the New York Stock Exchange, failure to adequately
protect our intellectual property rights or infringement on
intellectual property rights of others, potential liabilities,
costs from litigation, claims, legal or regulatory proceedings,
inquiries or investigations, and completion of customary annual
audit procedures that may cause our business, strategy or actual
results to differ materially from the forward-looking statements.
We do not intend and undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
law. Investors are referred to our filings with the U.S. Securities
and Exchange Commission for additional information regarding the
risks and uncertainties that may cause actual results to differ
materially from those expressed in any forward-looking
statement.
About Zevia
Zevia PBC, a Delaware public benefit corporation designated as a
“Certified B Corporation,” is focused on addressing the global
health challenges resulting from excess sugar consumption by
offering a broad portfolio of zero sugar, zero calorie, naturally
sweetened beverages. All Zevia® beverages are made with a handful
of simple, plant-based ingredients, contain no artificial
sweeteners, and are Non-GMO Project verified, gluten-free, Kosher,
and vegan. Zevia is distributed in more than 37,000 retail
locations in the U.S. and Canada through a diverse network of major
retailers in the grocery, drug, warehouse club, mass, natural,
convenience and ecommerce channels.
(ZEVIA-F)
(1) Adjusted EBITDA is a non-GAAP
financial measure. See below for a discussion of how we define and
calculate this measure.
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version on businesswire.com: https://www.businesswire.com/news/home/20250113685259/en/
Investors Greg Davis Zevia PBC 424-343-2654
Greg@zevia.com
Reed Anderson ICR 646-277-1260 Reed.Anderson@icrinc.com
Zevia PBC (NYSE:ZVIA)
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