Jones Soda (JSDA) Q2 2024 earnings summary

Executive summary

• Achieved highest Q2 revenue since 2009, with 49% year-over-year growth to $7.2 million, driven by Mary Jones, Nuka-Cola, and Canadian sales.

• Gross margin improved to 35.8%, up 340 basis points from the prior year, reflecting higher-margin product mix and pricing actions.

• Net loss widened to $1.6 million in Q2 2024 from $1.0 million in Q2 2023, mainly due to increased investments in R&D, marketing, and administrative expenses.

• Closed a $3.7 million private placement in July 2024 and secured a $2 million revolving credit facility to support growth and operations.

• Share price and market cap have more than doubled since June 2023.

Financial highlights

• Q2 2024 revenue: $7.2 million (+49% YoY); six months ended June 30, 2024: $12.2 million (+40.1% YoY).

• Gross profit increased to $2.6 million, with gross margin at 35.8% versus 32.4% a year ago.

• Q2 net loss was $1.6 million (-$0.02 per share), compared to $1 million (-$0.01 per share) in Q2 2023.

• Adjusted EBITDA for Q2 was negative $1.1 million, versus negative $0.7 million last year.

• Cash and cash equivalents at June 30, 2024: $1.5 million; working capital: $5.2 million.

Outlook and guidance

• Management expects continued margin improvements and profitability as new product launches scale, including Pop Jones and Fiesta Jones.

• Five new product lines launching in the second half of 2024, with national rollouts planned into 2025.

• Cash, projected sales, private placement proceeds, and credit facility are expected to fund operations for at least 12 months.

• Emphasis remains on expanding Mary Jones brand and optimizing product mix for profitability.

• Focus remains on achieving profitable growth and long-term shareholder value.