Niagen Bioscience (NAGE) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached $22.7 million, up 12% year-over-year, with $18.6 million from Tru Niagen, up 10% year-over-year; net loss was near breakeven at $15,000, and adjusted EBITDA improved to $1.6 million from $0.2 million.

• Ended the quarter with $27.9 million in cash and no debt, reflecting strong fiscal discipline and positive cash flows.

• Operating expenses declined by $0.7 million year-over-year, mainly due to lower general and administrative costs.

• Launched Niagen Plus/IV and injectable products for healthcare practitioners, and introduced NAD+ Test Kits.

• Received FDA Orphan Drug and Rare Pediatric Disease Designations for nicotinamide riboside chloride for Ataxia Telangiectasia; new European patent for Parkinson's disease.

Financial highlights

• Net sales increased to $22.7 million from $20.3 million in Q2 2023, driven by higher B2B, Tru Niagen, and ingredient sales.

• Gross margin was 60.2%, down slightly from 60.8% in Q2 2023 due to business mix changes.

• Operating loss improved to $0.3 million from $2.3 million in Q2 2023; net loss was $15,000 (breakeven EPS).

• Adjusted EBITDA rose to $1.6 million from $0.2 million year-over-year.

• Cash balance at quarter-end was $27.9 million, with no debt.

Outlook and guidance

• 2024 full-year net sales growth expected between 10%-15% year-over-year, reflecting delayed commercialization of Niagen Plus.

• General and administrative expenses projected to decrease by $1.5 million year-over-year, with some investments shifted to 2025.

• Expect continued strong gross margins and increased investments in sales, marketing, and R&D.

• Management expects current cash and cash equivalents plus cash from net sales to be sufficient for at least the next twelve months.

• Additional capital may be sought to fund long-term strategic objectives or operating plans beyond the next year.