• Revenue: $25.6 million, a 31% increase year over year.
• Net Income: $1.9 million.
• Adjusted EBITDA: $2.9 million, marking the sixth consecutive quarter of positive adjusted EBITDA.
• Cash Flow: Total positive cash flow of $5.1 million.
• Cash and No Debt: Ended the quarter with $32.4 million in cash and no debt.
• Niagen Ingredient Sales: $14.8 million for the third quarter, representing a 16% growth year over year.
• Gross Margin: Improved to 63.5%, up 210 basis points from 61.4% in the third quarter of 2023.
• Selling and Marketing Expenses: Improved to 27.5% of net sales compared to 31% in the third quarter of 2023.
• Operating Income: $1.6 million, an improvement from a $1.1 million loss in the third quarter of 2023.
• Net Cash Provided by Operations: $3.5 million for the nine months ended September 30, 2024.
• Full Year Revenue Growth Outlook: Adjusted to approximately 15% year over year growth.

• Warning! GuruFocus has detected 8 Warning Sign with NWPX.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ChromaDex Corp (NASDAQ:CDXC) achieved record results with $25.6 million in revenue, marking a 31% increase year over year.
• The company reported a net income of $1.9 million, highlighting its sixth consecutive quarter of positive adjusted EBITDA.
• ChromaDex Corp (NASDAQ:CDXC) ended the quarter with $32.4 million in cash and no debt, demonstrating strong financial health.
• The launch of Niagen Plus, including Niagen IV, has been successful, with rapid expansion to over 100 clinics and plans to reach 300 clinics soon.
• Gross margins improved to 63.5%, driven by changes in product mix and the launch of pharmaceutical-grade Niagen.

Negative Points

• The Hong Kong retail market's decline impacted sales through Watsons, leading to a year-over-year decline in this segment.
• General and administrative expenses increased due to higher legal costs associated with the Niagen Plus launch and patent defense litigation.
• The company faces supply constraints for pharmaceutical-grade Niagen, which could limit the growth of the Niagen Plus initiative.
• There is uncertainty regarding the FDA's feedback on the pre-IND submission for nicotinamide riboside as a treatment for Ataxia Telangiectasia.
• ChromaDex Corp (NASDAQ:CDXC) has not yet provided a forecast for 2025, indicating potential uncertainty in future growth projections.

Q & A Highlights

Q: Could you talk about the formulations for Niagen IV and injectable, and the number of clinics offering these? A: Currently, Niagen IV is available in 100 clinics, and we expect it to be in about 300 within the next few weeks. Most people receive 500 mg doses, which take 15 to 20 minutes to administer, compared to 2 to 3 hours for NAD IV. We also offer injections, typically 100 mg, with some receiving 50 mg. The injection SKU is growing rapidly. Robert Fried, CEO

Q: Can you clarify the cash flow figures and the $6.4 million mentioned? A: The $6.4 million refers to the improvement in net income. The cash provided by operations was $3.5 million, compared to $6.5 million last year. The difference is due to changes in working capital, including trade receivables and accounts payable, offset by the net income improvement. Robert Fried, CEO

Q: What is the pricing for a single dose of Niagen IV, and how are these sales categorized? A: Clinics generally charge between $500 and $700 for a 500 mg dose of Niagen IV. These sales are categorized under ingredient sales as pharmaceutical grade. Ozan Pamir, CFO

Q: What is the biggest restraint on growing the number of clinics offering Niagen Plus? A: The main restraint is the supply of pharmaceutical-grade Niagen. It takes time to produce due to the stringent testing and sterilization processes required for FDA approval. Robert Fried, CEO

Q: How does the dosage of Niagen Plus compare to True Niagen capsules in terms of impact? A: Niagen IV delivers many times the potency of the dose compared to capsules because it goes directly into the bloodstream. We are still studying the long-term differential and will provide data in the future. Robert Fried, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.