Arcadia Biosciences Inc Q4 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : All right. Thanks for taking my questions. First, on the fourth quarter and full-year gross profit and gross margin side-- without the income statement on the press release, I'm having a hard time putting this together. Can you just lay out what the gross profit and gross margin was in both Q4 and on a full-year basis, please?

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : Okay, great. And then, okay, I can back that out. So, you know, from when you talk about the outlook for '24, double-digit revenue growth, but TJ, you commented that given some of the portfolio shifts, I expect margins to come down a bit. Can you talk about your expectations for gross profit improvement from 2023 to 2024?

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : Got it. Okay. That's helpful. Thank you. So, turning to the comments you made on trying to recognize some royalty revenue and partnering with the wheat supply chain and working with the larger food manufacturers. Especially working with the supply chain was something that had been tried, a couple of years ago. And, you know, not just at Arcadia, but industry-wide, it's been a real challenge for these kind of novel, enhanced nutrition varieties to really find their way into the supply chain with these big players. Can you talk about the conversations that you're having today and give us a sense that these-- large, -- wheat companies are really serious about engaging with, technology like you've developed?

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : Okay. Great. Very good. On GoodWheat, a question on GoodWheat, a question on Zola, and then I'll get back in queue here. In GoodWheat, you know, you're six months now into the launch of Pancake Mix. I'm wondering if you can talk about kind of the performance of these new products today versus kind of the performance of pasta six months in after you launched them. Are you, realizing revenue synergies now that you've got more products in line or is kind of the ramp over the first six months kind of similar today as it was when you started GoodWheat a couple of years ago now?

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : Can you really tell on anything on Mac and Cheese. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 28, 2024 / 8:30PM, RKDA.OQ - Q4 2023 Arcadia Biosciences Inc Earnings Call

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : Okay. Very good. Thank you. And then one last one for me, and Zola, you talk about expanding distribution, new SKUs coming online here. You also, in your latest investor presentation layout, target of expanding this from a 4% ACV in 2022 to 40% in 2025. Can you comment on kind of what that number was exiting '23 and then collectively how all these dynamics will improve that number. How much that number will be improved in 24?

Question: Ben Klieve - Lake Street Capital Markets LLC - Analyst : Got it. Very good. Okay. I appreciate you taking my questions. I'll get back in queue.

Question: Dipesh Patel - H.C. Wainwright & Co - Analyst : Hi, Stan. Hi, TJ. This is Dipesh on behalf of Ram Selvaraju at HC Wainwright. I've got a couple of questions with regards to revenue, and then just one or other on the strategic review process. So the first one, what do you consider the most valuable and fastest-growing product line from the GoodWheat franchise? Would you say it's Mac and Cheese, Qukcakes, or pasta?

Question: Dipesh Patel - H.C. Wainwright & Co - Analyst : Got it. And then I guess a follow-up question on the GoodWheat distribution channel. Which one would you say appears to be most profitable at this point?

Question: Dipesh Patel - H.C. Wainwright & Co - Analyst : Okay. And then just a couple more. What innovative strategies can the company use to boost revenue growth in the coming quarters?

Question: Dipesh Patel - H.C. Wainwright & Co - Analyst : Great. That's helpful. And then last question from me, when does the company plan to complete the strategic review process?

Question: Dipesh Patel - H.C. Wainwright & Co - Analyst : Got it. Thank you for taking my questions.