Jones Soda Revenue Grows 49% YoY Boosted By THC-Infused Beverages Sales, Net Loss Higher As It Supports Growth Plans

Author: Nina Zdinjak | August 14, 2024 07:42am

Jones Soda Co. (CSE:JSDA) (OTCQB:JSDA) released its financial results Tuesday for the second quarter ended June 30, 2024, revealing revenue of $7.2 million, up by 49% year-over-year. The company reported growth across all its lines of business.

The Seattle-headquartered THC-infused soda maker also disclosed a higher net loss of $1.6 million or $0.02 loss per share, compared to a net loss of $1.0 million or $0.01 per share in the second quarter of 2023. Jones Soda attributes the increase in net loss to the rise in total operating expenses to support the company's growth plans.

"As we continue our transition to a high-growth beverage company, I believe our momentum is building," stated David Knight, president and CEO of Jones Soda. "I'm pleased to report another consecutive quarter of exceptional revenue growth of 49% compared to the same quarter last year and healthy gross margin expansion of 340 basis points. We have been investing heavily in research and development, retail engagement, and marketing efforts to continue supporting our product expansion initiatives. As a high-growth beverage company, we believe it remains vital for our Company to stay on top of emerging consumer trends and react accordingly. While this increased costs for the quarter, we are investing in initiatives that we believe will result in future revenue growth and remain committed to delivering profitable results over the long term."

The earnings report follows up on the expansion of the company's crossover Mary Jones cannabis brand with the debut of its products in Michigan and the introduction of a new line of cannabis-infused shooters in California.

Read Also: Weed Drinks Maker Jones Soda Closes Second Tranche Of Private Placement Offering, One More To Go Ahead Of Q2 Earnings Report

Q2 Financial Summary

• Gross profit as a percentage of revenue increased 340 basis points to 35.8% compared to 32.4%.
• The second quarter of 2024 included approximately $1.2 million in revenue from the company's Mary Jones business compared to approximately $400,000 in the second quarter of 2023.
• Adjusted EBITDA was a loss of ($1.1 million), compared to ($700,000).
• Total operating expenses in the second quarter of 2024 were $4.2 million, or 58.2% of revenue, compared to $2.6 million, or 53.8% of revenue, in the year-ago period. Higher expenses resulted from increased investments focused on product innovation, brand refreshes, and expanded marketing efforts, including initiatives with action sports such as our partnership with Thrill One, to support the company's product expansion. Additionally, Jones Soda did incur a higher amount of legal expenditures related to its Mary Jones business than it did one year ago.
• At June 30, 2024, cash and cash equivalents totaled $1.5 million compared to $3.9 million on December 31, 2023.

Subsequent to June 30, 2024, the company closed a private placement offering of securities and received net proceeds of approximately $3.2 million to further support its growth initiatives and strengthen the balance sheet.

2024 Activity Update

• First national craft soda brand to launch 7.5-ounce cans with Jones Minis, initially featured in 700 Walmart stores across the U.S.
• Launched special release Spiked Jones variety packs celebrating the Fourth of July with co-branded red, white and blue packs.
• Launched Jones+, the company's craft soda with caffeine, in camo cans through a partnership with Fold of Honor.

"I am incredibly excited about the anticipated growth opportunities we have in store for the remainder of 2024 and beyond. Within our Jones Soda Beverage Products division, we've made progress diversifying our offerings through new formats, new branding, and new categories,” Knight continued. “All this combined has already driven strong results, and we believe we are only just getting started. In fact, over the next few months, we are expected to launch Pop Jones, a soda alternative focused on gut health, and Fiesta Jones, a lower-calorie, Latin-inspired soda alternative. We've also seen strong growth within our Mary Jones Products division as we continue launching into new categories and make progress towards our planned geographic expansion."

Price Action

Jones Soda shares closed Tuesday's market session 8.24% higher at $0.46 per share.

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Photo: Benzinga edit of images by Matthew Brodeur on Unsplash and Jones Soda

Posted In: CSE:JSDA JSDA