• Revenue: $29.1 million in Q4 2024, a 37% increase year-over-year.
• Net Income: $7.2 million in Q4 2024.
• Full Year Revenue: $99.6 million, a 19% growth year-over-year.
• Full Year Net Income: $8.6 million, compared to a net loss of $4.9 million in 2023.
• Cash Flow from Operations: $12.1 million in 2024.
• Cash Balance: $44.7 million with no debt at year-end 2024.
• Gross Margin: Improved by 150 basis points to 62.5% in Q4 2024.
• E-commerce Sales: $17.3 million in Q4 2024, a 30% increase year-over-year.
• NIAGEN Ingredient Sales: $5.3 million in Q4 2024, a 96% increase year-over-year.
• Selling and Marketing Expense: Improved 90 basis points to 29.9% of net sales in Q4 2024.
• General and Administrative Expenses: Decreased by $4.4 million in Q4 2024.
• Operating Income: $7.1 million in Q4 2024, compared to a $200,000 operating loss in Q4 2023.

• Warning! GuruFocus has detected 2 Warning Signs with DMGGF.

Release Date: March 04, 2025

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

Positive Points

• ChromaDex Corp (NASDAQ:CDXC) reported record revenues of $29.1 million for Q4 2024, marking a 37% increase year-over-year.
• The company achieved a net income of $7.2 million in Q4 2024, contributing to a full-year net income of $8.6 million, a significant turnaround from a net loss in 2023.
• ChromaDex Corp (NASDAQ:CDXC) ended the year with $44.7 million in cash and no debt, indicating strong financial health.
• The e-commerce channel experienced robust growth with net sales of $17.3 million, a 30% increase year-over-year.
• The NIAGEN ingredients business saw a 96% increase in net sales year-over-year, driven by strong demand for both food-grade and pharmaceutical-grade products.

Negative Points

• Supply chain issues delayed the availability of pharmaceutical-grade NIAGEN by two to three months, impacting sales.
• The company faces challenges from competitors making false claims and infringing on patents, which could affect market share.
• There is a need for more regulatory action from the FDA and FTC to prevent misleading practices by competitors.
• General and administrative expenses are expected to increase by approximately $5 million to $6 million in 2025 due to business growth investments.
• The company anticipates potential impacts from tariffs on international business, although they expect these to be minimal.

Q & A Highlights

Q: Could you talk about the stick pack product, its pull-through on Amazon or your website, and any pricing details? A: The stick pack contains 300 milligrams per pack and includes indolent for fiber benefits. We haven't emphasized it much, but sales have begun to increase over the last couple of quarters. We plan to initiate a marketing campaign in 2025, targeting younger consumers and those in the exercise cohort. - Robert Fried, CEO

Q: Can you clarify the $1.3 million adjustment on royalties for the fourth quarter and the expected second payment? A: The $1.3 million is from the Elysium settlement, not a royalty adjustment. The second payment is expected by the end of March. The royalty adjustment relates to Dartmouth, where we reversed $3 million, which will not reoccur. - Ozan Pamir, CFO

Q: What are the expectations for the NO-PARK study results for Parkinson's disease? A: The study is double-blinded, and we expect data compilation by the end of the third or beginning of the fourth quarter. However, public release depends on factors like publication submissions. The last participant will complete the study in June. - Robert Fried, CEO

Q: Could you expand on the drivers of strong e-commerce performance in the fourth quarter? A: We've seen improvements in Shopify performance and general increased awareness of NAD, partly due to the launch of our NIAGEN IV business and significant publicity for ChromaDex and TRU NIAGEN. - Robert Fried, CEO

Q: What are the plans for NIAGEN IV and injections, and how confident are you in the supply chain? A: We expect to double the number of clinics offering NIAGEN IV by the end of the year. The pharma-grade supply chain is different from food-grade, and while there are always risks, we've resolved past issues and expect to meet demand. - Robert Fried, CEO

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