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Oct 01, 2022
Beyond Meat Q3 2022 Earnings Report
Beyond Meat experienced a challenging quarter with a sharp revenue decline and gross margin pressure due to macroeconomic factors, while implementing measures to achieve cash flow positive operations.
Key Takeaways
Beyond Meat reported a 22.5% decrease in net revenues to $82.5 million for the third quarter of 2022, with a gross loss of $14.8 million. The company's net loss was $101.7 million, and adjusted EBITDA was a loss of $73.8 million. The company is implementing measures to achieve cash flow positive operations within the second half of 2023.
Net revenues decreased by 22.5% year-over-year to $82.5 million.
Gross profit was a loss of $14.8 million, with a gross margin of -18.0%.
Net loss was $101.7 million, or $1.60 per common share.
Adjusted EBITDA was a loss of $73.8 million, or -89.5% of net revenues.
Beyond Meat
Beyond Meat
Beyond Meat Revenue by Segment
Revenue by Segment
U.S. Retail Revenue
CapyFin.comU.S. Foodservice Revenue
CapyFin.comInternational Retail Revenue
CapyFin.comInternational Foodservice Revenue
CapyFin.com Forward Guidance
The Company expects 2022 net revenues to be in the range of approximately $400 million to $425 million, representing a decrease of approximately 14% to 9% compared to 2021. They are targeting cash flow positive operations within the second half of 2023.
Positive Outlook
- Targeting cash flow positive operations within the second half of 2023.
- Reduction-in-force expected to result in approximately $27 million in cash operating expense savings over the next twelve months.
- Additional approximately $12 million in non-cash savings related to previously granted, unvested stock-based compensation.
- Expected to recognize approximately $3 million of one-time non-cash savings related to the reversal of previously expensed, unvested stock-based compensation in the third and fourth quarters of 2022.
- Focus on key drivers of the business.
Challenges Ahead
- 2022 net revenues are expected to be in the range of approximately $400 million to $425 million, representing a decrease of approximately 14% to 9% compared to 2021.
- Incur one-time cash charges of approximately $4 million in connection with the reduction-in-force.
- Operating environment continues to be affected by near-term uncertainty related to macroeconomic issues, including inflation and rising interest rates.
- Increasing concerns about the likelihood of a recession.
- Challenges related to labor availability and supply chain disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income