NASDAQ$BYND

Beyond Meat Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Beyond Meat's Q2 2023 performance was marked by mixed results, with revenue decline offset by operational efficiency gains.

Beyond Meat reported a 30.5% decrease in net revenues to $102.1 million for Q2 2023, driven by weak category demand and a decrease in volume of products sold. However, the company saw improvements in gross profit and reductions in operating expenses and cash consumption.

  • Net revenues decreased by 30.5% year-over-year to $102.1 million.
  • Gross profit improved to $2.3 million, with a gross margin of 2.2%.
  • Net loss decreased to $53.5 million, or $0.83 per share, compared to $97.1 million in the year-ago period.
  • The company expects a modest return to year-over-year top-line growth in the third and fourth quarters of 2023.

Headline financials

Total Revenue

$102M

Previous: $147M-30.5%
EPS (adj)

-$0.83

Previous: -$1.53+45.8%
Capital Expenditures

-$7.14M

Previous: -$42M+83.0%
Free Cash Flow

-$60.6M

Previous: -$139M+56.4%
Net Income

-$53.5M

Previous: -$97.1M+44.9%
Operating Income

-$53.8M

Previous: -$89.7M+40.1%
Gross Profit

$2.27M

Previous: -$6.16M+136.9%
Cash & Equivalents

$211M

Previous: $455M-53.6%
Total Assets

$969M

Previous: $1.22B-20.5%
Stock-Based Comp

$7.75M

Previous: $10.3M-24.8%

Revenue & EPS history

Beyond Meat · Revenue · Quarterly

$102M

Q2 2023-30.5%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Beyond Meat · $102M total across 4 segments · Q2 2023

  • U.S. Retail
    $48.5M-38.5%
  • International Foodservice
    $20.9M-0.9%
  • International Retail
    $20M-15.6%
  • U.S. Foodservice
    $12.8M-45.4%

Forward guidance

The Company expects net revenues to be in the range of approximately $360 million to $380 million, representing a decrease of approximately 14% to 9% compared to 2022. Gross margin is expected to be in the mid to high single-digit range. Operating expenses are expected to be $245 million or less. Capital expenditures are expected to be in the range of $20 million to $25 million.

Tailwinds

  • Gross margin, including the positive impact of the Company’s change in accounting estimates for the useful lives of its large manufacturing equipment implemented in the first quarter of 2023, is expected to be in the mid to high single-digit range.
  • Operating expenses are expected to be $245 million or less.
  • Capital expenditures are expected to be in the range of $20 million to $25 million.
  • Management remains firmly focused on achieving cash flow positive operations, including increased cost containment.
  • The company expects meaningfully reduced cash consumption for the balance of the year.

Headwinds

  • Net revenues are expected to be in the range of approximately $360 million to $380 million, representing a decrease of approximately 14% to 9% compared to 2022.
  • The Company's operating environment continues to be affected by uncertainty related to macroeconomic issues, including softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession.
  • Softer demand in the plant-based meat category
  • High Inflation
  • Rising interest rates, and ongoing concerns about the likelihood of a recession

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.0%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-2.0%

Avg return

30 days after

38%

12 / 32 earnings

Positive

+35.1%

Q1 2019

Best reaction

-20.3%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.2%-23.7%-32.0%
Q4 2025+3.2%+25.2%+38.8%
Q3 2025-9.8%-19.4%-11.9%
Q1 2025-8.7%-1.2%+30.7%
Q4 2024-10.7%-9.3%-11.8%
Q3 2024-8.5%-17.4%-28.7%
Q2 2024+23.2%+11.3%+11.7%
Q1 2024-15.1%-3.9%-8.3%
Q4 2023+31.9%+31.1%+11.1%
Q3 2023-2.6%-8.3%+30.4%
Q2 2023-16.8%-17.5%-27.3%
Q1 2023-16.7%-12.7%-1.5%
Q4 2022+10.4%+4.3%-4.9%
Q3 2022+9.1%+19.4%+14.2%
Q2 2022+12.4%+8.8%-31.2%
Q1 2022-17.4%-10.3%-24.7%
Q4 2021-6.1%+0.0%+2.6%
Q3 2021-16.4%-14.5%-34.2%
Q2 2021+0.9%+3.1%-6.4%
Q1 2021-8.9%-9.8%+19.7%
Q4 2020-4.3%-8.1%-14.7%
Q3 2020-20.3%-20.5%-12.7%
Q2 2020-1.2%-2.1%-3.4%
Q1 2020+32.6%+40.3%+43.4%
Q4 2019-20.3%-15.2%-41.2%
Q3 2018+2.9%+5.2%-2.0%
Q3 2019-18.7%-18.7%-19.0%
Q2 2018-17.1%-24.6%-31.8%
Q2 2019-17.1%-24.6%-31.8%
Q1 2018+12.2%+34.8%+32.3%
Q4 2018+12.2%+34.8%+32.3%
Q1 2019+35.1%+22.8%+48.8%
Q4 2017
Q3 2017

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