NASDAQ$BYND

Beyond Meat Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Beyond Meat experienced a decrease in net revenues and a net loss, but gross margin improved due to lower manufacturing and materials costs. The company is undergoing a global operations review to reduce operating expenses.

Beyond Meat reported a decrease in net revenues by 8.7% year-over-year, with net revenues of $75.3 million. The company experienced a net loss of $70.5 million, an improvement compared to the previous year's net loss of $101.7 million. Gross profit was a loss of $7.3 million, but gross margin improved to -9.6% compared to -18.0% in the year-ago period.

  • Net revenues decreased by 8.7% year-over-year to $75.3 million.
  • Gross profit was a loss of $7.3 million, with a gross margin of -9.6%.
  • Net loss improved to $70.5 million, or $1.09 per share, compared to $101.7 million, or $1.60 per share, in the year-ago period.
  • International retail channel net revenues increased 38.8% to $14.2 million.

Headline financials

Total Revenue

$75.3M

Previous: $82.5M-8.7%
EPS (adj)

-$1.09

Previous: -$1.60+31.9%
Capital Expenditures

-$8.57M

Previous: -$60M+85.7%
Free Cash Flow

-$79.1M

Previous: -$162M+51.1%
Net Income

-$70.5M

Previous: -$102M+30.7%
Operating Income

-$69.6M

Previous: -$89.7M+22.4%
Gross Profit

-$7.25M

Previous: -$14.8M+51.1%
Cash & Equivalents

$218M

Previous: $390M-44.2%
Total Assets

$929M

Previous: $1.14B-18.6%
R&D Expense

$9.12M

No prior period
Stock-Based Comp

$6.48M

Previous: $9.25M-30.0%

Revenue & EPS history

Beyond Meat · Revenue · Quarterly

$75.3M

Q3 2023-8.7%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Beyond Meat · $75.3M total across 4 segments · Q3 2023

  • U.S. Retail
    $30.5M-33.9%
  • International Foodservice
    $18.1M+78.7%
  • International Retail
    $14.2M+38.8%
  • U.S. Foodservice
    $12.5M-21.6%

Forward guidance

The company is revising its 2023 full year outlook due to softer than anticipated third quarter results and updated expectations for the balance of the year.

Tailwinds

  • Operating expenses are expected to be approximately $245 million or less, before one-time separation costs and potential savings associated with the Company’s recent reduction in force.
  • Capital expenditures are now expected to be in the range of $10 million to $15 million.
  • Reduction in force, combined with the elimination of certain open positions, is expected to result in approximately $9.5 million to $10.5 million in cash operating expense savings.
  • Additional approximately $1.0 million to $2.0 million in non-cash savings related to previously granted, unvested stock-based compensation which would have vested in 2024.
  • Gross profit for the full year, 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 now expected to be approximately breakeven.

Headwinds

  • Net revenues are now expected to be in the range of $330 million to $340 million, representing a decrease of approximately 21% to 19% compared to 2022.
  • The Company currently estimates that it will incur one-time cash charges of approximately $2.0 million to $2.5 million in connection with the reduction in force
  • Macroeconomic issues, including inflation and rising interest rates
  • Prolonged, weakening demand in the plant-based meat category
  • 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 Q3 2023

Historical avgQ3 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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