NASDAQ$VITL

Vital Farms Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Achieved record net revenue and Adjusted EBITDA, driven by strong execution and consumer demand.

Vital Farms reported a strong start to 2023, achieving record net revenue of $119.2 million, a 54.7% increase year-over-year, and a net income of $7.2 million for the first quarter ended March 26, 2023. Volume grew 26% during the period, driven by increases at both new and existing customers, as well as pricing increases.

  • Net revenue increased by 54.7% to $119.2 million compared to the prior year.
  • Net income was $7.2 million, a significant improvement from the net loss of $1.5 million in the prior year quarter.
  • Gross profit was $42.7 million, representing 35.8% of net revenue.
  • Adjusted EBITDA reached $13.9 million, or 11.6% of net revenue, compared to $0.5 million in the prior year.

Headline financials

Total Revenue

$119M

Previous: $77.1M+54.7%
EPS (adj)

$0.16

Previous: -$0.04+500.0%
Adjusted EBITDA

$13.9M

No prior period
Capital Expenditures

-$1.8M

Previous: -$1.69M-6.9%
Free Cash Flow

$5.35M

Previous: -$3.22M+266.0%
Net Income

$7.15M

Previous: -$1.54M+565.5%
Operating Income

$10.9M

Previous: -$4.09M+366.7%
Gross Profit

$42.7M

Previous: $21.7M+96.6%
Cash & Equivalents

$25.8M

Previous: $24.8M+4.3%
Total Assets

$227M

Previous: $191M+18.6%
Stock-Based Comp

$2.24M

Previous: $1.3M+72.9%

Revenue & EPS history

Vital Farms · Revenue · Quarterly

$119M

Q1 2023+54.7%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Management maintains guidance for fiscal year 2023, expecting higher net revenue growth rates and gross margin in the first half than in the second half of the year.

Tailwinds

  • Net revenue of more than $450 million is expected for the full fiscal year 2023.
  • Higher net revenue growth rates are anticipated in the first half of the year.
  • Gross margin is expected to be higher in the first half of the year.
  • Adjusted EBITDA of more than $30 million is expected for the full fiscal year 2023.
  • Adjusted EBITDA in the first half is likely to exceed Adjusted EBITDA in the second half of the year.

Headwinds

  • Dynamic operating environment is likely to persist throughout fiscal 2023.
  • Guidance assumes no additional significant disruptions to the supply chain.
  • Guidance assumes no significant disruptions to customers or consumers.
  • Guidance assumes no issues from adverse macroeconomic factors.
  • Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income (loss) without unreasonable effort due to the unavailability of reliable estimates for income taxes, among other items.

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 Q1 2023

Historical avgQ1 2023

-1.7%

Avg return

Earnings day

-1.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

41%

12 / 29 earnings

Positive

+21.7%

Q1 2024

Best reaction

-20.8%

Q1 2027

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-20.8%-28.2%-16.3%
Q4 2025-10.9%-18.1%-47.0%
Q3 2025+16.6%+7.8%-2.2%
Q1 2025-9.3%-4.9%-14.0%
Q4 2024-9.1%-8.1%-12.3%
Q3 2024-16.2%-22.9%-3.9%
Q2 2024-12.2%-12.0%-15.7%
Q1 2024+21.7%+23.7%+39.9%
Q4 2023+7.9%+10.5%+33.8%
Q3 2023+2.7%+5.9%+22.6%
Q2 2023+17.6%+15.6%+12.5%
Q1 2023+18.6%+20.4%+13.2%
Q4 2022+1.0%-3.9%-5.1%
Q3 2022+4.3%+11.5%+13.4%
Q2 2022+12.3%+15.1%+5.3%
Q1 2022+0.1%-14.0%-22.6%
Q4 2021-6.9%-0.3%+5.2%
Q3 2021+13.6%+16.7%+6.5%
Q2 2021+2.5%+2.5%-4.7%
Q1 2021-3.2%+1.1%+7.3%
Q1 2020-3.2%+1.1%+7.3%
Q4 2020-14.1%-20.5%+2.6%
Q4 2018-14.1%-20.5%+2.6%
Q3 2020-14.7%-15.7%-26.3%
Q3 2019-14.7%-15.7%-26.3%
Q2 2020-4.8%+1.2%+9.3%
Q4 2019-4.8%+1.2%+9.3%
Q2 2019-4.8%+1.2%+9.3%
Q1 2019-4.8%+1.2%+9.3%

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