NASDAQ$VITL

Vital Farms Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a strong second quarter with increased revenue and net income.

Vital Farms reported a strong second quarter in 2023, with a 28.4% increase in net revenue to $106.4 million and a net income of $6.7 million. The company's performance was driven by higher prices and volume gains, leading to an increase in gross profit and operating income. Management raised the full year net revenue and Adjusted EBITDA forecast.

  • Net revenue increased by 28.4% to $106.4 million compared to the prior year.
  • Net income was $6.7 million, a significant increase from $0.2 million in the prior year.
  • Gross profit reached $37.8 million, representing 35.5% of net revenue.
  • Adjusted EBITDA was $11.3 million, or 10.7% of net revenue, compared to $3.7 million in the prior year.

Headline financials

Total Revenue

$106M

Previous: $82.9M+28.4%
EPS (adj)

$0.15

Previous: $0.00+3118.9%
Adjusted EBITDA Margin

10.7%

No prior period
Capital Expenditures

-$4.29M

Previous: -$4.42M+2.8%
Free Cash Flow

$2.39M

Previous: -$4.22M+156.7%
Net Income

$6.68M

Previous: $199K+3258.3%
Operating Income

$8.04M

Previous: $721K+1015.0%
Gross Profit

$37.8M

Previous: $24.9M+51.6%
Cash & Equivalents

$47.7M

Previous: $22.1M+115.9%
Total Assets

$236M

Previous: $200M+18.1%
Stock-Based Comp

$1.45M

Previous: $1.63M-11.5%

Revenue & EPS history

Vital Farms · Revenue · Quarterly

$106M

Q2 2023+28.4%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

For fiscal year 2023, Vital Farms expects net revenue of more than $465 million and Adjusted EBITDA of more than $35 million. Capital expenditures are projected to be in the range of $16 to $21 million.

Tailwinds

  • Net revenue is expected to be more than $465 million.
  • Adjusted EBITDA is projected to be more than $35 million.
  • The company anticipates higher net revenue growth rates.
  • The company anticipates higher gross margin.
  • Capital expenditures are expected to be between $16 million and $21 million.

Headwinds

  • Guidance assumes no additional significant disruptions to the supply chain.
  • Guidance assumes no additional significant disruptions to customers.
  • Guidance assumes no additional significant disruptions to consumers.
  • Guidance assumes no issues from adverse macroeconomic factors.
  • Second half of year have lower net revenue growth rates and gross margin than the first half of the year.

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

-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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