NASDAQ$VITL

Vital Farms Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a strong quarter with revenue growth and increased profitability.

Vital Farms reported a strong third quarter with a 20% increase in net revenue to $110.4 million and net income of $4.5 million. The company is raising its full year Adjusted EBITDA forecast, reflecting confidence in its business trajectory and long-term potential.

  • Net revenue increased by 20.0% to $110.4 million compared to the prior year period.
  • Net income was $4.5 million, a significant increase from $0.7 million in the prior year quarter.
  • Gross profit reached $36.7 million, representing 33.2% of net revenue.
  • Adjusted EBITDA was $9.3 million, compared to $5.2 million in the prior year quarter.

Headline financials

Total Revenue

$110M

Previous: $92M+20.0%
EPS (adj)

$0.10

Previous: $0.02+400.0%
Adjusted EBITDA

$9.3M

Previous: $5.2M+78.8%
Capital Expenditures

-$9.14M

Previous: -$6.9M-32.5%
Free Cash Flow

-$4.62M

Previous: -$6.18M+25.3%
Net Income

$4.52M

Previous: $723K+525.6%
Operating Income

$5.23M

Previous: $2.02M+158.3%
Gross Profit

$36.7M

Previous: $29.5M+24.3%
Cash & Equivalents

$56.8M

Previous: $18.8M+201.6%
Total Assets

$250M

Previous: $207M+21.0%
Stock-Based Comp

$1.82M

Previous: $1.57M+15.7%

Revenue & EPS history

Vital Farms · Revenue · Quarterly

$110M

Q3 2023+20%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Vital Farms expects net revenue of more than $465 million for fiscal year 2023 and Adjusted EBITDA of more than $40 million. Capital expenditures are projected to be in the range of $11 million to $16 million.

Tailwinds

  • Net revenue is expected to exceed $465 million for the full fiscal year 2023.
  • The company anticipates the highest single net revenue period in its history in the fourth quarter.
  • Adjusted EBITDA is projected to be more than $40 million for the full fiscal year 2023.
  • The company is delivering double-digit volume growth.
  • The company continues to gain share and expand profit margins.

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.
  • The company has begun to lap the top-line benefits from commodity egg supply constraints due to avian influenza.

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

-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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