Q4 2023 Laird Superfood Inc Earnings Call
Operator: Good afternoon. Thank you for attending the Laird Superfood, Inc. 4 quarter 2023 financial results call. My name is Matt, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end.
Good afternoon. Thank you for attending delayed Superfood, Inc. Fourth quarter 2023 financial results call. My name is Matt and I'll be your moderator for today's call all lines have been muted during the presentation portion of the call up an opportunity for questions and answers at the end. If you would like to ask a question. Please press star one on your telephone keypad.
Operator: If you'd like to ask a question, please press star one on your telephone keypad. I'll now like to pass the conference over to our host, Steve Richie, General Counsel with Laird. Steve, please go ahead.
I will now have to pass the conference over to our host Steve Ritchie General Counsel.
Steve. Please go ahead.
Steve Richie: Thank you and good afternoon. Welcome to Laird Superfood's fourth quarter and full year 2023 earnings conference call and webcast. On today's call are Jason Vieth, Laird Superfood's President and Chief Executive Officer, and Anya Hamill, our Chief Financial Officer. By now, everyone should have access to the company's fourth quarter and full year 2023 earnings release filed after today's market closed, which is available on the investor relations section of Laird Superfood's website at www.lairdsuperfood.com. Before we begin, please note that during the course of this call, management may make forward-looking statements within the context of federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks and uncertainties. With that, I'll turn the call over to Jason.
Thank you and good afternoon, welcome to learn Super Foods fourth quarter and full year 2023 earnings conference call and webcast on today's call are Jason That's Super Foods, President and Chief Executive Officer, and arm <unk> Hammer, our Chief Financial Officer.
By now everyone should have access to the company's fourth quarter and full year 2023 earnings release filed after today's market close.
It is available on the Investor Relations section of <unk> website at Www Dot led superfood Dot com before we begin. Please note that during the course of this call management may make forward looking statements within the context of federal Securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties.
That could cause actual results to differ materially from those described in these forward looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks and uncertainties with that I'll turn the call over to Jason.
Jason D. Vieth: Thanks, Steve. Good afternoon, and thank you to everyone who has joined us today. Now that you have all seen our Q4 2023 results, I hope that it is not an overstatement to say that Laird Superfood had a tremendous quarter. During Q4, we hit our team's goal of a financial trifecta. These results represent just the latest steps in what has been a rather steady path of improvement since I first spoke with all of you two years ago. And I'm proud to say that these improvements have allowed us to remove the going concern disclosure from our financial statements. This is a significant vote of confidence in our financial position and outlook and further motivation for our team to ensure that we operate the business as professionally and competently as possible. I'll start with what might be our most noteworthy accomplishment and a quarter full of them.
Thanks Pete.
Good afternoon, and thank you to everyone who is joining us today.
Now that you have all seen our Q4 2023 results I hope that you will agree that it is not enough.
<unk> had a tremendous quarter.
During Q4, we hit our teams call unnatural.
Positive sales growth.
Positive profitability and positive cash flow.
<unk> two of which were first time ever for our company, while trading as a public company.
These results represent just the latest step in what has been a rather steady path of improvement.
First spoke with all of them two years ago.
And I am proud to say that these improvements have allowed us to remove the going concern disclosure.
Yes.
This is a significant vote of confidence in our financial position and outlook.
The motivation for our team to ensure that we operate the business.
<unk> competency as possible.
I'll start with what might be most noteworthy accomplishment in a quarter full of them.
Jason D. Vieth: During Q4 2023, we were able to return our DTC business to plus 10% growth versus the same quarter in 2020. This was accomplished despite decreasing our marketing spend by 54% during the same comparative period, which obviously means that our marketing effectiveness metrics surged once again during Q3. This represents our first quarter of growth in this channel since almost two years ago, after the changes to iOS upended the DTC industry, and was accomplished through more effective targeting and messaging and by highlighting our most relevant products and creating better offerings for bundles and cross-sellers. One key to this accomplishment was the increase in our revenue from subscriptions to 46% of our total B2C net sales, which I would assert demonstrates that consumers are recognizing the benefits of consistently In addition to converting more of our customers to subscribers, we were also successful in Q4 in increasing our net sales from new VTC customers by 76% year over year, driven by our partnership with The Sean Ryan Show and other well-executed top-of-the-funnel marketing activities. I'm also pleased to report that our average GTC order size reached more than $57.
During Q4 2023, we were able to return our DTC business, plus 10% growth versus the same quarter in 2022.
Yes, it was accomplished despite decreasing our marketing spend by 54% in the phone comparative periods, which obviously means that our marketing effectiveness metrics surged once again during Q4.
This represents our first quarter of growth in this channel, it's almost two years ago.
Any changes to ILS compounded the ETP industry.
It wasn't accomplished through more effective targeting and messaging and by highlighting our most relevant product for creating better offerings bundles and cross selling.
One key to this accomplishment was the increase of our revenue from subscription to 46% of our total DTC net sales base.
I would assert demonstrates that consumers are recognizing the benefits from consistently ascend into their health or their nutrition.
And then our coffee Creamers Greens and Adaptogenic mushroom products are a perfect fit for our consumers to create super food have referred to as the healthy daily ritual.
In addition to converting more of our customers and subscribers.
Also successful in Q4, and increasing our net sales, our new DTC customers by 76% year over year.
Driven by our partnership with Sean Ryan show, another well executed top of funnel marketing activities.
I'm also pleased to report that our average DTC order size mix.
More than $57 in Q4.
Jason D. Vieth: Given these metrics, it should not be surprising that our brand affinity remains extremely strong with our customers, with our net promoter score still hovering in the mid 70s and our customer satisfaction score at 4.9 out of 5.0. A large portion of our e-commerce business is also conducted on Amazon. And here I am happy to report that we have continued to make steady progress in returning this business to growth after the challenges created by the quality event that we encountered approximately a year ago. As a result of that event, it took approximately six months to fully withdraw and replenish our coffee creamers on the Amazon platform.
Given these metrics should not be surprising that our brand authority remains extremely strong with our consumers with our net promoter score still hovering in the mid seventies, and our customer satisfaction score of $4 95.
A large portion of our ecommerce business is also conducted on Amazon and here I am happy to report that we have continued to make steady progress in returning this business to growth after the challenges created by the quality of the debt.
Encountered approximately a year ago.
How does that is that it took approximately six months to fully withdraw.
Finish our coffee creamers on the Amazon platform.
Jason D. Vieth: During which time we saw a significant reduction in sales. But in Q4, with our in stock inventory levels restored to normal, we were able to execute our marketing plan on this platform and to restore our path to growth. During Q4, our net sales through Amazon reached $1.76 million. A 38% increase over Q3 of 23, despite a 22% pullback in direct media spend on Amazon during that time. This is a testament to the cohorts that we have established on this platform, which was further aided by a 26% increase in revenue, which now represents nearly a quarter of Laird Superfood's net sales on Amazon. Given the lapping of those 2023 challenges during the first half of this year, we expect to see strong Laird's Superfood growth through Amazon throughout 2020. Turning to our wholesale business. I am pleased to share that we continue to make steady progress in expanding our distribution in this important and strategic channel. To date, our wholesale business has been largely concentrated in the natural.
Each time, we saw a significant reduction in sales.
But in Q4 with our in stock inventory levels restored to normal we were able to execute our marketing plan on this platform and to restore our path to growth.
During Q4, our net sales through Amazon reached $1 $76 million.
38% increase over Q3 of 'twenty three.
Despite a 22% pullback in direct media spend on Amazon during that time.
This is a testament to the cohorts that we had established on this platform.
Was further aided by a 26% increase in revenue from subscriptions, which now represents nearly a quarter later Super foods net sales at Amazon.
Given the lapping of the 2023 challenges during the first half of this year, we expect to see strong secret food growth through Amazon throughout 2024.
Turning to our wholesale business.
I am pleased to share that we continue to make steady progress in expanding our distribution and most importantly, the strategic channel.
To date, our wholesale business has been largely concentrated in the natural channel. While we have continued to make great strides.
Jason D. Vieth: Well, we have continued to make great strides to build out our brand among consumers that are motivated by health and wellness. During 2023, our points of distribution in nationals finished the year up 24% versus the end of 2022, driven by Williams and large national retailers, as well as across smaller independents that are vital to consumers. Specific to Q4, I am pleased to announce that we were successful in securing national distribution with Whole Foods, our fourth shelf-stabilized product, which will complement the full national distribution that we had recently attained on a four-item liquid creamer portfolio. Those items began shipping a few weeks ago and bring us to eight items in distribution within all open stores across. I'm equally pleased to share that we have also had continued success at Sprouts I'm also pleased to share that during Q4, we became the number one brand within the coffee category at Sprout, charging ahead of the light against Bulletproof, Southtown, Deathwish, and all the other brands in this category.
Among consumers that are motivated by health and wellness.
During 2023, our points of distribution in Nashville finished the year up 24% versus the end of 2022.
Driven by wins in large national retailers as well as across smaller independents that are vital to consumers in this channel.
Specific to Q4.
Im pleased to announce that we were successful in securing national distribution with whole foods.
Shelf stable items, which will complement our full national distribution that we had recently.
For item liquid portfolio.
Those items began shipping a few weeks ago and bring us to eight items in distribution within all of this of course across the country.
I'm equally pleased to share that we have also had continued success at sprouts farmers market, who has been a great partner to our brand and where we now have 22 items in distribution, representing one of our most complete build outs at any retailer in the country.
Im also pleased to share that during Q4, we became the number one brand in the coffee category at sprouts.
Starting ahead of a white OLED.
Our approach.
Down death wish and all the other brands in this category.
Jason D. Vieth: We believe that this is just the start of exciting things to come as we continue to build our brand strength and share our health and wellness portfolio with consumers across the globe. As we look forward from here, we will execute an expansion strategy to additional categories in the natural channel and begin to put emphasis on growing our distribution in the conventional channel, where we currently have very little distribution and a very large. Along with the success that we are having commercially comes the recognition that we couldn't achieve any of this if we didn't have a supply chain that was as flexible, responsive, and adaptive as we do. Last year, our supply chain was able to shut down our own facility in Oregon.
We believe that this is just the start of the exciting things to come as we continue to build our brand strength and share our health and wellness portfolio with consumers across the country.
As we look forward from here.
Executed an expansion strategy into additional categories in the natural channel and begin to put emphasis on growing our distribution in the conventional channel where we currently have very little distribution had a very large market.
Along with the success that we're having commercially comes the recognition that we couldnt achieve any of this if we didn't have a supply chain that with its flexible responsive and adaptive as we do.
Last year, our supply chain was able to shut down our own facility in Oregon.
Jason D. Vieth: Identify COPAC and distribution partners and move our entire business in just around three months. Our supply chain team operated nearly flawlessly through a quality event in the first half of last year, quickly replenishing our raw material inventories and keeping most of our key suppliers supplied throughout that challenging And now, with our powder products fully transitioned to an asset-wise supply chain model, and with our liquid creamer transition behind us, we were able to achieve over a 40% gross margin during. Our supply chain is flexible and agile and is built to support our future growth. Going forward, we continue to expect our gross margin to remain in the high 50s. A focus on cost management extends beyond the supply chain to operational expenses. During Q4, we reduced our total year-over-year adjusted OPEX. 6.1 million and 3.7 million, representing a decrease of 38% before 2020.
Densify co pack and distribution partners and move our entire business over the span of just around two months.
Our supply chain team operating nearly flawlessly from a quality of that in the first half of last year.
Replenishing, our raw material inventory, keeping most of our key suppliers to fly throughout that challenging stretch.
And now with our powder products fully transition to an asset light model and with our <unk>.
Creamer transition behind US, we were able to achieve over a 40% gross margin during Q4.
Our supply chain is flexible and agile and is built to support our future growth.
Going forward, we continue to expect our gross margin to remain in the high threes.
Our focus on cost management extends beyond the supply chain for our operational expenses as well.
During Q4, we reduced our total year over year adjusted Opex.
$6 1 million $3 7 million, representing a decrease of 38% before 2023.
Jason D. Vieth: This was accomplished by a broad-based reduction in our op-ed spend, which we will continue to manage tightly as we go. And finally, I want to share a few thoughts on our cash position, which increased in Q4 2023 by $280,000. States that working capital needs and planning that we do not anticipate generating positive cash flow in every quarter. However, we do believe that with our planned growth rate in 2024 and beyond, you may soon be generating cash to support our operation. I also want to reiterate that we were able to remove the going concern disclosure. We are proud of this recent change and believe that with our forecasted growth profile and gross margin outlook, the Laird Superfood business is now in a position to carry an improved financial profile in the future. And now, I will turn the call over to Anya to discuss the fourth quarter results with you. Thank you, Jason.
This was accomplished by a broad based reduction in our Opex.
We will continue to manage tightening as we go forward.
And finally I want to share a few thoughts on our cash position, which increased from Q4 2023 by $280000.
Based on our working capital needs and planned investments, we do not anticipate generating positive cash flow in every quarter.
However, we do believe that with our planned growth rate in 2024 and beyond we may soon be generating cash to support our operations.
I also want to reiterate that we were able to remove the going concern disclosure filings we.
We are proud of this frequent change I believe that with our forecasted growth profile gross margin outlook.
<unk> business is now positioned to carry an improved financial profile in the future years.
And now let me turn the call over to have yet to discuss our fourth quarter results are detailed.
Thank you Jason.
Anya Kochetova Hamill: Med sales were $9.2 million in the fourth quarter of 2023, an increase of 2.6% as compared to $9.0 million in the prior year period and flat compared to the third quarter of 2023. As Jason discussed, both the e-commerce and wholesale channels delivered growth in the fourth quarter. eCommerce contributed 66% of total net sales and increased 2% year over year, led by DTC growth of plus 10%. These improvements were in part offset by a year-over-year decline in Amazon sales of 12%, a substantially narrower decline than in previous quarters and driven by a 59% Amazon media spend reduction as we resolve to improve product stability on this platform. Wholesale contributed 34% of total net sales and increased 3% year over year, reflecting continuous growth in club and distribution expansion in the natural channel, as well as product velocity improvement behind updated packaging, which launched in the second quarter of 2020.
Net sales were $9 2 million in the fourth quarter of 2023, and an increase of two 6% as compared to 9 million.
In the prior year period, and flat to the third quarter of 2023 as Jason discussed both the e-commerce and wholesale channels delivered growth in the fourth quarter.
E Commerce contributed 66% of total net sales increased 2% year over year led by DTC growth of plus 10%.
These improvements were in part offset by year over year decline in Amazon up 12%.
Substantial and narrower decline than in previous quarters.
Driven by a 15, 9% Amazon media spend with us as we have results to improve profitability on this platform.
Wholesale contributed 34% of total net sales.
And increased 3% year over year.
<unk> continued growth in club and distribution expansion in the natural channel as well as product velocity improvement behind updated packaging, which launched in the second quarter up 2023.
Anya Kochetova Hamill: Gross margin in the fourth quarter rose to 40.4%, which is a 45 point improvement on the year over year basis due to charges related to the sister's exit activities in the fourth quarter of 2022. On an adjusted basis, gross margin improved 21 points year over year and 10 points sequentially versus Q3 of 2023, driven by the continuous benefits of transitioning to third-party co-manufacturing and distribution. Q4 gross margin of 40% is a milestone that supports our expectation that we can deliver margins in the upper 30s in the coming quarter. Operating expenses in the fourth quarter of 2023 totaled $3.7 million, a decrease of $11.6 million compared to $15.3 million in the prior year period.
Gross margin in the fourth quarter rose to 44%.
Which is a 45 point improvement on a year over year basis.
Due to charges related to exit activity in the fourth quarter up 2022.
On an adjusted basis gross margin improved 21 point year over year, and 10 points sequentially versus Q3 of 2023, driven by continued benefits of transitioning to a third party co manufacturing and distribution.
Q4 gross margin of 40% is a milestone that supports our expectation that we can deliver margins in the upper 30 in the coming quarters.
Operating expenses in the fourth quarter of 2023 totaled $3 7 million a decrease of 11 6 million compared to $15 3 million in the prior year period.
Anya Kochetova Hamill: This reduction was driven by lapping expenses related to our exits from sisters in the fourth quarter of 2022. Excluding one-time charges, operating expenses were reduced $2.4 million, primarily due to lower marketing costs resulting from strategic cuts of inefficient spend and lower people costs and other general and administrative expenses following their restructuring activities in 2022. I am pleased to report that in the fourth quarter, for the first time in the company's history, we achieved positive net income and positive cash flow. Net income as reported was 0.1 million in the fourth quarter of 2020, an improvement of $15.7 million versus the prior year period. The net cash add in the quarter was $0.3 million compared to a cash burn of $3.2 million in both the third quarter of 2023 and the fourth quarter of 2022.
This reduction was driven by lapping expenses related to our exit from sisters and the fourth quarter of 2022.
Excluding one time charges operating expenses were reduced to $4 million, primarily due to lower marketing costs.
Also from a strategic cuts of inefficient spend and lower people costs and other general and administrative expenses following our restructuring activities.
2022.
I'm pleased to report that in the fourth quarter for the <unk>.
First time in the company's history, we achieved positive net income and positive cash flow.
Net income as reported.
<unk> 1 million in the fourth quarter, 2023, and an improvement of $15 7 million versus the prior year period net cash in the quarter was <unk> 3 million compared to cash burn of $3 2 million in both the third quarter of 2023.
In the fourth quarter of 2022.
Jason D. Vieth: These results were driven by margin expansion and a significant reduction in general and administrative costs, demonstrating the strong progress that we have made in managing costs and pushing the business towards profitability in future quarters. However, we did not expect this to occur in a perfectly linear manner. We ended Q4 2023 with $7.7 million in cash and no debt as we continue to conservatively manage our balance. We now project that we will have enough cash to fund our operations into 2026, and our annual report on Form 10-K will not contain the words "go" and "concern" that was included in our prior quarterly report. Furthermore, after having had conversations with several lenders regarding our ability to put in place an asset-backed loan, we are optimistic that such a vehicle will be available to us should we decide that we would prefer additional funding to support our operations or growth.
These results were driven by margin expansion and significant reductions in general and administrative costs demonstrating the strong progress we have made in managing costs.
And pushing the business towards profitability in future quarters.
Although we do not expect this to occur in the particular linear manner.
We ended Q4 2023 with $7 7 million of cash and no debt as we continue to conservatively manage our balance sheet.
We now project that we will have enough cash to fund our operations into 2026.
Our annual report on Form 10-K will not contain the going concern language that was included in our prior quarterly reports.
Further after having had conversations with several vendors.
Our ability to put in place an asset backed loan we are optimistic that such a vehicle if available to us should we just saw.
Alright, then we would prefer additional funding to support their operations or grow.
Jason D. Vieth: The changes we have made to our business model have significantly improved the underlying economics and strengthened our competitive position. As we go forward, we will continue to focus on maximizing our most profitable commercial growth opportunities while maintaining strict emphasis on continuing costs to drive the business towards profitability and maintain our cash position to support our future operations and other opportunities that may emerge. Our full year 2024 guidance is as follows. Net sales are expected to be in the range of approximately $38 to $40 million, representing growth of 10 to 15% compared to 2023. Gross margin is expected to expand to approximately 37 to 40%, excluding any one-time extraordinary charges, representing a 7 to 10 point improvement versus 2020. With that, I'll turn the call back to Jason. Thanks, Anya. I know that I seem to be saying another quarterly, but I want to reiterate that I believe that the future of our Laird Superfood business has never looked brighter. This time around, please indulge me while I share my thesis for that conviction.
The changes we have made to our business model have significantly improved the underlying economics.
Strengthened our competitive position as.
As we go forward, we will continue to focus on maximizing our most profitable commercial growth opportunities, while maintaining strict emphasis on continued cost to drive the business.
With profitability and maintain our cash position to support our future operations and other opportunities that may emerge.
Our full year 2024 guidance is as follows.
Net sales are expected to be in the range of approximately $38 million to $40 million representing growth of 10%, 15% compared to 2023.
Gross margin is expected to expand to approximately.
<unk>, 37% to 40%, excluding any onetime extraordinary charges.
Representing a seven to 10 point improvement versus 2023.
With that I'll turn the call back to Jason.
Thanks Tanya.
I know that I seem to see it every quarter, but I want to reiterate that I believe that the future of our layered superfood business has never looked brighter. This time around please indulge me, while I share my thesis for that conviction.
Operator: First, our net promoter score and customer satisfaction scores are indicative of our incredible brand strength and the trust placed on our brand by Laird Superfood consumers and should be the envy of virtually any major food company today. Second, our product portfolio is well-positioned for the health and wellness trends that continue to grow in importance, both within the U.S. and internationally, as demonstrated by our Q4 volume and sales. Additionally, our gross margin is now in line with many of the premier food companies in our industry and can provide us with strong cash generation as we continue to grow our business. And finally, I would wager that our organization is as skilled, competent, motivated, and engaged as any similarly sized company in the industry. This concludes our prepared remarks. Operator, we are now ready to open the call to questions. If you'd like to ask a question, please press star followed by one on your telephone keypad. If for any reason you'd like to remove that question, please press the star followed by two. Again, to ask a question, press star one.
First our net promoter score and customer satisfaction scores are indicative of our incredible brand strength and.
And the trust placed on our brands by layered superfood consumers and should be the envy of virtually any major food companies today.
Second our product portfolio is well positioned for the health and wellness trends that continue to grow in importance both within the U S and internationally as demonstrated by our Q4 volume and sales growth.
Importantly, our gross margin is now in line with many of the Premier food companies in our industry.
<unk> provide us with strong cash generation as we continue to grow our business.
And finally.
I would wager that our organization is that.
Competent motivated and engaged as any similarly sized company in the industry.
This concludes our prepared remarks.
Operator, we are now ready to open the call to questions.
If you would like to ask a question. Please press star followed by wondering your telephone keypad. If for any reason you might like to remove your question. Please press star followed by two.
To ask a question press star one.
Operator: As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. The first question is from the line of Bobby Burleson with Canaccord Genuity. Your line is now open.
As a reminder, if youre using a speakerphone please pick up your handset before asking your question.
We will pause briefly as questions are registered.
First question is from the line of Bobby Burleson with Canaccord Genuity. Your line is now open.
Robert Joseph Burleson: Hi, thanks for taking my question. Yeah, congratulations on turning the corner here towards a much better performance. So it's really exciting to see. So my first question is just, when we think about the growth for this year that you guided to, what kind of, you know, growth would be required to support that guidance. You know, it sounds like online shopping is coming back nicely. And obviously, their spend is a lot lower these days with DTC. So I was just curious.
Alright, thanks for taking my questions.
Hey, congratulations on turning the quarter pure towards.
Much better performance.
Really exciting to see.
So I guess my first question is just.
We think about the growth for sure this year that you guided to.
What kind of Opex.
Growth would be required to support that guidance it sounds like.
Online is coming back nicely and obviously you spent a lot lower.
These days DTC, so I'm just curious.
Jason D. Vieth: You know, are you spending more to access conventional energy, or can you really drive a lot of operating costs here? Yeah, hey, Bobby. Great question. Thanks, by the way; I appreciate it. We're really excited, obviously, about this quarter and where this came in. Yeah, hey, good to talk to you again. So look, I mean, the reality is, and you and I have discussed this as well, so I know this won't be a surprise to you, but we built this team really to be able to scale from here, and we don't believe we need substantially any more OPEX. There are a couple of line items that are going to be variable in the P&L, and the broker commission is one of those.
Are you spending more to access conventional or can you really drive a lot of operating cost reductions here.
Yeah, Hey, Bobby.
Great question. Thanks by the way appreciate it we're really excited obviously about this quarter and where that.
Hey Man, Yes, Hey could you could you talk to you again.
So look I mean, the reality is.
And you and I have discussed this as well so I know this won't be a surprise to you, but we built this team really to be able to scale from here and we don't believe we need really substantially anymore. Opex. There is there are a couple of line items that are going to be variable in the P&L.
The broker Commission is one of those so as we continue to grow that piece of the business will pay additional brokerage fees or on the flip side as we continue to grow Amazon. There is a variable component selling cost to that as well. So we will have to scale. Those two sales organizations as we grow but really bobby to be honest our organizations.
Jason D. Vieth: So, as we continue to grow that piece of the business, we'll pay additional brokerage fees, or, on the flip side, as we continue to grow Amazon, there is a variable component selling cost for that as well. So we will have to scale those two sales organizations as we grow. But really, Bobby, to be honest, our organization is built to be able to carry not only this organization but the piggy bar, or sorry, not only this brand, but the piggy bar business as well. And frankly, as I've told them many times, we're in a position to do that. Now, with everything that we've done, or if we were to make an acquisition at any point, or if we were to scale the business significantly from here over the course of the next 12-18 months, we don't really have to make any additional investments to do that. That's great. It's really, really great to hear.
Altogether to carry.
Not only this organization but.
Keep our sorry, not only this brand, but the <unk> business as well and frankly as I pulled them. Many times were in position that.
Now with everything that we've done that if we were to make an acquisition at any point or if we were to scale the business significantly from here over the course of the next 12 to 18 months, we don't really have to make any additional investments to do that.
That's great.
Robert Joseph Burleson: And then, Um, you know, quick follow-up, uh, on where the growth's coming from. Uh, obviously, you guys highlighted Daily Greens and Performance Mushrooms as part of that DTC growth. And I'm wondering, kind of, the overall perception of the brand.
Great to hear and then.
A quick follow up.
Just on where the growth's coming from.
Obviously.
You guys highlighted clearly, creating some performance mushrooms as part of that DTC.
And I'm wondering kind of.
The overall perception of the brand does that did you guys start to move more into.
Jason D. Vieth: Do you guys start to move more into, uh, other kind of performance-centric or, um, you know, things like ready-to-drink shakes or, you know, are there other adjacent categories that kind of reflect, you know, Laird's athletic prowess and something that's more performance-oriented, where the brand would really kind of explode? Yeah, you know, that's certainly a question that we've been discussing as a team over the last couple of months. We've been in a position that, as you guys know, from the last couple of years, we really had to turn around the business where the business was on a path to running out of cash pretty quickly a couple of years ago. And so the last two years have really been focused around rebalancing the portfolio, getting our mix right, and then obviously resetting the cost base, not only in terms of the manufacturing distribution costs but all of the GNA and marketing as well.
Other kind of performance centric or.
Yes things like.
Ready to drink shakes or.
Are there other adjacent categories that kind of.
Reflect.
Layered athletic prowess, and something Thats more performance oriented where the brand would really kind of explode.
Yes.
That's certainly a question that we've been discussing as a team over the last couple of months, we've been in a position that.
As.
As you guys know from from the last couple of years. So we really have to turnaround the business where the the.
The business was on a path to running out of cash pretty pretty quickly a couple of years ago and so the last two years have really been focused around rebalancing the portfolio getting our mix right and then obviously resetting the cost base.
Not only in terms of the manufacturing and distribution costs, but all of the G&A and marketing as well and so we're really close to that I would say, Bob we're still refining it and see some opportunities from here as we go forward as well within that core business, but but certainly now we are in position to do two things that we were not in position to do.
Jason D. Vieth: And so we're really close to that, I would say, Bobby. We're still refining it, and we see some opportunities from here as we go forward as well within that core business. But certainly now we're in a position to do two things that we were not in a position to do previously, you know, because we had gross margins, as you'll recall, that were so anemic that we couldn't expand the business without losing more money. Well, that's done.
Previously because we had gross margins as youll recall that were so anemic.
We couldnt expand the business without losing more money well that's done we now have a gross margin that is approaching best in class manufacturers within the food space and more we sell the more cash we dropped to the bottom line and so the sales team is dead set focus as on bricks and mortar opportunities and we've had as I mentioned on that call and I know the town.
Jason D. Vieth: We now have a gross margin that is approaching best-in-class manufacturers within the food space. The more we sell, the more cash we drop on the bottom line. And so the sales team is dead set on focusing as, you know, on bricks and mortar opportunities.
Jason D. Vieth: And we've had, as I mentioned on that call, and I know the sound quality wasn't great, hopefully it's better now, but we've had tremendous calls throughout 2023 that we believe will result in additional distribution going forward, just as we always do. But we've really been able to be aggressive with those sales calls because we now have the margin to support expansion. The other thing to get more directly to your question that we're really starting to focus on now is how do we expand and continue to grow our legacy within superfood? For a little while there, we became a creamer brand. And we do still have a great creamer business, and, frankly, the best creamer product on the market, the cleanest, best tasting, most nutritious product on the market.
Quality wasn't great hopefully, it's better now, but we've had tremendous calls throughout 2023 that we believe will result in additional distribution going forward just as we always do but.
We've really been able to be aggressive.
With those sales calls because we now have the margin to support expansion. The other thing to get more directly to your question that we're really starting to focus on now is how do we expand and continue to grow our legacy within Super foods for a little while there we became a cream of brand and we do still have a great creamer business and frankly, the best creamer product on the market.
Cleanest best tasting, most nutritious product on the market, but we hope to have this.
Robert Joseph Burleson: But we also have this amazing greens product, which I would tell you is the best tasting, most nutritious product in that space as well. And we have these performance mushrooms, mushroom products, and adaptogenic mushroom products that have taken off. And it's really been those three products, in particular, with support from a number of other categories, including bars, but the three products, being greens, adaptogenic mushrooms, and creamers, that are carrying the bulk of the weight for the portfolio. But in doing that, it broadened our shoulders to really be that superfoods brand, not just a creamer brand, but a superfoods brand, and does open up the opportunity to get to some That's fantastic. I know there are other callers, so I'll jump back into the queue.
Amazing Green's product, which I would tell you is the best tasting most nutritious product in that space as well and we have these performance mushrooms mushroom products <unk> mushroom products.
They have taken off and it's really been those three products in particular with support from a number of other categories, including bars, but those three products being Greens adaptogenic mushrooms creamers.
That are carrying the bulk of the weight for the portfolio, but it broad and in doing that it broadened our shoulders to really be that Super foods brand not just a super creamer brand, but it's Super Foods brand and does open up the opportunity to get to some of those more performance based categories and RTD and others are certainly on that list Bobby.
That's fantastic.
I know, there's other colors, so I'll jump back into the queue. Thank you.
Operator: Thank you. Yeah, thanks for your question. Thank you for your question. The next question is from the line of Alex Fuhrman with Craig Howell. Hey guys, thanks for taking my question here and congratulations on the many milestones that you hit this quarter. One I'd like to ask about is the return to positive e-commerce growth, which certainly seems like a big milestone. And if I'm interpreting your comments correctly, it sounds like growth on LairdSuperfood.com was even especially strong. Can you talk about what's been driving that? I know you mentioned some of your newer products helping to lift average order size. But has that been the primary driver? It looks like you guys have been emphasizing subscriptions more as well. Any color on that would be helpful, and what we might expect to see on LairdSuperfood.com this year and beyond.
Yes, thanks for your questions.
Thank you for your question next question is from the line of our experiment with Craig Hallum Line is now open.
Hey, guys. Thanks for taking my question here.
Congratulation on the many milestones that you hit here.
In the quarter, one I'd like to ask about is the return to positive e-commerce growth, which certainly seems like a big milestone or and if I'm interpreting your comments correctly it sounds like growth on layered super food Dot com.
Whats, even especially strong.
Can you talk about what's been driving that I know you mentioned some of your newer products, helping to lift average order size has that been the primary driver. It looks like you guys have been emphasizing subscriptions more as well just any color on that would be helpful and.
What we might expect to see on.
And layered superfood dot com into the.
This year and beyond.
Yes.
Alex Joseph Fuhrman: Hey Alex, nice to hear from you. Yeah, thanks. Great question.
Hey, Alex nice to hear from you.
Yes, Thanks, Great question.
Jason D. Vieth: And I certainly wanted to be able to talk more about this. I could not be more proud of our DTC business. It is, in fact, that LSF or lairdsuperfood.com platform that has returned to 10% growth. That's the first growth in a couple of years.
Ken I wanted to be able to talk more about this I could not be more proud of our DTC business. It is in fact that LSF, our alerts superfood dot com platform.
It returned to a 10% growth that's the first growth in a couple of years we have.
Jason D. Vieth: We have a new leader in that business. We have new I mean, you guys know, we've changed a lot of the organization. We have a new marketing leader. And we have a new DTC channel leader as well. And that combination has proven to be really powerful.
Our new leader on that business with new I mean, you.
You guys know we've changed a lot of the organization that we have a new marketing leader.
And we have a new DTC channel leader as well and that combination is proven to be really powerful.
Jason D. Vieth: We've done, I'll tell you a couple of things in particular that have really helped to drive that. One is that same broadening of our portfolio that I mentioned a moment ago with Bobby. It's really not only the creamers in the last month, but the creamers, the greens, and the adaptogenic mushrooms that are doing really well. And that's a function of a couple of things. First, we've really reengaged Laird and Gabby as, you know, as real as the real brand representatives of Laird Superfood. I would say that's only natural.
We've done I'll tell you a couple of things in particular that have really helped to drive that one is that the same broadening of our portfolio that I mentioned, a moment ago with Bobby.
It's really not only been the creamers in the last months, but the creamers. The Greens knee adaptogenic mushrooms that are doing really well and that's a function of a couple of things first is we've really re engaged layered and gabby.
As as real as the real brand Representatives.
Super food.
I would say that's only naturally you would think why did we ever not why did we ever go away from that and I think just as I mentioned before a couple of years ago. There was some truth to that.
Jason D. Vieth: You would think, why did we ever not, you know, why did we ever go away from that? And I think, just as I mentioned before, a couple of years ago, there was some drift back to that. And that's completely changed. In doing so, we've really seen a great response from the activations that Laird and Gabby are doing. It's always our highest ROI and highest ROAS material marketing collateral that we put out, so that's been really great. We also entered a partnership with Sean Ryan. Sean is a podcaster, has a tremendous show, and one of the largest followings in the country and the world.
And that's completely changed in doing that we've really seen a great response from the activations that layered and gather youre doing its always our highest.
<unk> highest ROE as material marketing collateral that we put out so that's been really great. We also entered a partnership with Sean Ryan.
Shawn right so Sean in the podcast or has a tremendous show one of the largest followings in the country in the world.
Jason D. Vieth: And Sean is not only an advertiser for, you know, an advertising platform with us; he's our partner. He partnered with us, became an investor in the business. He is a big advocate of mushrooms, adaptogenic mushrooms, and the benefits for folks that have had traumatic brain injuries, as well as everybody for their general health, and in becoming a spokesperson, trusted spokesperson, for the adaptogens.
Sean it's not only an advertiser or an advertising platform with us.
Sean as our partner.
We are partnered with us became an investor into the business.
He has a big advocate of.
Mushrooms, adaptogenic mushrooms and the benefits.
For folks that debt.
<unk> had traumatic brain injuries as well as everybody for their general health and in becoming a spokesperson trusted spokesperson for the adapt <unk>.
Jason D. Vieth: He's just been an unbelievable partner to us as well. We've really enjoyed working with Sean, and we have had tremendous benefits. So those two have been really large. And the third factor that I'd add to that is our DTC team has just done incredible work to turn consumers into customers, and customers into subscribers. And as a result, we have almost 50% of our revenue in that DTC channel now coming through subscriptions, which obviously pay off over the long term in terms of the stickiness and, you know, the amount of volume that consumers continue to order, especially when they consider how beneficial it is to their health on a regular basis. So those three factors have been the key driver, and we anticipate that they're going to be long-lived. That's terrific!
It's been an unbelievable partner to us as well.
We enjoyed working with Shawn and have had tremendous benefit.
So those two have been really large in the third factor that I would add to that is our DTC team has just done incredible work to turn.
It turn consumers into customers and customers the subscribers.
And as a result, we have almost 50% of our revenue in that DTC channel now coming through subscription.
Which obviously pay off over the long term in terms of the stickiness.
The amount of volume that consumers continue to order, especially when they consider how beneficial it is to their health on a regular basis. So those three factors have been the key driver and we anticipate that they're going to be long living tourists.
That's terrific really appreciate that thanks, Jason and then if I could ask also just on the returns and discount it looks like that was the lowest level.
Alex Joseph Fuhrman: I really appreciate that. Thanks, Jason. And if I could also ask you about returns and discounts, you know, it looks like that was the lowest level in the fourth quarter in more than a year. Where is that improvement coming from? Is that more, I know you had some kind of higher-profile incidents with some of your wholesale customers and things like that. Is that kind of coming from the direct channel as well? And do you expect those improvements to continue into this year? Hi Alex, this is Anya.
In the fourth quarter.
More than a year.
Where is that improvement coming from is that more I know you had some kind of higher profile incidence.
With some of your wholesale customers and things like that is that kind of coming from the direct channel as well and do you expect those improvements to continue into this year.
Yes.
Hi, Alex This is on you and thank you for the question. So I can address that yes, you're right.
Anya Kochetova Hamill: Thank you for the question. So I can address that. Yes, you're right. It was the lowest in the year.
It's the lowest in the year however.
Anya Kochetova Hamill: However, you know, like we talked about in the last couple quarters, Q2 and Q3 were high because we chose to invest in growth for the retail business. And so we're now starting to pull that back. And we're just still in Q4. So part of it, part of the savings are coming from our wholesale business, and they'll continue kind of at that optimized level of spend. Not quite linear, not quite, maybe as low as Q4, but in that range.
Like we talked in the last couple of quarters Q2 and Q3.
Were high because we chose to invest into growth for our retail business and so we're now starting to pull that back and we did so in Q4.
Part of it saving part of the savings are coming from our wholesale.
Business.
The new kind of at that optimized level of spend now.
Not quite linear not quite maybe as low as Q4, but in that range.
Anya Kochetova Hamill: DTC also, as we have an optimized mix between trade and marketed investments, there's some savings coming from that business as well, although not nearly as much as from retail. So I think you can expect to see a pretty similar range and meet scenes in terms of discounts going forward in 24. Okay, that's really helpful.
BTC also as we optimize.
Between trade and marketing investments there is some savings coming from that business as well, although not nearly as much as from retail.
I think you can expect to see pretty similar.
A range in mid teens in terms of discounts going forward in 'twenty four.
Okay. That's really helpful. Thank you on yet.
Alex Joseph Fuhrman: Thank you, Anya. Thank you for your question. Next question is from the line of J.P. Wallin with Roth Capital Partners. Your line is now open, and Jason and Anya, thanks for taking the question. If I could maybe just start with sort of the revenue guidance for next year. You know, just wanna kind of talk from a high level.
Thank you for your question.
Next question is from the line of <unk> <unk> with Roth Capital Partners. Your line is now open.
Yes.
Thanks for taking the question.
If I could maybe just start with sort of the revenue guidance for next year.
Just wanted to kind of talk from a high level.
Unknown Executive: [inaudible] The revenue growth and as we think about kind of the drivers of that growth for next year. Maybe if you could just talk about sort of what and I don't know how much you'll want but maybe get you in there if you'll have some more retail doors coming online in the middle of the year, but anything you kind of just want to say about how that revenue will build. Yeah, hey, JP.
Yeah.
The New road and.
As we think about kind of the.
The drivers of that growth for next year, maybe if you could just talk about sort of what I don't know how much you want to say, but maybe.
There if you will have some more retail doors coming online in the middle of the year, but anything you've kind of just wanted to say about how that revenue will build.
Yeah, Hey, JP good to talk to you again.
Jason D. Vieth: Good to talk to you again. So I'll start off; I'll give you a couple of thoughts on that, and then I'm gonna hand it over to Anya.
So I'll start off I'll give a couple of thoughts on that and I'm going to hand, you over to Anya.
Jason D. Vieth: She can talk to the cadence a little bit, but I want to give you some of those drivers and where our comp is. So I'm going to go sequentially through three different channels and platforms, starting with Amazon, because that's a really attractive opportunity for us. I mentioned on the call a couple of minutes ago on the pre-record that last year, we had a bit of a trough in Amazon because we had that quality event Q1. We had to withdraw all of our inventory from Amazon, and that means you have to withdraw from their DCs, and then they have to go out to all the micro DCs that they send to so that you can get that order in 24 hours or so.
She can talk to the cadence a little bit, but I wanted to give you some of those drivers and where our confidence comes from so I'm going to go sequentially through.
Through three different channels and platforms, starting with Amazon because thats right.
That's a really attractive opportunity for us.
Mentioned on the call a couple of minutes ago on the pre record debt.
Last year, we had a we had a bit of a trough in Amazon because we had that quality of that in Q1, we had to withdraw all of our inventory out of Amazon and that means you have to withdraw from their Dcs and then they have to go out to all the micro Dcs, but they centers. So that you can get that order in 24 hours.
Jason D. Vieth: So it's a slow process, and we had to pull it all back before they let us put anything else back in because it all had the same UTC number. As a result, we lost somewhere around five, maybe six months of creamer sales on that platform. And it wasn't, I mean, I can't say it was zero, but we really lost a lot of business. And as a result of that, when you lose that piece of business, you lose the opportunity to cross-sell as well.
So.
It's a slow process and we had to pull it all back before they let us put anything else back in because it all had the same.
Few numbers so.
Number so as a result, we lost somewhere around five maybe six months of Kramer sales.
In that.
That platform and it wasn't I mean, I can't say zero, but we really lost a lot of business and as a result of that when you lose that pizza business you lose the opportunity to cross sell as well so.
Jason D. Vieth: And so I would tell you that there's just a tremendous lapping opportunity on Amazon as a result of that. On top of that, we had very positive Amazon sales growth going on even before running into that. So as you saw coming into Q4, we were closing the gap quickly despite significantly less spend. And as we were in 2023, we had pulled back the spend.
I would tell you that there's just a tremendous lapping opportunity on Amazon as a result of that on top of that we have very positive Amazon sales growth going on even before running into that so as you saw coming.
Coming into Q4, we were closing the gap quickly despite significantly less spend and as we were in 2023, we had pulled back the spend and so youre going to see now in 2024, just a tremendous opportunity for us to grow that category or that platform rather.
Jason D. Vieth: And so you're going to see now, in 2024, just a tremendous opportunity for us to grow that category or that platform, rather. And then to finish out the online business or the e-com business, the DTC opportunity for us that is really driven off those same fundamentals that I just shared with Alex's question. It just looks great. I know it's been a rough road for a couple of years, and frankly, it's been a rougher road for a number of our competitors and continues to be. So I think we're blessed to have a really great team in this space. They have really honed their ROAS metrics to make sure we're only making smart investments now that return at least our bare minimum acceptable ROAS, which is profitable at this point for us. We also have Laird and Gabby, and we have the Sean Ryan partnership.
And then in that.
Finish out the online business with E comm business, the DTC opportunity for us.
Really driven off the same fundamentals that I just shared with Alex's question.
Just looks great I know, it's been a rough road for a couple of years and frankly, it's been a rougher road for a number of our competitors and continues to be so I think we're blessed to have a really great team in this space they have really honed.
<unk> ROE as metrics to.
To make sure we're only making smart investments now that return.
At least to our bare minimum acceptable Roe at <unk>.
Which is profitable at this point for us.
We also have layered in Gabby and we have the Sean Ryan partnership and with those two.
Jason D. Vieth: And with those two sets of highly influential individuals, Laird and Gabby, I guess three individuals, Laird and Gabby separately, but then Sean Ryan as well, we feel we can really invest behind those three and continue to make hay in that category, or on that platform rather. And then finally, wholesale. And I didn't leave it for last because this is our biggest opportunity by far. We're still in just a fraction of the doors within natural, and we're in almost no doors. And I know it's not really no doors, but we have very few distribution points within the conventional space today.
Wiley influential individuals layered learning Gabby.
So I guess three individuals celerity Gabby.
Separately, but then Sean Ryan as well, we feel we can really invest behind those three and continue to make hay in that category.
And that's in our platform rather.
And then finally wholesale.
And I didn't leave it for last because this is our biggest opportunity by far we're still just a fraction of the doors within natural and we're in almost no doors and I know, it's not really no doors, but I think we have very few distribution points within the conventional space today.
Jason D. Vieth: So within natural first, I mentioned that we now have eight items in Whole Foods nationally. We were in just maybe 12 months ago; we had a couple of liquid items, three, I guess, liquid items, and we had three powders regionally, if I remember correctly. Now we have eight items nationally, so this is a big distribution change for us year over year. We believe there's significant opportunity to continue to expand within Whole Foods as we go forward into other categories with our portfolio that's now really been displayed in a best-in-class fashion at Sprouts. I mentioned on the call that we now have 22 items in distribution at Sprouts. 20 of those are in full distribution.
So within natural first I mentioned that we now have key items and hopefully nationally.
We were we were in just maybe 12 months ago, we had a couple of liquid items.
Three I guess liquid items, and we had three powders regionally.
Remember correctly now we have eight items nationally.
This is a big distribution change for us year over year.
We believe there is significant opportunity to continue to expand within whole foods as we go forward in that other segment or into other categories.
With our portfolio, that's now really Ben.
I'd tell you displayed in a best in class fashion at Sprouts, I mentioned that on the call that we now have 22 items in distribution at Sprouts 20 of those are in full distribution.
Jason D. Vieth: We have a few more that we're working on now that we believe really belong within the Sprouts stores, and then we're continuing to do the same with a new brokerage that we've hired. We continue to do the same thing now to expand out into all the independents and the smaller chain stores. So it's just a really exciting opportunity within Natural to continue to close those distribution gaps. But then the opportunity, the big opportunity, the much larger opportunity even is on the conventional side, where we really haven't put any effort in the past. And so, you know, the addressable markets and the opportunity, the white space that we have in distribution in that conventional space is absolutely enormous, JP.
We have a few more that we're working on now that we believe really belong within the sprouts stores and then we're continuing to do the same with a new brokerage that we've employed we continue to do the same thing now.
Two to expand out into all the independents and the smaller chain stores I was just a really exciting opportunity within natural to continue to close those distribution gaps.
But then the opposite the big opportunity that much larger opportunity then is on the conventional side, where we really haven't put any effort in the past and so.
The addressable market and the opportunity the white space that we have in distribution in that in that.
Conventional space.
Jason D. Vieth: And so, you know, these numbers ask what gives me confidence. They're numbers that I think are very attainable for us. This year, we're committed to those numbers. And I think as we go forward, we'll continue to dig for upside.
Is absolutely enormous JP and so these numbers ask what gives me confidence. They are numbers that I think are very attainable for us. This year, we're committed to those numbers and I think as we go forward, we'll continue to dig for upside.
Unknown Executive: Great. Thank you. I'm going to be back next week. Join us. I'm Steve Richie.
Operator: This is the Foxfooter News Edition, with Alex Burleson and Anya Hamill, Steve Richie, Laird Superfood, and Laird Superfood. I appreciate all that. If I could just do one follow-up, and maybe this one's more for Anya, but there was the comment about the ABL during the earlier remarks, and I just wanted to kind of follow up and make sure I'm thinking about it correctly, but was the commentary there more just that it was a vote of or as we think about kind of expanding some of the expansion and some of the growth next year. Is that something that you think is going to be put in? year, either build inventory or kind of fulfill some of that demand.
Great. Thank you.
Thank you.
Plenty of color. So I appreciate all that if I could just do one follow up and maybe this one's more for on your butt.
There was the comment about the ABL during.
Earlier remarks.
Just wanted to.
Kind of follow up and make sure I am thinking about it correctly.
Wouldn't be commentary there more just that it was a vote of confidence in the future.
Or.
As we think about kind of expanding some of the Oh.
SKU expansion and some of the growth next year is that something that you think it's going to be put into use.
Either build inventory or kind of fulfill some of that demand.
Anya Kochetova Hamill: Yeah, thanks for that question, JP. Yeah, we think that we have enough cash to get us through 2024 and 2025 and, hopefully, beyond. However, the point of that comment was to signal that we do have additional liquid resources or liquidity in case we need it for working capital expansion or any other opportunities that may arise. If we choose to do so, those funds are there based on conversations that we've had with several lenders.
Yeah. Thanks for that question JP on yes.
Yes, we think that we have enough cash to get us through 2024, and 25 and hopefully beyond.
However, the point of that comment was too.
<unk> signaled that we do have additional liquid resources or liquidity in case, if we need it.
We're working capital expansion or any other opportunities that may arise if we choose to sell.
Those funds are there based on conversations that we've had with several lenders that would be available.
Yes.
Anya Kochetova Hamill: Okay, yep. Thank you. Thank you for your question. There are no additional questions waiting at this time. So, as a reminder, type one on your telephone keypad.
Okay.
Thank you for taking my question.
Going forward.
Thank you thank.
Thank you for your question.
There are no additional questions waiting at this time, so as a reminder, the star one on your telephone keypad.
Operator: There are no additional questions waiting at this time, so I'll now pass the call back to the management team for any closing remarks. I just want to thank everybody once again for jumping on. This is by far the best performance that we've had as a public company, and we're really excited for the path from here as we go forward. We'll, obviously, be back talking with you guys in just a few weeks, given how late the annual call ended up. And as we wrap up Q1, I look forward to getting back with everybody to share the continued progress on this story. So thanks a lot. That concludes the conference call. Thank you for your participation. You may now disconnect your line. Have fun. I look forward to getting back with everybody to share the continued progress on this story.
There are no additional questions waiting at this time, so I'll now pass the call back to the management team for any closing remarks.
Just.
Want to thank everybody once again for jumping on this is by far the.
I'd say the best performance that we've had as a public company and we're really excited for the path from here.
As we go forward, we'll obviously be back talking with you guys and just a few weeks given how late.
The annual call ended up and as we wrap Q1.
Look forward to getting back with everybody to share the continued progress on this story. So thanks much.
That concludes the conference call. Thank you for your participation you may now disconnect your lines.
I look forward to getting back with everybody to share the continued progress on the story so.