Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”),
a leader in plant-based meat, today reported financial results for
its fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial
Highlights1
- Net revenues were $76.7 million, an increase of 4.0%
year-over-year.
- Gross profit was $10.0 million, or gross margin of 13.1%,
compared to a loss of $83.9 million, or gross margin of -113.8%, in
the year-ago period.
- Loss from operations was $37.8 million, or operating margin of
-49.3%, compared to loss from operations of $160.8 million, or
operating margin of -218.2%, in the year-ago period.
- Net loss was $44.9 million, or $0.65 per common share, compared
to net loss of $155.1 million, or $2.40 per common share, in the
year-ago period.
- Adjusted EBITDA was a loss of $26.0 million, or -33.9% of net
revenues, compared to an Adjusted EBITDA loss of $125.1 million, or
-169.9% of net revenues, in the year-ago period.
Full Year 2024 Financial
Highlights1
- Net revenues were $326.5 million, a decrease of 4.9%
year-over-year.
- Gross profit was $41.7 million, or gross margin of 12.8%,
compared to a loss of $82.7 million, or gross margin of -24.1%, in
the year-ago period.
- Loss from operations was $156.1 million, or operating margin of
-47.8%, compared to loss from operations of $341.9 million, or
operating margin of -99.6%, in the year-ago period.
- Adjusted loss from operations was $148.6 million, or adjusted
operating margin of -45.5%, reflecting the exclusion of a $7.5
million accrual related to a consumer class action settlement.
- Net loss was $160.3 million, or $2.43 per common share,
compared to net loss of $338.1 million, or $5.26 per common share,
in the year-ago period.
- Adjusted net loss was $152.8 million, or $2.31 per diluted
common share, reflecting the exclusion of a $7.5 million accrual
related to a consumer class action settlement.
- Adjusted EBITDA was a loss of $101.7 million, or -31.1% of net
revenues, compared to an Adjusted EBITDA loss of $269.2 million, or
-78.4% of net revenues, in the year-ago period.
Beyond Meat President and CEO Ethan Brown commented, “2024 was a
pivotal year for Beyond Meat. We returned to year-over-year net
revenue growth in the second half, meaningfully expanded gross
margin compared to the prior year, sharply reduced operating
expenses, and delivered a significant year-over-year improvement in
Adjusted EBITDA.”
Brown continued, “In 2025 we are pursuing four main goals. One,
we plan to produce comparable year-over-year top line net revenues
as we focus on sustainable operations. Two, we aim to improve gross
margin to approximately 20%, with the longer-term goal of
ultimately exceeding a gross margin of 30%. Three, we plan to
further reduce our operating expenses over the two-year period 2025
and 2026 in an effort to position the business for run-rate
EBITDA-positive operations by the end of 2026. Four, we intend to
strengthen our balance sheet to improve liquidity and optimize our
capital structure. We are pursuing these four measures with
considerable confidence in the long-term growth of the global
plant-based meat industry and our leadership position therein.”
__________
1 This release includes references to non-GAAP financial
measures. Refer to “Non-GAAP Financial Measures” later in this
release for the definitions of the non-GAAP financial measures
presented and a reconciliation of these measures to their closest
comparable GAAP measures.
2025 Reduction-in-Force
With the objective of positioning the Company for run-rate
EBITDA-positive operations by the end of 2026, the Company is
implementing certain organizational changes and further
cost-reduction measures intended to strengthen its financial
profile and support its long-term objectives. On February 24, 2025,
the Board of Directors of the Company (the “Board”) approved a plan
to reduce the Company’s current workforce in North America and the
EU by approximately 44 employees, representing approximately 17% of
the Company’s global non-production workforce (or approximately 6%
of the Company’s total global workforce) (the “2025 RIF”). This
decision was based on cost-reduction initiatives intended to reduce
operating expenses.
The Company currently estimates that it will incur one-time cash
charges of approximately $1.0 million to $1.5 million in connection
with the 2025 RIF, primarily consisting of severance payments,
employee benefits and related costs, in all cases, provided to
departing employees. The Company expects that the majority of these
charges will be incurred in the first quarter of 2025, subject to
applicable legal requirements, which may delay the time these
charges will be incurred beyond the end of the first quarter of
2025. The calculation of charges the Company estimates it will
incur are subject to uncertainties and based on a number of
assumptions, including applicable legal requirements; the actual
charges incurred may differ from the estimate disclosed above.
In aggregate, the 2025 RIF, combined with the elimination of
certain open positions and changes to the executive leadership
team, is expected to result in approximately $5.5 million to $6.5
million in cash compensation operating expense savings in 2025, and
an additional approximately $1.0 million to $1.5 million in
non-cash savings in 2025 related to previously granted, unvested
stock-based compensation that would have vested in 2025.
Suspension of Operational Activities in
China
In addition, as part of the Company’s continued review of its
global operations (the “Global Operations Review”), on February 24,
2025, the Board approved a plan to suspend the Company’s current
operational activities in China, which are estimated to cease by
the end of the second quarter of 2025. As part of this plan, the
Company is reducing its workforce in China by approximately 20
employees, representing approximately 95% of the Company’s China
workforce (or approximately 3% of the Company’s total global
workforce) (the “China RIF”). The decision was based on
cost-reduction initiatives intended to reduce operating
expenses.
In connection with the suspension of its current operational
activities in China, including the China RIF, the Company currently
estimates that it will incur one-time cash charges of approximately
$0.5 million to $1.0 million, primarily consisting of severance
payments, employee benefits and related costs, in all cases,
provided to departing employees, and contract termination costs.
The Company expects that the majority of these charges will be
incurred in the first quarter of 2025, subject to applicable legal
requirements, which may delay the time these charges will be
incurred beyond the first quarter of 2025. In aggregate, the China
RIF is expected to result in approximately $0.5 million to $1.0
million in cash compensation operating expense savings in 2025.
In addition, the Company currently estimates that it will incur
one-time non-cash charges of approximately $12.0 million to $17.0
million, primarily related to accelerated depreciation and
impairment charges and other write-downs on certain fixed assets in
China. The Company expects that the majority of these charges will
be incurred in the first quarter of 2025. The calculation of the
charges the Company estimates it will incur are subject to
uncertainties and based on a number of assumptions, including
applicable legal requirements and asset disposition plans; the
actual charges incurred may differ from the estimates disclosed
above.
2025 Outlook
Based on management’s best assessment of the environment today,
the Company is providing the following outlook for the full year
2025:
- Net revenues are expected to be in the range of $320 million to
$335 million, with first quarter net revenues expected to be
comparable to net revenues in the first quarter of 2024.
- Gross margin is expected to be approximately 20%.
- Operating expenses are expected to be in the range of $160
million to $180 million.
- Capital expenditures are expected to be in the range of $15
million to $20 million.
Fourth Quarter 2024
Net revenues increased 4.0% to $76.7 million in the fourth
quarter of 2024, compared to $73.7 million in the year-ago period.
The increase in net revenues was primarily driven by a 6.3%
increase in net revenue per pound, partially offset by a 2.1%
decrease in volume of products sold. The increase in net revenue
per pound was primarily driven by lower trade discounts and price
increases of certain of our products, partially offset by changes
in product sales mix and unfavorable changes in foreign currency
exchange rates. The decrease in volume of products sold was
primarily driven by weak category demand and price elasticity
effects in the U.S. retail channel, and by lower sales of ground
beef and chicken products in the international retail channel.
U.S. retail channel net revenues increased 5.7% to $33.9 million
in the fourth quarter of 2024, compared to $32.1 million in the
year-ago period, primarily due to a 10.6% increase in net revenue
per pound, partially offset by a 4.5% decrease in volume of
products sold, primarily reflecting weak category demand and price
elasticity effects. The increase in net revenue per pound was
primarily driven by lower trade discounts, price increases of
certain of our products and changes in product sales mix.
U.S. foodservice channel net revenues decreased 2.1% to $10.5
million in the fourth quarter of 2024, compared to $10.7 million in
the year-ago period, primarily due to an 11.0% decrease in volume
of products sold, primarily reflecting lower burger sales to a
large Quick Service Restaurant (“QSR”) customer, partially offset
by a 10.0% increase in net revenue per pound. The increase in net
revenue per pound was primarily driven by price increases of
certain of our products and lower trade discounts, partially offset
by changes in product sales mix.
International retail channel net revenues decreased 1.7% to
$13.1 million in the fourth quarter of 2024, compared to $13.3
million in the year-ago period, primarily due to a 10.4% decrease
in volume of products sold, primarily reflecting lower sales of
ground beef and chicken products in the EU, partially offset by a
9.6% increase in net revenue per pound. The increase in net revenue
per pound was primarily driven by lower trade discounts and changes
in product sales mix, partially offset by unfavorable changes in
foreign currency exchange rates and price decreases of certain of
our products.
International foodservice channel net revenues increased 9.2% to
$19.3 million in the fourth quarter of 2024, compared to $17.6
million in the year-ago period, primarily due to an 8.9% increase
in volume of products sold, primarily reflecting increased sales of
chicken products to a large QSR customer in the EU, and a 0.3%
increase in net revenue per pound. The increase in net revenue per
pound primarily reflected lower trade discounts and price increases
of certain of our products, partially offset by changes in product
sales mix and unfavorable changes in foreign currency exchange
rates.
Net revenues by channel (unaudited):
The following tables present the Company’s net revenues by
channel for the periods presented:
| |
Three Months Ended |
|
Change |
| (in
thousands) |
December 31,2024 |
|
December 31,2023 |
|
Amount |
|
% |
| U.S.: |
|
|
|
|
|
|
|
|
Retail |
$ |
33,886 |
|
|
$ |
32,073 |
|
|
$ |
1,813 |
|
|
|
5.7 |
% |
|
Foodservice |
|
10,452 |
|
|
|
10,673 |
|
|
|
(221 |
) |
|
|
(2.1 |
)% |
| U.S. net revenues |
|
44,338 |
|
|
|
42,746 |
|
|
|
1,592 |
|
|
|
3.7 |
% |
| International: |
|
|
|
|
|
|
|
|
|
|
Retail |
|
13,055 |
|
|
|
13,286 |
|
|
|
(231 |
) |
|
|
(1.7 |
)% |
|
Foodservice |
|
19,265 |
|
|
|
17,647 |
|
|
|
1,618 |
|
|
|
9.2 |
% |
| International net
revenues |
|
32,320 |
|
|
|
30,933 |
|
|
|
1,387 |
|
|
|
4.5 |
% |
| Net revenues |
$ |
76,658 |
|
|
$ |
73,679 |
|
|
$ |
2,979 |
|
|
|
4.0 |
% |
| |
Year Ended |
|
Change |
| (in
thousands) |
December 31,2024 |
|
December 31,2023 |
|
Amount |
|
|
% |
|
| U.S.: |
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
150,812 |
|
|
$ |
155,240 |
|
|
$ |
(4,428 |
) |
|
|
(2.9 |
)% |
|
Foodservice |
|
47,584 |
|
|
|
50,647 |
|
|
|
(3,063 |
) |
|
|
(6.0 |
)% |
| U.S. net revenues |
|
198,396 |
|
|
|
205,887 |
|
|
|
(7,491 |
) |
|
|
(3.6 |
)% |
| International: |
|
|
|
|
|
|
|
|
|
|
Retail |
|
59,783 |
|
|
|
61,723 |
|
|
|
(1,940 |
) |
|
|
(3.1 |
)% |
|
Foodservice |
|
68,273 |
|
|
|
75,766 |
|
|
|
(7,493 |
) |
|
|
(9.9 |
)% |
| International net
revenues |
|
128,056 |
|
|
|
137,489 |
|
|
|
(9,433 |
) |
|
|
(6.9 |
)% |
| Net revenues |
$ |
326,452 |
|
|
$ |
343,376 |
|
|
$ |
(16,924 |
) |
|
|
(4.9 |
)% |
Volume of products sold by channel
(unaudited):
The following table presents consolidated volume of the
Company’s products sold in pounds for the periods presented:
| |
Three Months Ended |
|
Change |
|
Year Ended |
|
Change |
| (in
thousands) |
December 31,2024 |
|
December 31,2023 |
|
Amount |
|
% |
|
December 31,2024 |
|
December 31,2023 |
|
Amount |
|
% |
| U.S.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
6,596 |
|
|
|
6,907 |
|
|
|
(311 |
) |
|
|
(4.5 |
)% |
|
|
28,892 |
|
|
|
32,971 |
|
|
|
(4,079 |
) |
|
|
(12.4 |
)% |
|
Foodservice |
|
1,831 |
|
|
|
2,057 |
|
|
|
(226 |
) |
|
|
(11.0 |
)% |
|
|
7,892 |
|
|
|
8,923 |
|
|
|
(1,031 |
) |
|
|
(11.6 |
)% |
| International: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
2,725 |
|
|
|
3,041 |
|
|
|
(316 |
) |
|
|
(10.4 |
)% |
|
|
13,141 |
|
|
|
13,909 |
|
|
|
(768 |
) |
|
|
(5.5 |
)% |
|
Foodservice |
|
5,890 |
|
|
|
5,408 |
|
|
|
482 |
|
|
|
8.9 |
% |
|
|
20,109 |
|
|
|
22,272 |
|
|
|
(2,163 |
) |
|
|
(9.7 |
)% |
|
Volume of products sold |
|
17,042 |
|
|
|
17,413 |
|
|
|
(371 |
) |
|
|
(2.1 |
)% |
|
|
70,034 |
|
|
|
78,075 |
|
|
|
(8,041 |
) |
|
|
(10.3 |
)% |
Gross profit in the fourth quarter of 2024 was $10.0 million, or
gross margin of 13.1%, compared to a loss of $83.9 million, or
gross margin of -113.8%, in the year-ago period. Gross profit and
gross margin in the year-ago period were negatively impacted by
certain non-cash charges totaling $77.4 million, consisting of
$66.9 million associated with the Global Operations Review and
$10.5 million from other specific non-cash charges, driven mainly
by additional provision for excess and obsolete inventory
associated with a large QSR customer, and the write-off of a
prepaid fee resulting from the termination of a co-manufacturing
agreement. Gross profit and gross margin in the fourth quarter of
2024 were positively impacted by decreased cost of goods sold per
pound and increased net revenue per pound, partially offset by
decreased volume of products sold. The decrease in cost of goods
sold per pound primarily reflected lower inventory provision, lower
manufacturing costs, including depreciation, and lower materials
costs, partially offset by higher logistics costs.
Operating expenses were $47.8 million in the fourth quarter of
2024 compared to $76.9 million in the year-ago period. Operating
expenses in the year-ago period included certain non-cash charges
totaling $17.6 million associated with the Global Operations
Review. Excluding the impact of these non-cash charges in the
year-ago period, the decrease in operating expenses in the fourth
quarter of 2024 was primarily driven by reduced marketing expenses,
reduced consulting fees and reduced non-production salaries and
related expenses.
Loss from operations in the fourth quarter of 2024 was $37.8
million compared to $160.8 million in the year-ago period. The
decrease in loss from operations was driven by the increase in
gross profit and reduction in operating expenses.
Total other expense, net, was $7.0 million in the fourth quarter
of 2024, compared to total other income, net, of $5.7 million in
the year-ago period. The increase in total other expense, net, was
primarily due to increased net realized and unrealized foreign
currency transaction losses.
Net loss was $44.9 million in the fourth quarter of 2024,
compared to $155.1 million in the year-ago period. Net loss per
common share was $0.65 in the fourth quarter of 2024, compared to
$2.40 in the year-ago period. Net loss in the year-ago period was
negatively impacted by certain non-cash charges totaling $95.0
million, consisting of $84.5 million associated with the Global
Operations Review, and $10.5 million from other specific non-cash
charges. Excluding the impact of these non-cash charges in the
year-ago period, the decrease in net loss in the fourth quarter of
2024 was primarily driven by the reduction in loss from operations,
partially offset by the increase in total other expense, net.
Adjusted EBITDA was a loss of $26.0 million, or -33.9% of net
revenues, in the fourth quarter of 2024, compared to an Adjusted
EBITDA loss of $125.1 million, or -169.9% of net revenues, in the
year-ago period.
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance, including
restricted cash, was $145.6 million and total outstanding debt was
$1.1 billion as of December 31, 2024. Net cash used in operating
activities was $98.8 million in the year ended December 31, 2024,
compared to $107.8 million in the year-ago period. Capital
expenditures totaled $11.0 million in the year ended December 31,
2024, compared to $10.6 million in the year-ago period. Net cash
used in investing activities was $6.2 million in the year ended
December 31, 2024, compared to $9.5 million in the year-ago period.
Net cash provided by financing activities was $45.8 million in the
year ended December 31, 2024, compared to net cash used in
financing activities of $0.5 million in the year-ago period. The
year-over-year change in net cash from financing activities was
primarily driven by the sale of shares of common stock under the
Company’s at-the-market (“ATM”) program in the fourth quarter of
2024, which generated net proceeds of approximately $46.7
million.
Total distribution outlets by channel
(unaudited):
The following table presents the approximate number of
distribution outlets by channel for the periods presented:
| |
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
U.S.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
33,000 |
|
|
|
32,000 |
|
|
|
29,000 |
|
|
|
29,000 |
|
|
|
28,000 |
|
|
|
27,000 |
|
|
Foodservice |
|
42,000 |
|
|
|
41,000 |
|
|
|
40,000 |
|
|
|
39,000 |
|
|
|
38,000 |
|
|
|
38,000 |
|
| International: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
36,000 |
|
|
|
36,000 |
|
|
|
36,000 |
|
|
|
37,000 |
|
|
|
38,000 |
|
|
|
38,000 |
|
|
Foodservice |
|
26,000 |
|
|
|
24,000 |
|
|
|
25,000 |
|
|
|
25,000 |
|
|
|
25,000 |
|
|
|
26,000 |
|
| Total distribution
outlets(1) |
|
137,000 |
|
|
|
133,000 |
|
|
|
130,000 |
|
|
|
130,000 |
|
|
|
129,000 |
|
|
|
129,000 |
|
__________
(1) The number of retail and foodservice outlets where Beyond
Meat branded products are available was derived from rolling
52-week data as of December 2024.
Note: Beginning in 2025, the Company will discontinue the above
presentation of distribution outlets by channel given management’s
view that this information is no longer a meaningful indicator of
the Company’s near-term projected net revenue outlook as was
previously the case around the time of the Company’s initial public
offering.
Conference Call and Webcast
The Company will host a conference call to discuss these results
at 5:00 p.m. Eastern, 2:00 p.m. Pacific today. Investors interested
in participating in the live call can dial 412-902-4255. There will
also be a simultaneous, live webcast available on the Investors
section of the Company’s website at www.beyondmeat.com. The webcast
will also be archived.
About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND) is a leading
plant-based meat company offering a portfolio of revolutionary
plant-based meats made from simple ingredients without GMOs, no
added hormones or antibiotics, and 0mg of cholesterol per serving.
Founded in 2009, Beyond Meat products are designed to have the same
taste and texture as animal-based meat while being better for
people and the planet. Beyond Meat’s brand promise, Eat What You
Love®, represents a strong belief that there is a better way to
feed our future and that the positive choices we all make, no
matter how small, can have a great impact on our personal health
and the health of our planet. By shifting from animal-based meat to
plant-based protein, we can positively impact four growing global
issues: human health, climate change, constraints on natural
resources and animal welfare. Visit www.BeyondMeat.com and follow
@BeyondMeat on Facebook, Instagram, Threads and LinkedIn.
Forward-Looking Statements
Certain statements in this release constitute “forward-looking
statements" within the meaning of the federal securities laws,
including statements related to the Company’s expectations with
respect to its full year 2025 outlook.
Forward-looking statements are based on management's current
opinions, expectations, beliefs, plans, objectives, assumptions and
projections regarding financial performance, prospects, future
events and future results, including our ability to further reduce
our operating expenses and achieve an EBITDA-positive run-rate by
the end of 2026, gross margin goals, strengthening the Company’s
balance sheet, estimated cash charges in connection with the 2025
RIF and the China RIF, the anticipated timing of such charges and
estimated expense savings as a result of the 2025 RIF and China
RIF, our 2025 outlook, ongoing uncertainty related to macroeconomic
issues, including high inflation and interest rates, prolonged,
weakening demand in the plant-based meat category, ongoing concerns
about the likelihood of a recession and increased competition,
among other matters, and involve known and unknown risks that are
difficult to predict. In some cases, you can identify
forward-looking statements by the use of words such as “may,”
“could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “project,” “predict,” “outlook,”
“potential,” “continue,” “likely,” “will,” “would”, “target” and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. These forward-looking
statements are only predictions, not historical fact, and involve
certain risks and uncertainties, as well as assumptions.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by which or whether, such
performance or results will be achieved. Actual results, levels of
activity, performance, achievements and events could differ
materially from those stated, anticipated or implied by such
forward-looking statements. While Beyond Meat believes that its
assumptions are reasonable, it is very difficult to predict the
impact of known factors and, of course, it is impossible to
anticipate all factors that could affect actual results. There are
many risks and uncertainties that could cause actual results to
differ materially from forward-looking statements made herein
including, but not limited to, the sufficiency of our cash and cash
equivalents to meet our liquidity needs, including estimates of our
expenses, future revenues, capital expenditures, capital
requirements, and our ability to obtain additional equity or debt
financing, including the terms of any such financing, and to
bolster and restructure our balance sheet; the availability of our
ATM Program; risks related to our significant debt, including our
ability to repay our indebtedness, limitations on our cash flows
from operations and our ability to satisfy our obligations under
our convertible senior notes (the “Notes”); our ability to
refinance the Notes; our ability to raise the funds necessary to
repurchase the Notes for cash, under certain circumstances, or to
pay any cash amounts due upon conversion; the significant dilution
to existing stockholders that will result if we exchange any
portion of our outstanding Notes for equity; provisions in the
indenture governing the Notes delaying or preventing an otherwise
beneficial takeover of us; and any adverse impact on our reported
financial condition and results from the accounting methods for the
Notes; a further decrease in demand, and the underlying factors
negatively impacting demand, in the plant-based meat category;
risks and uncertainties related to identifying and executing
certain cost-reduction initiatives, cost structure improvements,
workforce reductions and executive leadership changes, and the
timing and success of reducing operating expenses and achieving
certain financial goals, including EBITDA and/or cash flow positive
objectives; the timing and success of narrowing our commercial
focus to certain anticipated growth opportunities; accelerating
activities that prioritize gross margin expansion and cash
generation, including as part of our ongoing review of our global
operations initiated in November 2023 (“Global Operations Review”);
changes to our pricing architecture within certain channels
including price increases of certain of our products in our U.S.
retail and foodservice channels; and further cost-reduction
initiatives; our ability to successfully execute our Global
Operations Review and any resulting strategic plans, including the
exit or discontinuation of select product lines such as Beyond Meat
Jerky; the impact of non-cash charges such as provision for excess
and obsolete inventory and potential additional impairment charges,
write-offs and disposals of fixed assets, and losses on sale and
write-down of fixed assets; further optimization of our
manufacturing capacity and real estate footprint; planned and
future reductions in our workforce; and the planned suspension of
our operational activities in China; matters relating to our El
Segundo Campus and Innovation Center (“Campus Headquarters”)
including, without limitation, the ability to meet our obligations
under our Campus Headquarters lease, the timing of occupancy and
completion of the build-out of our remaining space, any cost
overruns or delays, the unavailability of the tenant improvement
allowance to pay for the build-out of our remaining space, the
impact of workforce reductions or other cost-reduction initiatives
on our space demands, and the timing and success of subleasing,
assigning or otherwise transferring excess space or negotiating a
partial lease termination at our Campus Headquarters on terms
advantageous to us or at all, including any potential impairment
charges that may result; our ability to meet our obligations under
leases for our corporate offices, manufacturing facilities and
warehouses, or risks related to excess space capacity under our
leases due to workforce reductions or other cost-reduction
initiatives; the impact of inflation and higher interest rates
across the economy and on consumer behavior, including higher food,
grocery, raw materials, transportation, energy, labor and fuel
costs; reduced consumer confidence and changes in consumer
spending, including spending to purchase our products, and negative
trends in consumer purchasing patterns due to levels of consumers’
disposable income, credit availability and debt levels, and
economic conditions, including due to potential recessionary and
inflationary pressures; our inability to properly manage and
ultimately sell our inventory in a timely manner, which has in the
past and could in the future require us to sell our products
through liquidation channels at lower prices, write-down or
write-off obsolete inventory, or increase inventory provision; any
future impairment charges, including due to any future changes in
estimates, judgments or assumptions, failure to achieve forecasted
operating results, weakness in the economic environment, changes in
market conditions, declines in our market capitalization, failure
to sublease, assign or otherwise transfer excess space or negotiate
a partial lease termination at our Campus Headquarters on terms
advantageous to us or at all, and our planned suspension of our
operational activities in China; our ability to accurately predict
consumer taste preferences, trends and demand and successfully
innovate, introduce and commercialize new products, such as our
Beyond Sun Sausage and Beyond Steak lines, and improve existing
products such as our Beyond IV platform, including in new
geographic markets; the effects of competitive activity from our
market competitors and new market entrants; our ability to protect
our brand against misinformation about our products and the
plant-based meat category, real or perceived quality or health
issues with our products, marketing campaigns aimed at generating
negative publicity regarding our products and the plant-based meat
category, including regarding the nutritional value of our
products, and other issues that could adversely affect our brand
and reputation; the impact of adverse and uncertain economic and
political conditions in the U.S. and international markets,
including concerns about high inflation, and changes resulting from
the change in the administration in the U.S., including greater
restrictions on free trade through significant increases in tariffs
on raw materials, ingredients, finished goods and other products
and supplies imported into the U.S. and increased uncertainty
surrounding international trade policy and regulations, and trade
wars; disruption to, and the impact of uncertainty in, our domestic
and international supply chain, including labor shortages and
disruption, shipping delays and disruption, the impact of tariffs
on raw materials, ingredients, finished goods and other products
and supplies imported into the U.S. and the impact of cyber
incidents at suppliers and vendors; our ability to streamline
operations and improve cost efficiencies, which could result in the
contraction of our business and the continued implementation of
significant cost cutting measures such as further downsizing and
exiting certain operations, including product lines, domestically
and/or abroad; the impact of uncertainty as a result of doing
business in China and Europe, including as a result of our planned
suspension of our operational activities in China; the volatility
of or inability to access the capital markets, including due to
macroeconomic factors, geopolitical tensions or the outbreak of
hostilities or war—for example, the war in Ukraine and the conflict
in Israel, Gaza and surrounding areas; changes in the retail
landscape, including our ability to maintain and expand our
distribution footprint, the timing, success and level of trade and
promotion discounts, our ability to maintain and grow market share
and increase household penetration, repeat purchases, buying rates
(amount spent per buyer) and purchase frequency, our ability to
maintain and increase sales velocity of our products, and the
timing and success of planned new products or recently launched
products, including Beyond Steak, Beyond IV and Beyond Sun Sausage;
changes in the foodservice landscape, including the timing, success
and level of marketing and other financial incentives to assist in
the promotion of our products, our ability to maintain and grow
market share and attract and retain new foodservice customers or
retain existing foodservice customers, and our ability to introduce
and sustain offering of our products on menus; the timing and
success of distribution expansion and new product introductions,
including the timing and success of planned new products or
recently launched products, such as Beyond Steak, Beyond IV and
Beyond Sun Sausage, in increasing revenues and market share; our
ability to differentiate and continuously create innovative
products, respond to competitive innovation and achieve
speed-to-market, including the timing and success of planned new
products or recently launched products such as Beyond Steak, Beyond
IV and Beyond Sun Sausage; the timing and success of strategic QSR
partnership launches and limited time offerings resulting in
permanent menu items; the outcomes of legal or administrative
proceedings, or new legal or administrative proceedings filed
against us; foreign currency exchange rate fluctuations; the
effectiveness of our business systems and processes; our estimates
of the size of our market opportunities and ability to accurately
forecast market growth; our ability to effectively optimize our
manufacturing and production capacity, and real estate footprint,
including consolidating manufacturing facilities and production
lines, exiting co-manufacturing arrangements and effectively
managing capacity for specific products with shifts in demand;
risks associated with underutilization of capacity which have in
the past and could in the future give rise to increased costs per
unit, underutilization fees, termination fees and other costs to
exit certain supply chain arrangements and product lines, and/or
the write-down or write-off of certain equipment and other fixed
assets and impairment charges; our ability to accurately forecast
our future results of operations and financial goals or targets,
including as a result of fluctuations in demand for our products
and in the plant-based meat category generally and increased
competition; our ability to accurately forecast demand for our
products and manage our inventory, including the impact of customer
orders ahead of holidays and shelf reset activities, customer and
distributor changes and buying patterns, such as reductions in
targeted inventory levels, and supply chain and labor disruptions,
including due to the impact of cyber incidents at suppliers and
vendors; our operational effectiveness and ability to fulfill
orders in full and on time; variations in product selling prices
and costs, the timing and success of changes to our pricing
architecture within certain channels including the price increases
of certain of our products in our U.S. retail and foodservice
channels, and the mix of products sold; our ability to successfully
enter new geographic markets, manage our international business and
comply with any applicable laws and regulations, including risks
associated with doing business in foreign countries, and our
ability to comply with the U.S. Foreign Corrupt Practices Act or
other anti-corruption laws; the effects of global outbreaks of
pandemics (such as the COVID-19 pandemic), epidemics or other
public health crises, or fear of such crises; the success of our
marketing initiatives and the ability to maintain and grow our
brand awareness, maintain, protect and enhance our brand, attract
and retain new customers and maintain and grow our market share,
particularly while we are seeking to reduce our operating expenses;
our ability to attract, maintain and effectively expand our
relationships with key strategic foodservice partners; our ability
to attract and retain our suppliers, distributors, co-manufacturers
and customers; our ability to procure sufficient high-quality raw
materials at competitive prices to manufacture our products; the
availability of pea and other proteins and avocado oil that meet
our standards; our ability to diversify the protein sources and
avocado oil sources used for our products; our ability to
successfully execute our strategic initiatives; the volatility
associated with ingredient, packaging, transportation and other
input costs, including due to the impact of tariffs; our ability to
keep pace with technological changes impacting the development of
our products and implementation of our business needs; significant
disruption in, or breach in security of our or our suppliers’ or
vendors’ information technology systems, including any inability to
detect or timely report any cybersecurity incidents, and resultant
interruptions in service and any related impact on our reputation,
including data privacy, and any potential impact on our supply
chain, including on customer demand, order fulfillment and lost
sales, and the resulting timing and/or amount of net revenues
recognized; the ability of our transportation providers to ship and
deliver our products in a timely and cost effective manner; senior
management and key personnel changes, the attraction, training and
retention of qualified employees and key personnel, and our ability
to maintain our company culture; the effects of organizational
changes including reductions-in-force and realignment of reporting
structures; risks related to use of a professional employer
organization to administer human resources, payroll and employee
benefits functions for certain of our international employees, and
use of certain third party service providers for the performance of
several business operations including payroll and human capital
management services; the impact of potential workplace hazards; the
effects of natural or man-made catastrophic or severe weather
events, including events brought on by climate change, particularly
involving our or any of our co-manufacturers’ manufacturing
facilities, our suppliers’ facilities or any other vital aspects of
our supply chain; the effectiveness of our internal controls;
accounting estimates based on judgment and assumptions that may
differ from actual results; changes in laws and government
regulation affecting our business, including the U.S. Food and Drug
Administration and the U.S. Federal Trade Commission governmental
regulation, and state, local and foreign regulation; new or pending
legislation, or changes in laws, regulations or policies of
governmental agencies or regulators, both in the U.S. and abroad,
affecting plant-based meat, the labeling, packaging or naming of
our products, including requirements regarding nutrient content
claims, or our brand name or logo; the failure of acquisitions and
other investments to be efficiently integrated and produce the
results we anticipate; risks inherent in investment in real estate;
adverse developments affecting the financial services industry; the
financial condition of, and our relationships with our suppliers,
co-manufacturers, distributors, retailers and foodservice
customers, and their future decisions regarding their relationships
with us; our ability and the ability of our suppliers and
co-manufacturers to comply with food safety, environmental or other
laws or regulations and the impact of any non-compliance on our
operations, brand reputation and ability to fulfill orders in full
and on time; seasonality, including increased levels of grilling
activity and higher levels of purchasing by customers ahead of
holidays, customer shelf reset activity and the timing of product
restocking by our retail customers; the impact of increased
scrutiny from a variety of stakeholders, institutional investors
and governmental bodies on environmental, social and governance
practices; our, our suppliers’ and our co-manufacturers’ ability to
protect our proprietary technology, intellectual property and trade
secrets adequately; the impact of changes in tax laws; and the
risks discussed under the heading “Risk Factors” in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2023 filed with the Securities and Exchange Commission (the “SEC”)
on March 1, 2024, the Company’s Quarterly Report on Form 10-Q for
the fiscal quarter ended September 28, 2024 filed with the SEC on
November 7, 2024, and the Company’s Annual Report on Form 10-K for
the year ended December 31, 2024 to be filed with the SEC, as well
as other factors described from time to time in the Company's
filings with the SEC. All forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the cautionary statements set forth above. Such
forward-looking statements are made only as of the date of this
release. Beyond Meat undertakes no obligation to publicly update or
revise any forward-looking statement because of new information,
future events, changes in assumptions or otherwise, except to the
extent required by applicable laws. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not
recognized under U.S. generally accepted accounting principles
(“GAAP”) in this press release, including: Adjusted loss from
operations, Adjusted operating margin, Adjusted net loss, Adjusted
net loss per diluted common share, Adjusted EBITDA and Adjusted
EBITDA as a % of net revenues. See “Non-GAAP Financial Measures”
below for additional information and reconciliations of such
non-GAAP financial measures.
Availability of Information on Beyond Meat’s Website and
Social Media Channels
Investors and others should note that Beyond Meat routinely
announces material information to investors and the marketplace
using SEC filings, press releases, public conference calls,
webcasts and the Beyond Meat Investor Relations website. We also
intend to use certain social media channels as a means of
disclosing information about us and our products to consumers, our
customers, investors and the public (e.g., @BeyondMeat on Facebook,
Instagram, Threads and LinkedIn). The information posted on social
media channels is not incorporated by reference in this press
release or in any other report or document we file with the SEC.
While not all of the information that the Company posts to the
Beyond Meat Investor Relations website or to social media accounts
is of a material nature, some information could be deemed to be
material. Accordingly, the Company encourages investors, the media
and others interested in Beyond Meat to review the information that
it shares at the “Investors” link located at the bottom of the
Company’s webpage at
https://investors.beyondmeat.com/investor-relations and to sign up
for and regularly follow the Company’s social media accounts. Users
may automatically receive email alerts and other information about
the Company when enrolling an email address by visiting “Request
Email Alerts” in the “Investors” section of Beyond Meat’s website
at https://investors.beyondmeat.com/investor-relations.
Contacts
Media:Shira
Zackaishira.zackai@beyondmeat.com
Investors:Raphael
Grossbeyondmeat@icrinc.com
|
BEYOND MEAT, INC. AND
SUBSIDIARIESConsolidated Statements of
Operations(In thousands, except share and per
share data)(unaudited) |
| |
| |
Three Months Ended |
|
Year Ended |
| |
December 31,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
|
Net revenues |
$ |
76,658 |
|
|
$ |
73,679 |
|
|
$ |
326,452 |
|
|
$ |
343,376 |
|
| Cost of goods sold |
|
66,652 |
|
|
|
157,538 |
|
|
|
284,753 |
|
|
|
426,031 |
|
| Gross profit (loss) |
|
10,006 |
|
|
|
(83,859 |
) |
|
|
41,699 |
|
|
|
(82,655 |
) |
| Research and development
expenses |
|
6,671 |
|
|
|
9,207 |
|
|
|
28,149 |
|
|
|
39,530 |
|
| Selling, general and
administrative expenses |
|
41,145 |
|
|
|
67,737 |
|
|
|
169,674 |
|
|
|
220,344 |
|
| Restructuring income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(631 |
) |
| Total operating expenses |
|
47,816 |
|
|
|
76,944 |
|
|
|
197,823 |
|
|
|
259,243 |
|
| Loss from operations |
|
(37,810 |
) |
|
|
(160,803 |
) |
|
|
(156,124 |
) |
|
|
(341,898 |
) |
| Other (expense) income,
net: |
|
|
|
|
|
|
|
| Interest expense |
|
(1,025 |
) |
|
|
(988 |
) |
|
|
(4,097 |
) |
|
|
(3,955 |
) |
| Other, net |
|
(6,015 |
) |
|
|
6,719 |
|
|
|
(10 |
) |
|
|
11,616 |
|
| Total other (expense) income,
net |
|
(7,040 |
) |
|
|
5,731 |
|
|
|
(4,107 |
) |
|
|
7,661 |
|
| Loss before taxes |
|
(44,850 |
) |
|
|
(155,072 |
) |
|
|
(160,231 |
) |
|
|
(334,237 |
) |
| Income tax (benefit)
expense |
|
— |
|
|
|
— |
|
|
|
(26 |
) |
|
|
5 |
|
| Equity in losses of
unconsolidated joint venture |
|
12 |
|
|
|
38 |
|
|
|
73 |
|
|
|
3,902 |
|
| Net loss |
$ |
(44,862 |
) |
|
$ |
(155,110 |
) |
|
$ |
(160,278 |
) |
|
$ |
(338,144 |
) |
| Net loss per share available
to common stockholders—basic and diluted |
$ |
(0.65 |
) |
|
$ |
(2.40 |
) |
|
$ |
(2.43 |
) |
|
$ |
(5.26 |
) |
| Weighted average common shares
outstanding—basic and diluted |
|
69,235,143 |
|
|
|
64,556,557 |
|
|
|
66,004,815 |
|
|
|
64,300,099 |
|
|
BEYOND MEAT, INC. AND
SUBSIDIARIESConsolidated Balance
Sheets(In thousands, except share and per share
data)(unaudited) |
| |
| |
December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
| Assets |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
131,913 |
|
|
$ |
190,505 |
|
|
Restricted cash, current |
|
1,041 |
|
|
|
2,830 |
|
|
Accounts receivable, net |
|
26,862 |
|
|
|
31,730 |
|
|
Inventory |
|
113,444 |
|
|
|
130,336 |
|
|
Prepaid expenses and other current assets |
|
11,332 |
|
|
|
12,904 |
|
|
Assets held for sale |
|
1,864 |
|
|
|
4,539 |
|
|
Total current assets |
|
286,456 |
|
|
|
372,844 |
|
| Restricted cash,
non-current |
|
12,600 |
|
|
|
12,600 |
|
| Property, plant, and
equipment, net |
|
184,887 |
|
|
|
194,046 |
|
| Operating lease right-of-use
assets |
|
123,975 |
|
|
|
130,460 |
|
| Prepaid lease costs,
non-current |
|
68,005 |
|
|
|
61,635 |
|
| Other non-current assets,
net |
|
622 |
|
|
|
1,192 |
|
| Investment in unconsolidated
joint venture |
|
1,601 |
|
|
|
1,673 |
|
|
Total assets |
$ |
678,146 |
|
|
$ |
774,450 |
|
|
Liabilities and stockholders’ deficit: |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
37,571 |
|
|
$ |
56,032 |
|
|
Accrued bonus |
|
582 |
|
|
|
4,790 |
|
|
Current portion of operating lease liabilities |
|
4,125 |
|
|
|
3,677 |
|
|
Accrued expenses and other current liabilities |
|
11,925 |
|
|
|
9,855 |
|
|
Accrued litigation settlement |
|
7,250 |
|
|
|
— |
|
|
Total current liabilities |
$ |
61,453 |
|
|
$ |
74,354 |
|
| Long-term liabilities: |
|
|
|
|
Convertible senior notes, net |
$ |
1,141,476 |
|
|
$ |
1,137,542 |
|
|
Operating lease liabilities, net of current portion |
|
73,613 |
|
|
|
75,648 |
|
|
Finance lease obligations and other long term liabilities |
|
2,812 |
|
|
|
274 |
|
|
Total long-term liabilities |
$ |
1,217,901 |
|
|
$ |
1,213,464 |
|
| Commitments and
contingencies |
|
|
|
| Stockholders’ deficit: |
|
|
|
| Preferred stock, par value
$0.0001 per share—500,000 shares authorized, none issued and
outstanding |
$ |
— |
|
|
$ |
— |
|
| Common stock, par value
$0.0001 per share—500,000,000 shares authorized at December 31,
2024 and 2023; 76,065,969 shares and 64,624,140 shares issued and
outstanding at December 31, 2024 and 2023, respectively |
|
8 |
|
|
|
6 |
|
| Additional paid-in
capital |
|
644,004 |
|
|
|
573,128 |
|
| Accumulated deficit |
|
(1,241,531 |
) |
|
|
(1,081,253 |
) |
| Accumulated other
comprehensive loss |
|
(3,689 |
) |
|
|
(5,249 |
) |
|
Total stockholders’ deficit |
$ |
(601,208 |
) |
|
$ |
(513,368 |
) |
|
Total liabilities and stockholders’ deficit |
$ |
678,146 |
|
|
$ |
774,450 |
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
|
Consolidated Statements of Cash Flows |
|
(In thousands) |
|
(unaudited) |
| |
Year Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
| Cash flows from operating
activities: |
|
|
|
|
|
|
Net loss |
$ |
(160,278 |
) |
|
$ |
(338,144 |
) |
|
$ |
(366,137 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
23,121 |
|
|
|
48,094 |
|
|
|
32,582 |
|
|
Non-cash lease expense |
|
8,279 |
|
|
|
8,140 |
|
|
|
5,167 |
|
|
Share-based compensation expense |
|
23,923 |
|
|
|
29,098 |
|
|
|
33,857 |
|
|
Provision for credit losses |
|
221 |
|
|
|
— |
|
|
|
— |
|
|
Loss on sale and write-down of fixed assets |
|
809 |
|
|
|
20,515 |
|
|
|
486 |
|
|
Amortization of debt issuance costs |
|
3,934 |
|
|
|
3,934 |
|
|
|
3,934 |
|
|
Equity in losses of unconsolidated joint venture |
|
73 |
|
|
|
3,902 |
|
|
|
18,948 |
|
|
Write-down of note receivable |
|
— |
|
|
|
3,795 |
|
|
|
— |
|
|
Unrealized loss (gain) on foreign currency transactions |
|
5,113 |
|
|
|
(1,822 |
) |
|
|
5,106 |
|
| |
|
|
|
|
|
| Net change in
operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
4,193 |
|
|
|
2,717 |
|
|
|
9,063 |
|
|
Inventories |
|
15,576 |
|
|
|
106,087 |
|
|
|
2,572 |
|
|
Prepaid expenses and other assets |
|
2,013 |
|
|
|
12,873 |
|
|
|
11,595 |
|
|
Accounts payable |
|
(20,564 |
) |
|
|
3,004 |
|
|
|
(10,826 |
) |
|
Accrued expenses and other current liabilities |
|
4,511 |
|
|
|
(2,492 |
) |
|
|
(7,148 |
) |
|
Prepaid lease costs, non-current |
|
(6,502 |
) |
|
|
(4,245 |
) |
|
|
(55,110 |
) |
|
Operating lease liabilities |
|
(3,235 |
) |
|
|
(3,281 |
) |
|
|
(4,333 |
) |
|
Net cash used in operating activities |
$ |
(98,813 |
) |
|
$ |
(107,825 |
) |
|
$ |
(320,244 |
) |
| |
|
|
|
|
|
| Cash flows from investing
activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment |
$ |
(11,015 |
) |
|
$ |
(10,564 |
) |
|
$ |
(70,475 |
) |
|
Proceeds from sale of fixed assets |
|
4,348 |
|
|
|
4,323 |
|
|
|
— |
|
|
Purchases of property, plant and equipment held for sale |
|
— |
|
|
|
— |
|
|
|
(2,821 |
) |
|
Payments for investment in joint venture |
|
— |
|
|
|
(3,250 |
) |
|
|
(13,250 |
) |
|
Proceeds from (payment of) security deposits |
|
435 |
|
|
|
— |
|
|
|
(981 |
) |
|
Net cash used in investing activities |
$ |
(6,232 |
) |
|
$ |
(9,491 |
) |
|
$ |
(87,527 |
) |
|
|
| Cash flows from financing
activities: |
|
|
|
|
|
|
Proceeds from issuance of common stock pursuant to the ATM
offering, net of issuance costs |
$ |
46,725 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Principal payments under finance lease obligations |
|
(1,177 |
) |
|
|
(223 |
) |
|
|
(210 |
) |
|
Proceeds from exercise of stock options |
|
924 |
|
|
|
170 |
|
|
|
1,626 |
|
|
Payments of minimum withholding taxes on net share settlement of
equity awards |
|
(695 |
) |
|
|
(497 |
) |
|
|
(1,140 |
) |
|
Net cash provided by (used in) financing activities |
$ |
45,777 |
|
|
$ |
(550 |
) |
|
$ |
276 |
|
| Net decrease in cash, cash
equivalents and restricted cash |
$ |
(59,268 |
) |
|
$ |
(117,866 |
) |
|
$ |
(407,495 |
) |
| Cash, cash equivalents and
restricted cash at the beginning of the period |
|
205,935 |
|
|
|
322,549 |
|
|
|
733,294 |
|
| Effect of exchange rate
changes on cash |
|
(1,113 |
) |
|
|
1,252 |
|
|
|
(3,250 |
) |
| Cash, cash equivalents and
restricted cash at the end of the period |
$ |
145,554 |
|
|
$ |
205,935 |
|
|
$ |
322,549 |
|
| |
|
|
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
|
|
|
Cash paid (received) during the period for: |
|
|
|
|
|
|
Interest |
$ |
— |
|
|
$ |
— |
|
|
$ |
10 |
|
|
Taxes |
$ |
6 |
|
|
$ |
(1 |
) |
|
$ |
38 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
Non-cash additions to property, plant and equipment |
$ |
3,428 |
|
|
$ |
909 |
|
|
$ |
3,507 |
|
|
Operating lease right-of-use assets obtained in exchange for lease
liabilities |
|
1,755 |
|
|
$ |
36,400 |
|
|
$ |
37,245 |
|
|
Reclassification of pre-paid lease costs to operating lease
right-of-use assets |
|
131 |
|
|
$ |
28,082 |
|
|
$ |
29,000 |
|
|
Non-cash addition to financing leases |
|
4,308 |
|
|
$ |
— |
|
|
$ |
280 |
|
Non-GAAP Financial Measures
Beyond Meat uses the non-GAAP financial measures set forth below
in assessing its operating performance and in its financial
communications. Management believes these non-GAAP financial
measures provide useful additional information to investors about
current trends in the Company's operations and are useful for
period-over-period comparisons of operations. In addition,
management uses these non-GAAP financial measures to assess
operating performance and for business planning purposes.
Management also believes these measures are widely used by
investors, securities analysts, rating agencies and other parties
in evaluating companies in our industry as a measure of our
operational performance. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP financial
measures may not be computed in the same manner as similarly titled
measures used by other companies.
“Adjusted loss from operations” is defined as loss from
operations adjusted to exclude, when applicable, costs attributable
to special items, which are those items deemed not to be reflective
of the Company’s ongoing normal business activities.
“Adjusted operating margin” is defined as Adjusted loss from
operations divided by net revenues.
“Adjusted net loss” is defined as net loss adjusted to exclude,
when applicable, costs attributable to special items, which are
those items deemed not to be reflective of the Company’s normal
business activities.
“Adjusted net loss per diluted common share” is defined as
Adjusted net loss divided by the number of diluted common shares
outstanding.
We consider Adjusted loss from operations, Adjusted operating
margin, Adjusted net loss and Adjusted net loss per diluted common
share to be useful indicators of operating performance because
excluding special items allows for period-over-period comparisons
of our ongoing operations. Adjusted net loss per diluted common
share is a performance measure and should not be used as a measure
of liquidity.
“Adjusted EBITDA” is defined as net loss adjusted to exclude,
when applicable, income tax expense (benefit), interest expense,
depreciation and amortization expense, restructuring expenses,
share-based compensation expense, accrued litigation settlement
costs and Other, net, including interest income, and foreign
currency transaction gains and losses.
“Adjusted EBITDA as a % of net revenues” is defined as Adjusted
EBITDA divided by net revenues.
There are a number of limitations related to the use of Adjusted
loss from operations, Adjusted operating margin, Adjusted net loss,
Adjusted net loss per diluted common share, Adjusted EBITDA and
Adjusted EBITDA as a % of net revenues rather than their most
directly comparable GAAP measures. Some of these limitations
are:
- Adjusted loss from operations, Adjusted operating margin,
Adjusted net loss and Adjusted net loss per diluted common share
exclude costs associated with activities deemed to be non-recurring
or not part of the Company’s normal business activities, which are
subjective determinations made by management and may not actualize
as expected;
- Adjusted loss from operations, Adjusted operating margin,
Adjusted net loss, Adjusted net loss per diluted common share,
Adjusted EBITDA and Adjusted EBITDA as a % of net revenues do not
reflect accrued litigation settlement costs which reduce cash
available to us;
- Adjusted EBITDA excludes depreciation and amortization expense
and, although these are non-cash expenses, the assets being
depreciated may have to be replaced in the future increasing our
cash requirements;
- Adjusted EBITDA does not reflect interest expense, or the cash
required to service our debt, which reduces cash available to
us;
- Adjusted EBITDA does not reflect income tax payments that
reduce cash available to us;
- Adjusted EBITDA does not reflect restructuring expenses that
reduce cash available to us;
- Adjusted EBITDA does not reflect share-based compensation
expense and therefore does not include all of our compensation
costs;
- Adjusted EBITDA does not reflect accrued litigation settlement
costs which reduce cash available to us;
- Adjusted EBITDA does not reflect Other, net, including interest
income and foreign currency transaction gains and losses, that may
increase or decrease cash available to us; and
- other companies, including companies in our industry, may
calculate Adjusted loss from operations, Adjusted operating margin,
Adjusted net loss, Adjusted net loss per diluted common share,
Adjusted EBITDA and Adjusted EBITDA as a % of net revenues
differently, which reduces their usefulness as comparative
measures.
The following tables present the reconciliation of Adjusted loss
from operations, Adjusted operating margin, Adjusted net loss and
Adjusted net loss per diluted common share to their most comparable
GAAP measures, loss from operations, operating margin, net loss and
net loss per share available to common stockholders—basic and
diluted, respectively, each as reported (unaudited):
| |
Three Months Ended |
|
Year Ended |
| (in
thousands) |
December 31,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
|
Loss from operations, as reported |
$ |
(37,810 |
) |
|
$ |
(160,803 |
) |
|
$ |
(156,124 |
) |
|
$ |
(341,898 |
) |
| Accrued litigation settlement
costs |
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
|
— |
|
| Adjusted loss from
operations |
$ |
(37,810 |
) |
|
$ |
(160,803 |
) |
|
$ |
(148,624 |
) |
|
$ |
(341,898 |
) |
| Loss from operations as a % of
net revenues |
|
(49.3 |
)% |
|
|
(218.2 |
)% |
|
|
(47.8 |
)% |
|
|
(99.6 |
)% |
| Adjusted operating margin |
|
(49.3 |
)% |
|
|
(218.2 |
)% |
|
|
(45.5 |
)% |
|
|
(99.6 |
)% |
| |
Three Months Ended |
|
Year Ended |
| (in
thousands) |
December 31,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
|
Net loss, as reported |
$ |
(44,862 |
) |
|
$ |
(155,110 |
) |
|
$ |
(160,278 |
) |
|
$ |
(338,144 |
) |
| Accrued litigation settlement
costs |
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
|
— |
|
| Adjusted net loss |
$ |
(44,862 |
) |
|
$ |
(155,110 |
) |
|
$ |
(152,778 |
) |
|
$ |
(338,144 |
) |
| |
Three Months Ended |
|
Year Ended |
| (in thousands, except
share and per share amounts) |
December 31,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
| Numerator: |
|
|
|
|
|
|
|
|
Net loss, as reported |
$ |
(44,862 |
) |
|
$ |
(155,110 |
) |
|
$ |
(160,278 |
) |
|
$ |
(338,144 |
) |
| Accrued litigation settlement
costs |
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
|
— |
|
| Adjusted net loss used in
computing Adjusted net loss per diluted common share |
$ |
(44,862 |
) |
|
$ |
(155,110 |
) |
|
$ |
(152,778 |
) |
|
$ |
(338,144 |
) |
| |
|
|
|
|
|
|
|
| Denominator: |
|
|
|
|
|
|
|
| Weighted average shares used
in computing Adjusted net loss per common share |
|
69,235,143 |
|
|
|
64,556,557 |
|
|
|
66,004,815 |
|
|
|
64,300,099 |
|
| Adjusted net loss per diluted
common share |
$ |
(0.65 |
) |
|
$ |
(2.40 |
) |
|
$ |
(2.31 |
) |
|
$ |
(5.26 |
) |
| |
Three Months Ended |
|
Year Ended |
| |
December 31,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
|
Net loss per share available to common stockholders—basic and
diluted, as reported |
$ |
(0.65 |
) |
|
$ |
(2.40 |
) |
|
$ |
(2.43 |
) |
|
$ |
(5.26 |
) |
| Accrued litigation settlement
costs |
|
— |
|
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
Adjusted net loss per diluted common share |
$ |
(0.65 |
) |
|
$ |
(2.40 |
) |
|
$ |
(2.31 |
) |
|
$ |
(5.26 |
) |
The following table presents the reconciliation of Adjusted
EBITDA to its most comparable GAAP measure, net loss, as reported
(unaudited):
| |
Three Months Ended |
|
Year Ended |
| (in
thousands) |
December 31,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
|
Net loss, as reported |
$ |
(44,862 |
) |
|
$ |
(155,110 |
) |
|
$ |
(160,278 |
) |
|
$ |
(338,144 |
) |
| Income tax (benefit)
expense |
|
— |
|
|
|
— |
|
|
|
(26 |
) |
|
|
5 |
|
| Interest expense |
|
1,025 |
|
|
|
988 |
|
|
|
4,097 |
|
|
|
3,955 |
|
| Depreciation and amortization
expense |
|
5,657 |
|
|
|
30,387 |
|
|
|
23,121 |
|
|
|
48,094 |
|
| Restructuring expenses(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(631 |
) |
| Share-based compensation
expense |
|
6,170 |
|
|
|
5,307 |
|
|
|
23,923 |
|
|
|
29,098 |
|
| Accrued litigation settlement
costs |
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
|
— |
|
| Other, net(2)(3) |
|
6,015 |
|
|
|
(6,719 |
) |
|
|
10 |
|
|
|
(11,616 |
) |
| Adjusted EBITDA |
$ |
(25,995 |
) |
|
$ |
(125,147 |
) |
|
$ |
(101,653 |
) |
|
$ |
(269,239 |
) |
| Net loss as a % of net
revenues |
|
(58.5 |
)% |
|
|
(210.5 |
)% |
|
|
(49.1 |
)% |
|
|
(98.5 |
)% |
| Adjusted EBITDA as a % of net
revenues |
|
(33.9 |
)% |
|
|
(169.9 |
)% |
|
|
(31.1 |
)% |
|
|
(78.4 |
)% |
____________
|
(1) |
|
Primarily comprised of legal and
other expenses associated with the dispute with a co-manufacturer
with whom an exclusive supply agreement was terminated in May 2017.
On October 18, 2022, the parties to this dispute entered into a
confidential written settlement agreement and mutual release
related to this matter. In the year ended December 31, 2023, we
recorded a credit of $(0.6) million, in restructuring
expenses, primarily driven by a reversal of certain accruals. |
|
(2) |
|
Includes $6.9 million and $(4.4)
million in net realized and unrealized foreign currency transaction
losses (gains) in the three months ended December 31, 2024 and
December 31, 2023, respectively. Includes $6.3 million and $(1.1)
million in net realized and unrealized foreign currency transaction
losses (gains) in the years ended December 31, 2024 and 2023,
respectively. |
|
(3) |
|
Includes $0.9 million and $2.4
million in interest income in the three months ended December 31,
2024 and December 31, 2023, respectively. Includes $6.0 million and
$10.8 million in interest income in the years ended December 31,
2024 and 2023, respectively. Includes $0.5 million in subsidies
received from the Jiaxing Economic Development Zone Finance Bureau
related to our investment in our subsidiary, Beyond Meat (Jiaxing)
Food Co., Ltd, in the year ended December 31, 2024. |
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