Zevia PBC Q4 FY2024 earnings call

• Marketing: Sharpened brand voice, with a viral holiday campaign transitioning from digital to linear TV. Plan to scale the campaign into a comprehensive brand platform. High consumer engagement with a repeat rate over 40% and higher brand spend per household than average beverage shoppers. Increased marketing investments in 2025.
• Product Innovation: Launching new flavor Strawberry Lemon Burst in spring 2025 with enhanced taste. Rolling out variety packs, including a first retail variety pack at Walmart and expanding to twelve-packs. Launching retailer exclusives and limited edition seasonal flavors.
• Distribution Expansion: Expanded Walmart presence to over 4,300 doors. Albertsons created a better-for-you soda set with Zevia PBC in strong brand block. DSD regional pilot in northwest performing well, with expansion planned to southwest starting with Crescent Crown in Arizona.

In the fourth quarter of 2024, Zevia PBC delivered net sales of $39.5 million, a 4.4% increase compared to the prior year, driven by increased volumes from expanding Walmart locations. Gross margin was a record high 49.2%, up from 40.7% in the prior year's fourth quarter. Adjusted EBITDA loss was $3.9 million, an improvement from $6.9 million in the prior year's fourth quarter. For the full year 2024, net sales were $155.1 million, a 6.8% decrease, but adjusted EBITDA loss improved to $15.2 million from $19.1 million in 2023. Revenue contribution details weren't explicitly broken down by product segment in terms of percentage, but overall sales performance was discussed in context of growth drivers like distribution expansion and product innovation.

• 2025 net sales estimated in the range of $158 million to $163 million.
• Adjusted EBITDA loss expected in the range of $8 million to $11 million for 2025.
• Q1 2025 net sales expected between $36 million to $38 million, with adjusted EBITDA loss between $5.6 million and $6 million.
• Anticipate return to growth for the full year 2025, with Q2 and Q3 expected to be the highest volume quarters due to seasonality.

Q: Observations on DSP model in Pacific Northwest and Arizona?

A: Amy Taylor discussed learning from marketing at key accounts, using marketing attribution, brand health trackers, and planning to use a marketing mix model. Highlighted the viral campaign in December and building on it with upcoming March initiatives, emphasizing marketing as a top priority for long-term opportunity