Tattooed Chef, Inc. (Nasdaq: TTCF) , a leader in plant-based foods, today announced financial results for the three months ended March 31, 2021.
Financial Highlights for the First Quarter of 2021 Compared to the First Quarter of 2020
- Revenue was $52.7 million, a 59% increase compared to $33.2 million in the prior year period; Tattooed Chef branded product revenue was a record $36.0 million, an increase of 105% compared to $17.6 million in the prior year period.
- Gross profit was $13.7 million, or 26% gross margin, compared to $9.2 million, or 28% gross margin, in the prior year period.
- Net loss was $7.9 million compared to net income of $5.9 million in the prior year period.
- Adjusted EBITDA loss was $3.0 million compared to Adjusted EBITDA of $7.0 million in the prior year period. Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Measures.” Please see “Adjusted EBITDA Reconciliation” at the end of this press release.
Revenue increased by $19.5 million, or 59%, to $52.7 million in the three months ended March 31, 2021 compared to $33.2 million in the three months ended March 31, 2020. The revenue increase was primarily driven by an $18.4 million increase in “Tattooed Chef” branded products, and a $1.3 million increase in private label products and legacy products for select private label retailers. The increase in Tattooed Chef branded products resulted from expansion in the number of U.S. distribution points, as well as increased volume at existing retail customers with our current portfolio of products and new product introductions including smoothie bowls, vegetable blends, buffalo cauliflower, and other value-added riced cauliflower meals.
Gross profit was $13.7 million in the three months ended March 31, 2021 compared to $9.2 million in the three months ended March 31, 2020. Gross margin in the three months ended March 31, 2021 was 26.0% compared to 27.9% in the three months ended March 31, 2020. Gross margin in the three months ended March 31, 2021 decreased compared to the prior year period, however, on a sequential basis, first quarter gross margin increased 860 basis points compared to 17.4% in the fourth quarter of 2020 due to increased operational efficiencies.
Operating expenses increased $18.3 million to $20.7 million in the three months ended March 31, 2021 compared to $2.4 million in the three months ended March 31, 2020. The increase in operating expenses was primarily due to $3.2 million of stock-based compensation, $2.6 million in marketing, $2.6 million in public company and new employee costs, and $1.9 million in promotional expenses to invest in customers through promotional offers. The Company expects operating expenses to decrease as a percentage of revenue over time.
Net loss was $7.9 million in the three months ended March 31, 2021 compared to net income of $5.9 million in the prior year period, primarily driven by increased operating expenses.
Adjusted EBITDA loss was $3.0 million in the three months ended March 31, 2021, compared to Adjusted EBITDA of $7.4 million in the three months ended March 31, 2020. The decrease in Adjusted EBITDA was primarily due to the operating expenses that were previously mentioned.
Balance Sheet and Cash Flow
As of March 31, 2021, the Company had cash and cash equivalents of $185 million.
CWEB Analyst’s have initiated a Strong BUY Rating for Tattooed Chef, Inc. (Nasdaq: TTCF) and potential upside of $33 in 2021. The fundamentals of the company are to strong and cash on hand has increased compare to previous quarter. We believe Q2 and Q3 will be the real break for the company with more positive cash flow and new contracts. The Company had cash and cash equivalents of $185 million.
