ChromaDex Corp. reported strong third-quarter 2024 financial results, marked by record revenue, net income, and adjusted EBITDA. The company achieved $25.6 million in revenue, a 31% year-over-year increase, and a 63.5% gross margin. Net income reached a record $1.9 million, or $0.02 per share, compared to a net loss in the same quarter of the previous year. Adjusted EBITDA also reached a record high of $2.9 million.
This growth was primarily fueled by a surge in Niagen® ingredient sales, including significant increases in both food-grade and the newly introduced pharmaceutical-grade Niagen®. Though more modestly, Tru Niagen® sales also contributed to the overall revenue growth. Gross margin improvement was attributed to a favorable product and business mix shift, deferred revenue recognition, and improved labor and overhead utilization rates resulting from higher sales volume.
Operating expenses saw a 12% increase to $14.6 million, driven by investments in sales and marketing, research and development, and general and administrative functions. Despite this increase, cash flow from operating activities remained positive at $3.5 million for the nine months ended September 30, 2024. However, this figure was lower than the previous year, primarily due to increased trade receivables, decreased accounts payable and accrued expenses, and lower provisions for credit losses, partially offset by the significant improvement in net income.
For 2024, ChromaDex projects approximately 15% revenue growth, driven by continued e-commerce success, existing partnerships, and contributions from the newly launched Niagen+ product line. The company anticipates a slight year-over-year improvement in gross margin. While selling and marketing expenses are expected to increase in absolute dollars, they are projected to remain stable as a percentage of net sales. ChromaDex plans continued investment in research and development, with a projected decrease in general and administrative expenses of approximately $1.5 million compared to the previous year.
ChromaDex finished the quarter with a strong cash position of $32.4 million. The company’s balance sheet reflects total assets of $56.5 million and total liabilities and stockholders’ equity of the same amount.
The company held an investor conference call on October 31, 2024, to discuss these results and provide a general business update. A recorded version of the webcast is available on the ChromaDex investor relations website.
Jon Napitupulu is Director of Media Relations at The Clinical Trial Vanguard. Jon, a computer data scientist, focuses on the latest clinical trial industry news and trends.
