In this video, I will talk about the recent quarters that Tattooed Chef (TTCF +0.00%) had and the negative impacts caused by the ongoing supply chain issues. You can find the video below, but here are some highlights.
- In the third quarter, the company reported 43.5% revenue growth year over year, gross margin of 10.1%, and an EBITDA loss of $5 million.
- It lowered full-year guidance across the board. It now expects revenue to grow 43% year over year, gross margin to come in at 13% at the midpoint, and an EBITDA loss of $19 million at the midpoint -- which is a complete U-turn from the guidance at the start of the year.
- The full-year guidance that was given in Q1 was 60.5% revenue growth year over year, gross margin to come in at 22.5% at the midpoint, and adjusted EBITDA to be $3 million at the midpoint.
- In Q2, full-year gross margin and EBITDA loss got lowered to 19% and $15.5 million at the midpoint, respectively.
- The decline in gross margin both sequentially and annually was attributed to the same supply chain and raw material input cost inflation hitting most in the space at this time.
- Tattooed Chef products can now be found in 13,000 stores versus 4,300 stores three quarters ago. The company expected to be in 10,000 stores by the end of this year.
All in all, the company is still growing revenue by over 40% and these supply chain issues will not last forever. The question is, how big of a hit will the company take in the short term?
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*Stock prices used were the closing prices of Nov. 24, 2021. The video was published on Nov. 26, 2021.
