Where Food Comes From, Inc. Reports 2024 Second Quarter and Six-Month Financial Results

Core Insights - Where Food Comes From, Inc. reported a total revenue increase of 4% in Q2 2024 compared to Q2 2023, reaching $6.4 million, driven primarily by a 10% rise in verification and certification revenue [1][4][6] - The company experienced a decline in product sales by 13% to $0.8 million in Q2 2024, while net income decreased by 8% to $489,000 [1][5][6] - The company has initiated a stock buyback program, repurchasing 33,347 shares in Q2 2024 at a cost of $389,000 [1][6] Financial Performance - Verification and certification revenue for the first half of 2024 increased by 13% to $9.7 million, while product sales declined by 19% to $1.6 million [1][6][7] - Total revenue for the six months ended June 30, 2024, rose by 5% to $12.0 million compared to the same period in 2023 [1][6][7] - Adjusted EBITDA for Q2 2024 was $844,000, down from $917,000 in Q2 2023, indicating an 8% decrease [1][5][6] Operational Highlights - The company generated $1.9 million in cash from operations in the first half of 2024, an increase from $1.3 million in the same period last year [1][8] - Selling, general, and administrative expenses rose to $2.1 million in Q2 2024, reflecting increased marketing, personnel, and travel costs [5][7] - The company has diversified its service offerings, now auditing to nearly 60 different standards, which helps mitigate risks during challenging market conditions [2][3] Strategic Initiatives - The new Upcycled Food Certification initiative has emerged as one of the fastest-growing standards for the company [2] - There is a growing demand for biosecurity offerings, positioning the company to assist customers in managing potential animal disease outbreaks [2] - The company aims to leverage its diversified services portfolio to navigate inflationary pressures and cyclical trends in the beef industry [3]