Arcadia Biosciences (RKDA) Q2 Earnings Miss, Increase Y/Y

Financial Performance - Arcadia Biosciences reported adjusted earnings of 78 cents per share in Q2 2024, missing the Zacks Consensus Estimate of $1.27, compared to an adjusted loss of $2.64 per share in Q2 2023 [1] - Net sales for the quarter were $1.3 million, a slight increase of 0.7% year over year, driven by higher Zola sales, and beating the Zacks Consensus Estimate of $1 million [3] - The cost of revenues decreased by 2.6% year over year to $0.63 million, while research and development expenses were $0.01 million compared to $0.03 million in the prior year [5] Strategic Transactions - Arcadia sold its GoodWheat brand to Above Food Corp. for net payments of $4 million over three years, aimed at increasing fiber content in food items [2] - The company also sold its Resistant Starch Durum trait to Corteva Agriscience for $4 million in cash, following a collaboration that began in 2017 [3] - A gain of $4 million was recognized from the asset sale to Corteva, with operating expenses reported at $0.67 million in Q2 [6] Brand Performance - Zola coconut water sales increased by 42% year over year, with new flavors introduced in Q2, and the company plans to expand distribution through mass market retailers [4] - The surge in Zola sales contributed to the overall net sales increase, despite a decline in GLA sales [3] Cash Position and Management Changes - At the end of Q2, Arcadia's cash and cash equivalents were $5.5 million, down from $6.5 million at the end of 2023, with a cash outflow of $5.7 million in operating activities for the first half of 2024 [7] - Following the departure of Stan Jacot, Thomas J. Schaefer has been appointed as the new president and CEO of Arcadia [7] Stock Performance - RKDA shares have declined by 29% over the past year, contrasting with a 3.5% decline in the industry [8]