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Where Food es From(WFCF) - 2024 Q4 - Earnings Call Transcript
WFCFWhere Food es From(WFCF)2025-02-21 13:21
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Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was flat at 6.7millionyear−over−year[6]−GrossprofitinQ4declined76.7 million year-over-year [6] - Gross profit in Q4 declined 7% to 2.8 million from 3million[7]−Netincomeincreasedto3 million [7] - Net income increased to 961,000 or 0.18perdilutedsharefrom0.18 per diluted share from 776,000 or 0.14perdilutedshare[7]−Fullyeartotalrevenueincreased20.14 per diluted share [7] - Full year total revenue increased 2% to 25.7 million from 25.1million[9]−Netincomefortheyearwasdownslightlyto25.1 million [9] - Net income for the year was down slightly to 2.1 million or 0.40perdilutedshareversus0.40 per diluted share versus 2.2 million or 0.39perdilutedsharein2023[15]BusinessLineDataandKeyMetricsChanges−Verificationandcertificationservicesrevenuewasdownslightlyat0.39 per diluted share in 2023 [15] Business Line Data and Key Metrics Changes - Verification and certification services revenue was down slightly at 5.4 million versus 5.5million[6]−Productrevenueincreased65.5 million [6] - Product revenue increased 6% to 922,000 from 871,000[6]−Professionalservicesrevenuewas871,000 [6] - Professional services revenue was 360,000 versus 391,000[6]−Fullyearverificationandcertificationservicesrevenuewasup6391,000 [6] - Full year verification and certification services revenue was up 6% to 20.6 million from 19.4million[9]−Productrevenueforthefullyearwasdown519.4 million [9] - Product revenue for the full year was down 5% to 3.8 million from 4million[10]MarketDataandKeyMetricsChanges−Thetraditionalbeef−relatedsourceandagebusinesshasbeenimpactedbycyclicalherdsizereductions[10]−Risingdemandinotherserviceofferingshasoffsetlowersourceandageactivities[11]−TheUpcycledCertifiedprogramsawa174 million [10] Market Data and Key Metrics Changes - The traditional beef-related source and age business has been impacted by cyclical herd size reductions [10] - Rising demand in other service offerings has offset lower source and age activities [11] - The Upcycled Certified program saw a 17% year-over-year increase in 2024, becoming the fastest-growing service [13] Company Strategy and Development Direction - The company is focused on enhancing its technology platform and expanding its services portfolio [14][20] - Plans to continue investing in new programs and services to strengthen the beef business and accelerate growth in other offerings [17] - The company aims to leverage its position as a provider for producers, CPGs, distributors, and retailers [22] Management Comments on Operating Environment and Future Outlook - Management believes the decline in beef source and age verifications is a temporary cyclical occurrence [11] - The company is supported by consumer trends around food safety, traceability, and claims verification [21] - Management expressed confidence in the potential for strong growth in individual standards and new offerings [23] Other Important Information - The company repurchased a total of 273,057 shares for 3.3 million or approximately 11.97pershare[16]−Totalvaluereturnedtostockholdersviabuybacksanddividendsoverthepast21quarterstotaled11.97 per share [16] - Total value returned to stockholders via buybacks and dividends over the past 21 quarters totaled 13.9 million [17] - The company celebrated its 30th anniversary, highlighting its evolution and growth in the industry [18] Q&A Session Summary - No specific questions or answers were documented in the provided content.