Vibe Growth Stock Spikes Post Q1 Earnings, Revenue Continues To Drop As CEO Touts 'Encouraging' Margins

Vertically integrated cannabis company Vibe Growth Corporation VIBE VIBEF announced on Tuesday its financial results for the three months ended March 31, 2023.

Over the first quarter of 2023, the Sacramento, California-based company implemented efficiency and cost-savings initiatives that resulted in "encouraging" gross margin improvements, a trend Vibe CEO Mark Waldron expects to continue seeing in the future.

"In the second half of 2023 - through new retail sales initiatives, improved cost controls, and new business efficiencies - Vibe should be able to increase gross margins further as it sets a course toward profitability," Waldron said

Other Q1 Financial Highlights

• Gross margin was $1.48 million, compared to $702,301 in the prior quarter and $1.95 million in the same period of 2022.
• Total revenue, a non-GAAP measure, totaled roughly $4 million, representing a year-over-year and sequential decrease of approximately 30% and 14%, respectively.
• Net loss, a non-GAAP measure, amounted to $1.15 million, representing an increase from $990,468 net loss in the corresponding quarter of last year and a decrease from $6.68 million in the prior quarter.
• Adjusted EBITDA, a non-GAAP measure, came in negative at $368,255 compared to an adjusted EBITDA loss of $58,360 in the first quarter of 2022 and a $2.7 million loss in the prior quarter.
• Cash position as of December 31, 2022, was $3.87 million.

VIBEF Price Action

Vibe Growth's shares traded 61.53% higher at $0.0681 per share at the time of writing on Wednesday.

Related News

• Vibe Growth Q2 Revenue Drops 26% YoY, What About Adjusted EBITDA?
• Vibe Growth Q3 Revenue Declines 3.6% Sequentially To $5.5M

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