Mary Jones Cannabis Sodas' Revenue Drop, Q3 Was 'More Challenging Than Expected,' CEO Says

Zinger Key Points
  • Jones Soda's revenue amounted to $4.5 million in the third quarter compared to $4.8 million, in the prior year’s period.
  • Net loss improved to $0.9 million year-over-year to a net loss of $1.7 million.

Jones Soda Co. JSDA JSDA reported its financial results on Thursday for the third quarter ended September 30, 2023.

“While the third quarter was more challenging than originally anticipated, we continued to make noteworthy progress towards profitability and I believe we are setting the stage for encouraging growth initiatives in 2024,” David Knight, president and CEO of Jones Soda, said. “Looking at Mary Jones, we grew our cannabis-related revenue by 93% year-over-year as we continue to take market share and launch new products in California.”

Q3 2023 Financial Highlights

  • Revenue was $4.5 million compared to $4.8 million, in the prior year’s period.
  • Revenue from the company’s Mary Jones cannabis business totaled roughly $220,000.
  • Gross profit as a percentage of revenue increased 600 basis points to 32.9% compared to 26.9% in the third quarter of 2022.
  • Net loss improved to $0.9 million year-over-year to a net loss of $1.7 million.
  • Adjusted EBITDA came in negative at approximately $862,000 compared to a $980,000 adjusted EBITDA loss in the prior year’s period.
  • On September 30, 2023, cash and cash equivalents totaled $5.2 million compared to $5.1 million on June 30, 2023, and $8 million on Dec. 31, 2022.

“We currently expect to be up and running in Michigan by the end of the fourth quarter and live in Nevada by early 2024,” Knight said. “Our team has been working hard bringing our cannabis-infused flavors to market in different formats, and we expect to announce some exciting new growth initiatives for this business in the coming months.”

JSDA Price Action

Jones Soda’s shares traded 5.2941% higher at $0.179 per share at the time of writing on Friday.

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Posted In: CannabisEarningsNewsPenny StocksMarketsDavid Knightpremiumthird quarter earnings
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