Yahoo Finance Where Food Comes From, Inc. (NASDAQ:WFCF) Q1 2024 Earnings Call Transcript
Where Food Comes From, Inc. (NASDAQ:WFCF) Q1 2024 Earnings Call Transcript May 4, 2024
Where Food Comes From, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings and welcome to the Where Food Comes From First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Pfeiffer, Investor Relations. Thank you, Jay. You may begin.
Jay Pfeiffer: Good morning and welcome to the Where Food Comes From 2024 first quarter earnings call. Joining me on the call today are CEO John Saunders, President Leann Saunders, and Chief Financial Officer Danette Henning. During this call, we'll make forward-looking statements based on current expectations, estimates, and projections that are subject to risk. Statements about current and future financial performance, growth strategy, customers, business opportunities, market acceptance of our products and services, and potential acquisitions are forward-looking statements. Listeners should not place undue reliance on these statements as there are many factors that could cause actual results to differ materially from our forward-looking statements.
We encourage you to review our publicly filed documents as well as our news releases and website for more information. Today, we'll also discuss adjusted EBITDA, a non-GAAP financial measure provided to complement the GAAP results. Please refer to today's earnings release for important disclosures regarding non-GAAP measures. I'll now turn the call over to John Saunders.
A filled shopping cart with popular food and beverage items.
John Saunders: Good morning and thanks for joining the call today. This morning, we released our first quarter financial results and we're pleased to report that the renewed momentum we generated in the fourth quarter has carried into 2024. Once again, our core verification services revenue more than offset lower product sales resulting for persistent headwinds in our beef business due to cyclical cattle trends, lingering drought effects, and smaller herd sizes. As we've said before, these headwinds are likely to persist to some extent throughout 2024, but we're hopeful to see improvements starting early next year. The solid growth and verification services coupled with careful management of our cost structure also led to improved profitability year-over-year.
Our ability to continue delivering profitable growth in spite of ongoing challenges in our beef business reflects the strength and advantages of our unique business model. We are far and away the most diversified provider of food claims certifications in the United States. We provide thousands of producers, customers with best-in-class solutions to differentiate and add value to their products. These customers range from small family farms and ranches to large multinational CPGs. In turn, they respond to increasing consumer demand for products that are certified to any number of standards ranging from non-GMO, organic, and gluten-free to a growing number of sustainable-related certifications. Drilling down on our numbers for the quarter, verification and certification services revenue grew 17% to 4.4 million from 3.8 million.
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