The Real Good Food Company reports Q3 results; reaffirms FY22 and issues FY23 and beyond guidance

• The Real Good Food Company press release (NASDAQ:RGF): Q3 net loss increased by $1.3 million to $13.1 million in the third quarter of 2022, as compared to $11.8 million in the third quarter of 2021.
• Revenue of $37.6M (+63.5% Y/Y) misses by $2.3M.
• Adjusted EBITDA, a non-GAAP term, totaled a loss of $3.8 million in the third quarter of 2022, as compared to a loss of $2.7 million in the third quarter of 2021.
• Outlook: The Company is maintaining its guidance for the year ending December 31, 2022: Net sales to be at the lower end of the guided range of approximately $155 million to $160 million vs. consensus of $155.70M, reflecting an increase of 84% to 90% as compared to 2021; Adjusted gross margin in the range of 19% to 21%; Adjusted EBITDA loss to be at the lower end of the guided range of approximately $7.0 million to $9.0 million.
• The Company is also providing preliminary guidance for the year ending December 31, 2023: Net sales of at least $200 million vs. consensus of $192.83M; Adjusted gross margin of at least 24%; Adjusted EBITDA in the mid-to-high single-digit millions range.
• Long-term, the company continues to expect: Net sales of approximately $500 million; Adjusted gross margin of 35% and Adjusted EBITDA margin of 15%