Charlotte's Web Holdings, Inc. reported a decline in financial performance for the third quarter of 2024, with total revenue of $12.6 million, down 11.9% from $14.3 million in the same period last year. For the nine months ending September 30, 2024, revenue decreased by 21.8% to $37 million compared to $47.3 million in the prior year. The company experienced an operating loss of $6 million for the quarter, an improvement from a loss of $12 million in the same quarter of 2023. The net loss for the third quarter was $5.8 million, compared to a loss of $15.1 million in the prior year.
The company's financial position showed significant changes, with total assets decreasing to $119.6 million from $152.5 million at the end of 2023. Current assets also fell sharply, from $78.2 million to $50 million, primarily due to a reduction in cash and cash equivalents, which dropped from $47.8 million to $24.6 million. Shareholders' equity decreased to $30.2 million from $55.6 million, reflecting an accumulated deficit that increased to $298.2 million.
Strategically, Charlotte's Web has focused on product innovation and brand consolidation. The company launched Stay Asleep Cannabinol (CBN) gummies, which are positioned as a natural sleep aid. Additionally, the company has consolidated its CBD Medic and CBD Clinic brands under the Charlotte's Web umbrella to enhance brand recognition. The company also added Walmart as a retail partner, expanding its distribution network to 827 stores across five states.
Operationally, the company reported a decrease in direct-to-consumer (DTC) revenue by 13.4% year-over-year, attributed to lower online traffic and a transition to a new e-commerce platform. Business-to-business (B2B) revenue also fell by 10.7%, impacted by reduced shelf space for CBD products in retail locations. Despite these challenges, the company noted a 2.4% increase in total revenue quarter-over-quarter, indicating a potential stabilization in sales. The company continues to invest in research and development to explore new product opportunities and expand its market presence.
Looking ahead, Charlotte's Web anticipates ongoing challenges due to regulatory changes in several states affecting product formulations and sales. The company is committed to adapting its operations to meet these new requirements while focusing on cost management and operational efficiencies to improve profitability. Management expects selling, general, and administrative expenses to be significantly lower compared to 2023, which may help enhance cash flow and support future growth initiatives.
About Charlotte's Web Holdings, Inc.
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