Beyond Meat Inc. (NASDAQ:BYND), the company that produces plant-based versions of chicken, ground beef and sausage, said on Monday that the net loss during the second quarter exceeded analyst estimates.
The El Segundo, California-based company reported a net loss of $9.4 million, or 24 cents in loss per share, compared with a net loss of $7.4 million, or $1.22 in loss per share, in second-quarter 2018.
Company revenues increase but net loss widens
Beyond Meat reported net revenue of $67.3 million, up 287% from the prior-year quarter net revenue of $17.4 million.
Beyond Meat CEO Ethan Brown said during the earnings call that continued innovation and the development of the company's major products drove revenue growth during the quarter. Brown listed several new versions of the company's existing products, including Beyond Burger, as well as new products through partnerships with companies like Del Taco Restaurants Inc. (NASDAQ:TACO): Beyond Taco and Beyond Breakfast Sausage.
Brown said the company is "closing the gap" between the plant-based versions of meat with the animal-based versions of meat. During the question-and-answer session, the CEO said although the company is approximately 75% of the way, the remaining 25% might require more input.
Despite strong revenue growth, the net loss for the quarter increased primarily due to an $11.7 million noncash charge as a result of the remeasurement of warrant liabilities in connection with the company's IPO.
Stock tumbles on secondary public offering announcement
Shares of Beyond Meat tumbled during aftermarket trading, trading over 10% below the closing price of $222.13 and below $200 per share.
The company issued 11,068,750 common stock shares on May 6 in an initial public offering at $25 per share. On July 26, the stock reached an all-time high of $234.90, over nine times the IPO price and three times the May 6 closing price of $74.79.
Shares outstanding increased to 60,122,797 on May 31: Chief Financial Officer Mark Nelson said the increase in shares were due to conversions in the company's preferred shares and convertible bonds.
On Monday, Beyond Meat announced a second public offering of 3,250,000 shares, of which 3 million are from the company's selling stockholders. The company is not expected to receive any proceeds from the sale.
Disclosure: No positions.
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