On Monday, Zevia PBC (NYSE:ZVIA) shares experienced a significant drop, plunging as much as 19% during intraday trading, marking the steepest decline since November 13.
The nosedive in share price came after the company released projections indicating that its fourth-quarter adjusted EBITDA loss is expected to be larger than previously estimated. Zevia attributed the revision to increased investments in its holiday marketing campaign.
The company now expects fourth-quarter net sales to be approximately $39.5 million, which is within its prior forecast range of $38 million to $40 million.
However, the anticipated adjusted EBITDA loss for the same period has been revised to between $3.9 million and $4.2 million, a significant increase from the previously projected loss of $1.8 million to $2.2 million.
Looking ahead, Zevia has provided guidance for the year 2024, with expected net sales of around $155 million. This projection falls within the previously stated range of $154 million to $156 million.
Nevertheless, the company also anticipates a wider adjusted EBITDA loss for 2024, estimated to be between $15.2 million and $15.5 million.
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