Zevia PBC

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jean and Chief Executive Officer and Geer Satya, Chief Financial Officer and Principal Accountant Officer. By now, everyone knows that all financial information presented on today's call is unaudited.

Certain comments made on this call include forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described on these forward-looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. During the call, we will use some non-GAAP financial measures as we describe business performance, the SEC filings, as well as the earnings press release presentation slides that accompanies Today's comments and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are all available on our website at investors.dba.com. And now I'd like to turn the call over to Amy Taylor.

Thank you, Jane. Good afternoon, everyone, and thank you for joining us for our first quarter 2025 Earnings Profit Call. I'm incredibly proud of the strong execution demonstrated by our team in the first quarter. We delivered net sales at the high end of our guidance range and meaningfully exceeded our adjusted EBITDA expectations. Our productivity initiative continues to deliver cost savings that fuel investment into building our brand while moving us closer to profitability. We are gaining traction despite the uncertain macro environment and highly competitive category. So briefly highlighting our financial results, first quarter net sales were $38 million. gross margin hit a record of over 50% and adjusted EBITDA improved by $2.2 million to negative $3.3 million. We also made great progress in advancing our strategic growth pillars. First, we sharpened our brand identity and strengthened our marketing approach to drive engagement with lighthearted campaigns that highlight Zevia as a naturally sweetened, affordable alternative to sugary soda. Second, We raised the bar on product innovation with a more sugar-like taste experience that we are rolling out in exciting new flavors as well as in some of our legacy sodas. And third, we expanded distribution through existing and new retail partners, building on-shelf visibility and inviting trial through new packaging options. Building brand awareness takes time, but we remain optimistic about our future for three reasons. First, the robust growth outlook for the better-for-you beverage category. Second, our unique market positioning with great tasting, clean label, zero sugar soda at an affordable price. And then third, the green shoots we are seeing in our business. Turning to our first growth pillar, marketing, we are focused on raising brand awareness with a sharper brand identity. We are bringing the Zevia brand to life through fun and engaging campaigns that we believe have broad relevance and cultural appeal. In March, we launched a new campaign featuring the highly popular crossover artist Jelly Roll. who has been actively sharing his journey toward living a healthier lifestyle. The advertising campaign, entitled Get the Fake Out of Here, was another lighthearted parody of artificiality, building on our holiday campaign, but this time hooking a little fun at celebrity endorsements. The campaign extended its reach way beyond paid media, with social and editorial impact proving that the creative was compelling to a broad audience. The campaign was also covered by People Magazine and several other broad-reaching mainstream digital media channels. The ad is currently running on broadcast and streaming channels, including spots on American Idol for a 12-week period, and is activated across TikTok, Instagram, and other social channels. And finally, we activated On the Ground with a Zevia pit stop reminiscent of the ad's gas station setting at events like South by Southwest in March and at various 5K and other events with Jelly Roll over the last few months. The campaign delivered a record of 2.4 billion earned impressions and the most shared and most engaging content in previous history. We will build on this momentum and look forward to sharing more details on our summer campaign as we continue to pulse new creative, inviting consumers to take a break from artificial. With respect to our second strategic growth pillar, product innovation, we are raising the taste profile of our zero sugar sodas. Creamy root beer and our unique limited edition offering, Salted Caramel, have garnered strong responses and consistently outperformed taste tests. In conjunction with these successes, we are expanding this more sugar-like taste experience into new flavors, as well as into some of our legacy sodas. In time for the important summer season, we are very encouraged by the better-than-planned initial sales performance of our newest flavor, Strawberry Lemon Burst. which in testing received the highest purchase intent score in Zevia's history. This highly anticipated launch will be at the center of our summer campaign. And then exclusive to Sprouts, Orange Creamsicle is also available now. And there's more to come as a part of Zevia's rapid innovation efforts to support expanding the user base. And then finally, we plan to build on the success we saw at Walmart with Variety Packs. We are now rolling out a 12-count variety pack across approximately 80% of our grocery and natural channel stores through Q2 during spring reset. So turning now to our final strategic growth pillar, distribution. We remain optimistic about our strong performance at Walmart since the launch of the Modern Soda set across all U.S. stores. We believe that Walmart's Better for You Soda initiative will help to raise awareness and increase the consumer base both for the category and for the Zevia brand. Our new variety pack, supportive of driving trials, has been and continues to be the top-selling ZBSQ since its launch. We'll be introducing an additional variety pack and new flavors at Walmart in the coming months, as innovation remains key in this fast-growing competitive category. In the food channel, Albertsons has launched its own better-for-you soda set with Next Gen Bev. We believe the Zevia strong brand block at eye level in a vertical shelf position sets us up well to capitalize on this expansion. Very early reads, including the same store sales lift and trial of new products, are very encouraging. And then in the drug channel, Zevia gained new distribution across nearly 8,000 Walgreens stores. The assortment features six flavors in one variety pack and will additionally be on an end cap featuring summer beverages starting at the end of May. In convenience, we're executing new distribution across a number of regional players and two national banners on a regional basis. Each of these represents an opportunity to test and learn with our sleek, single-serve soda offering and with variable merchandising approaches. This small footprint with top operators and regional chains can help inform a broader rollout both for the brand and the category in convenience. And then lastly on distribution, our DSD or direct store delivery strategy continues to unlock improved in-store presence and new channel distribution with a focus for now on the West Coast. We're encouraged to see that our test market in the Northwest continues to outperform rest of market. And in April, we launched Crescent Crown in Arizona with neighboring states to follow in parallel with new single distribution commitment at retail. So in closing, we remain bullish on Zevia's competitive position with an enjoyable, healthier, and more affordable offering in a moment when consumers are more focused on health and clean label products than ever. We're encouraged by the early proof points we're seeing across our strategic growth pillars as we continue to work to strengthen our foundation for future growth. And so with that, I'll turn the call over to Girish.