Charlotte's Web Holdings, Inc.

Good morning, ladies and gentlemen, and welcome to the Charlotte's Web Holdings, Inc. 2024 First Quarter Conference Call. At this time, our lines are in lesson only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, May 8th, 2024. I would now like to turn the conference over to Corey Pala, Head of Investor Relations. Please go ahead.

Thank you and good morning everyone. Thank you for joining us for our 2024 first quarter earnings conference call for Charlotte's Web Holdings Inc. Earnings press release was issued this morning and posted on the investor relations section of our website along with our financial statements. Our 10Q report for the quarter is also available and has been filed on CDARplus.com in Canada and in the U.S. with Edgar and the SEC. CEO Bill Marachnik and CFO Jessica Saxton are leading our call this morning. On this morning's call, we'll review the financial results of the quarter and provide some color around the business and our outlook. We'll take questions from our analysts at the end of our prepared remarks. A replay of this call will be available through the next week, accessible via the details provided in our earnings release. Additionally, a webcast replay of this call will be available for an extended period, accessible through the IR section of our website at charlottesweb.com. As a reminder to our listeners, certain statements made on today's call, including answers we may provide to certain questions, may include content that is forward-looking in nature and, therefore, subject to risks and uncertainties and factors which could cause actual future results or company performance to differ materially from implied expectations. Such risks surrounding forward-looking statements are outlined in detail within the company's regulatory filings. In addition, during the call, we'll refer to supplemental non-GAAP accounting measures, including adjusted EBITDA, which does not have any standardized meaning prescribed by GAAP. Please refer to the earnings release that we filed this morning for a description of adjusted EBITDA, as well as a reconciliation of such measures to the respective and most directly comparable GAAP financial measures. And now I'll hand over the call to Charlotte's Web Chief Executive Officer, Bill Marachnik.

Thanks, Corey. Good morning, everyone, and thank you for joining us today. So let's dive into our first quarter results and provide some insight into how we're moving forward with our company-wide turnaround initiatives. We outlined our true north pillars on our year-end call in March, and as promised, we'll be updating you on each of those initiatives and where we stand. Just as a quick reminder, these initiatives include, one, transforming the consumer experience end-to-end, two, being the most trusted and valued partner among retailers and distributors. Three, reinforcing and amplifying CW's influential voice. And lastly, continuing to identify costs and operating efficiencies. Despite making good progress on our True North initiatives, the first quarter of 2024 was not what we wanted from a revenue standpoint at all. marked by weak year-over-year sales, particularly in our e-commerce business. Now, there's a number of factors that contributed to our weak sales in Q1, and they basically fell into three main buckets. First one is we pull down spend on our paid media in order to update the attribution of each program and evaluate the highest performing campaigns. Secondly, our legacy e-commerce platform limits our ability to move quickly. And third, we inadequately targeted the right products and offers to the right consumers. That said, we're laser focused on addressing these gaps, and I'll share with you the progress we're making shortly. But let me first say that I fully understand the frustration that investors are feeling as we work through these challenges. But I do want to reassure you that we are already seeing positive indicators that are expected to be the precursors to increased business results. For example, We've been actively laying the foundation to expand our offerings beyond CBD, using the recently launched Stay Asleep CBN product as an integrated part of our sleep portfolio. It's just one instance, which I'll dive into more shortly. But first, I'd like to hand over the call to our Chief Financial Officer, Jessica Saxton, to review our Q1 financial results.