How did BRFH's revenue and expenses trend in Q4 2024?

Barfresh Food Group Inc (BRFH) experienced a significant increase in revenue but corresponding rise in expenses in Q4 2024, leading to a reported net loss. 1. **Revenue Trend**: BRFH's revenue rose by 46.7% to $2.79 million in Q4 2024, compared to the same quarter last year. This marked a notable growth, especially considering the previous quarter's revenue of over $3.6 million, which represented a 40% increase from the same period in the prior year. The new product initiatives, such as the 'Pop and Go' product, and the expansion of the sales network contributed significantly to this revenue growth. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |BRFH|BRFH.O|Barfresh Food|2024 Q1|49.493813273340834|-449000|186| |BRFH|BRFH.O|Barfresh Food|2024 Q2|-36.253369272237194|-1011000|186| |BRFH|BRFH.O|Barfresh Food|2024 Q3|-7.773109243697479|-513000|186| |BRFH|BRFH.O|Barfresh Food|2024 Q4|-21.540656205420827|-852000|186| |code|Ticker|Name|Date|Gross PP&E|Operating Expenses|market_code| |---|---|---|---|---|---|---| |BRFH|BRFH.O|Barfresh Food|2024 Q1|2950000||186| |BRFH|BRFH.O|Barfresh Food|2024 Q2|2954000||186| |BRFH|BRFH.O|Barfresh Food|2024 Q3|3095000||186| |BRFH|BRFH.O|Barfresh Food|2024 Q4|2926000||186| 2. **Expense Trend**: Despite the revenue growth, Barfresh Food Group Inc saw an increase in operating expenses. The gross expenses were comparable to the prior year at 35%, but the adjusted gross margin improved to 38% due to a favorable product mix and pricing actions. The selling, marketing, and distribution expense increased to $990,000 from $697,000, primarily due to higher personnel costs, travel, broker commissions, and freight costs. General and administrative expenses also rose to $705,000 from $577,000, mainly because of the non-recurrence of employee retention tax credit benefits. 3. **Net Income**: The net loss for the quarter was $852 thousand, which resulted in an EPS loss of 6 cents per share. This was a slight increase in net loss compared to the same quarter last year, when the company reported a net loss of $476,000. The adjusted EBITDA for the quarter was also negative, with a loss of approximately $124,000, compared to a loss of $89,000 in the prior year period. 4. **Analyst Expectations**: Analysts had expected a revenue of $4.17 million for the quarter, which was slightly higher than the actual revenue of $2.79 million. This discrepancy could be attributed to the timing of orders or the distribution of products. The mean earnings estimate of analysts remained unchanged in the last three months, with no negative revisions in the last 30 days. The current average analyst rating on the shares is "buy," indicating optimism about the company's future prospects. In conclusion, while BRFH saw a substantial rise in revenue, the increase in operating expenses, including selling, marketing, and general administrative costs, outpaced the revenue growth, resulting in a net loss for the quarter. The company's strategic expansions and new product initiatives are positive signs for future growth, but they also require careful management of costs to achieve profitability.