ChromaDex Corporation (NASDAQ:CDXC) Q3 2023 Earnings Call Transcript

Rob Fried : We’ve put many more much more resources over the last two years into Amazon than we have our own website Shopify. So Amazon has actually become more efficient than Shopify over the last couple years, but we’ve begun to turn that around. And what we are now doing is putting more of our resources into Shopify, and we expect to be Shopify to be a more significant engine for growth for us in the future. And when I say Shopify, I’m referring to our website than Amazon. So the team that we’re building the team, we’re putting more advertising revenues into it, we’re optimizing the site. We see there’s an opportunity. And I know we’ve said that before. So that’s what we mean when we say it’s taking a little bit longer, but we are seeing some significant progress in important KPIs performance metrics, in the website.

Mitch Pinheiro : Okay, and then just one more question. Just one Watson’s. Can you talk a little bit more about Watson’s in terms of like how many stores were in? And then are there plans to expand beyond the Hong Kong, Singapore, and Taiwan area in 2024?

Rob Fried : They are considering two additional territories, but they have not committed to it yet. So we don’t know.

Mitch Pinheiro : But given it seems like they’re pretty happy with the product is what’s sort of the gating factor for further store growth?

Rob Fried : It has to do with the structure of Watson’s as a company. These are independently operated businesses. So it’s not really centralized. The separate countries. I think more realistic would be expansion within the existing stores have expanded product offerings, which they are interested in doing.

Mitch Pinheiro: All right. Well, thank you. I appreciate the question.

Operator: Your next question will come from the line at the JP Mark, with Farmhouse Equity Research. Please go ahead.

JP Mark : Hi, Rob and Briana. Question for you about the Tru Niagen pro product which I was delighted to see you had recently launched and wanted to know what your expectations are for the rollout of that and I saw that you had it’s been certified for Sport by the NSF International. Are you kind of leading with MLB and NHO hoping that they’ll kind of be using the product or is that just incidental?

Rob Fried : No, it’s not incidental. There are many professional athletes that take Tru Niagen today, as you probably know, and there are several teams that give it out to each of their players, and they’re giving out 1000 milligrams. There are also most of the studies that get published if you’ve seen our on 1000 milligrams and we all take 1000 milligrams. So we thought we’d make 1000 milligrams available to the general consumer, since that’s what the experts are taking. That’s what the research shows. And that’s why we launched the product.

JP Mark: And is that going to be going out through — this is my follow up question, through the channels for physicians and clinics? Is that sort of the main product we’ll be selling to them? Or are you already doing that?

Rob Fried : Yes, it is.

JP Mark: Okay, thank you very much.

Operator: Our final question will come from the line of Matt Dhane with Tieton Capital Management. Please go ahead.

Matt Dhane: Thank you. I wanted to ask a little bit more about your website, too. You mentioned, Rob that you’re starting to see some of the key performance indicators that turn the corner. I was curious. So with those initial signs, what it sort of your expectation for when that’s really going to play out and start driving the sales growth that you expect out of your own website?

Rob Fried : First question, what are the key indicators. So our conversion rate is actually extremely high on our website. But the amount of traffic, the amount of traffic needs to increase. Now part of the reason why the conversion rate is so high is because we’ve spent months now optimizing it, targeting cohort groups and targeting the messaging. So it is working. But what it needs to do is scale. I expect it to scale. I’d like to say the first quarter. Hopefully by the first quarter, we’ll see some significant growth in the website sales.