The following is a summary of the Charlotte's Web Holdings, Inc. (CWBHF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Charlotte's Web observed a net revenue of $63.2 million, reflecting a decrease of 14.8% year over year.

• Declining traffic and high online competition resulted in a decrease in e-commerce revenue to $42.6 million.

• B2B net revenue declined by 12.4% and amounted to $20.6 million, this was largely due to multiple retail customers reducing their shelf space or exiting the CBD category.

• Despite these challenges, the company managed to maintain a healthy gross margin of 57.9% for Q4 and 58% for the full year when inventory provisions are excluded.

• There was an improvement in operating losses from the previous year, with a reported loss of $10.3 million for Q4.

Business Progress:

• The company has taken significant strategic steps including introducing a turnaround initiative known as True North which focuses on improving consumer experiences, enhancing partner relationships, revising the brand voice, and improving operating efficiencies.

• Charlotte's Web has shifted its mission to include more than just CBD and is using data analytics to launch new value-added products like 'The stay asleep CBN gummy'.

• Charlotte's Web is also revamping its e-commerce platform for an enhanced consumer experience and simplifying its brand architecture for ease of navigation.

• The company continues to build stronger brand partnerships and increase its brand visibility through marketing initiatives such as connected TV commercials.

• The planned deployment of a new e-commerce platform on Shopify in Q2 and reconfiguring of the IT stack to deploy a new CRM system are aimed at boosting D2C operations.

• To optimize returns on marketing investments, the company is focusing on brand consolidation under the core Charlotte's Web brand.

• Recognizing the growth potential in the medical market, the company plans to leverage this in the coming quarters.

More details: CHARLOTTES WEB HOLDINGS INC IR

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