Mar 31, 2022

Allbirds Q1 2022 Earnings Report

Reported strong first quarter performance with a 26% increase in net revenue, driven by growth in the U.S. market, but impacted by international headwinds.

Key Takeaways

Allbirds reported a 26% increase in net revenue to $62.8 million for Q1 2022, driven by strong growth in the U.S. market. The company's gross profit increased by 26% to $32.6 million, with a gross margin of 51.9%. However, the company experienced a GAAP net loss of $21.9 million and an adjusted EBITDA loss of $12.2 million, impacted by international headwinds and increased operating expenses.

Net revenue increased 26% to $62.8 million compared to Q1 2021.

Gross profit increased 26% to $32.6 million compared to Q1 2021, with a gross margin of 51.9%.

GAAP net loss was $21.9 million, or $0.15 per share.

U.S. net revenue increased 35% to $48.9 million compared to Q1 2021.

Total Revenue
$62.8M
Previous year: $49.6M
+26.4%
EPS
-$3
Previous year: -$5
-40.0%
Gross Margin
51.9%
Previous year: 52%
-0.2%
Gross Profit
$32.6M
Previous year: $25.8M
+26.2%
Cash and Equivalents
$240M
Previous year: $99.4M
+141.3%
Free Cash Flow
-$48.8M
Previous year: -$27.7M
+76.2%
Total Assets
$451M

Allbirds

Allbirds

Allbirds Revenue by Geographic Location

Forward Guidance

Allbirds expects net revenue of $75 million to $79 million for the second quarter of 2022, representing growth of 10% to 16% versus Q2 2021. The company anticipates external headwinds will continue to impact the international business, and updated 2022 guidance targets reflect a more cautious outlook.

Positive Outlook

  • Underlying strength of the business model.
  • Strong execution by the teams.
  • Confidence in achieving medium-term financial targets.
  • Expected net revenue growth of 20% to 30%.
  • Gross margin of 60%+

Challenges Ahead

  • External headwinds impacting international business.
  • More cautious outlook in updated 2022 guidance targets.
  • Adjusted EBITDA of negative $14 million to negative $11 million for Q2 2022.
  • Includes an estimated $2 million of public company costs.
  • Russia’s invasion of Ukraine and COVID-19-related restrictions in China