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Mar 31, 2023

Allbirds Q1 2023 Earnings Report

Reported financial results for the first quarter ended March 31, 2023, exceeding Q1 2023 guidance targets while executing Strategic Transformation plan.

Key Takeaways

Allbirds reported a decrease in net revenue by 13.4% to $54.4 million compared to 2022, but an increase of 9.5% compared to 2021. The company experienced a net loss of $35.2 million, or $0.23 per share, and an adjusted EBITDA loss of $21.7 million. They are executing a strategic transformation plan to reignite growth, improve capital efficiency, and drive profitability.

Net revenue decreased 13.4% to $54.4 million compared to 2022 and increased 9.5% compared to 2021.

Net loss of $35.2 million, or $0.23 per basic and diluted share.

Adjusted EBITDA loss of $21.7 million.

Significant improvement in Q1 cash usage, down 50.6% compared to Q1 2022.

Total Revenue
$54.4M
Previous year: $62.8M
-13.4%
EPS
-$4.2
Previous year: -$3
+40.0%
Gross Margin
40.1%
Previous year: 51.9%
-22.7%
Gross Profit
$21.8M
Previous year: $32.6M
-33.1%
Cash and Equivalents
$143M
Previous year: $240M
-40.2%
Free Cash Flow
-$23.9M
Previous year: -$48.8M
-51.0%
Total Assets
$429M
Previous year: $451M
-4.9%

Allbirds

Allbirds

Allbirds Revenue by Geographic Location

Forward Guidance

Allbirds is providing financial guidance for the second quarter of 2023.

Positive Outlook

  • Net revenue of $64 million to $69 million.
  • Strategic Transformation to Drive Sustained and Profitable Growth
  • Reignite product and brand
  • Optimize U.S. stores and slow pace of openings.
  • Evaluate transition of international go-to-market strategy

Challenges Ahead

  • Net revenue decrease of 18% to 12% versus the 2nd quarter of fiscal 2022.
  • Adjusted EBITDA loss of $20 million to $23 million.
  • Decrease in average selling price
  • Higher mix of third party sales
  • Foreign exchange impact