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Sep 30, 2021

Allbirds Q3 2021 Earnings Report

Allbirds reported strong Q3 2021 performance with revenue growth and gross margin expansion.

Key Takeaways

Allbirds' Q3 2021 net revenue increased by 33% year-over-year to $62.7 million. Gross profit rose by 36% to $33.9 million, with a gross margin of 54.1%. The company's GAAP net loss was $13.8 million, and the adjusted EBITDA loss was $6.3 million. Allbirds opened four new stores during the quarter, bringing the total to 31 locations.

Net revenue increased 33% year-over-year to $62.7 million.

Gross profit increased 36% year-over-year to $33.9 million, with gross margin expanding to 54.1%.

GAAP net loss was $13.8 million, or $0.25 per share.

Opened four stores, ending the quarter with 31 locations.

Total Revenue
$62.7M
Previous year: $140M
-55.2%
EPS
-$5
Previous year: -$6.2
-19.4%
Gross Margin
54.1%
Previous year: 52.9%
+2.3%
Marketing Expenses as % of Revenue
20.4%
Previous year: 25.7%
-20.6%
Gross Profit
$33.9M
Previous year: $25M
+35.6%
Cash and Equivalents
$65.4M
Previous year: $139M
-52.9%
Free Cash Flow
-$29.3M
Previous year: -$51.6M
-43.1%
Total Assets
$250M

Allbirds

Allbirds

Allbirds Revenue by Geographic Location

Forward Guidance

Allbirds provided its outlook for fiscal year 2021, projecting net revenue between $270 million and $272 million, representing growth of 23% to 24% versus fiscal 2020 and Adjusted EBITDA of negative $17 million to $15 million, including an estimated $5 million of public company costs.

Positive Outlook

  • Net revenue of $270 million to $272 million
  • Revenue growth of 23% to 24% versus fiscal 2020
  • Revenue growth of 39% to 40% versus fiscal 2019
  • Gross margin expansion
  • Improved marketing efficiency

Challenges Ahead

  • Adjusted EBITDA of negative $17 million to $15 million
  • Includes an estimated $5 million of public company costs
  • Dynamic macro environment
  • Longer ocean shipping lead times
  • Building inventories in response to strong consumer demand ahead of the holiday selling season

Revenue & Expenses

Visualization of income flow from segment revenue to net income