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Sep 30, 2022

Allbirds Q3 2022 Earnings Report

Reported strong financial results, exceeding adjusted revenue and adjusted EBITDA guidance targets, while delivering on sustainability goals.

Key Takeaways

Allbirds reported a 16% increase in net revenue to $72.7 million year-over-year for the third quarter of 2022. The company's U.S. physical retail channel sales grew 53% compared to 2021, with the opening of six new stores in the United States during the quarter. GAAP net loss was $25.2 million, or $0.17 per basic and diluted share, while adjusted net loss was $22.4 million, or $0.15 per basic and diluted share.

Net revenue increased 16% to $72.7 million year over year.

U.S. physical retail channel sales grew 53% compared to 2021.

GAAP net loss of $25.2 million, or $0.17 per basic and diluted share.

Launched 100% plastic-free, 100% vegan plant leather.

Total Revenue
$72.7M
Previous year: $62.7M
+15.9%
EPS
-$3
Previous year: -$5
-40.0%
Gross Profit
$32.5M
Previous year: $33.9M
-4.0%
Cash and Equivalents
$181M
Previous year: $65.4M
+176.5%
Free Cash Flow
-$25.9M
Previous year: -$29.3M
-11.7%
Total Assets
$414M
Previous year: $250M
+65.6%

Allbirds

Allbirds

Allbirds Revenue by Geographic Location

Forward Guidance

Allbirds is maintaining its guidance targets for full year 2022 which exclude any non-recurring revenue and costs associated with its simplification initiatives.

Positive Outlook

  • Adjusted net revenue of $305 million to $315 million, representing growth in the range of 10% to 14% versus fiscal 2021.
  • Adjusted gross profit of $150.0 million to $157.5 million, which at the midpoint represents a gross margin of 49.6%.
  • Adjusted EBITDA loss of $42.5 million to $37.5 million.
  • Carbon footprint reduction target of 6% against our 2021 baseline for our top 10 products.
  • Adjusted net revenue of $92 million to $102 million for Q4 2022.

Challenges Ahead

  • Includes an estimated FX impact of 275-350 bps, versus fiscal 2021.
  • Includes an estimated $8 million of recurring public company costs.
  • Adjusted net revenue represents growth in the range of (5)% to 5% versus the fourth quarter of fiscal 2021.
  • Adjusted EBITDA loss of $8.5 million to $3.5 million for Q4 2022.
  • Macro headwinds are expected to persist into year end and 2023.