Allbirds Q4 2023 Earnings Report
Key Takeaways
Allbirds reported a decrease in net revenue for both the fourth quarter and the full year 2023, alongside a net loss. However, the company significantly reduced operating cash use and finalized agreements with Australasia and Japan distributors. They are entering 2024 with a strong cash position and healthy inventory.
Fourth quarter net revenue decreased by 14.5% to $72.0 million compared to the previous year.
The company reported a fourth quarter net loss of $56.8 million, or $0.37 per basic and diluted share.
Year-end inventory was $57.8 million, representing a 51% decrease compared to the previous year.
Operating cash use significantly reduced to $4.7 million in the fourth quarter, compared to $8.4 million a year ago.
Allbirds
Allbirds
Allbirds Revenue by Geographic Location
Forward Guidance
Allbirds provided financial guidance targets for 2024, reflecting the impact of transitioning to a distributor model in international markets and the anticipated closure of 10-15 U.S. retail store locations.
Positive Outlook
- U.S. net revenue of $150 million to $165 million is expected.
- Gross margin is projected to be between 42% and 45%.
- Company expects to close 10-15 U.S. retail store locations.
- The company is providing net revenue guidance for its U.S. and international geographical markets in 2024.
- Adjusted EBITDA loss of $78 million to $63 million
Challenges Ahead
- Net revenue is expected to be $190 million to $210 million.
- International net revenue of $40 million to $45 million is expected, including $25 million to $28 million of impact resulting from anticipated transitions to a distributor model in certain international markets
- The company’s outlook for the full year reflects approximately $32-37 million of negative impact to revenue associated with the transition from a direct selling model to a distributor model in international markets
- The company’s outlook for the full year reflects negative impact to revenue associated with the anticipated closure of 10-15 Allbirds stores in 2024.
- Adjusted EBITDA2 loss of $27 million to $23 million in Q1 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income