The Honest Company reported a 3% increase in revenue to $86 million, driven by growth in baby apparel, wipes, and baby personal care. Gross margin improved to 37%, and the company achieved a net loss of $1 million, a significant improvement from the $19 million loss in the same quarter last year. Adjusted EBITDA was positive $3 million, marking the second consecutive quarter of positive adjusted EBITDA.
Revenue increased by 3% to $86 million, driven by growth in baby apparel, wipes, and baby personal care.
Gross margin reached a record 37%, a 1,275 basis points increase year-over-year, due to lower transportation costs, price increases, and efficient trade spending.
Operating expenses decreased by $6 million compared to the first quarter of 2023, reflecting operating discipline.
Net loss improved significantly to $1 million compared to a net loss of $19 million in the first quarter of 2023.
The company reaffirmed its financial outlook for the full fiscal year 2024 for revenue and Adjusted EBITDA.
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