Loading...
•
Mar 31, 2024
Honest Co Q1 2024 Earnings Report
Honest Co's Q1 2024 results showcased revenue growth and profitability improvement, driven by transformation pillars and achieving a gross margin of 37%.
Key Takeaways
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.
Forward Guidance
The company reaffirmed its financial outlook for the full fiscal year 2024 for revenue and Adjusted EBITDA.
Positive Outlook
- Net revenue growth of low-to-mid single digit percentage.
- Positive Adjusted EBITDA in the low-single digit to mid-single digit millions range.
- Confident in long-term strategy beyond 2024 of 4% to 6% annual revenue growth.
- Continued Adjusted EBITDA margin expansion.
- Reaffirming full year 2024 financial outlook.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...