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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.
Honest Co
Honest Co
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.