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Mar 31, 2020

Purple Q1 2020 Earnings Report

Reported record first quarter results with net revenue increased and net income improved.

Key Takeaways

Purple Innovation reported a strong first quarter with a 46% increase in net revenue to $122.4 million and a net income of $20.0 million. The company successfully navigated the challenges posed by the COVID-19 pandemic by focusing on its digital channel and managing its supply chain effectively.

Net revenue increased by 46% to $122.4 million compared to the first quarter of 2019.

Net income improved to $20.0 million, a significant turnaround from the net loss of $(0.7) million in the same period last year.

Gross margin improved to 43.5% due to efficiencies in operations, logistics, and favorable product and channel mix.

The company adapted quickly to increased demand and shifts in product-mix, with domestic production facilities reducing vulnerability to global supply chain disruptions.

Total Revenue
$122M
Previous year: $83.6M
+46.3%
EPS
$0.11
Previous year: -$0.02
-650.0%
Gross Margin
43.5%
Previous year: 40.7%
+6.9%
Adjusted EBITDA
$10.6M
Previous year: $6.2M
+71.0%
Gross Profit
$53.2M
Previous year: $34.1M
+56.1%
Cash and Equivalents
$26.4M
Previous year: $12.2M
+116.7%
Free Cash Flow
-$4.78M
Previous year: -$9.22M
-48.1%
Total Assets
$138M
Previous year: $84.4M
+63.3%

Purple

Purple

Purple Revenue by Segment

Forward Guidance

The Company previously withdrew guidance as a result of uncertainty due to the COVID-19 pandemic. Due to the continued uncertainty in the overall economy, the Company is not providing an update at this time.