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Mar 31, 2021

Purple Q1 2021 Earnings Report

Purple Innovation reported record first quarter results with a 52% increase in net revenue and a net income of $20.9 million.

Key Takeaways

Purple Innovation reported a strong first quarter in 2021, with net revenue increasing by 52% to $186.4 million and net income reaching $20.9 million. The company's performance was driven by strong demand across all product lines and channels, with significant growth in both DTC and wholesale revenues. Adjusted EBITDA also saw a substantial increase of 115% to $22.8 million.

Net revenue increased by 52% to $186.4 million, driven by growth in both DTC and wholesale channels.

Net income was $20.9 million for the quarter.

Gross margin improved to 46.9% due to higher DTC channel revenue and fixed cost leverage.

Adjusted EBITDA increased by 115% to $22.8 million.

Total Revenue
$186M
Previous year: $122M
+52.3%
EPS
$0.17
Previous year: $0.11
+54.5%
Gross Margin
46.9%
Previous year: 43.5%
+7.8%
Adjusted EBITDA
$22.8M
Previous year: $10.6M
+115.1%
Gross Profit
$87.5M
Previous year: $53.2M
+64.6%
Cash and Equivalents
$104M
Previous year: $26.4M
+293.2%
Free Cash Flow
-$21.7M
Previous year: -$4.78M
+353.1%
Total Assets
$567M
Previous year: $138M
+311.0%

Purple

Purple

Forward Guidance

The Company is raising its 2021 outlook. It now expects full year 2021 net revenue to be between $860 million and $900 million, up from its previous range of $840 million to $880 million. For the second quarter of 2021, the Company expects net revenue to be between $200 million to $210 million and adjusted EBITDA between $21 million and $25 million.

Positive Outlook

  • Full year 2021 net revenue is expected to be between $860 million and $900 million.
  • Adjusted EBITDA is now expected to be between $95 million and $105 million.
  • Net revenue for the second quarter of 2021 is expected to be between $200 million to $210 million.
  • Adjusted EBITDA for the second quarter of 2021 is expected to be between $21 million and $25 million.