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Mar 31, 2023
Purple Q1 2023 Earnings Report
Purple Innovation reported first quarter results, showing a decrease in net revenue but an increase in gross margin.
Key Takeaways
Purple Innovation's first quarter 2023 results showed a decrease in net revenue by 23.6% to $109.4 million compared to the previous year, alongside an increase in gross margin to 39.5%. The company experienced an operating loss of $(22.0) million and a net loss of $(23.3) million. Despite lower revenue, improved Adjusted EBITDA reflects operating efficiencies and cost management.
Net revenue decreased by 23.6% to $109.4 million due to changing demand, inflationary pressures, and reduced advertising spend.
Gross margin increased to 39.5% due to lower materials, labor, and freight costs, and efficiency initiatives.
Operating expenses decreased due to a reduction in marketing and sales expenses.
The company is reiterating its 2023 outlook for full year net revenue to be in the range of $590 to $615 million and Adjusted EBITDA between $13 million and $17 million.
Forward Guidance
The Company is reiterating its 2023 outlook for full year net revenue to be in the range of $590 to $615 million and Adjusted EBITDA between $13 million and $17 million and gross margins in the low 40 percent range for the full year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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