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Jun 30, 2020

Purple Q2 2020 Earnings Report

Purple Innovation reported record second quarter results driven by a significant increase in net revenue and operating income.

Key Takeaways

Purple Innovation reported a record-breaking second quarter with a 60.3% increase in net revenue to $165.1 million and an operating income of $32.0 million. The company successfully capitalized on the strengths of its business model and changes in consumer buying behavior due to COVID-19, particularly in the direct-to-consumer channel.

Net revenue increased by 60.3% to $165.1 million compared to the second quarter of 2019.

Operating income improved to $32.0 million, a significant increase from the operating loss of $(2.4) million in the prior year period.

Gross margin improved to 49.4% compared to 41.5% in the same period last year, driven by a higher proportion of DTC channel revenue.

Cash and cash equivalents increased to $95.4 million as of June 30, 2020.

Total Revenue
$165M
Previous year: $103M
+60.3%
EPS
-$0.11
Previous year: -$0.16
-31.3%
Gross Margin
49.4%
Previous year: 41.5%
+19.0%
Gross Profit
$81.5M
Previous year: $42.8M
+90.6%
Cash and Equivalents
$95.4M
Previous year: $20.3M
+371.0%
Free Cash Flow
$69.1M
Previous year: $8.24M
+739.4%
Total Assets
$303M
Previous year: $99.7M
+204.2%

Purple

Purple

Forward Guidance

Due to continued uncertainty in the overall economy, the Company is not providing an update at this time.