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Sep 30, 2023

Purple Q3 2023 Earnings Report

Purple Innovation reported mixed Q3 2023 results, with revenue slightly decreasing year-over-year but increasing sequentially. New product transition costs impacted margins, but the company anticipates a return to year-over-year revenue growth in Q4.

Key Takeaways

Purple Innovation's Q3 2023 revenue was $140.0 million, a 2.0% decrease compared to Q3 2022. The company experienced a net loss of $(36.0) million, and gross margin decreased to 33.8%. Despite these challenges, the company saw sequential revenue growth and is optimistic about future performance.

Third quarter net revenue decreased 2.0% year-over-year to $140.0 million.

Gross margin decreased to 33.8%, impacted by new product transition costs.

Net loss attributable to Purple Innovation, Inc. was $(36.0) million.

The company expects net revenue to be in the range of $510 to $520 million and negative adjusted EBITDA between $(65) million and $(55) million for 2023.

Total Revenue
$140M
Previous year: $143M
-2.3%
EPS
-$0.18
Previous year: $0.03
-700.0%
Gross Profit
$47.3M
Previous year: $59.5M
-20.4%
Cash and Equivalents
$26.6M
Previous year: $59.1M
-55.0%
Free Cash Flow
-$24.3M
Previous year: $15.1M
-260.6%
Total Assets
$398M
Previous year: $687M
-42.0%

Purple

Purple

Forward Guidance

The Company is adjusting its outlook. It now expects net revenue to be in the range of $510 to $520 million and negative adjusted EBITDA between $(65) million and $(55) million.