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Dec 31, 2020
Purple Q4 2020 Earnings Report
Purple Innovation reported record results with a 40% increase in net revenue and a 171% increase in operating income for the fourth quarter of 2020.
Key Takeaways
Purple Innovation reported a strong fourth quarter, with net revenue increasing by 40% and operating income increasing by 171%. The company's DTC channel saw a 57% increase, driven by strong mattress sales and higher demand for other products. Purple Innovation is optimistic about 2021, estimating full year revenue to be in the range of $840 to $880 million.
Net revenue increased by 39.9% to $173.9 million compared to Q4 2019.
Operating income increased by 171.1% to $7.5 million compared to Q4 2019.
Net loss was $(2.1) million compared to a net loss of $(12.7) million in Q4 2019.
Adjusted net income was $5.0 million, or $0.07 per diluted share, compared to $1.2 million, or $0.02 per diluted share in Q4 2019.
Forward Guidance
The Company currently expects full year revenue to be in the range of $840 to $880 million, an increase of 30% to 36% over 2020 results.
Positive Outlook
- Full year revenue to be in the range of $840 to $880 million, an increase of 30% to 36% over 2020 results.
- Adjusted EBITDA for 2021 is expected to be between $90 million and $100 million.
- Capital expenditures for 2021 to be in the range of $45 to $50 million.
- Revenue to be in the range of $160 to $170 million for Q1 2021.
- Adjusted EBITDA between $11 million and $14 million for Q1 2021.
Challenges Ahead
- Significant mix-shift back to wholesale expected in Q2 2021.
- Second quarter adjusted EBITDA margins will be correspondingly lower than last year.
- Continued investment in the buildout of the new Georgia facility.
- New e-commerce platform investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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