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Dec 31, 2021
Purple Q4 2021 Earnings Report
Reported fourth quarter and full year 2021 results and Robert DeMartini was named as Chief Executive Officer.
Key Takeaways
Purple Innovation reported a 7.2% increase in net revenue for the fourth quarter of 2021, reaching $186.4 million. Wholesale revenue increased by 35.9%, while DTC revenue decreased by 4.0%. The company's gross margin was 34.7%, and the operating loss was $(31.1) million. Net loss for the quarter was $(21.8) million.
Net revenue increased by 7.2% to $186.4 million compared to Q4 2020.
Wholesale revenue increased by 35.9%, while DTC revenue decreased by 4.0%.
Gross margin was 34.7%, down from 47.2% in the prior year period.
Operating loss was $(31.1) million, compared to an operating income of $7.5 million in the prior year period.
Purple
Purple
Forward Guidance
For 2022, the Company currently expects full year revenue to be in the range of $790 to $830 million, an increase of 8% to 14% over 2021 results. Adjusted EBITDA for 2022 is expected to be between $26 million and $33 million, compared with 2021 adjusted EBITDA of $11.0 million. For the first quarter of 2022, the Company currently expects revenue to be in the range of $125 to $135 million and adjusted EBITDA between $(26) million and $(20) million.
Positive Outlook
- Full year revenue to be in the range of $790 to $830 million, an increase of 8% to 14% over 2021 results.
- Adjusted EBITDA for 2022 is expected to be between $26 million and $33 million, compared with 2021 adjusted EBITDA of $11.0 million.
- The Company expects its performance to improve as it progresses through the year with sequential improvements each quarter
- Benefits from the strategies currently being implemented aimed at improving execution and strengthening margins
- Elevating the Purple brand, further developing and expanding distribution channels and accelerating product innovation.
Challenges Ahead
- For the first quarter of 2022, the Company currently expects revenue to be in the range of $125 to $135 million
- Adjusted EBITDA between $(26) million and $(20) million for Q1 2022.
- First quarter 2022 adjusted EBITDA is projected to be similar to the fourth quarter 2021 on much lower sales volumes
- Reflecting the early progress on reducing expenses
- Shift in consumer traffic back more heavily to brick and mortar retail where the Company’s presence and capabilities to capture demand are currently less developed.