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Dec 31, 2023
Purple Q4 2023 Earnings Report
Purple Innovation reported Q4 2023 results, with net revenue increasing slightly and a focus on strategic initiatives for future growth.
Key Takeaways
Purple Innovation's Q4 2023 saw a slight increase in net revenue, driven by new product success and increased advertising, despite industry headwinds. The company is focusing on market share, productivity, and innovation for future profitability.
Net revenue increased by 1.1% to $145.9 million compared to Q4 2022.
DTC net revenues increased by 4.3%, driven by e-commerce and showroom growth.
Wholesale revenue decreased by 2.7%, but outperformed industry trends.
Net loss was $(18.3) million, an improvement from $(71.7) million in the prior year period.
Purple
Purple
Forward Guidance
The Company currently expects full year revenue to be in the range of $540 to $560 million, representing an increase in the mid to high-single digit range over 2023 levels, and adjusted EBITDA between $(20) million and $(10) million. The Company expects its quarterly revenue and adjusted EBITDA performance to improve sequentially as it progresses through the year with adjusted EBITDA projected to be positive for the second half of 2024.
Positive Outlook
- Full year revenue to be in the range of $540 to $560 million, representing an increase in the mid to high-single digit range over 2023 levels.
- Adjusted EBITDA between $(20) million and $(10) million.
- Quarterly revenue and adjusted EBITDA performance to improve sequentially as it progresses through the year
- Adjusted EBITDA projected to be positive for the second half of 2024.
- Focus is on further share gains and enhancing earnings by driving productivity, efficiency and innovation across the business.
Challenges Ahead
- Near-term industry challenges persist.
- Ongoing testing and optimization.
- Price increases.
- Product mix shifts
- Manufacturing improvements combined with more efficient ad spending focused on existing mattress shoppers.