Purple Announces Second Quarter Results for 2024

August 5, 2024  by Karen Parrish in Business Strategy, Industry   

Second Quarter Financial Summary (Comparisons versus Second Quarter 2023)¹

• Net revenue increased 2.0% to $120.3 million compared to $117.9 million.
  • Wholesale revenue increased 7.2% and Direct-to-Consumer (DTC) revenue decreased 1.8%.
• Gross margin increased to 40.7% compared to 30.1%.
• Operating expenses were $63.5 million, or 52.8% of revenue compared to $75.7 million, or 64.3% of revenue.
• Operating loss was $(14.5) million compared to an operating loss of $(40.3) million.
• Net income was $0.0 million as compared to a net loss of $(40.5) million.
  • Adjusted net loss was $(13.8) million, or $(0.13) per diluted share as compared to adjusted net loss of $(23.9) million, or $(0.23) per diluted share.
• EBITDA was $10.6 million compared to $(34.3) million.
  • Adjusted EBITDA was $(4.1) million compared to $(21.5) million.
• Cash and cash equivalents were $23.4 million at June 30, 2024.

"Our second quarter results underscore the progress we've made enhancing the financial profile of the Company," said Chief Executive Officer Rob DeMartini. "Even as industry trends further deteriorated and impacted demand, we exceeded our adjusted EBITDA plan thanks to a number of operational improvements and cost saving programs that drove a significant increase in gross margins on both a year-over-year and sequential basis. As we look forward, we remain on track for a return to profitability in the second half of the year and are confident that our Path to Premium Sleep strategy will continue to gain traction in the marketplace, allowing us to take share and deliver value to our shareholders."

2024 Outlook

Based on first half results, couple with ongoing industry-wide demand declines, the Company is amending its revenue outlook and reiterating its adjusted EBITDA outlook for 2024.

Purple now expects full year net revenue to be in the range of $490 to $510 million compared to its prior range of $540 million to $560 million. The Company still expects Adjusted EBITDA to be between $(20) million and $(10) million.

Conference Call and Webcast Information

Purple Innovation, Inc. hosted a live conference call to discuss financial results on Aug 5, at 4:30 p.m. Eastern Time. The call is also being webcast and can be accessed on the investor relations section of the Company's website, investors.purple.com. After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for 30 days