In This Article:
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Net Revenue: $43 million for Q3 2024, reflecting lower unit sales offset by higher average selling prices.
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Gross Margin: Expanded by 90 basis points to 44.4% compared to the previous year.
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SG&A Expenses: $25 million, down 24% year-over-year, excluding stock-based compensation and depreciation.
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Store Closures: 15 closures year-to-date in the US, with one closure in Q3 and another shortly after.
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Cash and Cash Equivalents: $79 million with no outstanding borrowings under a $50 million revolver.
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Inventory: $57 million, down 28% year-over-year.
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Operating Cash Use: Narrowed to $11 million in Q3, improving from $16 million in Q2.
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Full Year Revenue Guidance: Expected between $187 million to $193 million.
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Full Year Gross Margin Guidance: Anticipated to be between 43% to 46%.
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Full Year Adjusted EBITDA Loss Guidance: Expected to be between $75 million to $71 million.
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Q4 Revenue Guidance: Expected between $53 million to $59 million.
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Q4 Adjusted EBITDA Loss Guidance: Expected to be between $25 million to $21 million.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Allbirds Inc (NASDAQ:BIRD) reported a strong execution across teams, with results matching expectations for Q3 2024.
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The company launched two new products, the Tree Glider and Lounger Lift, which received positive consumer responses and media coverage.
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Allbirds Inc (NASDAQ:BIRD) achieved a gross margin expansion of 90 basis points to 44.4%, driven by lower freight and duty costs and healthier inventory positions.
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The company successfully transitioned five international regions to a distributor model, which is expected to enhance market reach and awareness.
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Allbirds Inc (NASDAQ:BIRD) reported a 22% reduction in its per unit carbon footprint, aligning with its sustainability goals.
Negative Points
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Net revenue for Q3 2024 was $43 million, reflecting lower unit sales and the impact of international distributor transitions and retail store closures.
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The company closed 15 US stores in 2024, which contributed to a decline in revenue.
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Allbirds Inc (NASDAQ:BIRD) anticipates a full-year adjusted EBITDA loss between $75 million to $71 million.
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The company expects a highly competitive landscape during the holiday season, which may impact sales.
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Allbirds Inc (NASDAQ:BIRD) is delaying its top-of-funnel marketing spend in the US until late Q4, potentially affecting immediate brand awareness.
Q & A Highlights
Q: Can you explain the factors contributing to the Q4 revenue guidance and the timing of potential growth in 2025? A: Annie Mitchell, CFO: The Q4 guidance reflects the timing of marketing spend and retail store closures. Our inventory is in a strong position, allowing us to be less promotional compared to last year. We expect growth to begin in the back half of 2025, driven by a rich product offering, enhanced marketing, and improved shopping experiences. - Joe Vernachio, CEO