NASDAQ$BIRD

Allbirds Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2023 financial results, achieving Q4 financial guidance targets and appointing Joe Vernachio as CEO.

Allbirds reported a decrease in net revenue for both the fourth quarter and the full year 2023, alongside a net loss. However, the company significantly reduced operating cash use and finalized agreements with Australasia and Japan distributors. They are entering 2024 with a strong cash position and healthy inventory.

  • Fourth quarter net revenue decreased by 14.5% to $72.0 million compared to the previous year.
  • The company reported a fourth quarter net loss of $56.8 million, or $0.37 per basic and diluted share.
  • Year-end inventory was $57.8 million, representing a 51% decrease compared to the previous year.
  • Operating cash use significantly reduced to $4.7 million in the fourth quarter, compared to $8.4 million a year ago.

Headline financials

Total Revenue

$72M

Previous: $84.2M-14.5%
EPS (adj)

-$3.80

Previous: -$3.40-11.8%
Gross Margin

38.0%

Previous: 43.1%-11.8%
Marketing as % of Revenue

20.6%

No prior period
Capital Expenditures

-$1.21M

Previous: $6.41M-118.9%
Net Income

-$56.8M

Previous: -$24.9M-128.1%
Operating Income

-$57.6M

Previous: -$25.5M-126.4%
Gross Profit

$27.4M

Previous: $36.3M-24.6%
Stock-Based Comp

$3.68M

Previous: $5.09M-27.6%

Revenue & EPS history

Allbirds · Revenue · Quarterly

$72M

Q4 2023-14.5%vs Q4 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

Allbirds provided financial guidance targets for 2024, reflecting the impact of transitioning to a distributor model in international markets and the anticipated closure of 10-15 U.S. retail store locations.

Tailwinds

  • U.S. net revenue of $150 million to $165 million is expected.
  • Gross margin is projected to be between 42% and 45%.
  • Company expects to close 10-15 U.S. retail store locations.
  • The company is providing net revenue guidance for its U.S. and international geographical markets in 2024.
  • Adjusted EBITDA loss of $78 million to $63 million

Headwinds

  • Net revenue is expected to be $190 million to $210 million.
  • International net revenue of $40 million to $45 million is expected, including $25 million to $28 million of impact resulting from anticipated transitions to a distributor model in certain international markets
  • The company’s outlook for the full year reflects approximately $32-37 million of negative impact to revenue associated with the transition from a direct selling model to a distributor model in international markets
  • The company’s outlook for the full year reflects negative impact to revenue associated with the anticipated closure of 10-15 Allbirds stores in 2024.
  • Adjusted EBITDA2 loss of $27 million to $23 million in Q1 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-8.6%

Avg return

Earnings day

-8.6%

Avg return

5 days after

-0.2%

Avg return

30 days after

25%

6 / 24 earnings

Positive

+24.4%

Q4 2019

Best reaction

-51.2%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%-13.7%
Q4 2025+3.6%+10.9%+252.1%
Q3 2025-7.2%-28.2%-39.7%
Q2 2025-29.4%-27.9%-36.2%
Q1 2025-2.4%+23.8%+58.0%
Q4 2024-13.1%-13.5%-27.6%
Q3 2024-23.2%-29.7%-30.9%
Q2 2024+8.2%+6.5%-7.8%
Q1 2024-10.4%+2.9%-19.4%
Q4 2023-9.6%-12.0%-24.5%
Q3 2023-23.9%-29.3%+11.9%
Q2 2023+23.9%+18.7%-6.0%
Q1 2023-6.4%-4.9%+2.6%
Q4 2022-51.2%-56.4%-55.1%
Q3 2022-17.2%-6.6%-5.6%
Q2 2021-17.5%-7.2%-28.7%
Q2 2022-13.1%-0.2%-23.0%
Q1 2021-7.5%+0.2%+8.8%
Q1 2022-19.1%-13.8%+4.7%
Q4 2019+24.4%+16.5%+0.4%
Q4 2021+0.0%-8.1%-29.6%
Q4 2020+1.4%-5.2%+3.5%
Q3 2020+1.4%-5.2%+3.5%
Q3 2021-14.7%-24.6%-15.2%
Q2 2020
Q1 2020

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