NASDAQ$HNST
Honest Co Inc/The · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Honest Co's Q1 2024 results showcased revenue growth and profitability improvement, driven by transformation pillars and achieving a gross margin of 37%.
The Honest Company reported a 3% increase in revenue to $86 million, driven by growth in baby apparel, wipes, and baby personal care. Gross margin improved to 37%, and the company achieved a net loss of $1 million, a significant improvement from the $19 million loss in the same quarter last year. Adjusted EBITDA was positive $3 million, marking the second consecutive quarter of positive adjusted EBITDA.
- Revenue increased by 3% to $86 million, driven by growth in baby apparel, wipes, and baby personal care.
- Gross margin reached a record 37%, a 1,275 basis points increase year-over-year, due to lower transportation costs, price increases, and efficient trade spending.
- Operating expenses decreased by $6 million compared to the first quarter of 2023, reflecting operating discipline.
- Net loss improved significantly to $1 million compared to a net loss of $19 million in the first quarter of 2023.
Headline financials
Revenue & EPS history
Honest Co · Revenue · Quarterly
$86.2M
Forward guidance
The company reaffirmed its financial outlook for the full fiscal year 2024 for revenue and Adjusted EBITDA.
Tailwinds
- Net revenue growth of low-to-mid single digit percentage.
- Positive Adjusted EBITDA in the low-single digit to mid-single digit millions range.
- Confident in long-term strategy beyond 2024 of 4% to 6% annual revenue growth.
- Continued Adjusted EBITDA margin expansion.
- Reaffirming full year 2024 financial outlook.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2024
+1.1%
Avg return
Earnings day
+2.5%
Avg return
5 days after
-0.6%
Avg return
30 days after
52%
13 / 25 earnings
Positive
+34.4%
Q1 2023
Best reaction
-37.6%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.7% | -4.9% | -6.1% | |
| Q4 2025 | +21.2% | +22.9% | +24.7% | |
| Q3 2025 | -29.5% | -23.6% | -17.9% | |
| Q1 2025 | -8.8% | +6.9% | +7.5% | |
| Q4 2024 | -11.8% | -9.2% | -16.5% | |
| Q3 2024 | +23.7% | +42.2% | +43.0% | |
| Q2 2024 | +17.9% | +28.2% | +28.8% | |
| Q1 2024 | +12.6% | +14.0% | -7.2% | |
| Q4 2023 | +31.4% | +56.2% | +26.8% | |
| Q3 2023 | +20.3% | +13.4% | +101.2% | |
| Q2 2023 | +0.0% | +1.4% | +9.4% | |
| Q1 2023 | +34.4% | +28.7% | -0.6% | |
| Q4 2022 | -37.6% | -36.9% | -35.8% | |
| Q3 2022 | +7.0% | +10.2% | -13.7% | |
| Q2 2022 | +14.3% | +11.5% | +9.9% | |
| Q1 2022 | +17.1% | +8.2% | -1.7% | |
| Q4 2019 | +12.6% | +5.6% | -13.0% | |
| Q4 2021 | -21.5% | -11.6% | -29.9% | |
| Q3 2021 | +9.7% | +6.6% | -11.0% | |
| Q3 2020 | +9.7% | +6.6% | -11.0% | |
| Q2 2021 | -30.6% | -33.2% | -27.0% | |
| Q2 2020 | -30.6% | -33.2% | -27.0% | |
| Q4 2020 | -11.3% | -15.6% | -15.1% | |
| Q1 2020 | -11.3% | -15.6% | -15.1% | |
| Q1 2021 | -10.6% | -16.5% | -18.0% |
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