NASDAQ$HNST

Honest Co Inc/The · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Achieved record revenue and improved profitability.

The Honest Company reported strong second-quarter results, achieving record revenue of $93 million, up 10% year-over-year. Gross margin improved significantly to 38%, a 1,120 basis point increase. The company raised its full-year 2024 revenue and adjusted EBITDA outlook.

  • Achieved record revenue of $93 million, a 10% increase compared to Q2 2023.
  • Gross margin improved to 38.3%, up 1,120 basis points from 27.1% in Q2 2023.
  • Net loss was reduced to $4 million, compared to a net loss of $13 million in Q2 2023.
  • Adjusted EBITDA was positive $8 million, compared to negative $4 million in Q2 2023.

Headline financials

Total Revenue

$93M

Previous: $84.5M+10.1%
EPS

-$0.04

Previous: -$0.14+71.4%
Gross Margin

38.3%

No prior period
Adjusted EBITDA

$7.6M

No prior period
Adjusted EBITDA Margin

8.2%

No prior period
Capital Expenditures

-$91K

Previous: -$1.19M+92.3%
Free Cash Flow

-$4.17M

Previous: -$14.6M+71.5%
Net Income

-$4.08M

Previous: -$13.4M+69.6%
Operating Income

-$4.05M

Previous: -$13.4M+69.8%
Gross Profit

$35.6M

Previous: $22.9M+55.5%
Cash & Equivalents

$36.6M

Previous: $17.8M+105.1%
Total Assets

$200M

Previous: $193M+4.0%
R&D Expense

$1.71M

No prior period
Stock-Based Comp

$8.91M

Previous: $6.41M+38.9%

Revenue & EPS history

Honest Co · Revenue · Quarterly

$93M

Q2 2024+10.1%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The company is increasing its full year 2024 outlook for both revenue and Adjusted EBITDA.

Tailwinds

  • Revenue is expected to grow by mid-to-high single digits compared to full year 2023.
  • Adjusted EBITDA is projected to be in the range of $15 million to $18 million.

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 Q2 2024

Historical avgQ2 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

Earnings price reactions
QuarterReport dateReaction (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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