NASDAQ$HNST

Honest Co Inc/The · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter and full year financial results.

The Honest Company's Q4 2022 revenue increased by 2% to $81.9 million, driven by strong retail consumption, distribution gains, and price increases, which was partially offset by a decline in Digital revenue. Net loss for the quarter was $12.6 million, compared to a net loss of $9.0 million in the same quarter of the previous year.

  • Revenue growth was 2% in the quarter, driven by strong retail consumption, distribution gains, and price increases, partially offset by a decline in Digital revenue
  • Consumption of Honest diapers, wipes, skin, and personal care increased by 15% versus prior year
  • Gross margin of 27.5% reflected a 250 basis point decline versus the fourth quarter of 2021, reflecting significantly higher product and fulfillment costs
  • Overtook #1 natural/lifestyle diaper brand position at Kroger in fourth quarter of 2022

Headline financials

Total Revenue

$81.9M

Previous: $80.4M+1.8%
EPS (adj)

-$0.14

Previous: -$0.10-40.0%
Capital Expenditures

$184K

Previous: $33K+457.6%
Free Cash Flow

-$25.8M

Previous: -$1.83M-1310.8%
Net Income

-$12.6M

Previous: -$9.03M-39.6%
Operating Income

-$12.8M

Previous: -$8.6M-48.3%
Gross Profit

$22.5M

Previous: $24.1M-6.6%
Cash & Equivalents

$9.52M

Previous: $50.8M-81.3%
Total Assets

$241M

Previous: $273M-11.7%
Stock-Based Comp

$3.72M

Previous: $3.61M+3.1%

Revenue & EPS history

Honest Co · Revenue · Quarterly

$81.9M

Q4 2022+1.8%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Without taking into consideration the margin improvement roadmap that we that are currently formulating, we anticipate our full year 2023 revenue and Adjusted EBITDA would be in-line with our Fiscal Year 2022 results.

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 Q4 2022

Historical avgQ4 2022

+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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