NASDAQ$PRPL

Purple Innovation Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Purple Innovation reported record second quarter results driven by a significant increase in net revenue and operating income.

Purple Innovation reported a record-breaking second quarter with a 60.3% increase in net revenue to $165.1 million and an operating income of $32.0 million. The company successfully capitalized on the strengths of its business model and changes in consumer buying behavior due to COVID-19, particularly in the direct-to-consumer channel.

  • Net revenue increased by 60.3% to $165.1 million compared to the second quarter of 2019.
  • Operating income improved to $32.0 million, a significant increase from the operating loss of $(2.4) million in the prior year period.
  • Gross margin improved to 49.4% compared to 41.5% in the same period last year, driven by a higher proportion of DTC channel revenue.
  • Cash and cash equivalents increased to $95.4 million as of June 30, 2020.

Headline financials

Total Revenue

$165M

Previous: $103M+60.3%
EPS (adj)

-$0.11

Previous: -$0.16+31.3%
Gross Margin

49.4%

Previous: 41.5%+19.0%
Capital Expenditures

-$8.01M

Previous: -$3.14M-155.4%
Free Cash Flow

-$9.99M

Previous: -$4.47M-123.3%
Net Income

-$1.98M

Previous: -$1.34M-48.1%
Operating Income

$32M

Previous: -$2.36M+1453.3%
Gross Profit

$81.6M

Previous: $42.8M+90.8%
Cash & Equivalents

$95.4M

Previous: $20.3M+371.0%
Total Assets

$303M

Previous: $99.7M+204.2%
Stock-Based Comp

$962K

Previous: $6.73M-85.7%

Revenue & EPS history

Purple · Revenue · Quarterly

$165M

Q2 2020+60.3%vs Q2 2019
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

Due to continued uncertainty in the overall economy, the Company is not providing an update at this time.

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 Q2 2020

Historical avgQ2 2020

-3.8%

Avg return

Earnings day

-2.2%

Avg return

5 days after

-3.0%

Avg return

30 days after

38%

16 / 42 earnings

Positive

+19.5%

Q2 2019

Best reaction

-38.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.2%+1.1%
Q1 2026-17.1%-22.5%-36.2%
Q3 2025-10.1%-5.5%-7.2%
Q1 2025+6.6%+26.3%+3.9%
Q4 2024-2.9%-3.9%-20.3%
Q3 2024-9.1%-8.2%+9.3%
Q2 2024-13.6%-16.8%-12.8%
Q1 2024-10.0%-9.4%-31.2%
Q4 2023-15.3%-20.4%-9.2%
Q3 2023-38.5%-33.5%+35.8%
Q2 2023-22.8%-24.4%-27.7%
Q1 2023+15.5%+16.3%+15.9%
Q4 2022-18.5%-21.5%-21.8%
Q3 2022+16.7%+38.9%+38.6%
Q2 2022-7.6%-6.4%-28.7%
Q1 2022-4.9%+28.8%+38.7%
Q4 2021+10.5%+25.7%-2.8%
Q3 2021-23.8%-29.9%-46.0%
Q2 2021+4.0%+4.7%-8.8%
Q1 2021+3.5%-7.0%-18.8%
Q4 2020-13.7%-13.8%-13.1%
Q3 2020-4.7%-0.4%+2.3%
Q2 2020-13.8%-17.2%-5.9%
Q1 2020+6.9%+1.1%+25.3%
Q4 2019-19.6%-37.2%-51.5%
Q3 2019+15.1%+3.0%+5.3%
Q2 2019+19.5%+12.6%+41.8%
Q1 2019+10.3%+13.7%+9.9%
Q4 2018-4.2%-6.1%-10.3%
Q3 2018-7.6%+11.1%+10.9%
Q2 2018-12.9%-11.5%-22.9%
Q1 2018+1.6%+5.6%+19.7%
Q4 2017-1.5%+19.4%+6.8%
Q3 2017+0.1%+0.0%-0.6%
Q2 2017+0.7%+0.6%-0.2%
Q1 2017+0.2%-0.3%-0.5%
Q4 2016-0.5%+0.9%-0.6%
Q3 2016+0.0%+0.0%-1.0%
Q2 2016+0.0%+0.0%+0.2%
Q1 2016+0.2%
Q4 2015+0.0%
Q3 2015+0.0%

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