NASDAQ$PRPL

Purple Innovation Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Purple Innovation reported mixed Q3 2023 results, with revenue slightly decreasing year-over-year but increasing sequentially. New product transition costs impacted margins, but the company anticipates a return to year-over-year revenue growth in Q4.

Purple Innovation's Q3 2023 revenue was $140.0 million, a 2.0% decrease compared to Q3 2022. The company experienced a net loss of $(36.0) million, and gross margin decreased to 33.8%. Despite these challenges, the company saw sequential revenue growth and is optimistic about future performance.

  • Third quarter net revenue decreased 2.0% year-over-year to $140.0 million.
  • Gross margin decreased to 33.8%, impacted by new product transition costs.
  • Net loss attributable to Purple Innovation, Inc. was $(36.0) million.
  • The company expects net revenue to be in the range of $510 to $520 million and negative adjusted EBITDA between $(65) million and $(55) million for 2023.

Headline financials

Total Revenue

$140M

Previous: $143M-2.3%
EPS (adj)

-$0.18

Previous: $0.03-700.0%
Capital Expenditures

-$8.77M

Previous: -$31.4M+72.1%
Free Cash Flow

-$44.8M

Previous: -$29.1M-53.6%
Net Income

-$36M

Previous: $2.28M-1680.5%
Operating Income

-$32.6M

Previous: $1.31M-2583.9%
Gross Profit

$47.3M

Previous: $59.4M-20.4%
Cash & Equivalents

$26.6M

Previous: $59.1M-55.0%
Total Assets

$398M

Previous: $687M-42.0%
R&D Expense

$2.7M

No prior period
Stock-Based Comp

$939K

Previous: $795K+18.1%

Revenue & EPS history

Purple · Revenue · Quarterly

$140M

Q3 2023-2.3%vs Q3 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

The Company is adjusting its outlook. It now expects net revenue to be in the range of $510 to $520 million and negative adjusted EBITDA between $(65) million and $(55) million.

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 Q3 2023

Historical avgQ3 2023

-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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