NASDAQ$PRPL

Purple Innovation Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2021 results and Robert DeMartini was named as Chief Executive Officer.

Purple Innovation reported a 7.2% increase in net revenue for the fourth quarter of 2021, reaching $186.4 million. Wholesale revenue increased by 35.9%, while DTC revenue decreased by 4.0%. The company's gross margin was 34.7%, and the operating loss was $(31.1) million. Net loss for the quarter was $(21.8) million.

  • Net revenue increased by 7.2% to $186.4 million compared to Q4 2020.
  • Wholesale revenue increased by 35.9%, while DTC revenue decreased by 4.0%.
  • Gross margin was 34.7%, down from 47.2% in the prior year period.
  • Operating loss was $(31.1) million, compared to an operating income of $7.5 million in the prior year period.

Headline financials

Total Revenue

$186M

Previous: $174M+7.2%
EPS (adj)

-$0.35

Previous: $0.07-600.0%
Capital Expenditures

$13.8M

Previous: $13.7M+0.8%
Free Cash Flow

-$44.8M

Previous: -$19.9M-125.4%
Net Income

-$21.8M

Previous: -$2.1M-938.1%
Operating Income

-$31.1M

Previous: $7.5M-514.7%
Gross Profit

$64.8M

Previous: $82M-21.0%
Cash & Equivalents

$91.6M

Previous: $123M-25.5%
Total Assets

$642M

Previous: $555M+15.8%
Stock-Based Comp

$1.01M

Previous: $626K+61.2%

Revenue & EPS history

Purple · Revenue · Quarterly

$186M

Q4 2021+7.2%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

For 2022, the Company currently expects full year revenue to be in the range of $790 to $830 million, an increase of 8% to 14% over 2021 results. Adjusted EBITDA for 2022 is expected to be between $26 million and $33 million, compared with 2021 adjusted EBITDA of $11.0 million. For the first quarter of 2022, the Company currently expects revenue to be in the range of $125 to $135 million and adjusted EBITDA between $(26) million and $(20) million.

Tailwinds

  • Full year revenue to be in the range of $790 to $830 million, an increase of 8% to 14% over 2021 results.
  • Adjusted EBITDA for 2022 is expected to be between $26 million and $33 million, compared with 2021 adjusted EBITDA of $11.0 million.
  • The Company expects its performance to improve as it progresses through the year with sequential improvements each quarter
  • Benefits from the strategies currently being implemented aimed at improving execution and strengthening margins
  • Elevating the Purple brand, further developing and expanding distribution channels and accelerating product innovation.

Headwinds

  • For the first quarter of 2022, the Company currently expects revenue to be in the range of $125 to $135 million
  • Adjusted EBITDA between $(26) million and $(20) million for Q1 2022.
  • First quarter 2022 adjusted EBITDA is projected to be similar to the fourth quarter 2021 on much lower sales volumes
  • Reflecting the early progress on reducing expenses
  • Shift in consumer traffic back more heavily to brick and mortar retail where the Company’s presence and capabilities to capture demand are currently less developed.

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 Q4 2021

Historical avgQ4 2021

-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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