NASDAQ$PRPL

Purple Innovation Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Purple Innovation reported Q4 2023 results, with net revenue increasing slightly and a focus on strategic initiatives for future growth.

Purple Innovation's Q4 2023 saw a slight increase in net revenue, driven by new product success and increased advertising, despite industry headwinds. The company is focusing on market share, productivity, and innovation for future profitability.

  • Net revenue increased by 1.1% to $145.9 million compared to Q4 2022.
  • DTC net revenues increased by 4.3%, driven by e-commerce and showroom growth.
  • Wholesale revenue decreased by 2.7%, but outperformed industry trends.
  • Net loss was $(18.3) million, an improvement from $(71.7) million in the prior year period.

Headline financials

Total Revenue

$146M

Previous: $145M+0.6%
EPS (adj)

-$0.15

Previous: -$0.10-50.0%
Capital Expenditures

-$5.88M

Previous: $3.95M-248.7%
Free Cash Flow

-$4.49M

Previous: -$2.25M-99.4%
Net Income

-$18.3M

Previous: -$70.2M+73.9%
Operating Income

-$16.2M

Previous: -$11.1M-45.9%
Gross Profit

$48.4M

Previous: $50.8M-4.6%
R&D Expense

$2.9M

No prior period
Stock-Based Comp

$1.08M

Previous: $754K+43.6%

Revenue & EPS history

Purple · Revenue · Quarterly

$146M

Q4 2023+0.6%vs Q4 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

The Company currently expects full year revenue to be in the range of $540 to $560 million, representing an increase in the mid to high-single digit range over 2023 levels, and adjusted EBITDA between $(20) million and $(10) million. The Company expects its quarterly revenue and adjusted EBITDA performance to improve sequentially as it progresses through the year with adjusted EBITDA projected to be positive for the second half of 2024.

Tailwinds

  • Full year revenue to be in the range of $540 to $560 million, representing an increase in the mid to high-single digit range over 2023 levels.
  • Adjusted EBITDA between $(20) million and $(10) million.
  • Quarterly revenue and adjusted EBITDA performance to improve sequentially as it progresses through the year
  • Adjusted EBITDA projected to be positive for the second half of 2024.
  • Focus is on further share gains and enhancing earnings by driving productivity, efficiency and innovation across the business.

Headwinds

  • Near-term industry challenges persist.
  • Ongoing testing and optimization.
  • Price increases.
  • Product mix shifts
  • Manufacturing improvements combined with more efficient ad spending focused on existing mattress shoppers.

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 2023

Historical avgQ4 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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