NYSE$SBDS

Solo Brands Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

First quarter results were announced, with sales and adjusted EBITDA exceeding expectations due to strong wholesale performance and sales trends accelerating throughout the quarter. Full year 2024 guidance was reaffirmed.

Solo Brands reported a decrease in net sales to $85.3 million, a net loss of $6.5 million, and an adjusted EBITDA of $4.3 million. Despite a decline in direct-to-consumer revenue, wholesale revenue increased. The company reaffirmed its full-year 2024 revenue guidance of $490 million to $510 million and adjusted EBITDA margin guidance of 10% to 12%.

  • Net sales decreased by 3.3% to $85.3 million compared to the first quarter of 2023.
  • Net loss was $6.5 million, a decrease of $7.4 million from the previous year.
  • Adjusted EBITDA decreased by 72.1% to $4.3 million.
  • Direct-to-consumer revenues decreased by 6.8%, while wholesale revenues increased by 2.5%.

Headline financials

Total Revenue

$85.3M

Previous: $88.2M-3.3%
EPS

-$0.06

Previous: $0.16-137.5%
Adjusted Net Income

$1.67M

No prior period
Adjusted EBITDA

$4.3M

No prior period
Adjusted Gross Profit

$50.8M

No prior period
Adjusted Gross Margin

59.5%

No prior period
Solo Stove Segment EBITDA

$7.65M

No prior period
Chubbies Segment EBITDA

$4.93M

No prior period
Capital Expenditures

-$2.39M

Previous: -$1.82M-31.2%
Free Cash Flow

-$8.87M

Previous: -$896K-890.1%
Net Income

-$6.48M

Previous: $924K-801.7%
Operating Income

-$6.35M

Previous: $3.2M-298.6%
Gross Profit

$50.5M

Previous: $54.4M-7.1%
Cash & Equivalents

$15.4M

Previous: $25.7M-40.0%
Total Assets

$648M

Previous: $840M-22.8%
Stock-Based Comp

$1.23M

Previous: $4.79M-74.4%

Revenue & EPS history

Solo Brands · Revenue · Quarterly

$85.3M

Q1 2024-3.3%vs Q1 2023
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

Solo Brands reaffirmed its full year 2024 guidance.

Tailwinds

  • Total revenue is expected to be between $490 million to $510 million for 2024.
  • Adjusted EBITDA margin is expected to be between 10% to 12% for 2024.

Headwinds

  • The Company’s full year 2024 guidance is based on a number of assumptions that are subject to change, many of which are outside the Company’s control.
  • If actual results vary from these assumptions, the Company’s expectations may change.
  • There can be no assurance that the Company will achieve these results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.4%

Avg return

Earnings day

-3.5%

Avg return

5 days after

-3.7%

Avg return

30 days after

44%

8 / 18 earnings

Positive

+50.8%

Q1 2025

Best reaction

-62.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-9.3%-17.3%
Q3 2025-28.3%-20.1%-33.9%
Q1 2025+50.8%+30.1%+119.2%
Q4 2024-62.9%-64.9%-75.6%
Q3 2024-10.3%-14.4%-21.9%
Q2 2024-41.6%-37.1%-28.7%
Q1 2024+3.0%+2.0%-5.6%
Q4 2023-2.9%-10.4%-21.2%
Q3 2023+14.7%+13.4%+35.4%
Q2 2023+10.3%+6.7%-1.8%
Q1 2023-5.2%-6.6%-42.0%
Q4 2022+36.6%+66.4%+99.8%
Q3 2022+24.1%+25.8%+5.2%
Q2 2022-2.0%-6.0%-20.7%
Q1 2022-5.5%-15.6%-8.5%
Q4 2021+3.9%-4.9%-26.9%
Q3 2020+3.1%-7.2%-7.1%
Q3 2021-11.0%-11.5%-15.1%
Q2 2021
Q1 2021
Q4 2020
Q2 2020
Q1 2020
Q4 2019

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