NYSE$SBDS

Solo Brands Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced strong results, exceeding third quarter expectations with strong revenue growth and healthy gross margins.

Solo Brands reported a 47.1% increase in net sales to $102.2 million compared to Q3 2021. However, the company experienced a net loss of $4.0 million and a decrease in adjusted net income and adjusted EBITDA.

  • Net sales increased by 47.1% to $102.2 million.
  • Net loss was $4.0 million.
  • Adjusted net income decreased by 52.1% to $7.6 million.
  • Adjusted EBITDA decreased by 38.1% to $11.2 million.

Headline financials

Total Revenue

$102M

Previous: $69.4M+47.1%
EPS (adj)

$0.15

Previous: $0.04+275.0%
Adjusted EBITDA

$11.2M

Previous: $18.2M-38.2%
Adjusted Gross Margin

63.3%

Previous: 67.0%-5.5%
Capital Expenditures

-$7.51M

Previous: -$5.1M-47.2%
Free Cash Flow

-$9.72M

Previous: -$3.92M-147.8%
Net Income

-$2.2M

Previous: $1.18M-286.3%
Operating Income

-$3.29M

Previous: $4.31M-176.2%
Gross Profit

$64.7M

Previous: $41M+57.7%
Cash & Equivalents

$17.2M

Previous: $9.53M+80.3%
Total Assets

$897M

Previous: $826M+8.7%
Stock-Based Comp

$4.33M

Previous: $242K+1687.6%

Revenue & EPS history

Solo Brands · Revenue · Quarterly

$102M

Q3 2022+47.1%vs Q3 2021
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

The company revised its full year revenue guidance and reaffirming its previous guidance for adjusted gross margin and adjusted EBITDA margin.

Tailwinds

  • Adjusted gross margin is planned to be above 60% of total revenue.
  • Adjusted EBITDA margin is expected to be in the mid-teens as a percentage of total revenue.

Headwinds

  • Total revenue is expected to grow 15% to 20% versus our prior guidance of a mid-20% range.
  • Guidance is based on a number of assumptions that are subject to change and 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 Q3 2022

Historical avgQ3 2022

-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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