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Purple(PRPL) - 2024 Q4 - Annual Results
PRPLPurple(PRPL)2025-03-13 20:10

Revenue Performance - Fourth quarter 2024 net revenue decreased by 11.6% to 129.0million,downfrom129.0 million, down from 145.9 million in Q4 2023[4] - Full year 2024 net revenue was 487.9million,adeclineof4.4487.9 million, a decline of 4.4% compared to 510.5 million in 2023[8] - Revenues for the three months ended December 31, 2024, were 128.975million,adecreaseof11.6128.975 million, a decrease of 11.6% compared to 145.936 million for the same period in 2023[27] - For the three months ended December 31, 2024, adjusted revenues, net were 128,975thousand,adecreaseof11.5128,975 thousand, a decrease of 11.5% compared to 145,936 thousand for the same period in 2023[36] Profitability Metrics - Gross profit for Q4 2024 increased to 55.3million,withaGAAPgrossmarginof42.955.3 million, with a GAAP gross margin of 42.9%, an improvement of 970 basis points year-over-year[5] - Gross profit for the year ended December 31, 2024, was 181.132 million, an increase of 5.8% from 171.825millionin2023[27]−AdjustedgrossprofitfortheyearendedDecember31,2024,was171.825 million in 2023[27] - Adjusted gross profit for the year ended December 31, 2024, was 196,574 thousand, representing an increase of 0.5% from 195,506thousandin2023,withanadjustedgrossprofitmarginof40.3195,506 thousand in 2023, with an adjusted gross profit margin of 40.3%[36] EBITDA and Operating Loss - Adjusted EBITDA for Q4 2024 was 2.9 million, a significant improvement compared to (9.8)millionintheprioryear[7]−Fullyear2024adjustedEBITDAimprovedto(9.8) million in the prior year[7] - Full year 2024 adjusted EBITDA improved to (20.8) million, compared to (54.7)millionin2023[11]−AdjustedEBITDAforthethreemonthsendedDecember31,2024,was(54.7) million in 2023[11] - Adjusted EBITDA for the three months ended December 31, 2024, was 2.871 million, compared to (9.791)millionforthesameperiodin2023[34]−OperatinglossforthethreemonthsendedDecember31,2024,was(9.791) million for the same period in 2023[34] - Operating loss for the three months ended December 31, 2024, was (7.694) million, an improvement from (16.196)millioninthesameperiodof2023[27]CashandCashFlow−Cashandcashequivalentsincreasedto(16.196) million in the same period of 2023[27] Cash and Cash Flow - Cash and cash equivalents increased to 29.0 million as of December 31, 2024, up from 26.9millionayearearlier[12]−CashflowsfromoperatingactivitiesforthethreemonthsendedDecember31,2024,generated26.9 million a year earlier[12] - Cash flows from operating activities for the three months ended December 31, 2024, generated 6.761 million, compared to 1.146millioninthesameperiodof2023[29]−Thecompanyreportedanetcashincreaseof1.146 million in the same period of 2023[29] - The company reported a net cash increase of 5.612 million for the three months ended December 31, 2024[29] Operating Expenses - Operating expenses for Q4 2024 were 63.0million,down2.663.0 million, down 2.6% from 64.7 million in Q4 2023[6] - Total operating expenses for the year ended December 31, 2024, were 273.315million,adecreaseof4.3273.315 million, a decrease of 4.3% from 285.536 million in 2023[27] - Operating expenses for the year ended December 31, 2024, were 273,315thousand,down4.3273,315 thousand, down 4.3% from 285,536 thousand in 2023[38] Net Loss and Adjusted Net Loss - Net loss attributable to Purple Innovation, Inc. for the year ended December 31, 2024, was (97.897)million,comparedto(97.897) million, compared to (120.757) million in 2023, reflecting a reduction of 18.9%[27] - Adjusted net loss for the year ended December 31, 2024, was 61,682thousand,comparedtoanadjustednetlossof61,682 thousand, compared to an adjusted net loss of 72,227 thousand in 2023, reflecting a 14.5% improvement[39] - The net loss attributable to Purple Innovation Inc. for the year ended December 31, 2024, was 98,098thousand,adecreasefrom98,098 thousand, a decrease from 121,215 thousand in 2023[39] - Adjusted net loss per diluted share for the year ended December 31, 2024, was 0.57,comparedto0.57, compared to 0.69 for the same period in 2023[45] Strategic Initiatives - The company expects full year 2025 revenue to be in the range of 465to465 to 485 million and adjusted EBITDA to be flat to positive 10million[14]−ThecompanyplanstolaunchtheRejuvenate2.0productinthesecondquarterof2025,aimingtoenhanceprofitability[3]−Thecompanyhasformedaspecialcommitteetoevaluatestrategicalternatives,includingpotentialmergersorsales[16]OtherFinancialMetrics−TheweightedaveragecommonsharesoutstandingfortheyearendedDecember31,2024,were107,139million,anincreasefrom103,602millionin2023[27]−Thecompanyincurred10 million[14] - The company plans to launch the Rejuvenate 2.0 product in the second quarter of 2025, aiming to enhance profitability[3] - The company has formed a special committee to evaluate strategic alternatives, including potential mergers or sales[16] Other Financial Metrics - The weighted average common shares outstanding for the year ended December 31, 2024, were 107,139 million, an increase from 103,602 million in 2023[27] - The company incurred 2.651 million in paid-in-kind interest for the three months ended December 31, 2024[29] - The effective tax rate applied to adjusted net income before income taxes was estimated at 25.9% for the year ended December 31, 2024[44] - The company incurred restructuring related charges of 20,915thousandinoperatingexpensesfortheyearendedDecember31,2024[38]−AdjustedcostofrevenuesfortheyearendedDecember31,2024,was20,915 thousand in operating expenses for the year ended December 31, 2024[38] - Adjusted cost of revenues for the year ended December 31, 2024, was 291,303 thousand, down from 329,894thousandin2023[36]−Thecompanyreportedatotalcostofrevenuesof329,894 thousand in 2023[36] - The company reported a total cost of revenues of 306,745 thousand for the year ended December 31, 2024, compared to $338,716 thousand in 2023[36]