SAN FRANCISCO, March 20, 2025 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with sustainable materials to make better products in a better way, today announced that Joe Vernachio, CEO, and Annie Mitchell, CFO, will be participating in the following investor conference: J.P. Morgan Retail Round UpThursday, April 3, 2025New York City About Allbirds, Inc. Allbirds is a global modern lifestyle footwear brand, founded in 2015 with a commitment to make better things in ...

Allbirds, Inc. (NASDAQ:BIRD) Q4 2024 Earnings Conference Call March 11, 2025 5:00 PM ET Company Participants Christine Greany - Investor Relations, The Blueshirt Group Joe Vernachio - Chief Executive Officer Annie Mitchell - Chief Financial Officer Conference Call Participants Janine Stichter - BTIG Alex Straton - Morgan Stanley Operator Good afternoon, ladies and gentlemen, and welcome to the Allbirds' Fourth Quarter and Full Year 2024 Conference Call. All participants have been placed in a listen-only mod ...

Financial Data and Key Metrics Changes - Net revenue for Q4 2024 totaled $56 million, aligning with guidance [32] - Gross margin was reported at 31.3%, influenced by inventory adjustments and a higher mix of international distributor sales [33][34] - SG&A expenses for Q4 were $24 million, down 24% year-over-year, reflecting lower occupancy and personnel costs [35] - Adjusted EBITDA for Q4 was a loss of $19 million, approximately flat compared to the previous year [38] Business Line Data and Key Metrics Changes - The company reduced its US store footprint, closing 15 locations in 2024, with an additional five closures post-quarter [10][36] - Marketing expenses in Q4 totaled $12 million, down 17% year-over-year, as the company held back on top-of-funnel spending [37] Market Data and Key Metrics Changes - The full-year impact of international distributor transitions and retail store closures was over $22 million [32] - For 2025, net revenue is expected to be between $175 million and $195 million, with a projected growth of approximately 10% at the midpoint, excluding structural impacts [42][74] Company Strategy and Development Direction - The company is focused on rebuilding for future growth and profitability, with a strategic transformation plan in place [8][30] - A new product lineup is set to launch in fall 2025, including an updated Runner and a fully waterproof collection [17][18] - The marketing strategy includes a new brand campaign featuring Stanley Tucci, aimed at engaging consumers through storytelling [19][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro backdrop affecting consumer behavior, but expressed confidence in the company's strategic initiatives [28][56] - The company anticipates a return to top-line growth in Q4 2025 as product and marketing initiatives take effect [29][48] Other Important Information - The company ended 2024 with cash and cash equivalents of $67 million and no outstanding borrowings [39] - Inventory levels were reported at $44 million, down 24% year-over-year, positioning the company well for 2025 [39] Q&A Session Summary Question: Factors contributing to confidence in return to growth in Q4 - Management highlighted the accumulation of efforts in rebuilding the business framework and enhancing the product engine [52][54] Question: Insights on the macroeconomic environment - Management noted changes in consumer behavior and traffic, indicating a choppy environment but expressed confidence in future stabilization [56][58] Question: Key metrics to monitor for growth confirmation - Management is focused on driving traffic and ensuring high-value customer acquisition [66][67] Question: Differences in growth potential between Q3 and Q4 - Management indicated that Q3 would see improvements but not full growth, with Q4 expected to benefit from new product assortments [69][74]

Strategic Transformation and Business Model - The company announced a strategic transformation plan in March 2023 aimed at reigniting product and brand, optimizing U.S. stores, and transitioning to a distributor model internationally [84]. - The transition to a distributor model may not be successful, potentially impacting operating results and brand value [80]. - The transition to a distributor model in Canada, South Korea, Japan, Australasia, and China may negatively impact operating results and brand value due to limited experience with third-party distribution [97]. - The success of distributor arrangements will depend on factors such as international demand and the distributors' ability to meet sales targets [98]. - The company is investing in technology and business infrastructure, with a strategic transformation plan to slow U.S. store openings and transition to a distributor model internationally [144]. Financial Performance and Losses - The company has incurred significant net losses since inception and anticipates continuing to incur losses for the foreseeable future [80]. - The company incurred full year net losses of $93.3 million and $152.5 million in 2024 and 2023, respectively, with an accumulated deficit of $484.5 million as of December 31, 2024 [107]. - The company anticipates continued significant losses in the future and will need to generate increased revenue levels to achieve profitability [108]. - The company has incurred substantial net operating losses, which may be limited in their utilization due to ownership changes or state tax law provisions [228]. Economic and Market Risks - Economic uncertainty in key markets may adversely affect consumer purchases of discretionary items, impacting demand for the company's products [80]. - The competitive market for footwear and apparel may result in pricing pressures and reduced profit margins, impacting market share and profitability [109]. - Economic uncertainty in key markets may adversely affect consumer purchases of discretionary items, leading to unpredictable trends in consumer spending [101]. - The company may experience challenges in accurately forecasting consumer demand, impacting inventory management and sales [125]. Sustainability and ESG Concerns - The company is focusing on using sustainable materials, which may increase costs and hinder revenue growth [80]. - The company plans to invest in sustainable materials and environmentally friendly practices, which may increase costs and hinder revenue growth [112]. - The company faces risks related to its ESG activities and disclosures, which could harm its reputation and brand if public sustainability targets are not met [80]. - The company has set ambitious sustainability targets, including reducing per-unit carbon emissions to less than 1 kg of CO2 equivalent by 2030 [145]. - Climate change and increased focus on sustainability may adversely affect the company's reputation and financial results due to rising raw material costs and production disruptions [113]. Operational and Supply Chain Risks - The company transitioned all new footwear manufacturing to a single manufacturer in Vietnam, increasing supply chain concentration risks [121]. - The company relies on third-party suppliers for raw materials, which may lead to supply chain disruptions and increased costs if demand rises or if existing suppliers are replaced [163]. - Shipping and delivery disruptions could negatively impact customer satisfaction and the company's financial performance [171]. - The company relies on third-party logistics providers for distribution, and any failure in these facilities could adversely affect operations [172]. Legal and Compliance Issues - The company is currently involved in two securities class action lawsuits alleging violations of the Exchange Act and Securities Act, with the court consolidating the cases on July 25, 2023 [239]. - The company faces potential legal expenses to protect its brand and intellectual property rights, which could negatively impact its financial condition [157]. - The company is currently defending invalidation actions in China against several granted trademark registrations [177]. - The company faces risks related to the protection of its intellectual property rights, which may be inadequate to prevent infringement and could diminish brand value [173]. Corporate Governance and Stockholder Concerns - The company's status as a public benefit corporation may impact its ability to provide maximum returns to stockholders due to the obligation to balance stakeholder interests [231]. - The dual class structure of the common stock concentrates voting control with co-founders and principal stockholders, limiting influence of other stockholders on corporate matters [250]. - The company may pursue growth through acquisitions or investments in complementary businesses, technologies, or products, which involves integration risks [265]. - The concentrated voting power of Class B stockholders may limit the ability of other stockholders to influence major corporate transactions [251]. Marketing and Customer Engagement - The company’s marketing strategy includes global brand marketing campaigns across multiple platforms to drive customer engagement and acquisition [117]. - The company is focusing on maintaining a strong community of engaged customers through social media, which is critical for brand appeal and customer acquisition [140]. - Negative commentary on social media can adversely affect the company's reputation and financial condition [141]. - Marketing initiatives have become increasingly expensive, and the company may struggle to generate a meaningful return on these investments [119]. Technology and Cybersecurity Risks - The company is increasingly dependent on third-party technology providers, which may lead to vulnerabilities and operational disruptions [186]. - Cybersecurity incidents could lead to unauthorized access to sensitive information, adversely affecting customer trust and business operations [193]. - The company maintains cyber errors and omissions insurance, but coverage may not be adequate for potential losses from cyber incidents [194]. - Changes in privacy and data protection laws could impose additional requirements and adversely affect the company's marketing activities and financial condition [195].

Financial Performance - Fourth quarter net revenue decreased 22.4% to $55.9 million compared to $72.0 million in Q4 2023, within the company's guidance range [4] - Full year net revenue decreased 25.3% to $189.8 million compared to $254.1 million in 2023 [8] - Fourth quarter net loss was $25.7 million, or $3.23 per share, compared to a net loss of $56.8 million in Q4 2023 [8] - Full year net loss was $93.3 million, or $11.87 per share, compared to a net loss of $152.5 million in 2023 [12] - Adjusted EBITDA loss for Q4 2024 was $19.2 million, above the company's guidance range; full year adjusted EBITDA loss was $70.0 million [7][12] - The total comprehensive loss for Q4 2024 was $28,378,000, compared to $55,065,000 in Q4 2023, showing a 48.5% reduction [26] - The company experienced a full year net loss of $93,318,000 in 2024, compared to a net loss of $152,458,000 in 2023 [37] Gross Margin and Expenses - Fourth quarter gross margin declined approximately 670 basis points to 31.3% compared to 38.0% in Q4 2023; full year gross margin improved approximately 170 basis points to 42.7% [5][9] - Marketing expense in 2024 totaled $41.6 million, or 21.9% of net revenue, compared to $49.0 million, or 19.3% in 2023, primarily driven by decreased digital advertising spend [10] - Total operating expenses for Q4 2024 were $43,249,000, a reduction of 49.1% compared to $85,013,000 in Q4 2023 [26] - The net loss for Q4 2024 was $25,678,000, compared to a net loss of $56,779,000 in Q4 2023, indicating a 54.8% improvement [26] Inventory and Cash Flow - Inventory at quarter end was $44.1 million, representing a decrease of 23.6% versus a year ago [7] - Cash and cash equivalents decreased to $66,732,000 at the end of 2024 from $130,032,000 at the end of 2023 [30] - The company reported a net cash used in operating activities of $63,860,000 for 2024, compared to $30,222,000 in 2023 [32] Assets and Liabilities - Total assets decreased to $188,879,000 in 2024 from $312,705,000 in 2023, a decline of 39.6% [30] - Total liabilities decreased to $87,194,000 in 2024 from $127,376,000 in 2023, a reduction of 31.6% [30] Future Guidance and Strategic Changes - The company provided 2025 guidance with expected net revenue of $175 million to $195 million, including U.S. net revenue of $145 million to $160 million [13] - The transition to a distributor model in international markets is expected to negatively impact revenue by approximately $18 million to $23 million in 2025 [13] - The company closed a total of 14 stores in the U.S. throughout 2024, reducing the total store count to 30 by December 2024 [40] - The company transitioned operations of multiple international stores to distributors, including six stores in China in Q3 2024 [40] International Revenue - International net revenue for Q4 2024 was $9,882,000, down 38.5% from $16,190,000 in Q4 2023 [37] Stock-Based Compensation and Impairment - The company reported stock-based compensation expense of $2,579,000 for Q4 2024, down from $3,684,000 in Q4 2023 [34] - The impairment expense for Q4 2024 was $1,800,000, consistent with the same amount in Q4 2023 [34]

Core Insights - Allbirds, Inc. reported financial results for Q4 and full year 2024, showing a decrease in net revenue and net loss compared to the previous year [2][10]. Financial Performance - Q4 2024 net revenue decreased by 22.4% to $55.9 million from $72.0 million in Q4 2023, primarily due to lower unit sales and international distributor transitions [5][11]. - Full year 2024 net revenue decreased by 25.3% to $189.8 million compared to $254.1 million in 2023 [11]. - Q4 gross profit was $17.5 million, down from $27.4 million in Q4 2023, with gross margin declining approximately 670 basis points to 31.3% [6][10]. - Full year gross margin improved by approximately 170 basis points to 42.7% in 2024 from 41.0% in 2023 [12][15]. - Q4 net loss was $25.7 million, or $3.23 per share, compared to a net loss of $56.8 million, or $7.39 per share, in Q4 2023 [9][10]. - Full year net loss was $93.3 million, or $11.87 per share, compared to $152.5 million, or $20.10 per share, in 2023 [10][15]. Operating Expenses - Selling, general, and administrative expenses (SG&A) in Q4 2024 were $29.2 million, or 52.2% of net revenue, down from $41.5 million, or 57.7% in Q4 2023 [7][10]. - Marketing expenses totaled $12.3 million, or 22.0% of net revenue, compared to $14.9 million, or 20.6% in Q4 2023 [8][10]. - Full year SG&A was $133.4 million, or 70.3% of net revenue, compared to $174.0 million, or 68.5% in 2023 [13][15]. Balance Sheet and Cash Flow - As of December 31, 2024, Allbirds had $66.7 million in cash and cash equivalents, with no outstanding borrowings under its $50.0 million revolving credit facility [10][16]. - Inventory at the end of Q4 2024 was $44.1 million, a decrease of 23.6% compared to the previous year [10][16]. 2025 Financial Guidance - Allbirds anticipates a negative revenue impact of approximately $18 million to $23 million in 2025 due to the transition from a direct selling model to a distributor model in international markets and the closure of 20 stores in the U.S. [17][19]. - For Q1 2025, the company projects net revenue between $28 million and $33 million, with adjusted EBITDA loss expected to be between $28 million and $25 million [19].

Core Insights - Allbirds, Inc. (BIRD) is expected to report a quarterly loss of $3.40 per share, a 22.7% increase in loss compared to the same period last year [1] - Revenue is forecasted at $55.5 million, reflecting a year-over-year decrease of 22.9% [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Breakdown - 'Net Revenue- International' is projected to be $10.16 million, a decrease of 37.3% from the prior-year quarter [4] - 'Net Revenue- United States' is estimated to reach $45.20 million, suggesting a year-over-year decline of 19% [4] - Analysts expect the number of 'Stores' to be 34, down from 60 in the previous year [4] Market Performance - Allbirds, Inc. shares have shown a return of -11.6% over the past month, compared to a -4.1% change in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [5]

Core Insights - Allbirds launched a new content series titled "Cards On The Table," featuring a diverse lineup of guests and hosted by Stanley Tucci, aimed at exploring human connections through personal stories [1][2][5] Group 1: Series Overview - The series consists of four episodes and is part of the "Allbirds by Nature" platform, designed to foster curiosity and connection among guests from various backgrounds [1][2] - The first episode features guests such as Tan France, Carlos Sainz Jr., and Mel C, with future episodes including a range of notable personalities [5][7] Group 2: Production and Collaboration - The series is produced in collaboration with OBB Pictures and Salt Productions, with executive producers including Stanley Tucci and several others from OBB Media [4][6] - Dr. Orna Guralnik, a clinical psychologist, contributed to the series by creating discussion cards tailored to each episode's guests, enhancing the depth of conversations [3][5] Group 3: Brand Values and Marketing - Allbirds emphasizes its core value of "Live Curiously," aiming to highlight individuals who embody this ethos through their unique stories and approaches [5][7] - The series will be available weekly on Rolling Stone's YouTube channel and across Allbirds' digital platforms, promoting the brand's commitment to authentic storytelling [4][5]

Core Viewpoint - Allbirds, Inc. will release its fourth quarter and full year 2024 financial results on March 11, 2025, after market close, followed by a conference call to discuss the results [1]. Company Overview - Allbirds, Inc. is a global modern lifestyle footwear brand founded in 2015, focusing on sustainability and innovative materials [3]. - The company is known for its iconic Wool Runner and offers a range of products designed for superior comfort, utilizing materials such as Merino wool, tree fiber, and sugarcane [3]. Investor Relations - A live webcast of the upcoming conference call will be available on the Allbirds investor relations website, with a replay accessible for 12 months post-call [2]. - Contact information for investor relations and media inquiries is provided [4].

Core Viewpoint - Allbirds is launching the M0.0NSHOT Zero, the world's first net zero carbon shoe, on February 6, 2025, showcasing a significant advancement in sustainable footwear through innovative use of carbon-negative materials [1][3][6]. Product Details - The M0.0NSHOT Zero will be available in a limited edition of 500 pairs, sold in select cities including New York, London, Dubai, Tokyo, and Seoul [2][9]. - Each pair will feature a unique production number to highlight its rarity and significance [2]. - The shoe is priced at $200 USD and comes in unisex sizes 6-11 [8]. Sustainability Innovation - The shoe utilizes carbon-negative, regenerative wool sourced from New Zealand's Lake Hawea Station, which sequesters more carbon than it emits due to sustainable farming practices [4][10]. - Allbirds aims to reduce the carbon footprint of its products by using a greater share of regenerative wool, marking a shift in sustainable design philosophy [3][4]. Development Process - The project began in 2022 with the goal of creating a net zero carbon shoe, a challenging target compared to the industry average sneaker's carbon footprint of 14 kg CO₂e [6]. - After extensive research and development, including dozens of iterations, the first prototype was unveiled in 2023 [6]. Industry Impact - Allbirds has published an open-sourced toolkit to share innovations and methodologies that contributed to the M0.0NSHOT Zero, encouraging other brands to adopt sustainable practices [5]. - The company emphasizes the potential for the fashion industry to drive innovation in the climate fight, advocating for progress over perfection [6].