Shares of Honest (HNST) have been struggling lately and have lost 8.8% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the sto ...

Honest (HNST) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 87.50%. A quarter ago, it was expected that this consumer products company would post a loss of $0.08 per share when it actually produced earnings of $0.01, delivering a surprise of 112.50%.Over the last four quarters, the company ...

Updated Post Q1 2024 Earnings You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation primarily on our current expectations and projections about future events and trends that we believe may impact our business, financial condition and operating results. Please note that these forward-looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40378 The Honest Company, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of (I.R.S. Emp ...

[Executive Summary and Q1 2024 Highlights](index=1&type=section&id=Executive%20Summary%20and%20Q1%202024%20Highlights) The Honest Company delivered strong Q1 2024 results, driven by strategic transformation, achieving revenue growth, significant gross margin expansion, and reaffirming its full-year outlook [First Quarter 2024 Performance Overview](index=1&type=section&id=First%20Quarter%20Results%20Overview) The Honest Company reported a strong start to 2024, driven by its Transformation Pillars, achieving revenue growth and significant gross margin expansion, and reaffirming its full-year financial outlook - The Honest Company reported strong Q1 2024 results, with **revenue growth** and **record gross margin**, reaffirming its full-year financial outlook[1](index=1&type=chunk)[2](index=2&type=chunk) Q1 2024 Key Financial Highlights (YoY Change): | Metric | 2024 (in thousands) | 2023 (in thousands) | Change | Change (%) | | :----- | :------------------ | :------------------ | :----- | :--------- | | Revenue | $86,217 | $83,388 | $2,829 | 3% | | Gross margin | 37.0% | 24.2% | 12.8% | 1275 bps | | Operating expenses | $33,197 | $38,860 | $(5,663) | -14.6% | | Net loss | $(1,403) | $(18,867) | $17,464 | -92.6% | | Adjusted EBITDA | $2,642 | $(10,334) | $12,976 | N/A (swing to positive) | [Strategic Transformation Pillars](index=1&type=section&id=Transformation%20Pillars) The company's 'Transformation Pillars' – Brand Maximization, Margin Enhancement, and Operating Discipline – were key drivers for Q1 2024 results, contributing to revenue growth, gross margin expansion, and reduced operating expenses - Transformation Pillars (Brand Maximization, Margin Enhancement, Operating Discipline) are deeply rooted in operating practices and supported **Q1 revenue growth** and **cost structure improvements**[2](index=2&type=chunk)[3](index=3&type=chunk) - Brand Maximization drove distribution gains and strong velocities, leading to **7% growth in total tracked channel consumption** for the Company, against a 1% decline in categories[4](index=4&type=chunk)[5](index=5&type=chunk) - Margin Enhancement led to a **1,275 basis point increase in gross margin** due to lower transportation costs, price increases, efficient trade spending, and reduced product and fulfillment costs[6](index=6&type=chunk) - Operating Discipline resulted in a **$6 million decrease in operating expenses** and an **810 basis point reduction** as a percentage of revenue[7](index=7&type=chunk) [First Quarter 2024 Financial Results](index=1&type=section&id=First%20Quarter%20Results) The Honest Company achieved a 3% revenue increase, significant gross margin expansion, and substantially reduced its net loss, while turning Adjusted EBITDA positive [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) The Honest Company achieved a 3% increase in revenue, a significant 12.8 percentage point expansion in gross margin to 37.0%, and substantially reduced its net loss to $1.4 million, while turning Adjusted EBITDA positive for the second consecutive quarter Q1 2024 vs Q1 2023 Financial Performance: | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change | | :----- | :------------------- | :------------------- | :----- | | Revenue | $86,217 | $83,388 | +$2,829 | | Cost of revenue | $54,335 | $63,186 | -$8,851 | | Gross profit | $31,882 | $20,202 | +$11,680 | | Operating loss | $(1,315) | $(18,658) | +$17,343 | | Net loss | $(1,403) | $(18,867) | +$17,464 | | Basic and diluted net loss per share | $(0.01) | $(0.20) | +$0.19 | - Revenue growth was primarily driven by increases in baby apparel, wipes, and baby personal care[4](index=4&type=chunk) - Adjusted EBITDA turned positive at **$2.6 million**, compared to a negative **$10.3 million** in Q1 2023, marking the second consecutive quarter of positive Adjusted EBITDA[4](index=4&type=chunk)[8](index=8&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company ended Q1 2024 with a stronger cash position and no debt, demonstrating improved working capital management and a positive shift in operating cash flow Q1 2024 Balance Sheet and Cash Flow Highlights: | Metric | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | Change | | :----- | :---------------------------- | :---------------------------- | :----- | | Cash, cash equivalents and short-term investments | $34,000 (approx) | $12,000 (approx) | +$22,000 | | Net cash provided by operating activities | $336 | $(3,000) (approx) | +$3,336 | - The Company had **no debt** on the balance sheet as of March 31, 2024[10](index=10&type=chunk) - Net cash provided by operating activities was **$336 thousand**, a significant improvement from net cash used of **$2.761 million** for the first quarter of 2023[10](index=10&type=chunk)[27](index=27&type=chunk) [2024 Financial Outlook and Long-Term Strategy](index=2&type=section&id=2024%20Financial%20Outlook) The company reaffirmed its 2024 financial outlook for revenue growth and positive Adjusted EBITDA, while outlining long-term strategic goals for sustained growth and margin expansion [Reaffirmed 2024 Outlook](index=2&type=section&id=Reaffirms%202024%20Financial%20Outlook) The Honest Company reaffirmed its full fiscal year 2024 financial outlook, expecting low-to-mid single-digit percentage net revenue growth and positive Adjusted EBITDA in the low-single digit to mid-single digit millions range - Reaffirmed full fiscal year 2024 financial outlook for revenue and Adjusted EBITDA[2](index=2&type=chunk)[11](index=11&type=chunk) - Net revenue growth of low-to-mid single digit percentage[15](index=15&type=chunk) - Positive Adjusted EBITDA in the low-single digit to mid-single digit millions range[15](index=15&type=chunk) [Long-Term Strategic Goals](index=2&type=section&id=Long-Term%20Strategy) Beyond 2024, the company remains confident in its long-term strategy targeting 4% to 6% annual revenue growth and continued Adjusted EBITDA margin expansion - Long-term strategy beyond 2024 targets **4% to 6% annual revenue growth** and continued Adjusted EBITDA margin expansion[11](index=11&type=chunk) - Additional strategic plan information is available in the Investor Presentation on the Company's Investor Relations website[11](index=11&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the Q1 2024 webcast, forward-looking statement disclaimers, company overview, and contact information [Webcast and Conference Call](index=2&type=section&id=Webcast%20and%20Conference%20Call%20Information) The company scheduled a webcast and conference call for May 8, 2024, to discuss Q1 2024 results, with replay available online - A webcast and conference call for Q1 2024 results was scheduled for May 8, 2024, at 1:30 p.m. Pacific time/4:30 p.m. Eastern time[12](index=12&type=chunk) - A replay of the webcast will be available on the Company's website for one year[12](index=12&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future financial performance, strategic initiatives, and operations, which are subject to substantial risks and uncertainties detailed in SEC filings - This press release contains forward-looking statements about future financial performance, liquidity, strategic initiatives, and operations, identifiable by words like 'anticipate,' 'expect,' 'plan,' etc[13](index=13&type=chunk) - Forward-looking statements are subject to risks and uncertainties described in the Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent SEC filings[15](index=15&type=chunk) - Investors should not unduly rely on these statements as actual results may differ materially[16](index=16&type=chunk)[18](index=18&type=chunk) [About The Honest Company](index=3&type=section&id=About%20The%20Honest%20Company) The Honest Company, founded in 2012, is a personal care company offering clean- and sustainably-designed products across various categories, available online and in approximately 49,000 retail locations in the US and Canada - The Honest Company (NASDAQ: HNST) is a personal care company founded in 2012, focused on clean- and sustainably-designed products[19](index=19&type=chunk) - Product categories include diapers, wipes, baby personal care, beauty, apparel, household care, and wellness[19](index=19&type=chunk) - Products are available via Honest.com, leading online retailers, and approximately **49,000 retail locations** across the United States and Canada[19](index=19&type=chunk) [Contacts](index=3&type=section&id=Investor%20Contacts) Contact information for investor relations and media inquiries is provided - Investor Contacts: Elizabeth Bouquard (ebouquard@thehonestcompany.com), investors@thehonestcompany.com[20](index=20&type=chunk) - Media Contact: Jennifer Kroog Rosenberg (jrosenberg@thehonestcompany.com)[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the company's Q1 2024 comprehensive loss, balance sheets, and cash flow statements, highlighting improved financial health [Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The condensed consolidated statements of comprehensive loss show a significant reduction in net loss from $18.9 million in Q1 2023 to $1.4 million in Q1 2024, driven by increased gross profit and reduced operating expenses Condensed Consolidated Statements of Comprehensive Loss (Q1 2024 vs Q1 2023): | (in thousands) | 2024 | 2023 | | :------------- | :--- | :--- | | Revenue | $86,217 | $83,388 | | Cost of revenue | $54,335 | $63,186 | | Gross profit | $31,882 | $20,202 | | Total operating expenses | $33,197 | $38,860 | | Operating loss | $(1,315) | $(18,658) | | Net loss | $(1,403) | $(18,867) | | Basic and diluted net loss per share | $(0.01) | $(0.20) | [Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2024, shows total assets of $198.1 million and total liabilities of $73.3 million, with a slight decrease in total assets from December 31, 2023, and no long-term debt Condensed Consolidated Balance Sheets (March 31, 2024 vs Dec 31, 2023): | (in thousands) | March 31, 2024 | December 31, 2023 | | :------------- | :------------- | :---------------- | | Total current assets | $156,364 | $157,772 | | Total assets | $198,071 | $201,621 | | Total current liabilities | $53,662 | $56,710 | | Total liabilities | $73,304 | $78,482 | | Total stockholders' equity | $124,767 | $123,139 | - Cash and cash equivalents increased to **$33.6 million** from **$32.8 million** at year-end 2023[25](index=25&type=chunk) - No preferred stock issued or outstanding, and common stock shares increased to **97.2 million** from **95.9 million**[25](index=25&type=chunk) [Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement indicates a positive net cash flow from operating activities of $336 thousand in Q1 2024, a significant improvement from a net cash outflow in the prior year, contributing to an overall increase in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (Q1 2024 vs Q1 2023): | (in thousands) | 2024 | 2023 | | :------------- | :--- | :--- | | Net cash provided by (used in) operating activities | $336 | $(2,761) | | Net cash (used in) provided by investing activities | $(76) | $2,480 | | Net cash provided by (used in) financing activities | $498 | $(15) | | Net increase (decrease) in cash and cash equivalents | $758 | $(296) | | Cash and cash equivalents, end of period | $33,585 | $9,221 | - The positive shift in operating cash flow was partly due to changes in accounts receivable and inventories[27](index=27&type=chunk) [Use of Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the definition and reconciliation of Adjusted EBITDA, a non-GAAP measure used to assess the company's operational performance [Explanation of Adjusted EBITDA](index=7&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Adjusted EBITDA is presented as a non-GAAP financial measure to provide additional insight into operating performance by excluding certain non-recurring or non-cash items, though it has limitations and should be considered alongside GAAP results - Adjusted EBITDA is a non-GAAP financial measure used by management to evaluate performance, determine incentive compensation, and for internal planning[29](index=29&type=chunk)[31](index=31&type=chunk) - It excludes interest, income tax, depreciation, amortization, stock-based compensation, litigation fees, CEO/Founder transition expenses, and restructuring expenses[30](index=30&type=chunk) - Adjusted EBITDA has limitations, such as not reflecting capital commitments, tax payments, or certain non-ordinary cash expenses, and may not be comparable to other companies' measures[32](index=32&type=chunk) [Reconciliation to Net Loss](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The reconciliation table details the adjustments made to net loss to arrive at Adjusted EBITDA, showing a significant improvement from a negative $10.3 million in Q1 2023 to a positive $2.6 million in Q1 2024 Reconciliation of Net Loss to Adjusted EBITDA (Q1 2024 vs Q1 2023): | (in thousands) | 2024 | 2023 | | :------------- | :--- | :--- | | Net loss | $(1,403) | $(18,867) | | Interest and other (income) expense, net | $63 | $189 | | Income tax provision | $25 | $20 | | Depreciation and amortization | $717 | $668 | | Stock-based compensation | $2,523 | $3,772 | | Securities litigation expense | $402 | $1,178 | | CEO and Founder transition expense | $158 | $1,277 | | Restructuring costs | $— | $1,350 | | Payroll tax expense related to stock-based compensation | $157 | $79 | | **Adjusted EBITDA** | **$2,642** | **$(10,334)** | - Adjustments for Q1 2024 primarily included **stock-based compensation ($2.5M)**, **depreciation and amortization ($0.7M)**, and **securities litigation expense ($0.4M)**[34](index=34&type=chunk) - Restructuring costs, which were **$1.35 million** in Q1 2023, were **zero** in Q1 2024[34](index=34&type=chunk)

LOS ANGELES, April 24, 2024 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ:HNST), a personal care company dedicated to creating clean- and sustainably-designed products, today announced that it will report first quarter 2024 financial results after the market closes on Wednesday, May 8, 2024. The Company will host an investor conference call and webcast to review first quarter 2024 financial results at 1:30pm PT/4:30pm ET on the same day. The live webcast can be accessed at https://investors.honest.com. For ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Jessica Alba is departing from her role as chief creative officer at The Honest Company.Alba, who founded the personal care company, will remain on its board of directors, The Honest Company said in a Tuesday (April 9) press release.“While there never would have been an easy time to make this decision, I know we have a leadership team in place to advance my founding vision and protect Honest’s reputation as an industry changemaker,” Alba said in the release. “As I transition, I look forward to contributing ...

Jessica Alba is stepping down from her role at the company she founded, The Honest Company. The star of films like Fantastic Four and Sin City founded the personal care and baby products company in 2012 and was the Chief Creative Officer. In a statement, the company said Alba would now “shift her creative energy to new endeavors” while remaining on the board of directors. “When I created The Honest Company, I set out to change the consumer product industry and I can proudly say, we did just that,” Alba sai ...

LOS ANGELES, April 09, 2024 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ:HNST), a personal care company dedicated to creating clean- and sustainably-designed products, recently reported record quarterly sales and profits for the fourth quarter of 2023, along with an updated long-term growth vision. With this growth vision in place and a strengthened business model, the company's Founder Jessica Alba has determined that now is the right time to depart from her role as Chief Creative Officer, allowing her t ...