Financial Data and Key Metrics Changes - Net revenue for Q1 2023 was $109.4 million, down 23.6% from $143.2 million in the prior year period, primarily due to reduced advertising spend and softer industry demand [81][87] - Gross profit was $43.2 million with a gross margin of 39.5%, an increase from 36.1% in Q1 2022, attributed to lower material and labor costs and improved manufacturing efficiency [88] - Net loss for the quarter was $23.4 million compared to $13.6 million a year ago, while adjusted net loss was $12 million or $0.12 per share, an improvement from $16.5 million or $0.24 per share in the prior year [89] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) net revenues declined by 22.5%, with e-commerce down 30.1%, partially offset by a 24.4% increase in showroom net revenue due to the addition of 21 showrooms [64] - Wholesale net revenue declined 25.3%, impacted by the upcoming launch of new premium products [64] Market Data and Key Metrics Changes - The overall mattress category remains soft, with no significant promotional pressure noted, although the company expects some improvement as new products are launched [111] - The company is optimistic about the performance of its new product lineup, which includes the Purple Essential, Premium, and Luxe collections, aimed at different market segments [83][84] Company Strategy and Development Direction - The strategic plan includes product lineup expansion, new brand positioning, investment in wholesale partnerships, and showroom expansion, with a target of 200 stores in the long term [86][91] - The company is focused on enhancing relationships with wholesale partners and improving sell-through rates at higher average selling prices [61][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new product launch and its potential to drive profitable growth despite current market challenges [59][93] - The company anticipates stronger revenue in Q2 compared to Q1 but below Q2 of the previous year, with adjusted EBITDA reflecting launch costs [68][91] Other Important Information - Operating expenses were $65.2 million, or 59.6% of net revenue, down from $70.0 million or 48.9% in the prior year, primarily due to reduced marketing expenses [65] - The company ended Q1 with cash and cash equivalents of $54.5 million, up from $41.8 million at the end of 2022 [90] Q&A Session Summary Question: Can you provide clarity on the second quarter revenue guidance? - Management indicated that revenue is expected to be better than Q1 but below Q2 of the previous year, with expectations set appropriately [6][6] Question: What are the implications of the channel fill for Q2? - Management noted that while there may be a unit bump from backfilling floor samples, significant revenue bumps are not expected until new products are sold through [27][27] Question: How is the performance across different product tiers? - Management reported that there has been no significant trade-down observed, with some consumers trading up to higher-end products [9][9] Question: What is the outlook for advertising spend in Q2? - Advertising spend is expected to ramp up significantly in the second half of the year, with a focus on improving marketing efficiency [10][10] Question: How is the company managing inventory levels? - The company expects to run with somewhat increased inventories through Labor Day, as wholesale partners have delayed some introductions [21][21]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2023 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: 001-37523 PURPLE INNOVATION, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-4078206 | | ...

Sales and Revenue - In 2022, direct-to-consumer (DTC) sales accounted for 57.4% of net revenues, while wholesale sales contributed 42.6%[25] - Sleep products represented 91.2% of net revenues, with other products making up 8.8%[25] - The company anticipates a 40% increase in effective marketing after launching new Premium and Luxe product categories in May 2023[38] - The company expects to increase the number of beds in approximately 3,400 retail doors by 1.2 to 1.4 beds per door in 2023, contributing an estimated $1,000 to $1,500 per month per incremental slot[38] - The company is experiencing weaker demand partly due to current inflationary trends, which may affect revenue growth sustainability[146] - Persistent inflation and shifts in consumer spending towards services may adversely affect demand for the company's premium-priced products, impacting sales and financial position[121] - The company may face challenges in anticipating consumer trends, which could lead to reduced net sales and lower gross profit margins, particularly as consumers shift preferences from online to brick-and-mortar shopping[120] Product Development and Innovation - In 2022, the company acquired Advanced Comfort Technologies, Inc., allowing it to expand into the luxury mattress segment and own exclusive rights to its Hyper-Elastic Polymer technologies[31] - The company plans to launch more new mattresses in 2023 than in all previous years combined, with a focus on innovation and new technologies[38] - The company plans to introduce three mattress collections in 2023: Essentials, Premium, and Luxe, featuring the patented Hyper-Elastic Polymer technology[5] - The proprietary Hyper-Elastic Polymer technology developed by the company can stretch up to 15 times its resting size without losing shape[77] - The company has developed a new innovation center in Draper, Utah, comprising approximately 61,000 sq ft, expected to be occupied in June 2023[58] Retail and Distribution - The company added 27 Purple owned retail showrooms in 2022, totaling 55 locations across the U.S., with plans to open 11 more in 2023[26] - The company has expanded its retail presence to 55 owned showrooms across the United States and plans to continue expanding this footprint[50] - The company is expanding into wholesale distribution channels, but there is uncertainty regarding the success of these partnerships and the volume of expected purchases[160] - The company has established relationships with multiple wholesale partners, including Mattress Firm and Macy's, to increase product placements and consumer exposure[51] - Operating Purple owned retail showrooms involves additional risks, including increased expenses and obligations related to leases and employee management[162] Financial Condition and Risks - The company has significant debt obligations, having paid off $45.0 million to former lenders, who hold approximately 44.7% of the company's outstanding shares[176] - The company may need additional capital to execute its business plan and fund operations, which may not be obtainable on acceptable terms[113] - The company has entered into multiple amendments to the 2020 Credit Agreement to avoid breaches of financial covenants, including a fifth amendment that reduced access to the revolving credit facility from $55 million to $50 million[116] - The company has access to a $50 million revolving credit facility, but its ability to access these funds is subject to certain conditions and restrictive covenants[115] - The company experienced significant fluctuations in operating results and growth rates, making future results difficult to predict[99] - The company has a comprehensive risk factor summary that outlines potential risks affecting its business and financial condition[92] Supply Chain and Production - The company faces risks related to supply chain constraints, including the availability of raw materials and increased production costs[101] - The ongoing COVID-19 pandemic continues to impact the company's supply chain, workforce, and operations[98] - Shipping and freight delays due to port congestion and container shortages may adversely affect the ability to deliver products on time[190] - The company relies on key suppliers for raw materials and components, and disruptions in supply could harm sales and profitability[189] - Supply chain constraints and increases in raw material costs have been noted, which could adversely impact production capacity and gross margins[138] Employee and Talent Management - As of March 20, 2023, the company had approximately 1,600 employees, a decrease of about 45% from the end of 2021[67] - In 2022, the company launched the Pinnacle Program to identify high-potential employees for mentorship, enhancing talent development[70] - The company has invested in better recruitment technology to improve candidate experience as part of its talent acquisition strategy[69] - The company is focused on delivering competitive and transparent compensation and benefits to enhance employee retention[71] - The company has implemented safety initiatives and restructured its on-site safety departments to promote employee safety[72] Marketing and Brand Strategy - DTC efforts are complemented by multiple wholesale relationships with leading retailers in various sectors, enhancing market presence[25] - The company emphasizes data-driven marketing strategies to enhance brand awareness and customer engagement, with a focus on premium mattress market share growth in the second half of 2023[46] - The company relies heavily on internet-based advertising, which has seen increased costs, potentially affecting the efficiency of marketing expenditures[166] - Advertising costs on platforms like Google are increasing, which may adversely affect profitability if not managed effectively[168] - The company is relying on relationships with traditional and digital media partners to drive traffic to its website and generate new customers, which are critical for its financial condition[167] Legal and Regulatory Compliance - The company is subject to environmental regulations that may require costly expenditures and could expose it to liability[216] - Legislative proposals addressing greenhouse gas emissions could increase manufacturing costs and impact future financial condition[218] - Changes in federal regulations effective in 2010 have placed additional restrictions on consumer credit programs, potentially impacting sales and profitability[186] - Regulatory compliance costs may increase due to changing laws and regulations, impacting financial condition and results of operations[215] Acquisitions and Integration - The company is integrating systems from the 2022 acquisition of Intellibed, which may require significant resources and could lead to material misstatements if not managed effectively[201] - The company may encounter challenges in integrating acquisitions, which could negatively impact growth and financial condition[153] - The company may face challenges in expanding into new markets due to lack of brand recognition and acceptance, which could lead to costlier and less profitable efforts[128] Market Competition - The company operates in a highly competitive sleep products industry, facing risks of losing market share and significant customers due to competition from both established and new entrants[123] - The introduction of new luxury mattress models is underway, but the company has limited experience in this market, which may hinder effective competition[124] - The company is facing increasing competition from direct-to-consumer internet-based retailers, driving up marketing costs[169] - The company faces challenges from competitors using its trademarks in search engines, which could confuse consumers and impact sales[169] Operational Challenges - The company has significant related-party transactions that may lead to conflicts of interest[98] - The final assembly of some mattresses is dependent on third-party partners, and disruptions in these relationships could adversely affect production and financial results[183] - Information technology system failures or disruptions could significantly impact operations, including order processing and inventory management[205] - Cybersecurity threats and natural disasters pose risks to the integrity and security of the company's information systems, potentially affecting sales and profitability[206] - Previous material weaknesses in internal controls have resulted in restatements of financial statements, posing risks for future litigation[202] - The company is required to prepay revolving loans if cash and cash equivalents exceed $25.0 million, limiting its ability to accumulate cash[207] Economic and External Factors - The ongoing COVID-19 pandemic has adversely affected the company's supply chain, workforce, operations, marketing, and customer demand, impacting financial condition and results of operations[208] - Government measures to prevent COVID-19 spread have resulted in disruptions to the company's activities and operations, negatively impacting business and financial condition[209] - The duration of the pandemic's impact remains uncertain, potentially affecting liquidity and the ability to access capital[211] - The pandemic has slowed anticipated wholesale partner and showroom plans, leading to a temporary contraction in wholesale and retail businesses[213] - E-commerce sales initially increased during the pandemic but have since declined due to the return of consumers to physical stores and economic softening[214]

Purple Innovation, Inc. (NASDAQ:PRPL) Q4 2022 Earnings Conference Call March 16, 2023 4:30 PM ET Company Participants Cody McAlester – Investor Relations Rob DeMartini – Chief Executive Officer Bennett Nussbaum – Chief Financial Officer Jack Roddy – Chief People Officer Conference Call Participants Brad Thomas – KeyBanc Capital Jeremy Hamblin – Craig-Hallum Bobby Griffin – Raymond James Seth Basham – Wedbush Securities Matt Koranda – ROTH MKM Keith Hughes – Truist Securities Atul Maheswari – UBS Curtis Nagl ...

Purple Innovation, Inc. (NASDAQ:PRPL) Q3 2022 Earnings Conference Call November 9, 2022 4:30 PM ET Company Participants Cody McAlester - Investor Relations Bennett Nussbaum - Interim Chief Financial Officer & Treasurer Robert DeMartini - Chief Executive Officer Conference Call Participants Brad Thomas - KeyBanc Capital Markets Seth Basham - Wedbush Securities Bobby Griffin - Raymond James Brian Nagel - Oppenheimer Jeremy Hamblin - Craig-Hallum Capital Group Matt Koranda - ROTH Capital Atul Maheswari - UBS O ...

Purple Innovation, Inc. (NASDAQ:PRPL) Q2 2022 Results Conference Call August 9, 2022 4:30 PM ET Company Participants Cody McAlester - ICR Rob DeMartini - CEO Bennett Nussbaum - CFO Conference Call Participants Brad Thomas - KeyBanc Capital Markets Matt McCartney - Wedbush Securities Alessandra Jimenez - Raymond James Brian Nagel - Oppenheimer Atul Maheswari - UBS Keith Hughes - Truist Matt Koranda - ROTH Capital Jack Cole - Craig-Hallum Curtis Nagle - Bank of America Operator Good day, everyone. And welcome ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022 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: 001-37523 PURPLE INNOVATION, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-4078206 | | ...

Purple Innovation, Inc. (NASDAQ:PRPL) Q1 2022 Earnings Conference Call May 10, 2022 4:30 PM ET Company Participants Cody McAlester - ICR Rob DeMartini - Chief Executive Officer Bennett Nussbaum - Chief Financial Officer Conference Call Participants Seth Basham - Wedbush Securities Brad Thomas - KeyBanc Capital Markets Alessandra Jimenez - Raymond James Atul Maheswari - UBS Keith Hughes - Truist Matt Koranda - ROTH Capital Curtis Nagle - Bank of America Operator Good afternoon, ladies and gentlemen. Welcome ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2022 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: 001-37523 PURPLE INNOVATION, INC. | Delaware | 47-4078206 | | --- | --- | | (State or other jurisdiction of | (I.R.S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ 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: 001-37523 PURPLE INNOVATION, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-4078206 | | ...