Purple Innovation, Inc. (NASDAQ:PRPL) Q3 2021 Earnings Conference Call November 9, 2021 4:30 PM ET Company Participants Cody McAlester - ICR Joseph Megibow - CEO Bennett Nussbaum - Interim CFO Conference Call Participants Bobby Griffin - Raymond James Atul Maheswari - UBS Seth Basham - Wedbush Securities Brian Nagel - Oppenheimer Bradley Thomas - KeyBanc Alec Legg - B. Riley Securities Matthew Koranda - ROTH Capital Keith Hughes - Truist Securities Operator Good afternoon, ladies and gentlemen. Welcome to P ...

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 September 30, 2021 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) (State or other jurisdi ...

Purple Innovation, Inc. (NASDAQ:PRPL) Q2 2021 Earnings Conference Call August 9, 2021 4:30 PM ET Company Participants Brendon Frey - Investor Relations Joe Megibow - Chief Executive Officer John Legg - Chief Operating Officer Craig Phillips - Chief Financial Officer Conference Call Participants Seth Basham - Wedbush Securities Curtis Nagle - Bank of America Brad Thomas - KeyBanc Capital Markets Jeremy Hamblin - Craig-Hallum Capital Group Brian Nagel - Oppenheimer Susan Anderson - B. Riley Bobby Griffin - Ra ...

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, 2021 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 (State o ...

Purple Innovation, Inc. (NASDAQ:PRPL) Q1 2021 Results Earnings Conference Call May 17, 2021 8:30 AM ET Company Participants Brendon Frey - ICR Joseph Megibow - CEO & Director Craig Phillips - CFO & Treasurer Conference Call Participants Bobby Griffin - Raymond James Susan Anderson - B. Riley FBR Brian Nagel - Oppenheimer Brad Thomas - KeyBanc Capital Markets Jeremy Hamblin - Craig-Hallum Seth Basham - Wedbush Securities Operator Good morning, ladies and gentlemen. Welcome to Purple Innovation First Quarter ...

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, 2021 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) (State or other jurisdictio ...

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, 2020 ☐ 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 | | ...

Financial Data and Key Metrics Changes - In Q4 2020, net revenue increased by 39.9% to $173.9 million compared to $124.3 million in Q4 2019 [41] - For the full year 2020, net revenue was $648.5 million, up 51.4% from $428.4 million in 2019 [49] - Adjusted EBITDA for Q4 2020 was $12.2 million, a 114% increase from $5.8 million in Q4 2019 [48] - The company reported a net income of $10.9 million for 2020, compared to a net loss of $12.4 million in 2019 [53] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue grew by 57% in Q4 2020, while wholesale channel revenue increased by 9% [41] - For the full year, DTC channel revenue increased by 83%, while wholesale revenue remained relatively consistent with the prior year [49] - Innovative pillows and seat cushions saw over 140% year-over-year growth, with over 1 million lifetime units sold for each category [17] Market Data and Key Metrics Changes - The company estimates its overall U.S. mattress market share to be over 3%, with nearly 6% in the premium category above $1,000 [17] - The wholesale business faced challenges in Q4 due to unanticipated store closures, particularly in Canada, affecting sales [19] Company Strategy and Development Direction - The company is focusing on three main themes for 2021: customer lifetime value, multi-category expansion, and product differentiation [20][21][22] - Six specific initiatives to support these themes include expanding manufacturing capacity, growing wholesale presence, launching a new e-commerce platform, accelerating showroom rollout, introducing new products, and launching a new brand campaign [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and adapt to changing consumer behavior during the pandemic [11] - The company expects full-year revenue growth of 30% to 36% over 2020, with adjusted EBITDA between $90 million and $100 million [39][60] - Management noted that 2021 is an investment year, with a focus on building capacity and infrastructure to support growth [88][92] Other Important Information - The company ended 2020 with cash and cash equivalents of $123 million, up from $33.5 million at the end of 2019 [57] - Capital expenditures for 2021 are projected to be between $45 million and $50 million, primarily for the new Georgia manufacturing facility and showroom expansion [61] Q&A Session Summary Question: Regarding the slowdown in the wholesale channel in December - Management acknowledged that while wholesale demand has not rebounded as quickly as anticipated, the DTC business continues to grow at healthy rates [75] Question: Outlook for wholesale accounts and supply - Management confirmed that they are currently meeting all orders and have no partners on allocation, indicating strong capacity [77] Question: Revenue growth guidance for Q1 - Management stated that the guidance reflects current expectations, with improving demand trends noted in January [116] Question: Impact of mix shift on revenue growth - Management indicated that the mix shift towards wholesale has affected revenue growth rates, but unit sales remain in line with expectations [112] Question: Economics of new showroom units - Management shared that early signals from new showrooms indicate strong economics, with a target return on investment around 12 months [109]

Purple Innovation, Inc. (NASDAQ:PRPL) Q3 2020 Earnings Conference Call November 11, 2020 8:30 AM ET Company Participants Brendon Frey - ICR Joe Megibow - Chief Executive Officer John Legg - Chief Operating Officer Craig Phillips - Chief Financial Officer Conference Call Participants Bobby Griffin - Raymond James Brad Thomas - KeyBanc Capital Markets Curtis Nagle - Bank of America Brian Nagel - Oppenheimer Seth Basham - Wedbush Securities Susan Anderson - B. Riley FBR Atul Maheshwari - UBS Jeremy Hamblin - C ...

Financial Performance - Total net revenue increased by $69.7 million, or 59.4%, to $187.1 million for the three months ended September 30, 2020, compared to $117.4 million for the same period in 2019[218] - DTC net revenue growth was approximately 97% over the prior year third quarter, driven by increased demand for premium products[213] - Total net revenue increased by $170.5 million, or 56.1%, to $474.6 million for the nine months ended September 30, 2020, compared to $304.1 million for the same period in 2019[232] Profitability - Gross profit margin improved to 47.2% of net revenues for the three months ended September 30, 2020, up from 45.0% for the same period in 2019[219] - Gross profit increased to $223.1 million, representing 47.0% of net revenues for the nine months ended September 30, 2020, up from 42.7% in the same period of 2019[233] - Operating income increased by $13.3 million to $24.3 million for the three months ended September 30, 2020, compared to $11.0 million for the same period in 2019[224] - Operating income rose by $50.3 million, or 373.9%, to $63.7 million for the nine months ended September 30, 2020, compared to $13.4 million for the same period in 2019[238] Expenses - Marketing and sales expenses rose by $17.2 million, or 50.4%, to $51.2 million for the three months ended September 30, 2020, but decreased as a percentage of net revenue to 27.4% from 29.0%[220] - General and administrative expenses increased by $4.4 million, or 64.4%, to $11.1 million for the three months ended September 30, 2020[221] - Research and development costs increased by $0.6 million, or 57.7%, to $1.7 million for the three months ended September 30, 2020[223] - Marketing and sales expenses increased by $33.3 million, or 35.4%, to $127.3 million for the nine months ended September 30, 2020, but decreased as a percentage of net revenue to 26.8% from 30.9%[235] - Research and development costs increased by $1.7 million, or 56.9%, to $4.7 million for the nine months ended September 30, 2020, primarily due to a one-year license agreement for innovative technology[237] Cash Flow and Liquidity - As of September 30, 2020, cash was $98.0 million, an increase from $33.5 million as of December 31, 2019, and working capital was $67.4 million, up from $27.3 million[247] - Cash provided by operating activities increased to $87.5 million for the nine months ended September 30, 2020, up $71.6 million from $15.8 million in the same period of 2019[258] - Cash used in investing activities was $25.1 million for the nine months ended September 30, 2020, an increase of $19.2 million from $5.9 million in 2019, primarily due to higher purchases of property and equipment[259] - Cash provided by financing activities was $2.1 million in the nine months ended September 30, 2020, a decrease of $7.0 million from $9.1 million in 2019[260] Debt and Liabilities - Interest expense for the nine months ended September 30, 2020 was $4.0 million, compared to $3.8 million for the same period in 2019[239] - The company recognized a loss on the extinguishment of debt of approximately $5.8 million in September 2020 due to the retirement of the Amended and Restated Credit Agreement[240] - A non-cash loss of $43.3 million was recorded for the change in fair value of warrant liabilities for the nine months ended September 30, 2020[242] - Tax Receivable Agreement (TRA) liability increased by $169.0 million as of September 30, 2020, with $168.5 million recorded during the nine months ended September 30, 2020[244] - Estimated future payments under the Tax Receivable Agreement (TRA) as of September 30, 2020, are $169.0 million, with approximately $0.7 million due within the next 12 months[255] Operational Developments - The company signed a new lease for a manufacturing facility in Georgia and is proceeding with the buildout and equipment purchases[213] - The company opened two new showrooms and plans to open two more by the end of the year[213] - The company experienced a 7% increase in net revenue from wholesale customers compared to the prior year third quarter[213] - The company anticipates the new manufacturing, distribution, and office facility in Georgia to be fully operational in 2021[262] - The lease for the new facility is for 128 months, with an initial monthly rent of $147,675, increasing by 2% annually[263] - The company has returned to full production to meet increased demand following the COVID-19 pandemic[249] Compliance and Internal Controls - The company is exempt from auditor attestation requirements regarding internal control over financial reporting under Section 404(b) of the Sarbanes Oxley Act of 2002[268] - As of September 30, 2020, the company's disclosure controls and procedures were not effective due to a material weakness identified in the tax provision process[270] - The company is implementing additional steps to remediate the identified material weakness in tax processes, aiming to improve the scope and quality of controls[272] - No changes in internal control over financial reporting occurred during the nine months ended September 30, 2020, that materially affected the internal controls[273] Ownership Changes - Noncontrolling interest ownership percentage decreased to approximately 1% at September 30, 2020, down from approximately 81% at the same date in 2019[230] Tax Benefits - The income tax benefit for the nine months ended September 30, 2020, was $35.8 million, compared to no benefit for the same period in 2019[245]