Financial Data and Key Metrics Changes - Net revenue increased by 38% year-over-year to $84 million [8] - Gross margins expanded by 650 basis points compared to the fourth quarter [8] - Operating expenses as a percentage of net revenue declined to 35% from 48% in Q1 2018 [8] - Operating income was $4.8 million compared to an operating loss of $3.6 million in Q1 2018 [28] - Adjusted EBITDA was $6.2 million versus negative adjusted EBITDA of $0.8 million last year [31] Business Line Data and Key Metrics Changes - Wholesale business saw significant gains, with revenue from this channel comprising approximately 36% of net revenue for the quarter compared to 6% last year [25] - Direct-to-consumer (DTC) sales were down 13% year-over-year, attributed to increased competition and rising customer acquisition costs [11] - The company opened 150 new Macy's stores and experienced healthy same-store sales increases at other wholesale partners [9] Market Data and Key Metrics Changes - The company reported a strong start to 2019, with demand for mattresses being encouraging [7] - The DTC customer acquisition costs have risen steadily over the last 18 months, creating headwinds for profitable growth in this channel [11] Company Strategy and Development Direction - The company is focusing on four key areas for growth: product innovation, omnichannel retailing, organizational effectiveness, and brand development [16] - Initiatives include improvements in manufacturing processes and fulfillment capabilities, as well as expanding retail partnerships [19][21] - The company aims to position itself for long-term success while building out its growth platforms [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in turning the business around, indicating that the foundational work is yielding results [34] - The company anticipates continued top-line growth and improved margins in the second half of the year [33] - Management acknowledged the challenges in the DTC segment but expects improvements as marketing and site capabilities are enhanced [38] Other Important Information - The company recorded a net loss of $0.7 million compared to a net loss of $4.3 million in the prior year [30] - Cash and cash equivalents remained consistent at $12.2 million, reflecting the proceeds from additional financing [32] Q&A Session Summary Question: Direct sales performance and advertising impact - Management stated that direct sales were down 13% but aligned with expectations, and they are managing cash to drive profitable growth in wholesale [36][38] Question: Wholesale door count targets - Management did not provide an explicit target for door count but indicated it would be significantly higher than current levels [40] Question: Accounts receivable increase - The increase in accounts receivable was driven by wholesale sales, with no collectibility issues reported [45] Question: Return rates trends - Management noted that return rates are trending down year-over-year, attributed to improved delivery times and customer expectations [47][48] Question: Marketing spend allocation - Management indicated that the $3 million shift in advertising would primarily occur in Q2, with a focus on maximizing returns [50] Question: Cooperative advertising with retailers - Management confirmed ongoing partnerships with retailers for cooperative advertising to drive traffic into stores [51] Question: Wholesale business sales target - The goal for the wholesale business is expected to be higher than 30% of total sales for the year [53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2019 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 ...

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, 2018 ☐ 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) Q4 2018 Earnings Conference Call March 12, 2019 4:30 PM ET Company Participants Brendon Frey - ICR Joseph Megibow - CEO & Director Mark Watkins - CFO & Treasurer Conference Call Participants Seth Basham - Wedbush Securities Bradley Thomas - KeyBanc Capital Markets Peter Keith - Piper Jaffray Companies Robert Griffin - Raymond James & Associates Operator Greetings, ladies and gentlemen. Welcome to Purple Innovation Fourth Quarter 2018 Earnings Conference Call. [Operator ...