Purple(US:PRPL)2024-11-04 21:02Financial Performance - Third quarter 2024 net revenue decreased by 15.3% to $118.6 million, down from $140.0 million in Q3 2023[4] - Revenues for the three months ended September 30, 2024, were $118,598 thousand, a decrease of 15.2% compared to $139,996 thousand for the same period in 2023[18] - Adjusted revenues for the three months ended September 30, 2024, were $118,598 thousand, down from $143,120 thousand in the same period of 2023, reflecting a decrease of about 17%[25] - Net loss attributable to Purple Innovation for Q3 2024 was $(39.2) million, or $(0.36) per diluted share, compared to a net loss of $(36.0) million, or $(0.34) per diluted share in Q3 2023[7] - Net loss attributable to Purple Innovation Inc. for Q3 2024 was $89,418,000, compared to a net loss of $102,424,000 in Q3 2023, representing a 12.3% improvement year-over-year[44] - The net loss for Q3 2024 was $89,587,000, compared to $102,841,000 in Q3 2023, reflecting a decrease of 12.3%[44] Gross Margin and Profitability - GAAP gross margin for Q3 2024 was 29.7%, a decrease of 410 basis points from 33.8% in the prior year, while adjusted gross margin improved by 340 basis points to 40.5%[5] - Gross profit for the three months ended September 30, 2024, was $35,193 thousand, down from $47,309 thousand in the prior year, representing a decline of 25.6%[18] - Adjusted gross profit for the three months ended September 30, 2024, was $48,052 thousand, with an adjusted gross profit margin of 40.5%, compared to $53,125 thousand and 37.1% in the same period of 2023[25] Operating Expenses - Operating expenses increased by 2.6% to $82.0 million, driven by $19.8 million in restructuring-related charges[6] - Total operating expenses for the three months ended September 30, 2024, were $82,006 thousand, an increase of 2.4% from $79,923 thousand in the same period of 2023[18] - Total operating expenses for the three months ended September 30, 2024, were $82,006 thousand, compared to $79,923 thousand in the same period of 2023, indicating an increase of approximately 3%[27] - Restructuring related charges in operating expenses for the three months ended September 30, 2024, amounted to $(19,832) thousand, with no such charges in the same period of 2023[27] EBITDA and Adjusted Loss - Adjusted EBITDA loss narrowed to $(6.4) million in Q3 2024, compared to $(16.3) million in the same period last year[8] - EBITDA for the three months ended September 30, 2024, was $(27,391) thousand, compared to $(29,655) thousand for the same period in 2023, indicating an improvement in operational performance[22] - Adjusted net loss for Q3 2024 was $39,439,000, with a diluted loss per share of $0.37, compared to an adjusted net loss of $57,238,000 and a diluted loss per share of $0.55 in Q3 2023, indicating a 30.9% reduction in adjusted net loss[44] - Adjusted net loss for the three months ended September 30, 2024, was $(8,418) thousand, compared to $(19,358) thousand for the same period in 2023, showing a reduction in loss of about 57%[30] Cash and Liquidity - Cash and cash equivalents as of September 30, 2024, were $23.4 million, down from $26.9 million as of December 31, 2023[10] - Cash and cash equivalents at the end of the period were $23,399 thousand, compared to $26,606 thousand at the end of September 30, 2023[19] - The company reported a net cash used in investing activities of $(1,128) thousand for the three months ended September 30, 2024, compared to $(4,360) thousand in the same period of 2023, showing a reduction in cash outflow[19] - Cash flows from operating activities for the three months ended September 30, 2024, provided $1,119 thousand, a significant improvement from $(17,755) thousand in the prior year[19] Restructuring and Future Outlook - Total restructuring, impairment, and related charges in Q3 2024 amounted to $32.7 million, with additional charges of $9.9 million expected through Q2 2025[9] - The company anticipates annual EBITDA savings of $15 to $20 million starting in 2025 from its restructuring plan[9] - The company expects to be at the lower end of its guidance range for full-year 2024 net revenue of $490 million to $510 million[11] Tax and Shares - The company reported an adjusted income tax benefit of $13,785,000 for Q3 2024, down from $20,006,000 in Q3 2023, reflecting a decrease of 31.1%[44] - The estimated effective tax rate for the nine months ended September 30, 2024, and 2023 was 25.9%[47] - The weighted average shares, diluted, for Q3 2024 were 107,008,000, compared to 102,962,000 for Q3 2023, indicating an increase in shares outstanding[44]