The Honest pany(HNST) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenue reached $100 million, an increase of 11% compared to $90 million in the prior year[3] - Full year revenue totaled $378 million, reflecting a 10% growth from $344 million in 2023[8] - Revenue for Q4 2024 was $99.836 million, a 10% increase from $90.264 million in Q4 2023[25] - Total revenue for the year ended December 31, 2024, reached $378,340,000, a 9.9% increase from $344,365,000 in 2023[36] Profitability and Margins - Gross margin expanded by 530 basis points to 38.8% in Q4 and by 900 basis points to 38.2% for the full year[5][9] - Adjusted EBITDA for Q4 was $9 million, up from $4 million, marking the fifth consecutive quarter of positive adjusted EBITDA[7] - The company achieved its first full year of positive adjusted EBITDA as a public company[11] - Adjusted EBITDA for Q4 2024 increased to $8,541,000, up from $4,250,000 in Q4 2023, with an adjusted EBITDA margin of 8.6%[36] Net Income and Loss - The company reported a net loss of $6 million for the full year, an improvement of $33 million from a net loss of $39 million in 2023[11] - Net loss for the year ended December 31, 2024, was $6.124 million, an improvement from a net loss of $39.238 million in 2023[29] - Net income for Q4 2024 was $(811,000), compared to a profit of $1,144,000 in Q4 2023, resulting in a net income margin of (0.8)%[36] Expenses - Operating expenses increased by $11 million in Q4, primarily due to higher selling, general & administrative expenses[6] - Operating expenses for Q4 2024 totaled $39.795 million, up from $29.100 million in Q4 2023, representing a 37% increase[25] - The company reported a significant increase in marketing expenses, which rose to $11.315 million in Q4 2024 from $7.835 million in Q4 2023, a 44% increase[25] - The company incurred $6,681,000 in securities litigation expenses during Q4 2024, compared to $379,000 in Q4 2023[36] - Stock-based compensation for the year ended December 31, 2024, was $15,675,000, slightly down from $15,804,000 in 2023[36] - Restructuring costs for the year included $2,205,000 in expenses, reflecting ongoing adjustments within the company[37] Cash and Assets - Cash balance at the end of Q4 was $75 million, with no outstanding debt[12] - Cash and cash equivalents increased to $75.435 million as of December 31, 2024, from $32.827 million at the end of 2023[27] - Total assets grew to $247.393 million in 2024, up from $201.621 million in 2023, marking a 22.7% increase[27] - Stockholders' equity increased to $174.307 million in 2024, compared to $123.139 million in 2023, a rise of 41.5%[27] Future Outlook - The company expects revenue growth of 4% to 6% for fiscal year 2025, along with adjusted EBITDA in the range of $27 million to $30 million[15]