Allbirds(BIRD) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net revenue decreased 22.4% to $55.9 million compared to $72.0 million in Q4 2023, within the company's guidance range [4] - Full year net revenue decreased 25.3% to $189.8 million compared to $254.1 million in 2023 [8] - Fourth quarter net loss was $25.7 million, or $3.23 per share, compared to a net loss of $56.8 million in Q4 2023 [8] - Full year net loss was $93.3 million, or $11.87 per share, compared to a net loss of $152.5 million in 2023 [12] - Adjusted EBITDA loss for Q4 2024 was $19.2 million, above the company's guidance range; full year adjusted EBITDA loss was $70.0 million [7][12] - The total comprehensive loss for Q4 2024 was $28,378,000, compared to $55,065,000 in Q4 2023, showing a 48.5% reduction [26] - The company experienced a full year net loss of $93,318,000 in 2024, compared to a net loss of $152,458,000 in 2023 [37] Gross Margin and Expenses - Fourth quarter gross margin declined approximately 670 basis points to 31.3% compared to 38.0% in Q4 2023; full year gross margin improved approximately 170 basis points to 42.7% [5][9] - Marketing expense in 2024 totaled $41.6 million, or 21.9% of net revenue, compared to $49.0 million, or 19.3% in 2023, primarily driven by decreased digital advertising spend [10] - Total operating expenses for Q4 2024 were $43,249,000, a reduction of 49.1% compared to $85,013,000 in Q4 2023 [26] - The net loss for Q4 2024 was $25,678,000, compared to a net loss of $56,779,000 in Q4 2023, indicating a 54.8% improvement [26] Inventory and Cash Flow - Inventory at quarter end was $44.1 million, representing a decrease of 23.6% versus a year ago [7] - Cash and cash equivalents decreased to $66,732,000 at the end of 2024 from $130,032,000 at the end of 2023 [30] - The company reported a net cash used in operating activities of $63,860,000 for 2024, compared to $30,222,000 in 2023 [32] Assets and Liabilities - Total assets decreased to $188,879,000 in 2024 from $312,705,000 in 2023, a decline of 39.6% [30] - Total liabilities decreased to $87,194,000 in 2024 from $127,376,000 in 2023, a reduction of 31.6% [30] Future Guidance and Strategic Changes - The company provided 2025 guidance with expected net revenue of $175 million to $195 million, including U.S. net revenue of $145 million to $160 million [13] - The transition to a distributor model in international markets is expected to negatively impact revenue by approximately $18 million to $23 million in 2025 [13] - The company closed a total of 14 stores in the U.S. throughout 2024, reducing the total store count to 30 by December 2024 [40] - The company transitioned operations of multiple international stores to distributors, including six stores in China in Q3 2024 [40] International Revenue - International net revenue for Q4 2024 was $9,882,000, down 38.5% from $16,190,000 in Q4 2023 [37] Stock-Based Compensation and Impairment - The company reported stock-based compensation expense of $2,579,000 for Q4 2024, down from $3,684,000 in Q4 2023 [34] - The impairment expense for Q4 2024 was $1,800,000, consistent with the same amount in Q4 2023 [34]