Purple(US:PRPL)2025-03-13 20:10Revenue Performance - Fourth quarter 2024 net revenue decreased by 11.6% to $129.0 million, down from $145.9 million in Q4 2023[4] - Full year 2024 net revenue was $487.9 million, a decline of 4.4% compared to $510.5 million in 2023[8] - Revenues for the three months ended December 31, 2024, were $128.975 million, a decrease of 11.6% compared to $145.936 million for the same period in 2023[27] - For the three months ended December 31, 2024, adjusted revenues, net were $128,975 thousand, a decrease of 11.5% compared to $145,936 thousand for the same period in 2023[36] Profitability Metrics - Gross profit for Q4 2024 increased to $55.3 million, with a GAAP gross margin of 42.9%, an improvement of 970 basis points year-over-year[5] - Gross profit for the year ended December 31, 2024, was $181.132 million, an increase of 5.8% from $171.825 million in 2023[27] - Adjusted gross profit for the year ended December 31, 2024, was $196,574 thousand, representing an increase of 0.5% from $195,506 thousand in 2023, with an adjusted gross profit margin of 40.3%[36] EBITDA and Operating Loss - Adjusted EBITDA for Q4 2024 was $2.9 million, a significant improvement compared to $(9.8) million in the prior year[7] - Full year 2024 adjusted EBITDA improved to $(20.8) million, compared to $(54.7) million in 2023[11] - Adjusted EBITDA for the three months ended December 31, 2024, was $2.871 million, compared to $(9.791) million for the same period in 2023[34] - Operating loss for the three months ended December 31, 2024, was $(7.694) million, an improvement from $(16.196) million in the same period of 2023[27] Cash and Cash Flow - Cash and cash equivalents increased to $29.0 million as of December 31, 2024, up from $26.9 million a year earlier[12] - Cash flows from operating activities for the three months ended December 31, 2024, generated $6.761 million, compared to $1.146 million in the same period of 2023[29] - The company reported a net cash increase of $5.612 million for the three months ended December 31, 2024[29] Operating Expenses - Operating expenses for Q4 2024 were $63.0 million, down 2.6% from $64.7 million in Q4 2023[6] - Total operating expenses for the year ended December 31, 2024, were $273.315 million, a decrease of 4.3% from $285.536 million in 2023[27] - Operating expenses for the year ended December 31, 2024, were $273,315 thousand, down 4.3% from $285,536 thousand in 2023[38] Net Loss and Adjusted Net Loss - Net loss attributable to Purple Innovation, Inc. for the year ended December 31, 2024, was $(97.897) million, compared to $(120.757) million in 2023, reflecting a reduction of 18.9%[27] - Adjusted net loss for the year ended December 31, 2024, was $61,682 thousand, compared to an adjusted net loss of $72,227 thousand in 2023, reflecting a 14.5% improvement[39] - The net loss attributable to Purple Innovation Inc. for the year ended December 31, 2024, was $98,098 thousand, a decrease from $121,215 thousand in 2023[39] - Adjusted net loss per diluted share for the year ended December 31, 2024, was $0.57, compared to $0.69 for the same period in 2023[45] Strategic Initiatives - The company expects full year 2025 revenue to be in the range of $465 to $485 million and adjusted EBITDA to be flat to positive $10 million[14] - The company plans to launch the Rejuvenate 2.0 product in the second quarter of 2025, aiming to enhance profitability[3] - The company has formed a special committee to evaluate strategic alternatives, including potential mergers or sales[16] Other Financial Metrics - The weighted average common shares outstanding for the year ended December 31, 2024, were 107,139 million, an increase from 103,602 million in 2023[27] - The company incurred $2.651 million in paid-in-kind interest for the three months ended December 31, 2024[29] - The effective tax rate applied to adjusted net income before income taxes was estimated at 25.9% for the year ended December 31, 2024[44] - The company incurred restructuring related charges of $20,915 thousand in operating expenses for the year ended December 31, 2024[38] - Adjusted cost of revenues for the year ended December 31, 2024, was $291,303 thousand, down from $329,894 thousand in 2023[36] - The company reported a total cost of revenues of $306,745 thousand for the year ended December 31, 2024, compared to $338,716 thousand in 2023[36]