Allbirds(BIRD) - 2022 Q4 - Annual Report

Financial Performance - Net revenue for the year ended December 31, 2022, was $297.8 million, an increase of 7.3% compared to $277.5 million in 2021[193] - The net loss for the year ended December 31, 2022, was $101.4 million, compared to a net loss of $45.4 million in 2021, indicating a significant increase in losses[223] - Total operating expenses for 2022 were $229.9 million, up from $179.5 million in 2021, reflecting a 28.0% increase[223] - Adjusted EBITDA decreased by $48.8 million in 2022, primarily driven by a $56.0 million increase in net loss[267] - The company generated approximately 28% of its full-year net revenue during the fourth quarter of 2022, compared to 36% in 2020[185] Cost and Expenses - Gross margin decreased to 43.5% for the year ended December 31, 2022, down from 52.9% in the same period of 2021[173] - Selling, general, and administrative expenses increased by $44.5 million, or 36.4%, to $166.7 million for the year ended December 31, 2022, compared to $122.2 million in 2021[195] - Total revenue for 2022 was $297.8 million, an increase of 7.3% from $277.5 million in 2021[299] - Gross profit decreased to $129.6 million in 2022, down 11.6% from $146.7 million in 2021[299] - The cost of revenue as a percentage of net revenue increased to 56.5% in 2022 from 47.1% in 2021, indicating rising costs relative to sales[224] Cash Flow and Liquidity - The company had cash and cash equivalents of $167.1 million as of December 31, 2022, funded primarily through product sales and net proceeds from equity securities[211] - Cash flows from operating activities resulted in a net cash used of $90.6 million in 2022, compared to $50.9 million in 2021, indicating a 78% increase in cash outflow[263] - The total cash, cash equivalents, and restricted cash at the end of 2022 was $167.8 million, down from $288.6 million at the end of 2021, a decrease of 42%[265] - The net cash provided by financing activities in 2022 was $3.6 million, a significant decrease from $238.2 million in 2021[274] - The company expects existing cash and cash equivalents, along with cash flow from operations, to meet cash requirements over the next 12 months[268] Workforce and Operations - The company reduced its global corporate workforce by 8% during 2022 as part of cost control actions, which are expected to continue into 2023[219] - The company operates 58 retail stores as of December 31, 2022, up from 51 stores in September 2022[181] - Impairment expense increased by $3.3 million for the year ended December 31, 2022, due to COVID-related closures impacting certain assets in China[197] Market and Economic Conditions - The company expects recent soft sales trends to continue into 2023, contributing to an overall decrease in net revenue from 2022[217] - The company acknowledges the recent rise in inflation, which has led to increased supply chain, logistics, materials, and labor costs[315] - Although inflation has not materially impacted the company's business so far, future inflation could adversely affect gross margin and operating expenses as a percentage of net revenue[315] - The company may face challenges in offsetting higher costs through price increases and cost reductions if inflation persists[315] - The company's inventory purchases from suppliers could be negatively impacted by suppliers' inability to manage inflationary pressures[315] Stock and Equity - As of December 31, 2022, total stockholders' equity was $316,769 thousand, with an accumulated deficit of $238,741 thousand[260] - Stock-based compensation increased to $20,230 thousand for the year ended December 31, 2022, reflecting growth in employee stock options[260] - The company reported a significant increase in stock-based compensation, which rose to $19.9 million in 2022 from $11.2 million in 2021, marking a 77% increase[263] - The company issued 16,850,799 shares of Class A common stock upon IPO, raising $231,551 thousand net of underwriting discounts and offering costs[260] - The fair value of stock options is based on management's estimates, which involve inherent uncertainties[256]