Allbirds Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Allbirds, Inc. reported financial results for Q4 and full year 2024, showing a decrease in net revenue and net loss compared to the previous year [2][10]. Financial Performance - Q4 2024 net revenue decreased by 22.4% to $55.9 million from $72.0 million in Q4 2023, primarily due to lower unit sales and international distributor transitions [5][11]. - Full year 2024 net revenue decreased by 25.3% to $189.8 million compared to $254.1 million in 2023 [11]. - Q4 gross profit was $17.5 million, down from $27.4 million in Q4 2023, with gross margin declining approximately 670 basis points to 31.3% [6][10]. - Full year gross margin improved by approximately 170 basis points to 42.7% in 2024 from 41.0% in 2023 [12][15]. - Q4 net loss was $25.7 million, or $3.23 per share, compared to a net loss of $56.8 million, or $7.39 per share, in Q4 2023 [9][10]. - Full year net loss was $93.3 million, or $11.87 per share, compared to $152.5 million, or $20.10 per share, in 2023 [10][15]. Operating Expenses - Selling, general, and administrative expenses (SG&A) in Q4 2024 were $29.2 million, or 52.2% of net revenue, down from $41.5 million, or 57.7% in Q4 2023 [7][10]. - Marketing expenses totaled $12.3 million, or 22.0% of net revenue, compared to $14.9 million, or 20.6% in Q4 2023 [8][10]. - Full year SG&A was $133.4 million, or 70.3% of net revenue, compared to $174.0 million, or 68.5% in 2023 [13][15]. Balance Sheet and Cash Flow - As of December 31, 2024, Allbirds had $66.7 million in cash and cash equivalents, with no outstanding borrowings under its $50.0 million revolving credit facility [10][16]. - Inventory at the end of Q4 2024 was $44.1 million, a decrease of 23.6% compared to the previous year [10][16]. 2025 Financial Guidance - Allbirds anticipates a negative revenue impact of approximately $18 million to $23 million in 2025 due to the transition from a direct selling model to a distributor model in international markets and the closure of 20 stores in the U.S. [17][19]. - For Q1 2025, the company projects net revenue between $28 million and $33 million, with adjusted EBITDA loss expected to be between $28 million and $25 million [19].