Allbirds(US:BIRD)2023-03-10 03:14Financial Data and Key Metrics Changes - In Q4 2022, Allbirds reported nearly $300 million in net revenue, representing a 7% year-over-year growth, or 10% growth excluding an $8 million impact related to foreign exchange [4][30] - The adjusted EBITDA for the year was negative $60 million, which included a $17 million impact from the discontinuation of certain first-generation apparel [43][66] - Cash burn was $13.6 million in Q4, continuing a trend of slowing cash burn rate [38][70] Business Line Data and Key Metrics Changes - The US business saw a decline of 14%, driven by digital softness, which offset an 8% growth in retail [68] - Full-price sell-through was approximately 85% for the year, aligning with expectations of 80% to 85% and well above the industry average [35] - The company plans to slow the pace of new store openings in 2023, with only three new stores planned compared to 19 opened in the previous year [52] Market Data and Key Metrics Changes - Active customers decreased by 11% in Q4, indicating weaker-than-expected new customer acquisition and repeat purchase behavior [97] - International growth remains vital, with a potential shift to a partnership model with distributors expected to improve profitability and reduce complexity [24][56] Company Strategy and Development Direction - The company is focusing on four key areas: reconnecting with core consumers, slowing store openings, evaluating international go-to-market strategies, and enhancing cost savings and capital efficiency [6][45] - A new Chief Transformation Officer has been appointed to drive operational improvements [6] - The company aims to achieve cash flow profitability and positive adjusted EBITDA by 2025 [31][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need to improve performance and emphasized the importance of reconnecting with core consumers [12][13] - The company expects continued gross margin pressure due to markdowns and inventory management challenges in 2023 [30][100] - Management expressed confidence in the brand's strength and the potential for growth beginning in 2024 [62][82] Other Important Information - The company has made leadership changes, including the appointment of a new CFO, Annie Mitchell, who has extensive experience in the industry [29][60] - The restructuring and impairment lines in the income statement will reflect costs associated with the strategic transformation [33][64] Q&A Session Summary Question: What is the product strategy moving forward? - The company plans to focus on core products and align marketing efforts to better resonate with consumers [112][113] Question: How effective are the partnerships in acquiring new customers? - Partnerships are expected to enhance brand awareness and support strong sell-through, which is critical for success [135][136] Question: What are the costs associated with exiting the direct footprint in international markets? - Costs will be evaluated as the company transitions to a distributor model, with expectations for cash neutrality or positivity [149][150] Question: Is the company open to exploring the idea of not being an independent entity? - The management believes in the long-term opportunity as an independent public company and is focused on maximizing shareholder value [128]