Allbirds Reports Fourth Quarter and Full Year 2023 Financial Results; Achieves Q4 Financial Guidance Targets
- Appointment of COO Joe Vernachio as CEO to lead strategic transformation plan
- Q4 net revenue decreased 14.5% to $72.0 million; full year net revenue down 14.7% to $254.1 million
- Q4 net loss of $56.8 million; full year net loss of $152.5 million
- Significantly reduced operating cash use in Q4 and full year 2023
- Finalized agreements with distributors in Australasia and Japan
- Strategic transformation plan focuses on product, brand, distribution, and cost efficiency
- End of year liquidity at $180.0 million, including $130.0 million cash and cash equivalents
- 2024 financial guidance targets net revenue of $190 million to $210 million with adjusted EBITDA loss of $78 million to $63 million
- Decrease in gross profit and gross margin in Q4 and full year 2023
- Increase in SG&A, marketing, impairment, and restructuring expenses
- Net loss margin increased in Q4 and full year 2023
- Adjusted EBITDA margin declined in Q4 and full year 2023
Insights
Assessing the recent financial results and leadership change at Allbirds, there are several factors to consider from a market research perspective. The reported decrease in net revenue by 14.7% year-over-year and the decline in gross margin, primarily due to a lower average selling price and increased promotional activity, raises concerns about the brand's pricing power and competitive positioning. The reduction in inventory levels, while improving liquidity, may also suggest a strategic shift to manage excess stock and align product offering with consumer demand.
Furthermore, the appointment of Joe Vernachio as CEO could indicate a strategic pivot towards operational efficiency and product innovation. However, investors might be cautious as leadership transitions can entail a period of adjustment. The company's 2024 outlook, which includes store closures and a shift to a distributor model in international markets, could be seen as a move to streamline operations and focus on profitability. Yet, this may also impact brand visibility and customer experience, which are crucial for long-term growth.
Additionally, the significant impairment expense reflects adjustments to the value of assets, potentially due to underperforming stores, which might be a red flag for investors regarding past expansion strategies. The reduced marketing spend could be a double-edged sword; while it may contribute to cost savings, it could also affect brand reach and customer acquisition efforts.
From a financial analysis standpoint, the substantial net losses reported for both the fourth quarter and the full year, with a net loss margin increase from 34.0% to 60.0%, are concerning for profitability outlooks. The adjusted EBITDA margin deterioration further emphasizes operational challenges. Despite this, the improvement in operating cash use and the strong cash position at year-end could be seen as positive signs of management's focus on capital efficiency and financial stability.
The guidance for 2024, with anticipated revenue decline due to strategic shifts, may be viewed as a conservative approach to setting investor expectations. The projected gross margin recovery suggests some optimism in cost management and potential pricing strategy adjustments. However, the continued expected EBITDA losses highlight that the path to profitability remains a challenge and will be a critical area for investors to monitor.
Within the retail sector, Allbirds' strategic decision to close 10-15 U.S. retail store locations and transition to a distributor model in certain international markets is reflective of broader industry trends towards digital transformation and cost optimization. This approach could lead to a leaner operating model but may also risk diluting the direct-to-consumer relationship that is key for building brand loyalty. The focus on compelling products and storytelling, as mentioned by the outgoing CEO, is essential in a market where consumers are increasingly driven by brand values and narratives.
The shift from a direct selling model to a distributor model internationally is a significant strategic move. While it may reduce operational complexity and capital requirements, it also requires careful management to ensure brand consistency and market penetration. The success of this strategy will largely depend on the choice of distributors and the terms of these partnerships.
Allbirds COO Joe Vernachio Appointed CEO as Company Accelerates Strategic Transformation Plan
Company Provides 2024 Outlook
SAN FRANCISCO, March 12, 2024 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with naturally derived materials to make better footwear and apparel products in a better way, today reported financial results for the fourth quarter ended December 31, 2023.
Separately, the Company also announced today that COO Joe Vernachio has been appointed as CEO, effective March 15, 2024. He will oversee all operations and continue advancing Allbirds’ strategic transformation plan. Co-Founder & CEO Joey Zwillinger will remain on the Board of Directors and serve as a special advisor to Allbirds.
Fourth Quarter and Full Year 2023 Overview
- Fourth quarter net revenue decreased
14.5% to$72.0 million versus a year ago; full year net revenue decreased14.7% to$254.1 million versus a year ago. - Fourth quarter net loss of
$56.8 million , or$0.37 per basic and diluted share; full year net loss of$152.5 million , or$1.01 per basic and diluted share. - Fourth quarter Adjusted EBITDA1 loss of
$19.5 million ; full year adjusted EBITDA1 loss of$78.4 million . - Inventory at year end of
$57.8 million , representing a decrease of51% versus a year ago. - Significantly reduced fourth quarter and full year operating cash use; fourth quarter operating cash use of
$4.7 million compared to$8.4 million a year ago and full year operating cash use of$30.2 million compared to$90.6 million in 2022. - At December 31, 2023, the Company had
$180.0 million of liquidity, including$130.0 million of cash and cash equivalents and$50.0 million of availability under its revolving credit facility. - Finalized agreement with Australasia distributor in Q4 and subsequently finalized agreement with Japan distributor.
“The Company made meaningful progress in 2023 both operationally and financially, ending the year in a much stronger position,” said Joey Zwillinger, Chief Executive Officer. “With the transformative actions we completed over the past year, coupled with world-class leadership, I am confident in the team, and in particular, Joe Vernachio’s stewardship of the brand for this next chapter for Allbirds. We entered 2024 with a strong cash position, healthy inventory composition and volume, and a strengthened foundation. Looking ahead, Joe’s focus on growth and rebuilding consumer momentum through compelling products and storytelling is what the company needs now, and sets Allbirds up to achieve durable, profitable growth and create value for our shareholders.”
Fourth Quarter Operating Results
In the fourth quarter of 2023, net revenue decreased
Gross profit totaled
Selling, general, and administrative expense (SG&A) was
Marketing expense totaled
Impairment expense totaled
Restructuring expense totaled
In the fourth quarter of 2023, net loss was
In the fourth quarter of 2023, Adjusted EBITDA1 was a loss of
Full Year Operating Results
Full-year 2023 net revenue decreased
Gross profit in 2023 totaled
SG&A in 2023 was
Marketing expense in 2023 totaled
Impairment expense totaled
Restructuring expense in 2023 totaled
Net loss in 2023 was
Adjusted EBITDA loss1 in 2023 was
_______________
1 For a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, please refer to the reconciliation tables in the section titled “Non-GAAP Financial Measures below.
Strategic Transformation Plan
In 2023, Allbirds delivered strong execution under its strategic transformation plan designed to reignite growth in the coming years, as well as improve capital efficiency, and drive improved profitability. The Company’s newly appointed CEO Joe Vernachio will be leading the remaining work under the transformation plan, which focuses on four key areas:
- Reignite product and brand: Executing a highly focused brand strategy to drive resonance with the consumer through fresh, innovative products, as well as more impactful storytelling and marketing.
- Optimize United States (U.S.) distribution and retail store profitability: Driving traffic and conversion to our U.S. fleet, selectively closing Allbirds stores and expanding our third-party wholesale channel. In 2024, the Company expects to close 10-15 U.S. retail store locations.
- Evaluate transition of international go-to-market strategy: Transitioning to a distributor model in certain international markets to grow those regions in a cost- and capital-efficient manner. In the third quarter of 2023, Allbirds transitioned two regions, Canada and South Korea, and we have subsequently finalized agreements for an additional two regions, Australasia and Japan.
- Improve cost savings and capital efficiency: Tracking to the cost of goods savings and SG&A savings we outlined for 2025, and optimizing cash.
Balance Sheet Highlights
Allbirds ended the year with
2024 Financial Guidance Targets
Allbirds is providing the following financial guidance targets for 2024. The Company’s outlook for the full year reflects approximately
Full Year 2024 Outlook
- Net revenue of
$190 million to$210 million - U.S. net revenue of
$150 million to$165 million , including a$7 million to$9 million impact resulting from anticipated store closures - International net revenue of
$40 million to$45 million , including$25 million to$28 million of impact resulting from anticipated transitions to a distributor model in certain international markets
- U.S. net revenue of
- Gross margin of
42% to45% - Adjusted EBITDA loss of
$78 million to$63 million
First Quarter 2024 Outlook
- Net revenue of
$37 million to$42 million - U.S. net revenue of
$28 million to$31 million - International net revenue of
$9 million to$11 million
- U.S. net revenue of
- Adjusted EBITDA2 loss of
$27 million to$23 million .
The Company will provide additional commentary on 2023 business trends during its earnings call.
_______________
2 A reconciliation of these non-GAAP financial measures to corresponding GAAP financial measures is not available on a forward-looking basis without unreasonable effort as we are currently unable to predict with a reasonable degree of certainty certain expense items that are excluded in calculating adjusted EBITDA, although it is important to note that these factors could be material to our results computed in accordance with GAAP. We have provided a reconciliation of GAAP to non-GAAP financial measures in the section titled “Reconciliation of GAAP to Non-GAAP Financial Measures” for our fourth quarter 2023 and 2022 results included in this press release.
Conference Call Information
Allbirds will host a conference call to discuss the results, followed by Q&A, at 5:00 p.m. Eastern Time today, March 12, 2024. A live webcast and replay of the conference call will be available on the investor relations section of the Allbirds website at https://www.ir.allbirds.com. Information on the Company’s website is not, and will not be deemed to be, a part of this press release or incorporated into any other filings the Company may make with the Securities and Exchange Commission. A replay of the webcast will also be archived on the Allbirds website for 12 months.
About Allbirds, Inc.
Dreamed up in New Zealand, Allbirds launched in San Francisco in 2016 with the ethos of using natural materials to create the world’s most comfortable shoes. With carbon reduction as its north star, Allbirds is paving the way for a more sustainable approach to business through product innovation, industry collaboration (like open sourcing its carbon footprint calculator) and being the first footwear brand to carbon label all of its products. www.allbirds.com.
Forward-Looking Statements
This press release and related conference call contain “forward-looking” statements, as the term is defined under federal securities laws, that are based on management’s beliefs and assumptions and on information currently available to management. All statements other than statements of historical facts, including statements regarding our strategic transformation plan and related efforts, future financial performance, including our financial outlook on financial results and guidance targets, planned transition to a distributor model in certain international markets, anticipated distributor model arrangements, focus on improving efficiencies and driving profitability, restructuring charges, estimated and/or targeted cost savings, medium-term financial targets, market position, future results of operations, financial condition, business strategy and plans, reducing the carbon footprint of our products, materials innovation and new product launches, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “designed,” “objective,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties which could cause actual results or facts to differ materially from those statements expressed or implied in the forward-looking statements, including, but not limited to: unfavorable economic conditions; our ability to execute our strategic transformation plans, simplification initiatives or our long-term growth strategy; fluctuations in our operating results; our ability to achieve the financial outlook and guidance targets for the first quarter of 2024; our ability to complete transitions to a distributor model in certain international markets; our ability to achieve our cost savings targets by 2025; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; impairment of long-lived assets; the strength of our brand; our net losses since inception; the competitive marketplace; our reliance on technical and materials innovation; our use of sustainable high-quality materials and environmentally friendly manufacturing processes and supply chain practices; our ability to attract new customers and increase sales to existing customers; the impact of climate change and government and investor focus on sustainability issues; our ability to anticipate product trends and consumer preferences, including with respect to the product launches we have planned for the first half of 2024; breaches of security or privacy of business information; and our ability to forecast consumer demand. Moreover, we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results or performance to differ materially from those contained in any forward-looking statements we may make.
Further a further discussion of these and other factors that could cause our financial results, performance, and achievements to differ materially from any results, performance, or achievements anticipated, expressed, or implied by these forward-looking statements is included in the filings we make with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, and future reports we may file with the SEC from time to time. The forward-looking statements contained in this press release and related conference call relate only to events as of the date stated or, if no date is stated, as of the date of this press release and related conference call. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in or expressed by, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Use of Non-GAAP Financial Measures
This press release and accompanying financial tables include references to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. We believe that providing these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance, and the adjustments we make to these non-GAAP financial measures may provide investors further insight into our profitability and additional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. These non-GAAP financial measures should not be considered as alternatives to net loss or net loss margin as calculated and presented in accordance with GAAP.
Adjusted EBITDA is defined as net loss before stock-based compensation expense, including common stock warrant expense, depreciation and amortization expense, impairment expense, restructuring expense (consisting of professional fees, severance payments, and other related charges from our August 2022 and March 2023 initiatives), non-cash gains or losses on the sales of businesses relating to our March 2023 initiatives, other income or expense (consisting of non-cash changes in the fair value of our equity investments, non-cash gains or losses on foreign currency, and non-cash gains or losses on sales of property and equipment), interest income or expense, and income tax provision or benefit.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue.
Other companies, including companies in our industry, may calculate these adjusted financial measures differently, which reduces their usefulness as comparative measures. Because of these limitations, we consider, and investors should consider, these adjusted financial measures together with other operating and financial performance measures presented in accordance with GAAP.
Investor Relations:
ir@allbirds.com
Media Contact:
press@allbirds.com
| Allbirds, Inc. Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share, per share amounts, and percentages) (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net revenue | $ | 71,990 | $ | 84,178 | $ | 254,065 | $ | 297,766 | |||||||
| Cost of revenue | 44,615 | 47,874 | 149,833 | 168,138 | |||||||||||
| Gross profit | 27,375 | 36,304 | 104,232 | 129,628 | |||||||||||
| Operating expense: | |||||||||||||||
| Selling, general, and administrative expense | 41,528 | 41,631 | 174,044 | 166,736 | |||||||||||
| Marketing expense | 14,850 | 16,815 | 49,042 | 59,109 | |||||||||||
| Impairment expense | 27,392 | 3,286 | 27,392 | 3,286 | |||||||||||
| Restructuring expense | 1,243 | 35 | 6,757 | 782 | |||||||||||
| Total operating expense | 85,013 | 61,767 | 257,235 | 229,913 | |||||||||||
| Loss from operations | (57,638 | ) | (25,463 | ) | (153,003 | ) | (100,285 | ) | |||||||
| Loss from sales of businesses | (415 | ) | – | (2,761 | ) | – | |||||||||
| Interest income | 1,115 | 126 | 4,076 | 19 | |||||||||||
| Other (expense) income | (138 | ) | (254 | ) | (436 | ) | 139 | ||||||||
| Loss before provision for income taxes | (57,076 | ) | (25,591 | ) | (152,124 | ) | (100,127 | ) | |||||||
| Income tax benefit (provision) | 297 | 725 | (334 | ) | (1,227 | ) | |||||||||
| Net loss | $ | (56,779 | ) | $ | (24,866 | ) | $ | (152,458 | ) | $ | (101,354 | ) | |||
| Net loss per share data: | |||||||||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.37 | ) | $ | (0.17 | ) | $ | (1.01 | ) | $ | (0.68 | ) | |||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 153,674,506 | 149,573,335 | 151,672,437 | 148,754,428 | |||||||||||
| Other comprehensive loss: | |||||||||||||||
| Foreign currency translation gain (loss) | 1,714 | 3,486 | 276 | (4,277 | ) | ||||||||||
| Total comprehensive loss | $ | (55,065 | ) | $ | (21,380 | ) | $ | (152,182 | ) | $ | (105,631 | ) | |||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Statements of Operations Data, as a Percentage of Net Revenue: | |||||||||||||||
| Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
| Cost of revenue | 62.0 | % | 56.9 | % | 59.0 | % | 56.5 | % | |||||||
| Gross profit | 38.0 | % | 43.1 | % | 41.0 | % | 43.5 | % | |||||||
| Operating expense: | |||||||||||||||
| Selling, general, and administrative expense | 57.7 | % | 49.5 | % | 68.5 | % | 56.0 | % | |||||||
| Marketing expense | 20.6 | % | 20.0 | % | 19.3 | % | 19.9 | % | |||||||
| Impairment expense | 38.1 | % | 3.9 | % | 10.8 | % | 1.1 | % | |||||||
| Restructuring expense | 1.7 | % | – | % | 2.7 | % | 0.3 | % | |||||||
| Total operating expense | 118.1 | % | 73.4 | % | 101.2 | % | 77.2 | % | |||||||
| Loss from operations | (80.1 | )% | (30.2 | )% | (60.2 | )% | (33.7 | )% | |||||||
| Loss from sales of businesses | (0.6 | )% | – | % | (1.1 | )% | – | % | |||||||
| Interest income | 1.5 | % | 0.1 | % | 1.6 | % | 0.0 | % | |||||||
| Other (expense) income | (0.2 | )% | (0.3 | )% | (0.2 | )% | 0.0 | % | |||||||
| Loss before provision for income taxes | (79.3 | )% | (30.4 | )% | (59.9 | )% | (33.6 | )% | |||||||
| Income tax benefit (provision) | 0.4 | % | 0.9 | % | (0.1 | )% | (0.4 | )% | |||||||
| Net loss | (78.9 | )% | (29.5 | )% | (60.0 | )% | (34.0 | )% | |||||||
| Other comprehensive loss: | |||||||||||||||
| Foreign currency translation gain (loss) | 2.4 | % | 4.1 | % | 0.1 | % | (1.4 | )% | |||||||
| Total comprehensive loss | (76.5 | )% | (25.4 | )% | (59.9 | )% | (35.5 | )% | |||||||
| Allbirds, Inc. Consolidated Balance Sheets (in thousands, except share amounts) (unaudited) | |||||||
| December 31, | December 31, | ||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 130,032 | $ | 167,136 | |||
| Accounts receivable | 8,188 | 9,206 | |||||
| Inventory | 57,763 | 116,796 | |||||
| Prepaid expenses and other current assets | 16,423 | 15,796 | |||||
| Total current assets | 212,406 | 308,934 | |||||
| Property and equipment–net | 26,085 | 54,340 | |||||
| Operating lease right-of-use assets | 67,085 | 91,232 | |||||
| Other assets | 7,129 | 7,858 | |||||
| Total assets | $ | 312,705 | $ | 462,364 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | 5,851 | 12,245 | |||||
| Accrued expenses and other current liabilities | 22,987 | 23,448 | |||||
| Current lease liabilities | 15,218 | 10,263 | |||||
| Deferred revenue | 4,551 | 4,057 | |||||
| Total current liabilities | 48,607 | 50,012 | |||||
| Noncurrent liabilities: | |||||||
| Noncurrent lease liabilities | 78,731 | 95,583 | |||||
| Other long-term liabilities | 38 | – | |||||
| Total noncurrent liabilities | 78,769 | 95,583 | |||||
| Total liabilities | $ | 127,376 | $ | 145,595 | |||
| Commitments and contingencies (Note 12) | |||||||
| Stockholders' equity: | |||||||
| Class A Common stock, | 10 | 10 | |||||
| Class B Common stock, | 5 | 5 | |||||
| Additional paid-in capital | 579,848 | 559,106 | |||||
| Accumulated other comprehensive loss | (3,335 | ) | (3,611 | ) | |||
| Accumulated deficit | (391,199 | ) | (238,741 | ) | |||
| Total stockholders' equity | 185,329 | 316,769 | |||||
| Total liabilities and stockholders' equity | $ | 312,705 | $ | 462,364 | |||
| Allbirds, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Year Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (152,458 | ) | $ | (101,354 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 21,005 | 14,679 | |||||
| Amortization of debt issuance costs | 49 | 49 | |||||
| Stock-based compensation | 19,346 | 19,873 | |||||
| Inventory write-down | 8,253 | 14,437 | |||||
| Deferred taxes | (474 | ) | (898 | ) | |||
| Impairment expense | 27,374 | 3,279 | |||||
| Realized loss on equity investment | 84 | – | |||||
| Loss from sales of businesses | 2,772 | – | |||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | 1,000 | 1,605 | |||||
| Inventory | 47,529 | (24,742 | ) | ||||
| Prepaid expenses and other current assets | (1,158 | ) | 18,100 | ||||
| Operating lease right-of-use assets and current and noncurrent lease liabilities | 2,555 | 12,265 | |||||
| Accounts payable and accrued expenses | (6,706 | ) | (37,593 | ) | |||
| Other long-term liabilities | 38 | (10,157 | ) | ||||
| Deferred revenue | 569 | (126 | ) | ||||
| Net cash used in operating activities | (30,222 | ) | (90,583 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment | (10,870 | ) | (31,363 | ) | |||
| Proceeds from sale of equity investment | 166 | – | |||||
| Proceeds from sales of businesses | 2,182 | – | |||||
| Changes in security deposits | 810 | (929 | ) | ||||
| Net cash used in investing activities | (7,712 | ) | (32,292 | ) | |||
| Cash flows from financing activities: | |||||||
| Payments of deferred offering costs | – | (744 | ) | ||||
| Repayment of non-recourse promissory note | – | 539 | |||||
| Proceeds from issuance of common stock under the employee stock purchase plan | 327 | 1,201 | |||||
| Proceeds from the exercise of stock options | 894 | 2,751 | |||||
| Taxes withheld and paid on employee stock awards | (581 | ) | (166 | ) | |||
| Net cash provided by financing activities | 640 | 3,581 | |||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 200 | (1,515 | ) | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (37,094 | ) | (120,809 | ) | |||
| Cash, cash equivalents, and restricted cash–beginning of period | 167,767 | 288,576 | |||||
| Cash, cash equivalents, and restricted cash–end of period | $ | 130,673 | $ | 167,767 | |||
| Supplemental disclosures of cash flow information: | |||||||
| Cash paid for interest | $ | 111 | $ | 88 | |||
| Cash paid for taxes | $ | 1,785 | $ | 1,424 | |||
| Noncash investing and financing activities: | |||||||
| Purchase of property and equipment included in accounts payable | $ | – | $ | 601 | |||
| Non-cash exercise of common stock warrants | $ | – | $ | 35 | |||
| Stock-based compensation included in capitalized internal-use software | $ | 866 | $ | 1,199 | |||
| Reconciliation of cash, cash equivalents, and restricted cash: | |||||||
| Cash and cash equivalents | $ | 130,032 | $ | 167,136 | |||
| Restricted cash included in prepaid expenses and other current assets | 641 | 632 | |||||
| Total cash, cash equivalents, and restricted cash | $ | 130,673 | $ | 167,767 | |||
| Allbirds, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except share, per share amounts, and percentages) (unaudited) |
The following tables present a reconciliation of adjusted EBITDA to its most comparable GAAP measure, net loss, and presentation of net loss margin and adjusted EBITDA margin for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net loss | $ | (56,779 | ) | $ | (24,866 | ) | $ | (152,458 | ) | $ | (45,370 | ) | |||
| Add (deduct): | |||||||||||||||
| Stock-based compensation expense, including common stock warrant expense | 3,684 | 5,088 | 19,346 | 20,026 | |||||||||||
| Depreciation and amortization expense | 5,789 | 4,511 | 21,058 | 15,754 | |||||||||||
| Impairment expense | 27,392 | 3,286 | 27,392 | 3,286 | |||||||||||
| Restructuring expense | 1,243 | 35 | 6,757 | 782 | |||||||||||
| Loss from sales of businesses | 415 | – | 2,761 | – | |||||||||||
| Other expense (income) | 138 | 254 | (4,076 | ) | (19 | ) | |||||||||
| Interest (income) expense | (1,115 | ) | (126 | ) | 436 | (139 | ) | ||||||||
| Income tax provision (benefit) | (297 | ) | (725 | ) | 334 | 1,227 | |||||||||
| Adjusted EBITDA | $ | (19,530 | ) | $ | (12,323 | ) | $ | (78,450 | ) | $ | (60,437 | ) | |||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net revenue | $ | 71,990 | $ | 84,178 | $ | 254,065 | $ | 297,766 | |||||||
| Net loss | $ | (56,779 | ) | $ | (24,866 | ) | $ | (152,458 | ) | $ | (101,354 | ) | |||
| Net loss margin | (78.9 | )% | (29.5 | )% | (60.0 | )% | (34.0 | )% | |||||||
| Adjusted EBITDA | $ | (19,530 | ) | $ | (12,543 | ) | $ | (78,450 | ) | $ | (60,437 | ) | |||
| Adjusted EBITDA margin | (27.1 | )% | (14.9 | )% | (30.9 | )% | (20.3 | )% | |||||||
| Allbirds, Inc. Net Revenue and Store Count by Primary Geographical Market (in thousands, except for store count) (unaudited) | |||||||||||||||
| Net Revenue by Primary Geographical Market | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| United States | $ | 55,800 | $ | 65,586 | $ | 191,054 | $ | 229,814 | |||||||
| International | 16,190 | 18,592 | 63,011 | 67,952 | |||||||||||
| Total net revenue | $ | 71,990 | $ | 84,178 | $ | 254,065 | $ | 297,766 | |||||||
| Store Count by Primary Geographical Market | |||||||||||||||||
| December 31, 2021 | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||||||
| United States | 23 | 27 | 32 | 38 | 42 | 42 | 44 | 45 | 45 | ||||||||
| International [1] | 12 | 12 | 14 | 13 | 16 | 17 | 18 | 15 | 15 | ||||||||
| Total stores | 35 | 39 | 46 | 51 | 58 | 59 | 62 | 60 | 60 | ||||||||
[1] In the third quarter of 2022, we opened two new international stores and had three store leases expire, resulting in a net reduction of one lease. In the third quarter of 2023, we transitioned the operations of two stores in Canada and one store in South Korea to unrelated third-party distributors, resulting in a reduction of three international stores.
FAQ
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