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Allbirds Reports Second Quarter 2024 Financial Results

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Allbirds (NASDAQ: BIRD) reported Q2 2024 financial results, showing a 26.8% decrease in net revenue to $51.6 million, within guidance. Gross margin improved 770 basis points to 50.5%. The company posted a net loss of $19.1 million, or $0.12 per share. Adjusted EBITDA loss was $13.7 million, above guidance. Inventory decreased 42% year-over-year to $53.7 million. Allbirds entered new distributor agreements for Benelux and Scandinavia, completed transitions in Japan and Australasia, and announced agreements for China. The company is focusing on product innovation, storytelling, and customer experience to drive growth in 2025. For full-year 2024, Allbirds reiterated revenue guidance of $190-$210 million and increased gross margin guidance to 43-46%.

Allbirds (NASDAQ: BIRD) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando una riduzione del 26,8% dei ricavi netti a 51,6 milioni di dollari, rimanendo entro le previsioni. Il margine lordo è migliorato di 770 punti base raggiungendo il 50,5%. L'azienda ha registrato una perdita netta di 19,1 milioni di dollari, pari a 0,12 dollari per azione. La perdita dell'EBITDA rettificato è stata di 13,7 milioni di dollari, superiore alle attese. L'inventario è diminuito del 42% rispetto all'anno precedente, portandosi a 53,7 milioni di dollari. Allbirds ha firmato nuovi accordi di distribuzione per Benelux e Scandinavia, ha completato le transizioni in Giappone e Australasia e ha annunciato accordi per la Cina. L'azienda si sta concentrando sull'innovazione dei prodotti, sulla narrazione e sull'esperienza del cliente per guidare la crescita nel 2025. Per l'intero anno 2024, Allbirds ha confermato le previsioni di fatturato tra 190 e 210 milioni di dollari e ha aumentato le previsioni per il margine lordo al 43-46%.

Allbirds (NASDAQ: BIRD) reportó los resultados financieros del segundo trimestre de 2024, mostrando una disminución del 26,8% en los ingresos netos, totalizando 51,6 millones de dólares, dentro de la guía. El margen bruto mejoró 770 puntos básicos alcanzando el 50,5%. La compañía presentó una pérdida neta de 19,1 millones de dólares, o 0,12 dólares por acción. La pérdida ajustada de EBITDA fue de 13,7 millones de dólares, superando la guía. El inventario disminuyó un 42% interanual a 53,7 millones de dólares. Allbirds firmó nuevos acuerdos de distribución para Benelux y Escandinavia, completó las transiciones en Japón y Australasia, y anunció acuerdos para China. La compañía se enfoca en la innovación de productos, la narración de historias y la experiencia del cliente para impulsar el crecimiento en 2025. Para el año completo 2024, Allbirds reiteró la guía de ingresos de 190 a 210 millones de dólares y aumentó la guía del margen bruto al 43-46%.

올버즈(Allbirds, NASDAQ: BIRD)는 2024년 2분기 재무 결과를 발표했으며, 순수익이 26.8% 감소하여 5,160만 달러에 달했습니다. 이는 가이던스 범위 내에 있습니다. 총 마진은 770베이스 포인트 개선되어 50.5%를 기록했습니다. 회사는 1,910만 달러의 순손실, 즉 주당 0.12달러을 기록했습니다. 조정된 EBITDA 손실은 1,370만 달러로, 가이던스를 초과했습니다. 재고는 전년 대비 42% 감소하여 5,370만 달러에 달했습니다. 올버즈는 베네룩스 및 스칸디나비아에 대한 새로운 유통 계약을 체결하고, 일본과 오세아니아에서의 전환을 완료했으며, 중국에 대한 계약을 발표했습니다. 회사는 제품 혁신, 스토리텔링 및 고객 경험에 집중하여 2025년 성장을 추진할 계획입니다. 2024년 전체 연도에 대해 올버즈는 1억 9천만에서 2억 1천만 달러의 수익 가이던스를 재확인하고, 총 마진 가이던스를 43-46%로 상향 조정했습니다.

Allbirds (NASDAQ: BIRD) a annoncé ses résultats financiers pour le deuxième trimestre 2024, montrant une baisse de 26,8% des revenus nets à 51,6 millions de dollars, conformément aux prévisions. La marge brute a augmenté de 770 points de base pour atteindre 50,5%. L'entreprise a enregistré une perte nette de 19,1 millions de dollars, soit 0,12 dollar par action. La perte d'EBITDA ajustée s'est élevée à 13,7 millions de dollars, au-dessus des prévisions. Les stocks ont diminué de 42% par rapport à l'année précédente, s'élevant à 53,7 millions de dollars. Allbirds a signé de nouveaux contrats de distribution pour le Benelux et la Scandinavie, a finalisé des transitions au Japon et en Australasie, et a annoncé des accords pour la Chine. L'entreprise se concentre sur l'innovation produit, le storytelling et l'expérience client pour stimuler la croissance en 2025. Pour l'année complète 2024, Allbirds a réitéré ses prévisions de revenus de 190 à 210 millions de dollars et a augmenté ses prévisions de marge brute à 43-46%.

Allbirds (NASDAQ: BIRD) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, die einen Rückgang der Nettoumsätze um 26,8% auf 51,6 Millionen Dollar zeigen, innerhalb der Prognosen. Die Bruttomarge verbesserte sich um 770 Basispunkte auf 50,5%. Das Unternehmen verzeichnete einen Nettverlust von 19,1 Millionen Dollar, oder 0,12 Dollar pro Aktie. Der bereinigte EBITDA-Verlust betrug 13,7 Millionen Dollar und lag über der Prognose. Der Lagerbestand ging im Jahresvergleich um 42% auf 53,7 Millionen Dollar zurück. Allbirds hat neue Distributorenverträge für Benelux und Skandinavien abgeschlossen, Übertragungen in Japan und Australien durchgeführt und Vereinbarungen für China bekannt gegeben. Das Unternehmen fokussiert sich auf Produktinnovation, Storytelling und Kundenerfahrung, um das Wachstum im Jahr 2025 voranzutreiben. Für das gesamte Jahr 2024 hat Allbirds die Umsatzprognose von 190 bis 210 Millionen Dollar bestätigt und die Prognose für die Bruttomarge auf 43-46% angehoben.

Positive
  • Gross margin improved 770 basis points to 50.5% in Q2 2024
  • Inventory decreased 42% year-over-year to $53.7 million
  • Entered new distributor agreements for Benelux and Scandinavia
  • Completed transitions to distributor model in Japan and Australasia
  • Increased full-year 2024 gross margin guidance to 43-46%
Negative
  • Net revenue decreased 26.8% to $51.6 million in Q2 2024
  • Net loss of $19.1 million, or $0.12 per share in Q2 2024
  • Adjusted EBITDA loss of $13.7 million in Q2 2024
  • Closed 14 US stores as part of optimization initiative
  • Expects full-year 2024 Adjusted EBITDA loss of $75 million to $63 million

Insights

Allbirds' Q2 2024 results paint a mixed picture. While revenue declined 26.8% to $51.6 million, it fell within guidance. The gross margin improvement of 770 basis points to 50.5% is noteworthy, signaling better cost management. However, the net loss of $19.1 million remains concerning.

The company's strategic transformation is showing progress, with inventory down 42% year-over-year and improved cash management. The shift to a distributor model internationally could lead to more scalable growth. However, the projected revenue decline for 2024 indicates ongoing challenges.

Investors should monitor Allbirds' ability to reignite product innovation and brand appeal, as these are important for returning to growth in 2025. The improved gross margin guidance for 2024 is positive, but sustained profitability remains elusive.

Allbirds' performance reflects broader challenges in the DTC footwear market. The 26.8% revenue decline suggests significant headwinds in consumer demand and brand appeal. However, the company's focus on operational efficiency is evident in the improved gross margins and reduced inventory levels.

The transition to a distributor model in international markets is a strategic move that could reduce operational complexity and costs. Yet, it may also limit direct consumer engagement and brand control. The closure of 14 US stores indicates a necessary right-sizing of physical retail presence.

Allbirds' emphasis on product innovation and storytelling aligns with industry trends, but execution will be critical. The projected return to growth in 2025 seems optimistic given current trajectory and much depends on the success of upcoming product launches and marketing initiatives.

Allbirds' commitment to sustainable materials and innovation remains a core strength, potentially differentiating it in a crowded market. However, the financial results suggest that sustainability alone isn't driving sufficient consumer demand.

The company's focus on "Making Great Product" and "Telling Compelling Stories" could help better communicate its sustainability value proposition. This is important as consumers increasingly seek eco-friendly options but also demand style and performance.

The shift to a distributor model internationally may pose challenges in maintaining sustainability standards across the supply chain. Allbirds will need to ensure its partners uphold its environmental commitments. As the company aims for profitability, balancing cost-cutting with sustainable practices will be key to maintaining its brand identity and appeal to eco-conscious consumers.

Q2 2024 Results Within or Above Guidance Ranges

Continued Operational and Financial Progress

SAN FRANCISCO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with sustainable materials to make better products in a better way, today reported financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Overview

  • Second quarter net revenue decreased 26.8% to $51.6 million versus a year ago, within the Company’s guidance range.
  • Second quarter gross margin improved 770 basis points to 50.5% versus a year ago.
  • Second quarter net loss of $19.1 million, or $0.12 per basic and diluted share.
  • Second quarter adjusted EBITDA1 loss of $13.7 million, above the Company’s guidance range.
  • Inventory at quarter end of $53.7 million, representing a decrease of 42% versus a year ago.
  • As of June 30, 2024, the Company had $87.2 million of cash and cash equivalents and no outstanding borrowings under its $50.0 million revolving credit facility.
  • Entered into distributor agreements for two new regions, Benelux and Scandinavia.
  • Completed transitions to a distributor model in Japan and Australasia.
  • Subsequent to quarter end, the Company announced distribution and licensing agreements and transitioned an additional region, China.

“We are pleased to report another quarter of operational and financial progress,” said Joe Vernachio, Chief Executive Officer. “After 18 months of strong execution against our strategic transformation plan, we are entering the next phase of our journey and prioritizing three main focus areas: Making Great Product, Telling Compelling Stories, and Providing Customers with an Engaging Shopping Experience.”

Vernachio added, “As we focus on reigniting our product and brand, we are encouraged by the strong consumer response to our recent new offerings. This makes us confident that our fresh, updated products coming to market beginning next year will build on that momentum. We believe the combination of elevated product, storytelling and customer experience in the coming quarters will position the business to return to top line growth in 2025 and enable us to build long-term shareholder value.”

Second Quarter Operating Results

In the second quarter of 2024, net revenue decreased 26.8% to $51.6 million compared to $70.5 million in the second quarter of 2023. The year-over-year decrease is primarily attributable to lower unit sales, partially offset by higher average selling prices, within our direct business as well as our international distributor transitions and planned retail store closures.

Gross profit totaled $26.1 million compared to $30.1 million in the second quarter of 2023, and gross margin improved 770 basis points to 50.5% compared to 42.8% in the second quarter of 2023. The decline in gross profit is primarily due to the decrease in units sold, and the improvement in gross margin is primarily due to lower freight and duty costs per unit, and a decrease in inventory write-downs resulting from a healthier inventory composition versus a year ago.

Selling, general, and administrative expense (SG&A) was $33.6 million, or 65.0% of net revenue, compared to $46.2 million, or 65.6% of net revenue in the second quarter of 2023. The decrease is primarily attributable to decreases in personnel expenses, occupancy costs, and stock-based compensation.

Marketing expense totaled $11.7 million, or 22.8% of net revenue, compared to $12.5 million, or 17.8% of net revenue in the second quarter of 2023, driven by decreased digital advertising spend.

Restructuring expense totaled $1.0 million, or 1.8% of net revenue, compared to $1.0 million, or 1.5% of net revenue in the second quarter of 2023, and was relatively flat compared to prior year and related to the execution of our strategic transformation plan announced in March 2023.

In the second quarter of 2024, net loss was $19.1 million compared to $28.9 million in the second quarter of 2023, and net loss margin was 37.1% compared to 41.1% in the second quarter of 2023.

In the second quarter of 2024, adjusted EBITDA1 was a loss of $13.7 million, a 24.9% improvement compared to a loss of $18.3 million in the second quarter of 2023, and adjusted EBITDA margin1 declined to (26.6)% compared to (25.9)% in the second quarter of 2023.

Six Month Operating Results

Net revenue in the first half of 2024 decreased 27.2% to $90.9 million compared to $124.8 million in the first half of 2023. The year-over-year decrease is primarily attributable to lower unit sales within our direct business as well as our international distributor transitions and planned retail store closures.

Gross profit in the first half of 2024 totaled $44.5 million compared to $52.0 million in the first half of 2023, while gross margin improved to 49.0% in the first half of 2024 versus 41.6% in the same period a year ago. The decrease in gross profit is primarily due to the decrease in units sold, and the improvement in gross margin is primarily due to lower freight and duty costs per unit, and a decrease in inventory write-downs resulting from a healthier inventory composition versus a year ago.

SG&A in the first half of 2024 was $73.3 million, or 80.6% of net revenue, compared to $89.0 million, or 71.3% of net revenue in the first half of 2023, with the decrease primarily attributable to decreases in personnel expenses, stock-based compensation, and occupancy costs.

Marketing expense in the first half of 2024 totaled $19.5 million, or 21.4% of net revenue, compared to $24.0 million, or 19.2% of net revenue, in the first half of 2023, driven by decreased digital advertising spend.

Restructuring expense in the first half of 2024 totaled $1.8 million, or 1.9% of net revenue, compared to $4.3 million, or 3.4% of net revenue in the same period in 2023. The decline was primarily due to lower fees incurred related to the execution of our strategic transformation plan announced in March 2023.

Net loss in the first half of 2024 was $46.5 million compared to $64.1 million in the first half of 2023, and net loss margin was 51.1% compared to 51.4% in the first half of 2023.

Adjusted EBITDA loss1 in the first half of 2024 was $34.6 million compared to a loss of $39.9 million in the first half of 2023, and adjusted EBITDA margin(1) declined to (38.1)% compared to (32.0)% for the first half of 2023.

______________________________
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 Review

Since the announcement of its strategic transformation plan in March 2023, the Company has reset the business, positioning Allbirds for the next phase of its journey. High-level operating and financial accomplishments include:

  • Closed 14 US stores as part of the Company’s initiative to optimize US distribution and retail store profitability.
  • Completed our transition from a direct model to a distributor model for our international business. Since the third quarter of 2023, the Company has transitioned five existing regions and opened four new regions, positioning the business to achieve profitable and scalable growth internationally.
  • Began capturing cost of goods and operating expense savings, which is driving improvement in gross margin and SG&A in 2024 compared to 2023.
  • Decreased inventory by more than half in 2023 compared to 2022, driving improvement in working capital.
  • Narrowed operating cash use by $60 million, or 66% in full year 2023 versus 2022.

Allbirds is now prioritizing three main focus areas designed to return to top line growth in 2025 and build long-term shareholder value: Making Great Product, Telling Compelling Stories and Providing Customers with an Engaging Shopping Experience.

Balance Sheet Highlights

Allbirds ended the quarter with $87.2 million of cash and cash equivalents and no outstanding borrowings under its $50 million revolving credit facility. Inventories totaled $53.7 million, a decrease of 42% versus a year ago, reflecting fewer units of on hand inventory and a healthier overall composition.

2024 Financial Outlook

The Company is reiterating its full year 2024 revenue guidance as follows:

  • Net revenue of $190 million to $210 million
    • US net revenue of $150 million to $165 million, including a $10 million to $12 million impact resulting from anticipated store closures
    • International net revenue of $40 million to $45 million, including $15 million to $18 million of impact resulting from transitions to a distributor model in certain international markets

 

The Company is increasing its full year 2024 gross margin guidance and tightening its full year 2024 Adjusted EBITDA guidance range as follows:

  • Gross margin of 43% to 46% compared to prior guidance of 42% to 45%
  • Adjusted EBITDA2 loss of $75 million to $63 million compared to prior guidance for a loss of $78 million to $63 million

The Company is providing the following guidance for the third quarter of 2024:

  • Net revenue of $40 million to $43 million
    • US net revenue of $33 million to $35 million
    • International net revenue of $7 million to $8 million
  • Adjusted EBITDA2 loss of $19 million to $16 million

______________________________
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 second quarter 2024 and 2023 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, August 7, 2024. A live webcast and replay of the conference call will be available on the investor relations section of the Allbirds website at https://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.

Based in San Francisco, with its roots in New Zealand, Allbirds launched in 2016 with a single shoe: the now iconic Wool Runner. In the years since, Allbirds has sold millions of pairs of shoes, and has maintained its commitment to incredible comfort, versatile style and unmatched quality. This is made possible with materials like Allbirds’s sugarcane-based midsole technology, SweetFoam™, and textiles made with eucalyptus fibers and Merino wool – so consumers don't have to compromise between the best products and their impact on the earth. 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 third quarter and full year 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 introduction of new products; 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 second half of 2024 and mid-2025; 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.

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 March 31, 2024, 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, depreciation and amortization expense, impairment expense, restructuring expense (consisting of professional fees, personnel and related expenses, and other related charges resulting from our strategic 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 gains or losses on foreign currency, non-cash gains or losses on sales of property and equipment, and non-cash gains or losses on modifications or terminations of leases), 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.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share, per share amounts, and percentages)

 
 Three Months Ended June 30, Six Months Ended June 30,
  2024  2023  2024  2023
Net revenue$51,582  $70,480  $90,909  $124,832 
Cost of revenue 25,527   40,332   46,398   72,867 
Gross profit 26,055   30,148   44,511   51,965 
Operating expense:       
Selling, general, and administrative expense 33,552   46,207   73,258   88,971 
Marketing expense 11,739   12,524   19,499   24,016 
Restructuring expense 954   1,041   1,753   4,280 
Total operating expense 46,245   59,772   94,510   117,267 
Loss from operations (20,190)  (29,624)  (49,999)  (65,302)
Net loss from the sales of businesses (194)     (194)   
Interest income 1,228   1,034   2,248   1,842 
Other income (expense) 575   (71)  2,273   (145)
Loss before provision for income taxes (18,581)  (28,661)  (45,672)  (63,605)
Income tax provision (552)  (276)  (791)  (498)
Net loss$(19,133) $(28,937) $(46,463) $(64,103)
        
Net loss per share data:       
Net loss per share attributable to common stockholders, basic and diluted$(0.12) $(0.19) $(0.30) $(0.43)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 156,484,008   150,829,129   155,932,276   150,455,712 
        
Other comprehensive loss:       
Foreign currency translation loss (312)  (762)  (1,525)  (532)
Total comprehensive loss$(19,445) $(29,699) $(47,988) $(64,635)
        
 Three Months Ended June 30, Six Months Ended June 30,
  2024  2023  2024  2023
Statements of Operations Data, as a Percentage of Net Revenue:       
Net revenue 100.0%  100.0%  100.0%  100.0%
Cost of revenue 49.5%  57.2%  51.0%  58.4%
Gross profit 50.5%  42.8%  49.0%  41.6%
Operating expense:       
Selling, general, and administrative expense 65.0%  65.6%  80.6%  71.3%
Marketing expense 22.8%  17.8%  21.4%  19.2%
Restructuring expense 1.8%  1.5%  1.9%  3.4%
Total operating expense 89.7%  84.8%  104.0%  93.9%
Loss from operations (39.1)%  (42.0)%  (55.0)%  (52.3)%
Net loss from the sales of businesses (0.4)%  %  (0.2)%  %
Interest income 2.4%  1.5   2.5%  1.5%
Other income (expense) 1.1%  (0.1)%  2.5%  (0.1)%
Loss before provision for income taxes (36.0)%  (40.7)%  (50.2)%  (51.0)%
Income tax provision (1.1)%  (0.4)%  (0.9)%  (0.4)%
Net loss (37.1)%  (41.1)%  (51.1)%  (51.4)%
        
Other comprehensive loss:       
Foreign currency translation loss (0.6)%  (1.1)%  (1.7)%  (0.4)%
Total comprehensive loss (37.7)%  (42.1)%  (52.8)%  (51.8)%


        
Allbirds, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)

        
  June 30,
   December 31,
 
  2024
   2023
 
Assets
       
Current assets:       
Cash and cash equivalents$87,224  $130,032 
Accounts receivable 10,539   8,188 
Inventory 53,667   57,763 
Prepaid expenses and other current assets 13,726   16,423 
Total current assets 165,156   212,406 
    
Property and equipment—net 21,081   26,085 
Operating lease right-of-use assets 48,177   67,085 
Other assets 5,045   7,129 
Total assets$239,459  $312,705 
    
Liabilities and stockholders’ equity   
    
Current liabilities:   
Accounts payable 9,966   5,851 
Accrued expenses and other current liabilities 15,276   22,987 
Current lease liabilities 10,803   15,218 
Deferred revenue 4,246   4,551 
Total current liabilities 40,291   48,607 
    
Noncurrent liabilities:   
Noncurrent lease liabilities 55,161   78,731 
Other long-term liabilities 38   38 
Total noncurrent liabilities 55,199   78,769 
Total liabilities$95,490  $127,376 
    
Commitments and contingencies (Note 11)   
    
Stockholders’ equity:   
Class A Common Stock, $0.0001 par value; 2,000,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 106,818,082 and 102,579,222 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 10   10 
Class B Common Stock, $0.0001 par value; 200,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 50,847,305 and 52,547,761 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 5   5 
Additional paid-in capital 586,476   579,848 
Accumulated other comprehensive loss (4,860)  (3,335)
Accumulated deficit (437,662)  (391,199)
Total stockholders’ equity 143,969   185,329 
    
Total liabilities and stockholders’ equity$239,459  $312,705 


 
Allbirds, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

  
 Six Months Ended June 30,
  2024   2023 
Cash flows from operating activities:   
Net loss$(46,463) $(64,103)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation and amortization 7,334   10,033 
Amortization of debt issuance costs 8   25 
Stock-based compensation 6,273   10,972 
Inventory write-down 866   7,444 
Realized loss on equity investments    84 
Provision for bad debt 802    
Net loss from sales of businesses 194    
Deferred taxes 393    
Changes in assets and liabilities:   
Accounts receivable (3,208)  4,585 
Inventory 1,492   16,344 
Prepaid expenses and other current assets 2,976   195 
Operating lease right-of-use assets and current and noncurrent lease liabilities (8,897)  2,685 
Accounts payable and accrued expenses (3,438)  (8,023)
Deferred revenue (123)  (326)
Net cash used in operating activities (41,791)  (20,085)
    
Cash flows from investing activities:   
Purchase of property and equipment (2,427)  (7,607)
Changes in security deposits 1,173   444 
Proceeds from sale of equity investment    166 
Proceeds from sale of businesses 1,349    
Net cash provided by (used in) investing activities 95   (6,997)
    
Cash flows from financing activities:   
Proceeds from the exercise of stock options 34   229 
Taxes withheld and paid on employee stock awards (1)  (149)
Proceeds from issuance of common stock under employee stock purchase plan 150   233 
Net cash provided by financing activities 183   313 
    
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash (1,092)  (453)
Net decrease in cash, cash equivalents, and restricted cash (42,605)  (27,222)
Cash, cash equivalents, and restricted cash—beginning of period 130,673   167,767 
Cash, cash equivalents, and restricted cash—end of period$88,068  $140,545 
    
Supplemental disclosures of cash flow information:   
Cash paid for interest$73  $62 
Cash paid for taxes$1,169  $1,268 
Noncash investing and financing activities:   
Purchase of property and equipment included in accounts payable$2  $603 
Stock-based compensation included in capitalized internal-use software$173  $429 
Reconciliation of cash, cash equivalents, and restricted cash:   
Cash and cash equivalents$87,224  $139,909 
Restricted cash included in prepaid expenses and other current assets 845   636 
Total cash, cash equivalents, and restricted cash$88,068  $140,545 
 
 
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 June 30, Six Months Ended June 30,
  2024
  2023
  2024
  2023
Net loss$(19,133) $(28,937) $(46,463) $(64,103)
Add (deduct):               
Stock-based compensation expense 2,929   5,302   6,273   10,972 
Depreciation and amortization expense 2,574   4,996   7,354   10,107 
Restructuring expense 954   1,041   1,753   4,280 
Net loss from the sales of businesses 194      194    
Other (income) expense (575)  71   (2,273)  145 
Interest income (1,228)  (1,034)  (2,248)  (1,842)
Income tax provision 552   277   791   498 
Adjusted EBITDA$(13,733) $(18,284) $(34,619) $(39,943)
                
                
 Three Months Ended June 30, Six Months Ended June 30,
  2024
  2023
  2024
  2023
Net revenue$51,582  $70,480  $90,909  $124,832 
                
Net loss$(19,133) $(28,937) $(46,463) $(64,103)
Net loss margin (37.1)%  (41.1)%  (51.1)%  (51.4)%
                
Adjusted EBITDA$(13,733) $(18,284) $(34,619) $(39,943)
Adjusted EBITDA margin (26.6)%  (25.9)%  (38.1)%  (32.0)%


 
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 June 30, Six Months Ended June 30,
  2024   2023   2024   2023 
United States$36,627  $50,748  $65,859  $91,584 
International 14,955   19,732   25,050   33,248 
Total net revenue$51,582  $70,480  $90,909  $124,832 
        


 Store Count by Primary Geographical Market
  June 30, 2022  Sept. 30, 2022  Dec. 31, 2022  March 31, 2023  June 30, 2023  Sept. 30, 2023 Dec. 31, 2023  March 31, 2024  June 30, 2024
United States [1] 32   38   42   42   44   45   45   42   32 
International [2] 14   13   16   17   18   15   15   15   11 
Total stores 46   51   58   59   62   60   60   57   43 


______________________________
1 In the first quarter of 2024, we closed the operations of three stores in the US. In the second quarter of 2024, we closed the operations of ten stores in the US.
2 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. In the second quarter of 2024, we transitioned the operations of two stores in Japan and one store in New Zealand to unrelated third-party distributors, resulting in a reduction of three international stores. In the second quarter of 2024, we closed one store in Europe.


FAQ

What was Allbirds' (BIRD) net revenue in Q2 2024?

Allbirds reported net revenue of $51.6 million in Q2 2024, representing a 26.8% decrease compared to the same period last year.

How did Allbirds' (BIRD) gross margin change in Q2 2024?

Allbirds' gross margin improved by 770 basis points to 50.5% in Q2 2024 compared to 42.8% in Q2 2023.

What is Allbirds' (BIRD) revenue guidance for full-year 2024?

Allbirds reiterated its full-year 2024 revenue guidance of $190 million to $210 million.

How much cash did Allbirds (BIRD) have at the end of Q2 2024?

Allbirds ended Q2 2024 with $87.2 million of cash and cash equivalents and no outstanding borrowings under its $50 million revolving credit facility.

What are Allbirds' (BIRD) main focus areas for future growth?

Allbirds is prioritizing three main focus areas: Making Great Product, Telling Compelling Stories, and Providing Customers with an Engaging Shopping Experience to drive growth in 2025.

Allbirds, Inc.

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