Business
Allbirds Reports Third Quarter 2023 Financial Results
Achieves Q3 2023 Guidance Targets; Delivers Continued Progress Under the Company’s Strategic Transformation Plan Provides Fourth Quarter 2023 Financial
About this update from Allbirds, Inc.
[{"type":"text","content":"Achieves Q3 2023 Guidance Targets; Delivers Continued Progress Under the Company’s Strategic Transformation Plan Provides Fourth Quarter 2023 Financial Guidance SAN FRANCISCO, Nov. 08, 2023 (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 third quarter ended September 30, 2023. Q3 2023 Overview Net revenue decreased 21.2% to $57.2 million versus a year ago and decreased 8.7% compared to Q3 2021.Net loss of $31.6 million, or $0.21 per basic and diluted share.Adjusted EBITDA1 loss of $19.0 million.Ending inventory of $79.9 million, representing a decrease of 37% versus a year ago.Significantly reduced operating cash use in Q3; cash use of $5.4 million compared to $17.5 million a year ago.Completed previously announced distribution agreements and transitioned to a new operating model in Canada and South Korea, representing continued progress under a key pillar within Allbirds’ Strategic Transformation Plan. “Our third quarter results reflect another quarter of solid execution under our Strategic Transformation Plan,” said Joey Zwillinger, Co-Founder and CEO. “We made important progress on our key benchmarks of inventory reduction, operating cash use, and cost control, resulting in adjusted EBITDA ahead of our expectations. We also meaningfully advanced our strategy to transition from a direct distribution model to third-party distributors in key international markets. Nearing the end of our first year of transformation, our path remains clear and we are operating with discipline to deliver profitable growth and build shareholder value over the long term.” Third Quarter Operating Results Net revenue decreased 21.2% to $57.2 million compared to the third quarter of 2022 and decreased 8.7% compared to the third quarter of 2021. The year-over-year decrease is primarily attributable to a decrease in average selling price, driven by promotional activity, and a decrease in units sold, partially offset by a $0.3 million benefit from foreign exchange (FX). In addition, net revenue in the third quarter of 2023 was negatively impacted by an estimated $0.8 million as a result of the transition from a direct selling model to a distributor model in South Korea and Canada...