Business
Purple Innovation Reports First Quarter 2023 Results
LEHI, Utah, May 10, 2023 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known for creating the "World's First
About this update from Purple Innovation, Inc.
[{"type":"text","content":"LEHI, Utah, May 10, 2023 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) (\"Purple\"), a comfort innovation company known for creating the \"World's First No Pressure ™ Mattress,\" today announced results for the first quarter ended March 31, 2023.\n\n \n \n \n \n \n \n\n \nFirst Quarter Financial Summary (Comparisons versus First Quarter 2022)1\nNet revenue decreased 23.6% to $109.4 million compared to $143.2 million.Wholesale revenue decreased 25.3% and Direct-to-Consumer (DTC) revenue decreased 22.5%.Gross margin increased 340 basis points to 39.5% compared to 36.1%.Operating expenses were $65.2 million, or 59.6% of revenue compared to $70.0 million, or 48.9% of revenue.Advertising spend decreased 50.7% to $11.7 million, compared to $23.8 million.Operating loss was $(22.0) million compared to an operating loss of $(18.4) million.Net loss was $(23.4) million as compared to $(13.6) million.Adjusted net loss was $(12.0) million, or $(0.12) per diluted share as compared to $(16.5) million, or $(0.24) per diluted share.EBITDA was $(16.3) million compared to $(10.6) million.Adjusted EBITDA decreased to $(4.4) million compared to $(9.6) million.Cash and cash equivalents were $54.5 million at March 31, 2023. \n____________________________\n1 Reconciliations for non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the \"RECONCILIATION OF GAAP TO NON-GAAP MEASURES\" tables at the end of this press release.\nChief Executive Officer Rob DeMartini, said \"Our top-line result was generally in-line with our expectations and our improved Adjusted EBITDA reflects both meaningful operating efficiencies, and proactive cost management, including a significant shift in planned advertising spend intended to support the second quarter launch of our broadest product line ever. I am encouraged that despite lower revenue, we were able to increase gross margins, highlighting the work we've done right sizing our cost structure and improving the efficiency of supply chain and manufacturing processes.\" \n\"With the second quarter underway, we have started shipping our new mattresses to our wholesale partners ahead of their debut at retail, including in our showrooms and website starting May 15,\" continued DeMartini. \"With the improved and expanded product lineup and new brand messaging, we are optim...