Business
Purple Innovation Reports Record Third Quarter 2020 Results
Third Quarter Net Revenue Increased 59.4% to $187.1 Million Third Quarter Operating Income Increased 120.9% to $24.3 Million Cash and Cash Equivalents at
About this update from Purple Innovation, Inc.
[{"type":"text","content":"Third Quarter Net Revenue Increased 59.4% to $187.1 Million\n Third Quarter Operating Income Increased 120.9% to $24.3 Million\n Cash and Cash Equivalents at September 30, 2020 Increased to $98.0 Million\n\n\nLEHI, Utah, Nov. 10, 2020 /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 third quarter ended September 30, 2020.\n\n \n \n \n \n \n \n\n \nThird Quarter Financial Summary (Comparisons versus Third Quarter 2019)1\nNet revenue increased 59.4% to $187.1 million, compared to $117.4 million. Direct-to-Consumer (DTC) revenue increased 97.5%; Wholesale revenue increased 6.9%Gross margin improved 220 basis points to 47.2% compared to 45.0%. Operating expenses as a percent of net revenue were 34.2% compared to 35.7%. Operating income increased 120.9% to $24.3 million compared to $11.0 million. Net loss was ($1.2) million compared to net income of $8.4 million. Adjusted net income was $17.2 million, or $0.27 per diluted share compared to $7.3 million, or $0.14 per diluted share. EBITDA was $2.5 million compared to $10.5 million. Adjusted EBITDA was $30.1 million compared to $15.3 million. \"Demand for the Purple brand was at an all-time high during the third quarter and our organization did a terrific job capitalizing upon opportunities, translating record revenue to strong cash flow,\" said Joe Megibow, Chief Executive Officer. \"The investments we made earlier this year to expand our manufacturing capacity helped support strong year-over-year growth in our direct-to-consumer mattress business, as well as a resurgence in our wholesale channel as our retail partners experienced improved store traffic. We also continued to see strong gains in seat cushions, pillows and sheets, underscoring the progress we've made increasing awareness and driving demand for our premium, non-mattress categories. The combination of outstanding top-line performance, improved operating margins, and marketing efficiencies, resulted in an increase in operating profit of more than 120% over the third quarter of 2019 and continued strong cash generation.\" \nMegibow continued, \"We believe that we are on track for an exceptional year of growth and enhanced profitability. As we head into the final months of 2020, ou...