Business
Purple Innovation Reports Second Quarter 2021 Results and Provides 2021 Guidance
LEHI, Utah, Aug. 9, 2021 /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, Aug. 9, 2021 /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 second quarter ended June 30, 2021.\n\n \n \n \n \n \n \n\n \nSecond Quarter Financial Summary (Comparisons versus Second Quarter 2020 and 2019)1\nNet revenue increased 10.6% to $182.6 million, compared to $165.1 million in 2020 and increased 77.3% compared to $103.1 million in 2019. Wholesale revenue increased 233.2% over 2020 and 68.9% over 2019; Direct-to-Consumer (DTC) revenue decreased 19.9% compared to 2020 and increased 82.4% over 2019.Gross margin was 44.7% compared to 49.4% in 2020 and 41.5% in 2019. Operating expenses as a percent of net revenue were 46.1% compared to 30.1% in 2020 and 43.8% in 2019. Operating loss was $(2.5) million compared to operating income of $32.0 million in 2020 and operating loss of ($2.4) million 2019. Net income was $2.6 million compared to a net loss of $(97.1) million in 2020, reflecting primarily the impact from the change in fair value of warrant liabilities and net loss of ($11.3) million in 2019. Adjusted net income was $3.6 million, or $0.05 per diluted share, as compared to adjusted net income of $22.7 million, or $0.35 per diluted share, in 2020 and adjusted net income of $2.3 million, or $0.04 per diluted share, in 2019. EBITDA was $3.9 million compared to $(129.1) million in 2020, reflecting primarily the impact from the change in fair value of warrant liabilities, and ($9.1) million in 2019. Adjusted EBITDA was $11.0 million compared to $35.2 million in 2020 and $6.2 million in 2019. Cash and cash equivalents were $110.1 million at June 30, 2021.The Company views comparison to the 2019 period to be more meaningful than the comparable 2020 period given the exceptional, COVID-19-Related consumer demand changes experienced in the same period in 2020.\n\"Following a very good start to 2021, demand for the Purple brand has remained strong especially in our wholesale channel as consumers are increasingly returning to shopping brick and mortar retail,\" said Joe Megibow, Chief Executive Officer. \"Unfortunately, our recent performance was impacted by isolated manufacturing challenges that limited our ability to fulfill a meaningful portion of demand during the second quar...