Allbirds Inc Reports Second Quarter 2024 Financial Results

Allbirds, Inc. Reports Second Quarter 2024 Financial Results

SAN FRANCISCO, August 7, 2024 — Allbirds, Inc. (NASDAQ: BIRD), a global lifestyle brand that innovates with sustainable materials, announced its financial results for the second quarter ended June 30, 2024.

Key Financial Metrics

Allbirds' second-quarter revenue of $51.6 million was slightly above Wall Street expectations of $50.51 million. Despite a year-over-year decline of 26.8%, the company's gross margin improved significantly by 770 basis points to 50.5%, primarily due to reduced freight and duty costs per unit and fewer inventory write-downs. The company’s net loss narrowed to $19.1 million compared to $28.9 million a year ago, demonstrating a trend toward operational efficiency and financial health.

Revenue Performance by Segment

The US segment saw a year-over-year decline of 31.2%, driven by planned retail store closures and lower unit sales, though quarter-over-quarter performance improved by 30.5%. International revenue also faced a downturn of 14.1% YoY due to distributor transitions but saw a QoQ growth of 33.3%.

Key Operational Data

Inventory was reduced by 42% year-over-year, reflecting a healthier overall composition. The company also holds a substantial cash position with $87.2 million in cash and equivalents.

Officer Commentary

CEO Joe Vernachio remarked, "We are pleased to report another quarter of operational and financial progress. After 18 months of strong execution against our strategic transformation plan, we are entering the next phase of our journey, prioritizing Making Great Product, Telling Compelling Stories, and Providing Customers with an Engaging Shopping Experience. We believe these focus areas will position the business for top-line growth in 2025."

Dividends and Share Repurchases

No dividends or share repurchase programs were announced.

Forward Guidance

Allbirds reiterated its full-year 2024 revenue guidance in the range of $190 million to $210 million and raised its gross margin guidance to 43%-46% from a prior range of 42%-45%. Adjusted EBITDA loss guidance has been refined to a range of $75 million to $63 million, improving from the previous upper limit of $78 million.

For Q3 2024, the company forecasts revenue in the range of $40 million to $43 million, with an adjusted EBITDA loss between $19 million and $16 million.

Stock Price Movement

Following the earnings release, Allbirds' stock saw a price increase of 5.15%.

Allbirds continues to focus on strategic initiatives, including the transition to a distributor model in key international markets, as it aims to build shareholder value and return to top-line growth by 2025.