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 in September 2023.
Gross profit totaled $24.9 million compared to
$32.5 million in the third quarter of 2022, and gross margin
declined to 43.5% compared to 44.8% in the third quarter of 2022.
The decline in gross profit and gross margin is primarily due to
the decrease in average selling price and units sold, partially
offset by the decrease in inventory write-downs and lower freight,
logistics, and product costs per unit.
Selling, general, and administrative expense
(SG&A) was $43.5 million, or 76.1% of net revenue, compared to
$44.6 million, or 61.4% of net revenue in the third quarter of
2022. The decrease is primarily attributable to decreases in
stock-based compensation expense and personnel and related
expenses.
Marketing expense totaled $10.2 million, or
17.8% of net revenue, compared to $12.7 million, or 17.4% of net
revenue in the third quarter of 2022, reflecting a reduction in
marketing spend compared to the same period in 2022, driven by
decreased digital advertising spend.
Restructuring expense totaled $1.2 million, or
2.2% of net revenue compared to $0.7 million, or 1.0% of net
revenue in the third quarter of 2022, primarily as a result of
higher professional service fees and employee-related benefits
associated with execution of the strategic transformation plan
announced in March 2023.
Net loss was $31.6 million compared to $25.2
million in the third quarter of 2022, and net loss margin was 55.2%
compared to 34.7% in the third quarter of 2022.
Adjusted EBITDA1 was a loss of $19.0 million,
compared to a loss of $14.8 million in the third quarter of 2022,
and adjusted EBITDA margin1 declined to (33.1)% compared to (20.4)%
in the third quarter of 2022.
Nine Month Operating
Results
Net revenue in the first nine months of 2023
decreased 14.8% to $182.1 million compared to $213.6 million in the
first nine months of 2022 and increased 1.0% compared to the first
nine months of 2021. The year-over-year decrease is primarily
attributable to a decrease in average selling price, driven by
promotional activity, a decrease in units sold, and a $1.2 million
impact of FX.
Gross profit in the first nine months of 2023
totaled $76.9 million compared to $93.3 million in the first nine
months of 2022, while gross margin declined to 42.2% in the first
nine months of 2023 versus 43.7% in the same period a year ago. The
decrease in gross profit and gross margin is primarily due to the
decrease in average selling price and units sold, partially offset
by the decrease in inventory write-downs, lower freight costs, and
a higher mix of international sales.
SG&A in the first nine months of 2023 was
$132.5 million, or 72.8% of net revenue, compared to $125.1
million, or 58.6% of net revenue, in the first nine months of 2022,
with the increase primarily attributable to an increase in
operational expenses for 11 additional stores opened since the
first nine months of 2022, including depreciation expense and rent
and utility expense.
Marketing expense in the first nine months of
2023 totaled $34.2 million compared to $42.3 million in the first
nine months of 2022 and improved as a percentage of net revenue to
18.8% from 19.8% for the same period last year due to a reduction
in marketing spend compared to the same period in 2022, driven by
decreased digital advertising spend.
Restructuring expense in the first nine months
of 2023 totaled $5.5 million, or 3.0% of net revenue, compared to
$0.7 million, or 0.3% of net revenue, in the same period in 2022,
primarily as a result of higher professional fees and
employee-related expenses associated with the execution of the
strategic transformation plan announced in March 2023.
Net loss in the first nine months of 2023 was
$95.7 million compared to $76.5 million in the first nine months of
2022, and net loss margin was 52.5% compared to 35.8% in the first
nine months of 2022.
Adjusted EBITDA loss1 in the first nine months
of 2023 was $58.9 million compared to a loss of $47.9 million in
the first nine months of 2022, and adjusted EBITDA margin(1)
declined to (32.4)% compared to (22.4)% for the first nine months
of 2022.
________________________________________
1 For a reconciliation of each non-GAAP
financial measure to its most directly comparable GAAP financial
measure, please refer to the reconciliation tables in the section
titled “Non-GAAP Financial Measures” below.
Strategic Transformation Designed to
Drive Sustained and Profitable Growth
During the third quarter, Allbirds made continued progress with
the execution of its strategic transformation plan designed to
reignite growth in the coming years, as well as improve capital
efficiency, and drive improved profitability. The plan, announced
in March 2023, focuses on four key areas:
- Reignite product and brand: Executing a highly focused brand
strategy that reconnects with core consumers.
- Optimize U.S. distribution and store profitability: Driving
traffic and conversion to our U.S. fleet and selectively expanding
our third-party channel.
- Evaluate transition of international go-to-market strategy:
Transitioning to distributor partners in certain international
markets to grow internationally in a cost- and capital-efficient
manner.
- Improve cost savings and capital efficiency: Building upon and
further accelerating 2022 cost and cash optimization initiatives to
accelerate cost of revenue savings and SG&A savings, and
improve cash optimization.
Subsequent to the close of the third quarter,
Allbirds entered into a non-binding letter of intent with a
distributor partner in Japan and a non-binding letter of intent
with a distributor partner in Australia/New Zealand. The transition
to these distributors contemplated by these letters of intent are
expected to be finalized in mid-2024. The New Zealand letter of
intent is subject to the completion of an employee consultation
process.
Balance Sheet Highlights
Allbirds ended the quarter with $132.5 million
of cash and cash equivalents, reflecting a significant improvement
in operating cash use. The Company’s operating cash use was $5.4
million for the three months ended September 30, 2023, compared to
operating cash use of $17.5 million in the same period a year
ago.
Inventories totaled $79.9 million, a decrease of
31.6% compared to $116.8 million at the end of 2022, and a decrease
of 36.8% compared to $126.5 million at the end of the third quarter
of 2022. The decrease from the end of 2022 is primarily
attributable to fewer units of on hand inventory.
Q4 2023 Financial
Guidance Targets
Allbirds is providing the following financial
guidance targets for the fourth quarter of 2023, which reflects a
negative impact to revenue associated with the transition from a
direct selling model to a distributor model in Canada and South
Korea, as well as the Company’s plans for heightened promotional
activity during the holiday season:
- Net revenue of $66 million to $72
million, a decrease of 22% to 15% versus the fourth quarter of
fiscal 2022.
- Adjusted EBITDA2 loss of $(26)
million to $(23) million.
The Company will provide additional commentary
on 2023 business trends during its earnings call.
________________________________________
2 A reconciliation of these non-GAAP financial
measures to corresponding GAAP financial measures is not available
on a forward-looking basis without unreasonable effort as we are
currently unable to predict with a reasonable degree of certainty
certain expense items that are excluded in calculating adjusted
EBITDA, although it is important to note that these factors could
be material to our results computed in accordance with GAAP. We
have provided a reconciliation of GAAP to non-GAAP financial
measures in the section titled “Reconciliation of GAAP to Non-GAAP
Financial Measures” for our third quarter 2023 and 2022 results
included in this press release.
Conference Call Information
Allbirds will host a conference call to discuss
the results, followed by Q&A, at 5:00 p.m. Eastern Time today,
November 8, 2023. A live webcast and replay of the conference call
will be available on the investor relations section of the Allbirds
website at https://ir.allbirds.com. Information on the Company’s
website is not, and will not be deemed to be, a part of this press
release or incorporated into any other filings the Company may make
with the Securities and Exchange Commission. A replay of the
webcast will also be archived on the Allbirds website for 12
months.
About Allbirds, Inc.
Dreamed up in New Zealand, Allbirds launched in
San Francisco in 2016 with the ethos of using natural materials to
create the world’s most comfortable shoes. With carbon reduction as
its north star, Allbirds is paving the way for a more sustainable
approach to business through product innovation, industry
collaboration (like open sourcing its carbon footprint calculator)
and being the first footwear brand to carbon label all of its
products. www.allbirds.com
Forward-Looking Statements
This press release and related conference call
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are based on
management’s beliefs and assumptions and on information currently
available to management. All statements other than statements of
historical facts, including statements regarding our strategic
transformation plan and related efforts, financial outlook and
guidance targets, planned transition to a distributor model in
certain international markets, anticipated distributor model
arrangements, anticipated distributor model arrangements, focus on
improving efficiencies and driving profitability, estimated and/or
targeted cost savings, medium-term financial targets, market
position, future results of operations, financial condition,
business strategy and plans, reducing the carbon footprint of our
products, materials innovation and new product launches, and
objectives of management for future operations are forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as “designed,”
“objective,” “anticipate,” “believe,” “contemplate,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “will,” or
“would” or the negative of these words or other similar terms or
expressions. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
including, but not limited to: our ability to execute our strategic
transformation plans, simplification initiatives or our long-term
growth strategy; fluctuations in our operating results; our ability
to achieve the financial outlook and guidance targets for the third
quarter of 2023; our ability to complete transitions to a
distributor model in certain international markets; our ability to
achieve our cost savings targets by 2025; economic uncertainty in
our key markets; impairment of long-lived assets; the strength of
our brand; our net losses since inception; the competitive
marketplace; our reliance on technical and materials innovation;
our use of sustainable high-quality materials and environmentally
friendly manufacturing processes and supply chain practices; our
ability to attract new customers and increase sales to existing
customers; the impact of climate change and government and investor
focus on sustainability issues; our ability to anticipate product
trends and consumer preferences, including with respect to the
product launches we have planned for the second half of 2023; and
our ability to forecast consumer demand. Moreover, we operate in a
very competitive and rapidly changing environment in which new
risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause our actual results or performance
to differ materially from those contained in any forward-looking
statements we may make.
Further information on these risks and other
factors that could cause our financial results, performance, and
achievements to differ materially from any results, performance, or
achievements anticipated, expressed, or implied by these
forward-looking statements is included in the filings we make with
the SEC, including our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2023, and future reports we may file with
the SEC from time to time. The forward-looking statements contained
in this press release and related conference call relate only to
events as of the date stated or, if no date is stated, as of the
date of this press release and related conference call. We
undertake no obligation to update any forward-looking statements
made in this press release to reflect events or circumstances after
the date of this press release or to reflect new information or the
occurrence of unanticipated events, except as required by law. We
may not actually achieve the plans, intentions or expectations
disclosed in or expressed by, and you should not place undue
reliance on our forward-looking statements. Our forward-looking
statements do not reflect the potential impact of any future
acquisitions, mergers, dispositions, joint ventures or
investments.
Use of Non-GAAP Financial Measures
This press release and accompanying financial
tables include references to adjusted EBITDA and adjusted EBITDA
margin, which are non-GAAP financial measures. We believe that
these non-GAAP financial measures, when reviewed in conjunction
with GAAP financial measures, and not in isolation or as
substitutes for analysis of our results of operations under GAAP,
are useful to investors as they are widely used measures of
performance, and the adjustments we make to these non-GAAP
financial measures provide investors further insight into our
profitability and additional perspectives in comparing our
performance to other companies and in comparing our performance
over time on a consistent basis. These non-GAAP financial measures
should not be considered as alternatives to net loss or net loss
margin as calculated and presented in accordance with GAAP.
Adjusted EBITDA is defined as net loss before
stock-based compensation expense, including common stock warrant
expense, depreciation and amortization expense, impairment expense,
restructuring expense (consisting of professional fees, severance
payments, and other related charges from our August 2022 and March
2023 initiatives), non-cash gains or losses on the sales of
businesses relating to our March 2023 initiatives, other income or
expense (consisting of non-cash changes in the fair value of our
equity investments, non-cash gains or losses on foreign currency,
and non-cash gains or losses on sales of property and equipment),
interest income or expense, and income tax provision or
benefit.
Adjusted EBITDA margin is defined as adjusted
EBITDA divided by net revenue.
Other companies, including companies in our
industry, may calculate these adjusted financial measures
differently, which reduces their usefulness as comparative
measures. Because of these limitations, we consider, and investors
should consider, these adjusted financial measures together with
other operating and financial performance measures presented in
accordance with GAAP.
Investor
Relations:
ir@allbirds.com
Media Contact:
press@allbirds.com
|
Allbirds, Inc. |
Condensed Consolidated Statements of Operations and
Comprehensive Loss |
(in thousands, except share, per share amounts, and
percentages) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net revenue |
$ |
57,244 |
|
|
$ |
72,651 |
|
|
$ |
182,075 |
|
|
$ |
213,588 |
|
Cost of revenue |
32,351 |
|
|
40,120 |
|
|
105,218 |
|
|
120,263 |
|
Gross profit |
24,893 |
|
|
32,531 |
|
|
76,857 |
|
|
93,325 |
|
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense |
43,545 |
|
|
44,644 |
|
|
132,516 |
|
|
125,106 |
|
Marketing expense |
10,176 |
|
|
12,654 |
|
|
34,192 |
|
|
42,294 |
|
Restructuring expense |
1,234 |
|
|
747 |
|
|
5,514 |
|
|
747 |
|
Total operating expense |
54,955 |
|
|
58,045 |
|
|
172,222 |
|
|
168,147 |
|
Loss from operations |
(30,062 |
) |
|
(25,514 |
) |
|
(95,365 |
) |
|
(74,822 |
) |
Loss from sales of businesses |
(2,346 |
) |
|
— |
|
|
(2,346 |
) |
|
— |
|
Interest income (expense) |
1,120 |
|
|
(35 |
) |
|
2,961 |
|
|
(107 |
) |
Other (expense) income |
(153 |
) |
|
155 |
|
|
(298 |
) |
|
393 |
|
Loss before provision for
income taxes |
(31,441 |
) |
|
(25,394 |
) |
|
(95,048 |
) |
|
(74,536 |
) |
Income tax (provision)
benefit |
(134 |
) |
|
153 |
|
|
(631 |
) |
|
(1,953 |
) |
Net loss |
$ |
(31,575 |
) |
|
$ |
(25,241 |
) |
|
$ |
(95,679 |
) |
|
$ |
(76,489 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share data: |
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted |
$ |
(0.21 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.63 |
) |
|
$ |
(0.52 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders, basic and diluted |
152,103,817 |
|
|
149,267,269 |
|
|
151,005,080 |
|
|
148,481,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss |
(906 |
) |
|
(3,690 |
) |
|
(1,438 |
) |
|
(7,763 |
) |
Total comprehensive loss |
$ |
(32,481 |
) |
|
$ |
(28,931 |
) |
|
$ |
(97,117 |
) |
|
$ |
(84,252 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Statements of
Operations Data, as a Percentage of Net Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
Cost of revenue |
56.5 |
% |
|
55.2 |
% |
|
57.8 |
% |
|
56.3 |
% |
Gross profit |
43.5 |
% |
|
44.8 |
% |
|
42.2 |
% |
|
43.7 |
% |
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense |
76.1 |
% |
|
61.4 |
% |
|
72.8 |
% |
|
58.6 |
% |
Marketing expense |
17.8 |
% |
|
17.4 |
% |
|
18.8 |
% |
|
19.8 |
% |
Restructuring expense |
2.2 |
% |
|
1.0 |
% |
|
3.0 |
% |
|
0.3 |
% |
Total operating expense |
96.0 |
% |
|
79.9 |
% |
|
94.6 |
% |
|
78.7 |
% |
Loss from operations |
(52.5 |
)% |
|
(35.1 |
)% |
|
(52.4 |
)% |
|
(35.0 |
)% |
Loss from sales of
businesses |
(4.1 |
)% |
|
0.0 |
% |
|
(1.3 |
)% |
|
0.0 |
% |
Interest income (expense) |
2.0 |
% |
|
0.0 |
% |
|
1.6 |
% |
|
(0.1 |
)% |
Other (expense) income |
(0.3 |
)% |
|
0.2 |
% |
|
(0.2 |
)% |
|
0.2 |
% |
Loss before provision for
income taxes |
(54.9 |
)% |
|
(35.0 |
)% |
|
(52.2 |
)% |
|
(34.9 |
)% |
Income tax (provision)
benefit |
(0.2 |
)% |
|
0.2 |
% |
|
(0.3 |
)% |
|
(0.9 |
)% |
Net loss |
(55.2 |
)% |
|
(34.7 |
)% |
|
(52.5 |
)% |
|
(35.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss |
(1.6 |
)% |
|
(5.1 |
)% |
|
(0.8 |
)% |
|
(3.6 |
)% |
Total comprehensive loss |
(56.7 |
)% |
|
(39.8 |
)% |
|
(53.3 |
)% |
|
(39.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Allbirds, Inc. |
Condensed Consolidated Balance Sheets |
(in thousands, except share amounts) |
|
|
September 30, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
132,483 |
|
|
$ |
167,136 |
|
Accounts receivable |
|
5,321 |
|
|
|
9,206 |
|
Inventory |
|
79,933 |
|
|
|
116,796 |
|
Prepaid expenses and other current assets |
|
18,012 |
|
|
|
15,796 |
|
Total current assets |
|
235,749 |
|
|
|
308,934 |
|
|
|
|
|
Property and equipment—net |
|
48,101 |
|
|
|
54,340 |
|
Operating lease right-of-use assets |
|
89,586 |
|
|
|
91,232 |
|
Other assets |
|
6,616 |
|
|
|
7,858 |
|
Total assets |
$ |
380,052 |
|
|
$ |
462,364 |
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
12,580 |
|
|
|
12,245 |
|
Accrued expenses and other current liabilities |
|
20,148 |
|
|
|
23,448 |
|
Current lease liabilities |
|
14,582 |
|
|
|
10,263 |
|
Deferred revenue |
|
3,934 |
|
|
|
4,057 |
|
Total current liabilities |
|
51,244 |
|
|
|
50,012 |
|
|
|
|
|
Noncurrent liabilities: |
|
|
|
Noncurrent lease liabilities |
|
92,420 |
|
|
|
95,583 |
|
Other long-term liabilities |
|
9 |
|
|
|
— |
|
Total noncurrent liabilities |
|
92,429 |
|
|
|
95,583 |
|
Total liabilities |
|
143,673 |
|
|
|
145,595 |
|
|
|
|
|
Commitments and contingencies (Note 16) |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Class A Common Stock, $0.0001 par value; 2,000,000,000 shares
authorized as of September 30, 2023 and December 31, 2022;
99,999,316 and 96,768,745 shares issued and outstanding as of
September 30, 2023 and December 31, 2022, respectively |
|
10 |
|
|
|
10 |
|
Class B Common Stock, $0.0001 par value; 200,000,000 shares
authorized as of September 30, 2023 and December 31, 2022;
52,547,761 and 53,137,729 shares issued and outstanding as of
September 30, 2023 and December 31, 2022, respectively |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
575,833 |
|
|
|
559,106 |
|
Accumulated other comprehensive loss |
|
(5,049 |
) |
|
|
(3,611 |
) |
Accumulated deficit |
|
(334,420 |
) |
|
|
(238,741 |
) |
Total stockholders’ equity |
|
236,379 |
|
|
|
316,769 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
380,052 |
|
|
$ |
462,364 |
|
|
|
|
|
Allbirds, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands) |
|
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(95,679 |
) |
|
$ |
(76,489 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
15,142 |
|
|
|
11,129 |
|
Amortization of debt issuance costs |
|
37 |
|
|
|
37 |
|
Stock-based compensation |
|
15,662 |
|
|
|
14,785 |
|
Inventory write-down |
|
9,149 |
|
|
|
12,675 |
|
Realized loss on equity investment |
|
84 |
|
|
|
— |
|
Loss from sales of businesses |
|
2,376 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
3,799 |
|
|
|
1,563 |
|
Inventory |
|
23,090 |
|
|
|
(34,890 |
) |
Prepaid expenses and other current assets |
|
750 |
|
|
|
(1,939 |
) |
Operating lease right-of-use assets and current and noncurrent
lease liabilities |
|
2,919 |
|
|
|
— |
|
Other assets |
|
— |
|
|
|
(3,839 |
) |
Accounts payable and accrued expenses |
|
(2,783 |
) |
|
|
(12,054 |
) |
Other long-term liabilities |
|
9 |
|
|
|
7,674 |
|
Deferred revenue |
|
(53 |
) |
|
|
(810 |
) |
Net cash used in operating activities |
|
(25,498 |
) |
|
|
(82,158 |
) |
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchase of property and equipment |
|
(9,657 |
) |
|
|
(24,957 |
) |
Changes in security deposits |
|
758 |
|
|
|
(610 |
) |
Proceeds from equity investment |
|
166 |
|
|
|
— |
|
Net cash used in investing activities |
|
(8,733 |
) |
|
|
(25,567 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Proceeds from the exercise of stock options |
|
516 |
|
|
|
2,738 |
|
Taxes withheld and paid on employee stock awards |
|
(359 |
) |
|
|
(152 |
) |
Proceeds from issuance of common stock under the employee stock
purchase plan |
|
233 |
|
|
|
823 |
|
Repayment of non-recourse promissory note |
|
— |
|
|
|
539 |
|
Payments of deferred offering costs |
|
— |
|
|
|
(744 |
) |
Net cash provided by financing activities |
|
390 |
|
|
|
3,204 |
|
|
|
|
|
Effect of foreign exchange rate changes on cash, cash equivalents,
and restricted cash |
|
(804 |
) |
|
|
(2,698 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(34,645 |
) |
|
|
(107,219 |
) |
Cash, cash equivalents, and restricted cash—beginning of
period |
|
167,767 |
|
|
|
288,576 |
|
Cash, cash equivalents, and restricted cash—end of period |
$ |
133,122 |
|
|
$ |
181,357 |
|
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid for interest |
$ |
86 |
|
|
$ |
63 |
|
Cash paid for taxes |
$ |
1,477 |
|
|
$ |
1,366 |
|
Noncash investing and financing activities: |
|
|
|
Purchase of property and equipment included in accounts
payable |
$ |
30 |
|
|
$ |
1,299 |
|
Non-cash exercise of common stock warrants |
$ — |
|
|
$ |
35 |
|
Stock-based compensation included in capitalized internal-use
software |
$ |
677 |
|
|
$ |
892 |
|
Reconciliation of cash, cash equivalents, and restricted
cash: |
|
|
|
Cash and cash equivalents |
$ |
132,483 |
|
|
$ |
180,727 |
|
Restricted cash included in prepaid expenses and other current
assets |
|
639 |
|
|
|
630 |
|
Total cash, cash equivalents, and restricted cash |
$ |
133,122 |
|
|
$ |
181,357 |
|
|
|
|
|
Allbirds, Inc.
Reconciliation of GAAP to Non-GAAP Financial
Measures(in thousands, except share, per share
amounts, and percentages)(unaudited)
The following tables present a reconciliation of adjusted EBITDA
to its most comparable GAAP measure, net loss, and presentation of
net loss margin and adjusted EBITDA margin for the periods
indicated:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss |
$ |
(31,575) |
|
$ |
(25,241) |
|
$ |
(95,679) |
|
$ |
(76,489) |
Add (deduct): |
|
|
|
|
|
|
|
Stock-based compensation expense, including common stock warrant
expense |
4,690 |
|
5,793 |
|
15,662 |
|
14,938 |
Depreciation and amortization expense |
5,162 |
|
4,132 |
|
15,269 |
|
11,243 |
Restructuring expense |
1,234 |
|
747 |
|
5,514 |
|
747 |
Loss from sales of businesses |
2,346 |
|
— |
|
2,346 |
|
— |
Other expense (income) |
153 |
|
(155) |
|
298 |
|
(393) |
Interest (income) expense |
(1,120) |
|
35 |
|
(2,961) |
|
107 |
Income tax provision (benefit) |
134 |
|
(153) |
|
631 |
|
1,953 |
Adjusted EBITDA[1] |
$ |
(18,976) |
|
$ |
(14,842) |
|
$ |
(58,920) |
|
$ |
(47,894) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] We are no longer excluding the revenue and cost of revenue
impact associated with the inventory optimization related to the
previously announced discontinuation of our first generation
apparel business, the Simplification Initiatives, from Adjusted
EBITDA. The impact of this change to our adjusted EBITDA for the
three and nine months ended September 30, 2022 is an increase to
Adjusted EBITDA loss of $11.6 million. |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net revenue |
$ |
57,244 |
|
$ |
72,651 |
|
$ |
182,075 |
|
$ |
213,588 |
|
|
|
|
|
|
|
|
Net loss |
$ |
(31,575) |
|
$ |
(25,241) |
|
$ |
(95,679) |
|
$ |
(76,489) |
Net loss margin |
(55.2)% |
|
(34.7)% |
|
(52.5)% |
|
(35.8)% |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(18,976) |
|
$ |
(14,842) |
|
$ |
(58,920) |
|
$ |
(47,894) |
Adjusted EBITDA margin |
(33.1)% |
|
(20.4)% |
|
(32.4)% |
|
(22.4)% |
|
|
|
|
|
|
|
|
Allbirds, Inc. |
Net Revenue and Store Count by Primary Geographical
Market |
(in thousands, except for store count) |
(unaudited) |
|
|
Net Revenue by Primary Geographical Market |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
United States |
$ |
43,671 |
|
$ |
56,083 |
|
$ |
135,555 |
|
$ |
164,229 |
International |
|
13,573 |
|
|
16,568 |
|
|
46,520 |
|
|
49,359 |
Total net revenue |
$ |
57,244 |
|
$ |
72,651 |
|
$ |
182,075 |
|
$ |
213,588 |
|
|
|
|
|
|
|
|
|
Store Count by Primary Geographical Market |
|
September 30, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
|
June 30, 2022 |
|
September 30, 2022 |
|
December 31, 2022 |
|
March 31, 2023 |
|
June 30, 2023 |
|
September 30, 2023 |
United States |
19 |
|
23 |
|
27 |
|
32 |
|
38 |
|
42 |
|
42 |
|
44 |
|
45 |
International [2] |
12 |
|
12 |
|
12 |
|
14 |
|
13 |
|
16 |
|
17 |
|
18 |
|
15 |
Total stores |
31 |
|
35 |
|
39 |
|
46 |
|
51 |
|
58 |
|
59 |
|
62 |
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[2] In the third quarter of 2022, we opened two new international
stores and had three store leases expire, resulting in a net
reduction of one lease. In the third quarter of 2023, we
transitioned the operations of two stores in Canada and one store
in South Korea to unrelated third-party distributors, resulting in
a reduction of three international stores. |
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