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 of 2022 ended September 30, 2022.
Third Quarter Highlights
- Net revenue
increased 16% to $72.7 million year over year (YoY) and increased
54% compared to 2020.
- Adjusted net revenue1 of $72.2
million increased 15% YoY, ahead of financial guidance
targets.
- United States (U.S.) physical
retail channel sales grew 53% compared to 2021; opened six stores
in the United States during the quarter and 15 since the end of
2021, ending the period with 38 locations in the United
States.
- GAAP net loss of $25.2 million, or
$0.17 per basic and diluted share.
- Adjusted net loss1 of $22.4
million, or $0.15 per basic and diluted share.
- Adjusted EBITDA1 loss of $12.7
million, ahead of financial guidance targets.
- Launched our 100% plastic-free,
100% vegan plant leather that produces approximately 88% less
carbon than traditional bovine leather and approximately 75% less
carbon than other synthetic leather alternatives.
“We delivered a strong quarter in what remains a
highly dynamic operating environment. I am proud that we exceeded
our Q3 adjusted revenue and adjusted EBITDA guidance targets while
also delivering on our sustainability goals,” said Joey Zwillinger,
Co-Founder and Co-CEO. “Looking ahead to year end and 2023, we
continue to expect macro headwinds to persist but believe that our
brand, our growth strategy, and simplification initiatives position
us well to emerge strongly from this period. Thanks to the team’s
hard work I remain confident in our ability to continue to execute
into the holiday season and next year.”
“November also marks the one year anniversary of
our IPO, a critical step in building Allbirds into a 100 year brand
while setting a new industry standard for sustainable business for
others to follow. We recently released our “Flight Status”
sustainability report for 2021, which shows that we were able to
reduce our average product carbon footprint by 12% while growing
our net revenues by 27% in 2021. We remain on track to deliver on
our goal to cut our already low per product carbon footprint in
half by 2025 and achieve near zero by 2030, while also delivering
on our Sustainability Principles & Objectives Framework
commitments first enumerated in our S-1. I could not be more proud
of what we have achieved and remain tremendously optimistic about
the future.”
_______________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.
Q3 2022 Financial and Operating
Highlights
Revenue growth and Record New Store
Openings
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4c39da55-f9a6-455b-a162-d23e232d01cb
Third Quarter Operating
Results
Net revenue increased 15.9% YoY to $72.7 million
and increased 53.8% compared to the third quarter of 2020. This
increase is primarily attributable to an increase in the number of
orders, primarily driven by retail store sales, and an increase in
average order value. This was partially offset by an estimated 355
bps negative impact from foreign exchange (FX). Adjusted net
revenue increased 15.1% YoY to $72.2 million, adjusted for
non-recurring revenue related to end of life inventory liquidation
in connection with the simplification initiatives announced last
quarter.
Gross profit totaled $32.5 million compared to
$33.9 million in the third quarter of 2021, and gross margin
declined to 44.8% compared to 54.1% in the third quarter of 2021.
The decrease in gross margin primarily reflects costs related to
our simplification initiatives, higher logistics costs, and the
impact of unfavorable FX rates. Excluding the impact of our
simplification initiatives, adjusted gross profit1 increased 1.7%
YoY to $34.5 million, and adjusted gross margin was 47.8% compared
to 54.1% in the third quarter of 2021. The decline in adjusted
gross margin was primarily driven by higher logistics costs and the
impact of unfavorable FX rates, partially offset by a higher mix of
margin accretive retail store sales.
Selling, general, and administrative expense
(SG&A) was $45.4 million, or 62.5% of net revenue, compared to
$33.0 million, or 52.6% of revenue, in the third quarter of 2021.
The increase is primarily attributable to expenses for the opening
of eight new stores during the period and operational expenses for
23 additional stores opened since the third quarter of 2021,
increased headcount, and recurring public company operating costs.
Adjusted SG&A1 was $44.5 million, or 61.6% of adjusted net
revenue, compared to $33.0 million, or 52.6% of adjusted net
revenue, in the third quarter of 2021. Adjusted SG&A excludes
the impact of our simplification initiatives to streamline
corporate operating structure.
Marketing expense totaled $12.7 million compared
to $12.8 million and improved as a percentage of revenue to 17.4%
from 20.4% a year ago, due to improvements in marketing
efficiency.
Net loss was $25.2 million compared to $13.8
million in the third quarter of 2021, and net loss margin was 35.0%
compared to 22.0% in the third quarter of 2021. Adjusted for the
impact of the simplification initiatives, and corresponding
estimated income tax on such items, adjusted net loss was $22.4
million and adjusted net loss margin1 was 31.0%.
Adjusted EBITDA was a loss of $12.7 million
compared to a loss of $6.3 million in the third quarter of 2021,
and adjusted EBITDA margin1 declined to (17.6)% compared to (10.1)%
in the third quarter of 2021.
Nine Month Operating
Results
Net revenue increased 18.5% to $213.6 million
compared to $180.3 million YoY and increased 52.5% compared to the
first nine months of 2020. The increase is attributable to an
increase in the number of orders and an increase in average order
value. This was partially offset by unfavorable FX rates that had
an estimated 259 bps negative impact on net revenue. In the U.S.,
where net revenue increased 23.6% YoY to $164.2 million, retail
store sales was the primary driver. International net revenue
increased 4.1% YoY to $49.4 million, as the business was negatively
impacted by external headwinds, including continuing COVID-19
restrictions in China, a decrease in discretionary consumer
spending as a result of increasing inflation the crisis in Ukraine
in Europe, and unfavorable FX rates that had an estimated 9.8%
negative impact. Adjusted net revenue increased 18.2% to $213.1
million compared to the first nine months of 2021, adjusted for
non-recurring revenue related to end of life inventory liquidation
in connection with the simplification initiatives announced last
quarter.
Gross profit totaled $93.3 million compared to
$97.9 million in the first nine months of 2021, while gross margin
declined to 43.7% versus 54.3% YoY. The decrease in gross margin
primarily reflects costs related to our simplification initiatives,
higher logistics costs, a lower mix of international sales, and
unfavorable foreign exchange rates. Excluding the impact of our
simplification initiatives to optimize inventory of $13.6 million,
year-to-date adjusted gross profit increased 9.3% YoY to $106.9
million, and adjusted gross margin was 50.2% compared to 54.3% for
the first nine months of 2021. The decline in adjusted gross margin
primarily relates to higher distribution center and logistics
costs, lower mix of international sales, and unfavorable FX rates,
partially offset by a higher mix of margin accretive retail store
sales.
SG&A was $125.9 million, or 58.9% of
revenue, compared to $85.5 million, or 47.5% of revenue, in the
first nine months of 2021, with the increase primarily driven by
expenses for the opening of 19 new stores during the period and
operating expenses for 23 additional stores opened since the third
quarter of 2021, increased headcount, and recurring public company
operating costs. Adjusted SG&A was $124.9 million, or 58.6% of
adjusted net revenue, compared to $85.5 million, or 47.5% of
adjusted net revenue, in the third quarter of 2021. Adjusted
SG&A excludes the impact of our simplification initiatives to
streamline corporate operating structure.
Marketing expense totaled $42.3 million versus
$38.8 million compared to the first nine months of 2021 and
improved as a percentage of revenue to 19.8% from 21.5% a year ago,
due to improvements in marketing efficiency.
Net loss was $76.5 million compared to $34.9
million in the first nine months of 2021, and net loss margin was
35.8% compared to 19.4% in the first nine months of 2021. Adjusted
for the impact of the simplification initiatives, and corresponding
estimated income tax on such items, adjusted net loss was $62.3
million and net loss margin was 29.2%.
Adjusted EBITDA loss was $34.1 million compared
to a loss of $12.1 million in the first nine months of 2021, and
adjusted EBITDA margin declined to (16.0)% compared to (6.7)% for
the first nine months of 2021.
Simplification Initiatives
As announced last quarter, Allbirds continued to
implement its simplification initiatives designed to generate cost
of revenue savings, streamline workflows, and lower operating
costs.
- Supply chain cost and carbon
reduction:
- Reducing logistics costs in the
United States by transitioning to automated distribution centers
and a dedicated returns processor.
- Taking steps to optimize inventory,
including the liquidation of excess end of life inventory, and
accelerate logistics cost savings.
- Accelerating scaling of our
manufacturing base to reduce product carbon footprints and product
costs over time.
- Streamline corporate operating
structure:
- Reducing corporate headcount and
office space to reflect a new hybrid working environment and to
reduce organizational complexity.
Balance Sheet Highlights
Allbirds ended the quarter with $180.7 million
of cash and cash equivalents and $40 million available under its
revolving credit agreement. Inventories totaled $126.5 million, an
increase of 27.4% compared to $99.3 million at Q3 2021 and an
increase of 3.4% compared to June 30, 2022. The increase from the
end of 2021 is attributable to a combination of higher in-transit
inventory as a result of ongoing supply chain disruptions as well
as the impact of higher inbound freight costs.
2022 Financial &
Carbon Footprint Reduction
Guidance
Targets
Allbirds is maintaining its guidance targets for
full year 2022 which exclude any non-recurring revenue and costs
associated with its simplification initiatives:
- Adjusted net revenue2 of $305
million to $315 million, representing growth in the range of 10% to
14%, including an estimated FX impact of 275-350 bps, versus fiscal
2021.
- Adjusted gross profit2 of $150.0
million to $157.5 million, which at the midpoint of our adjusted
net revenue and adjusted gross profit targets represents a gross
margin of 49.5%.
- Adjusted EBITDA2 loss of $42.5
million to $37.5 million, including an estimated $8 million of
recurring public company costs.
- Carbon footprint reduction target
of 6% against our 2021 baseline for our top 10 products, aligned
with our Allbirds Flight Plan to reduce by 50% by the end of 2025
and 95% by 2030.
Allbirds is providing the following financial
guidance targets for the fourth quarter of 2022, which also exclude
any non-recurring revenue and costs associated with its
simplification initiatives:
- Adjusted net revenue2 of $92
million to $102 million, representing growth in the range of (5)%
to 5% versus the fourth quarter of fiscal 2021.
- Adjusted EBITDA2 loss of $8.5
million to $3.5 million.
_______________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:
(i) the timing of non-recurring revenue and costs associated with
the sale of certain end of life inventory that is excluded in
calculating adjusted net revenue and adjusted gross profit, and
(ii) 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 2022 and 2021
results included in this press release.
Full Year 2022 Guidance
Maintains Guidance Targets to Reflect
Internal and External Trends
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/6b3eb151-03c3-4f8d-ae9d-d3b372b865bd
Mike Bufano, Chief Financial Officer, stated,
“Thanks to our team’s relentless focus on controlling what we can
control, we were able to deliver strong financial performance -
beating our adjusted revenue and adjusted EBITDA guidance - against
a difficult operating backdrop. The investments we have made into
our supply chain, coupled with our leaner infrastructure and strong
cash balance, all position us to continue to grow the business and
work towards improved profitability. I feel confident about how we
are setting up our business for the future to become better
operationally while continuing to deliver on our sustainability
initiatives and create shareholder value.”
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, 2022. A live webcast and replay of the conference call
will be available on the investor relations section of the Allbirds
website at https://www.ir.allbirds.com. A replay of the webcast
will also be archived on the Allbirds website for 12 months.
About Allbirds, Inc.
Headquartered in San Francisco, Allbirds
(NASDAQ: BIRD) is a global lifestyle brand that innovates with
naturally derived materials to make better footwear and apparel
products in a better way, while treading lighter on the planet. The
Allbirds story began with superfine New Zealand merino wool and has
since evolved to include a eucalyptus tree fiber knit fabric and a
sugarcane-based EVA foam (SweetFoam®). Allbirds serves customers
across 36 countries through 53 Allbirds stores and its e-commerce
website, 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 financial
outlook and guidance targets, medium-term financial targets, market
position, future results of operations, financial condition,
business strategy and plans, reducing the carbon footprint of our
products, 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
“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: (1) economic uncertainty in our key markets;
(2) the impact of the COVID-19 pandemic; (3) the strength of our
brand; (4) our net losses since inception; (5) our ability to
successfully implement our simplification initiatives and achieve
the intended cost savings; (6) the competitive marketplace; (7) our
reliance on technical and materials innovation; (8) our use of
sustainable materials and environmentally friendly manufacturing
processes and supply chain practices; (9) our ability to attract
new customers and increase sales to existing customers; (10) the
impact of climate change and government and investor focus on
sustainability issues; (11) our ability to anticipate product
trends and consumer preferences; and (12) our ability to forecast
consumer demand.
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, 2022, 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.
Glossary
Active Customer is defined as a unique customer that has made at
least one purchase of any product in the trailing 12-month
period.
Use of Non-GAAP Financial Measures
This press release and accompanying financial
tables include references to adjusted net revenue, adjusted gross
profit, adjusted gross margin, adjusted SG&A, adjusted net
loss, adjusted net loss per share, 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 adjusted financial measures
should not be considered as alternatives to any measures of
financial performance calculated and presented in accordance with
GAAP.
Adjusted net revenue is defined as net revenue
before the impact of any non-recurring revenue from end of life
inventory liquidation as part of our simplification
initiatives.
Adjusted gross profit is defined as adjusted net
revenue less the cost of revenue before the impact of our
simplification initiatives, which includes any non-recurring
revenue and cost from the end of life inventory liquidation, costs
for non-recurring inventory write-downs, and costs incurred
relating to moving to more automated distribution centers and
moving to a dedicated returns processing provider in the U.S.
Adjusted gross margin is defined as adjusted
gross profit divided by adjusted net revenue.
Adjusted SG&A is defined as SG&A before
the impact of our simplification initiatives, which includes
severance and employee-related costs for terminated employees, the
costs associated with the cease use of one of our U.S. corporate
office leases, and certain third-party professional and consulting
fees specifically incurred as a result of the simplification
initiatives.
Adjusted net loss is defined as net loss before
the impact of our simplification initiatives, which are described
above in Adjusted gross profit and Adjusted SG&A, and
corresponding estimated income tax on such adjusted items.
Adjusted net loss per share is defined as
adjusted net loss divided by weighted average shares outstanding
attributable to common stockholders.
Adjusted EBITDA is defined as net loss before
stock-based compensation expense, including common stock warrant
expense, depreciation and amortization, the impact of the
non-recurring revenue and costs associated with the simplification
initiatives as described above, 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, non-cash gains or
losses on sales of property and equipment, and non-cash changes in
fair value of our preferred stock warrant liability), interest
expense, income tax provision or benefit, and other unusual or
non-recurring items.
Adjusted EBITDA margin is defined as adjusted
EBITDA divided by adjusted 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:
Katina Metzidakis 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)(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net
revenue |
$ |
72,651 |
|
|
$ |
62,711 |
|
|
$ |
213,588 |
|
|
$ |
180,253 |
|
Cost of
revenue |
|
40,120 |
|
|
|
28,776 |
|
|
|
120,263 |
|
|
|
82,370 |
|
Gross
profit |
|
32,531 |
|
|
|
33,935 |
|
|
|
93,325 |
|
|
|
97,883 |
|
Operating
expense: |
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
45,391 |
|
|
|
33,017 |
|
|
|
125,853 |
|
|
|
85,549 |
|
Marketing expense |
|
12,654 |
|
|
|
12,794 |
|
|
|
42,294 |
|
|
|
38,808 |
|
Total operating expense |
|
58,045 |
|
|
|
45,811 |
|
|
|
168,147 |
|
|
|
124,356 |
|
Loss from operations |
|
(25,514 |
) |
|
|
(11,876 |
) |
|
|
(74,822 |
) |
|
|
(26,473 |
) |
Interest
expense |
|
(35 |
) |
|
|
(53 |
) |
|
|
(107 |
) |
|
|
(141 |
) |
Other income
(expense) |
|
155 |
|
|
|
(2,039 |
) |
|
|
393 |
|
|
|
(8,019 |
) |
Loss before
provision for income taxes |
|
(25,394 |
) |
|
|
(13,968 |
) |
|
|
(74,536 |
) |
|
|
(34,632 |
) |
Income tax
benefit (provision) |
|
153 |
|
|
|
167 |
|
|
|
(1,953 |
) |
|
|
(298 |
) |
Net
loss |
$ |
(25,241 |
) |
|
$ |
(13,802 |
) |
|
$ |
(76,489 |
) |
|
$ |
(34,930 |
) |
Other
comprehensive loss: |
|
|
|
|
|
|
|
Foreign currency translation loss |
|
(3,690 |
) |
|
|
(699 |
) |
|
|
(7,763 |
) |
|
|
(1,029 |
) |
Total
comprehensive loss |
$ |
(28,931 |
) |
|
$ |
(14,500 |
) |
|
$ |
(84,252 |
) |
|
$ |
(35,959 |
) |
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted |
$ |
(0.17 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.52 |
) |
|
$ |
(0.64 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders, basic and diluted |
|
149,267,269 |
|
|
|
55,590,320 |
|
|
|
148,481,459 |
|
|
|
54,631,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Statements of Operations Data, as a Percentage of Net
Revenue: |
|
|
|
|
|
|
|
Net
revenue |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of
revenue |
|
55.2 |
% |
|
|
45.9 |
% |
|
|
56.3 |
% |
|
|
45.7 |
% |
Gross
profit |
|
44.8 |
% |
|
|
54.1 |
% |
|
|
43.7 |
% |
|
|
54.3 |
% |
Operating
expense: |
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
62.5 |
% |
|
|
52.6 |
% |
|
|
58.9 |
% |
|
|
47.5 |
% |
Marketing expense |
|
17.4 |
% |
|
|
20.4 |
% |
|
|
19.8 |
% |
|
|
21.5 |
% |
Total operating expense |
|
79.9 |
% |
|
|
73.1 |
% |
|
|
78.7 |
% |
|
|
69.0 |
% |
Loss from
operations |
|
(35.1 |
)% |
|
|
(18.9 |
)% |
|
|
(35.0 |
)% |
|
|
(14.7 |
)% |
Interest
expense |
|
(0.0 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
|
|
(0.1 |
)% |
Other income
(expense) |
|
0.2 |
% |
|
|
(3.3 |
)% |
|
|
0.2 |
% |
|
|
(4.4 |
)% |
Loss before
provision for income taxes |
|
(35.0 |
)% |
|
|
(22.3 |
)% |
|
|
(34.9 |
)% |
|
|
(19.2 |
)% |
Income tax
benefit (provision) |
|
0.2 |
% |
|
|
0.3 |
% |
|
|
(0.9 |
)% |
|
|
(0.2 |
)% |
Net
loss |
|
(34.7 |
)% |
|
|
(22.0 |
)% |
|
|
(35.8 |
)% |
|
|
(19.4 |
)% |
Other
comprehensive loss: |
|
|
|
|
|
|
|
Foreign currency translation loss |
|
(5.1 |
)% |
|
|
(1.1 |
)% |
|
|
(3.6 |
)% |
|
|
(0.6 |
)% |
Total
comprehensive loss |
|
(39.8 |
)% |
|
|
(23.1 |
)% |
|
|
(39.4 |
)% |
|
|
(19.9 |
)% |
|
|
|
|
|
|
|
|
Allbirds, Inc.Condensed
Consolidated Balance Sheets
(in thousands, except
share
amounts)(unaudited)
|
|
|
|
|
September
30, |
|
December
31, |
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
180,727 |
|
|
$ |
288,576 |
|
Accounts receivable |
|
9,122 |
|
|
|
10,978 |
|
Inventory |
|
126,470 |
|
|
|
106,876 |
|
Prepaid expenses and other current assets |
|
34,953 |
|
|
|
37,938 |
|
Total current assets |
|
351,272 |
|
|
|
444,368 |
|
|
|
|
|
Property and
equipment—net |
|
52,211 |
|
|
|
37,955 |
|
Other
assets |
|
10,085 |
|
|
|
6,106 |
|
Total assets |
$ |
413,568 |
|
|
$ |
488,429 |
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
17,771 |
|
|
$ |
30,726 |
|
Accrued expenses and other current liabilities |
|
42,348 |
|
|
|
46,243 |
|
Deferred revenue |
|
3,398 |
|
|
|
4,187 |
|
Total current liabilities |
|
63,517 |
|
|
|
81,156 |
|
|
|
|
|
Noncurrent
liabilities: |
|
|
|
Other long-term liabilities |
|
17,676 |
|
|
|
10,269 |
|
Total noncurrent liabilities |
|
17,676 |
|
|
|
10,269 |
|
Total liabilities |
$ |
81,193 |
|
|
$ |
91,425 |
|
|
|
|
|
Commitments
and contingencies (Note 15) |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Preferred Stock, $0.0001 par value; 20,000,000 shares authorized as
of September 30, 2022 and December 31, 2021; zero shares
issued and outstanding as of September 30, 2022 and
December 31, 2021 |
|
- |
|
|
|
- |
|
Class A Common Stock, $0.0001 par value; 2,000,000,000 shares
authorized as of September 30, 2022 and December 31,
2021; 94,389,961 and 49,016,511 shares issued and outstanding as of
September 30, 2022 and December 31, 2021,
respectively |
|
10 |
|
|
|
5 |
|
Class B Common Stock, $0.0001 par value; 200,000,000 shares
authorized as of September 30, 2022 and December 31,
2021; 54,467,089 and 98,036,009 shares issued and outstanding as of
September 30, 2022 and December 31, 2021,
respectively |
|
5 |
|
|
|
10 |
|
Additional paid-in capital |
|
553,333 |
|
|
|
533,709 |
|
Accumulated other comprehensive (loss) income |
|
(7,097 |
) |
|
|
666 |
|
Accumulated deficit |
|
(213,876 |
) |
|
|
(137,386 |
) |
Total stockholders’ equity |
|
332,375 |
|
|
|
397,004 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
413,568 |
|
|
$ |
488,429 |
|
|
|
|
|
Allbirds, Inc. Condensed
Consolidated Statements of Cash Flows(in
thousands)(unaudited)
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash
flows from operating activities: |
|
|
|
Net loss |
$ |
(76,489 |
) |
|
$ |
(34,930 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
11,129 |
|
|
|
6,532 |
|
Amortization of debt issuance costs |
|
37 |
|
|
|
37 |
|
Stock-based compensation |
|
14,785 |
|
|
|
7,346 |
|
Inventory write-down |
|
12,675 |
|
|
|
- |
|
Change in fair value of preferred stock warrant liability |
|
- |
|
|
|
7,242 |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
1,563 |
|
|
|
(112 |
) |
Inventory |
|
(34,890 |
) |
|
|
(40,753 |
) |
Prepaid expenses and other current assets |
|
(1,939 |
) |
|
|
(11,542 |
) |
Other assets |
|
(3,839 |
) |
|
|
- |
|
Accounts payable and accrued expenses |
|
(12,054 |
) |
|
|
17,262 |
|
Other long-term liabilities |
|
7,674 |
|
|
|
3,876 |
|
Deferred revenue |
|
(810 |
) |
|
|
(454 |
) |
Net cash used in operating activities |
|
(82,158 |
) |
|
|
(45,496 |
) |
|
|
|
|
Cash
flows from investing activities: |
|
|
|
Purchase of property and equipment |
|
(24,957 |
) |
|
|
(17,633 |
) |
Changes in security deposits |
|
(610 |
) |
|
|
(686 |
) |
Net cash used in investing activities |
|
(25,567 |
) |
|
|
(18,319 |
) |
|
|
|
|
Cash
flows from financing activities: |
|
|
|
Proceeds from the exercise of stock options |
|
2,738 |
|
|
|
4,409 |
|
Taxes withheld and paid on employee stock awards |
|
(152 |
) |
|
|
- |
|
Proceeds from issuance of common stock under the employee stock
purchase plan |
|
823 |
|
|
|
- |
|
Proceeds from the exercise of common stock warrants |
|
- |
|
|
|
354 |
|
Repayment of non-recourse promissory note |
|
539 |
|
|
|
- |
|
Payments of deferred offering costs |
|
(744 |
) |
|
|
(2,458 |
) |
Net cash provided by financing activities |
|
3,204 |
|
|
|
2,305 |
|
|
|
|
|
Effect of
foreign exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(2,698 |
) |
|
|
(371 |
) |
Net decrease
in cash, cash equivalents, and restricted cash |
|
(107,219 |
) |
|
|
(61,880 |
) |
Cash, cash
equivalents, and restricted cash—beginning of period |
|
288,576 |
|
|
|
127,251 |
|
Cash, cash
equivalents, and restricted cash—end of period |
$ |
181,357 |
|
|
$ |
65,371 |
|
|
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid for interest |
$ |
63 |
|
|
$ |
97 |
|
Cash paid for taxes |
$ |
1,366 |
|
|
$ |
339 |
|
Noncash investing and financing activities: |
|
|
|
Purchase of property and equipment included in accounts
payable |
$ |
1,299 |
|
|
$ |
603 |
|
Non-cash exercise of common stock warrants |
$ |
35 |
|
|
$ |
- |
|
Stock-based compensation included in capitalized internal-use
software |
$ |
892 |
|
|
$ |
- |
|
Deferred offering costs included in accrued liabilities |
$ |
- |
|
|
$ |
2,120 |
|
Reconciliation of cash, cash equivalents, and restricted
cash: |
|
|
|
Cash and cash equivalents |
$ |
180,727 |
|
|
$ |
65,371 |
|
Restricted cash included in prepaid expenses and other current
assets |
|
630 |
|
|
|
- |
|
Total cash, cash equivalents, and restricted cash |
$ |
181,357 |
|
|
$ |
65,371 |
|
|
|
|
|
Allbirds, Inc.
Reconciliation of GAAP to Non-GAAP Financial
Measures(in thousands, except share, per share
amounts, and percentages)(unaudited)
The following tables present reconciliations of
adjusted financial measures with their most directly comparable
GAAP measures, for each of the periods presented:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net
revenue |
$ |
72,651 |
|
|
$ |
62,711 |
|
|
$ |
213,588 |
|
|
$ |
180,253 |
|
Simplification initiatives: |
|
|
|
|
|
|
|
Inventory liquidation revenue1 |
|
(453 |
) |
|
|
- |
|
|
|
(453 |
) |
|
|
- |
|
Adjusted net
revenue |
$ |
72,198 |
|
|
$ |
62,711 |
|
|
$ |
213,135 |
|
|
$ |
180,253 |
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
32,531 |
|
|
$ |
33,935 |
|
|
$ |
93,325 |
|
|
$ |
97,883 |
|
Simplification initiatives: |
|
|
|
|
|
|
|
Non-recurring costs and revenue related to inventory
optimization2 |
|
1,981 |
|
|
|
- |
|
|
|
13,622 |
|
|
|
- |
|
Adjusted
gross profit |
$ |
34,512 |
|
|
$ |
33,935 |
|
|
$ |
106,947 |
|
|
$ |
97,883 |
|
|
|
|
|
|
|
|
|
Gross
margin |
|
44.8 |
% |
|
|
54.1 |
% |
|
|
43.7 |
% |
|
|
54.3 |
% |
Simplification initiatives: |
|
|
|
|
|
|
|
Non-recurring costs and revenue related to inventory
optimization2 |
|
3.0 |
% |
|
|
0.0 |
% |
|
|
6.5 |
% |
|
|
0.0 |
% |
Adjusted
gross margin |
|
47.8 |
% |
|
|
54.1 |
% |
|
|
50.2 |
% |
|
|
54.3 |
% |
|
|
|
|
|
|
|
|
Selling,
general, and administrative expense |
$ |
45,391 |
|
|
$ |
33,017 |
|
|
$ |
125,853 |
|
|
$ |
85,549 |
|
Simplification initiatives: |
|
|
|
|
|
|
|
Severance and other miscellaneous expenses3 |
|
(931 |
) |
|
|
- |
|
|
|
(931 |
) |
|
|
- |
|
Adjusted
selling, general, and administrative expense |
$ |
44,460 |
|
|
$ |
33,017 |
|
|
$ |
124,922 |
|
|
$ |
85,549 |
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(25,241 |
) |
|
$ |
(13,802 |
) |
|
$ |
(76,489 |
) |
|
$ |
(34,930 |
) |
Simplification initiatives: |
|
|
|
|
|
|
|
Non-recurring costs and revenue related to inventory
optimization2 |
|
1,981 |
|
|
|
- |
|
|
|
13,622 |
|
|
|
- |
|
Severance and other miscellaneous expenses3 |
|
931 |
|
|
|
- |
|
|
|
931 |
|
|
|
- |
|
Income tax effect of adjustments4 |
|
(76 |
) |
|
|
- |
|
|
|
(378 |
) |
|
|
- |
|
Adjusted net
loss |
$ |
(22,405 |
) |
|
$ |
(13,802 |
) |
|
$ |
(62,314 |
) |
|
$ |
(34,930 |
) |
|
|
|
|
|
|
|
|
Adjusted net
loss attributable to common stockholders, basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.64 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders, basic and diluted |
|
149,267,269 |
|
|
|
55,590,320 |
|
|
|
148,481,459 |
|
|
|
54,631,455 |
|
|
|
|
|
|
|
|
|
___________________ |
1 Represents $0.5 million of non-recurring net
revenue from the liquidation of end of life inventory recognized
during the three and nine months ended September 30,
2022. |
|
|
|
|
|
|
|
|
2 Represents $2.4 million and $14.1 million of
non-recurring inventory write-downs recognized during the three and
nine months ended September 30, 2022, respectively, offset by $0.5
million of non-recurring net revenue from the liquidation of end of
life inventory recognized during the three and nine months ended
September 30, 2022 |
|
|
|
|
|
|
|
|
3 Represents selling, general, and administrative
expenses associated with our simplification initiatives, which
relate to $0.7 million of severance and related benefits for
terminated corporate employees, $0.2 million of a cease use
liability associated with one of our United States corporate office
leases, and $0.1 million of third-party consulting and professional
fees recognized during the three and nine months ended September
30, 2022. |
|
|
|
|
|
|
|
|
4 Represents the income tax effects of the
adjustments for the inventory liquidation revenue, inventory
write-downs, and simplification initiatives, using our estimated
annual effective tax rate of 2.60% as of September 30, 2022. We may
adjust our adjusted tax rate as additional information becomes
available or events occur which may materially affect this rate,
including impacts from the global tax environment, significant
changes in our geographic mix, new or amended tax legislation, or
changes in our business outlook |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net loss |
$ |
(25,241 |
) |
|
$ |
(13,802 |
) |
|
$ |
(76,489 |
) |
|
$ |
(34,930 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense, including common stock warrant
expense |
5,793 |
|
|
3,158 |
|
|
14,938 |
|
|
7,687 |
|
Depreciation and amortization expense |
4,132 |
|
|
2,410 |
|
|
11,243 |
|
|
6,704 |
|
Simplification initiatives |
|
|
|
|
|
|
|
|
|
|
|
Non-recurring costs and revenue associated with inventory
optimization |
1,981 |
|
|
- |
|
|
13,623 |
|
|
- |
|
Severance and other miscellaneous expenses |
931 |
|
|
- |
|
|
931 |
|
|
- |
|
Other (income) expense |
(155 |
) |
|
2,039 |
|
|
(393 |
) |
|
8,019 |
|
Interest expense |
35 |
|
|
53 |
|
|
107 |
|
|
141 |
|
Income tax provision. |
(153 |
) |
|
(167 |
) |
|
1,953 |
|
|
298 |
|
Adjusted EBITDA |
$ |
(12,677 |
) |
|
$ |
(6,308 |
) |
|
$ |
(34,087 |
) |
|
$ |
(12,082 |
) |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net revenue |
$ |
72,651 |
|
|
$ |
62,711 |
|
|
$ |
213,588 |
|
|
$ |
180,253 |
|
Adjusted net revenue |
$ |
72,198 |
|
|
$ |
62,711 |
|
|
$ |
213,135 |
|
|
$ |
180,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(25,241 |
) |
|
$ |
(13,802 |
) |
|
$ |
(76,489 |
) |
|
$ |
(34,930 |
) |
Net loss margin |
(34.7 |
)% |
|
(22.0 |
)% |
|
(35.8 |
)% |
|
(19.4 |
)% |
Adjusted net loss |
$ |
(22,405 |
) |
|
$ |
(13,802 |
) |
|
$ |
(62,314 |
) |
|
$ |
(34,930 |
) |
Adjusted net loss margin |
(31.0 |
)% |
|
(22.0 |
)% |
|
(29.2 |
)% |
|
(19.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(12,677 |
) |
|
$ |
(6,308 |
) |
|
$ |
(34,087 |
) |
|
$ |
(12,082 |
) |
Adjusted EBITDA margin |
(17.6 |
)% |
|
(10.1 |
)% |
|
(16.0 |
)% |
|
(6.7 |
)% |
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, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
United
States |
$ |
56,083 |
|
$ |
47,749 |
|
$ |
164,229 |
|
$ |
132,854 |
International |
|
16,568 |
|
|
14,962 |
|
|
49,359 |
|
|
47,399 |
Total net revenue |
$ |
72,651 |
|
$ |
62,711 |
|
$ |
213,588 |
|
$ |
180,253 |
|
|
|
|
|
|
|
|
|
Store Count by Primary Geographical Market |
|
September 30, 2020 |
|
December 31, 2020 |
|
March 31, 2021 |
|
June 30, 2021 |
|
September 30, 2021 |
|
December 31, 2021 |
|
March 31, 2022 |
|
June 30, 2022 |
|
September 30, 2022 |
United
States |
11 |
|
12 |
|
12 |
|
15 |
|
19 |
|
23 |
|
27 |
|
32 |
|
38 |
International1 |
10 |
|
10 |
|
10 |
|
12 |
|
12 |
|
12 |
|
12 |
|
14 |
|
13 |
Total stores |
21 |
|
22 |
|
22 |
|
27 |
|
31 |
|
35 |
|
39 |
|
46 |
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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