Allbirds (BIRD) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue declined 26.8% year-over-year to $51.6 million, within guidance, with net loss narrowing to $19.1 million from $28.9 million a year ago.

• Gross margin rose to 50.5%, up 770 basis points year-over-year, driven by lower freight and duty costs and reduced inventory write-downs.

• Adjusted EBITDA loss improved to $13.7 million from $18.3 million in Q2 2023, reflecting cost reductions and above guidance.

• Strategic transformation included 13-14 U.S. store closures and international distributor transitions, supporting cost savings and future profitability.

• Cash and equivalents totaled $87.2 million at quarter end, with no outstanding debt.

Financial highlights

• Q2 2024 net revenue: $51.6 million (down 26.8% year-over-year); six months: $90.9 million (down 27.2%).

• Net loss Q2 2024: $19.1 million (improved from $28.9 million); six months: $46.5 million (improved from $64.1 million).

• Gross margin Q2 2024: 50.5% (up from 42.8%); six months: 49.0% (up from 41.6%).

• Adjusted EBITDA loss Q2 2024: $13.7 million (improved from $18.3 million); six months: $34.6 million (improved from $39.9 million).

• SG&A (excluding stock-based comp and D&A) was $28 million, down 22% year-over-year; operating expenses fell 22.6%.

Outlook and guidance

• Full-year 2024 net revenue expected between $190 million and $210 million.

• Gross margin guidance raised to 43%-46% (from 42%-45%).

• Adjusted EBITDA loss expected between $75 million and $63 million, improved from prior guidance.

• Q3 net revenue expected at $40-$43 million; Q3 adjusted EBITDA loss at $19-$16 million.

• Company expects overall sales to decline in 2024 due to lower direct business sales, planned U.S. store closures, and international distributor transitions.