Allbirds (BIRD) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 results met top-line expectations, with Q4 net revenue at $55.9M and full-year revenue at $189.8M, reflecting disciplined execution and strategic transformation.

• Major initiatives included cost structure streamlining, SG&A reduction by over $20M, and closure of 20 U.S. stores in 2024, with five more closed post-year-end.

• Transitioned to a distributor model in targeted international regions, impacting revenue and store count, and positioning the business for scalable growth.

• Focused on product innovation, marketing revamp, and enhanced customer experience, with new product launches and a refreshed brand campaign planned for 2025.

• Q4 net loss improved to $25.7M from $56.8M a year ago; full year net loss narrowed to $93.3M from $152.5M.

Financial highlights

• Q4 net revenue was $56M, in line with guidance; full-year sales impacted by $22M from distributor transitions and store closures.

• Q4 gross margin was 31.3%, affected by inventory adjustments, higher international distributor sales, and incremental air freight; full year margin improved to 42.7%.

• Q4 SG&A (excluding stock-based comp and D&A) was $24M, down 24% year-over-year; Q4 SG&A expense was $29.2M (52.2% of revenue).

• Q4 adjusted EBITDA loss was $19.2M, approximately flat year-over-year; full year adjusted EBITDA loss was $70.0M.

• Ended 2024 with $67M in cash and no outstanding revolver borrowings; inventory down 24% year-over-year to $44M.

Outlook and guidance

• 2025 net revenue expected at $175M–$195M, including $18M–$23M negative impact from distributor transitions and store closures.

• Excluding structural changes, net sales projected to grow ~10% at midpoint versus 2024.

• U.S. net revenue guidance: $145M–$160M; international: $30M–$35M.

• Adjusted EBITDA loss expected between $65M–$55M for 2025.

• Gross margin anticipated to improve to mid-40s% for 2025, ramping through the year as new products launch.

• Q1 2025 net revenue guidance: $28M–$33M, down 22% at midpoint year-over-year; adjusted EBITDA loss: $28M–$25M.

• Return to top-line growth expected in Q4 2025 as new product and marketing initiatives take effect.