Purple Innovation, Inc. ( (PRPL) ) has released its Q3 earnings. Here is a breakdown of the information Purple Innovation, Inc. presented to its investors.
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Purple Innovation, Inc., a company specializing in comfort innovation, is renowned for its No Pressure™ Mattress and operates in the premium mattress industry. The company focuses on engineering products that enhance sleep quality with its proprietary GelFlex Grid technology.
In the third quarter of 2024, Purple Innovation experienced a decline in net revenue by 15.3% to $118.6 million, primarily due to decreased demand for home-related products and reduced advertising spend. Despite these challenges, the company reported a significant improvement in its adjusted EBITDA, narrowing the loss to $6.4 million from $16.3 million the previous year, and an increase in adjusted gross margin to 40.5%.
Key financial metrics highlighted include a decrease in gross margin to 29.7% due to restructuring charges, but with improved production efficiencies. Operating expenses were slightly up at $82 million, driven by restructuring-related charges. However, when adjusted, operating expenses showed a decrease by $10.9 million. The net loss for the quarter was reported at $39.2 million, with an adjusted net loss of $8.4 million, showing improvement from the previous year.
Looking ahead, Purple Innovation is focusing on its restructuring plan, which is on track to deliver significant cost savings. The company anticipates positive cash flow and adjusted EBITDA in 2025, aligning with its Path to Premium Sleep strategy to provide long-term value and capitalize on future market improvements.
