'Our first quarter results demonstrate our strong start to 2024. Our clear focus on profitability, delivering sales growth and achieving record gross margin of 37% as a public company is attributable to continued execution of our Transformation Pillars of Brand Maximization, Margin Enhancement and Operating Discipline,' said Chief Executive Officer,
First Quarter Results
(All comparisons are versus the first quarter of 2023)
Our Transformation Pillars of Brand Maximization, Margin Enhancement, and Operating Discipline have each contributed meaningfully to our first quarter results.
For the three months ended
2024 2023 Change
(In thousands, except percentages)
Revenue$86,217 $83,388 $2,829
Gross margin 37.0% 24.2% 12.8%
Operating expenses$33,197 $38,860 $(5,663 )
Net loss$(1,403 ) $(18,867) $17,464
Adjusted EBITDA(1)$2,642 $(10,334) $12,976
Revenue increased 3% to
(1) See the reconciliation of adjusted EBITDA, a non-GAAP financial measure, to net loss in the table under 'Use of Non-GAAP Financial Measures' below in this press release.
(2) According to independent third-party tracked channel consumption data. Reflects consumption for diapers, wipes, baby personal care, skin care and cosmetics items for latest 12 weeks ended
Gross margin was 37.0% compared to 24.2% in the first quarter of 2023. Gross margin increased by 1,275 basis points compared to the first quarter of 2023 driven by execution of our Margin Enhancement Transformation Pillar, which included lower transportation costs, price increases, efficient trade spending, and lower product and fulfillment costs.
Operating expenses decreased
Net loss was
Adjusted EBITDA(1) was positive
(1) See the reconciliation of adjusted EBITDA, a non-GAAP financial measure, to net loss in the table under 'Use of Non-GAAP Financial Measures' below in this press release.
Balance Sheet and Cash Flow
The Company ended the first quarter 2024 with
Net cash provided by operating activities was
Reaffirms 2024 Financial Outlook
The Company is reaffirming its financial outlook for the full fiscal year 2024 for revenue and Adjusted EBITDA. For 2024, the Company continues to expect:
Net revenue growth of low-to-mid single digit percentage.
Positive Adjusted EBITDA(1) in the low-single digit to mid-single digit millions range.
We remain confident in our long-term strategy beyond 2024 of 4% to 6% annual revenue growth and continued Adjusted EBITDA margin expansion. Additional information on the Company's strategic plans can be found in its Investor Presentation on the Company's Investor Relations website at http://investors.honest.com.
(1) We do not provide guidance for the most directly comparable GAAP measure, net loss, and similarly cannot provide a reconciliation between our adjusted EBITDA outlook and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net loss, including interest and other (income) expense, net, and the respective reconciliations. These items are not within our control and may vary greatly between periods and could significantly impact our financial results calculated in accordance with GAAP.
Webcast and Conference Call Information
A webcast and conference call to discuss first quarter 2024 results is scheduled for today,
Forward-Looking Statements
This press release and earnings call referencing this press release contain forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. Such statements may address the Company's expectations regarding revenue, profit margin or other future financial performance and liquidity, other performance measures and cost savings, strategic initiatives and future operations or operating results. 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. These forward-looking statements include, but are not limited to, statements concerning our expectations regarding future results of operations and financial condition, including our revenue and adjusted EBITDA outlook for 2024 and long-term financial algorithm; our ability to achieve or sustain profitability; momentum in our business; our ability to execute on, and the continued benefits of, our Transformation Pillars of Brand Maximization, Margin Enhancement, and Operating Discipline; and other business strategies, plans and objectives of management for future operations.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release and the earnings call referencing this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results.
The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled 'Risk Factors' in the Annual Report, on Form 10-K for the year ended
In addition, statements that contain 'we believe' and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this press release and the earnings call referencing this press release relate only to events as of the date on which the statements are made. 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 our forward-looking statements, 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.
About
Condensed Consolidated Statements of Comprehensive Loss: see full results at:
https://investors.honest.com/news-releases/news-release-details/honest-company-reports-first-quarter-2024-results
Investor Contacts:
ebouquard@thehonestcompany.com
Investor Inquiries:
investors@thehonestcompany.com
Media Contact:
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