• Q4 Net Revenue: $56 million.
• Full Year Revenue Impact: $22 million decrease due to international distributor transitions and retail store closures.
• Gross Margin: 31.3% for Q4.
• SG&A Expenses: $24 million in Q4, down 24% year-over-year.
• Q4 Marketing Expense: $12 million, 22% of net revenue, down 17% year-over-year.
• Q4 Adjusted EBITDA: Loss of $19 million.
• Cash and Cash Equivalents: $67 million.
• Inventory: $44 million, down 24% year-over-year.
• Full Year 2025 Revenue Guidance: $175 million to $195 million.
• Full Year 2025 Adjusted EBITDA Loss Guidance: $65 million to $55 million.
• Q1 2025 Revenue Guidance: $28 million to $33 million.
• Q1 2025 Adjusted EBITDA Loss Guidance: $28 million to $25 million.

• Warning! GuruFocus has detected 5 Warning Signs with BIRD.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Allbirds Inc (NASDAQ:BIRD) reported fourth-quarter results that met expectations on both the top and bottom lines.
• The company successfully reduced its SG&A expenses by over $20 million in 2024, demonstrating effective cost management.
• Allbirds Inc (NASDAQ:BIRD) transitioned to a distributor model in targeted international regions, setting up for profitable, scalable growth.
• The company plans to launch a fresh lineup of core products in fall 2025, including an updated runner and a new court-inspired shoe.
• Allbirds Inc (NASDAQ:BIRD) is implementing a new marketing strategy, including a brand campaign with high-profile collaborations, to increase brand awareness and engagement.

Negative Points

• Allbirds Inc (NASDAQ:BIRD) experienced a decline in Q4 sales due to international distributor transitions and retail store closures.
• The company anticipates a challenging macroeconomic environment, which is pressuring consumer behavior and impacting sales.
• Gross margin was impacted by inventory adjustments, higher airfreight costs, and a higher mix of lower-margin international distributor sales.
• The company expects a significant adjusted EBITDA loss for 2025, ranging from $65 million to $55 million.
• Allbirds Inc (NASDAQ:BIRD) is facing a negative impact on net revenue due to structural changes, including distributor transitions and store closures, estimated at $18 million to $23 million.

Q & A Highlights

Q: Hi, could you elaborate on the factors that give you confidence in returning to growth in Q4, and how the macro backdrop is affecting your business? A: Hi, Janine. The confidence comes from the cumulative work we've done to rebuild our business framework, including our product engine and marketing strategies. We've started to see positive results from our upper funnel marketing efforts. Regarding the macro backdrop, we are observing changes in consumer behavior, which is reflected in our Q1 guidance. However, we remain confident that things will stabilize, allowing us to react accordingly.

Q: What are you monitoring closely in the first half to confirm the back half inflection and return to growth in Q4? A: We are focusing on driving traffic, as our business fundamentals like margin and conversion are strong. Key performance indicators include predictive lifetime value of customers and ensuring high-value customers make repeat purchases at full price. These metrics are crucial for building a profitable long-term business.

Q: What's different in Q4 that enables growth compared to Q3, given that product launches start in Q3? A: The full product line will be available in Q4, supported by our initiatives in product, marketing, and consumer experience. While Q3 will see an improvement in trends, Q4 will benefit from the full impact of our new product collections and marketing efforts. Structural changes like store closures and international transitions will also impact Q3.

Q: How are you addressing the challenging macroeconomic environment in your guidance? A: The inconsistency in consumer behavior has been factored into our Q1 guidance. We are observing changes in consumer traffic, but our upper funnel marketing efforts are helping to offset some of these challenges. We remain confident in our strategies and expect stabilization in the coming months.

Q: Can you provide more details on the expected impact of international transitions and store closures on your revenue? A: We anticipate a top-line impact of $18 million to $23 million from international transitions and store closures. Excluding these impacts, we expect to grow approximately 10% year-over-year at the midpoint of our guidance. The structural changes will have a spread impact across Q1 to Q3, with less impact in Q4.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.