Purple released its Q4 and 2020 sales results, and they made it rain.
Here’s the skinny:
Purple’s 2020 net revenue increased 51.4% to $648.5 million, and its direct-to-consumer (DTC) revenue blew up 83% (whoa!).
Couple that with Purple’s fourth-quarter 2020 net revenue—which was up nearly 40%, and driven by their direct-to-consumer (DTC) business, which saw a massive 57% increase—and it’s clear that Purple is doing something right.
With that booming business, DTC revenues made up about 72% of net revenue for the quarter, compared with approximately 64% in the same quarter last year.
Net income for 2020 was $10.9 million, compared to a net loss of $12.4 million the year prior, and in the fourth quarter, Purple’s net loss was just $2.1 million.
All of that is pretty impressive, right?
Well, yes and no. While these are great numbers, they lag the company’s earnings estimates. Purple is owned by Zack’s Consumer Products, and Purple missed its earnings estimate by 11.46%. For perspective, Purple launched with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.45 per share a year ago.
What does all of this mean for Purple? Nothing yet. But it will mean they’ll have to continue at the pace they’re at while upping their game in the future. We’ll keep staring at the sky, looking out for purple rain, and keep you updated.
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