Purple Innovation Reports 3rd Quarter 2022 Results.

LEHI, Utah: Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known for creating the "World's First No Pressure Mattress," today announced results for the third quarter ended September 30, 2022.

Third Quarter Financial Summary (Comparisons versus Third Quarter 2021 and Second Quarter 2022)1

Net revenue was $143.3 million, a decrease of 16.1% compared to 3Q21 and relatively flat compared to 2Q22.

Wholesale revenue increased 1.3% compared to 3Q21 and decreased 6.1% compared to 2Q22.

Direct-to-Consumer (DTC) revenue decreased 25.0% compared to 3Q21 while advertising spend decreased 56.8% compared to 3Q21.

Gross margin increased 570 basis points year-over-year to 41.5% from 35.8% in 3Q21 and increased 760 basis points compared with 33.9% in 2Q22.

Operating expenses as a percent of net revenue were 40.6% compared to 39.6% in 3Q21 and 42.3% in 2Q22.

Operating income inclusive of $3.4 million in one-time expenses related to the Intellibed acquisition was $1.3 million compared to an operating loss of $(6.6) million in 3Q21 and $(12.1) million in 2Q22.

Net income was $2.3 million as compared to $2.2 million in 3Q21 and a net loss of $(8.3) million in 2Q22.

Adjusted net income was $2.8 million, or $0.03 per diluted share as compared to adjusted net loss of $(4.9) million, or $(0.07) per diluted share in 3Q21 and adjusted net loss of $(8.8) million or $(0.11) per diluted share in 2Q22.

EBITDA was $5.9 million compared to $2.4 million in 3Q21 and $(8.0) million in 2Q22.

Adjusted EBITDA was $12.1 million compared to $0.6 million in 3Q21 and $(0.3) million in 2Q22.

Cash and cash equivalents, including restricted cash, were $59.1 million at September 30, 2022.

"I am pleased with the significant improvement in profitability we delivered on both a year-over-year and quarter-over-quarter basis in a very difficult environment," said Chief Executive Officer Rob DeMartini. "Execution of our manufacturing and supply chain efficiency initiatives, along with earlier actions to right size headcount and align marketing spend with the current demand environment fueled a meaningful increase in our third quarter Adjusted EBITDA. While industry conditions remain challenging due to high inflation and a shift in consumer spending away from home related categories, we are optimistic that the work we are doing around product innovation and channel development will translate into sustainable market share gains. This includes our recent...