Purple Innovation sees FY23 revenue $590M-$615M, consensus $589.37M

Sees FY23 adjusted EBITDA $13M-$17M. The company expects its performance to improve as it progresses through the year with sequential improvements each quarter as it benefits from new, higher margin products being launched in the second quarter, the introduction of new, more effective marketing programs aimed at elevating the Purple brand and attracting a higher-end consumer, further development and expansion of its distribution channels, and improved operating efficiencies following last year’s cost and expense reduction actions. In terms of how the year unfolds, the challenging market trends from 2022 have continued into the start of 2023. On top of this, with the upcoming new product launch in May 2023, the Company’s first quarter performance is also being impacted by lower wholesale sales as its retail partners reduce on hand inventories by selling through Purple legacy mattress models without replenishing orders ahead of taking delivery of the new models in the second quarter. As a result, the company currently expects net revenue to be approximately $105M and adjusted EBITDA of approximately ($9.5M).