The Urethane Blog

Casper Quarterly Results

Casper Reports Third Quarter 2020 Results

Mon November 16, 2020 6:30 AM|Business Wire|About: CSPR

COVID-19 and Supply Chain Impacted Third Quarter 2020 Revenue of $123.5 million

Continued Strength in Retail Partnership Channel, up 28% YoY

Gross Margins of 55.5%, up 480 basis points YoY

NEW YORK–(BUSINESS WIRE)– Casper Sleep Inc. (CSPR) (“Casper” or the “Company”) (NYSE: CSPR) today announced financial results for the quarter ended September 30, 2020 (the “third quarter 2020” or “third quarter”).

Third Quarter 2020 Financial Highlights (as compared to the quarter ended September 30, 2019)

  • Revenue decreased 3.3% to $123.5 million;
  • North America revenue increased $2.2 million or 1.8%;
  • European revenue was negligible due to the closure of our European operations in the second quarter of 2020, compared to approximately $6 million in the quarter ended September 30, 2019;
  • Direct-to-Consumer Revenue decreased 11.4% to $89.9 million;
  • Retail Partnership Revenue increased 28.3% to $33.6 million;
  • Gross Profit increased 5.9% to $68.5 million with gross margin of 55.5%, up 480 basis points;
  • Net Loss improved $7.2 million or 31.1% to $15.9 million;
  • Adjusted EBITDA loss improved by $9.3 million or 55% to $7.5 million; and
  • Cash and cash equivalents of $96.1 million at quarter end.

Philip Krim, Chief Executive Officer, comments: “Casper’s third quarter was highly productive but unfortunately we believe the results don’t fully reflect the health and potential of our business. We saw record interest for our products evidenced by record website traffic, continued to drive gross margin expansion and progress towards profitability, and had another sequential quarter of growth; however, our top-line growth was disappointing based on the initial demand signals. Challenges in our supply chain, including industry-wide shortages in textiles and chemicals critical to foam production, led to significant out-of-stock inventory both in our direct-to-consumer and retail partnership channels. Many of our core mattresses were out of stock on our website for weeks at time and we were unable to monetize the full demand from retail partners leading to cancelled orders.

We have made significant progress addressing some of our supply chain challenges. Specifically, we have on-boarded new Tier 1 and Tier 2 suppliers and vendors; we are putting in place redundancies across key supply chain points and implementing improved inventory planning; and we are actively building up our safety stock which will help protect against further disruptions. We believe the worst of our supply chain disruptions are behind us, and we are well-positioned going forward.”

Mr. Krim continued: “We are actively managing the business to best position Casper for the future and are excited about the many opportunities in front of us to enhance shareholder value as we continue to leverage our leading brand and scale our multi-channel distribution. Our organization is focused on long-term, sustainable growth and we believe our expanded distribution, current growing product offering and pipeline, strong brand awareness, refined marketing expertise and healthy balance sheet position us well to achieve our goal of sustainable Adjusted EBITDA profitability starting in mid-2021.”