Allbirds

Allbirds is a listed sustainability-focused footwear and apparel company that crafts its products using a range of regenerative natural materials. A certified B Corporation since December 2016, it has developed a range of proprietary materials, including Trino (created from eucalyptus tree fibers and ZQ merino wool), TrinoXO (a fabric with fiber derived from the discarded shells of marine life), and SweetFoam (sugarcane-based alternative to petroleum-based foam used in footwear manufacturing). As of September 2021, the company’s products were available across 35 countries, including the US, Japan, and China, via its digital platform, which contributed 89% of total sales, and 31 retail stores.

The company’s key products include 1) Wool Runner, a machine-washable wool sneaker, 2) Tree Dasher, a running shoe made from eucalyptus wood pulp and a “SweetFoam” sole 3) Plant Pacer, the company’s first plant-based leather sneaker, 4) an apparel collection, including products made from wood fibers; and 5) “Natural Run Apparel”, an activewear collection made from its “Trino” material.  Allbirds reports that more than 100 companies have inquired about incorporating SweetFoam in their supplyan apparel collection, including products made from wood fibers, chains as of August 2020.  

Key customers and partnerships

In February 2021, Allbirds invested USD 2 million in Natural Fiber Welding (NFW), a producer of textile and leather materials from recycled plants and natural fibers, to incorporate its “Mirum” vegan leather replacement material for its footwear by the end of 2021. The firm stated that it could also use Mirum to manufacture socks, shoes, t-shirts, underwear, sweaters, jackets, and face masks. In September 2022 , the company launched its first plant-based leather sneaker “Plant Pacer” using NFW’s Mirum. 

Funding and financials

Allbirds filed for an initial public offering (IPO) on the Nasdaq in August 2021 and went public in November 2021 under the ticker “BIRD”, reaching a valuation of over USD 4 billion—150% above the USD 1.6 billion valuation reached during its USD 100 million Series E funding round in September 2020. The IPO’s net proceeds are to be allocated to develop new materials and establish a strong and sustainable supply chain. Allbirds also reported that it is focusing on clearly labeling its products to emphasize sustainability and is planning to launch an expanded selection of footwear and apparel by incorporating sustainable inputs such as crab shells and eucalyptus.

Allbirds generated revenue of USD 62.8 million million in Q1 2022 , up 26% year-over-year (YoY). Despite a strong top line, operating losses increased 1.9x YoY to USD 20 million. For FY2022, Allbirds is expecting USD 345 million in net revenue and a USD 21 adjusted EBITDA loss.