Allbirds’ Q1 2022 net revenue increased 26% YoY to USD 62.8 million compared to USD 49.6 million in the same period last year. The company attributed this to strong demand in the US, with net revenue in the US reaching USD 48.9 million in the quarter (+35% YoY). International sales increased only 3% YoY due to negative impacts from the Russian conflict with Ukraine, COVID-19 restrictions in China, and the appreciation of the USD against international currencies.

Allbirds’ gross profit for the quarter also improved to reach USD 32.6 million (+26.4% YoY); however, its gross margin shrank marginally to 51.9% from 52% in Q1 2021. Allbirds stated that higher logistics and distribution costs, lower international sales, and unfavorable exchange rates negatively affected its margin, despite the shift to physical retail stores, higher-margin products, and improved pricing.

Despite a strong top line, Allbirds recorded an operating loss of USD 20 million in Q1 2022, 1.9x the loss in Q1 2021. This was mainly due to higher selling, general, and administrative expenses (+65% YoY) from opening four new stores during the quarter as well as operating costs for stores opened since Q1 2021. Adjusted EBITDA for the quarter increased 76.8% YoY to USD 12.2 million.

Allbirds has revised its guidance for FY2022 upward:

• Net revenue: From USD 335 million to USD 345 million

• Gross profit: From USD 170 million to USD 177.5 million (51.1% of revenue)

• Adjusted EBITDA loss: From USD 25 million to USD 21 million

For Q2 2022, Allbirds expects net revenue to grow 10%–16% YoY to USD 75 million–79 million and an adjusted EBITDA loss range of USD 14 million–11 million in Q2 2022.