Allbirds, Inc. reported a significant decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For Q3 2024, net revenue was $42.996 million, down 24.9% from $57.244 million in Q3 2023. The nine-month revenue also decreased by 26.5%, from $182.075 million in 2023 to $133.905 million in 2024. This decline was attributed to a reduction in units sold, the transition to third-party distributors in certain international markets, and retail store closures.

Despite the revenue drop, Allbirds improved its gross margin, which increased to 44.4% in Q3 2024 from 43.5% in Q3 2023, and to 47.5% for the nine months ended September 30, 2024, up from 42.2% in the prior year. This improvement was driven by lower freight, duty, and warehouse costs per unit, as well as a decrease in inventory write-downs.

The company reported a net loss of $21.177 million for Q3 2024, an improvement from a net loss of $31.575 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $67.640 million, compared to $95.679 million in the same period of 2023. The adjusted EBITDA loss also narrowed, reflecting operational improvements.

Allbirds has been implementing a Strategic Transformation Plan since March 2023, focusing on growth, capital efficiency, and profitability. This plan includes optimizing its store fleet, with a total of 14 U.S. store closures in 2024, and transitioning to a distributor model in various international markets. The company has completed all planned new store openings and is evaluating further store closures.

In terms of financial health, as of September 30, 2024, Allbirds had cash and cash equivalents of $78.627 million, down from $130.032 million at the end of 2023. Total assets decreased to $221.914 million from $312.705 million, while total liabilities fell to $94.569 million from $127.376 million. The accumulated deficit increased to $458.839 million from $391.199 million.

Allbirds also executed a reverse stock split effective September 4, 2024, to comply with Nasdaq listing requirements, which had been at risk due to the stock price falling below $1.00. The company regained compliance with Nasdaq's minimum bid price criteria on September 23, 2024.

Overall, Allbirds continues to navigate a challenging market environment while focusing on strategic initiatives aimed at enhancing profitability and operational efficiency.