On March 24, Honest Co. Inc. (HNST) reported its financial results for Q4 and fiscal 2021 along with an outlook for 2022. Consequently, the stock nosedived in the after-hours session on Thursday.
It seems investors were anticipating good things from the upcoming earnings as the stock traded in the green during regular trading. In intraday trading, the stock moved between a range of $5.85 to $6.15. HNST closed the session at a price of $6.04 per share with a gain of 1.34%. The volume of the share exchanged during the session remained above the average at 2.92 million. Following the results announcement, the stock took a hit in the after-hours as it plunged down by a huge 20.36%. Hence, HNST reached a value of $4.81 in the after-hours, well below its previous 52-week low of $5.01. Thus, the after-hours session reported a new low of the stock on a volume of 1.45 million shares.
The online non-toxic natural baby products provider, Honest Co. Inc. has a market capitalization of $542.53 million. Founded in 2011, the company has 91.03 million shares outstanding in the market. Currently, HNST stands on a year-to-date loss of 25.34%.
HNST’s 2021 Results
Q4 2021
For Q4 2021, the company reported revenue of $80.4 million with an increase of 3% YOY.
Moreover, HNST had a net loss of $9.0 million and adjusted EBITDA of $3.9 million in Q4 2021.
The gross margin was 30.0% in Q4 2021, against 33.6% in the same quarter of 2020.
At the end of the quarter, the company had cash, cash equivalents, and short-term investments of $93.2 million.
Fiscal 2021
For fiscal 2021, the revenue increased by 6% YOY while the net loss was $14.5 million.
Furthermore, the company had adjusted EBITDA loss of $3.5 million in fiscal 2021.
Additionally, the gross margin was 34.3% in 2021.
2022 Outlook
The company expects flat revenue for fiscal 2022 compared to 2021 with an adjusted EBITDA loss of $5-$10 million. The adjusted EBITDA includes an expected $(10) million for Q1 2022 while the Q1 revenue is expected to decline by 15% approx.
HNST’s Company News
On January 4, the company announced the appointment of Steve Austenfeld as the Vice President, Investor Relations. Mr. Austenfeld joined the company with experience of over three decades in global investor relations engagement, financial planning, and IR functions growth. Previously, he served at Gap Inc. as Head of Investor Relations.
