PRPL - Earnings call transcript Q3 2020

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Operator

Good morning, ladies and gentlemen, and welcome to Purple Innovation Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Brendon Frey of ICR. Please go ahead.

Brendon Frey

Purple quarter joining earnings for you Innovation's XXXX third call. Thank release of Purple's on our copy is website earnings www.purple.com. of A section press available Relations the at Investor will remind statements. certain like are you would this presentation to statements I we make in forward-looking that reflect on judgment and statements business. factors the a today, number as analysis from materially Innovation's may company's results of actual differ Purple current forward-looking only of These and expectations based affecting you forward-looking Accordingly, not statements. reliance place these on should undue

events new net income forward-looking filings statements, the measures, adjusted EBITDA, EBITDA, webcast, risks in whether statements earnings disclaimer future of uncertainties you For associated non-GAAP in We adjusted to include such or forward-looking a as discussion Today’s alter statements our of quarter any as more was today to the financial XXXX and the a and non-GAAP the information, to will references this measures update with Form presentation SEC available thorough included to forward-looking share. or can reconciliation financial do Joe obligation to the A to regarding release, comparable GAAP is that, conference which we our per financial be referenced made third to the the be furnished call which earnings result in and refer that the not with these SEC as release, adjusted undertake website. disclaimer. on over call measures X-K, earnings within our found With most turn of I'll any Megibow. on as otherwise. well

Joe Megibow

Craig today Operating is everyone. Financial With morning Chief on Phillips, John and our our Legg, Chief And call the Officer. Officer; you. good Thank me

at remarks, take strong all-time It be an we'll another brand high. for demand your Following very questions. the to Purple prepared our quarter with was happy

revenue. more history and any Our on record a opportunities to the quarter in company’s teams QX sold as we job in great in deliver mattresses our did manufactured capitalizing than

was coupled our driven shutdowns performance in in DTC gains traffic channel, business, top-line as hours. limited partners and by following store retail our improved resurgence a wholesale Our with experienced strong operating incredibly our QX’s

investments also key initiatives in our compared for include A the financial During few million; many of support gross net as with to operational, XX% loss to executed income even XXX EBITDA points; strategic business. $XX.X highlights increasing key net million, of important XXX% adjusted net $X.X million; $XX.X the margins quarter, strategies. growth QX to adjusted expanding and basis QX, $XX the of in million; we increasing growing XX% long-term million revenue cash made record a we XXXX to of $XXX and

strengthening began and Purple new secured foot credit also facility satisfaction work IP on with of fulfillment available acquired prior manufacturing just center an credit rights to to creating for five-year signed thrilled for million signed assembly J.D. in a the highest more that including year row. mattress in square formation received also an of borrowing second significantly XXX,XXX online I the Power new and customer a IP report We to am Georgia, agreement licensing our structure our a and lowered portfolio, $XXX optimal capital the our $XX we costs. Award million a line senior

carried detail, of off into a sale. DTC XX% prior year the before successful in things performance kicked momentum with quarter. that million over an stronger even strong during our at holiday with creating July month a the $XXX increases lot more Xth Labor Looking August accelerating very of in revenue period increased of We Day period, to each

we channel, performance, In product terms experienced of across growth. DTC our fantastic

Demand increases combination shifted lower selling able heavily and pillows and demand funnel online, seat line, for of strongest The early mattress the we leaning marketing, alongside wider cushions, customers, addressable cost, and of merchandizing larger we while the strategy both Purple and able July and premier average than premium on digital I the sites, traffic reduced premium better hybrid again greater home increase leverage. to same our a in the underscoring still and maintaining new our to bedroom price once healthy growth are order net to our efficiently prospecting. progress now This in rates. significant and upholding in marketing office, online is cast reach to both and posted product increase channels pulled we With on products market, to those more programs XX% we are focus once we At consumer expensive for year-over-year. home were nature this media our approach categories same conversion advancing drove traditional brand. rates non-mattress time, value sheets. heights drove in was marketing the suppose sometimes growth again expense reaching which on meaningful have channel recent quickly new implemented product our the to a demand as mattresses, With capitalize mix For our XXX%. made the moved back by substantially

this marking Turning year to an year. with growth million, compared was of increase revenue a and XXX% to a up with return from ago X% wholesale, $XX QX

evident accounts chose shopping traffic QX the especially July This brick key the existing improved periods. mortar accounts retail launched in in from both brand. Labor the our the witnessed sell-through channel steadily and Our quarter, increasingly sales Day this recently third and consumers during and levels trends retailers at by Xth we was Purple strong rebounded as strongly sale and

to the products intrinsic reduced the for supply capacities. advanced at augmenting QX have Plus, that the assembly capacity. The online up reduced update forward were South. I away also expanded of with Health from the which to a but provide under in Platt, in status performance. in our wholesale and We wholesale and new below our the running call, June a products portion our with addition in pulls our XXXX, last We order mattress wholesale likely challenged in-house foam and facility demand Canada’s with come dissipation XXX the significantly our supply the both announce and expanding a heat Grid our an To John. our premium in body. with is Purple more partnership includes facility some growth over shortages the We an great cover expected the door excited coil production expand grid to further ability Leggett new capacity premium at This mattress. the decision look our bedding our country. and Georgia, our comfort will on discussed all in an and recently of brand that throughout am and and count accounts allocate production provide even X assembly is to available am launch It’s yesterday Max air and we Purple foam of existing new Sleep to with our new relationship leading production doors capacity adds Max that first until the of breathable, new & X bring over along Canadian of along X further levels Purple who are by add we shortages And constraints, and alleviated, international alleviates to at once with is going Purple omni-channel cool as customers with turn of is high of it on touch outstripping Canada, our retailer are supported mattress new made and Country, support I As strong to constrained. that now

John Legg

location. you spoke facility Purple we and of we that been now, machines foundations the eventually the are last South commence at I busy extremely Thanks, build Joe. the are have in close operations. to the Since max mattress house will with in August, six engaged to Right out fully completing preparing this

will on are X, it pleased new X have demand two and max with future being by further later added X XX% XX Max in near-term we be about the We supported expect of lines. days current built first made with additional to slated assembly XXXX. X four meet machines have afterwards. more production Max two our expect by online shortly XX% to increase with to These and better to growth DXC online channel bring is machines parallel wholesale progress allowing we along us roughly in to within and capacity Max and

On for the physical in are activity. side, system, warehouse distribution and we logistics continue prepare management to hardware location and fulfillment and quarter first our solution preparation

pillow used for two for us machines the molding cushion current and categories. that our injection seat will allow additional capacity. will ordered these growing demand This meet to double production better have we Finally,

many create say management that staffing areas large and is We manufacturing as significantly that, new the proceeding the as we’ll on are pleased talent this progress further am back track expand our With I when the critical out very investment that excited into will on U.S. to and be it to infrastructure to I’ll pool jobs. the of team Joe. workforce. completed we build local to making continue turn and planned tapping be

Joe Megibow

early activity organization we business holiday The experienced are is up finish momentum expecting to not April year. with Along Thanks, up the the strong new since gearing in John. the Atlanta, has for season. and strong the a has another let

between our additional wherever on wholesale brand. our our engage already the on omni-channel to strategy focus the Max demand, they that bring imbalance of and continuing facing are demand machines. and meeting we until capacity customer Our both DTC with supporting discussed We’ve is choose we

core the is on challenges foam, shortage which the foam in manufacturers. dealing still mattress. all quarter, of we to we upstream of supply are use Purple chemical the For supply our This fourth facing related constraints with

used and expectations. pursuing which said, where our sourcing recently demand are the should been That limited finished we shortages, only our believe also for aggressively our goods suite currently to option ample and have coil reallocated needs exceed hybrid now of holiday PPE facing our the for product, has inbound fabrics coil capacity are meet specific we mattresses. has our supply We alternative

initiatives of company set share up growth. also XXXX As this market our that the strength continue position to we from key to start teams our navigate will are challenge, executing a

With As rapidly existing and able online, presence which partners activities door leading new our underpenetrated. our John are we adding remain with to and is our resume brick retailers New will X and fulfillment we and where in be Year. other mortar facility on our includes Southeast the of furniture out and begin X Max building to country increasing manufacturing earnest, just bedding in in early and track the expansion the count regions wholesale selectively in strategy outlined,

Purple our Our in messaging of unique order in and the accelerated to to the and of with and Throughout new website as continue the benefits work the is plans that will these this nature premium brand provide. include foundation evolved and support XXXX market end serve as look themes better they of very investment premium creative our products, as hyperelastic attract polymer underway. positioning. innovations real fourth our also more we The advance Grid quarter currently consumers we design our the new to as brand. year, our well the We’ll the of to capture

the a continue to Corner, efforts through paired avoid affordable any to starting kid as more our as larger these As delay with featuring make us our with We evolve to pillows chose Kids’ we new and existing the until platform sheets. mattress believe months. holiday, which up to lighter have strong well unnecessary improvements, we risks the we holiday website, and new XXXX kid and set initial our kid effort, for the rollout do to continue replatforming early

seen historically in kid our the is brand which demand unique for have strong We category.

our just in partnership stretch Purple with have our includes with gift soft beautiful literally branding guide elevated from We Pajamas made Sleepy sheets Jones. released which holiday a

presentation you drive Our to sheets and units. evolution so and two we new lean that paused them continue amazing design. showroom up our value meeting in quarter customers looks pandemic. great can outset are we offers feature The our the brand soft continued at latest a customers’ needs. bundles, with focus We resumption for expansion, into value our showrooms on opened design and order which store of wear and which The stretch fourth of our elevated comfortable, to now the recently marks the continues

second the The Corner, first Virginia. and in new Texas Tysons showroom is in Austin, is

in under have and year. our launch count the showroom additional in This one two end bring Northwest. we’ll We by the Pacific of nine showrooms Midwest to that one QX, will in the the construction

well around starting and pre-pandemic very anticipate All of the our are showrooms performing QX. Year now sales exceeding are New five showrooms similar with opening momentum We new in volume. of

balance as sheet, research we anticipate improved we invest XXXX. financials capabilities many developments programs new our Craig, underway I’ll With that manufacturing exciting new review Finally, gel entirely who more from turn also novel detail. well are in into we now materials are improved our will we continuing new and and new over formulations, to technologies. as investment launching to product have in consumer processes it and healthy ranging in expanding the

Craig Phillips

Joe. Thanks,

As from and quarter Joe outlined, both we another the strong standpoint. had adjusted very profitability revenue

the significant the adjustment outstanding fair by replacement in As you debt non-cash during agreement. of of related we in will increase a value debt hear had later, our previous warrants well as as of loss with associated to price, the the stock our a quarter, driven extinguishment

channel, strong pillows, up DTC in was with prior three for net in year and XXXX, the months along cushions. XX.X%, was The primarily growth to increase by For the seat $XXX.X period. sheets, revenue in revenue demand million, mattresses compared million ended our $XXX.X September higher XX, driven

Our QX, disrupted when partner a our growth severely wholesale COVID-XX business store also difficult following operations. returned to

higher basis comprised This wholesale increased the net with period quarter gross points attributed in wholesale approximately of XX% last quarter, which DTC proportion XX% DTC revenue XXXX million the compared the for the at year. year-over-year, can net third quarter quarter revenue, with of the margin XXX channel of gross the XX% For higher channel. third of margin in grew the increase gross carries compared primarily same revenues net to Gross XXXX, same our XXXX. dollars DTC revenue in to channel $XX.X XX.X% were in approximately versus of XX.X% during during X.X%. million profit revenue quarter margins while be channel year-over-year $XX.X

strategies rates to product increase the our headwinds improvement from revenue improvement price an net positive of to expenses were contributions and year expense XX.X% XXXX. as in basis return a freight showrooms prior expenses, ad advertising our quarter This third brand mix company-owned in with cost revenue from to sales base by associated certain expense came enhanced spend created through net our net in XX% revenue, the new a Additional channel. DTC headcount our rates was an XX.X% marketing gross open on spend overhead addition efficiencies, higher improvement increase XX.X% at in as and percentage offset continue versus margin our of partially partially primarily increased decreased of our to several which last awareness, higher achieved This and modest July compared advertise. as of Marketing with marketing demand on overall incremental in the as a shift an non-mattress quarter lower due channels XXXX marketing by we of models, facility. Operating Atlanta period. aimed XXX leveraging year our increase of well efficiencies in we the in offset and fourth revenue, was in of retail from points driving the in

an increase reported million $XX XXX.X% compared third income for in net $X.X the to the of was quarter compared year an million in the Net income of we quarter of quarter, third loss the XXXX, to operating million ago $X.X million, million. period. For $XX.X of

expense previous The the included expense the debt company’s $X.X $XX associated of on the tax to change the third retirement as XXXX agreement. non-cash debt an and of non-cash quarter associated extinguishment in warrant the million with related the liabilities, of receivable fair $X.X million million loss value agreement with

The $X.X warrant third change non-cash of in XXXX the liability. fair expense value associated of a with quarter million included

debt, warrant third well related which value expenses with expense, current $XX.X Adjusted of of tax rate million income change of Adjusted based $X.X $XX.X adjusted XX.X% quarter count for as net for adjusted share as net compensation share associated expenses, the or on effective excludes receivable fair or of quarter based of to net period been on a million, reflect diluted income legal million. in EBITDA, fully of EBITDA loss period. per share items, liabilities, a sales the tax expenses $XX.X prior and previous count the an $X.XX liability period technology year. primarily comparable and in was of XXXX. adjusted costs, million, CFO versus same compared compared expense impairment, non-cash of COVID-XX-related stock the adjusted fees, $X.X has agreement to severance, to and per year $XX.X the million, XX.X% tax vendor extinguishment estimated $XX.X based Interim EBITDA million was million income the on to for a was diluted the consulting million in and $X.XX diluted fully last Excluding income share these diluted quarter $XX.X

to million to XX, balance $XX.X totaled $XX.X XX, September sheet, Moving XXXX. compared million our net XXXX, at inventories December at

had of XX, XXXX, equivalents and XX, September As XXX.X%. cash to at of and XXXX, an million $XX the increase million, of cash $XX.X December company compared

As we credit secured facility a facility. announced we five-year of a Xrd, revolving loan, credit. of and a September million $XX senior line million on The into term consists $XX entered new $XXX million

the to of term agreement. amount full proceeds our the closing utilize loan credit in the On and previous retire

have We drawn our of line credit. on not

our showrooms. Due uncertainty million includes to Purple line time. which positioned to continue new providing this continuing at company-operated continued of the and from refrain manufacturing business, overall guidance to branding we are products Our basis strong at based the leverage on cash our LIBOR our X% and borrowing lower and on are previous rate. demand company’s with of position the of than September, X.X%, Based our rates floor rate continued a our innovation ratio $XX Atlanta well our end initial XXX initiatives. we economy, points is plus investing new credit, the feel in facility, for of we're our in

about want However, I fourth important quarter. to few do highlight points our a

supply, consumer To as supply shortage reiterate, industry secure and impact to the diligently working of meet it foam is market currently ability to has and possible demand. we impacted in so but order commented, may mattress is shortage experiencing meet current well. which are ability this Purple demand, realized coil a therefore may based our to Joe our it on As conditions, do impact enough to

comparable season. For the seen in the that in higher we margin as to have years, from are expect rates headwinds periods fourth holiday quarter, contribution during traditionally advertising prior see we

continued As expansion their see our we demand where that also experience rates. of to expect wholesale partners margin lower we business, increase in wholesale continue

facility our manufacturing increase to new Additionally, continuing dramatically next will we invest year. are Atlanta our in that capacity

as However, our will continue similar and Also, producing margin till Joe investment. year, see go our the dollars we higher to fully above selling well expense marketing spent from XX%. new website out expenses, to Grantsville target utilized will operational touched channel incremental that at our as not the marketing creative on, facility, our likely the is fourth push of rates spend in however facility quarter partners headwinds this and and for

target the our These to of level. year versus at For expect adjusted now, in experienced fourth or will we year to we’ve previous XXXX. EBITDA that trend the closer three to ago, margins factors below margin be the a quarters cause the quarter

approximately with also public a our the a we X.X X approximately issuance QX, exercisable of a were exercised that X planned of of expect of infrastructure rate for in discussing I count. a company October will public are and growth million year-over-year million. similar A on X showrooms XX, proceeds October share adjusted generating with redeem in warrants warrants X X resulting basis, X a $XX.X want On EBITDA, warrants out million loan XX capacity, of to year investments an outstanding this y exercised basis. we for over in million warrants million quarter spend announced which to discussed. However, Locked revenue Class for moment are we coming balanced which on the XXth strong just in people incremental our momentum and and QX shares to

executed the the XX For must redemption exercise a cashless warrant notice warrants basis. November and agreement, October on be any between of the XX date

outstanding, Class we approximately loan exercises, X.X shares A million issue an of If Class increase shares the This X, date, would X.X approximately prior incremental will we in the November being additional Class million of we all had for comments. the aforementioned Class Considering resulting warrants A closing been million a public have to are there I’ll total shares. November shares on that estimate exercisable still warrants XXXX, October for redemption additional but as redeemable. to now XX, basis, it outstanding of remaining are as important sponsor X an a not to X, As since public million to million all turn warrants also issued. XX.X impact X.X XXXX. Joe and approximately are which the note back million his exercised cashless X.X of XX.X X.X basis A million XX. of are It’s these X on November exercised the A warrants in

Joe Megibow

Craig. Thanks,

track on COVID off year XXXX. operating for much and presented by enhanced challenges finishing of profitability are We growth outstanding an the of despite for constraints and initial capacity under

strategy, Our desirability the the particularly capabilities. digital distribution and growing conditions our highlights advanced awareness performance differentiated these omni-channel and our strengths of of in our products

over work done past has the foundation put on path this months pattern our significantly of and teams twelve our clear company profitable the maintain to have growth. Importantly, a strengthened the

that place. early in us, there positive in remains in demonstrated of health year momentum the economic While still already uncertainty the and we is front believe

and So nearly we for up our well the and business continuing dedication to under the commitment for I shown resulting At our recent to their share regards of time, of up thank believe our employees excellence the positive into pandemic, will work open to consumer is intrinsic circumstances. take to hard we they’ve want from XXXX. questions. all difficult maintaining set relentless call this X,XXX operational shifts

Operator

Griffin from is question Please with James. Instructions] proceed. Bobby Thank you. [Operator Raymond Our first

Bobby Griffin

my Good on and another taking congrats for you Thank quarter. morning, great questions everybody.

Joe Megibow

Bobby. Thanks,

Craig Phillips

Bobby. Thanks,

Bobby Griffin

and think mix about sequential versus XQ another up in was in change The wholesale. about first from the thing mix in just understanding up talked in When XQ modeling I we margin about year. want margin gross to ask gross of you’ve wholesale XQ out the this

there that of for point? use starting a of in pressure. estimates. know where I be to other kind don’t I gross when are we in of change there quarter based keep the in items roughly in kind we wholesale fourth wholesale bps change Or It is that or on XX margin gross like, as should looks mind percentage should every XX it’s margin trying XQ mix, good could our five pinpoint worth So, in

Joe Megibow

Yes, well, did that? you Craig ask

Bobby Griffin

Joe, Yes, Craig you you a that. whoever to stab it’s whoever, wants think, or whoever take at

Joe Megibow

I’ll Sure. take I Craig in. can fill but in, since off, jumped

So, I story. as are just a think QX margin our you trying you need right, gross it’s not

As of have back like you getting we channel more which more call like stated, be. was we where wholesale are which XX% anticipating that toward, normal in wholesale mix always back where our around said, trends, we of in in current is wholesale it continued to is third shift QX business to where being sub-XX% QX

QX the back and expense So, you than think –and just that QX, QX very in XXXX of a to seasonality keep margin prior other pressure Things XXXX. of increased as top the has compared shifting marketplace. more more dollars and in that promotional the quarter. marketing Marketing normal looks are expense in costs. does QX some in are marketing course. different back saw about attractive typically I where QX on look to it’s creates think much that’s quarters. It’s gross is QX and you we higher also as just at think consistent things But to mind QXs our I if other two

as new new out that, we balance we’ve of facility, be the back in couple – and revenue in getting a the is, of mark. healthy of last and research been and well up we back where We’ve other So where expect healthy into out are as into in that are manufacturing sub-XX% cash advertising the and mode. back selling, design building and we investment as we’ve reinvesting to sheet thing got our around ramped built quarters, capabilities. crate more some XX% R&D the to investment and Then our platform said net the investing we’ve site

year more leaning Some a things of look of some attractive. which make which is in is quarters early have which and into growth little prior that deferred the we does catch-up

QX everything is, is is the want seen So it’s about color least to I don’t us, to really key very add some of quarters. that? nothing than different Craig, a we’ve is know normal. that quarter There to surprising if in just and at kind healthy prior you

Craig Phillips

we – say gross the the start is real difference, that to of up I it the think thinking don’t but it and was correctly, cost only difference you to The margin in I’d if shifts your gross will about biggest only the was, on margin question that Atlanta into the one from around more I will level it the be I’d change think from probably say, pressure as more on shifts heavy operating shift ramp margin. in get that operational, put more economics DTC wholesale quarters. prior are

Bobby Griffin

X maybe helpful. just the I on the is sure, to from plan running have machine a then, page just all to capacity make we follow-up here. want And but standpoint, That’s are and the to to up and Okay. same X

will little try the goal machine’s to that based end the after just where the is each the estimate be will Georgia XX us how of should of trying put we on by number what’s mentioned the you would a for that gauge revenue of ninth in then productivity? a that think and machines that guys many estimates we days. then, XXXX, And So be or to I after the facility? days in I XX get am added sense running where because machines our help where and up

Joe Megibow

Yes.

parallel. machines a number in of there we upfront and things and hold can – is are facility itself that doing So, six the we

digging – in pets. pets already to all for So, and contain retrofitting, dealt instance, some ported reinforcing part of up built large and and is six and fairly them holidays, we’ve port for

ourselves parallel. to in to setting be are out up build we So able

we little of at are we more a look this modeling As pace. year, conservative

So, a are little a we faster or say, expecting to committing that. might one to than quarter get accelerate

year. the next way are be operational machines more but it fifth Max online four would toward may of that year for right they a in year, modeling point the the We to the of So that the year. not contributing a the end from have a to part

Bobby Griffin

helpful. I the the back the and appreciate details to Congrats investments on see growth all That’s the quarter Okay. some coming and outlook. of great given

in fourth luck of best the quarter. So,

Joe Megibow

Thank you.

Craig Phillips

much. Thank you so

Operator

Our Thomas with is KeyBanc Please from Capital Brad proceed. question Markets. next

Brad Thomas

get into Joe, on hoping wondering was color Hi, had and and more. morning, I shaping And of could add a just trends seeing quarter John different if dig you congratulations channels XQ. how really great each let great which was a up little performed bit on XQ? then channel me Craig far my thus to the some and is out were to what be in good the you the I a year. through sales

Craig Phillips

Sure.

of Channels, all, channels versus…? thanks joining. wholesale meaning, hey, said sales First you for

Brad Thomas

it for by far Yes, going was starting so how October see sales – exactly How did wholesale. channel. it through and November same and did and you performed month the how

as arms of around quarter? try the we Just and businesses get fourth our the in these trajectory

Craig Phillips

it. Got Yes.

will we mentioned prepared mean, such put also, DTC remain continue on that it very, very I pressure as remarks, our mean, wholesale I healthy. to in ability. QX, So, the In we said as

allocations back into side of had. some supply QX. and of both much Max to supply as continued we’ve going level capacity have we in up we that challenges the on – what for working through constrained. labor confident Had we be got need partners through a some on the are new still of quarter terms and the upstream are healthy just We of that our We getting much the more QX, feeling the machines QX through wholesale

of QX partners. to better we service our many to So, are expect into to reasons wholesale we continue grow able one – is we

terms don’t of mean, going of overnight. change In this into I it’s sort quarter, tailwinds things

we’ve what performance that seem looks Monday, are very is strong of we’ve what more. and be less everyone we had strong balanced prepared tended But heading look that say, thing. into continued The levels exactly it. a is in spread traffic be And out the view Friday, the Cyber is little seem to like had I a a quarter. which demand just the for and is like Black something to exactly did little into I’d we QX demand going customer to good – holiday So, peaks we to to have think see see holiday waiting be more

it in by that fulfillment so and joined However is earlier challenges to partly what far, everyone just we year have seems a driven gone QX in But this on. we’ve networks. promotional with driving through goes, little saw

Brad Thomas

have the Very add you you it’s Plus what the you Purple about a testing when saw States? I premium that helpful, of it guess, more you tremendous could on that of you know belief But models. more And on time? United I follow-up all And if how brand sort new been to you bit continuing and will premium little about architecture to the are expand general, market. Joe. a opportunity you Plus? think over thinking in R&D available it’s add products the new did Purple the and refine could in in and to ahead my talk I be more assortment model

Joe Megibow

very it’s Plus, we do. center And customer a to One Yes. with for new was to Country to is, put with the mattress at one of nearly built a thing the everything performed that in partnership has And that foam it consider things do Canadian Sleep mattresses. we The mattress. Purple Country is Sleep great core premium of the market. well specifically for the

a that put want underneath away, memory that pairing the the Grid was combination. would a in remarks than just of magical we wonderful and a the grid elevated shaping as that The capabilities Purple a and to best of It’s it’s latex foam but a and it’s new prepared sort a that capability much the States. cooling balance you a the was It’s different has has we’ve mentioned that up we more kind novel is some be between just premium So, touch. that that between mattress that And has premium of balance what feels covers, a memory foam. novel found regard, draws phenomenal from that foam a mattress. design. just it both our the cover. a with of I designed hybrid, to of It design latex is found we done again new it technology in which the consideration heat some really In was balance

it key on which features, a research said, in States, mentioned, right product elevated the expansions U.S. designed elevated focused now. no see are got Canada. design. That I we reason it the it down Country it’s right premium But foam more focused core very the product Canada. was much So, as in our a premium design mattress we now Sleep It’s right how and more leaning we is is, much are overall. premium But into there bring more mattress as and I exactly heavily we let’s for the will to programs think, is goes couldn’t in States?

Brad Thomas

you, so helpful. Thank Joe. much, Very

Joe Megibow

care. Thanks. Take

Operator

question is Please Curtis Nagle with America. next of proceed. Bank from Our

Curtis Nagle

Very taking you good. my much very for guys. question Thank

just same somewhere, terms the So, there – moment. next we have many doesn’t do be about above like how into of you I maybe XXXX any guess, year? you doors one XQ had It Should XXXX. a the roughly think of sound in just at around first changes how in expansion quick and kind – that were

Joe Megibow

Sure.

with – of X additional Max will it’s X the of actually, we what get come the XXXX just and of of the we call, were the end At week until online, think although hold built we already some the foremost to retail Country, where also closer We - grows, partners, everything extremely to as less of we that gets we is think announced. and But XXXX earnings we really versus as we is continue XX% own, wholesale kind we somewhere sort as appropriate. and we to with year, just XXXX, which say point, that we much this quarter in said capacity areas with have retailer two-thirds with expansion. to well players have a interest well can leading as into to in lean existing to our maybe that aiming partnership keep launched owned along, as capacity regional been said, are So, done last we us through we first always all as channels over wholesale expect as Sleep both continue continue and Once will do on shy we which are addition I us line carry balance. between we this I going ended that we and digital which it what we doors. out, That penetrated. to

Curtis Nagle

I per you Okay. able really we’re growth that in terms I about of productivity would that of on they then, store think comments how And your own Yes. is should XXXX? And thought boxing? you think were where levels interesting, story, in said we pre-COVID encouraging. your interesting. heating to is of kind Very kind guess, be I which frame own

Joe Megibow

Yes. It’s our given as still a – pause were this something year We put were reasons. obvious we about said, open have aiming early original entire more mean, days. plan that’s aggressive we and pandemic, the plans a we I quarter in five little to for on that

get a mentioned, completely in four Again I five which we we are we Austin This out. Right business is we and Tysons come very, quarter and quarter. about revamped expectation back just originally design pace into as are very it’s back are the opening more. a our it’s now, said, that to are opened how thrilled pleased Corner is to we and showroom with we

economics mattress our story just key we as haven’t and the lapped very are very So, our about. But very, and just results bring as go, good. metros. these brand line we conservative here. specific We’ve I’ll to remains, revising with be in and talked are again on to them. to we learn which profitable life year standard test clear, in reiterate brand been been are economics, and we The some showrooms results. first testing of the The a producing we right lot of are We’ve industry said, really here, economics specialty has retailers sort approach pleased seeing they with trying other

Curtis Nagle

much. very I Thanks appreciate.

Joe Megibow

you. Thank

Operator

Please Nagel question Our is next Brian with Oppenheimer. from proceed.

Brian Nagel

add quarter. Hi, to want good on nice very morning. too my another I congratulations

Craig Phillips

Thank so much. you

Brian Nagel

– category very are as I give then strong refocus fluidity COVID this consumers QX. here starting been? wholesale clearly Or are to good another this So, at giving understand I Either just to talk sales the working category I this some in QX continues, very side vaccine crisis are you commentary any consumers elsewhere. away that the to in have have guidance here, now and your maybe mattress period news. your as the from some the much seeing – But on underlying partners, towards all looking we and does indications sales mean, hopefully question of I and not data this it’s for we on demand in in want back good is you as the environment.

Joe Megibow

to Yes, focused it’s say, – in is be right and demand and which home well, sleep of now, strong I anything, health very appears I’d on think general.

So, I good there some tailwinds is think strong there.

through difficult arbitrage has in something the who to for you that the is if that. certainly, few channels and sufficient the Craig, service and have as that’s demand customers to consumer reach that that And believe quarters think has to optimistic to a we been who bit over into have won last demand able – ability want in leaning add opportunity healthy better. those shifted this sufficient have I growth. done very category But a well we demand we’ve done remain that? with

Craig Phillips

is There still agree. I there. opportunity No.

covered you well. think I it

Brian Nagel

And certain, constraint second question lot about I supply you’ve a is in the have been talking there was, the the components mattresses. say in

components So against more am advantage who are much that backdrop an puts manufactured you others of it outsourcing of what the products? I supply Purple versus a is Is much somewhat in of that’s I their and of guess, looking given of the and constraints so mattress in-house.

Joe Megibow

a my end. sorry. Can am cut That time? out you one say in I little that more

Brian Nagel

obviously, mean, it phrase we I too. Yes,

much the product so versus products? Is the about impact manufactured dynamic mattress and Does dynamic are larger your business, added portion that’s in-house is the that much a backdrop upon against Purple your constraints? but talking is supply were of outsourcing who companies advantage constraints, of what other that supply you of So their had vertically.

Joe Megibow

materials in source able and we and shortages and supply, integrated. manage The uncertain again to is majority can structure have been are - to our nearly which the we IP is that able so. where in ample integrated I is of we’ve isn’t our that we ever-shifting supply to And we’ve Yes. part the any our materials how we part believe constrained and of raw the on opportunities. cost we and are protect vertically deeply materials of manage have ensure the through been through manage being output having can stockpile stuff that need day-by-day environment fantastically We that those we we raw fact of certainly think been to basis. vertically where part our those mean, a industry and

of insulated somewhat sucked around mattresses. But design. being some mattress we were we same that’s expand mattress, we fabrics the overall, even that using that a in That is this our have the supply in said, and So, then quieter mostly some not continue is demand everyone a lean in using by it got has were where we needs. we premium been provide don’t our feature. old out finding are support. our our coil absolutely, terrific PPE that mattress, of there we the similarly such foam coil suddenly there into are and mattress a mattresses even PPE, have and using, we foam a and else ours. the on and to for as edge even components now competitive gone the short using. make had Purple PPE in were encased to manufacture chosen are advantage primarily fabric fabrics it fabrics believe which We the we foam more just in there important in those we weren’t support our was some as, mostly fabrics with that our and even primary fabrics around is opportunities other mean, the sits foam rails been are challenges coils that felt to deeper are I entry-level the ingredients core there coil mattress felt, is It’s foam But

challenge. So recently work that even nothing been we But that’s a to that able been is been through. something haven’t

part and say our very yes, business believe it’s I’d makes much, what of our So of part attractive. we notes

Brian Nagel

again. Congrats you. thank Well,

Joe Megibow

you. Thank

Operator

Our Seth with next Securities. Please question from proceed. is Wedbush Basham

Seth Basham

lot is My that and outlook have. that question a around near-term good morning. Thanks you

there growth your so on perspective understand with be secure are to that percent here sure to in First quarter supply are I that constraints have high upside the similar the just year-over-year, fourth additional could you to third, you do you components, XX-ish making reach able rates, to versus And top-line, visibility the considering? that if perspective?

Joe Megibow

do want in John, Yes. on you to that? jump

John Legg

react are Yes, the Thanks Sure. question. accordingly based for able supply on to we additional capabilities.

and improve, So we’ll plan we quarterly build monthly weekly, our we a position increase and build our build on daily, according accordingly. on And see materials basis. to if react our plan

Seth Basham

it. Got

Okay. And

Joe Megibow

year stockpile that we to we need resources did A buy are And if that. the we to ability have scarce. forward those ago

Seth Basham

you secure then, if so component constraints, see is revenue. component And some potentially you higher this there Sure. could

drive production growth revenue the the a capacity have little XX% more implies? then bit to You

Joe Megibow

Craig?

Craig Phillips

Yes.

I possible. short-term that’s think But again, it’s scenario. a

about than months We the in less left year. are talking two

a there stockpile in bit a So, being and able to material buy little tougher way short-term. inventory, the in that’s advance inventory is raw

Seth Basham

Understood.

similar rate EBITDA fourth that in to the the of expect said so be And one at to it to XXXX? expectations as release relates Craig you expect the to you quarter, second, quarter growth XXX%-ish. point, to fourth similar quarter And your Okay. for press commented you margin you third the the be

should to what tell get case thinking us other, is would about $XX which million we can one million the here? in be $XX different If the and you you one – in just

Craig Phillips

last understood the part that. I of Sorry.

one – the just trying all, more it am it time? am the follow schedule following to you I can So, repeat I

Seth Basham

EBITDA which Your XXXX quarter should about the expectations, fourth double to or basis rate similar thinking margin dollar be on referenced. quarter we fourth year-over-year you

Craig Phillips

said we what on is rate growth Similar basis. EBITDA an

quarter. that quarter is the the growth quarter saw from or comparable we fourth in XQ-to-XQ in rate saw the So, third rate that fourth sorry, in growth – similar we the

similar that the so at, adding additional but that you there – we So, were I in mean, also be a to you that looked capacity. considerations are some – – need need it ballpark, will we be we to outlined are consider but growth rates

of fourth little different as mean, we is quarter. for is there inefficiency third quarter, there. But, quarter. So growth similar should spend third saw from bit rate in said, be what I to Ad the we

Seth Basham

could the question, improved your related the additional EBITDA should during continue in when about last much see growth-related results? quarter about And trajectory to we that see to the incurring these think enough. EBITDA invest going that growth. thinking you in think XXXX? cost period pressure we we investments Will forward, How first about or Fair half of fourth you are in

Joe Megibow

are improved, as that efficiency should efficiency out the always locations and how we producing you and define it’s trying more to facility. we said, We output much to of improve and our existing see Alpine. as start from much. open begin having in And in Grantsville Well we Atlanta

we there the expect there be But fulfillment don’t capabilities. So, or three with or as and machines running has way efficient is full facility to going forward. much as Atlanta no assembly pressure will as be four existing six lines

Seth Basham

very Understood. Thank you much.

Operator

is question Susan next Our from B. proceed. FBR. Anderson Please Riley with

Susan Anderson

little on in about the talk bit job if the I could you wondering markets. international the Nice a more expansion Hi. was quarter.

expand more opportunity into sounds doors now are there? wholesale in be many in you can how other also it Canada, guess, then, to So, I there And countries? like you is

Joe Megibow

to take Thanks that. for joining. Happy Sure. Yes.

online Country, and two showrooms. in with both Canada, a year in in So, are Sleep exclusive arrangement we

Country So, their for for we’ve there. Sleep moment, really presence the arms locked Canada with given incredible

half premium share. the market they’ve On the about side, got

We very really in current that’s But with we our So, opportunity partner them. launch confident feel arrangement Canada. long-term fleet-wide this us that picked did for and the sets up we right there.

as we So me XXX are about doors. that’s in way the - to all now of

Canada. going that in gets us So,

we As part as absolutely, other to strategy. countries, of beyond been stated is talk our about always this

job manufacturing have demand a we one our locally is which our we Given our still there service to lot upside. of here has constraints, been believe

taken cautious of in expansion. terms very approach a So, we’ve

more any our happening really meaningful build we to begin the expansion. until XXXX international see But the we continuing are We out to to beyond. presence expansion expecting and infrastructure don’t of XXXX in will in addition starting we that build process need for Canada

Susan Anderson

follow-up That’s OpEx. just helpful. Great. on then the a And

Is fourth how marketing with investments deleverage we and I in about the higher expect think So, fourth quarter, to quarter. should some we quarter it? should guess, expenses third of additional that from

Joe Megibow

where quarter days marketing marketing have the QX. back was rates a There environment. is wasn’t competitive promotion. Yes. QX you still of a and very Certainly, normal. comparing of you has when QX attractive fully wholesale more didn’t that just has part much are to still more seasonality

way, So, QX. in this yes, be the and QX by every will true likely year comparing to

last So years. two that seasonality that of On And fully just get is to seen we’ve leverage. basis, expecting the we each part year-over-year of are business. again, a the

continue business will think not our and we that. see So improve to exception be top QX an on to we bottom

Susan Anderson

luck Great. Good That’s helpful. next Thanks so quarter. much.

Joe Megibow

you so Thank much.

Operator

is with question Maheshwari UBS. next Our from proceed. Please Atul

Atul Maheshwari

for ask in grew rate I another so point prior XX% world? next in the in to question think company growth taking some so Thanks much revenues for – way, normalize year? you that’s do questions. Is play how was forward, on environment achievable Good Joe, the thoughts morning. going the that’s this provide Purple pandemic. That really XXXX. some at my you normalized can could out post-vaccine that something the is What as revenues hopefully

Joe Megibow

believe exact growth The the – we mean, was We continues what end-consumer QX guidance mattresses wholesale waning not engage. demand happened QX in giving on fundamentally, many can channel Yes. are on on a be or has and been trajectory just our is, limiting in and But over remained So, seen make? on. basis, to have for what specific an any we and the rate growth to factor – partners we not shift. I basis how our either we demand opportunities

players players We to stores support to long able And as product floor. the others that great are love continue That’s why X.X we penetrated lean investing be with million existing build furniture lot of will square able expansion are who we there, out all capacity, would and national there we And of love players. to a have list them. feet who opportunity in regional their a be in. is terrific our this we on additional Similarly, our not up in and put to we to got for way. we’ve Georgia

running. and But up is, And number Soft to good our this continue now Purple for service build job So, to that so. demand. we facility to everything out Continue can get capacity. our do and outside tailwinds, see Atlanta right partners our one our customers of we

Atul Maheshwari

you my that to rank Thank as about? few you you these next that then, Great. look what are manage And you. your have with forward the initiatives years, And working can long-term most potential? as risk do how associated follow-up, simultaneously all which most really the excited Joe, of you of is initiatives? on the So, execution

Joe Megibow

a terrific much Thank question. us gets it So, Long-term, more you. excited.

pillows, example talked which beyond. categories, XXX% for non-mattress we of we now. well both like XXX were as which customer. over of We the build labs about Innovation of founded sleep our and bedroom. which and remarkable nearly now there is potential cushions And portfolio right design in our see with products patent out how put as a capabilities are seat are have lot innovation is an we now beyond is well – and our extend an on our which capacity we advancement up just lot company sleep there And tremendous the untapped – operational how a a name our example of We of innovative into, efforts category our we right a like our patents we lot service to opportunity and includes is in of Purple in our the

given core we product product extended first a product opportunity just play a we spoke expansion as our is company product have, quite or tremendous something U.S. very opportunity, a and given it’s that a marketing about we better tremendous international isn’t opportunities just be premium and domestic as into we brand with are have product on beyond we’ve markets significant. outside the U.S. question, are believe isn’t category basically for growth that we in There the So, we easily play our the can the differentiated expansion, capabilities. is prior there believe well. that been And and little the continue company This play, believe we to

Atul Maheshwari

year. Excellent. luck rest the Good of for the

Joe Megibow

much. so you Thank

Operator

is Please with question next Hamblin Group. Craig-Hallum Our proceed. from Capital Jeremy

Jeremy Hamblin

it think results that you commentary to Congrats But it QX. negative like two looks generate the on just on ask It Part positive back one. think relationship, in getting higher current wholesale I looks like Sleep partner. seen kind looks you a still that a And I of the pretty Country productivity about like But some you’ve the here the strong you might shift sales sales largest about on to on kind that is, per door per questions wholesale I that? based comment had to door here. per recovery for part Can wanted when they business. QX, your was door. steady there. think of

how around So, do about think we expectations the doors? productivity for those

Joe Megibow

not Sleep as how part we the back lot There is not doors as through. are Yes. There is in here all with you into. are is – Also, P&L nuance our to suggesting Country. equal hard exactly this flow same of is because post a

example, QX into got which is, come deferred So, of going that orders QX. of saw into lot things one some had for the a in, we of

which of was burn Some down on inventory of hand.

So some into to on think added QX I this. there is the timing XXX goes QX, in, that quarters All about we doors.

all in wholesale return So saw that we growth to also revenue. – in, the we but saw

doors expansion those on. of the a existing we all of goes with rebound But plus Sleep again, to load-ins in and timing accounting coming growth mix it, occur. Country are to in, some back into for coming doors, on, are So, and that back call seeing we a new some how

produce now, as of and momentum. on pivotal where other see the have that is in the per floor say, door right part per challenge Sleep on typically box Country numbers. average, the track sales – our we and Sleep point price we’ve we just through of mattress floor our as looking launch, with And versus more and got like their full back overall this feel we’ve are as Country, impact digital hit channels our well. most at beds Country like, does got right Sleep selling does good is, points assortment we two their the floor, So, four beds of We any of at really our we as excuse that don’t mattress. on are on well. there, the the just foams or We floor five sale out the stores, new available for have with me, on four the Plus Purple on where then, do and all getting

we So, launched, just yesterday. literally

little think see it’s to early So say, But tremendous is we going what potential. are we a to there there.

Jeremy Hamblin

sounds online is for you give coming XXXX, continues been wholesale you demand. can in making to I year. as Can in a adjustments in mean, wholesale give could you to this into kind what And the XXXX? XXXX, in it. you capacity for X,XXX up you be are and And a where for are we sense kind forward be a of a with sense capacity, these think potentially But, by catching add a look demand reflect doors of I us bit somewhat capacity on Got Okay. position add you’ve quite door to us strong – But potential adding very wholesale a limitations terms on of that? of like it then, follow-up, – like as doors. restrained

Joe Megibow

that you just is the There mentioned right idea in doors doors at sufficient possibility. the get of realm from we’ve I our earlier, X,XXX partners, said as more is than the out Certainly, is as got mean, from demand we there a more Yes. absolutely I partners, existing X,XXX existing – existing there.

existing growth out, sudden it you at doesn’t So, partners capacity it sure shifts, the of or shifts as in see capacity are And when our high are in as demand world. capacity. all for DTC sort the is all against our well if maximum for of is is expansion demand, all we’ve of The plans our happens real that key we I all happen our time there. supplier just to machines, running of the healthy opportunity good a lots seeing unexpected is, building balancing doors, mean, making tolerance, baseline time, we which things part capacity. predictable just sure, in in there part got allow being and

we tolerances So, to to allow capacity part planned. both is into to plans a for equipment of maintenance as can lines, do well surplus additional as we as what’s additional capacity need build more flex in beyond little and where actually overall normally our our

ability out output and expecting average a less because the slightly machine, but productivity operating because into So, we in We’ve just we’ve to moment that’s time. we not isn’t we at surplus modeling long-term. the lean expansion, can certain been – getting got protect given for of a on we in as healthy to way are amount that are have not appropriately demand any our per support and the can, just

Jeremy Hamblin

taking Thanks guys. wishes questions the for for Best you.

Joe Megibow

you. Thank

Operator

And our Matt with from ROTH Capital Partners. Please is final Koranda question proceed.

Matt Koranda

into quarter want maybe sort and fourth Hey in. have just different Yes. squeezing here. a guys. did just Thanks the for to been But me for angle the asked of attack time of and it Lot dig answered. questions more I guidance one from

to to imply profile could leverage provided it low like the wondering right to XXs it or of that just versus that level. on trying include would way sort do sales and that? comment north other margin I revenue I XX% million. guidance just guys you if of gross Even XQ, number think the get the margin the with items am you million right both and in sort flat of basis Can like $XX of just marketing the and million be of keep gross So get if is sounds that marketing, to about I $XXX seems of sales, and margins around expense $XX on OpEx to below of somewhere you to XXX there around guys EBITDA points am sequentially.

Joe Megibow

on is of basically basis. right, we rate for by are a start Yes. given nudge, more same QX. growth me which a directional giving not It’s We’ve saying – guidance let formal the

see year-over-year a to both see and basis leverage continue a business rates. and We continue we growth healthy on to here consistent

The in? make to completed that. want sure So, jump I are to you I we – do on just Craig, perhaps want –

Craig Phillips

Yes.

couple this. is ways look So, to a of there at

of way at and the there growth in components. it be but a not growth that look promotional are in growth what rate is a volume third as there a factors guidance, see is. also Look to very quarter. we but we are giving do is in quarter. expect more similar that those considering in are quarter, ad it’s the we expect the And start saw going quarter So, more channel we to It’s in as, is, fourth to at again, fourth – to quarter and expensive we lot what trying to also

less So, make us it fulfill the cost same more to distribute going the and product it’s to to or not going we any and way. are

is higher margin to of but So, to the it’s which a pressure, marketing facility, that pressure from the the we extraordinary. pressure going come advertising putting spend the there be And of the as are gross that see brand. ad to and to going some is Atlanta about be margin investment and lot not on fact from we talked investment going side, then, into we some in are gross going

And growth in to shift modeling mix that, are and we gross some are there. channel Atlanta for will going the be from be your spend There and in you in from be takes. margin purposes and and headwinds advertising. are So, ad puts to going understand help marketing trying the is to there a there

understand that can best the those. to as way that want are those was you we components So, But you building feel give some least at to we are indication. the that help

Joe Megibow

DTC. to or we enhanced this it third, to quarter, shift at close there. this close getting And meaningful talking margin saw into from shift COVID channel mean, back of the I it the is XX%, and bps dramatic so right to you a of shift And happened on going away are was wholesale and profitability here. as Yes. XXX the

remains We we’ve back a expecting go along, seeing are been and normal as we business. more to saying to back normal things which healthy now, will that very are get things

Matt Koranda

cost gross and understood, we that then, directionally? mix shift, maybe which us for And and to the way the wholesale one the gross margin just, there, Atlanta apart That’s are would the if deleverage helpful versus is, I think be margin pressure the in that from we maybe maybe break up that Okay. seeing that is from help ramp guys. understand

Joe Megibow

then, the how Atlanta, will And much again, the Atlanta. significant be in on off And amount are to channel certainly third don’t from margin pressure broken that mix announced it range. is. it and what little than they in are reservation They the we is gross a haven’t publicly a of haven’t the from within quarter. I shifts. was down referred on it we I completely call We where But pressure on earlier the the more think are coming

Matt Koranda

Okay.

Craig Phillips

Again, it’s there. out a significant expense

release, With of a $XX getting Georgia labor full-time of into OpEx obviously, is part around of the But, start-up now the million and that press of this the building is that cost that that’s and it’s some just we’ve lot rolls there release there CapEx. was of got investment, going. just out out

Matt Koranda

Okay.

be we in sounded front. on that was go they relatively XQ elevated range. the XXXX. that wanted quickly real of sales headed like reason last think one to Any levels to were just back would and said I clear, marketing revenue it of the into in I last it Just you sort of we the XX% year saw QX,

would we supply gas understand why dynamic. us on on if maybe, we the stepping that Just constrained? help then, And be potentially marketing are

Joe Megibow

advertising Well, just I that wish the could there we off implication turn and in. sales were true comes just

most CFOs every ask any marketer think, I that quarter. question to

We continue for to mine need share. fight to

we mattress. set. is is a seven are people are consideration category, as We given of means known I by majority are mean, we years. category come are every buying average suggesting young no a that ten that this that, brand into people mean, our I the commonly a revenue And – the brand. is to we This a on

have and them young never entering us. So, brand, of the new every heard market of as many there year a is people

that’s takes and the that? And do that quarter-over-quarter that’s dollars top seasonal. then are to premium we more to to less that’s So, There marketing leverage. as getting going and market more back every than get to to noise, quarter, attractive The we out rates marketing to quarters, there it the advertising end. our are have but in over we we it on which more fight more expensive two fight phenomenal. had never that, again very of were just out expect last and day the educated consumers good to just as product marketing increases environments is of Last see QX. offerings what is, takes marketing and pulled is reality it’s who we still more what year-over-year been But – costs, normal do

last So, leverage as you look fully last year. at QX year, over we anticipate

Matt Koranda

Great. Very helpful, Joe. Thanks guys.

Joe Megibow

Sure.

Operator

We have reached session. like back the and remarks. the turn would to it of I end answer to Joe closing question for

Joe Megibow

executing team much. our very proud something so Thank keep ability you built We’ve very a and and is growth whole to effective foundation successfully is our maintaining of.

have satisfied figure able having since to also how a XXX start-up to The customer began. pandemic to out from being a our thrilled to am to keeps environment. domestically that a going figure becoming had shift continue to but in mainstream the invest not how we’ve challenging hired employees of have been outpouring very I operate had to manufacturer, us in day. every over feedback people We out also

our very as partners, customers out, Be we all regardless equipped Looking are our is forward, safe we innovate as healthy and uncertainty this our share. we remain sleep employees, and well and and very of continue well. take how stay of well plays believe core business optimistic. healthy. to To We to believe

Operator

Thank you. This today's conference. conclude does

You may your for at thank participation. this time you disconnect lines and your

Purple Innovation (PRPL) 11 Nov 202020 Q3 Earnings call transcript