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Investment Opportunities

Allbirds IPO: Sustainable Footwear Company Files to Go Public on Nasdaq

An Allbirds IPO is coming to the market soon. The environmentally friendly shoe company filed with the SEC on August 31.

Should you invest in BIRD stock? Here are the latest details…

Allbirds IPO: About the Business

Allbirds IPO

Allbirds is a San Francisco-based company founded in 2015. It’s a global lifestyle brand that makes footwear using naturally derived materials. The company uses resources like wool, trees, crab shells, eucalyptus and sugarcane.

The company behind BIRD stock started with three core beliefs…

  1. These consumers recognize that climate change is an existential threat to the human race.
  2. These consumers connect their purchase decisions with their impact on the planet, demanding more from businesses.
  3. These consumers do not want to compromise between looking good, feeling good and doing good.

Allbirds’ footwear has a 30% lower carbon footprint than a regular pair of trainers according to its S-1 filing. In addition, the global lifestyle brand claims its supply chain has been carbon neutral since 2019.

Allbirds have been coined the “world’s most comfortable shoe.” But more recently, the company extended its offerings to clothing. The company has expanded into t-shirts, sweaters, jackets and other clothing…

Our expertise with materials allows us to expand in basics and functional casual apparel, and has significant application to natural performance apparel, which we believe will be a complementary offering to our newly established credibility in performance footwear.

The company only has a slim retail offering. Its presence is mostly online with around 85% of its net revenue through its digital channel. The company has put efforts into physical retail in recent years. But the pandemic and mandated stay-at-home orders disrupted company growth.

Allbirds Growth Disrupted by COVID-19

While Allbirds’ sales are small compared with the athletic industry giants, the company has big ambitions. New stores are expected to propel the company’s expansion. Allbirds also hopes to grow by appealing to a new generation of consumers who are concerned about climate change and are shifting their shopping habits accordingly.

In Allbirds IPO filing, the company noted that its stores were disrupted by the effects of the pandemic. As of June 2021, the company has 27 stores across the globe. The company expects to grow with the increase of fleet operations…

With strong pre-COVID-19 unit economics, our store operations have historically been capital efficient and provided strong investment returns. We are in the early phase of a ramp towards hundreds of potential locations in the future, with strong unit economics.

Furthermore, as our store fleet expands, we expect our growth to accelerate, as compared to 2020, through more efficient customer acquisition, while also receiving the benefit of increasing digital traffic as more people learn about our brand through our stores. Based on our stores’ pre-COVID-19 performance, we believe our new stores will also be highly profitable, have attractive payback periods, serve as good capital investments, and be positioned well to take advantage of physical retail’s recovery from the pandemic.

Allbirds’ plans to ramp up its stores and this positions the company for growth in the coming years. But is the company financially equipped to open hundreds of stores? Let’s look at Allbirds’ finances…

Allbirds IPO: Financial Information

Detailed financial information is in the Allbirds IPO prospectus, allowing you to gain more insight into the company’s finances. If you’re in the market for BIRD stock, let’s look at the details.

Allbirds highlights some key information for investors. The company’s statement of operations and balance sheet data are summarized as follows…

Net Revenue: The company recorded an increase in net revenue. Allbirds recorded $193.7 million in net revenue for the 2019 fiscal year. In 2020, Allbirds reported over $219.3 million for the year.

Gross Profit: Allbirds has recorded gross profit growth. The company recorded a gross profit of $98.8 million for the 2019 year. In 2020, the Allbirds recorded over $112.7 million in gross profit for the year.

Net Income (Loss): Allbirds has reported net losses since inception. For the year 2019, the company recorded a net loss of over $14.5 million. But for the year 2020, the company’s net losses increased to almost $26.9 million. In the S-1 filing, the company warned that it expects losses to continue…

We expect to continue to incur significant losses in the future. We will need to generate and sustain increased revenue levels in future periods to achieve profitability, and even if we achieve profitability, we may not be able to maintain or increase our level of profitability.

Cash: Allbirds’ cash flow continues to increase. The company recorded $74.3 million in cash for the 2019 fiscal year and $126.6 million for the 2020 year. In a year, the company’s cash grew about 70%.

Total Assets and Liabilities: Allbirds’ total assets and total liabilities have grown. As of December 31, 2019, the company reported $154.6 million in total assets and $61.4 million in total liabilities. As of December 2020, Amplitude has over $244 million in total assets and $65.5 million in total liabilities.

Allbirds raised $25 million through a funding round in January 2020  that gave the company a $1.7 billion valuation. Let’s take a look at the filing details for the Allbirds IPO…

Allbirds IPO Filing Worth Estimated $200 Million

The company filed for an Allbirds IPO on August 31. Allbirds has not set its terms for the offering. We’ll release more information about the listing once it becomes public. Check out this step-by-step guide to going public to learn more about the IPO process.

Allbirds plans to list its common stock on the Nasdaq exchange under the ticker symbol BIRD. The offering is worth an estimated $200 million.

The date for Allbirds’ IPO isn’t publically available. But an IPO would launch the company into a hot IPO market. Freshworks and Discord are among some of the recent popular companies hitting the stock exchanges.

As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. But if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.

If you’re looking for the latest investment opportunities, consider signing up for Liberty Through Wealth. This free e-letter is full of market insights from leading experts. You’ll hear from bestselling author and investment expert Alexander Green. It’s one of the easiest ways to stay on top of market news out there. All you need to do is enter your email address in the box below to get started.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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