Allbirds, Inc. (BIRD.US) has issued an update to its financial guidance ahead of its first-quarter earnings report. The company anticipates first-quarter net revenue of $22.3 million, a decrease from the $47.68 million reported in the previous quarter. It expects an adjusted EBITDA of $16.1 million and a net loss for the quarter of approximately $19.6 million, with a potential variance of $3 million. The official first-quarter results are scheduled for release within the first two weeks of May.
Last week, the stock price of Allbirds, once famous as the "Silicon Valley darling" for shoes, experienced a significant surge following its announcement of a strategic shift to become an AI infrastructure company. The former footwear retailer stated, "The rise in AI research and application has created an unprecedented structural demand for specialized, high-performance computing, which the current market is struggling to meet." This announcement came just days after Allbirds sold its footwear technology intellectual property for $39 million.
The origins of Allbirds trace back to New Zealand in 2007, with the concept later developed by former soccer player Tim Brown into a shoe made from wool. In 2015, Brown partnered with bioengineer Joey Zwillinger, and the company launched its signature "Wool Runner" product in 2016, utilizing a direct-to-consumer (DTC) model focused on simplicity and sustainability. The brand grew rapidly by capitalizing on Silicon Valley's affinity for minimalist and eco-friendly products, eventually expanding into retail and experimenting with new materials like eucalyptus fiber.
Allbirds went public in November 2021, but its stock price has declined consistently over the past four years amid a pattern of quarterly losses. Following a 2.0% gain on Monday, Allbirds shares rose an additional 3.5% in Tuesday's pre-market trading. Although the stock remains well below its peak of $24.31 reached in 2022, its price has more than doubled since the AI strategy was announced. According to the latest data from Nasdaq, short interest in Allbirds accounts for 17% of its total float.