Casper Sleep Stock Plunges After Q2 Results, Lower Margins, Weak Outlook

Casper Sleep Inc CSPR reported second-quarter FY21 revenue growth of 37.7% year-on-year, to $151.76 million, marginally ahead of the analyst consensus of $151.28 million.
North America revenue increased 44.6%. North America Direct-to-Consumer revenue increased 31.3% to $99.5 million, while North America Retail Partnership revenue rose 78.9% to $52.2 million.
Gross profit increased 27.1% Y/Y to $72.5 million, while profit margin contracted 400 basis points to 47.8%.
The operating loss widened to $(33.1) million. Adjusted EBITDA loss narrowed to $(6.7) million.
The company held $49.7 million in cash and equivalents as of June 30, 2021.
Loss per share of $(0.81) missed the analyst consensus of $(0.34).
Outlook: Casper Sleep sees Q3 sales of $152 million - $159 million, versus the consensus of $156.01 million.
It expects Q3 Adjusted EBITDA loss of $(12.5) million - $(9.5) million.
FY21 revenue outlook is unchanged at $580 million - $610 million, versus the consensus of $609.35 million.
Casper Sleep expects to achieve Adjusted EBITDA profitability during 2022.
Price action: CSPR shares traded lower by 17.2% at $5.73 on the last check Tuesday.