ALPINE, Utah– Purple Innovation, a comfort technology company in the bedding industry, posted a fiscal net revenue gain of $124.3 million for the fourth quarter ending on Dec. 31, 2019, which is a 58.3% increase over the $78.5 million revenue gain in the prior-year fourth quarter.

The company reported a net loss of $12.7 million compared with a net loss of $5.4 million in the fourth quarter of 2018. The fourth quarter included a $13.4 million non-cash loss associated with the change in fair value of warrant liabilities.

Purple’s operating income was $2.8 million for the current quarter compared with an operating loss of $5.2 million for the prior-year fourth quarter. Adjusted operating income was $3.9 million compared with an adjusted operating loss of negative $4.3 million in the fourth quarter of 2018.

“We continued to experience robust growth in the fourth quarter highlighted by an acceleration in direct-to-consumer sales,” said Joe Megibow, Purple Innovation CEO. “It was a very successful holiday season driven by effecting marketing and promotions. … I am confident we are well-positioned to build on our recent accomplishments.”

For the full year, net revenue increased to $428.4 million compared with $285.5 million in 2018 – an increase of 49.9%. The company said the increased revenue was primarily due to a surge in wholesale revenue driven by an increase of more than 800 stores as compared with the same period in 2018 as well as an increase in direct-to-consumer revenue including contributions from the retail outlet and showrooms opening in the second half of the year.

Operating income increased to a gain of $16.2 million compared with an operating loss of $16.9 million, and the company posted a net loss of negative $12.4 million compared with a net loss of $19.6 million in 2018.

“We delivered outstanding financial results in 2019 highlighted by revenue growth of 50% and a significant improvement in our balance sheet,” said Megibow. “The combination of our top-line performance, significant gross margin expansion and meaningful expense leverage fueled a dramatic improvement in operating profit compared with 2018.”

On the quarterly earnings call, Megibow added, “With respect to organizational effectiveness, we filled several key roles in 2019 including our chief operating officer, John Legg; our chief financial officer, Craig Phillips; and our chief retail officer, Trace White.”

Also on the call, Megibow said the company brought its fifth manufacturing machine online last July and is completing the build-out for machines six and seven that will launch this year. The company now has five retail locations (primarily West Coast) in addition to its factory outlet in Salt Lake City. Purple also strengthened its balance sheet with a year-end cash balance of more than $33 million.