Honest Company Posts Adj. EBITDA Loss In Q2; Stock Down

(RTTNews) - The Honest Company (HNST) reported its seventh consecutive quarter of year-over-year revenue and volume growth. However, the company's adjusted loss per share for the quarter came in below analysts' estimate. Looking forward, the company said it continues to have confidence in its three year strategic plan, Strategy 2023.

On a non-GAAP basis, loss per share was $0.23 for the second quarter of 2021. On average, nine analysts polled by Thomson Reuters expected the company to report a loss per share of $0.14, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was a loss of $0.8 million for the second quarter of 2021 compared to a gain of $3.5 million during the second quarter of 2020.

Second quarter net loss was $20.0 million, compared to net loss of $0.4 million, a year ago. Net loss per share was $0.17 compared to a loss of $0.01.

Second quarter revenue grew 3% to $74.58 million from $72.35 million, prior year. Excluding an estimated $3.7 million COVID-19 stock-up impact primarily in Diapers and Wipes in the prior year period, revenue growth was 9%, for the quarter. Analysts expected revenue of $79.52 million, for the quarter.

The company ended the second quarter of 2021 with $95.1 million in cash, cash equivalents and short-term investments.

Shares of Honest Company were down nearly 7% in pre-market trade on Friday.