The Los Angeles, Calif.-based firm reported a net loss of 5 cents per share for the quarter on revenue of $81 million. Analysts were expecting the company to report a net loss of 6 cents per share on revenue of $79.3 million.
“We had a strong start to 2021, reporting double-digit sales growth. This growth reflects the ongoing success of our strategic initiatives focused on Content, Community and Commerce, powerful innovation and category expansion,” said CEO Nick Vlahos.
Revenue rose 12% year-over-year, building on the 36% revenue growth the company saw in 2020 as a whole. The company's gross profit rose 10% to $28.4 million, representing 35% of its revenue.
Honest shares were down 0.4% to $17.58 after hours despite the top- and bottom-line beats.
“Since our founding, we have been laser-focused on listening to the wants and needs of our consumers. As a result, over the last several years, we have doubled down on expanding our business into new areas, including skincare and beauty,” said founder and Chief Creative Officer Jessica Alba.
Earlier this month, analysts at Guggenheim, Jefferies, Citi and Morgan Stanley were all bullish in their coverage initiations of the company following the company's public debut in May.
Honest Co.'s initial public offering was priced at $16 a share.
At the time of its IPO, the company reported that its 2020 revenue totaled $300.5 million, up 27.6% from the previous year. The company posted a net loss of $14.5 million in 2020, while adjusted EBITDA came to $11.2 million.