By Dhirendra Tripathi
Investing.com -- Shares of The Honest Company (NASDAQ:HNST) looked on course for a sharper erosion in Thursday’s session, falling 5.2% in premarket trading a day after the company reported wider-than-expected losses for the first quarter ended March.
The shares had fallen 3.4% Wednesday.
A near 30% jump in operating expenses from the year-ago quarter overshadowed the 12% revenue growth and hit the bottom line. A higher marketing spend that rose 54% drove the operating expenses.
The company reported a net loss of $4.48 million in its first earnings announcement after going public. This was against a net income of $559,000 in the same quarter a year ago.
Revenue of $81.03 million was higher than the expected $79.25 million. It was also higher than last time’s $72.37 million.
The company’s sales were driven by strong volume growth in the skin and personal care segment.
Sanitization and disinfecting products introduced in household and wellness in the second half of 2020 in order to capture the COVID-induced demand also aided revenue growth.