Here’s why Casper Sleep shares are down more than 10% on Tuesday

Casper Sleep Inc (NYSE: CSPR) said on Tuesday its revenue in the fiscal second quarter came in better than expected. Shares of the company, however, tanked more than 10% this morning as investors focused on the quarterly loss that missed estimates.

Financial performance

Casper Sleep reported $33.7 million of net loss for the second quarter that translates to 81 cents per share. Including a one-time $17.5 million lease write-off charge, the NYSE-listed company noted a 39.4% annualised increase in quarterly net loss.

On an adjusted basis, the New York-based company lost 39 cents per share. Casper Sleep generated a record $151.8 million of revenue in the recent quarter that represents a year over year growth of 44.6%. In comparison, analysts had called for $150.8 million of revenue and 34 cents of adjusted per-share loss.

Guidance for Q3

For the fiscal third quarter, Casper Sleep now forecasts up to $159 million of revenue. The sleep products company expects to remain in $19.6 million to $22.6 million of loss in Q3. On an adjusted basis, Casper Sleep predicts up to $12.5 million of EBITDA loss in the current quarter.

Casper Sleep valued its cash and equivalents at $49.7 million as of 30^th June. Other notable figures included a 31.3% growth in direct-to-consumer revenue and a 78.9% increase in retail partnership revenue.

The earnings report comes weeks after Casper Sleep partnered with Bed Bath & Beyond.

CEO Philip Krim’s remarks

Commenting on the financial update, CEO Philip Krim said: