Grove Collaborative Holdings Inc (GROV) 2023 Q3 法說會逐字稿

Good afternoon, and thank you for standing by, and welcome to Grove Collaborative Holdings Inc's third quarter 2023 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise. Following the speakers' remarks, we will open your lines for questions.

下午好，感謝您的耐心等待，歡迎參加 Grove Collaborative Holdings Inc 的 2023 年第三季財報電話會議。此時，所有線路均已置於靜音狀態，以防止任何背景噪音。發言人發言後，我們將開始提問。

As reminder, this conference is being recorded. Hosting today's call are gross CEO, Jeff Yurcisin; and CFO, Sergio Cervantes.

提醒一下，本次會議正在錄製中。今天的電話會議由 Gross 執行長 Jeff Yurcisin 主持；和財務長塞爾吉奧·塞萬提斯。

Before they begin their prepared remarks, I will review the forward-looking statements Safe Harbor. Some of the statements made today about future prospects, financial results, business strategies industry trends and growth ability to successfully respond to business risks may be considered forward-looking.

在他們開始準備好的演講之前，我將回顧安全港的前瞻性陳述。今天發表的一些有關未來前景、財務表現、業務策略、行業趨勢以及成功應對業務風險的成長能力的陳述可能被認為是前瞻性的。

Such statements involve a number of risks and uncertainties that could cause actual results to differ materially all of these statements are based on growth view of the world and their business as they see it today.

此類陳述涉及許多風險和不確定性，可能導致實際結果出現重大差異。所有這些陳述均基於他們今天所看到的世界及其業務的成長觀點。

As described in our SEC filings, the underlying facts and assumptions for these statements can change as the world and their business changes. For more information, please refer to the risk factors discussed on their most recent filings with the SEC, which are available on Graves Investor Relations website at investors dot growth.com.

正如我們在 SEC 文件中所述，這些陳述的基本事實和假設可能會隨著世界及其業務的變化而變化。欲了解更多信息，請參閱他們最近向 SEC 提交的文件中討論的風險因素，這些文件可在 Graves 投資者關係網站 Investors dot Growth.com 上找到。

During today's call, they will also discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP items to the most directly comparable GAAP financial measures are provided in the earnings release, which is also available on our Investor Relations website.

在今天的電話會議中，他們還將討論某些非公認會計準則財務指標。收益報告中提供了這些非公認會計原則項目與最直接可比較的公認會計原則財務指標的對賬，該報告也可在我們的投資者關係網站上找到。

I would now like to turn the call over to Jeff your question to begin.

我現在想把電話轉給傑夫，讓你開始提問。

Thank you, operator. Hello, everyone, and thank you for joining the call today. I wanted to start this call by saying how honored and excited I am to be joining grow this year. I'd like to thank my predecessor and our Executive Chairman of the Board do lenders for the Board of Directors, the Grove leadership team and all of our employees who have put their trust in me to lead the next chapter.

謝謝你，接線生。大家好，感謝您今天加入通話。我想在這次電話會議開始時說，我對今年能夠加入growth感到非常榮幸和興奮。我要感謝我的前任和我們的董事會執行主席，他們為董事會提供貸款，格羅夫領導團隊以及我們所有的員工，他們信任我來領導下一個篇章。

They have all been incredibly supportive during my transition. I joined Grove because fundamentally I believe that every individual can make a positive impact and drive change beyond themselves.

在我的過渡期間，他們都給了我難以置信的支持。我加入格羅夫是因為從根本上我相信每個人都可以產生積極的影響並推動超越自身的變革。

What unites Grove team is that we are all committed to a singular purpose, one that is bigger than ourselves. We create and curate high-performing Planet first products and aspire to transform the consumer product industry into a force for Human and Environmental, having followed growth for some years before joining, I have made a number of assumptions about the business.

Grove 團隊的團結之處在於，我們都致力於同一個目標，一個比我們自己更偉大的目標。我們創造和策劃高性能的地球第一產品，並渴望將消費品行業轉變為人類和環境的力量，在加入之前我已經跟踪了幾年的增長，我對業務做出了一些假設。

And after 75 days into the role, I am reaffirmed by four core themes since we have an incredible brand grow. This is the leading platform for natural shoppers and is well positioned with our customers, including both active customers and those that haven't made a recent purchase will continue to come back to us because they believe in our mission. When you listen to these quote and active customers, you realize they to love our products and brands with the home and personal care market amounting to roughly $180 billion.

上任 75 天后，我對四個核心主題再次感到肯定，因為我們的品牌發展令人難以置信。這是自然購物者的領先平台，並且與我們的客戶保持著良好的關係，包括活躍的客戶和最近沒有購買過的客戶，他們將繼續回到我們這裡，因為他們相信我們的使命。當您聆聽這些報價和活躍客戶時，您會意識到他們喜歡我們的產品和品牌，家居和個人護理市場規模約為 1800 億美元。

We know there is room for our trusted brand to grow. Second, we are the leaders in sustainable home care and have strong potential to expand beyond that category. Our formidable foothold in homecare is an entry point and a springboard for growth to expand our presence, deliver innovations and launch wholesale into other categories that are relevant to natural shoppers.

我們知道我們值得信賴的品牌還有成長的空間。其次，我們是永續家庭護理領域的領導者，並且具有超越該類別的強大潛力。我們在家庭護理領域的強大立足點是我們擴大業務、提供創新以及向與自然購物者相關的其他類別進行批發的增長的切入點和跳板。

We can do this because of the trust we've built in our core products and offerings. We said we would expand into health and wellness, and we are doing it week by week. More customers continue to trust us for their broader sustainable needs.

我們之所以能夠做到這一點，是因為我們對我們的核心產品和產品建立了信任。我們說過我們將擴展到健康和保健領域，而且我們正在每週都這樣做。更多客戶繼續信任我們能夠滿足他們更廣泛的永續需求。

Third, we have best in class talent. The growth team is one that has made difficult decisions. And third cost cutting measures and have worked through unfortunate but necessary reductions. And yet our employees teams and the broader culture are incredibly strong, resilient and united around our mission. I am deeply impressed by the team and energized by what we can accomplish together.

第三，我們擁有一流的人才。成長團隊是一個做出了艱難決定的團隊。第三個成本削減措施已經完成了不幸但必要的削減。然而，我們的員工團隊和更廣泛的文化非常強大、有彈性，並且圍繞著我們的使命團結一致。我對這個團隊印象深刻，並對我們共同的成就感到充滿活力。

Fourth. And lastly, we have a strong business foundation with great unit economics and are well positioned for profitable growth This won't happen overnight, but the longer-term goals seem reasonable, given the secular trends around natural shoppers and convenient digital experiences, both of which will benefit us as we go forward.

第四。最後，我們擁有強大的業務基礎和良好的單位經濟效益，並為盈利增長做好了準備。這不會在一夜之間發生，但考慮到自然購物者和便捷的數位體驗的長期趨勢，長期目標似乎是合理的。這將使我們受益匪淺。

Our brand leadership, talent and strong foundation are what has gotten us to today. I'm proud of the team's results to achieve positive adjusted EBITDA for the first time this quarter. It demonstrates that we do. What we say this focus on profitability remains priority number one for the company.

我們的品牌領導、人才和堅實的基礎造就了我們今天的成就。我對團隊本季首次實現正調整 EBITDA 的成果感到自豪。這表明我們確實做到了。我們所說的對獲利能力的關注仍然是公司的首要任務。

We will maintain this focus while we reshape our customer experience and culture and our culture will start with the customer at the center of every decision. We will systematically listen to customer needs and innovate to unlock new growth paths in the next year. I have succeeded to founders, Grove DTC businesses to one billion-plus dollars and know how to profitably scale our business like growth.

我們將在重塑客戶體驗和文化的同時保持這一重點，而我們的文化將以客戶為每個決策的中心。明年，我們將有系統地傾聽客戶需求，不斷創新，開啟新的成長路徑。我已經成功將 Grove DTC 的創始人的業務發展到超過 10 億美元，並且知道如何以盈利方式擴展我們的業務（如增長）。

I have seen firsthand a number of positive things in my first 75 days that it may be confident that we have what it takes. And while I remain focused on profitability in the near term, headed not joint growth just to ensure that's profitable. We have a lot of work ahead of us, but I see a clear path for profitable, sustainable growth.

在我任職的前 75 天裡，我親眼目睹了許多正面的事情，這讓我相信我們已經具備了所需的條件。雖然我在短期內仍然關注盈利能力，但不會僅僅為了確保盈利而進行聯合增長。我們還有很多工作要做，但我看到了一條實現盈利、可持續成長的清晰道路。

I plan to prioritize profitability into ramp up growth behind an improved margin structure and customer experience that we will build in the coming months. As a result, I'm comfortable with 2024 revenue below 2023 because I'm confident by the end of 2024 Grove will be growing sequentially with positive adjusted EBITDA, and we'll exit the year with ongoing profitable growth for the quarters to come. And I know how to get us there.

我計劃優先考慮盈利能力以提高成長，以改善利潤結構和客戶體驗，我們將在未來幾個月內建立這一點。因此，我對 2024 年營收低於 2023 年感到滿意，因為我有信心到 2024 年底，Grove 將實現環比增長，調整後的 EBITDA 為正，並且我們將在未來幾季實現持續獲利成長。我知道如何讓我們到達那裡。

First starts with becoming even more meaningful in the lives of our customers. This will be through systematic, consistent data driven decisions to serve natural shoppers and expanding our role as the trusted brand and platform that helps customers make the right sustainable decisions for themselves, their families and their homes.

首先要讓客戶的生活變得更有意義。這將透過系統化、一致的數據驅動決策來服務自然購物者，並擴大我們作為值得信賴的品牌和平台的作用，幫助客戶為自己、家人和家園做出正確的永續決策。

Second, we will win with sustainability as our point of differentiation. This means leaning into our mission being even more focused on our environmental impact through plastic carbon and deforestation options and customer education on the sustainable alternatives that exist today and that are coming tomorrow. These inputs will lead to results in the long term. We are well positioned to be the trusted brand and platform for high-performing planet. First products for natural shoppers and their homes.

其次，我們將以永續發展作為我們的差異化優勢。這意味著我們的使命是更加關注透過塑膠碳和森林砍伐方案以及對當今存在和明天即將出現的可持續替代品進行客戶教育對環境的影響。從長遠來看，這些投入將帶來成果。我們有能力成為高績效星球值得信賴的品牌和平台。為自然購物者及其家庭提供的第一批產品。

And now we'll turn to the results. I am incredibly pleased to share the current third quarter results, which represent cumulative quarters of great work, difficult decisions and smart planning by the team stock this quarter marks the first quarter of positive adjusted EBITDA in the Company's history, a massive step in our journey towards becoming a growing profitable organization.

現在我們來看看結果。我非常高興地分享當前第三季度的業績，它代表了團隊股票各季度的出色工作、艱難決策和明智規劃的累積成果，本季度標誌著公司歷史上調整後EBITDA 正值的第一個季度，這是我們旅程中的一大步成為一個不斷成長的獲利組織。

We are in the midst of a transformation of growth, and today's results prove that point. While it's not the finish line, it is a notable accomplishment worth highlighting and one reached far sooner than we had previously thought possible. We do not expect our positive adjusted EBITDA on every quarter going forward, but this result highlights the massive improvements.

我們正處於成長轉型之中，今天的結果證明了這一點。雖然這不是終點線，但這是一項值得強調的顯著成就，而且比我們之前想像的要早得多。我們預計未來每季調整後的 EBITDA 都不會出現正數，但這一結果突顯了巨大的進步。

Growth has made over the last two years. Again, I want to give kudos to the team for the incredible work that went into driving this result. Adjusted EBITDA in the third quarter of 2023 was positive $0.2 million, up from a loss of $2.6 million in the second quarter of 2023 and a loss of $9.6 million in the third quarter of last year, while not a comparative period a period. It's worth highlighting that our Q1 2022 adjusted EBITDA, which was just seven quarters ago was negative $40 million.

過去兩年取得了成長。再次，我想向團隊致敬，感謝他們為推動這一結果所做的令人難以置信的工作。 2023 年第三季調整後 EBITDA 為正 20 萬美元，高於 2023 年第二季的虧損 260 萬美元和去年第三季的虧損 960 萬美元，而非同期虧損。值得強調的是，我們的 2022 年第一季調整後 EBITDA（僅七季前）為負 4,000 萬美元。

Holistic P&L transformation has been truly incredible and rare among our industry. This improvement was achieved despite revenue declining in the third quarter, which was down 6.6% sequentially and 20.6% year over year. The revenue decline continues to be impacted by the advertising spend reduction, which was down 53.1% in the current quarter when compared to Q3 2022.

整體損益轉型在我們的行業中確實令人難以置信且罕見。儘管第三季營收下降（季減 6.6%，年減 20.6%），但仍實現了這一改善。收入下降繼續受到廣告支出減少的影響，與 2022 年第三季相比，本季廣告支出減少了 53.1%。

As we eliminate our lowest-performing marketing spend, maximize our return on investment and continued our aggressive push to sustain profitability even at lower levels of spend. We are pleased with the results and continue to see strong performance in unpaid channels, contributing to current quarter performance and continuing the trend from prior quarters were new records for net revenue per order and gross margin.

隨著我們消除表現最差的行銷支出，最大限度地提高投資回報，並繼續積極推動即使在較低支出水平下也能維持獲利能力。我們對結果感到滿意，並繼續看到非付費管道的強勁表現，為當前季度的業績做出了貢獻，並延續了前幾個季度的趨勢，每筆訂單的淨收入和毛利率創下了新紀錄。

Net revenue per order improved to $65.24, increasing from $64.82 in Q2 of 2023, our previous record high. Furthermore, gross margin increased 190 basis points from last quarter to 53.8% and was 180 basis points higher than our prior record in Q1 2023. We're excited to continue moving the needle on these important metrics. We will remain focused on profitability, finding leverage across the P&L. We've already discussed our marketing efficiency and net revenue improvements.

每個訂單的淨收入從 2023 年第二季的 64.82 美元增至 65.24 美元，這是我們之前的歷史新高。此外，毛利率比上個季度增加了 190 個基點，達到 53.8%，比我們之前在 2023 年第一季的記錄高出 180 個基點。我們很高興能夠繼續推動這些重要指標的發展。我們將持續關注獲利能力，在損益表中尋找槓桿作用。我們已經討論了我們的行銷效率和淨收入的改進。

So now I want to highlight our progress on omnichannel expansion and operating expense discipline, meeting our customers where they shop is critical to our objective of making Planet friendly household essentials as accessible as possible. We continue to balance growth in the retail channel with our overall profitability objectives.

因此，現在我想強調我們在全通路擴張和營運費用紀律方面取得的進展，在客戶購物的地方與他們見面對於我們的目標至關重要，即讓地球友好的家庭必需品盡可能容易獲得。我們持續平衡零售通路的成長與整體獲利目標。

And sharing our growth strategy is capital efficient during the quarter. We are excited to share that we expanded our retail distribution to include key in Wegmans. We have over 420 key points of distribution and are in approximately 50 Wegmans stores with the expectation of being rolled out to 100 locations by year end. These additions take our retail footprint to over 7,500 brick-and-mortar locations.

分享我們的成長策略可以提高本季的資本效率。我們很高興與大家分享，我們擴大了零售分銷範圍，將 Wegmans 的 key 納入其中。我們擁有超過 420 個主要分銷點，並在大約 50 家 Wegmans 商店中開展業務，預計到年底將推廣到 100 個地點。這些新增業務使我們的零售足跡遍佈 7,500 多個實體店。

Our business in retail has been a learning experience now energized by the partnerships that we have with critical retailers and can see the progress in both product and in the numbers. I believe many other brands be envious of our current shelf position. We also continue to make progress on Amazon, where we increase increased our SKU assortment include laundry room spray and other product categories expanding on the product lines launched in the prior two quarters. In the six months since we've launched our flagship brand growth Co.

我們的零售業務一直是一種學習經歷，現在我們與重要零售商的合作夥伴關係為我們注入了活力，並且可以看到產品和數位方面的進展。我相信很多其他品牌都會羨慕我們目前的貨架地位。我們還在亞馬遜上繼續取得進展，我們在亞馬遜上增加了 SKU 品種，包括洗衣房噴霧劑和其他產品類別，擴展了前兩個季度推出的產品線。自從我們推出旗艦品牌成長有限公司以來的六個月。

On Amazon, we have over 900 positive customer reviews. Again, our business is effective because customers love our products.

在亞馬遜上，我們有超過 900 條正面的客戶評論。同樣，我們的業務之所以有效，是因為客戶喜歡我們的產品。

We are not only focused on improving operating efficiency in the retail channel, but across the entire P&L, even with the massive improvements in operating expenses over the last seven quarters, which are down 58.5% from Q1 2022. We continue to make progress with my own fresh eyes. I see additional opportunities for the organization. Our current quarter operating expenses are down 38.5% year over year and 14.9% quarter over quarter.

我們不僅專注於提高零售通路的營運效率，而且關注整個損益表，儘管過去七個季度的營運費用大幅改善，較 2022 年第一季下降了 58.5%。自己新鮮的眼睛。我看到了該組織的更多機會。我們目前季度的營運費用年減 38.5%，季減 14.9%。

While a portion of the reduction is due to lower variable costs from fewer orders, we are seeing the benefits of our outbound carrier mix optimization, driving down shipping costs. We also see it in the elimination of duplicative or unnecessary vendor spend, the optimization of advertising channel allocation to ensure the highest return on our investment and smaller teams, allowing for more rapid decision-making.

雖然減少的部分原因是訂單減少導致可變成本降低，但我們看到了出境承運商組合優化的好處，從而降低了運輸成本。我們也看到了消除重複或不必要的供應商支出、優化廣告管道分配以確保我們的投資獲得最高回報以及縮小團隊規模以實現更快速的決策。

I've been impressed by the entire organization's relentless work and difficult decisions to streamline our expense structure. This focus needs to and will persist. We continue to see opportunities across the P&L to find points of leverage that will improve our economics and will enable to be both profitable and growing in the near future.

整個組織為簡化費用結構所做的不懈努力和艱難決策給我留下了深刻的印象。這種關注需要並且將會持續下去。我們繼續在損益表中尋找槓桿點，以改善我們的經濟狀況，並在不久的將來實現盈利和成長。

As we look to the future, I want to share my vision for growth and how we will focus our overall efforts to grow and scale the business today and moving forward, we will remain focused on one customers, two, sustainability and three profitability. We are in business because of our customers. We are here to serve them and be their trusted destination to find high-performing planet.

展望未來，我想分享我的成長願景，以及我們將如何集中整體努力來發展和擴大今天的業務，展望未來，我們將繼續專注於一客戶、二客戶、永續性和三盈利能力。我們因客戶而開展業務。我們在這裡為他們提供服務，並成為他們尋找高性能星球的值得信賴的目的地。

First problem. Sustainability is our foundation and our differentiation is why we are unique in the industry. And profitability is a necessity. I'm going to start most discussions with our customer in mind, and you will hear us talking more and more about our customers on earnings calls. It's through increasing value to customers that businesses create sustainable growth we are excited about the VIP.

第一個問題。永續發展是我們的基礎，我們的差異化是我們在產業中獨一無二的原因。盈利能力是必要的。我將在開始大多數討論時都考慮到我們的客戶，您會在財報電話會議上聽到我們越來越多地談論我們的客戶。企業透過增加客戶價值來實現永續成長，我們對 VIP 感到興奮。

growth program. And during the third quarter of this year, we launched the VIP. hub. This new feature provides our VIP.s with exclusive benefits, including samples, earned gifts, discount and early access to limited edition collections. We are thrilled to provide our best customers of more value, particularly in the current economic environment and reward them with newness through a dedicated program.

成長計劃。今年第三季度，我們推出了 VIP。中心。這項新功能為我們的 VIP 提供了獨家福利，包括樣品、贏取的禮物、折扣和搶先體驗限量版系列。我們很高興能為我們的最佳客戶提供更多價值，特別是在當前的經濟環境下，並透過專門的計劃以新穎的方式獎勵他們。

While it is a recent launch, we are excited by the early trends. Traditionally, our customers told us they want more selection the tenants guiding our category expansion are high, including strict ingredient standards and providing transparency and education to customers to help them on their sustainability journey expansion into the health and wellness category has proven that customers continue to place high trust in growth and are open to grows recommendations and selection beyond cleaning process.

雖然這是最近推出的，但我們對早期的趨勢感到興奮。傳統上，我們的客戶告訴我們，他們想要更多的選擇，指導我們品類擴張的租戶很高，包括嚴格的成分標準，並向客戶提供透明度和教育，以幫助他們踏上可持續發展之旅，擴展到健康和保健類別，這已經證明客戶繼續對成長高度信任，並願意接受清潔過程之外的成長建議和選擇。

Since Q2 2022, we have nearly doubled the percent of orders containing our wellness gear, though health health and wellness products continue to make up a small percentage of our total sales. Expanding our assortment continues to be a focus. Our initial launch was focused on multivitamin and other daily regimen products to drive repeat orders.

自 2022 年第二季以來，我們的健康裝備訂單百分比幾乎翻了一番，儘管健康保健和保健產品仍然​​只占我們總銷售額的一小部分。擴大我們的產品種類仍然是我們的重點。我們最初的推出重點是複合維生素和其他日常養生產品，以吸引重複訂單。

We look to expand into other subcategories to round out our selection and make growth our destination for all of our customers' wellness needs. Furthermore, during the quarter, we implemented an improved search browser store experience on our website and mobile application that we expect to vastly improve the customer experience.

我們希望擴展到其他子類別，以完善我們的選擇，並使成長成為滿足所有客戶健康需求的目標。此外，在本季度，我們在網站和行動應用程式上實施了改進的搜尋瀏覽器商店體驗，我們預計這將大大改善客戶體驗。

These innovation innovations will make it easier and more seamless for customers to find the right products at the right time. These changes will facilitate more health and wellness penetration and set us up well for further cross-category adoption. And while we're talking about customers, I also want to discuss some new products.

這些創新將使客戶能夠更輕鬆、更無縫地在正確的時間找到正確的產品。這些變化將促進更多的健康和保健滲透，並為我們進一步跨類別採用奠定良好的基礎。在我們談論客戶的同時，我也想討論一些新產品。

In Q3, we launched our holiday limited edition collection feeds of Enchanted featuring peppermint bark and balsam fir, delivering the newness that our customers want, as well as providing sustainable alternatives for popular seasonal products. And we have been pleased with the early interest and is that turning our focus to sustainability.

在第三季度，我們推出了以薄荷樹皮和香脂冷杉為特色的 Enchanted 假日限量版系列，為客戶提供所需的新鮮感，並為流行的季節性產品提供可持續的替代品。我們對早期的興趣感到高興，並將我們的重點轉向永續發展。

Research and development remains a top priority for us as we continue our market leadership and sustainable products, especially in our replenishment categories. In Q3 2023, we finalize 2024 plans to make additional packaging updates across select SKUs to ensure they are made have some of the most sustainable materials available while developing a robust innovation pipeline for the new year, we look forward to launching these products in the coming quarters.

隨著我們繼續保持市場領先地位和永續產品，尤其是在我們的補貨類別中，研究和開發仍然是我們的首要任務。 2023 年第三季度，我們敲定了2024 年計劃，對選定的SKU 進行額外的包裝更新，以確保它們採用一些最可持續的材料，同時為新的一年開發強大的創新管道，我們期待在未來推出這些產品宿舍。

Lastly, full turn to profitability. This is job number one in my eyes, it has been and needs to remain a core focus. We can't chase a sustainable mission without a sustainable business. We will continue to make decisions that prioritize the bottom line by one, expanding gross margin.

最後，全面轉向盈利。在我看來，這是首要工作，它一直是而且需要繼續成為核心焦點。如果沒有永續的業務，我們就無法追求永續的使命。我們將繼續做出將利潤放在第一位的決策，擴大毛利率。

Two, focusing on customer experience to drive retention. Three, increasing assortment to grow lifetime value for improving advertising efficiency by increasing our SG&A leverage through more efficient spend and six seeking efficiencies across our fulfillment ecosystem.

第二，注重客戶體驗以提高保留率。第三，透過更有效率的支出來增加我們的SG&A槓桿，增加產品種類以增加終身價值，從而提高廣告效率；第六，在我們的履行生態系統中尋求效率。

In the long term, we see ourselves as a scalable platform for high-performing sustainable trials on that theme we continue to explore M&A as a potential strategy to provide step-change opportunities. The bar for action is high, and we are deliberate with how we invest time and resources to close out our key business updates.

從長遠來看，我們將自己視為一個可擴展的平台，可針對該主題進行高效能永續試驗，我們將繼續探索併購作為提供階躍變革機會的潛在策略。行動的門檻很高，我們會慎重考慮如何投入時間和資源來完成關鍵業務更新。

We turn to the cornerstone of our sustainability innovation, plastic intensity for pounds of plastic per $100 of net revenue. We are proud to publish the industry's first plastic intensity metric. Our hope is that other brands and retailers will follow suit as we work to reduce plastic in our industry.

我們轉向永續創新的基石，即每 100 美元淨收入所用塑膠磅數的塑膠強度。我們很自豪地發佈業界第一個塑膠強度指標。我們希望其他品牌和零售商能夠效仿我們努力減少行業中的塑膠用量。

This quarter, we adopted an expanded definition of plastic that includes polyvinyl alcohol, PVA and PVOOH. silicon and plastic liners and resins with aluminum packaging to ensure even more transparency in our plastic intensities some in the industry might debate the definition of plastic.

本季度，我們採用了塑膠的擴展定義，其中包括聚乙烯醇、PVA 和 PVOOH。矽和塑膠襯裡以及帶有鋁包裝的樹脂，以確保我們的塑膠強度更加透明，一些業內人士可能會爭論塑膠的定義。

But we are using a more inclusive definition to continue to raise the bar for ourselves and others. We have updated the following metrics and quarterly comparisons to account for these changes across the growth.com site and through retail partners.

但我們正在使用更具包容性的定義來繼續提高我們自己和他人的標準。我們更新了以下指標和季度比較，以反映 Growth.com 網站和零售合作夥伴的這些變化。

Plastic intensity was GBP1.11 of plastic per $100 in revenue in the third quarter of 2023, down slightly from $1.14 in the third quarter of 2022. Specifically across our growth brand products. Plastic intensity was GBP1.14 of plastic per $100 in net revenue in the third quarter 2023, in line with GBP1.13 in the second quarter of 2023, but up from GBP1.04 in the third quarter of 2022.

2023 年第三季度，塑膠強度為每 100 美元收入 1.11 英鎊，略低於 2022 年第三季的 1.14 美元。特別是在我們的成長品牌產品中。 2023 年第三季的塑膠強度為每 100 美元淨收入 1.14 英鎊，與 2023 年第二季的 1.13 英鎊一致，但高於 2022 年第三季的 1.04 英鎊。

Our growth branded 100% recycled plastic trash bags are the primary driver of year-over-year plastic intensity increases for growth brands. Excluding this product category growth brand plastic intensity was 0.63 in the third quarter of 2023 in line with previous quarters.

我們的成長型品牌 100% 再生塑膠垃圾袋是成長型品牌塑膠強度逐年增加的主要動力。排除該產品類別的成長，2023 年第三季品牌塑膠強度為 0.63，與前幾季持平。

Overall, we are encouraged by the growing trend of more customers opting for recycled plastic garbage bags instead of reg in place, we are continuing to explore ways to reduce plastic in this category while providing customers with an effective product experience.

總體而言，我們對越來越多的客戶選擇再生塑膠垃圾袋而不是就地回收的趨勢感到鼓舞，我們正在繼續探索減少該類別塑膠的方法，同時為客戶提供有效的產品體驗。

I will now turn the call over to Sergio to review our results in more detail. Sergio. Please go ahead.

我現在將把電話轉給塞爾吉奧，以更詳細地審查我們的結果。塞爾吉奧.請繼續。

Thank you, Jeff. Similar to previous calls, we will provide quarter-over-quarter comparisons in addition to the year-over-year changes as we believe the sequential comparisons reflect the trends in the business and the steps we have taken to position ourselves for long term, sustainable and profitable growth.

謝謝你，傑夫。與先前的電話會議類似，除了同比變化之外，我們還將提供季度環比比較，因為我們相信連續比較反映了業務趨勢以及我們為實現長期、可持續發展而採取的步驟和盈利增長。

Net revenue in the third quarter was $61.8 million, down 6.6% from the second quarter of 2023 and 20.6% year over year. Both comparisons continued to be impacted by the strategic decision to reduce advertising spend as the Company focuses on profitability tied to our reduced advertising spend. Total orders were down 5.9% quarter over quarter and 26.2% year over year to $0.9 million and active customers were down 10.1% quarter over quarter and 30.2% year over year to $1 million on a trailing 12 month basis, DTC net revenue per order was up 0.7% quarter over quarter and 7.6% year over year $65.2 a new record high level, surpassing our previous record of $64.8 from last quarter year.

第三季淨收入為 6,180 萬美元，較 2023 年第二季下降 6.6%，年減 20.6%。這兩項比較繼續受到減少廣告支出的策略決策的影響，因為公司專注於與減少廣告支出相關的獲利能力。過去 12 個月的訂單總額較上季下降 5.9%，年減 30.2%，至 100 萬美元，DTC 每訂單淨收入為季減0.7%，年比上漲7.6% 65.2 美元，創歷史新高，超過上一季64.8 美元的歷史紀錄。

Year-over-year improvement continues to be benefited by our net revenue management initiatives including a shift in mix towards existing customer orders, which have a higher DTC net revenue per order as well as the introduction of introduction of strategic price increases and growth brands and third party products taken in Q4 2022 and Q1 2023. Gross margin was up 290 basis points quarter over quarter and 470 basis points year over year to 53.8%, another record high for the Company.

同比改善繼續受益於我們的淨收入管理舉措，包括轉向現有客戶訂單組合，這些訂單的每筆訂單有更高的 DTC 淨收入，以及引入戰略性提價和增長品牌以及2022 年第四季度和2023 年第一季採用的第三方產品。毛利率較上季成長290 個基點，較去年同期成長470 個基點，達到53.8%，再創公司歷史新高。

The year-over-year improvement is due to reductions in inventory reserves from the sell-through of inventory and price increases taken on growth brands and third party products in Q4 2020 to Q1 2023. Similarly, the quarter-over-quarter improvement was mainly due to a reduction in the inventory reserves. Stock-prep products as percentage of net revenue was down 20 basis points quarter over quarter and 210 basis points year over year to 44.8% year over year.

年比改善的原因是 2020 年第四季度至 2023 年第一季度，庫存轉售導致庫存儲備減少以及增長品牌和第三方產品的價格上漲。同樣，環比改善主要是由於庫存儲備減少。庫存準備產品佔淨收入的百分比季減 20 個基點，年減 210 個基點，至 44.8%。

Decline is due to a decrease in Grove brand products in existing customer orders as we continued to expand our third party product offerings, especially our product selection in the health and wellness category. Advertising expenses decreased 12.8% quarter-over-quarter and 53.1% year over year to $4.1 million.

下降的原因是，隨著我們繼續擴大第三方產品供應，尤其是健康和保健類別的產品選擇，現有客戶訂單中的 Grove 品牌產品減少。廣告費用較上季下降 12.8%，年減 53.1%，至 410 萬美元。

The year-over-year decline continues to reflect our strategic pullback in advertising spend and focus on improving marketing investment efficiency, whereas the sequential The change was due to a reduction in retailer specific advertising as we balance growth and profitability in that channel.

年比下降繼續反映出我們在廣告支出方面的策略性縮減，並專注於提高行銷投資效率，而環比變化是由於我們平衡該管道的成長和盈利能力而減少了零售商特定廣告。

Product development decreased 11.7% quarter over quarter and 37.9% year over year to $3.6 million, mainly due to a decrease in personnel expenses. We remain excited by our innovation strategy and look forward to leading the CPG industry.

產品開發季減 11.7%，年減 37.9%，至 360 萬美元，主要是因為人員費用減少。我們對我們的創新策略仍然感到興奮，並期待引領 CPG 產業。

SG&A expenses decreased 15.5% quarter over quarter and 35.8% year over year to $29.7 million. Excluding stock-based compensation and severance, SG&A expense in the quarter would have been $27.9 million. We're 7.6% less than the second quarter of 2023 and 24.1% less than the same period last year.

SG&A 費用季減 15.5%，年減 35.8%，至 2,970 萬美元。不包括以股票為基礎的薪酬和遣散費，本季的 SG&A 費用將為 2,790 萬美元。比 2023 年第二季減少 7.6%，比去年同期減少 24.1%。

The quarter-over-quarter decline was mainly due to lower fulfillment costs related to fewer orders and other operating expenses, primarily personnel and insurance. This trend continues to be reflective of our strategy to reduce expenses to focus on profitability as a percent of net revenue, SG&A expense would have been 45.3% compared to 45.7% in the second quarter of 2023 and 47.4% is the third quarter of 2022.

環比下降主要是由於訂單減少和其他營運費用（主要是人員和保險）導致的履行成本降低。這一趨勢繼續反映了我們減少開支以專注於利潤佔淨收入百分比的策略，SG&A 開支將為 45.3%，而 2023 年第二季為 45.7%，2022 年第三季為 47.4%。

Our adjusted EBITDA improved EUR2.2 million. The first positive quarter for the Company as compared to a $2.6 million loss in the second quarter of 2023 and $9.6 million loss in the third quarter of 2022, despite lower sales from our lower advertising expense strategy, our adjusted EBITDA margin improved 2.3%, an improvement of 420 basis points quarter over quarter and 1,270 basis points year over year.

我們調整後的 EBITDA 提高了 220 萬歐元。與2023 年第二季虧損260 萬美元和2022 年第三季虧損960 萬美元相比，公司迎來了第一個積極的季度，儘管我們較低的廣告費用策略導致銷售額下降，但我們調整後的EBITDA 利潤率提高了2.3%，環比改善 420 個基點，較去年同期改善 1,270 個基點。

The quarter-over-quarter and year-over-year improvements in adjusted EBITDA, our due to lower advertising time SG&A expenses, partially offset by a lower gross profit due to less revenue, but extremely proud of these results, reflecting our ability to rapidly transform our bottom line. But we were one public last year. We had the goal of achieving profitability during 2024, but we have been able to accelerate this time line through our disciplined approach across the entire company.

調整後 EBITDA 的環比和同比改善是由於廣告時間 SG&A 費用減少所致，部分被收入減少導致的毛利降低所抵消，但對這些結果感到非常自豪，這反映出我們有能力快速改變我們的底線。但去年我們是公眾之一。我們的目標是在 2024 年實現盈利，但透過整個公司嚴格的方法，我們已經能夠加快這一時間表。

I echo Jeff's. Thanks to our exceptional teams across the country for the hard work to reach this milestone.

我同意傑夫的觀點。感謝我們遍布全國的優秀團隊為實現這一里程碑所做的辛勤工作。

Net loss in the quarter was $9.8 million compared to a net loss of $10.9 million in the second quarter of 2023 and net income of $7.7 million in the third quarter of 2022. Following a large reduction in deferred value of unearned outlays.

本季淨虧損為 980 萬美元，而 2023 年第二季淨虧損為 1,090 萬美元，2022 年第三季淨收入為 770 萬美元。此前未實現支出的遞延價值大幅減少。

Turning now to the balance sheet. We ended the quarter with nine $94.7 million in cash, cash equivalents and restricted cash, an increase of $5 million from the previous quarter. The increase is mainly due to the $10 million investment from releasing capital as noted last quarter and $1.2 million of interest income partially offset by the $3.2 million interest expense outflow of $.8 million capital expenditures.

現在轉向資產負債表。本季結束時，我們有 9,470 萬美元的現金、現金等價物和限制性現金，比上一季增加了 500 萬美元。這一增長主要是由於上季度提到的釋放資本帶來的 1000 萬美元投資以及 120 萬美元的利息收入被 80 萬美元資本支出的 320 萬美元利息支出部分抵消。

As noted previously, during the quarter, we received an investment from pollution capital to strengthen our balance sheet. We received gross proceeds of $10 million in exchange for 10,000 shares of the Company's Series A. convertible preferred stock with a conversion price of $2.11 per share. Please refer to our financial statements for the significant provisions of the offering. We finished the quarter with an inventory balance of $32.7 million down $1.8 million from the end of Q2 2023.

如前所述，在本季度，我們收到了污染資本的投資，以加強我們的資產負債表。我們獲得了 1000 萬美元的總收益，以換取 10,000 股公司 A 系列可轉換優先股，轉換價格為每股 2.11 美元。請參閱我們的財務報表，以了解本次發行的重要條款。本季末，我們的庫存餘額為 3,270 萬美元，比 2023 年第二季末減少了 180 萬美元。

We continue to be pleased with our ability to rightsize our inventory base while striving for further efficiencies as we optimize our working capital. Furthermore, we did not make any draws on our asset-based loan facility during the third quarter after having taken the minimum draw of $7.5 million in Q1.

我們仍然對我們調整庫存規模的能力感到滿意，同時在優化營運資本的同時努力提高效率。此外，在第一季提取了 750 萬美元的最低提款額後，我們在第三季沒有提取任何基於資產的貸款融資。

This facility has a maximum capacity of $35 million, which is calculated from our our inventory and accounts receivable balances. Based on current inventory and accounts receivable balances, we have $11.5 million of capacity available.

該設施的最大容量為 3500 萬美元，這是根據我們的庫存和應收帳款餘額計算的。根據當前庫存和應收帳款餘額，我們擁有 1,150 萬美元的可用產能。

Lastly, assuming a share price of $2.35, our year-to-date average trading price in 2023, we will be able to raise $14 million net of issuance costs from there our standby equity purchase agreement, taking into account market conditions and business priorities, we will evaluate using this capacity strategically to supplement our liquidity. We still continue to feel good about our current liquidity position and our ability to continue executing on our long-term strategy.

最後，假設股價為 2.35 美元，即我們 2023 年迄今的平均交易價格，考慮到市場狀況和業務優先事項，我們將能夠從我們的備用股權購買協議中籌集 1400 萬美元的淨發行成本，我們將評估策略性地使用這種能力來補充我們的流動性。我們仍然對當前的流動性狀況以及繼續執行長期策略的能力感到滿意。

Now turning to the outlook. Factoring in our performance to date and our expectations for the remainder of the year, we are offering the following revised guidance for the 12-month period ending December 31st, 2023. We now expect net revenue of $257.5 million to $262.5 million, down from $260 million to $270 million and adjusted EBITDA margin of minus 4.5% to minus 5.5%, an improvement from minus 5% to minus 7% previous quarter.

現在轉向前景。考慮到我們迄今為止的業績以及對今年剩餘時間的預期，我們對截至2023 年12 月31 日的12 個月期間提供以下修訂後的指導。我們現在預計淨收入為2.575 億美元至2.625 億美元，低於260 美元百萬美元增至 2.7 億美元，調整後 EBITDA 利潤率從-4.5%增至-5.5%，從上一季的-5%增至-7%。

Our ability to rapidly transform our P&L gives us confidence to further increase our adjusted EBITDA margin guidance for the rest of the year. However, due to our refined Q4 of a further tightening of strategy, we are marginally lowering revenue guidance. Moreover, as mentioned previously, we do not expect to be profitable every quarter going forward.

我們快速轉變損益表的能力使我們有信心進一步提高今年剩餘時間的調整後 EBITDA 利潤率指引。然而，由於我們第四季進一步收緊策略，我們將小幅下調收入指引。此外，如前所述，我們預計未來每季都不會獲利。

The fourth quarter of this year is expected to turn back to an adjusted EBITDA loss. As we look forward to 2024, we remain confident that our progress this year will allow us to achieve profitable growth in the later part of 2024, we will provide additional commentary for full year 24 guidance part of our Q4 earnings. I would like to turn the call back over to Jeff for some closing remarks.

預計今年第四季調整後的 EBITDA 將恢復虧損。展望 2024 年，我們仍然相信今年的進展將使我們能夠在 2024 年下半年實現盈利增長，我們將為第四季度收益的全年 24 指導部分提供額外評論。我想將電話轉回給傑夫，讓他發表一些結束語。

Thank you, Sergio. I'm truly proud of our accomplishments in our 1st year as a public company, including the incredible milestone of positive adjusted EBITDA for the first time and continued progress on our mission. Our team deserves credit for the difficult decisions that have been made to get us to this point, but we must continue to transforming ourselves pushing ourselves to be more profitable while better serving our customers.

謝謝你，塞爾吉奧。我對我們作為上市公司第一年所取得的成就感到非常自豪，包括首次實現正調整 EBITDA 的令人難以置信的里程碑以及我們使命的持續進展。我們的團隊為讓我們走到這一步而做出的艱難決定值得讚揚，但我們必須繼續自我轉型，推動自己獲得更多利潤，同時更好地為客戶服務。

We have fantastic order economics more than 1 million active customers, a trusted brand that delivers trustworthy products and a mission that unites us and moving forward, we will continue to be ruthlessly focused on our customers, improve the core shopping experience, expand selection and deliver new innovations with our incredibly strong foundation and renewed renewed focus on the core of our business and confident about our future and excited about what's in store for growth.

我們擁有超過100 萬活躍客戶的出色訂單經濟效益，一個提供值得信賴產品的值得信賴的品牌，以及一個使我們團結一致並前進的使命，我們將繼續無情地關注我們的客戶，改善核心購物體驗，擴大選擇範圍並交付新的創新，我們擁有令人難以置信的強大基礎，重新專注於我們的業務核心，對我們的未來充滿信心，並對未來的成長感到興奮。

Thank you all for listening to our prepared remarks.

感謝大家聆聽我們準備好的發言。

We are now happy to answer any questions you have. Operator, please open the line for questions.

我們現在很樂意回答您的任何問題。接線員，請開通提問線。

(Operator Instructions) Dana Telsey, Telsey Advisory Group. Your line is open.

（操作員指示）Dana Telsey，Telsey 諮詢小組。您的線路已開通。

Thank you. Good afternoon, everyone. Welcome, Jeff, and nice to see the progress and the adjusted EBITDA. As you think about the balancing act investing and the path to profitability, how are you planning going forward? What do you think of how you're planning marketing spend going forward?

謝謝。大家下午好。歡迎，傑夫，很高興看到進展和調整後的 EBITDA。當您考慮平衡投資和盈利之路時，您下一步計劃如何？您如何看待未來的行銷支出計畫？

What you're looking at and when you think about new customers and existing customers, given the pull down in the active customers, what are you looking for to show continued growth awareness and market share gains.

當您考慮新客戶和現有客戶時，您正在關注什麼，考慮到活躍客戶的下降，您正在尋找什麼來顯示持續的成長意識和市場份額的成長。

And lastly, as you think about the balancing act with adjusted EBITDA, should this be a as you think about qualitatively for next year? Is it breakeven adjusted EBITDA more for the back half of the year? Or is it more in 2025? Thank you.

最後，當您考慮調整後 EBITDA 的平衡行為時，這應該是您明年定性考慮的嗎？今年下半年的損益兩平調整後 EBITDA 是否會更高？還是2025年會更多？謝謝。

Thank you so much, Dana. Appreciate the question. I'm going to break this up into a few kind of parts. First of yes, we are prioritizing profitability, but we are still investing in marketing in new customers. I think compared to our previous levels, which were unsustainable. We have pulled back and for those that study cohort curves and hard deep into cohort modeling and you realize that the subsequent quarters right after that type of pullback in advertising are the hardest comps and the greatest challenges to growth.

非常感謝你，達納。感謝這個問題。我將把它分成幾個部分。首先，我們優先考慮獲利能力，但我們仍在對新客戶的行銷進行投資。我認為與我們之前的水平相比，這是不可持續的。我們已經撤回了，對於那些研究隊列曲線並深入研究隊列模型的人來說，您會意識到，在廣告的這種類型的撤退之後的後續季度是最困難的比較和增長的最大挑戰。

So we see those kind of curves bottoming out in the back half of next year. And so when we think about where growth will come from. There will be just a natural benefit of our cohort curves, but also we see a real path of drive of driving innovation and initiatives that both improve profitability while still improving our revenue. So first thing that jumps out is we're really going to obsess over this customer experience, and I believe we'll do great things from a retention perspective.

因此，我們看到這些曲線將在明年下半年觸底。因此，當我們思考成長從何而來時。我們的隊列曲線將為我們帶來自然的好處，但我們也看到了推動創新和舉措的真正路徑，既提高了盈利能力，又提高了我們的收入。因此，首先要注意的是，我們真的會非常關注這種客戶體驗，我相信，從保留的角度來看，我們會做一些很棒的事情。

The second thing we're going to do that we referenced was increasing assortment to grow lifetime value of customers.

我們要做的第二件事是增加產品種類以增加顧客的終身價值。

The third thing that you referenced in your question was this trade-off between new customers and some of these existing customers.

您在問題中提到的第三件事是新客戶和其中一些現有客戶之間的權衡。

What love about this business is 35 million customers who have tried growth. And when you go speak to those that are quote, inactive. There's still a lot. And so we see a big opportunity as we improve that core customer experience for us to go back reintroduce ourselves to those customers and to continue to drive growth there.

熱愛這項業務的是 3500 萬嘗試過成長的客戶。當你去和那些報價不活躍的人交談時。還有很多。因此，當我們改善核心客戶體驗時，我們看到了一個巨大的機會，讓我們重新向這些客戶介紹自己，並繼續推動那裡的成長。

I think from a profitability perspective, as you go down the P&L, I see opportunities at the gross margin level as we mentioned efficiencies across our fulfillment ecosystem. I still think in terms of advertising, we can keep getting more and more efficient. And those are some of the big areas where we see both this balance focusing on profitability first, but still with high confidence of being able to deliver growth, sequential growth and ultimately year-over-year growth towards the end of the year from.

我認為從獲利能力的角度來看，當你降低損益表時，我看到了毛利率水準的機會，因為我們提到了整個履行生態系統的效率。我仍然認為在廣告方面，我們可以不斷變得越來越有效率。在這些重要領域，我們看到這種平衡首先關注獲利能力，但仍然對能夠在年底實現成長、環比成長和最終同比成長充滿信心。

The last question, I think you have a specific to profitability and some of these changes that we're talking about where we see opportunities will take some time to flow through the P&L, but we are expecting to be EBITDA positive for the full year 2024 period.

最後一個問題，我認為您對盈利能力有一個具體的了解，我們正在談論的一些變化是我們認為機會需要一些時間才能體現在損益表上的，但我們預計 2024 年全年 EBITDA 將為正值時期。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) Susan Anderson, Canaccord Genuity. Your line is open.

（操作員說明）Susan Anderson，Canaccord Genuity。您的線路已開通。

Hi, good evening and thanks for taking my question and nice to see the profitability and welcome Jeff, on board and I guess just looking at fourth quarter, I'm curious, you talked about it moving kind of back to the nonprofitable range. I guess is that because marketing spend will be higher in Q4 than what it had been in Q3. Were just curious the different levers there that you're going to have for Q4 versus what we saw in Q3 and

你好，晚上好，感謝您提出我的問題，很高興看到盈利能力，歡迎傑夫加入，我想只是看看第四季度，我很好奇，你談到它回到了非營利範圍。我想這是因為第四季的行銷支出將高於第三季。我們只是好奇第四季將有哪些不同的槓桿與我們在第三季和第三季看到的不同槓桿

great question. Yes, primarily marketing spend, you will see continued investment marketing as a percentage of revenue. We will stay there. And then I think what we see is we just see new paths to find leverage in the P&L, and that may take more than the next 90 days and for us to unlock. And that's why we're much more confident about 2024. And then there's also just a seasonal Arc to our business. When you think about the quarter, that will have a little pressure on profitability and Q4.

很好的問題。是的，主要是行銷支出，您將看到持續的行銷投資佔收入的百分比。我們會留在那裡。然後我認為我們看到的是我們只是看到了在損益表中找到槓桿作用的新途徑，而這可能需要超過未來 90 天的時間才能解鎖。這就是為什麼我們對 2024 年更有信心。而且我們的業務也只有季節性的弧線。當您考慮本季時，這將對盈利能力和第四季度產生一些壓力。

Great. And then just I'm curious, the performance that you saw in the quarter between your wholesale business, which I think is still pretty small in DTC. And then how you're thinking about those two as we look out over the next three to five years.

偉大的。然後我很好奇，你們在本季看到的批發業務的表現，我認為在 DTC 中仍然很小。然後，當我們展望未來三到五年時，您如何看待這兩個問題。

I appreciate it. So look, I see us as both a platform and an omnichannel player. I think when you work backwards from our mission. We want to relentlessly create and carry high performance Planet first products, but like We also aspire to transform the industry. And what that means is we have to meet customers where they are.

我很感激。因此，我認為我們既是一個平台，也是一個全通路參與者。我認為當你從我們的使命開始倒退時。我們希望不懈地創造和攜帶高性能的地球第一產品，但我們也渴望改變產業。這意味著我們必須滿足客戶的需求。

And so what I'm proud of on the retail side on this omnichannel side are we are making progress. It's been a big learning experience but we are gaining distribution, as we mentioned on the call with key and Wegmans. Outside of that, I haven't personally looked at our product lineup for 2024 and the like target. I think we I am personally excited about what will be showing up on the shelves in 2024.

因此，我在全通路零售方面感到自豪的是我們正在取得進展。這是一次重要的學習經歷，但正如我們在與 key 和 Wegmans 的電話會議中提到的那樣，我們正在獲得分銷。除此之外，我還沒有親自研究過我們 2024 年的產品陣容及類似目標。我認為我們個人對 2024 年將出現在貨架上的產品感到興奮。

So we see retail still like that retail channel as a a clear growth arm, I still see opportunity indeed to see that there are just such a large TAM and we are the leading sustainable products player. We have 5 million customers, which is this tremendous asset.

因此，我們認為零售業仍然像零售通路一樣作為一個明顯的成長部門，我仍然看到確實有機會看到有這麼大的TAM，而我們是領先的可持續產品參與者。我們有 500 萬客戶，這是一筆龐大的資產。

Yes, some of them aren't inactive, but just give us a chance to get back in front of them tell our story. And as we keep innovating on the core customer experience. I just see big opportunity on DTC as we look forward. Yes, we see growth in the retail channel on an ongoing basis going forward. But IC. D to C is also a bit limitless.

是的，他們中的一些人並不是不活躍，而是讓我們有機會回到他們面前講述我們的故事。隨著我們在核心客戶體驗上不斷創新。我只是在 DTC 上看到了巨大的機遇，我們對此充滿期待。是的，我們看到零售通路未來將持續成長。但是IC。 D到C也有點無限制。

Great. And then if I could just ask one more question. I'm curious just how you're seeing the consumer handle the macro environment, if you've seen any pullback, I guess in purchases or if you think there's any trade down going on right now that's impacting growth.

偉大的。然後我能否再問一個問題。我很好奇您如何看待消費者應對宏觀環境的情況，我猜您是否看到了購買方面的任何回調，或者您是否認為目前正在發生任何影響增長的貿易下降。

As you know, we think consumer consumers still feel pressure, but I actually believe our tailwinds are greater than any headwinds. I mean, we are really well positioned as this B-to-C companies has made. The hard decision to is yes, comping some of that advertising spend and pullback. But I think unlike some of those other companies that have kind of had a similar experience, they haven't and we made the hard decisions on the cost structure that we have.

如您所知，我們認為消費者仍然感到壓力，但我實際上相信我們的順風大於任何逆風。我的意思是，正如 B2C 公司所取得的那樣，我們確實處於有利地位。艱難的決定是肯定的，補償一些廣告支出和撤回。但我認為，與其他一些有類似經驗的公司不同，他們沒有，我們對現有的成本結構做出了艱難的決定。

So in terms of the macro environment, we're just not seeing that many headwinds compared to what our cohort curves would suggest, which is really a story around where we're positioned today. And in terms of the next 12 months, how we can really drive improvement in the core customer experience while still winning with sustainability and doing that on a profitable manner.

因此，就宏觀環境而言，與我們的隊列曲線所顯示的情況相比，我們只是沒有看到太多阻力，這實際上是我們今天所處位置的故事。就未來 12 個月而言，我們如何才能真正推動核心客戶體驗的改善，同時仍以永續發展並以獲利的方式獲勝。

Great. That sounds good. Thanks so much for all the details and good luck the rest of the year, of course, thank you.

偉大的。聽起來很好。非常感謝您提供的所有細節，祝您今年餘下的時間一切順利，當然，謝謝。

Appreciate it.

欣賞它。

Yes. And it does appear that there are no further questions at this time. I will now turn it back to the speakers for any closing remarks.

是的。目前看來確實沒有其他問題了。現在我將把它轉回給發言者以供結束發言。

Thank you very much. For joining us today, and we look forward to future results going. Thank you so much.

非常感謝。今天加入我們，我們期待未來的成果。太感謝了。

This does conclude today's program. Thank you for your participation. You may disconnect at any time have a wonderful afternoon.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，度過一個美好的下午。