Nautilus Inc (NLS) 2023 Q4 法說會逐字稿

Good day, and welcome to the Nautilus Inc. Fourth Quarter 2023 Earnings Results Conference Call. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Mr. John Mills with ICR. Please go ahead, sir.

美好的一天，歡迎來到 Nautilus Inc. 2023 年第四季度收益結果電話會議。 （操作員說明）請注意，今天的活動正在錄製中。我現在想將會議轉交給 ICR 的 John Mills 先生。請繼續，先生。

Thank you. Good afternoon, everyone. Welcome to Nautilus' Fourth Quarter and Year-End Fiscal 2023 Conference Call. Participants on the call today from Nautilus are Jim Barr, Chief Executive Officer; and Aina Konold, Chief Financial Officer. Please note, this call is being webcast and will be available for replay for the next 14 days. We will be happy to take your questions at the conclusion of our prepared remarks.

謝謝。大家下午好。歡迎參加 Nautilus 2023 財年第四季度和年終電話會議。今天來自 Nautilus 的電話會議的參與者是首席執行官 Jim Barr；和首席財務官 Aina Konold。請注意，此電話會議正在進行網絡直播，未來 14 天內可以重播。我們很樂意在準備好的評論結束時回答您的問題。

Our earnings press release was issued today at 1:05 p.m. Pacific Time and may be downloaded from our website at nautilusinc.com on the Investor Relations page. The earnings release includes a reconciliation of the non-GAAP financial measures mentioned in today's call to the most directly comparable GAAP measures. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2020. For today's call, we have a presentation that management will refer to during their prepared remarks.

我們的收益新聞稿於今天下午 1:05 發布。太平洋時間，可從我們網站 nautilusinc.com 的投資者關係頁面下載。收益發布包括對今天呼籲中提到的非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬。請注意，除非另有說明，否則本次電話會議中的所有比較都將與我們在 2020 年可比期間的結果進行比較。對於今天的電話會議，我們有一個演示文稿，管理層將在他們準備好的發言中參考。

On Slide 2 is our full safe harbor statement, which we ask everyone to read. You can access the presentation now by going to nautilusinc.com, then click on the Investors tab and then click on the Events and Webcast and the presentation will be there for your viewing. I'd like to remind everyone that during this conference call, Nautilus management will make certain forward-looking statements. These forward-looking statements are based on the beliefs of management and information currently available to us as of today. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control and ability to predict.

在幻燈片 2 上是我們完整的安全港聲明，我們要求每個人都閱讀。您現在可以訪問 nautilusinc.com 訪問演示文稿，然後單擊“投資者”選項卡，然後單擊“活動和網絡廣播”，演示文稿將在那裡供您查看。我想提醒大家，在本次電話會議中，Nautilus 管理層將做出一定的前瞻性陳述。這些前瞻性陳述基於管理層的信念和我們目前可獲得的信息。此類前瞻性陳述並非對未來業績的保證，因此，不應過分依賴它們。我們的實際結果將受到已知和未知的風險、趨勢、不確定性和我們無法控制和預測的因素的影響。

For additional information concerning these factors, please refer to the safe harbor statement and to our SEC filings, which can be found in the Investor Relations section of our website. And with that, it is my pleasure to turn the call over to Nautilus' CEO, Jim Barr.

有關這些因素的更多信息，請參閱安全港聲明和我們向美國證券交易委員會提交的文件，這些文件可在我們網站的投資者關係部分找到。因此，我很高興將電話轉給 Nautilus 的首席執行官吉姆巴爾。

Thank you, John, and thank you all for joining us. I would like to begin by highlighting 4 key topics we'll be focusing on during today's call. First, by leveraging our Direct business and through strong cost control, we delivered Q4 and fiscal '23 results significantly better than our guidance provided in February.

謝謝你，約翰，感謝大家加入我們。我想首先強調我們將在今天的電話會議上關注的 4 個關鍵主題。首先，通過利用我們的直接業務和強大的成本控制，我們交付的第四季度和 23 財年業績明顯好於我們 2 月份提供的指導。

Second, we have taken deliberate actions to strengthen our balance sheet and sharpen our focus which better positions us to navigate the current environment. Third, we expect our efforts to drive free cash flow and return the company to profitability, resulting in significant year-over-year improvement in adjusted EBITDA for the full year fiscal 2024. Finally, we remain confident in the long-term industry opportunity and our own position due to our leading brands, comprehensive equipment portfolio and omnichannel approach as we continue on our path to becoming a leader in connected fitness.

其次，我們已採取慎重的行動來加強我們的資產負債表並加強我們的重點，從而使我們更好地應對當前環境。第三，我們預計我們將努力推動自由現金流並使公司恢復盈利，從而使 2024 財年全年調整後的 EBITDA 同比顯著改善。最後，我們對長期的行業機會充滿信心，我們的地位歸功於我們的領先品牌、全面的設備組合和全渠道方法，因為我們將繼續努力成為互聯健身領域的領導者。

Our fourth quarter and full year results demonstrated our ability to navigate industry and broader macro challenges. For fiscal year '23, we delivered net sales of $287 million including direct net sales of $139 million, 16% growth versus fiscal year '20. Strength in Direct was driven by demand for our broad portfolio of strength and cardio offerings.

我們的第四季度和全年業績證明了我們應對行業和更廣泛的宏觀挑戰的能力。在 23 財年，我們實現了 2.87 億美元的淨銷售額，其中包括 1.39 億美元的直接淨銷售額，與 20 財年相比增長了 16%。 Direct 的實力是由對我們廣泛的力量和有氧運動產品組合的需求推動的。

In the fourth quarter, we delivered net sales of $68 million, including Direct net sales of $42 million as we continue to see a return to pre-pandemic seasonal trends. Within Direct, we saw momentum in strength, which was up 22% in the quarter versus Q4 fiscal '20, reflecting the enhancements we've made to our offerings in this category.

第四季度，我們實現了 6800 萬美元的淨銷售額，其中包括 4200 萬美元的直接淨銷售額，因為我們繼續看到大流行前季節性趨勢的回歸。在 Direct 中，我們看到了強勁勢頭，與 20 財年第四季度相比，本季度增長了 22%，反映了我們對該類別產品的改進。

On the bottom line, our operational excellence efforts enabled us to deliver Q4 and fiscal year '23 adjusted EBITDA above expectations. (inaudible) focus of our operational excellence is centered around inventory management and per our plan, we continue to significantly improve our inventory position in the fourth quarter. We feel very well positioned as we enter our seasonally softer months to provide our customers the products they want, when they want them and where they want to buy them.

歸根結底，我們卓越的運營努力使我們能夠實現超出預期的第四季度和 23 財年調整後的 EBITDA。 （聽不清）我們卓越運營的重點是庫存管理，根據我們的計劃，我們將在第四季度繼續顯著改善我們的庫存狀況。當我們進入季節性疲軟的月份時，我們感覺自己處於非常有利的位置，可以在客戶需要的時間和地點為他們提供他們想要的產品。

I'm proud of our continued momentum on scaling our differentiated digital offering as we exceeded our growth targets for JRNY members. We added more than 61,000 JRNY members in Q4 and ended the fiscal year with approximately 508,000 JRNY members, growth of 56% year-over-year.

隨著我們超越 JRNY 會員的增長目標，我為我們在擴展差異化數字產品方面的持續勢頭感到自豪。我們在第四季度增加了超過 61,000 名 JRNY 會員，並在本財年結束時擁有約 508,000 名 JRNY 會員，同比增長 56%。

Of these members, 156,000 were subscribers, representing 41% growth year-over-year.

在這些成員中，有 156,000 名訂閱者，同比增長 41%。

We are encouraged to see that sell-through to consumers are (inaudible) progressing. However, retailers continue to take a conservative approach across the home fitness category in light of the macroeconomic environment. We expect this to continue through the first half of fiscal 2024.

我們很高興看到向消費者的銷售正在（聽不清）取得進展。然而，鑑於宏觀經濟環境，零售商繼續對家庭健身類別採取保守態度。我們預計這種情況將持續到 2024 財年上半年。

As a result, we took proactive measures to reset the cost structure of our business during the fourth quarter, which are expected to yield $30 million in cost savings on an annualized basis. We remain committed to our omnichannel approach. We have been successful in doubling our Direct segment market share since 2020 and we believe retail will remain an important long-term component of our business model when market conditions improve.

因此，我們採取了積極措施，在第四季度重新調整了我們業務的成本結構，預計每年可節省 3000 萬美元的成本。我們仍然致力於我們的全渠道方法。自 2020 年以來，我們已成功將直銷市場份額翻了一番，我們相信，當市場狀況改善時，零售仍將是我們商業模式的重要長期組成部分。

To further enhance our ability to navigate near-term industry challenges, earlier this month, we announced several actions to enhance our balance sheet. This included the sale of noncore assets, including the Nautilus brand trademark assets and related licenses for about $13 million. This enables us to continue to streamline our focus on our top brands and improve our debt position as we leverage the net proceeds to pay down part of our term loan. The sale of the Nautilus brand reflects a deliberate strategic branding approach we announced 2 years ago and will have minimal ongoing impact.

為了進一步增強我們應對近期行業挑戰的能力，本月早些時候，我們宣布了多項改善資產負債表的行動。這包括以約 1300 萬美元的價格出售非核心資產，包括 Nautilus 品牌商標資產和相關許可。這使我們能夠繼續精簡我們對頂級品牌的關注並改善我們的債務狀況，因為我們利用淨收益償還部分定期貸款。 Nautilus 品牌的出售反映了我們在 2 年前宣布的深思熟慮的品牌戰略方法，並且將產生最小的持續影響。

Our Bowflex, Schwinn and JRNY brands generate over 95% of our revenue. We are in the process of reevaluating our corporate brand identity and look forward to updating you on our plans in the future.

我們的 Bowflex、Schwinn 和 JRNY 品牌產生了我們超過 95% 的收入。我們正在重新評估我們的企業品牌標識，並期待在未來為您更新我們的計劃。

Additionally, as Aina will discuss later, subsequent to the quarter end, we further improved our liquidity by amending our credit agreements. The sale of noncore assets, amendments to our credit agreements, and substantially improved inventory position provide us with enhanced liquidity and a stronger balance sheet. At the same time, our comprehensive review of strategic alternatives is ongoing. Our Board remains focused on identifying partner opportunities to accelerate the company's strategic transformation and enhance shareholder value. We have no additional information to share regarding this process at this time.

此外，正如 Aina 稍後將討論的那樣，在本季度末之後，我們通過修改信貸協議進一步改善了我們的流動性。非核心資產的出售、信貸協議的修訂以及庫存狀況的大幅改善為我們提供了增強的流動性和更強大的資產負債表。與此同時，我們正在對戰略備選方案進行全面審查。我們的董事會仍然專注於尋找合作夥伴機會，以加速公司的戰略轉型和提高股東價值。目前，我們沒有關於此過程的其他信息可以分享。

Looking ahead, we remain confident in the long-term industry opportunity. Our research continues to show the steadiness of the shift in -- to home exercise as a result of changes in long-term workout habits favoring home fitness and the strong opportunity with Connected Fitness. We have made significant progress over the last 2 years on our long-term strategic transformation under our North Star strategy, what we believe will make the company stronger as our industry normalizes post pandemic.

展望未來，我們對長期的行業機遇充滿信心。我們的研究繼續表明，由於有利於家庭健身的長期鍛煉習慣發生變化，以及 Connected Fitness 帶來的巨大機遇，家庭鍛煉的轉變正在穩步進行。在過去的兩年裡，我們在北極星戰略下的長期戰略轉型方面取得了重大進展，我們相信隨著我們的行業在大流行後正常化，這將使公司更加強大。

Today, I want to highlight our progress on 3 key areas. Under our consumer-first mindset, we have implemented better consumer segment targeting and optimized our media mix, which is driving enhanced return on advertising investment. We are seeing the benefits of this in our demand for our equipment, particularly our fast-moving top sellers. This is highlighted by the strength of our direct business where we have the strongest visibility into end user demand and we are excited to have an exciting pipeline of new product offerings and refresh Bowflex branding to be introduced in fiscal 2024.

今天，我想強調我們在 3 個關鍵領域取得的進展。在我們以消費者為先的理念下，我們實施了更好的消費者細分定位並優化了我們的媒體組合，這正在推動廣告投資回報率的提高。我們在對我們設備的需求中看到了這方面的好處，尤其是我們快速移動的暢銷產品。我們直接業務的實力凸顯了這一點，在這些業務中，我們對最終用戶需求的了解最為深入，我們很高興擁有一系列令人興奮的新產品系列，並在 2024 財年推出全新的 Bowflex 品牌。

We are achieving our transformative goal to turn supply chain into a competitive advantage. In addition to tangible gross margin improvement via lower landed product costs, we have significantly enhanced our delivery times to retailers, permitting them to order closer to when they need the product, and we are rolling out a better last mile delivery process for our Direct consumers. We are also making significant progress in scaling a differentiated digital offering. Tangible results include transitioning our cardio portfolio to Connected Fitness as an installed base for JRNY, introducing vision and motion tracking technologies to our strength portfolio, enabling members to receive personalized real-time form coaching and rep counting using their mobile devices.

我們正在實現將供應鏈轉變為競爭優勢的轉型目標。除了通過降低到岸產品成本提高毛利率外，我們還顯著縮短了對零售商的交貨時間，使他們能夠在更接近需要產品的時間訂購，並且我們正在為我們的直接消費者推出更好的最後一英里交付流程.我們還在擴展差異化數字產品方面取得了重大進展。有形的成果包括將我們的有氧運動組合轉變為 Connected Fitness 作為 JRNY 的安裝基礎，將視覺和運動跟踪技術引入我們的力量組合，使會員能夠使用他們的移動設備接收個性化的實時形式指導和重複計數。

This quarter, we introduced a lower-priced digital offering for members who only wish to use JRNY on their mobile devices. We've built JRNY Connected Fitness experiences to be consumed across our equipment portfolio and off equipment so that anyone can experience the benefits of Connected Fitness. This has resulted in achievement of our 500,000 member goal. We have laid a strong foundation for JRNY, delivering continued total member growth. Because we have already built so much of what I just mentioned, we've been able to reduce near-term spend on JRNY and keep Connected Fitness experiences much more affordable than our key competitors, especially important in a volatile economy.

本季度，我們為只想在移動設備上使用 JRNY 的會員推出了價格較低的數字產品。我們打造了 JRNY Connected Fitness 體驗，供我們的設備組合和非設備使用，以便任何人都可以體驗 Connected Fitness 的好處。這導致我們實現了 500,000 名會員的目標。我們為 JRNY 奠定了堅實的基礎，實現了會員總數的持續增長。因為我們已經建立了我剛才提到的這麼多東西，所以我們能夠減少 JRNY 的近期支出，並使 Connected Fitness 體驗比我們的主要競爭對手更實惠，這在動蕩的經濟中尤其重要。

Moving forward, we'll continue to focus on making advancements in quality and adaptive personal training, which we believe will drive engagement and support the conversion to paid subscribers over time.

展望未來，我們將繼續專注於提高質量和適應性個人培訓，我們相信隨著時間的推移，這將推動參與並支持向付費用戶的轉變。

I would now like to touch on our fiscal 2024 outlook. At the same time that we're seeing a reversion to pre-pandemic seasonality of demand, the macroeconomic environment has continued to be difficult causing our retail partners to maintain their conservative inventory positions. We are navigating these industry challenges by taking steps to operate more efficiently and enhance our balance sheet. While significant uncertainty remains in top line for fiscal '24, especially in retail, we believe that a continued focus on our Equipment business, our Direct business and operational excellence efforts, including cost control and margin enhancement, create a clear path back to profitability.

我現在想談談我們 2024 財年的展望。在我們看到需求季節性回歸大流行前的同時，宏觀經濟環境仍然困難重重，導致我們的零售合作夥伴維持其保守的庫存狀況。我們正在通過採取措施提高運營效率和改善我們的資產負債表來應對這些行業挑戰。儘管 24 財年的收入仍然存在重大不確定性，尤其是在零售領域，但我們認為，繼續關注我們的設備業務、我們的直接業務和卓越運營的努力，包括成本控制和利潤率提高，將為恢復盈利開闢一條清晰的道路。

As such, we are guiding to a significant year-over-year improvement in adjusted EBITDA for the full year of 2024. I will now turn it over to Aina, who will give us more detail on the fourth quarter and full year results and our fiscal '24 guidance. Aina?

因此，我們正在指導 2024 年全年調整後 EBITDA 的同比顯著改善。我現在將其轉交給 Aina，她將向我們提供有關第四季度和全年業績以及我們的更多詳細信息財政 '24 指南。艾娜？

Thank you, Jim, and good afternoon, everyone. Today, I'll be speaking to total company results for Q4 fiscal year '23 and will provide guidance for full year fiscal year '24. Please go to our website to view our press release and slides for additional information on Q4 and full year results.

謝謝你，吉姆，大家下午好。今天，我將談到 23 財年第四季度的公司總業績，並將為 24 財年全年提供指導。請訪問我們的網站查看我們的新聞稿和幻燈片，了解有關第四季度和全年業績的更多信息。

Turning now to Slide 9, total company P&L results for the quarter. In addition to comparing this year's revenue to last year, we'll also be comparing to more normalized pre-pandemic results in fiscal year '20. Additionally, as we disclosed on May 2, we've made progress this past quarter on our previously stated strategy of rationalizing our brand portfolio by selling the Nautilus brand. We took advantage of fitness season demand and sold through a significant portion of our Nautilus branded inventory.

現在轉到幻燈片 9，本季度公司總損益結果。除了將今年的收入與去年進行比較外，我們還將與 20 財年更正常化的大流行前結果進行比較。此外，正如我們在 5 月 2 日披露的那樣，我們在上個季度通過出售 Nautilus 品牌在我們之前提出的合理化品牌組合的戰略方面取得了進展。我們利用健身季節的需求，通過我們 Nautilus 品牌庫存的很大一部分進行銷售。

Net sales for the fourth quarter were $68 million, down 43% versus last year and down 19% versus the same quarter in fiscal year '20, excluding Octane. Versus fiscal year '20 Direct declined by about 12%, driven by cardio as strength was up 22%. Retail was down 29% as retailers continue to be more conservative with their inventory purchases given the macro environment. Gross profit was $11 million and gross margins were 16%, down about 2 points from LY.

第四季度淨銷售額為 6800 萬美元，與去年同期相比下降 43%，與 20 財年同期相比下降 19%，不包括辛烷值。與 20 財年相比，Direct 下降了約 12%，受有氧運動的推動，力量增長了 22%。鑑於宏觀環境，零售商在庫存採購方面繼續更加保守，零售業下降了 29%。毛利潤為 1100 萬美元，毛利率為 16%，較 LY 下降約 2 個百分點。

I'll now go through the drivers of the gross margin decline. 250 basis points were due to increased discounting driven by the decision to exit Nautilus branded product. 200 basis points were due to higher outbound freight impacted by increased sales of Nautilus branded treadmills. 150 basis points deleverage in logistics overhead. Although we spent less in absolute dollars year-over-year, total company sales declined more than costs, resulting in deleverage.

我現在將討論毛利率下降的驅動因素。 250 個基點是由於退出 Nautilus 品牌產品的決定導致折扣增加。 200 個基點是由於 Nautilus 品牌跑步機銷量增加導致出境運費增加。物流間接費用減少 150 個基點。儘管我們的絕對美元支出同比減少，但公司總銷售額的下降幅度超過成本，導致去槓桿化。

Costs are lower because we closed the Portland, D.C. and exited incremental storage locations needed to house excess inventory. 60 basis points of deleverage related to JRNY COGS. Similar to logistics overhead, while year-over-year dollar spend is down, total company sales declined more than costs, resulting in deleverage. These margin declines were offset by 500 basis points of expansion due to lower landed product costs.

成本較低是因為我們關閉了波特蘭特區，並退出了存放過剩庫存所需的增量存儲位置。與 JRNY COGS 相關的去槓桿化 60 個基點。與物流管理費用類似，雖然美元支出同比下降，但公司總銷售額下降幅度大於成本下降幅度，導致去槓桿化。由於到岸產品成本降低，這些利潤率下降被 500 個基點的擴張所抵消。

In the U.S., we've now cleared through older inventory that was burdened by pandemic-related detention and demurrage and higher inbound freight. New imports are benefiting from our efforts to optimize our freight inhibition network, resulting in lower inbound freight. Additionally, we've negotiated lower factory costs for our top SKUs.

在美國，我們現在已經清理了舊庫存，這些庫存因與大流行相關的滯留費和滯期費以及更高的入境運費而負擔重重。新進口受益於我們優化貨運抑製網絡的努力，從而降低了入境運費。此外，我們已經為我們的頂級 SKU 協商降低工廠成本。

Excluding Nautilus branded products, Q4 '23 net sales would have been $62 million and Q4 '23 gross margins would have been 20%, 250 basis points higher than last year.

不包括 Nautilus 品牌產品，23 年第 4 季度淨銷售額為 6200 萬美元，23 年第 4 季度毛利率為 20%，比去年高出 250 個基點。

Turning now to adjusted operating expenses. The next few lines of the P&L have been adjusted to exclude acquisition and other costs related to the purchase of VAY as well as restructuring and exit charges. Please see our press release for a reconciliation to GAAP.

現在轉向調整後的運營費用。 P&L 的接下來幾行已經過調整，以排除與購買 VAY 相關的收購和其他成本以及重組和退出費用。請參閱我們的新聞稿以了解與 GAAP 的對賬。

Adjusted operating expenses were $25 million, down $17 million or 40% versus last year. The key drivers of the decrease were $10 million less in advertising, which was $5 million this year versus $15 million last year, $4 million decrease in personnel expenses and $2 million decrease in contracted services related to the reduction in force we implemented in February 2023 and about $1 million decrease in variable selling and marketing expenses.

調整後的運營費用為 2500 萬美元，比去年減少 1700 萬美元或 40%。減少的主要驅動因素是廣告減少 1000 萬美元，今年為 500 萬美元，去年為 1500 萬美元，人事費用減少 400 萬美元，與我們在 2023 年 2 月實施的裁員相關的合同服務減少 200 萬美元，以及可變銷售和營銷費用減少約 100 萬美元。

Excluded from adjusted operating expenses are restructuring and exit charges of about $2.5 million in Q4. Adjusted operating loss was $15 million this year compared to $21 million last year, an improvement of $6 million. And adjusted EBITDA loss was $12.6 million compared to $16.9 million last year. Excluding the impact of selling Nautilus branded product at deep discounts, adjusted EBITDA loss would have been $10.6 million.

調整後的運營費用中不包括第四季度約 250 萬美元的重組和退出費用。與去年的 2100 萬美元相比，今年調整後的運營虧損為 1500 萬美元，減少了 600 萬美元。調整後的 EBITDA 虧損為 1260 萬美元，而去年為 1690 萬美元。排除以大幅折扣銷售 Nautilus 品牌產品的影響，調整後的 EBITDA 虧損為 1,060 萬美元。

Turning now to the balance sheet as of March 31. Cash was $18 million, up $4 million versus year-end '22. Per our plan, inventory was $47 million, down 58% versus March 2022 and down 71% from our peak of $163 million at September 2021. AR was $21 million, and trade payables were $29 million, both down from year-end '22. Debt was $28 million, and we have $15 million available for borrowing, bringing our liquidity at the end of March to $33 million.

現在轉向截至 3 月 31 日的資產負債表。現金為 1800 萬美元，比 22 年底增加了 400 萬美元。根據我們的計劃，庫存為 4700 萬美元，比 2022 年 3 月下降了 58%，比 2021 年 9 月的峰值 1.63 億美元下降了 71%。AR 為 2100 萬美元，貿易應付賬款為 2900 萬美元，均低於 22 年底。債務為 2800 萬美元，我們有 1500 萬美元可供借款，使我們在 3 月底的流動資金達到 3300 萬美元。

For Q4, free cash flow was positive $29 million, an improvement of $34 million versus last quarter and an improvement of $8 million versus last year. For the year, free cash flow was positive $6 million versus negative $80 million last year, an improvement of $86 million. Our focus on operational excellence showing this difficult macroeconomic environment, is reflected in the meaningful improvement in free cash flow. Additionally, as we reported on May 2, we used the proceeds from our asset sales to pay down part of our term loan and to amend our ABL, both of which improved our overall liquidity. As of May 2, our cash balance was $19 million, while our total borrowings were only $18 million.

第四季度，自由現金流為正 2900 萬美元，比上一季度增加 3400 萬美元，比去年增加 800 萬美元。這一年，自由現金流為正 600 萬美元，而去年為負 8000 萬美元，增加了 8600 萬美元。我們對卓越運營的關注顯示了這種艱難的宏觀經濟環境，這反映在自由現金流的顯著改善上。此外，正如我們在 5 月 2 日報告的那樣，我們使用資產出售所得款項償還了部分定期貸款並修改了我們的 ABL，這兩者都改善了我們的整體流動性。截至 5 月 2 日，我們的現金餘額為 1900 萬美元，而我們的總借款僅為 1800 萬美元。

Turning now to guidance. We are providing guidance for full year revenue, full year adjusted EBITDA and year-end '24 JRNY members. We're guiding to full year sales of between $270 million and $300 million. We expect retailers to continue being conservative with reorders for the first half of the fiscal year, and therefore, we expect the second half to represent between 60% and 65% of revenue. Consistent with the typical seasonality of our business, Q1 is expected to be the lowest revenue quarter of the year. As a percent of full year, sales is expected to be lower than last year driven by softness in our retail segment. With the sale of the Nautilus brand, full year royalty income is expected to be $1.8 million.

現在轉向指導。我們正在為全年收入、全年調整後的 EBITDA 和年底的 '24 JRNY 成員提供指導。我們指導全年銷售額在 2.7 億美元至 3 億美元之間。我們預計零售商將繼續對本財年上半年的再訂單持保守態度，因此，我們預計下半年將佔收入的 60% 至 65%。與我們業務的典型季節性一致，第一季度預計將是一年中收入最低的季度。由於我們零售部門的疲軟，預計銷售額佔全年的百分比將低於去年。隨著 Nautilus 品牌的出售，全年特許權使用費收入預計為 180 萬美元。

We're focused on returning to profitability and are targeting to achieve breakeven adjusted EBITDA for fiscal year '24. However, given the uncertain macro in our net revenue guidance range, we're guiding to a range of adjusted EBITDA loss of negative $15 million to breakeven. To achieve breakeven adjusted EBITDA, we need $47 million of year-over-year improvement. $30 million of this will come from lower department and logistics facilities costs, resulting from the restructuring that we did in February 2023, which fundamentally changed the overhead of the business. These items will result in lower operating expenses and gross margin expansion as some of these costs are part of COGS.

我們專注於恢復盈利能力，目標是在 24 財年實現盈虧平衡調整後的 EBITDA。然而，鑑於我們淨收入指導範圍內的不確定宏觀因素，我們正在指導一系列調整後的 EBITDA 虧損為負 1500 萬美元以達到盈虧平衡。為了實現盈虧平衡調整後的 EBITDA，我們需要 4700 萬美元的同比改善。其中 3000 萬美元將來自較低的部門和物流設施成本，這是由於我們在 2023 年 2 月進行的重組，從根本上改變了業務的管理費用。這些項目將導致運營費用降低和毛利率擴大，因為其中一些成本是銷貨成本的一部分。

The rest of the EBITDA improvement will come from lower landed product costs, which will result in further gross margin expansion. In the U.S., we've sold through the older inventory that was burdened with the tension and demurrage, higher inbound freight than the previous factory calls. All of the capitalized attention and demurrage costs have already been released and new inventories coming in at lower negotiated factory rates and lower inbound freight. Partially offsetting these gross margin gains will be some deleverage in JRNY COGS as fiscal year '24 dollar spend is planned to be higher year-over-year primarily due to increased depreciation.

其餘的 EBITDA 改善將來自較低的到岸產品成本，這將導致毛利率進一步擴大。在美國，我們已經賣完了舊庫存，這些庫存因緊張和滯期費而負擔重，進港運費高於之前的工廠電話。所有資本化的注意力和滯期費成本都已經釋放，新庫存以較低的議定工廠費率和較低的入站運費進入。 JRNY COGS 的一些去槓桿化部分抵消了這些毛利率收益，因為主要由於折舊增加，24 財年的美元支出計劃同比增加。

At this time, we're not expecting any improvement in the discounting environment. While inventory has been rightsized, our competitors and the retailers continue to be pressured on the inventory front. So we have planned discounts to be flattish year-over-year. Lastly, we expect JRNY members to be about 625,000 by year-end fiscal year '24. Like many other companies, we are preparing for a continuation of the difficult operating environment. We will remain disciplined with managing our inventory and our costs and we will look to flex all available levers to strengthen our balance sheet and ensure that our liquidity remains sufficient. I'll turn it over to Jim now for his final comments.

目前，我們預計折扣環境不會有任何改善。雖然庫存已經合理調整，但我們的競爭對手和零售商繼續在庫存方面面臨壓力。因此，我們計劃折扣與去年同期持平。最後，我們預計到 24 財年年底，JRNY 成員將達到約 625,000 人。與許多其他公司一樣，我們正在為艱難的經營環境的延續做準備。我們將在管理我們的庫存和成本方面保持紀律，我們將尋求靈活運用所有可用的槓桿來加強我們的資產負債表並確保我們的流動性保持充足。我現在將其轉交給 Jim 以徵求他的最終意見。

Thank you, Aina. The short-term challenges of the home fitness industry post pandemic are well known. I'm proud of how we've demonstrated strong agility and navigated the difficult operating environment throughout fiscal 2023 and with proactive inventory management and cost actions.

謝謝你，艾娜。大流行後家庭健身行業的短期挑戰是眾所周知的。我為我們如何在整個 2023 財年展示出強大的敏捷性和應對困難的運營環境以及積極的庫存管理和成本行動而感到自豪。

Long-term favorable shift to home fitness is enduring. We excel at equipment and are building and scaling a strong, differentiated digital platform, placing us on the right side of industry trends. Looking ahead, we will continue to take the necessary actions that will best position us to drive cash flow and return to profitability.

向家庭健身的長期有利轉變是持久的。我們擅長設備，正在構建和擴展一個強大的、差異化的數字平台，使我們站在行業趨勢的正確一邊。展望未來，我們將繼續採取必要的行動，使我們能夠最好地推動現金流並恢復盈利。

I would like to close by thanking our employees for their persistence, positivity and problem solving. Each day, I see more reasons to be proud to be your teammate. And with that, I'd like to turn it over for questions. Operator?

最後，我要感謝我們的員工的堅持、積極和解決問題的能力。每一天，我都會看到更多為成為您的隊友而感到自豪的理由。有了這個，我想把它轉過來提問。操作員？

(Operator Instructions) Our first question comes from the line of Michael Swartz with Truist.

（操作員說明）我們的第一個問題來自 Michael Swartz 與 Truist 的對話。

Just maybe wanted to touch on the -- I'm just trying to think through kind of the moving parts. I know you're benefiting a lot in the fiscal '24 from cost reductions, but help us understand just in terms of maybe the sale of the Nautilus business. And I think you said royalty revenue and presumably income will be lower year-over-year. Maybe just give us a sense of what that actually presents in terms of a year-over-year headwind to revenue and earnings, if that makes sense.

也許只是想談談——我只是想通過各種活動部分來思考。我知道你在 24 財年從成本削減中受益匪淺，但幫助我們理解可能只是出售 Nautilus 業務。我想你說過特許權使用費收入和收入可能會同比下降。如果有意義的話，也許只是讓我們了解在收入和收益的同比逆風方面實際呈現的情況。

Aina, you may want to jump in on that one.

艾娜，你可能想加入那個。

I'll take that one. So the royalty revenue is declining by about $1.6 million. So it's not a big number, and that drops down almost directly to EBITDA. So it's a reduction in EBITDA that we had to overcome of about $1.6 million. And then for our guidance of adjusted EBITDA, we've excluded any impact from the gain on the sale of the Nautilus brand.

我會拿那個。因此，特許權使用費收入下降了約 160 萬美元。所以這不是一個大數字，而且幾乎直接下降到 EBITDA。因此，我們必須克服約 160 萬美元的 EBITDA 減少。然後，對於我們調整後的 EBITDA 的指導，我們排除了收益對 Nautilus 品牌銷售的任何影響。

And then as we -- just to add on that, the Nautilus sales really weren't driving very much. We would kind of end-of-lifing those. And so we don't expect there to be much of an impact on the top line of the business. It's all been really driven by Bowflex, Schwinn and JRNY.

然後正如我們 - 只是為了補充這一點，Nautilus 的銷售確實並沒有太大的推動。我們會終結那些。因此，我們預計不會對業務收入產生太大影響。這一切都是由 Bowflex、Schwinn 和 JRNY 真正推動的。

Got you. Okay. Perfect. And then maybe talk about -- I think you referenced different pricing tiers for JRNY going forward. Maybe just talk about the strategic rationale of doing that and maybe what you expect to gain out of it?

明白了好的。完美的。然後也許可以談談——我認為你為 JRNY 的未來參考了不同的定價等級。也許只是談談這樣做的戰略理由以及您希望從中獲得什麼？

Sure. So JRNY so far has been priced very, very reasonably at $19.99 a month or $149 a year, but it was essentially 1 tier of pricing which meant perfectly great value proposition for people who use our equipment with an embedded screen. That would compare to some competitors well into the $40 a month, and we are less than half of that. So we're in a good spot there. But more and more people are using JRNY on just their mobile devices. Either they'll use -- (inaudible) workout on a floor or they'll now use our strength training where we do rep counting and form coaching. And so when they do that, we wanted to make it more attractive to people who are in that category, and we're only using us on their mobile devices. And so that is now $11.99 a month and that be below what our competitors' digital offering is at.

當然。因此，到目前為止，JRNY 的定價非常非常合理，為每月 19.99 美元或每年 149 美元，但它本質上是一級定價，這對於使用我們帶嵌入式屏幕的設備的人來說意味著非常好的價值主張。這與一些競爭對手每月 40 美元相比，我們還不到這個數字的一半。所以我們在那裡的位置很好。但越來越多的人只在他們的移動設備上使用 JRNY。他們要么使用--（聽不清）在地板上鍛煉，要么他們現在使用我們的力量訓練，我們在其中進行重複計數和形式指導。因此，當他們這樣做時，我們想讓它對屬於該類別的人更具吸引力，而且我們只在他們的移動設備上使用我們。所以現在每月 11.99 美元，低於我們競爭對手的數字產品。

So it's not a new thing for the industry. It's a new thing for us. And it's really kind of the evolution of our subscription business where you start with kind of one size fits all and then you try to create SKUs that fit different segments of the market. So that's the rationale.

所以這對行業來說並不是什麼新鮮事。這對我們來說是一件新鮮事。這確實是我們訂閱業務的一種演變，你從一種適合所有人的尺寸開始，然後你嘗試創建適合不同市場細分的 SKU。這就是理由。

Okay. And then maybe just one last question, if I can. I guess, within the guidance and maybe be a little difficult to parse this out exactly but what -- I guess what are you embedding or what are you expecting? I know the JRNY members are expected to be 600,000-plus but maybe just in terms of the contribution from subscribers, what is -- I guess, what does that look like, if you can on a revenue basis? And should it be profitable in 2024?

好的。如果可以的話，也許只是最後一個問題。我想，在指導範圍內，可能有點難以準確解析它，但我猜你嵌入了什麼或你期望什麼？我知道 JRNY 成員預計將超過 600,000 人，但也許只是就訂閱者的貢獻而言，我想，如果可以按收入計算，那是什麼樣的？它應該在 2024 年盈利嗎？

Aina, maybe you want to take that one?

艾娜，也許你想拿那個？

I'll try to help you. Let me -- because we don't disclose JRNY revenue, but I can tell you it's part of the Direct segment. So that's where you'll see the JRNY revenue. And then second, your last question about when will it be profitable? When we did our long-range plan, we thought that in year 3 of the plan, we would get to JRNY breakeven. And I think given the reduction in the sales that we've experienced in the last 1.5 years, that's probably been pushed out a couple of years, but we are on path to getting to JRNY breakeven.

我會盡力幫助你。讓我 - 因為我們不披露 JRNY 收入，但我可以告訴你它是直接部分的一部分。這就是您將看到 JRNY 收入的地方。其次，你的最後一個問題是什麼時候可以盈利？當我們制定長期計劃時，我們認為在計劃的第 3 年，我們將實現 JRNY 收支平衡。而且我認為，考慮到我們在過去 1.5 年中經歷的銷售額下降，這可能已經推遲了幾年，但我們正在努力實現 JRNY 收支平衡。

(Operator Instructions) Our next question comes from the line of JP Wollam with ROTH Capital Partners.

（操作員說明）我們的下一個問題來自 JP Wollam 與 ROTH Capital Partners 的合作。

First, maybe if we could just start with the revenue guidance and just kind of comparing to where we finished here, if we kind of back out the noncore assets or the noncore revenue from this past year, it looks like we look at kind of flattish growth to maybe a little bit positive. And just from a high level, I'd be curious sort of what gives you the confidence that -- given the tough environment we've had, especially given the tough retail environment, what gives you confidence that this past year may have sort of been the bottom and that we might be rightsizing and kind of on the way up from here? And is there an interesting kind of -- I don't want you to necessarily go into new products, but anything kind of new or exciting that maybe you can point to that helps get us comfortable around that guidance?

首先，也許如果我們可以從收入指引開始，並與我們在這裡完成的地方進行比較，如果我們從過去一年中退出非核心資產或非核心收入，看起來我們看起來有點持平增長可能有點積極。從高層次上講，我很好奇是什麼讓你有信心——鑑於我們所處的艱難環境，尤其是在艱難的零售環境下，是什麼讓你有信心認為過去一年可能有一直處於底部，我們可能正在調整規模並從這裡開始上升？是否有一種有趣的——我不希望你一定要進入新產品，但任何新的或令人興奮的東西，也許你可以指出，這有助於讓我們對這個指導感到滿意？

Aina, why don't you start with that one, and then I'll come in with some of the new things we have.

艾娜，你為什麼不從那個開始，然後我會帶來一些我們擁有的新東西。

Yes. So JP, you're right. I mean if you kind of look at it year-over-year, it's flattish. It's important for me to just remind everybody, when we sold a lot of Nautilus branded product in Q4, that was -- some of it may have been a trade down from customers who may have chosen to buy a Bowflex products. So we don't think it's something that we need to overcome by a lot next year because we gave a really good deal to some customers this year as we were selling through the Nautilus branded product. Our confidence comes from what we're seeing in our Direct business. We have direct line of sight to what end customers are wanting. We see them respond to our promotions. And so we feel really confident in our Direct business.

是的。所以 JP，你是對的。我的意思是，如果你年復一年地看它，它是平淡的。重要的是我要提醒大家，當我們在第四季度銷售大量 Nautilus 品牌產品時，其中一些可能是來自可能選擇購買 Bowflex 產品的客戶的交易。因此，我們認為明年我們不需要克服很多問題，因為今年我們通過 Nautilus 品牌產品銷售時，我們為一些客戶提供了非常優惠的價格。我們的信心來自我們在 Direct 業務中看到的情況。我們直接了解最終客戶的需求。我們看到他們對我們的促銷活動做出反應。因此，我們對我們的 Direct 業務充滿信心。

And then for Retail, our expectations is looking at how they're selling down that they will end up reordering in the back half, there will be some retail growth, but it won't be anywhere near what it was in prior years. And Jim, any other things to add to that?

然後對於零售業，我們的預期是看他們是如何銷售的，他們最終會在下半年重新訂購，零售業會有一些增長，但不會接近前幾年的水平。 Jim，還有什麼要補充的嗎？

Yes. Sure. I'll just -- thank you, Aina. I'll just add. We have a really nice array of new products coming out for holiday. We haven't announced them for competitive reasons, but we're very, very excited about them. And then we're coupling that with a rebranding of Bowflex. So Bowflex is a great brand, everybody knows and loves, but we've been working behind the scenes on a rebranding of that, and that will come out on these new products around that same time.

是的。當然。我只是 - 謝謝你，艾娜。我補充一下。我們為假期推出了一系列非常棒的新產品。出於競爭原因，我們尚未宣布它們，但我們對它們感到非常非常興奮。然後我們將其與 Bowflex 的品牌重塑相結合。所以 Bowflex 是一個偉大的品牌，每個人都知道並喜愛，但我們一直在幕後對其進行品牌重塑，並且將在同一時間出現在這些新產品上。

So the employees here and myself and Aina, we're all very excited about what we've got coming there. We do believe that will drive some growth there. But we've seen the category stabilize in terms of the market size as well. So that gives us a little bit of confidence. But it's all going to be about where the consumer is later in the year. You're continuing to see some strength in our Direct business. We feel like we can control that fairly well. We've been able to use advertising and promotion to drive sales consistently there. And then we hope that the retailers come back. And we think we continue to see retailers drive down those inventory balances. I was looking the other day at our [auto] retailers inventory balances, and they're down nearly 50% versus last year, ex Amazon, who continues to buy more things.

所以這裡的員工、我自己和艾娜，我們都對即將到來的事情感到非常興奮。我們確實相信這將推動那裡的一些增長。但我們也看到該類別在市場規模方面也趨於穩定。所以這給了我們一點信心。但這一切都將取決於消費者在今年晚些時候的位置。您會繼續看到我們的直接業務有一些優勢。我們覺得我們可以很好地控制它。我們已經能夠使用廣告和促銷來持續推動銷售。然後我們希望零售商回來。我們認為我們繼續看到零售商降低這些庫存餘額。前幾天我在查看我們的 [汽車] 零售商庫存餘額，與去年相比下降了近 50%，不包括繼續購買更多東西的亞馬遜。

But the rest of them combined, minus 50%. So they work down that inventory. And now it's kind of a bet on will they have a confidence to -- or how much confidence will they have going into the holiday season to get back to normal reordering.

但其餘的加起來，負 50%。所以他們減少了庫存。現在，這是在押注他們是否有信心——或者他們有多少信心進入假期以恢復正常的重新訂購。

Great. That detail is all very helpful. Maybe kind of -- that's a good segue into the next question. On sort of your retail partners, any structural changes, terminations of partnerships, anything major to call out there? And then maybe sort of the opposite of that would be any retail partners that you are finding kind of some newer success with and are having really great conversations and liking what you see. Maybe if you could just kind of give us both spectrums there so that we can better kind of understand the retail outlook for the year.

偉大的。這些細節都非常有幫助。也許有點——這是進入下一個問題的一個很好的話題。關於您的零售合作夥伴，有任何結構性變化、合作夥伴關係終止，有什麼重要的事情要做嗎？然後可能與此相反的是任何零售合作夥伴，您正在發現一些新的成功並且正在進行非常好的對話並且喜歡您所看到的。也許如果你能給我們兩個頻譜，這樣我們就可以更好地了解今年的零售前景。

Yes, for sure. Structural changes, no. I mean we are continuing to monitor that. We did have a retailer or 2 that was not in the fitness category before the pandemic. And as we're on the backside of the pandemic, we're (inaudible) see what they'll be doing. But so far, we haven't seen any structural differences in that. I mean, even when some of our competitors get added to some of our retail footprint, it's an addition of space, not a subtraction of our space. So that appears to be intact at least as we are talking today, and we'll keep our eye on that.

是肯定的。結構變化，沒有。我的意思是我們將繼續對此進行監控。在大流行之前，我們確實有一個或兩個不屬於健身類別的零售商。當我們處於大流行的背面時，我們（聽不清）看到他們會做什麼。但到目前為止，我們還沒有看到任何結構性差異。我的意思是，即使我們的一些競爭對手被添加到我們的一些零售足跡中，這也是空間的增加，而不是我們空間的減少。因此，至少在我們今天談論的時候，這似乎完好無損，我們將密切關注這一點。

In terms of retail partners, yes, we have plenty of conversations with new partners that are getting into the space. Obviously, they're not as big as the current partners we have, and they're dipping their toe into it but we've got some strong traction with those retailers who aren't as burdened with the past inventory issues that some of the major retailers are dealing with right now. So that is an opportunity. But if you stack those opportunities, they're not super high relative to the very large retailers. But we're seeing traction there. We're excited about that. We like to get into new retailer establishments, and we're seeing traction there.

就零售合作夥伴而言，是的，我們與進入該領域的新合作夥伴進行了大量對話。顯然，他們沒有我們現有的合作夥伴那麼大，他們正在涉足其中，但我們對那些不像過去的庫存問題那樣背負著某些零售商的負擔的零售商有很強的吸引力。主要零售商現在正在處理。所以這是一個機會。但如果你疊加這些機會，它們相對於超大型零售商來說並不是特別高。但我們在那裡看到了牽引力。我們對此感到興奮。我們喜歡進入新的零售機構，我們在那裡看到了牽引力。

Great. Very helpful. And one last just quick one. We had the Nautilus sale and -- just kind of curious if you can share -- I think you touched on it a little bit in the prepared remarks, but just kind of curious if you can share any updates on sort of where we are with the strategic review. I don't think there's any perhaps major large asset sales still remaining, but anything else you can kind of touch on and highlight that? Maybe has been thought of being considered? Or just where you are in the process, if there's any updates there?

偉大的。很有幫助。最後一個只是快速的一個。我們舉辦了 Nautilus 特賣會 - 只是想知道你是否可以分享 - 我想你在準備好的發言中稍微提到了它，但只是想知道你是否可以分享我們所處位置的任何更新戰略審查。我不認為可能還有任何重大的大型資產出售仍然存在，但還有什麼你可以觸及並強調的嗎？也許已經被考慮過？或者只是你在這個過程中的位置，如果那裡有任何更新？

Sure. There's -- yes, it's a great question. There's no real updates. We do consider the asset sales that I mentioned to be part of this -- what we call Project Everest, which is our strategic review. We think that's an outcome. We don't know if that will be the last outcome of this. We have no real updates beyond that but we're not closing it. We're saying it's ongoing, so you can read a little bit into that. But that's all we can say for now.

當然。有——是的，這是一個很好的問題。沒有真正的更新。我們確實認為我提到的資產出售是其中的一部分——我們稱之為珠穆朗瑪峰項目，這是我們的戰略審查。我們認為這是一個結果。我們不知道這是否會是最後的結果。除此之外，我們沒有真正的更新，但我們不會關閉它。我們說它正在進行中，因此您可以稍微了解一下。但這就是我們現在所能說的。

(Operator Instructions) Our next question comes from the line of Steve Dyer with Craig-Hallum.

（操作員說明）我們的下一個問題來自 Steve Dyer 與 Craig-Hallum 的對話。

It's Ryan on for Steve. Curious on the retail customers. So Costco jumped into the top 10 or above 10% of revenue in the last quarter. I guess your guidance for this year, does it assume that Costco continues to buy similar (inaudible) this past quarter?

史蒂夫輪到瑞安了。對零售客戶感到好奇。因此，Costco 在上個季度躍居前 10 名或超過 10% 的收入。我猜你今年的指導，是否假設好市多在上個季度繼續購買類似的（聽不清）？

Aina, you might want to tackle that?

艾娜，你可能想解決這個問題？

So our guidance contemplated several scenarios, especially when it came to the Retail segment. So what I can say, it's kind of similar to what Jim said earlier, there's just some reshuffling depending on how much weighting we give to one retailer versus another. One thing I would want to call out and remind everybody that all throughout the pandemic, we were really unable to satisfy all retailer demands and some retailers got more of our inventory in the last few years. And now that we're settling into a more new normal, we can more easily kind of handle all the various relationships we have. So even though some of the bigger ones may be declining year-over-year, we have an opportunity to increase sales to some of the smaller ones.

因此，我們的指南考慮了幾種情況，尤其是涉及零售領域時。所以我能說的是，這有點類似於吉姆之前所說的，只是根據我們給予一家零售商與另一家零售商的權重多少進行了一些改組。有一件事我想提醒大家，在整個大流行期間，我們確實無法滿足所有零售商的需求，一些零售商在過去幾年中獲得了更多庫存。現在我們正在適應一個更新的常態，我們可以更輕鬆地處理我們擁有的所有各種關係。因此，儘管一些較大的公司可能同比下降，但我們有機會增加一些較小的公司的銷售額。

Okay. And then just for my follow-up question. I don't believe you mentioned it but JRNY -- so members have been growing sequentially every quarter, subscribers were up a lot year-over-year, but they were flat sequentially. So 156,000 as of January 1, also as of March 31. I guess any commentary on the growth in members, but flat in sub Q-over-Q.

好的。然後只是我的後續問題。我不相信你提到過它，但 JRNY —— 所以會員每個季度都在連續增長，訂戶同比增長很多，但他們連續持平。所以截至 1 月 1 日為 156,000，也是截至 3 月 31 日。我想對會員增長有任何評論，但在 sub Q-over-Q 中持平。

Yes. No, it's a great question, and I expected it to be asked. The real thing quarter-over-quarter is remember that our JRNY members are driven primarily by people buying equipment. And we have to look at equipment units quarter-over-quarter. And in the third quarter, ending in December, that's our highest unit volume. So you're growing it pretty rapidly there. And then from that point, you have a pretty steep, especially this quarter with the retail business being what it was, you have a pretty steep drop in units sold in the fourth quarter and that kind of flattens things out. So you're working against a drop there in new ads, right? So that's what you have to overcome. And so it's flat there.

是的。不，這是一個很好的問題，我希望它會被問到。請記住，我們的 JRNY 會員主要是由購買設備的人推動的。而且我們必須按季度查看設備單位。在截至 12 月的第三季度，這是我們最高的單位銷量。所以你在那裡發展得非常快。然後從那時起，你有一個非常陡峭的，特別是本季度零售業務是什麼，你在第四季度銷售的單位急劇下降，這有點平緩。所以你正在努力防止新廣告出現下降，對吧？所以這就是你必須克服的。所以那裡很平坦。

I am really not concerned at all about that. It's very, very seasonal and I'm really just very excited about our new lower price SKU, which will bring JRNY to people who have not been able to afford it or wanted to make that investment previously. I like our new strength product that allows JRNY to travel beyond the cardio portfolio into the strength portfolio. And we're excited about all those things looking forward. Structurally, the answer to your question is just -- it's a low unit quarter that drives that for the most part, and we're excited about what's going forward.

我真的一點都不擔心。這是非常、非常季節性的，我真的對我們新的低價 SKU 感到非常興奮，它將把 JRNY 帶給那些以前買不起或不想投資的人。我喜歡我們的新力量產品，它讓 JRNY 能夠超越有氧運動產品組合，進入力量產品組合。我們對所有這些期待的事情感到興奮。從結構上講，你的問題的答案只是——這是一個較低的單位季度，在很大程度上推動了這一點，我們對未來的發展感到興奮。

There are no further questions in the queue. I'd like to hand the call back to James Barr for closing remarks.

隊列中沒有其他問題。我想將電話轉回 James Barr，請其作結束語。

Thank you to everyone on the call today for your continued support of Nautilus. We look forward to talking to you again on our first quarter fiscal 2024 earnings call in August. Have a great rest of your day. Onwards and upwards.

感謝今天電話會議中的每一個人，感謝你們對 Nautilus 的持續支持。我們期待在 8 月份的 2024 財年第一季度財報電話會議上再次與您交談。祝您度過愉快的一天。向前和向上。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路，度過美好的一天。