Nautilus Inc (NLS) 2020 Q4 法說會逐字稿

Greetings, and welcome to the Nautilus, Inc. Fourth Quarter 2020 Earnings Results Conference Call. (Operator Instructions)

您好，歡迎來到 Nautilus, Inc.。2020 年第四季度盈利結果電話會議。（操作員說明）

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Mills, ICR.

提醒一下，本次會議正在錄製中。現在我想將會議交給東道主 ICR 的約翰·米爾斯 (John Mills)。

Thank you. Good afternoon, everyone. Welcome to Nautilus' Fourth Quarter 2020 Conference Call. Participants on the call from Nautilus are Jim Barr, Chief Executive Officer; and Aina Konold, Chief Financial Officer.

謝謝。大家下午好。歡迎參加 Nautilus 2020 年第四季度電話會議。參加 Nautilus 電話會議的包括首席執行官吉姆·巴爾 (Jim Barr)；和首席財務官艾娜·科諾德。

Please note that 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.

請注意，本次電話會議正在網絡直播，並將在未來 14 天內重播。在我們準備好的發言結束後，我們很樂意回答您的問題。

Our earnings 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.

我們的財報於今天下午 1:05 發布。太平洋時間，可從我們的網站 nautilusinc.com 的投資者關係頁面下載。收益發布包括今天電話會議中提到的非公認會計原則財務指標與最直接可比的公認會計原則指標的調節。

For today's call, we will have a presentation accompanying the call that management will refer to during their prepared remarks. And on Slide 2 is our full safe harbor statement, which we ask everyone to read. You can access the presentation 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.

對於今天的電話會議，我們將在電話會議中進行演示，管理層將在準備好的發言中參考該演示文稿。第 2 張幻燈片是我們完整的安全港聲明，我們要求每個人都閱讀。您可以訪問 nautilusinc.com 來訪問演示文稿，然後單擊“投資者”選項卡，然後單擊“活動和網絡廣播”，演示文稿就會在那裡。

I would 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 current beliefs of management and information currently available to us. 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. 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.

我想提醒大家的是，在本次電話會議期間，鸚鵡螺管理層將做出某些前瞻性陳述。這些前瞻性陳述基於管理層當前的信念和我們目前掌握的信息。此類前瞻性陳述並不能保證未來業績，因此，不應過度依賴它們。我們的實際結果將受到已知和未知的風險、趨勢、不確定性以及超出我們控制和預測能力的因素的影響。有關這些因素的更多信息，請參閱安全港聲明和我們的 SEC 文件，這些文件可以在我們網站的投資者關係部分找到。

And with that, it is my pleasure to turn the call over to Nautilus' CEO, Mr. Jim Barr. Please go ahead, Jim.

至此，我很高興將電話轉給 Nautilus 首席執行官 Jim Barr 先生。請繼續，吉姆。

Thank you, John. Good afternoon, everyone, and thank you for joining today's call. I'm delighted to speak with you today about our company's record-breaking performance in the fourth quarter that capped a game-changing year for Nautilus. I'll highlight our financial and operational performance, underscore the profound contribution from our people and partners, discuss our outlook for the future and finish with a few words about North Star and our upcoming Investor Day.

謝謝你，約翰。大家下午好，感謝您參加今天的電話會議。我今天很高興與您談論我們公司第四季度破紀錄的業績，這為 Nautilus 改變遊戲規則的一年畫上了圓滿的句號。我將重點介紹我們的財務和運營業績，強調我們的員工和合作夥伴的巨大貢獻，討論我們對未來的展望，最後簡要介紹一下北極星和即將到來的投資者日。

We ended the year with a tremendous fourth quarter, executing on all fronts with growth across all brands, channels and products. To achieve our record results, we met the continued strong demand with significant increases in supply. Our incredible growth was somewhat tempered short term by disruptions in global logistics, similar to what many other companies and industries have experienced.

我們以出色的第四季度結束了這一年，在各個方面都取得了進展，所有品牌、渠道和產品都實現了增長。為了取得創紀錄的業績，我們通過大幅增加供應來滿足持續強勁的需求。我們令人難以置信的增長在短期內受到全球物流中斷的影響，類似於許多其他公司和行業所經歷的情況。

Let me start with our financial highlights, and they are truly remarkable. Our fourth quarter was not just good, it was the best quarter in the company's 35-year history by both top and bottom line measures. Full company revenue was over $189 million, up 82%. On an apples-to-apples basis, excluding the recently divested Octane business, revenue in the fourth quarter more than doubled versus the year ago period, up 108%.

讓我從我們的財務亮點開始，它們確實非常出色。我們的第四季度不僅表現出色，而且從營收和利潤指標來看，這都是公司 35 年曆史上最好的季度。公司總收入超過 1.89 億美元，增長 82%。按同類計算，不包括最近剝離的 Octane 業務，第四季度的收入比去年同期增長了一倍多，增長 108%。

Both our reporting segments also turned in their best quarter ever. Direct was up 129%. And Retail, excluding Octane, was up 96%. For the year, the company generated $553 million in revenue. The highest sales year for Nautilus since 2006 and easily the best comp in our history as a public company, plus 79% and plus 97%, excluding Octane. This came in within our guidance and would have been even higher if it weren't for a severe shortage of shipping containers. At year-end, we had over $16 million of completed and sold inventory sitting near our factories just waiting for retailers to pick them up. These so-called factory fulfilled orders are common in our business, but the magnitude of sold and unshipped inventory is far from typical.

我們的兩個報告部門也都實現了有史以來最好的季度業績。直接上漲129%。零售業（不包括 Octane）增長了 96%。該公司全年營收為 5.53 億美元。這是 Nautilus 自 2006 年以來銷售額最高的一年，也是我們作為上市公司歷史上最好的業績對比，分別增加了 79% 和 97%（不包括 Octane）。這個數字在我們的指導範圍之內，如果不是集裝箱嚴重短缺的話，這個數字還會更高。到年底，我們工廠附近有超過 1600 萬美元的已完工和已售庫存，等待零售商來取貨。這些所謂的工廠履行訂單在我們的業務中很常見，但已售出和未發貨庫存的規模卻遠非典型。

Under this FFO arrangement, retailers are responsible for arranging transportation, finding containers and picking them up at our factory, at which point title passes and our revenue is recognized. When even leading retailers like Amazon are not able to take possession of product they badly want due to an inability to find shipping containers, it serves as a strong illustration of the global disruption that is occurring. All told, we entered 2021 with $91 million in backlog.

根據這種 FFO 安排，零售商負責安排運輸、尋找集裝箱並在我們的工廠提貨，此時所有權就通過了，我們的收入也得到了確認。當甚至像亞馬遜這樣的領先零售商由於無法找到集裝箱而無法擁有他們急需的產品時，這有力地說明了正在發生的全球破壞。總而言之，進入 2021 年，我們的積壓訂單達到了 9100 萬美元。

Operating income for the quarter was $41 million, second only to third quarter 2020 in our history and 1,100% increase over fourth quarter 2019. Excluding the gain on Octane we recognized one quarter earlier, fourth quarter 2020 is the highest ever for Nautilus.

該季度營業收入為 4100 萬美元，僅次於 2020 年第三季度，比 2019 年第四季度增長 1,100%。排除我們在一個季度前確認的辛烷收益，2020 年第四季度是 Nautilus 有史以來最高的季度。

For the full year, operating income was $78 million compared to a loss of $101 million in 2019. Excluding the Octane net loss on disposal, operating income for the year was $98 million and adjusted EBITDA was $107 million, exceeding the top end of our guidance by $7 million. This is a swing of $125 million versus last year's EBITDA loss of $18 million. That $125 million improvement in EBITDA resulted in a massive change in year-to-year cash and short-term investments. We ended the year with $94 million of cash and short-term investments, giving us additional resources to invest in our company's long-term growth.

全年營業收入為 7800 萬美元，而 2019 年則虧損 1.01 億美元。不包括處置辛烷淨損失，本年度營業收入為 9800 萬美元，調整後 EBITDA 為 1.07 億美元，比我們指導的上限高出 700 萬美元。與去年 1800 萬美元的 EBITDA 損失相比，這一數字相差 1.25 億美元。EBITDA 提高了 1.25 億美元，導致現金和短期投資逐年發生巨大變化。年底，我們獲得了 9,400 萬美元的現金和短期投資，為我們提供了額外的資源來投資於公司的長期增長。

While our results were aided by the at-home fitness tailwind for much of the year, I want to emphasize that they were far from easy to achieve. In many ways, 2020 may have instead been our most challenging year in history. We faced many unprecedented and unanticipated obstacles and navigated through them to produce this outcome. We also had key learnings we can apply to the future to execute even better. These record results were driven by executional improvements we began implementing in late 2019, well before the pandemic hit.

雖然我們的成績在一年中的大部分時間裡都得益於家庭健身的推動，但我想強調的是，實現這些成績絕非易事。從很多方面來說，2020 年可能是我們歷史上最具挑戰性的一年。我們遇到了許多前所未有和意料之外的障礙，並克服了這些障礙才取得了這一成果。我們還獲得了一些重要的經驗教訓，可以應用於未來，以實現更好的執行。這些創紀錄的業績是由我們在 2019 年底（即疫情爆發之前）開始實施的執行改進推動的。

Our employees and partners' agility and endurance in confronting adverse conditions in their professional and personal lives and their grit determination and creative problem-solving in the face of the numerable operational challenges. I'm very proud of our whole company for facing challenges for delivering for customers and shareholders in a truly incredible performance.

我們的員工和合作夥伴在職業和個人生活中面對不利條件時的敏捷性和耐力，以及面對無數運營挑戰時的毅力和創造性解決問題的決心。我為我們整個公司感到非常自豪，因為我們面臨著挑戰，為客戶和股東提供了真正令人難以置信的業績。

Underlying these financial results and the extraordinary efforts are some impressive operational achievements worthy of calling out. Working out -- working with our valued partners, we dramatically increase production and supply chain capacity. To accelerate connected fitness, we've launched 7 new cardio products, including the debut of the industry's first unstationary dual-mode bike VeloCore, introduced the next generation of Bowflex Max Trainer and expanded the Bowflex treadmill line. In addition, we launched our instantly popular SelectTech 2080 Barbell set, updated Bowflex benches and refreshed our Schwinn 30 Bike series. All in all, our portfolio features strong consumer choice of strength and cardio of modalities and the price points.

在這些財務業績和非凡努力的背後是一些值得稱讚的令人印象深刻的運營成就。鍛煉——與我們尊貴的合作夥伴合作，我們大幅提高生產和供應鏈能力。為了加速互聯健身，我們推出了 7 款新的有氧運動產品，包括首次推出業界首款非固定式雙模式自行車 VeloCore，推出了下一代 Bowflex Max Trainer 並擴展了 Bowflex 跑步機系列。此外，我們還推出了立即流行的 SelectTech 2080 槓鈴套裝、更新的 Bowflex 長凳以及更新的 Schwinn 30 自行車系列。總而言之，我們的產品組合具有消費者對力量和有氧運動方式以及價格點的強大選擇。

Our new products and a more modern go-to-market approach have gotten us into the conversation in connected fitness in a big way. As tangible examples, our earned media impressions through our public relations efforts were up over 4x year-over-year, and our social media influencer program produced 8x the reach compared to a year ago.

我們的新產品和更現代的上市方式讓我們在很大程度上參與了互聯健身領域的對話。舉個具體的例子，我們通過公共關係努力贏得的媒體印像比去年同期增加了 4 倍以上，而我們的社交媒體影響者計劃的影響力比一年前增加了 8 倍。

Our products are not only in the conversation, but winning reviews and awards. Such as VeloCore winning the prestigious award for innovation at this year's Consumer Electronics Show. We continue to rev JRNY, our individualized connected fitness digital platform, with a new user interface, more features, many more classes and on-demand workouts, including, for the first time, off-machine workout such as yoga. JRNY offers more choices for less.

我們的產品不僅引起人們的關注，而且贏得了評論和獎項。例如，VeloCore 在今年的消費電子展上榮獲著名的創新獎。我們繼續改進 JRNY，我們的個性化互聯健身數字平台，提供新的用戶界面、更多功能、更多課程和按需鍛煉，包括首次提供瑜伽等離線鍛煉。JRNY 以更少的成本提供更多選擇。

Other popular fitness platforms tend to focus mostly on trainer-led group classes where you follow along. JRNY includes classes, but its focus is on each member individually, providing a 1:1 AI-driven personalized experience based on each individual's own progress and goals, providing a virtually unlimited number of suggested workouts. It also provides entertainment options and immersive experiences, which can be used stand-alone or at the same time as the adaptive workouts in individualized coaching.

其他流行的健身平台往往主要關注由教練指導的團體課程，您可以跟隨。JRNY 包括課程，但其重點是針對每個會員個人，根據每個人自己的進度和目標提供 1:1 AI 驅動的個性化體驗，並提供幾乎無限數量的建議鍛煉。它還提供娛樂選項和沈浸式體驗，可以單獨使用，也可以與個性化輔導中的自適應鍛煉同時使用。

Our members value variety, and we deliver all of this for a fraction of the price of the nearly $40 per month fee that has been trending among connected fitness competitors. We continue to listen to consumers and observe usage, which guides our ongoing development efforts. We've also been able to accelerate our growth of JRNY memberships in tandem with the recent increase in connected fitness devices sold. We improved margins through select price increases on key products and decreasing the level of product promotions. We capitalized on the opportunity to introduce new customers to Bowflex and Schwinn high-quality products. We added 4x more new customers in 2020 versus 2019.

我們的會員重視多樣性，而我們提供所有這些服務的價格僅為每月近 40 美元的費用的一小部分，而這種費用在互聯健身競爭對手中一直流行。我們繼續傾聽消費者的聲音並觀察使用情況，這指導我們持續的開發工作。隨著最近銷售的聯網健身設備的增加，我們還能夠加速 JRNY 會員的增長。我們通過對關鍵產品進行選擇性提價和減少產品促銷力度來提高利潤率。我們利用這個機會向新客戶介紹 Bowflex 和 Schwinn 的高品質產品。與 2019 年相比，2020 年我們增加了 4 倍的新客戶。

Website traffic was up approximately 3x for bowflex.com and 4x for schwinnfitness.com for the full year. We stood by our retailer partners and allocated scarce inventory to them as we continue to build long-term relationships with our top partners, such as Amazon and DICK'S Sporting Goods. We continue our recent expansion with Best Buy as well as Costco U.S. and Canada and added Shields to our key retailer partner list. And lastly, we completed the sale of Octane to reduce cost and focus on the at-home fitness market.

全年，bowflex.com 的網站流量增長了約 3 倍，schwinnfitness.com 的網站流量增長了 4 倍。我們與零售商合作夥伴站在一起，為他們分配稀缺庫存，同時繼續與亞馬遜和迪克體育用品等頂級合作夥伴建立長期合作關係。我們繼續最近與百思買以及 Costco 美國和加拿大的擴張，並將 Shields 添加到我們的主要零售商合作夥伴名單中。最後，我們完成了 Octane 的出售，以降低成本並專注於家庭健身市場。

Many of these operational accomplishments, such as new customers, new retail partners, our new products, manufacturing capacity are durable and have lasting impacts to our business. In addition to financial results and operational improvements, I'm proud of our enduring progress on people, capabilities and culture.

其中許多運營成就，例如新客戶、新零售合作夥伴、我們的新產品、製造能力都是持久的，並對我們的業務產生持久影響。除了財務業績和運營改進之外，我還為我們在人員、能力和文化方面取得的持久進步感到自豪。

During 2020, for example, we pivoted to work from home within 72 hours and took explicit actions to support our people this past year. A few examples include giving HQ employees a stipend to outfit their home office, providing additional time off for refreshment and to volunteer for causes that are important to them, and importantly, shared company success in the form of financial rewards commensurate with our accomplishments. We won Best Places to Work for the eighth straight time. We significantly improved employee engagement and lower turnover. We have implemented a new mission, vision and values that build on the strong foundation but strive to take us to the next level as we aim for our North Star.

例如，在 2020 年，我們在 72 小時內轉向在家工作，並在過去的一年中採取了明確的行動來支持我們的員工。一些例子包括為總部員工提供津貼來裝備他們的家庭辦公室，提供額外的休息時間來休息，並為對他們來說很重要的事業做志願者，更重要的是，以與我們的成就相稱的經濟獎勵的形式分享公司的成功。我們連續第八次榮獲最佳工作場所獎。我們顯著提高了員工敬業度並降低了人員流動率。我們實施了新的使命、願景和價值觀，這些使命、願景和價值觀建立在堅實的基礎上，但在我們瞄準北極星的同時，努力將我們提升到一個新的水平。

Since December 2019, we've built a stronger, more diverse executive team to take us forward with a new Chief Financial Officer, Chief Marketing Officer and Chief Digital Officer. The executive team has a nice balance between experienced Nautilus veterans and outside perspectives. And we recently hired a new Chief People Officer, whom we will announce shortly to help us continue building our talent, capabilities and culture and develop our people for the road ahead.

自 2019 年 12 月以來，我們建立了一支更強大、更多元化的執行團隊，任命新的首席財務官、首席營銷官和首席數字官來帶領我們前進。執行團隊在經驗豐富的鸚鵡螺退伍軍人和外部觀點之間取得了很好的平衡。我們最近聘請了一位新的首席人力官，我們將很快宣布任命他，以幫助我們繼續培養我們的人才、能力和文化，並為未來的道路培養我們的員工。

I'm inspired by the accomplishments of our leadership team in 2020, and in particular, how they succeeded on multiple dimensions simultaneously, including executed on the day-to-day optimization of the business, produced record-breaking financial results, launched impressive new products and improved JRNY, provide strong leadership and support to our teams as they dealt with the pandemic and other stressful events, completed the sale of Octane, and finally, completed and rolled out our long-term strategy North Star to the entire company. Two or three of these would have made for a good year, but executing well on all of these levels to this degree, made 2020 a year to be truly proud of.

我對我們的領導團隊在 2020 年取得的成就感到鼓舞，特別是他們如何同時在多個方面取得成功，包括執行日常業務優化、創造破紀錄的財務業績、推出令人印象深刻的新產品產品和改進的JRNY，為我們的團隊應對大流行和其他壓力事件提供了強有力的領導和支持，完成了Octane 的銷售，最後完成了我們的長期戰略North Star 並將其推廣到整個公司。其中兩三個就足以構成美好的一年，但在所有這些層面上都執行得如此出色，才使得 2020 年成為真正值得自豪的一年。

With that, let me bridge to our outlook for 2021 and the long term. We continue to see strong demand for all products, especially bikes, new connected fitness cardio products, our SelectTech line and home gyms. Demand and consumer sentiment for home fitness has not slowed with the availability of vaccines. Polling results remained stable, with more than 20% of former gym goers saying they will never return to the gym. This sentiment is driven partly by feeling unsafe, but more durably that many have discovered or rediscovered the convenience of working out from home, now with the added ability to replicate much of what they got from the gym through connected fitness.

接下來，讓我談談我們對 2021 年和長期的展望。我們繼續看到對所有產品的強勁需求，特別是自行車、新型互聯健身有氧產品、我們的 SelectTech 系列和家庭健身房。家庭健身的需求和消費者情緒並沒有隨著疫苗的出現而放緩。民意調查結果保持穩定，超過 20% 的前健身愛好者表示他們永遠不會再去健身房。這種情緒的部分原因是感到不安全，但更持久的是，許多人已經發現或重新發現了在家鍛煉的便利性，現在可以通過聯網健身複製他們從健身房獲得的大部分鍛煉效果。

Those who have or plan to return to gyms, tell us they will balance their gym and at-home routine much differently than before COVID hit. When the pandemic is behind us, they do not see themselves going to their workplaces every day, which was a key driver of gym habits. All of this leads us to be optimistic that a large driver of the surge in demand will continue long term to permanently. Hence, we continue to make significant investments in supply chain and inventory. We're coming closer to meeting demand with supply, but still have some more work to do. We still battle major challenges in global logistics, at least short term and we continue to monitor leading indicators such as consumer sentiment, web traffic and retail sell-through. Aina will cover our guidance for the quarter ended March 31, 2021, in her remarks.

那些已經或計劃重返健身房的人告訴我們，他們將在健身房和家庭日常活動之間取得平衡，這與新冠疫情爆發之前的情況大不相同。當疫情過去後，他們不會每天去工作場所，而這是養成健身習慣的一個關鍵驅動因素。所有這些使我們樂觀地認為，需求激增的一大推動力將長期持續到永久。因此，我們繼續在供應鍊和庫存方面進行大量投資。我們正在接近滿足供應需求，但仍有更多工作要做。我們仍在應對全球物流方面的重大挑戰，至少在短期內如此，我們將繼續監測消費者信心、網絡流量和零售銷量等領先指標。艾娜將在講話中介紹我們截至 2021 年 3 月 31 日的季度的指引。

Importantly, we were -- while we were striving to meet our customers' needs this year, we didn't lose sight of the long term. We completed North Star, our insights-driven long-term vision and strategic plan. We rolled it out to the full company in the fourth quarter and are now in full implementation mode. Our plan built on the company's notable strengths, including well-known brands, reputation for quality and innovation, broad product portfolio, omnichannel go-to-market and customer-focused company culture. It also addresses the company's underlying issues and weaknesses, which I diagnosed when I arrived, some of which I had previously shared with you.

重要的是，我們今年在努力滿足客戶需求的同時，也沒有忽視長期發展。我們完成了“北極星”，這是我們以洞察力為導向的長期願景和戰略計劃。我們在第四季度將其推廣到整個公司，現在處於全面實施模式。我們的計劃建立在公司的顯著優勢之上，包括知名品牌、質量和創新聲譽、廣泛的產品組合、全渠道進入市場以及以客戶為中心的公司文化。它還解決了我到達時診斷出的公司的根本問題和弱點，其中一些我之前已經與大家分享過。

Under our plan, Nautilus will be a stronger, more resilient and more digitally-focused company. Notably, our North Star vision is enduring. It would have been the same COVID or not, but the resulting home fitness trend has added opportunity, a sense of urgency to meet the evolving needs and habits of gym goers, and provided fuel to accelerate our key initiatives. While 2021 is the first official year of our North Star plan, it's important to take stock of actions we've already taken and early wins: our progress in accelerating connected fitness in the portfolio; our progress in improving JRNY, our digital membership platform; we have a balanced product portfolio of strongly demanded products; our focusing decisions such as selling Octane and SKU rationalization work; and we've added top talent to our team in key areas. The entire team is embracing the direction. We will be holding a virtual Investor Day next month on March 18, and I look forward to sharing more details about North Star and many additional improvements we have made to our company at that time.

根據我們的計劃，Nautilus 將成為一家更強大、更有彈性、更注重數字化的公司。值得注意的是，我們的北極星願景是持久的。不管是否是新冠疫情，但由此產生的家庭健身趨勢增加了機會，增加了滿足健身愛好者不斷變化的需求和習慣的緊迫感，並為加速我們的關鍵舉措提供了動力。雖然 2021 年是我們北極星計劃的第一個正式年份，但重要的是要盤點我們已經採取的行動和早期的成果：我們在加速投資組合中的互聯健身方面取得的進展；我們在改進 JRNY（我們的數字會員平台）方面取得的進展；我們擁有需求旺盛的均衡產品組合；我們的重點決策，例如銷售 Octane 和 SKU 合理化工作；我們在關鍵領域為我們的團隊增添了頂尖人才。整個團隊都在擁抱這個方向。我們將於下個月 3 月 18 日舉行虛擬投資者日，我期待屆時分享有關 North Star 的更多詳細信息以及我們對公司所做的許多其他改進。

Let me close by saying that 2020 has indeed been a game changer for our company. Operational improvements got us started. Strong execution permitted us to benefit profoundly from at-home fitness trends, which we believe are here to stay. Nautilus is already a more on-trend and a more digital version of itself, and our long-term vision and strategy will lead us to a sustainable industry leadership position. I could not be more excited about our long-term prospects and the steps we are already taking.

最後我要說的是，2020 年確實改變了我們公司的遊戲規則。運營改進讓我們開始了。強大的執行力使我們能夠從家庭健身趨勢中受益匪淺，我們相信這種趨勢將持續下去。Nautilus 本身已經是一個更潮流、更數字化的版本，我們的長期願景和戰略將帶領我們取得可持續的行業領導地位。我對我們的長期前景和我們已經採取的步驟感到非常興奮。

With that, I'd like to turn it over to our CFO, Aina Konold, who will go over our financial results in more detail. Aina?

接下來，我想將其交給我們的首席財務官 Aina Konold，她將更詳細地審查我們的財務業績。艾娜？

Thank you, Jim, and good afternoon, everyone. During my first earnings call with Nautilus a year ago, I said that this company has incredibly strong brands and a loyal customer base, that we have the right assets in place to return to profitable growth, and that we are already addressing the issues that caused our performance to falter in 2019. Importantly, we are investing in the future. One year later, on behalf of our whole team, I proudly share with you our Q4 and full year 2020 results.

謝謝吉姆，大家下午好。一年前，在我與Nautilus 的第一次財報電話會議上，我表示這家公司擁有令人難以置信的強大品牌和忠誠的客戶群，我們擁有適當的資產來恢復盈利增長，而且我們已經在解決導致盈利增長的問題。 2019 年我們的業績將下滑。重要的是，我們正在投資未來。一年後，我代表我們整個團隊，自豪地與您分享我們第四季度和 2020 年全年的業績。

I'll begin by speaking to total company P&L results for Q4 2020, with comparisons to Q4 2019. Net sales were $189 million, up 82% or $108 million, excluding Octane. Gross margin rate increased by 450 basis points to 41%. Gross profit was $78 million, a 104% higher than last year. Strong execution across both segments was a key driver of the increase. Favorable segment mix was also a factor as Direct was 43% of sales this year versus 34% last year. And in COGS, we saw leverage on fixed costs, offset by continued pressure on product landed costs.

首先，我將介紹 2020 年第四季度的公司總損益結果，並與 2019 年第四季度進行比較。淨銷售額為 1.89 億美元，增長 82%，即 1.08 億美元（不包括辛烷）。毛利率上升450個基點至41%。毛利潤為 7800 萬美元，比去年增長 104%。這兩個部門的強勁執行力是增長的關鍵驅動力。有利的細分市場組合也是一個因素，今年直營銷售額佔銷售額的 43%，而去年為 34%。在銷貨成本方面，我們看到固定成本的槓桿作用被產品到岸成本的持續壓力所抵消。

Operating expenses were 4% higher, increasing to $36 million or 19% of net sales. Selling and marketing costs were down 14% to $22 million or 12% of net sales compared to $25 million or 24% of net sales last year. Given our tight inventory position, we opted to redirect spend to R&D and G&A. R&D was up 34% to $4 million or 2% of net sales compared to $3 million or 3% of net sales last year, primarily driven by increased investments in JRNY. G&A was up 61% to $10 million or 5% of net sales this year compared to $6 million or 6% of net sales last year, primarily driven by early investments in our North Star initiatives.

運營費用增加 4%，增至 3,600 萬美元，占淨銷售額的 19%。銷售和營銷成本下降了 14%，降至 2200 萬美元，占淨銷售額的 12%，而去年為 2500 萬美元，占淨銷售額的 24%。鑑於我們的庫存緊張，我們選擇將支出轉向研發和一般管理費用。研發費用增長了 34%，達到 400 萬美元，占淨銷售額的 2%，而去年則為 300 萬美元，占淨銷售額的 3%，這主要是由於 JRNY 投資增加所致。今年的G&A 增長了61%，達到1000 萬美元，占淨銷售額的5%，而去年則為600 萬美元，占淨銷售額的6%，這主要是由我們的North Star 計劃的早期投資推動的。

Operating income was nearly 1,200% higher, increasing to $41 million, driven by increased gross profit. Operating margin was 22%. Income from continuing ops increased by 699% to $29 million or $0.90 per diluted share. EBITDA from continuing operations improved by 578% to $40 million.

由於毛利潤增加，營業收入增長了近 1,200%，達到 4100 萬美元。營業利潤率為 22%。持續運營收入增長 699%，達到 2900 萬美元，即稀釋後每股收益 0.90 美元。來自持續經營業務的 EBITDA 提高了 578%，達到 4,000 萬美元。

Turning now to Q4 2020 performance by segment. Again, I'll be comparing it to last year's Q4. Direct net sales were up 129% to an all-time high of $82 million, driven by strength which grew 372%. Demand remains strong for our SelectTech weights and benches. The Direct segment sold more strength product in this quarter than in all of 2019. Cardio grew 78%, driven by our connected fitness bikes, the Bowflex C6 and VeloCore and the Schwinn IC4. Cardio sales growth was relatively constrained by disruptions in global logistics, which delayed the launch of some of our new connected fitness equipment, like the treadmill and the new Max Trainer. Direct entered Q4 with $46 million in backlog.

現在來看看 2020 年第四季度各細分市場的表現。我將再次將其與去年第四季度進行比較。在增長 372% 的強勁推動下，直接淨銷售額增長 129%，達到 8200 萬美元的歷史新高。我們的 SelectTech 舉重器械和訓練凳的需求依然強勁。本季度直營部門銷售的強效產品比 2019 年全年還要多。在我們的互聯健身自行車、Bowflex C6 和 VeloCore 以及 Schwinn IC4 的推動下，有氧運動增長了 78%。有氧運動銷售增長相對受到全球物流中斷的限制，這導致我們推遲了一些新的互聯健身設備的推出，例如跑步機和新的 Max Trainer。Direct 進入第四季度時，積壓訂單金額為 4600 萬美元。

Gross margins expanded by 370 basis points to 54%, and gross profit grew by 146%. Segment contribution was $24 million, $29 million higher than last year's $5 million loss. The improvement was driven by increased gross profit and lower marketing spend.

毛利率擴大370個基點至54%，毛利潤增長146%。部門貢獻為 2400 萬美元，比去年的 500 萬美元虧損增加了 2900 萬美元。這一改善是由毛利潤增加和營銷支出減少推動的。

Turning now to Retail. Net sales hit a historic high of $106 million, up 58% versus last year or up 96%, excluding Octane. Cardio was up 59%, driven by the Schwinn IC4 ellipticals. Strength was up 52%, driven by SelectTech weights and benches.

現在轉向零售。淨銷售額創下 1.06 億美元的歷史新高，較去年增長 58%，若不包括 Octane，則增長 96%。在 Schwinn IC4 橢圓機的推動下，有氧運動增長了 59%。在 SelectTech 舉重器械和臥推凳的推動下，力量提高了 52%。

Retail's backlog at the end of Q4 was $45 million. We disclosed retail customers whose sales are greater than 10% of total company net sales. This quarter, DSG and Amazon were both 14% of total company net sales. Gross margins expanded 230 basis points to 31% and gross profit grew by 70%. Segment contribution was $25 million, a 107% higher than last year, primarily driven by higher gross profit.

第四季度末零售業的積壓訂單為 4500 萬美元。我們披露了銷售額占公司總淨銷售額10%以上的零售客戶。本季度，DSG 和亞馬遜均占公司總淨銷售額的 14%。毛利率擴大 230 個基點至 31%，毛利潤增長 70%。該部門貢獻為 2500 萬美元，比去年增長 107%，主要是由於毛利潤增加。

As is the last quarter of the year, I'll now turn to total company P&L results for the full year 2020 with comparisons to full year 2019. The P&L that I'll be speaking to is adjusted to remove the impact of onetime significant charges this year and last year. Please see our press release on our website for a reconciliation of these non-GAAP numbers to our reported results.

與今年最後一個季度一樣，我現在將討論 2020 年全年公司損益表總體結果，並與 2019 年全年進行比較。我將要談到的損益表經過調整，以消除今年和去年一度重大費用的影響。請參閱我們網站上的新聞稿，了解這些非 GAAP 數據與我們報告的結果的對賬情況。

Net sales were $553 million, up 79% or 97% excluding Octane versus last year. These full year sales were at the midpoint of our guidance of $540 million to $565 million. We incorporated logistics disruptions into our guidance, and I'm really proud of how the team overcame poor congestions, reduced sailings, and in December, an unexpected reduction in the number of delivery trucks available to pick up shipments from our DCs. We quickly implemented an IT solution to allow us to ship the additional carriers. What we could not overcome was the severe container shortage that Jim mentioned earlier, we had $16 million of FFOs, factory fulfilled orders sitting in the warehouse waiting for pickup in December.

淨銷售額為 5.53 億美元，與去年相比增長 79% 或 97%（不包括 Octane）。這些全年銷售額處於我們指導的 5.4 億至 5.65 億美元的中點。我們將物流中斷納入我們的指導中，我對團隊如何克服嚴重擁堵、航班減少以及 12 月份可用於從我們的配送中心提貨的送貨卡車數量意外減少的情況感到非常自豪。我們迅速實施了 IT 解決方案，使我們能夠運送更多的承運人。我們無法克服的是 Jim 之前提到的嚴重的集裝箱短缺問題，我們有 1600 萬美元的 FFO，工廠完成的訂單在倉庫裡等待 12 月份的提貨。

Gross margins expanded by 560 basis points to 41% and gross profit grew by 107%. I'm really pleased by our progress in gross margin. We're seeing the fruits of our SKU rationalization and price and promo optimization. This will help us weather headwinds we are seeing in 2021 related to shipping costs and increasing steel prices.

毛利率擴大 560 個基點至 41%，毛利潤增長 107%。我對我們毛利率的進步感到非常高興。我們看到了 SKU 合理化以及價格和促銷優化的成果。這將幫助我們應對 2021 年與運輸成本和鋼鐵價格上漲相關的不利因素。

Channel mix also helped as Direct was 44% of sales this year versus 39% last year. Adjusted operating expenses were 6% lower, decreasing to $130 million or 24% of net sales. Selling and marketing expenses were down 17% to $78 million or 14% of net sales compared to $95 million or 31% of net sales last year. Given our limited inventory and strong organic demand, we pulled back on paid media and redirected spend to R&D and G&A in support of JRNY and other North Star initiatives. We are also much more active on the PR front, and our media impressions increased 4x versus 2019.

渠道組合也起到了一定作用，今年直接銷售佔銷售額的 44%，而去年為 39%。調整後運營費用下降 6%，降至 1.3 億美元，占淨銷售額的 24%。銷售和營銷費用下降 17%，至 7800 萬美元，占淨銷售額的 14%，而去年為 9500 萬美元，占淨銷售額的 31%。鑑於我們有限的庫存和強勁的有機需求，我們撤回了付費媒體，並將支出重新用於研發和一般行政管理，以支持 JRNY 和其他北極星計劃。我們在公關方面也更加積極，我們的媒體印像比 2019 年增加了 4 倍。

R&D costs were up 11% to $16 million or 3% of net sales compared to $14 million or 5% of net sales last year. G&A was up 20% to $36 million or 7% of net sales compared to $30 million or 10% of net sales last year.

研發成本上升 11%，達到 1,600 萬美元，占淨銷售額的 3%，而去年為 1,400 萬美元，占淨銷售額的 5%。G&A 增長了 20%，達到 3,600 萬美元，占淨銷售額的 7%，而去年則為 3,000 萬美元，占淨銷售額的 10%。

Adjusted operating income was $98 million, an improvement of $127 million compared to last year's loss of $29 million. Adjusted income from continuing ops increased to $79 million or $2.46 per diluted share. Adjusted EBITDA from continuing ops was $107 million versus last year's loss of $18 million. This is 7% higher than the top end of our guidance range of $90 million to $100 million.

調整後營業收入為 9800 萬美元，比去年虧損 2900 萬美元增加了 1.27 億美元。持續運營的調整後收入增至 7900 萬美元，即攤薄後每股收益 2.46 美元。持續運營帶來的調整後 EBITDA 為 1.07 億美元，而去年則虧損 1,800 萬美元。這比我們指導範圍 9000 萬至 1 億美元的上限高出 7%。

Turning now to other year-end highlights. We are ending the year with a much stronger liquidity position. Cash and investments were $94 million, 750% higher than last year's balance of $11 million. Debt level stayed flat at $14 million, and we had $55 million available for borrowing on our Wells Fargo credit facility. AR was $91 million, 67% higher than last year, primarily due to the timing of customer payments. Trade payables were $96 million, 30% higher than last year, primarily due to timing of inventory payments and higher advertising-related payments. Inventory was $51 million compared to $55 million last year.

現在轉向其他年終亮點。我們將以更加強勁的流動性狀況結束今年。現金和投資為 9,400 萬美元，比去年的 1,100 萬美元餘額增加 750%。債務水平保持在 1400 萬美元不變，我們有 5500 萬美元可用於富國銀行信貸安排的借款。AR 為 9100 萬美元，比去年增長 67%，這主要是由於客戶付款的時間安排。應付賬款為 9600 萬美元，比去年增加 30%，主要是由於庫存付款的時間安排和廣告相關付款的增加。庫存為 5,100 萬美元，而去年為 5,500 萬美元。

The global logistics disruptions is a well-covered topic as it affects not just our industry, but any company that sources products from Asia or has an e-commerce presence. I'm really proud of how our team overcame the challenges that we encountered this year. It started with factory manufacturing delays as China was the first country to deal with COVID-19. As other countries began implementing stay-at-home orders, demand spiked to 5 to 6x what it was last year. We needed to move beyond just restarting production and had to significantly ramp up capacity. Then as we were getting supply closer to demand, we needed to deal with reduced transformation -- transportation availability, both inbound ships and outbound delivery trucks, which we overcame by choosing to pay upcharges in order to deliver for our customers.

全球物流中斷是一個廣泛討論的話題，因為它不僅影響我們的行業，還影響任何從亞洲採購產品或擁有電子商務業務的公司。我對我們的團隊如何克服今年遇到的挑戰感到非常自豪。由於中國是第一個應對新冠肺炎 (COVID-19) 疫情的國家，工廠生產出現延誤。隨著其他國家開始實施居家令，需求激增至去年的 5 至 6 倍。我們需要的不僅僅是重新啟動生產，還必須大幅提高產能。然後，當我們的供應越來越接近需求時，我們需要應對減少的轉型 - 運輸可用性，包括入境船舶和出境送貨卡車，我們通過選擇支付附加費以便為客戶送貨來克服這個問題。

Then as I said earlier in December, there was a severe container shortage, which even our largest retail partners were unable to fully mitigate. At this time, our largest suppliers have stabilized against our elevated demand. Therefore, we no longer need to issue POs 2 or 3 quarters into the future. We have gone back to issuing them closer to normal lead times of several weeks. At the end of Q4, we had about $166 million of open POs compared to $28 million last year.

正如我在 12 月初所說，集裝箱嚴重短缺，即使是我們最大的零售合作夥伴也無法完全緩解。目前，我們最大的供應商已經穩定下來，以應對我們不斷增長的需求。因此，我們不再需要在未來 2 或 3 個季度發布採購訂單。我們已經恢復到接近正常幾週的交貨時間來發放它們。截至第四季度末，我們的未結採購訂單約為 1.66 億美元，而去年為 2800 萬美元。

I have a couple more topics before I turn it back to Jim. In December, we announced that we are changing our fiscal year-end. From the 12-month beginning Jan 1 and ending December 31 to the 12 months beginning April 1 and ending March 31. We will file a transition report on Form 10-QT for the transition period from January 1, 2021, to March 31, 2021. The company's fiscal year 2022 will begin April 1, 2021 and end March 31, 2022. We made this change because we wanted to include the entire fitness season for exercise equipment in the same fiscal year. Additionally, this new fiscal year-end is better aligned with the 4-5-4 retail calendar used by our retail partners.

在我把話題轉回給吉姆之前，我還有幾個話題。12 月，我們宣布將更改財政年度結束日期。從1月1日開始到12月31日結束的12個月到4月1日開始到3月31日結束的12個月。我們將在 2021 年 1 月 1 日至 2021 年 3 月 31 日的過渡期內提交 10-QT 表的過渡報告。該公司2022財年將於2021年4月1日開始至2022年3月31日結束。我們做出這一改變是因為我們希望將健身器材的整個健身季納入同一財年。此外，這個新的財政年度結束與我們的零售合作夥伴使用的 4-5-4 零售日曆更加一致。

Turning now to our forward-looking guidance for the transition period from January 1, 2021 to March 31, 2021. We expect net sales growth of 55% to 75% versus the same period last year. Due to pressures from increased logistics costs, higher commodity prices and continued FX headwinds, we expect gross margins to be relatively flat to the same period last year. We expect many of these temporary increases in costs to subside as we move through our fiscal 2020 year.

現在轉向我們對2021年1月1日至2021年3月31日過渡期的前瞻性指引。我們預計淨銷售額較去年同期增長 55% 至 75%。由於物流成本增加、大宗商品價格上漲以及持續的外匯逆風帶來的壓力，我們預計毛利率將與去年同期相對持平。我們預計，隨著 2020 財年的到來，這些暫時增加的成本將會消退。

We expect operating expenses to be higher in dollars but achieve leverage as these expenses are expected to be lower as a percent of sales than the same period last year, driven by increased investments in marketing in JRNY and other North Star initiatives.

我們預計以美元計算的運營費用將更高，但由於在 JRNY 和其他北極星計劃的營銷投資增加的推動下，這些費用佔銷售額的百分比預計將低於去年同期，因此將實現槓桿化。

We told you a year ago that we were addressing the issues that caused our performance to falter in 2019. While we are far from done, we have made consistent progress every quarter. Importantly, we took full advantage of the tailwinds we experienced this year to strengthen our balance sheet, giving us the fuel to accelerate progress on our North Star strategy and invest in our company's long-term growth.

我們一年前就告訴過您，我們正在解決導致 2019 年業績下滑的問題。雖然我們還遠遠沒有完成，但我們每個季度都取得了持續的進展。重要的是，我們充分利用了今年經歷的有利因素來加強我們的資產負債表，為我們加速北極星戰略的進展並投資於我們公司的長期增長提供動力。

Now I'd like to turn the call back over to Jim for his final comments. Jim?

現在我想將電話轉回吉姆以徵求他的最終意見。吉姆？

Thank you, Aina. 2020 is a year we will not soon forget for many reasons. It was filled with personal and professional challenges and taught us a lot about resilience. Our company and our employees are resilient, resourceful and extremely hard working. Nautilus emerged from 2020 with a stronger platform and a stronger balance sheet than at the end of 2019. We are positioning the company for long-term growth and profitability driven not by one product offering, but by a balanced portfolio and strong subscription revenue.

謝謝你，艾娜。2020 年是我們不會很快忘記的一年，原因有很多。它充滿了個人和職業挑戰，教會了我們很多關於韌性的知識。我們的公司和我們的員工堅韌、足智多謀、工作極其努力。與 2019 年底相比，Nautilus 從 2020 年開始擁有更強大的平台和更強大的資產負債表。我們將公司定位為長期增長和盈利能力，這不是由一種產品提供驅動，而是由平衡的產品組合和強勁的訂閱收入驅動。

We have the team and the tools in place to implement our growth strategy and show the market and consumers that we are not the Nautilus of old, but are an innovative equipment and technology company committed to delivering best-in-class fitness experiences.

我們擁有適當的團隊和工具來實施我們的增長戰略，並向市場和消費者展示我們不是舊的鸚鵡螺，而是一家致力於提供一流健身體驗的創新設備和技術公司。

I want to end by thanking our employees and our partners for their commitment to our mission. I am proud to be part of this organization, and I believe the future for our company is bright, and there is much we will accomplish together. And now I'd like to open up the call to your questions. Operator?

最後，我要感謝我們的員工和合作夥伴對我們使命的承諾。我很自豪能成為這個組織的一員，我相信我們公司的未來是光明的，我們將共同完成許多事情。現在我想開始回答你們的問題。操作員？

(Operator Instructions) And our first question is from Steve Dyer with Craig-Hallum.

（操作員說明）我們的第一個問題來自 Steve Dyer 和 Craig-Hallum。

Very nice finish to the year. Congratulations to all of you. Couple of questions from me. First, as it relates to JRNY, I know I've asked this a few quarters, and I'm sure it's not overly material yet, but just anything you can give us in terms of being able to quantify the JRNY participation, attach rate, et cetera, would be helpful.

今年非常美好的結束。祝賀你們所有人。我有幾個問題。首先，因為它與 JRNY 相關，我知道我已經問過這個問題幾個季度了，而且我確信這還不是太重要，但是您可以向我們提供任何能夠量化 JRNY 參與度、附加率的信息等等，會有幫助。

Yes. For sure, I mean, I definitely understand where the question comes from. One of the things we're really going to focus on in our Investor Day is where we want to go with this and how we're going to get there. And that's really what we're going to address there. I will tell you that, like we were hoping, once you get enough equipment that runs JRNY, you accelerate the adoption of it. If you recall, I know you know for sure, Steve, that in 2019, the only product that we sold that had embedded JRNY in a screen was the top end Max Total. So that was our starting point. As you've seen, we've launched 7 new products since then, starting in the fall with VeloCore. And we have one more to go, which is the new Max Total going forward. And as those proliferate the portfolio, that will be a big driver for what we're talking about. But at Investor Day, we'll talk much more about that. And I think that's really what you want to look at is what are the things that we can do, how will we win with this particular platform. In the meantime, we'll just continue to say that we'll report the hard numbers when it becomes material. And it's not yet there, given the JRNY I just mentioned.

是的。當然，我的意思是，我絕對理解這個問題的來源。在投資者日，我們真正要關注的事情之一是我們想要實現這一目標以及我們將如何實現這一目標。這確實是我們要解決的問題。我會告訴你，就像我們希望的那樣，一旦你獲得足夠的運行 JRNY 的設備，你就會加速它的採用。如果你還記得的話，我知道你肯定知道，史蒂夫，在 2019 年，我們銷售的唯一一款在屏幕中嵌入 JRNY 的產品是高端 Max Total。這就是我們的出發點。正如您所看到的，從秋季的 VeloCore 開始，我們已經推出了 7 款新產品。我們還有一項工作要做，那就是新的 Max Total。隨著這些產品組合的激增，這將成為我們正在討論的一個重要驅動力。但在投資者日，我們將更多地討論這一點。我認為您真正想要了解的是我們可以做哪些事情，我們將如何利用這個特定的平台獲勝。與此同時，我們將繼續表示，當確切的數字變得重要時，我們將報告它。考慮到我剛才提到的 JRNY，它還沒有出現。

I guess, in the absence of maybe enough machines running it for long enough, I guess, just generally speaking, are you happy with the uptake and maybe retention rate that you're seeing in the very early days?

我想，在沒有足夠的機器運行足夠長的時間的情況下，我想，一般來說，您對早期看到的吸收率和保留率感到滿意嗎？

Yes, absolutely. Absolutely, we are. It's been exactly what we've expected. At one point, we were offering 6 months or so free. Now the main offer is 2 months free, it gets people go and it gets people to see what we have. As I mentioned, we believe we have more for less. And when people make even the equipment purchase, what they're telling us now is the equipment purchase is somewhat driven by what you get in the platform and how much you pay for that platform. It's kind of a total cost of ownership situation, and we do very well there. Even when some of our products are closer to some of the competitors' actual products, our JRNY subscription is significantly less, especially if you pay on an annual basis. So we've got a real advantage in those -- that real total cost of ownership is really weighing into both the decision of what platform and which equipment to buy.

是的，一點沒錯。當然，我們是。這正是我們所期望的。我們曾一度提供 6 個月左右的免費服務。現在主要優惠是 2 個月免費，它讓人們去看看我們所擁有的東西。正如我所提到的，我們相信我們可以用更少的錢獲得更多的東西。當人們甚至購買設備時，他們現在告訴我們的是，設備購買在某種程度上取決於您在平台中獲得的內容以及您為該平台支付的費用。這是一種總體擁有成本的情況，我們在這方面做得很好。即使我們的某些產品更接近某些競爭對手的實際產品，我們的 JRNY 訂閱量也會明顯減少，特別是如果您按年付費的話。因此，我們在這些方面擁有真正的優勢——真正的總擁有成本確實會影響購買什麼平台和設備的決定。

Yes. Got it. And then I guess just as you look into JRNY further, you talked about some of the off product capabilities, videos, et cetera, that you've put out. Can you talk a little bit more about how you've done that? Are you doing this in-house? Are you licensing it, et cetera?

是的。知道了。然後我想，當您進一步研究 JRNY 時，您談到了您發布的一些非產品功能、視頻等。您能多談談您是如何做到這一點的嗎？你在內部做這個嗎？您是否獲得了許可等等？

Sure. Well, first of all, as you know, the center of the universe for JRNY has not been on-demand videos. It's been that adaptive coaching, AI-driven individualized workouts. However, when the pandemic hit, we saw tremendous acceleration of using classes at-home. So we've added more and more of those classes. We've taken kind of a hybrid approach so far. So for things like, let's say, VeloCore there's no other content you could license for VeloCore there that somebody else makes. We've got to make a lot of our own there. And then we extend it with some licensing.

當然。嗯，首先，如您所知，JRNY 的宇宙中心並不是點播視頻。這就是適應性教練、人工智能驅動的個性化鍛煉。然而，當大流行來襲時，我們看到在家上課的速度急劇加快。因此我們添加了越來越多的此類。到目前為止，我們採取了一種混合方法。因此，對於諸如 VeloCore 之類的內容，您無法為其他人製作的 VeloCore 授權任何其他內容。我們必須在那裡做出很多我們自己的事情。然後我們通過一些許可來擴展它。

Then for other things like a normal spinning class or whatnot, we're able to license from third parties and include that in our library. Long term, what we'll continue to do is kind of what I think is I think a few of our competitors over indexed on that one thing, that was trainer-led video in those classes, we may have under-indexed initially. But it's not a difficult thing to overcome over time. And we're continuing to add more and more of that. And as I mentioned, we'll continue to watch what people use. That's the best part of our connected fitness. It's like, especially if you're a data junky, you can just see the stuff and see what people use and what they don't and invest more in what they like. And then honestly, with social media and some of the groups out there, we hear about things people like and don't like a lot sooner than we used to. It used to be something we'd have to kind of brew for a while till someone felt like picking up the phone and telling us what they thought. It's so easy these days to see that. And so based on the usage and just listening to what people doing, what we're going to continue to invest where we think will make a huge difference. But again, probably overall, I like to think about it as more for less.

然後，對於其他事情，例如普通的動感單車課程或諸如此類的事情，我們可以從第三方獲得許可並將其包含在我們的庫中。從長遠來看，我們將繼續做的事情是我認為我們的一些競爭對手在一件事上過度索引，即這些課程中培訓師主導的視頻，我們最初可能索引不足。但隨著時間的推移，這並不是一件很難克服的事情。我們正在繼續添加越來越多的內容。正如我所提到的，我們將繼續關注人們的使用情況。這是我們互聯健身的最佳部分。就像，特別是如果你是一個數據迷，你可以只看到這些東西，看看人們使用什麼和不使用什麼，然後在他們喜歡的東西上投入更多。老實說，通過社交媒體和一些團體，我們比以前更快地聽到人們喜歡和不喜歡的東西。過去，我們必須醞釀一段時間，直到有人願意拿起電話告訴我們他們的想法。如今很容易看到這一點。因此，根據使用情況並聽取人們的意見，我們將繼續在我們認為會產生巨大影響的領域進行投資。但總的來說，我還是喜歡將其視為事半功倍。

Got it. Strength continues to be strong. I know personally, I'm on my third month of waiting for SelectTech. Are you continuing to see sort of the new order strength there? Or are you still -- has that slowed at all? And you're kind of working more off backlog? I know the strength there kind of maybe caught all of us, including you guys off guard right away.

知道了。實力持續強勁。我個人知道，我等待 SelectTech 已經是第三個月了。您是否繼續看到那裡的新訂單強度？或者你仍然——速度有放緩嗎？你會更多地處理積壓的工作嗎？我知道那裡的力量可能讓我們所有人，包括你們都措手不及。

Yes. No, we're not seeing any decreased demand in anything in the strength category. And it continues to just do everything we can to meet that. We did work through hundreds of thousands of leads like we talked about on those 552s. Our approach was we created kind of a queue so that people didn't get frustrated that they didn't get on the website exactly the right day and the right moment. And rather, we had a kind of a line there. And so we've worked through most of those things -- those and you can now order them on our website, but there's still a 3- to 4-month period waiting. I'm sorry about your own personal situation. We can talk off-line about what we could do for you there. But we continue to see that demand is the answer.

是的。不，我們沒有看到力量類別中任何產品的需求下降。我們將繼續盡一切努力來實現這一目標。正如我們在 552 上談到的那樣，我們確實調查了數十萬條線索。我們的方法是創建一個隊列，這樣人們就不會因為沒有在正確的日期和正確的時間訪問網站而感到沮喪。相反，我們在那裡排了一條隊。我們已經解決了大部分問題，您現在可以在我們的網站上訂購它們，但仍然需要 3 到 4 個月的等待時間。對於您的個人情況，我深感抱歉。我們可以在線下討論我們可以為您做些什麼。但我們仍然認為需求就是答案。

Yes, no problem. One more for me, and then I'll turn it over. You were kind enough to give guidance for the first quarter, so I don't want to beat you up too badly. But -- and it was good, don't get me wrong, but I look at it and I say, you're starting the quarter with more inventory. You're starting the quarter with the biggest backlog ever. You've got the $16 million in revenue deferrals. So why, I guess, would revenue be down $45 million at the midpoint quarter-over-quarter kind of given the tailwind that you have coming in?

是沒有問題。再給我一份，然後我會把它翻過來。你很友善地為第一季度提供了指導，所以我不想太嚴厲地打擊你。但是——這很好，不要誤會我的意思，但我看了之後說，你在本季度開始時會有更多的庫存。本季度伊始，您的積壓量是有史以來最大的。您已獲得 1600 萬美元的收入延期。那麼，我猜想，考慮到您的順風順水，為什麼收入會比上一季度中點下降 4500 萬美元呢？

Yes, sure. I'll start, and then this is a good question for Aina to follow-up. And I think the first thing is to say that the first answer is seasonality, right? I mean it's quite rare in our company history for first quarter to be higher than fourth quarter. So you're just seeing more and more of that happen. And then we had a pretty good comp in the fourth quarter of 2019, one of the better ones. So when you look sequentially, you'll see that. But we are trying to be as helpful as we can. Honestly, we're focused -- 99% of our brands are focused on the long term, right? We order our inventory, we get things in. We want to produce a great quarter for you guys, but we're focused on the long run. And if this stuff wasn't going on, we wouldn't be giving any guidance at all, right? We would just keep marching towards our long-term goal, and we would be focused on that. But we want to give you -- we're halfway through the quarter, so we want to give you as much as we can. Anything you would add to that, Aina?

是的，當然。我先開始，然後這是一個很好的問題，艾娜可以跟進。我認為首先要說第一個答案是季節性，對吧？我的意思是，第一季度高於第四季度的情況在我們公司歷史上相當罕見。所以你只會看到越來越多的事情發生。然後我們在 2019 年第四季度取得了相當不錯的業績，是最好的業績之一。所以當你按順序查看時，你就會看到這一點。但我們正在盡力提供幫助。老實說，我們很專注——我們 99% 的品牌都著眼於長期，對吧？我們訂購庫存，然後把東西放進去。我們希望為你們創造一個出色的季度，但我們關注的是長期。如果這些事情沒有發生，我們根本不會提供任何指導，對吧？我們將繼續朝著我們的長期目標前進，我們將專注於此。但我們想給你——我們這個季度已經過半了，所以我們想給你盡可能多的東西。艾娜，你還有什麼要補充的嗎？

No, you covered it, Jim.

不，你已經涵蓋了，吉姆。

And our next question is from Sharon Zackfia with William Blair.

我們的下一個問題來自莎朗·扎克菲亞和威廉·布萊爾。

So I was hoping you could quantify the logistics cost that you're expecting in the March quarter. And it sounded as if from your commentary that you do expect those to abate in the second half of the year. As I think about -- and I'm talking calendar year, as I think about kind of the buckets here as well, I'm wondering if you're expecting Retail to outpace Direct this year given the addition? It sounds like Costco U.S. is a go. Maybe I misunderstood that, and you're lapping some of the brick-and-mortar shutdowns in the year ago period.

因此，我希望您能夠量化您在三月份季度預計的物流成本。從您的評論來看，您確實預計這些情況會在下半年有所減弱。正如我所想到的——我正在談論日曆年，正如我所想到的那樣，我想知道考慮到增加的內容，您是否預計今年零售業務將超過直接業務？聽起來美國 Costco 是一個不錯的選擇。也許我誤解了這一點，而你正在談論去年同期的一些實體店關閉。

So let me take it in pieces. So I'm not going to tell you the specific dollar amount for the 3 drivers of the cost increase, but definitely a lot of weight on transportation and that new thing that's hitting us with steel prices going up. And agree with you that based on what we see right now, we really believe it to be temporary because things are starting to get rebalanced. I mean there's all this demand, the supply will catch up, and it should, from our vantage point, subside as we get towards the tail end of the year. And then -- oh, I forgot your second question. Can you repeat it?

所以讓我把它分成幾部分。因此，我不會告訴您成本增加的三個驅動因素的具體金額，但肯定是交通運輸和鋼鐵價格上漲對我們造成的新影響很大。同意你的觀點，根據我們現在所看到的情況，我們確實認為這只是暫時的，因為事情開始重新平衡。我的意思是，有這麼多的需求，供應將會迎頭趕上，從我們的角度來看，隨著年底的到來，供應應該會減弱。然後——哦，我忘了你的第二個問題。你能重複一下嗎？

Sorry. I was thinking about channel mix as we think about calendar '21?

對不起。我正在考慮渠道組合，就像我們考慮日曆 '21 一樣？

Yes. So couple of things. So we still are -- Jim had talked about the heights of how quickly can we get supply to not be constrained and be able to just meet demand. We just keep seeing that demand is not abating. And I don't think we're anywhere near ready to say that we've gotten to that point because the demand is climbing. So we're going to probably still be in some sort of supply-constrained situation for most of this year. And we're going to follow the same path that we did in 2020, where you think about what's the best thing to do for overall company and then strategically allocate to retailers as needed while making sure that our direct-to-consumer business can have what they need to also grow that business.

是的。有幾件事。所以我們仍然 - 吉姆談到了我們能夠多快地讓供應不受限制並能夠滿足需求。我們只是不斷看到需求並沒有減弱。我認為我們還沒有準備好說我們已經達到了這一點，因為需求正在攀升。因此，今年大部分時間我們可能仍處於某種供應受限的情況。我們將遵循 2020 年的相同路徑，思考對整個公司來說最好的事情是什麼，然後根據需要戰略性地分配給零售商，同時確保我們的直接面向消費者的業務能夠他們還需要什麼來發展該業務。

One of the cool things about Retail, which is obvious is they tell us what they want in advance. Whereas our Direct business, while it has many great qualities, it's sort of a day-to-day, week-to-week type of thing and we react based on that. But when we talk to retailers about what they want for the rest of the year, it's robust and it continues. So it was really close last year between Retail and Direct. But -- so I don't know who's going to win that one this year, but we will tell you, I know a little bit more about Retail than I do Direct at this point because just the way the business works and the forward commits that we get from our retailers.

零售業最酷的事情之一是他們提前告訴我們他們想要什麼，這是顯而易見的。而我們的直銷業務雖然有很多優秀的品質，但它是一種日復一日、周復一周的事情，我們會據此做出反應。但當我們與零售商談論他們今年剩餘時間想要什麼時，這種情況很強勁並且持續存在。所以去年零售和直銷之間的差距非常接近。但是——所以我不知道今年誰會贏得這個獎項，但我們會告訴你，我對零售的了解比我對直接的了解多一些，因為業務的運作方式和前瞻性承諾我們從零售商處獲得的。

And Jim, did I hear you right, are you in full rollout with Costco U.S.?

吉姆，我沒聽錯吧，你們正在與美國 Costco 全面合作嗎？

We've got several programs there. We have more programs hitting in the third and fourth quarter, when you would expect that people would be looking for that seasonally. But we have a great relationship with them, and we have really taken it to the next level. And like many of the other retailers, really, they're very interested in getting their hands on a number of our products.

我們在那裡有幾個項目。我們在第三季度和第四季度推出了更多節目，您會預計人們會季節性地尋找該節目。但我們與他們有著良好的關係，並且我們確實將其提升到了一個新的水平。和許多其他零售商一樣，他們確實非常有興趣購買我們的一些產品。

And then just one last question on JRNY. I think you mentioned that you are starting to do more off-machine classes. Are you -- I mean, is there a thought here that you might have digital-only subs that kind of are independent of any of the machines that you might sell?

最後一個問題是關於 JRNY 的。我想你提到你開始做更多的機外課程。您是否——我的意思是，您是否有這樣的想法：您可能擁有獨立於您可能銷售的任何機器的純數字潛艇？

It could be. I mean, as I've said before, I sort of see 3 use cases. Number one, and really core for the near future is as an operating system for our machines. Second of all, in-home off-machine. When you want to do every third day, you want to do some yoga or some stretching or some body weight exercises, maybe some strength exercises. We want to be there for you, right? And we want that to be part of the ecosystem. And then finally, when you go outside, even though you're not working out with us, if we want to really provide some view to your overall fitness level, we can't forget that either. So we see those all as future scenario.

它可能是。我的意思是，正如我之前所說，我看到了 3 個用例。第一個，也是不久的將來真正的核心是作為我們機器的操作系統。其次，在家中脫機。當你想每三天做一次時，你想做一些瑜伽或一些伸展運動或一些體重練習，也許一些力量練習。我們想為您服務，對吧？我們希望它成為生態系統的一部分。最後，當您外出時，即使您沒有和我們一起鍛煉，如果我們想真正提供一些有關您整體健康水平的視圖，我們也不能忘記這一點。所以我們將這些都視為未來的場景。

Right now, we're focused most on that part where it's an operating system for our products. But more so, we don't want people to churn because, look, they need a different experience to do yoga occasionally, right? We think most of our customers love our machines, are on our machines most of the time. But why leave that door open for someone else to go ahead and do? So we're going to continue to monitor what our customers want and what they use and we'll give them more of that. That's the way we think about that. But it is, for the first time, getting a little bit into that second scenario.

目前，我們最關注的是我們產品的操作系統部分。但更重要的是，我們不希望人們流失，因為，看，他們偶爾需要不同的體驗來練習瑜伽，對吧？我們認為大多數客戶都喜歡我們的機器，大部分時間都在使用我們的機器。但為什麼要為其他人敞開大門呢？因此，我們將繼續監控客戶的需求和使用情況，並為他們提供更多信息。這就是我們的想法。但這是第一次，稍微涉及到第二種情況。

Our next question is from Mike Swartz with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Mike Swartz。

Just one point of clarification. I know on the guidance, the 55% to 75% increase year-over-year in the March quarter that you're anticipating, is that -- does that exclude Octane? Or is Octane in the base when you're talking about that?

僅澄清一點。我知道根據指導意見，您預計 3 月份季度同比增長 55% 至 75%，這是否排除了辛烷？或者當你談論這個時，辛烷是在鹼中嗎？

Octane is in the base.

辛烷在鹼中。

Okay.

好的。

That's a good answer, right?

這是一個很好的答案，對吧？

Because it will be higher if we exclude Octane.

因為如果我們排除辛烷，它會更高。

Right. Just a point of clarification. I think everyone probably was just wondering.

正確的。只是澄清一點。我想大家可能只是想知道。

Yes, I know, thank you for asking that.

是的，我知道，謝謝你的提問。

And then just in terms of the cadence of product development, Jim, over the last few years, I think, until 2020, the cadence is really maybe 3, 4 products a year in the Bowflex business. This year, it's 7, 8. I guess, what's the right number? And what's the level of R&D spend that will support that cadence going forward?

然後就產品開發的節奏而言，Jim，在過去的幾年裡，我認為，直到 2020 年，Bowflex 業務的節奏實際上可能是每年 3、4 個產品。今年是7、8。我猜，正確的數字是多少？支持這種節奏的研發支出水平是多少？

Yes. I mean it's been a highly unusual year for COVID reasons, we didn't quite see the seasonality, and we also didn't see our launches go as we wanted in terms of the exact dates and stuff. So we had some delays. That was kind of the learning that I mentioned to be completely honest. But we knew we were behind in connected fitness. So it had to be part of our catch up to do more than what we would normally do in terms of advancing our portfolio in connected fitness. That's why you saw 7 so far, 8 total in the cardio line as we really wanted to refresh that whole thing. I feel great about those trends, they're getting great uptick. The 2 VeloCore bikes are fantastic. The C7 is doing extremely well in Retail. And then we've got 1 of the Maxes out already, and we've got the next one to come. So we really kind of profoundly rippled that through the portfolio, which you've got to do when you're a little behind what we've discussed. So that really drove us.

是的。我的意思是，由於新冠疫情的原因，今年是非常不尋常的一年，我們沒有完全看到季節性，而且我們也沒有看到我們的發佈在確切的日期和內容方面按照我們想要的方式進行。所以我們有一些延誤。這就是我所說的完全誠實的學習。但我們知道我們在互聯健身方面落後了。因此，在推進我們的互聯健身產品組合方面，我們必須採取比平常更多的行動。這就是為什麼到目前為止，您在有氧運動系列中看到了 7 個，總共 8 個，因為我們真的想刷新整個事情。我對這些趨勢感覺很好，它們正在大幅上升。2 輛 VeloCore 自行車非常棒。C7 在零售領域表現非常出色。我們已經推出了其中一款 Max，並且即將推出下一款。因此，我們確實通過投資組合深刻地影響了這一點，當您稍微落後於我們所討論的內容時，您就必須這樣做。這確實推動了我們。

It probably depends on which employee you ask if that was too much or not, to me, it was not a choice. To our Head of Product Development, Chris Q, wasn't a choice. It was something we had to go for. So going forward, I think we've done most of what we want to cardio. I don't think you'll see 7, 8, 9 each year anymore. I think that was a big year for that. But we'll be talking soon about what we'll be doing for other products for 2021. We've got some exciting things, but it will be fewer, to your point. I think that's -- we did a lot -- we maybe did a couple of years' worth of refreshment to that cardio portfolio in 1 year. And now we're going to focus on some other modalities coming up.

這可能取決於你問哪位員工這是否太多，對我來說，這不是一個選擇。對於我們的產品開發主管 Chris Q 來說，這不是一個選擇。這是我們必須追求的目標。所以展望未來，我認為我們已經完成了大部分我們想要的有氧運動。我想你不會再每年看到 7、8、9 了。我認為那是重要的一年。但我們很快就會討論 2021 年其他產品的計劃。我們有一些令人興奮的事情，但就你的觀點而言，會更少。我認為——我們做了很多——我們可能在一年內對有氧運動產品組合進行了幾年的更新。現在我們將重點關注即將出現的其他一些模式。

And our next question is from Mark Smith with Lake Street Capital Markets.

我們的下一個問題來自 Lake Street Capital Markets 的 Mark Smith。

First one for me is just can you quantify or talk at all about Retail channel inventory and kind of where that's sitting today? And maybe how long it's going to take to catch up there?

對我來說，第一個問題是您能否量化或談論零售渠道庫存及其目前的狀況？也許需要多長時間才能趕上那裡？

When you say Retail Canada, like in the stores, the brick-and-mortar stores or just for the segment?

當您提到加拿大零售業時，例如商店、實體店還是僅針對該細分市場？

Yes. We're really kind of in-store, what you're looking at out there, what you can see and what you have visibility into today?

是的。我們實際上是在店內，您在外面看到什麼，您能看到什麼以及您今天能看到什麼？

I think I'm probably speaking for our Head of Retail, it's not enough. I mean we get them in and they get sold out really, really quickly. Kind of just going back to our earlier comment, we're still trying to get closer to matching supply and demand. And for both the Direct and the Retail side, demand has just not abated even with vaccines rolling out.

我想我可能是在代表我們的零售主管發言，但這還不夠。我的意思是，我們把它們放進去，然後它們很快就賣完了。回到我們之前的評論，我們仍在努力接近供需匹配。對於直接和零售方面來說，即使疫苗推出，需求也沒有減弱。

Okay. And then as we look at Retail versus Direct, maybe talk big picture how you guys are kind of weighing the balance there. Obviously, a lot of profitability that can come through going Direct, but how do you balance that with your partnerships and relationships with your retail partners and getting them the supply that they need.

好的。然後，當我們考慮零售與直銷時，也許可以談談你們如何權衡兩者之間的平衡。顯然，通過直營可以帶來很多盈利能力，但你如何平衡你與零售合作夥伴的合作夥伴關係，並為他們提供所需的供應。

Yes. You've laid it out perfectly. I mean that is exactly what happened. And honestly, it's one of those new learnings and muscles that we haven't ever used before because we hadn't had the portfolio on fire all at the same time. And we hadn't had as many products that crossed over from Retail and Direct. It used to be that Direct had its own products that you could only get in Direct. And Retail, there were a few products that crossed over, but not as many as they do today. And it's true, on an omnichannel sense, you want to give everyone a chance to experience your product however they want to experience. So we feel really good about that approach. But we have definitely had many, many sit downs. And they're not friendly sometimes. I mean, they're really -- we've got people who are strong advocates for their customer base. But you're exactly right. The trade-off is, if you only cared about short-term profitability and cash gen, you would give everything to Direct. And we could sell it all. I would say virtually everything, just to cover myself a little bit in my absolutes. But we know -- and I just told you things we love about Retail, right? It's more predictable, it's more stable. They tell us -- retailers tell us what they want in advance, we have a good picture on what 2021 is going to look like in Retail. We have a better picture of that because they're used to giving us those types of things. So we love Retail. But we have literally sat down and put retailers in priority order. We've done it product by product. And we've gone through and said, what can we give everyone and still support our own Direct business? I feel like we've done a great job, but it's one of those years where, if you ask any retailer, if you ask our Head of Direct, everyone would say that they didn't get enough. So it's like -- it's one of those things. But we're doing, I think, a really good systemic way. I would say, it's our and its science together, but it's the way we've been doing it. And we want to grow those long-term retailer relationships in a big way. We want to fuel new retailers that they've never carried this category before because at one point, we were kind of topped off with people who sold fitness, and now that's not the issue at all. So we want to keep moving the bar on all of those things. And I wish I could tell you there was some magic black box algorithm that would give us the result. But honestly, it's through discussion, debate, and really looking partner by partner, what can we do and how can we do as much for all of our partners and for our Direct business as we possibly can.

是的。你已經把它完美地佈置了。我的意思是，這正是發生的事情。老實說，這是我們以前從未使用過的新知識和新力量之一，因為我們沒有同時讓投資組合火起來。而且我們還沒有那麼多從零售和直銷交叉的產品。過去，Direct 有自己的產品，您只能在 Direct 中獲得。零售業也有一些產品交叉，但沒有今天那麼多。確實，從全渠道的角度來看，您希望讓每個人都有機會以他們想要的方式體驗您的產品。所以我們對這種方法感覺非常好。但我們確實有過很多很多次的坐下來。而且他們有時並不友好。我的意思是，他們確實是——我們有一些人是他們客戶群的強有力的擁護者。但你是完全正確的。權衡是，如果你只關心短期盈利能力和現金生成，你就會把一切都交給 Direct。我們可以全部賣掉。我幾乎會說出所有的事情，只是為了用我的絕對觀點來掩蓋自己。但我們知道——我剛剛告訴過你我們喜歡零售業的事情，對嗎？它更可預測，更穩定。他們告訴我們——零售商提前告訴我們他們想要什麼，我們對 2021 年零售業的情況有一個很好的了解。我們對此有更好的了解，因為他們習慣於向我們提供這些類型的東西。所以我們熱愛零售業。但我們實際上已經坐下來，對零售商進行了優先排序。我們已經逐個產品地完成了它。我們已經問過，我們可以為每個人提供什麼，同時仍然支持我們自己的 Direct 業務？我覺得我們做得很好，但今年，如果你問任何零售商，如果你問我們的直銷主管，每個人都會說他們做得還不夠。所以這就像——這是其中之一。但我認為，我們正在採取一種非常好的系統性方法。我想說，這是我們及其科學的共同之處，但這是我們一直在做的方式。我們希望大力發展這些長期的零售商關係。我們希望為以前從未經營過這一類別的新零售商提供動力，因為在某一時刻，我們的銷售健身產品的人有點多，但現在這根本不是問題。因此，我們希望繼續提高所有這些事情的標準。我希望我能告訴你有一些神奇的黑匣子算法可以給我們結果。但老實說，這是通過討論、辯論以及真正逐個尋找合作夥伴，我們能做什麼以及如何為我們所有的合作夥伴和我們的直接業務做盡可能多的事情。

And as we look at that relationship with your retail partners, as you brought in new partners, as there's significant demand there, how much is you guys talked a little bit about price increases that help boost margin? How much of that may be fit, was there any more that fit into Retail than there was in the Direct segment? And is there opportunities due to the demand environment to be able to take more pricing in that Retail segment?

當我們審視與你們的零售合作夥伴的關係時，當你們引入新的合作夥伴時，因為那裡有巨大的需求，你們談論了多少有助於提高利潤的價格上漲？其中有多少可能適合，是否有比直接細分市場更適合零售的？由於需求環境，是否有機會在零售領域採取更高的定價？

I don't know, Aina, if it's one more than the other. I will say that when you raise the price and you're an omnichannel, if you have separate products in each channel, you would just -- you would increase the price independently. And it would be a lot easier. When you carry the same products across multiple channels, you have to really coordinate and also it takes a little bit longer to get to your price increases because you set an expectation for a retailer of a cost and then you have to go back to that retailer and say, "Hey, steel went up. FX is going against us, we're going to have to do something here to help us." And so it takes a little bit longer. If you were a Direct-only business or you were favoring Direct disproportionately, like I think some competitors do, then that would be an easier decision. But I don't think that there's any price difference. I mean, I wouldn't say that it helps one versus the other. It's just -- it takes a little bit longer in Retail, and it has to be very much coordinated. We can't do 1 channel without the other or else we have our own version of arbitrage going on.

我不知道，艾娜，是不是多了一個。我想說的是，當你提高價格並且你是全渠道時，如果你在每個渠道都有單獨的產品，你就會獨立地提高價格。這會容易得多。當您通過多個渠道銷售相同的產品時，您必須真正協調，並且需要更長的時間才能達到價格上漲，因為您為零售商設定了成本預期，然後您必須返回到該零售商並說： “嘿，鋼鐵價格上漲了。外匯對我們不利，我們必須在這裡做點什麼來幫助我們。”所以這需要更長的時間。如果您是一家僅限 Direct 的企業，或者您過分偏愛 Direct，就像我認為某些競爭對手所做的那樣，那麼這將是一個更容易的決定。但我不認為價格有任何差異。我的意思是，我不會說這對彼此有幫助。只是——零售業需要更長的時間，而且必須非常協調。我們不能只做一個通道而沒有另一個通道，否則我們就會有自己的套利版本。

And our next question is from George Kelly with ROTH Capital Markets.

我們的下一個問題來自羅斯資本市場公司的喬治·凱利。

So I have a couple for you. First, on media advertising. I was wondering if you could -- I may have missed it in your remarks, but could you share what media advertising was in the quarter? And then have you seen it start to kind of normalize at all so far this year? And what's your anticipation just about when we could start to see it get to sort of pre-COVID-type levels?

所以我有一些給你。首先，關於媒體廣告。我想知道您是否可以——我可能在您的講話中漏掉了這一點，但是您能否分享一下本季度的媒體廣告情況？今年到目前為止，您是否看到它開始正常化？當我們開始看到它達到新冠疫情之前的水平時，您有何預期？

Yes. Aina is going to go find the number for you while I'm starting. So the pre- and post-COVID thing is again continues to be a crystal ball exercise. I mean, as we said, we've not seen any change in demand. We haven't seen any drop there at all. So we feel like that's still going in. So many of the same reasons why we spent less initially are still there. If you're selling your entire portfolio, you don't need to spend to continue to drive that. At the same time, we look at our brands, and you'll hear more about this at Investor Day, but our brands are so well-known, but sometimes they're not known for what we want to be known for, right? So we get -- sometimes it's -- oh, yes, you guys used to do late night infomercial back in the -- pick your decade. And that ain't who we want to be, we want to be that digital-forward company. We are a technology company now, and so we want to be perceived as such.

是的。我出發的時候艾娜會去幫你找電話號碼。因此，新冠疫情前後的情況仍然是一個水晶球練習。我的意思是，正如我們所說，我們沒有看到需求發生任何變化。我們根本沒有看到任何下降。所以我們覺得這種情況仍在繼續。我們最初減少支出的許多相同原因仍然存在。如果您要出售整個投資組合，則無需花錢繼續推動這一業務。與此同時，我們也會關注我們的品牌，你會在投資者日聽到更多關於這一點的信息，但我們的品牌是如此知名，但有時它們並不因為我們想要為人所知的東西而聞名，對吧？所以我們得到——有時是——哦，是的，你們過去常做深夜電視廣告——選擇你的十年。這不是我們想成為的人，我們想成為一家數字化的公司。我們現在是一家科技公司，因此我們希望被視為一家科技公司。

So if you look at some of the VeloCore advertising that we saw, it's a lot more highlighting our technology. And as we step forward, you're going to see more and more of that come out. So all that to say that we do marketing for kind of 2 reasons. One is to drive demand generation, i.e., transactions. And when things -- when we have our back up against the wall, that sometimes all we can afford to do. But one of the things you'll see in North Star, one of the things we want to stay committed to is to advance our brand and get it to where we'd like it to be. Not where we were, but where we are. Not that it's just known, but it's also driving purchase consideration in a greater way than it has. So we're going to continue to spend there. So even if we could sell everything we have, you'll see us begin to advertise more just for that reason as well. And we're going to try to put money aside to continue to do that type of thing. So I think that just gives you a view.

因此，如果你看一下我們看到的一些 VeloCore 廣告，你會發現它更多地強調了我們的技術。隨著我們向前邁進，您將看到越來越多的內容出現。綜上所述，我們進行營銷有兩個原因。一是推動需求產生，即交易。當事情發生時——當我們陷入困境時，有時我們就只能這麼做了。但你會在北極星看到的一件事，我們想要繼續致力於的事情之一，就是提升我們的品牌並使其達到我們想要的目標。不是我們曾經在哪裡，而是我們現在在哪裡。這並不是說它剛剛為人所知，但它也比以前更大地推動了購買考慮。所以我們會繼續在那裡消費。因此，即使我們可以出售我們擁有的一切，您也會看到我們也因為這個原因開始做更多廣告。我們將嘗試存錢繼續做這類事情。所以我認為這只是給你一個觀點。

I don't know exactly when we're going to go heavy on one or the other, we make these decisions not hugely in advance, just by looking at how things are going in the marketplace. We're going to have some new spots coming up. We're going to take it to the next level. We're going to have brand and transactional advertising. And we're going to make sure we commit to getting our brands and our transactions where they need to be. When is very tough to tell. That's a short term quarter-to-quarter. But we'll give you an idea at Investor Day what we kind of think are our more evergreen model for how we think we'll need to spend over time and what we're going to put aside for that. I think that will be more helpful.

我不知道我們什麼時候會大力發展其中之一，我們不會提前太多，只是通過觀察市場的發展情況來做出這些決定。我們將會有一些新的地點出現。我們將把它提升到一個新的水平。我們將有品牌和交易廣告。我們將確保我們致力於讓我們的品牌和交易達到所需的水平。什麼時候很難說。這是一個季度的短期情況。但我們將在投資者日向您介紹我們認為更常青的模型，即我們認為隨著時間的推移我們需要如何花費以及我們將為此預留什麼。我認為這會更有幫助。

Okay. Great.

好的。偉大的。

And then you were asking about media advertising, it's about $10 million. It was $34 million for the direct media for the year and about $10 million-ish for Q4.

然後你問的是媒體廣告，大約是1000萬美元。今年直接媒體的營收為 3400 萬美元，第四季度約為 1000 萬美元。

Okay, great. And then next question for me about your product portfolio. I saw at least one of your sort of big legacy modalities, get discount speaking, a TreadClimber get discontinued this year. I was wondering if you think your portfolio now is in sort of a good place. And I think, Jim, I think you said in response to one of the earlier questions that you're working on new modalities. And I was curious if that's something we should learn more about and if that's a 2021 event?

好的，太好了。接下來我要問的問題是關於你們的產品組合。我至少看到了你們的一種大型傳統模式，就折扣而言，TreadClimber 今年停產了。我想知道你是否認為你的投資組合現在處於一個不錯的位置。我想，吉姆，我想你在回答之前的問題之一時說過，你正在研究新的模式。我很好奇我們是否應該更多地了解這方面的內容，以及這是否是 2021 年的活動？

First of all, yes, I'm not necessarily saying new modalities. I was just saying we hadn't said where we're going to invest in terms of modalities, just to clarify that. And then your question, yes, I think I told you, one of the things I really thought when I first came in here is that we were over skewed in a few areas. I think that happens at companies like ours when you're trying to give each retailer something unique, for example. We think we can give retailers many, many things in our value equation without having exactly a unique product for each individual retailer. So we're -- I think we're overskewed still a TreadClimber would be the example of that. I did mention in my prepared remarks that we were continuing to skew rationalize, and we'll continue to do that.

首先，是的，我不一定是在說新的模式。我只是說我們沒有說我們將在哪些方面進行投資，只是為了澄清這一點。然後你的問題是，是的，我想我告訴過你，當我第一次來到這裡時，我真正想到的一件事是我們在一些領域過度傾斜。例如，我認為當你試圖為每個零售商提供獨特的東西時，像我們這樣的公司就會發生這種情況。我們認為，我們可以為零售商提供價值等式中的許多東西，而無需為每個零售商提供完全獨特的產品。所以我們——我認為我們仍然過度傾斜，TreadClimber 就是一個例子。我在準備好的發言中確實提到，我們正在繼續偏向合理化，我們將繼續這樣做。

I think one of the things you'll see when we talk about North Star is its focus, right? You've already seen the focus on at-home and not commercial. You're going to see focus on fewer SKUs. And we've already seen our sale -- our balance of sales is coming from just the top SKUs, disproportionately to top SKUs compared to other years. You're going to see what we're going to do with brands. We've got 5 or 6 brands in our portfolio, but there's going to be a priority, and you'll see that priority. But you will see lots of focusing decisions because strategy, in my opinion, is deciding what not to do as much as it is what to do. So I'm sorry if we've got real big fans for TreadClimbers. In fact, we have one of our Board members that I am sure is chuckling right now, who is a TreadClimber zealot, but you have to make these decisions, these are -- you can't just add. You've got the pair, and you've got the focus. And that's an example of precisely that.

我想當我們談論北極星時你會看到的一件事就是它的焦點，對嗎？您已經看到了對家庭而非商業的關注。您將看到更少的 SKU 受到關注。我們已經看到了我們的銷售情況——我們的銷售餘額僅來自頂級 SKU，與其他年份相比，頂級 SKU 的比例不成比例。你將會看到我們將如何處理品牌。我們的產品組合中有 5 或 6 個品牌，但會有一個優先級，你會看到這個優先級。但你會看到很多集中決策，因為在我看來，戰略既決定不做什麼，也決定做什麼。如果我們有 TreadClimbers 的忠實粉絲，我很抱歉。事實上，我們有一位董事會成員，我確信他現在正在咯咯地笑，他是 TreadClimber 的狂熱分子，但你必須做出這些決定，這些是 - 你不能只是添加。你已經擁有了這對，並且你已經成為了焦點。這就是一個例子。

Okay, great. And then last question for me. Your balance sheet is in such improved condition now versus a year ago. What do you think is there any kind of unique use of cash? I'm thinking of big CapEx projects this year for any reason or M&A? I mean, what is this balance sheet now? Sort of what are you considering anything?

好的，太好了。然後是我的最後一個問題。與一年前相比，現在您的資產負債表狀況有所改善。您認為現金有什麼獨特的用途嗎？我今年出於某種原因考慮大型資本支出項目或併購？我的意思是，現在的資產負債表是多少？您正在考慮什麼？

Yes. As we said, and I'll start and Aina can back me up here. But we've got priorities that will make a lot clearer in North Star when we're talking about that. And I'm talking long-term priorities. But you've -- you're aware of some of them, right? We want to continue to invest in marketing. We want to continue to invest in JRNY and becoming a more digital company. There's probably a little bit of technical debt on our IT systems that honestly, you discover even faster when you get high-volume like we did in 2020, it'd be one of those learnings that I'm talking about. You've got to say, look, if I want to get places faster, am I strictly organic? Or do I look at inorganic ways to grow the business. And we're not going to buy another Octane or anything like that. But if we feel like there's great technologies out there, if we feel like there's ways to scale JRNY faster through partnerships, we will absolutely take those bets. And so we feel like that's good fuel. We're not exactly how -- sure how we're going to spend all that fuel just now, but we know what our priorities are, and we'll be even clearer about those priorities when we talk about North Star. Do you have anything to add, Aina?

是的。正如我們所說，我會開始，艾娜可以在這裡支持我。但當我們談論這個問題時，我們的優先事項將在北極星中變得更加清晰。我說的是長期優先事項。但你已經——你知道其中一些，對吧？我們希望繼續投資於營銷。我們希望繼續投資 JRNY，成為一家更加數字化的公司。我們的 IT 系統可能存在一些技術債務，老實說，當您像 2020 年那樣獲得高容量時，您會發現速度更快，這將是我正在談論的學習之一。你必須說，看，如果我想更快地獲得名額，我是嚴格意義上的有機人嗎？或者我是否會尋找無機方法來發展業務。我們不會再購買辛烷或類似的東西。但如果我們覺得有很棒的技術，如果我們覺得有辦法通過合作夥伴關係更快地擴展 JRNY，我們絕對會接受這些賭注。所以我們覺得這是很好的燃料。我們現在還不知道如何使用所有燃料，但我們知道我們的優先事項是什麼，當我們談論北極星時，我們會更清楚這些優先事項。艾娜，你還有什麼要補充的嗎？

You covered it, Jim.

你涵蓋了它，吉姆。

And ladies and gentlemen, we have reached the end of the question-and-answer session, and I would like to turn the call back over to CEO, Jim Barr, for closing remarks.

女士們、先生們，問答環節已經結束，我想將電話轉回給首席執行官吉姆·巴爾 (Jim Barr)，讓其致閉幕詞。

Thank you, everyone, for joining today's call. We really appreciate it, and we look to speak to you again rather shortly when we start talking about our long-term vision and growth strategy at Investor Day. Thank you very much, and have a great day.

謝謝大家參加今天的電話會議。我們真的很感激，當我們在投資者日開始談論我們的長期願景和增長戰略時，我們希望很快再次與您交談。非常感謝，祝您有美好的一天。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation, and again, have a great day.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與，再次祝您度過愉快的一天。