Petmed Express Inc (PETS) 2023 Q1 法說會逐字稿

Good afternoon, everyone, and thank you for joining the PetMed Express First Quarter Earnings Conference Call. My name is Camilla and I will be the Operator for today's call. I would now like to pass the conference over to our host, Mr. Brian Prenoveau, with Investor Relations. Sir, the floor is now yours.

大家下午好，感謝您參加 PetMed Express 第一季度收益電話會議。我叫卡米拉，我將擔任今天通話的接線員。現在我想將會議轉交給我們的東道主投資者關係部門的 Brian Prenoveau 先生。先生，現在地板是你的了。

Thank you, Operator. I'd like to welcome everybody here today to the PetMed Express Fiscal First Quarter Earnings Call. I would also like to remind everyone that the first portion of this conference call will be listen only until the question-and-answer session, which will be later in the call.

謝謝你，接線員。我謹歡迎今天參加 PetMed Express 第一季度財報電話會議的各位。我還想提醒大家，本次電話會議的第一部分將僅在問答環節之前進行收聽，問答環節將在電話會議稍後進行。

Also, certain information that will be included during this call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934 as amended that may involve a number of risks and uncertainties. These statements are based on our beliefs as well as assumptions we have used based upon information currently available to us. Because these statements reflect our current views concerning future events, these statements involve risks, uncertainties and assumptions.

此外，本次電話會議中將包含的某些信息可能包括1995 年《私人證券訴訟改革法》和《1934 年證券交易法》（修訂版）含義內的前瞻性陳述，這些陳述可能涉及許多風險和不確定性。這些陳述基於我們的信念以及我們根據當前可獲得的信息所使用的假設。由於這些陳述反映了我們目前對未來事件的看法，因此這些陳述涉及風險、不確定性和假設。

Actual results could differ materially from those projected. There can be no assurance that any forward-looking results will occur or be realized. Nothing contained in this presentation is or should be relied upon as a representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of PetMeds. PetMeds undertakes no obligation to update publicly these forward-looking statements based on subsequent events, except as may be required by applicable law regulation or other competent legal authority. We have identified various risk factors associated with our operations in our most recent annual report and other filings with the Securities and Exchange Commission.

實際結果可能與預測存在重大差異。無法保證任何前瞻性結果將會發生或實現。本演示文稿中包含的任何內容均不應也不應被視為對任何未來事項的陳述或保證，包括與 PetMeds 的運營或業務或財務狀況有關的任何事項。 PetMeds 不承擔根據後續事件公開更新這些前瞻性陳述的義務，除非適用法律法規或其他主管法律機構可能要求。我們在最近的年度報告和向美國證券交易委員會提交的其他文件中確定了與我們的運營相關的各種風險因素。

Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release we issued this afternoon. Now let me introduce our CEO and President, Matt Hulett. Matt?

此外，在今天的電話會議期間，該公司將討論一項或多項非公認會計準則財務措施。我們今天下午發布的新聞稿中包含了這些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表。現在讓我介紹一下我們的首席執行官兼總裁 Matt Hulett。馬特？

Thank you, Brian. Thank you for making the time today to participate in our earnings call. We are looking forward to sharing our operational advancements and financial achievements with the investment and analyst community. First, we will provide an overview of our business progress since our last update on May 18, 2023. This will offer insights into the significant developments and milestones achieved during this period. Second, we will provide a summary of our quarterly financial results, including a detailed analysis of our financial performance.

謝謝你，布萊恩。感謝您今天抽出時間參加我們的財報電話會議。我們期待與投資和分析師界分享我們的運營進步和財務成就。首先，我們將概述自 2023 年 5 月 18 日上次更新以來我們的業務進展。這將深入了解在此期間取得的重大發展和里程碑。其次，我們將提供季度財務業績摘要，包括對財務業績的詳細分析。

PetMeds is a company that delivers prescription and nonprescription medications, food, supplements, supplies and vet services direct to the consumer. Our expert online pharmacy is an established and trusted brand, as evidenced by the fact that we have served more than 11 million pet parents over our company's 27-year operating history.

PetMeds 是一家直接向消費​​者提供處方藥和非處方藥、食品、補充劑、用品和獸醫服務的公司。我們的專業在線藥房是一個成熟且值得信賴的品牌，我們在公司 27 年的運營歷史中為超過 1100 萬寵物父母提供了服務就證明了這一點。

While we have a loyal customer base of pet parents who value our brand service and quality, we believe our company and this industry can provide even more to the millions of pet parents across the country. As such, our goal is to be the market leader in pet wellness and health care or as we like to say, the trusted pet health experts because we believe every pet deserves to live a long, happy, healthy life.

雖然我們擁有忠實的寵物父母客戶群，他們重視我們的品牌服務和質量，但我們相信我們的公司和這個行業可以為全國數百萬寵物父母提供更多服務。因此，我們的目標是成為寵物健康和保健領域的市場領導者，或者正如我們所說，成為值得信賴的寵物健康專家，因為我們相信每隻寵物都應該過上長壽、快樂、健康的生活。

Next slide, please. Since April, we have been fully engaged in integrating our latest acquisition, PetCareRx, into the PetMeds family, a significant milestone for our organization. This acquisition presents a compelling opportunity for us to expand our product catalog and capitalize on the many synergies between PetCareRx and PetMed. By leveraging the PetCareRx catalog, we can offer a broader range of products to our PetMed's customer base. This strategic move aligns with our core investment thesis and positions us for further growth and success.

請下一張幻燈片。自 4 月以來，我們一直致力於將最新收購的 PetCareRx 整合到 PetMeds 系列中，這對我們組織來說是一個重要的里程碑。此次收購為我們提供了一個絕佳的機會，可以擴大我們的產品目錄並利用 PetCareRx 和 PetMed 之間的諸多協同效應。通過利用 PetCareRx 目錄，我們可以為 PetMed 的客戶群提供更廣泛的產品。這一戰略舉措符合我們的核心投資理念，為我們的進一步增長和成功奠定了基礎。

Since its inception, PetMed has focused primarily on pet medication refills and PetCareRx accelerates our plan to improve the legacy PetMeds business. Our aim is to enhance our merchandising capabilities and expand our product offerings with a particular emphasis on consumables, while continuing to leverage our core expertise in pet medication. This evolution will meet the broader needs of our customers and will strengthen our market position as a comprehensive pet care provider.

自成立以來，PetMed 主要專注於寵物藥物補充品，PetCareRx 加速了我們改善傳統 PetMeds 業務的計劃。我們的目標是增強我們的銷售能力並擴大我們的產品供應，特別是消耗品，同時繼續利用我們在寵物藥品方面的核心專業知識。這一演變將滿足我們客戶更廣泛的需求，並將鞏固我們作為綜合寵物護理提供商的市場地位。

So far, our efforts are yielding encouraging results. Since completing the acquisition, we have undertaken a thorough data optimization process, ensuring that our AI-based site recommendation engine is fully optimized to suggest relevant nonprescription products to our customers. Furthermore, we have enhanced the site experience for our valued returning customers, encouraging them to purchase additional products personalized to their individual pet's needs.

到目前為止，我們的努力正在取得令人鼓舞的成果。自完成收購以來，我們進行了徹底的數據優化流程，確保我們基於人工智能的網站推薦引擎得到充分優化，能夠向客戶推薦相關的非處方產品。此外，我們還為尊貴的回頭客增強了網站體驗，鼓勵他們購買根據其個人寵物需求個性化的其他產品。

In addition, our newly designed checkout process provides a seamless and convenient experience, further bolstering customer satisfaction and loyalty. In line with our commitment to providing services from nose to tail, we have begun integrating the PetCareRx catalog into our operations, including our distribution facilities. As part of the PetCareRx product integration, we now offer the complete food line of Purina products, including its prescription food line. Purina is one of the largest pet food product companies in the world. The Purina product line ranks in the top 10 best-selling brands for PetCareRx. And by integrating the PetCareRx product offering, we have extended this world-class brand to our PetMeds offering for pet parents.

此外，我們新設計的結賬流程提供了無縫、便捷的體驗，進一步提高了客戶滿意度和忠誠度。為了履行我們提供從頭到尾服務的承諾，我們已開始將 PetCareRx 目錄整合到我們的運營中，包括我們的分銷設施。作為 PetCareRx 產品集成的一部分，我們現在提供 Purina 產品的完整食品系列，包括其處方食品系列。普瑞納是全球最大的寵物食品公司之一。 Purina 產品線躋身 PetCareRx 最暢銷品牌前 10 名。通過整合 PetCareRx 產品，我們將這個世界級品牌擴展到為寵物父母提供的 PetMeds 產品中。

Purina's focus on pet health and providing options that help with pet allergies, weight management, joint health and immune support, among other targeted health benefits aligned so well with our goal to be the market leader in pet wellness and health care. We will start to see other benefits from the unification of PetMeds and PetCareRx. As an example, we have started to leverage our combined buying power and believe we will be able to deliver lower cost to our customers on a per unit basis.

普瑞納專注於寵物健康，並提供有助於寵物過敏、體重管理、關節健康和免疫支持以及其他有針對性的健康益處的選擇，這與我們成為寵物健康和醫療保健市場領導者的目標非常吻合。我們將開始看到 PetMeds 和 PetCareRx 的統一帶來的其他好處。例如，我們已經開始利用我們的綜合購買力，並相信我們將能夠為客戶提供更低的單位成本。

Operationally, we have spent considerable time and focus on upgrading internal systems and controls. We completed the migration of our legacy e-mail system to a modern cutting-edge platform. This transformation unlocks new marketing capabilities, enabling us to engage with our customer base more effectively. Through targeted and personalized communication, we will be able to provide better product and service recommendations.

在運營方面，我們花費了大量時間並專注於升級內部系統和控制。我們完成了舊電子郵件系統到現代尖端平台的遷移。這一轉變釋放了新的營銷能力，使我們能夠更有效地與客戶群互動。通過有針對性和個性化的溝通，我們將能夠提供更好的產品和服務推薦。

We believe that with the combined purchasing power, coupled with our meticulous identification and execution of cost synergies, we are well on track to deliver on our objective of PetCareRx becoming adjusted EBITDA accretive before the end of our fiscal year. This achievement underscores our commitment to creating value for our shareholders and maximizing the potential of this strategic acquisition.

我們相信，憑藉合併後的購買力，加上我們對成本協同效應的細緻識別和執行，我們有望實現 PetCareRx 在本財年結束前實現調整後 EBITDA 增值的目標。這一成就凸顯了我們致力於為股東創造價值並最大限度地發揮此次戰略收購潛力的承諾。

Next slide, please. As we mentioned on previous earnings calls over the last year, PetMeds has been in a rebuilding mode. The strategic transformation that we charted encompassing both organic and inorganic investments, is aimed at positioning PetMeds for long-term success, enhancing our operational capabilities, expanding our product portfolio and ultimately creating sustainable value for our shareholders.

請下一張幻燈片。正如我們在去年的財報電話會議上提到的，PetMeds 一直處於重建模式。我們制定的戰略轉型涵蓋有機和無機投資，旨在使 PetMeds 取得長期成功，增強我們的運營能力，擴大我們的產品組合，並最終為我們的股東創造可持續價值。

Today's call marks a slightly different tone from previous calls. PetMeds has undergone rapid changes over the past 2 years, and we firmly believe in the path we have chosen as a premium specialty retailer brand. We have been deliberate in the execution of our strategy as well as in the consistency and transparency of our external communication to ensure that our stakeholders are well informed about the essential criteria that serve as performance indicators for our transformation into a growth-oriented business.

今天的電話會議基調與之前的電話會議略有不同。 PetMeds 在過去的兩年裡經歷了快速的變化，我們堅信我們作為優質專業零售商品牌所選擇的道路。我們在戰略執行以及外部溝通的一致性和透明度方面一直深思熟慮，以確保我們的利益相關者充分了解作為我們轉型為增長型企業的績效指標的基本標準。

These indicators are year-over-year increases in new customers, continued gains in recurring revenue, more product and service diversification beyond our 4 medication expertise, meeting and exceeding market growth rates for the entire PetMeds business. These performance indicators serve to guide us as we navigate our journey towards becoming a thriving growth-focused company.

這些指標包括新客戶的同比增長、經常性收入的持續增長、超越我們 4 種藥物專業知識的更多產品和服務多樣化、滿足並超過整個 PetMeds 業務的市場增長率。這些績效指標可以指導我們走向成為一家蓬勃發展、注重增長的公司的旅程。

I am thrilled to share the exciting news that this quarter signifies a reacceleration in our company's trajectory, including early signs of promise in our ongoing business transformation. It is important to note that a business transformation is an ever-evolving process, particularly in the early stages. However, today, I am delighted to announce that we have successfully positioned ourselves as a growth business, meeting the 4 key performance indicators as previously outlined.

我很高興與大家分享這個令人興奮的消息，即本季度標誌著我們公司發展軌蹟的重新加速，包括我們正在進行的業務轉型的早期跡象。值得注意的是，業務轉型是一個不斷發展的過程，尤其是在早期階段。然而，今天，我很高興地宣布，我們已成功將自己定位為增長型企業，達到了之前概述的 4 項關鍵績效指標。

I would now like to summarize some of the key business and financial highlights for the quarter. As a reminder, this includes the full quarter of results for PetCareRx. Number one, we had record-setting year-over-year revenue growth. Number two, both new and returning customers increased year-over-year. New customers grew consecutively for 3 quarters in a row, which is a turnaround from a 2.5-year decline. Number three, reorder sales are now $68 million or 87% of our business. which represents growth of 7% year-over-year. Number four, we are launching our new insurance product in the market in conjunction with our insurance partner, Pumpkin Insurance next month.

現在我想總結一下本季度的一些關鍵業務和財務亮點。提醒一下，這包括 PetCareRx 整個季度的業績。第一，我們的收入同比增長創紀錄。第二，新客戶和回頭客均逐年增加。新客戶連續3個季度增長，扭轉了2.5年下降的局面。第三，再訂購銷售額現在為 6800 萬美元，占我們業務的 87%。同比增長 7%。第四，我們將於下個月與我們的保險合作夥伴 Pumpkin Insurance 一起在市場上推出新的保險產品。

While our CFO, Christine Chambers, will delve into a more comprehensive analysis of our quarterly financial performance later in the presentation, I would like to provide a glimpse of some notable financial highlights. For the quarter ending June 30, 2023, sales were $78 million compared to sales of $70 million in the prior year, an 11% increase year-over-year. As a result of the combined sales of our recent acquisition of PetCareRx as well as a more stabilized core PetMeds business.

雖然我們的首席財務官 Christine Chambers 將在稍後的演示中對我們的季度財務業績進行更全面的分析，但我想簡要介紹一些值得注意的財務亮點。截至 2023 年 6 月 30 日的季度，銷售額為 7800 萬美元，而上一年的銷售額為 7000 萬美元，同比增長 11%。這是我們最近收購 PetCareRx 的合併銷售以及更加穩定的核心 PetMeds 業務的結果。

Furthermore, I am pleased to share positive results pertaining to our new customer base. In the quarter, we achieved approximately 86,000 new customers representing a 25% year-over-year increase. This marks the third consecutive quarter of net new customer growth, decisively breaking the trend of declining net new customers since Q1 of 2021, and propelling us into our next chapter of growth. This notable achievement is attributed to the continued growth of PetMed's new customer acquisition efforts, combined with increased reach from the PetCareRx acquisition.

此外，我很高興與大家分享有關我們新客戶群的積極成果。本季度，我們獲得了約 86,000 名新客戶，同比增長 25%。這標誌著淨新客戶連續第三個季度增長，決定性地打破了自2021年第一季度以來淨新客戶下降的趨勢，並推動我們進入下一個增長篇章。這一顯著成就歸功於 PetMed 新客戶獲取工作的持續增長，以及收購 PetCareRx 擴大的覆蓋範圍。

New customer acquisition efficiency metrics remain in line with our expectations. Customer lifetime value to customer acquisition cost for the quarter stood at 2.0, affirming our commitment to optimizing our marketing investments. We are delighted to report sustained improvements in the subscription part of our business. Our AutoShip & Save program has continued to expand. During the first fiscal quarter, 49% of our revenue was derived from recurring sources to our AutoShip subscription and PetPlus membership programs, marking a significant increase from 34% for the same period last year.

新客戶獲取效率指標仍然符合我們的預期。本季度客戶終身價值與客戶獲取成本之比為 2.0，證實了我們優化營銷投資的承諾。我們很高興地報告我們業務的訂閱部分持續改進。我們的“自動發貨和節省”計劃不斷擴大。在第一財季，我們 49% 的收入來自 AutoShip 訂閱和 PetPlus 會員計劃的經常性來源，比去年同期的 34% 顯著增長。

Lastly, I want to share our excitement regarding the emerging opportunity in pet insurance. As one of the fastest-growing nonmedical pet services, pet insurance is projected to continue its upward trajectory. According to the North American Pet Health Insurance Association, a mere 4.4 million pets insured in 2021, which accounts for less than 5% of the total pet population. Recognizing this as a significant untapped opportunity, we envision that the introduction of our insurance product in partnership with Pumpkin Insurance will be viewed as a valuable offering by our expansive community of over 2 million pet parents. We plan to launch this new insurance offering within the next quarter, further solidifying our commitment to comprehensive pet care solutions.

最後，我想分享一下我們對寵物保險領域新興機遇的興奮之情。作為增長最快的非醫療寵物服務之一，寵物保險預計將繼續呈上升趨勢。根據北美寵物健康保險協會的數據，2021年只有440萬隻寵物受保，佔寵物總數的不到5%。我們認識到這是一個尚未開發的重要機會，我們預計，與 Pumpkin Insurance 合作推出的保險產品將被我們超過 200 萬寵物父母的龐大社區視為一項有價值的產品。我們計劃在下個季度推出這項新的保險產品，進一步鞏固我們對全面寵物護理解決方案的承諾。

Turning to Slide 6. Over the past several quarters, we have extensively discussed our strategy and future direction. PetMeds is undergoing a transformation from being a prominent pet medication retailer to positioning itself as the foremost authority in pet health care, a market leader in expertise on pet well-being. Our goal is to become every pet parents go-to destination for holistic health and wellness from nose to tail. To recap, our pet health care strategy revolves around 4 key pillars: medication, care, nutrition and wellness. PetMeds has long established itself as one of the largest and most trusted pet pharmacies in the United States.

轉向幻燈片 6。在過去的幾個季度中，我們廣泛討論了我們的戰略和未來方向。 PetMeds 正在經歷從一家著名寵物藥品零售商的轉型，將自己定位為寵物醫療保健領域的最權威、寵物福祉專業知識的市場領導者。我們的目標是成為每個寵物父母從鼻子到尾巴的整體健康和保健的首選目的地。回顧一下，我們的寵物保健策略圍繞 4 個關鍵支柱：藥物、護理、營養和健康。 PetMeds 長期以來已成為美國最大、最值得信賴的寵物藥店之一。

Our logistical expertise enables us to facilitate and authorize millions of prescription orders annually, bridging the gap between veterinarians and pet parents. The acquisition of PetCareRx represents a significant growth opportunity for PetMed Express, as we are now actively working on introducing premium and prescription food to our extensive base of over 2 million pet parents.

我們的物流專業知識使我們能夠每年促進和授權數百萬份處方訂單，從而縮小獸醫和寵物父母之間的差距。收購 PetCareRx 對 PetMed Express 來說是一個重大的增長機會，因為我們現在正積極致力於向超過 200 萬寵物父母的廣泛群體推出優質處方食品。

In terms of care, we recognize the potential of the nascent pet telemedicine market as a substantial opportunity as regulations continue to evolve. We have closely observed the shifting regulatory landscape with more and more states embracing pet telemedicine. Today, we offer our full telemedicine product in over 25 states. Starting in September, we will offer telemedicine in Arizona with Florida, Colorado and California expected in Q4. These new geographical areas present untapped markets encompassing a combined population of nearly 115 million people with 75% of them being pet owners in need of care for their pets.

在護理方面，我們認識到隨著法規的不斷發展，新興寵物遠程醫療市場的潛力是一個巨大的機遇。我們密切觀察了監管環境的變化，越來越多的州接受寵物遠程醫療。如今，我們在超過 25 個州提供完整的遠程醫療產品。從 9 月開始，我們將在第四季度在亞利桑那州、佛羅里達州、科羅拉多州和加利福尼亞州提供遠程醫療服務。這些新的地理區域提供了尚未開發的市場，涵蓋總人口近 1.15 億，其中 75% 是需要照顧寵物的寵物主人。

Our partnership with Vetster is an important element of our growth strategy, as it has enabled PetMed to become the first pet retailer to offer pet telemedicine to pet parents on a larger scale. This important and strategic [bet] will continue to evolve alongside regulatory changes, consumer education and awareness.

我們與 Vetster 的合作是我們增長戰略的重要組成部分，因為它使 PetMed 成為第一家向寵物父母大規模提供寵物遠程醫療的寵物零售商。這一重要且具有戰略意義的[賭注]將隨著監管變化、消費者教育和意識的變化而繼續發展。

To further enable our pet parents towards accessing care and achieving wellness for their pets, we are excited to soon be able to offer pet insurance. Our partnership with leading insurance company, Pumpkin Insurance, which is now majority owned by JAB Holdings, will bring incremental value to our customers and will bring incremental profitability to PetMeds over time. We consider these 4 pillars: medication, care, nutrition and wellness crucial in establishing a unique preferred brand and experience for pet parents everywhere, positioning ourselves as their go-to destination.

為了進一步使我們的寵物父母能夠為他們的寵物獲得護理並實現健康，我們很高興很快能夠提供寵物保險。我們與領先的保險公司 Pumpkin Insurance（目前由 JAB Holdings 持有多數股權）合作，將為我們的客戶帶來增量價值，並隨著時間的推移為 PetMeds 帶來增量盈利能力。我們認為這四大支柱：藥物、護理、營養和健康對於為世界各地的寵物父母建立獨特的首選品牌和體驗至關重要，並將我們定位為他們的首選目的地。

We are now better positioned to offer our over 2 million pet parents more help options than ever before. We have a wider variety of premium prescription food, health food options and supplements. Pet parents can book a vet telemedicine appointment on our website and starting soon through our partnership with Pumpkin Insurance, we can soon begin offering health insurance for our furry family members. Now I'd like to hand the presentation over to Christine.

現在，我們能夠更好地為超過 200 萬寵物父母提供比以往更多的幫助選擇。我們提供種類更豐富的優質處方食品、保健食品和補充劑。寵物父母可以在我們的網站上預訂獸醫遠程醫療預約，並且通過我們與 Pumpkin Insurance 的合作，我們很快就可以開始為毛茸茸的家庭成員提供健康保險。現在我想把演講交給克里斯汀。

Thanks, Matt. I'm delighted to report our Q1 fiscal year 2024 results for the quarter ending June 30, 2023. This will be the first quarter of combined results, including the acquisition of PetCareRx compared to PetMeds only in Q1 fiscal year 2023 and the prior quarter. The PetCareRx acquisition closed on April 3, 2023, and the consolidated results reflect almost the full quarter of PetCareRx performance. First quarter sales were $78.2 million compared to sales of $70.2 million in the same period last year, growth of 11.5%. The growth year-over-year was due to incremental sales from the combination of PetCareRx as well as growth in PetMed's new customer sales with a slight offset in PetMed's reorder sales, which is continuing to stabilize.

謝謝，馬特。我很高興地報告我們截至2023 年6 月30 日的季度的2024 年第一季度業績。這將是第一季度的綜合業績，其中包括與PetCareRx 的收購相比，僅在2023 年第一季度和上一季度收購了PetMeds。 PetCareRx 收購於 2023 年 4 月 3 日完成，合併業績幾乎反映了 PetCareRx 整個季度的業績。第一季度銷售額為 7820 萬美元，比去年同期的銷售額 7020 萬美元增長 11.5%。同比增長的原因是 PetCareRx 合併帶來的銷售額增量以及 PetMed 新客戶銷售額的增長，但 PetMed 的再訂單銷售額略有抵消，該銷售額正在持續穩定。

As Matt previously mentioned, we continued our trend of net new customer growth year-over-year. We welcomed approximately 86,000 new pet parents this quarter compared to 69,000 in the prior year. This represents new customer growth of 25% year-over-year. In addition, reorder sales of $68 million for the quarter, increased 7% compared to the reorder sales of $63.3 million in the same period last year.

正如馬特之前提到的，我們繼續保持新客戶淨增長的趨勢。本季度我們迎來了約 86,000 名新寵物父母，而上一年為 69,000 名。這意味著新客戶同比增長 25%。此外，本季度再訂購銷售額為 6800 萬美元，較去年同期的再訂購銷售額 6330 萬美元增長 7%。

With the acquisition of PetCare, we also added $2.4 million of revenue associated with our PetCareRx membership programs, which provide bulk wholesale offerings, a diverse product range and an emphasis on value and savings for its customers. We have continued to grow our recurring revenue, including AutoShip & Save sales and PetCareRx membership sales as a percentage of total sales. This drives greater engagement and strengthens our recurring sales base. As Matt mentioned, recurring sales as a percentage of total sales was 49% in the quarter, up 5% sequentially and up from 34% compared to the same period last year.

通過收購 PetCare，我們還增加了 240 萬美元與 PetCareRx 會員計劃相關的收入，該計劃提供批量批發產品、多樣化的產品系列，並強調為客戶提供價值和節省費用。我們的經常性收入持續增長，包括 AutoShip & Save 銷售額和 PetCareRx 會員銷售額佔總銷售額的百分比。這推動了更大的參與度並加強了我們的經常性銷售基礎。正如 Matt 提到的，本季度經常性銷售額佔總銷售額的百分比為 49%，比上一季度增長 5%，比去年同期的 34% 有所上升。

Gross profit for the quarter as a percentage of sales was 28.8% compared to 28.4% in the same quarter last year and 27.9% in the prior quarter. G&A increased $6.4 million year-over-year, in part due to the combination of PetCareRx and an increase in payroll expenses from new hires made in fiscal year 2023 as well as $1.1 million in acquisition costs. Since the acquisition, PetCareRx has benefited from improved supplier terms and direct manufacturing relationships, driving synergies and improvements to gross margin. In addition, we are combining operating procedures and teams that naturally drive G&A cost synergies and more efficient processes.

本季度毛利潤佔銷售額的百分比為 28.8%，去年同期為 28.4%，上一季度為 27.9%。 G&A 同比增加 640 萬美元，部分原因是 PetCareRx 的合併以及 2023 財年新員工工資支出的增加以及 110 萬美元的收購成本。自收購以來，PetCareRx 受益於改善的供應商條款和直接製造關係，推動了協同效應並提高了毛利率。此外，我們正在整合運營程序和團隊，從而自然地推動 G&A 成本協同效應和更高效的流程。

Net loss for the first quarter was $900,000 or $0.04 per diluted share compared to net income of $2.8 million or $0.14 per diluted share for the same period last year. Excluding the acquisition-related costs, net income would have been $200,000 or $0.01 per diluted share. Adjusted EBITDA for the quarter was $3.3 million compared to $6.3 million in the same quarter last year. Increased gross profit and other income of $2.9 million was offset by $5 million of higher adjusted EBITDA expenses, excluding nonoperating items, and $900,000 higher advertising expenses.

第一季度淨虧損為 90 萬美元，即稀釋後每股 0.04 美元，而去年同期淨利潤為 280 萬美元，即稀釋後每股 0.14 美元。排除收購相關成本，淨利潤將為 200,000 美元，即稀釋後每股收益 0.01 美元。本季度調整後 EBITDA 為 330 萬美元，去年同期為 630 萬美元。毛利潤和其他收入增加 290 萬美元，但被調整後 EBITDA 費用（不包括非經營項目）增加 500 萬美元以及廣告費用增加 90 萬美元所抵消。

Turning to Slide 9. We ended the quarter with $61.5 million of cash on our balance sheet and no debt. This takes into consideration that on April 3, 2023, we paid $63 million in cash for PetCareRx. Over the long run, management remains committed to driving total shareholder return. We have declared a $0.30 cash dividend in June this year at the same level as prior quarters. As always, we will continue to balance the need for capital to fuel growth opportunities with the payment of dividends. Our business continues to perform well with a more stable PetMeds core business that continues to build recurring revenue through a growing customer base, combined with our recent acquisition of PetCareRx.

轉向幻燈片 9。本季度末，我們的資產負債表上有 6150 萬美元現金，沒有債務。這考慮到 2023 年 4 月 3 日，我們為 PetCareRx 支付了 6300 萬美元現金。從長遠來看，管理層仍致力於推動股東總回報。今年 6 月，我們宣布派發 0.30 美元的現金股息，與前幾個季度的水平相同。一如既往，我們將繼續平衡推動增長機會的資本需求與支付股息。我們的業務繼續表現良好，PetMeds 核心業務更加穩定，通過不斷增長的客戶群以及我們最近收購的 PetCareRx 繼續創造經常性收入。

For the balance of the year, we will continue to focus efforts on setting up the expanded product catalog, which will drive future organic growth. Operating synergies continue to provide us with opportunities to improve margins. And in the longer term, we believe in value creation from adding differentiated services with our Vetster and Pumpkin partnerships with a more immediate upside to our PetMeds business through expanding our wallet share through selling food on a broader assortment of consumables. I will now turn the call back over to Matt for some concluding remarks prior to Q&A.

在今年剩下的時間裡，我們將繼續集中精力建立擴大的產品目錄，這將推動未來的有機增長。經營協同效應繼續為我們提供提高利潤率的機會。從長遠來看，我們相信通過與Vetster 和Pumpkin 合作夥伴關係增加差異化服務可以創造價值，並通過銷售更廣泛的消費品種類來擴大我們的錢包份額，從而為我們的PetMeds 業務帶來更直接的好處。我現在將把電話轉回給馬特，讓他在問答之前做一些總結性發言。

Thank you, Christine. The upcoming fiscal year holds significance for PetMeds as we transition into a growth-focused business. Our goal is to deliver healthy top line revenue growth while maintaining relative stability in fixed costs. We anticipate achieving operating leverage as we scale our revenue. As I have previously emphasized, investors should expect our management team to remain intensely focused on integrating our recent investments and executing on our strategic vision. We are confident that we've assembled the necessary components to deliver sustainable long-term growth and profitability.

謝謝你，克里斯汀。隨著我們向以增長為重點的業務轉型，即將到來的財年對 PetMeds 來說具有重要意義。我們的目標是實現健康的營收增長，同時保持固定成本的相對穩定。我們預計隨著收入規模的擴大，將實現運營槓桿。正如我之前強調的那樣，投資者應該期望我們的管理團隊繼續專注於整合我們最近的投資並執行我們的戰略願景。我們相信，我們已經組裝了必要的組件來實現可持續的長期增長和盈利能力。

At PetMed, we are highly optimistic about our growth strategy and future performance. We are enthusiastic about the strategic direction we are pursuing as a premium specialty retailer brand. We firmly believe that the expansive pet market offers ample opportunities for us to navigate and thrive by providing distinctive solutions for pet parents. As we have consistently emphasized, our aim is to become the trusted pet health expert for pet parents. Over the past year, we have shared our growth strategy with you, and we have made substantial progress in building a resilient, profitable and continually growing pet health company. With that, we conclude our prepared remarks. Operator, we are now ready to address any questions you may have.

在 PetMed，我們對我們的增長戰略和未來業績非常樂觀。我們對作為優質專業零售商品牌所追求的戰略方向充滿熱情。我們堅信，廣闊的寵物市場為我們提供了充足的機會，通過為寵物父母提供獨特的解決方案來導航和發展。正如我們一直強調的那樣，我們的目標是成為寵物父母值得信賴的寵物健康專家。在過去的一年裡，我們與您分享了我們的增長戰略，我們在打造一家有彈性、盈利且持續發展的寵物健康公司方面取得了實質性進展。至此，我們結束了準備好的發言。接線員，我們現在已準備好解決您可能遇到的任何問題。

(Operator Instructions). Our first question comes from the line of Ryan Meyers with Lake Street Capital Markets.

（操作員說明）。我們的第一個問題來自 Lake Street Capital Markets 的 Ryan Meyers。

First one for me. I'm just curious, if we strip out the PetCareRx business, what did the legacy business or revenue for the legacy business looked like during the quarter? And how have you seen kind of further stabilization there?

對我來說第一個。我只是好奇，如果我們剔除 PetCareRx 業務，本季度的遺留業務或遺留業務的收入會是什麼樣子？您如何看待那裡的進一步穩定？

Ryan, this is Matt. I'll take that -- that answer, and then Christine, feel free to jump on if I don't cover it in the detail that's required. Ryan, just to step back from the question, we've really made, as you know, an effort to consolidate the PetCareRx and PetMed's financials, primarily for 2 reasons. One is we're running the PetCareRx business as an integrated part of the business from an operating perspective, but also PetCareRx is really a mini version of PetMed, has the same unit economics. We've talked about similar gross margin. So that's how we kind of think about it.

瑞安，這是馬特。我會接受這個答案，然後克里斯汀，如果我沒有詳細說明所需的細節，請隨時繼續。 Ryan，退一步來說，正如您所知，我們確實做出了努力來整合 PetCareRx 和 PetMed 的財務狀況，主要有兩個原因。一是從運營角度來看，我們將 PetCareRx 業務作為業務的一個組成部分來運營，而且 PetCareRx 實際上是 PetMed 的迷你版，具有相同的單位經濟效益。我們已經討論過類似的毛利率。這就是我們的想法。

And then two, we think about PetCareRx from an acquisition thesis perspective is really delivering on an unlock for catalog expansion. As you know, PetMeds has a very high concentration in medication sales and very little in everything else, including food and other largely popular consumables. And so we think about PetCareRx as a natural extension of the business. That said, we have talked about PetCareRx as being the majority step-up of improvement year-over-year in the business. And then we called out net new customer growth for PetMeds and PetCareRx, but we can say that PetMeds did experience on a stand-alone basis year-over-year growth.

第二，我們從收購論文的角度來看 PetCareRx 確實為目錄擴展​​提供了解鎖。如您所知，PetMeds 的藥品銷售集中度非常高，而其他所有產品（包括食品和其他廣受歡迎的消耗品）的銷售卻很少。因此，我們認為 PetCareRx 是該業務的自然延伸。也就是說，我們已經將 PetCareRx 視為該業務同比改進的主要進步。然後我們指出了 PetMeds 和 PetCareRx 的淨新客戶增長，但我們可以說 PetMeds 確實經歷了獨立的同比增長。

And kind of the heart of your question is the stabilization of the returning base, Ryan. We're feeling that the returning base is much more stabilized than it has been, especially since when I started a couple of years ago. And that's kind of how we think about the business from a consolidated perspective. And really, our eye is towards selling more products to the same customer utilizing that PetCareRx catalog and Christine, I don't know if there's anything else you'd like to add to that?

你問題的核心是返回基地的穩定，瑞安。我們感覺回歸基地比以前更加穩定，尤其是自從我幾年前開始以來。這就是我們從綜合角度思考業務的方式。事實上，我們的目標是利用 PetCareRx 目錄向同一客戶銷售更多產品，Christine，我不知道您是否還有其他要補充的內容？

I think you captured it, Matt, on the top line. And as you know, Ryan, we are bringing the 2 companies together, like Matt mentioned, in a way that we're looking to drive cost synergies over time as well. So that's just something to consider as we bring those 2 companies together that really operating as 1 entity.

馬特，我想你在最上面抓住了這一點。正如你所知，瑞安，我們正在將兩家公司合併在一起，就像馬特提到的那樣，我們也希望隨著時間的推移推動成本協同效應。因此，當我們將這兩家公司真正作為一個實體運營時，這只是需要考慮的事情。

Got it. That's helpful. And then, obviously, I know it's only been a quarter with the PetCareRx acquisition. But is there any way to quantify sort of the cross-selling revenue that you guys have been able to see or how you kind of expect that to play out over the next couple of quarters?

知道了。這很有幫助。然後，顯然，我知道收購 PetCareRx 才過去了一個季度。但是，有沒有什麼方法可以量化你們已經看到的交叉銷售收入，或者你們預計未來幾個季度的交叉銷售收入將如何發揮？

Yes. So I think, Ryan, in terms of the -- as Matt said, we're really thinking about the levers that we have between the 2 businesses and operating them as you know, we're very focused on driving the expanded catalog onto our PetMeds customers, and I think we'll see the growth associated with that over time. Matt, do you want to add anything?

是的。所以我認為，瑞安，正如馬特所說，我們確實在考慮這兩家企業之間的槓桿，並如你所知運營它們，我們非常專注於將擴展的目錄推向我們的業務。 PetMeds 客戶，我認為隨著時間的推移，我們會看到與之相關的增長。馬特，你想補充什麼嗎？

Yes. I think the natural extension of that will be larger LTV for our customer base. In previous earnings calls, we get a lot of questions around average order value. you actually don't think average order value would be the best metric to follow because when we do our job successfully with getting more repeated purchases outside of the [irregular] prescription refill cycle that we're on, AOV could actually vary quite a bit.

是的。我認為這的自然延伸將為我們的客戶群帶來更大的生命週期價值。在之前的財報電話會議中，我們收到了很多有關平均訂單價值的問題。實際上，您並不認為平均訂單價值是值得遵循的最佳指標，因為當我們成功完成工作並在我們正在進行的[不規則]處方補充週期之外獲得更多重複購買時，AOV 實際上可能會有很大差異。

And again, the measure for us long term will be LTV growth over time. The last thing I would say is we just started successfully integrating large swaths of the PetCareRx catalog, like we said on the call, including the Purina line of products, which we didn't have access to up until just a couple of months ago. and it just recently went up on our site several weeks ago. So it's early days, but we're already seeing traction on our ability to cross-sell and upsell different products. So stay tuned, but we think that the best measure will be LTV.

再說一次，我們的長期衡量標準將是 LTV 隨著時間的推移而增長。我要說的最後一件事是，我們剛剛開始成功整合大量 PetCareRx 目錄，就像我們在電話中所說的那樣，包括 Purina 系列產品，直到幾個月前我們才訪問到這些產品。幾週前它剛剛出現在我們的網站上。所以現在還處於早期階段，但我們已經看到了交叉銷售和追加銷售不同產品的能力的吸引力。所以請繼續關注，但我們認為最好的衡量標準是 LTV。

And our next question comes from the line of Anthony Lebiedzinski with Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。

So just first, as a follow-up just to clarify. So on Slide #5, you guys talked about reorder growth of 7% year-over-year. But then I think Christine, when you got on, you said that there was a slight offset in the reorder of sales. So I'm just trying to put the two together. I don't know if you were talking about the core business or the legacy business being down? Just wanted to get more clarity on that, please?

首先，作為後續的澄清。在第 5 張幻燈片上，你們談到了再訂購量同比增長 7%。但後來我想克里斯汀，當你上台時，你說銷售的重新排序有輕微的抵消。所以我只是想把兩者結合起來。我不知道你說的是核心業務還是遺留業務的下滑？只是想更清楚地了解這一點，好嗎？

Yes. Anthony, thanks for the question. So we did talk about on the PetMeds new customer base growing. And obviously, the majority of the growth from the quarter around the combined PCRX acquisition. What I did also mention is that the PetMeds returning base. And again, we are looking at this very much on a combined basis. But specific to the PetMeds returning base, we did see a slight decline, and that's the base that we continue to focus on, and we see as starting to -- that decline starting to stabilize. So it was specific to that business. But like I said and Matt mentioned earlier, we are looking at the results more on a consolidated basis, and that's where you're seeing that 7% reorder sales growth.

是的。安東尼，謝謝你的提問。所以我們確實談到了 PetMeds 新客戶群的增長。顯然，本季度的大部分增長來自 PCRX 的合併收購。我還提到了 PetMeds 返回基地。再說一遍，我們正在綜合考慮這個問題。但具體到 PetMeds 返回的基數，我們確實看到了輕微的下降，這是我們繼續關注的基數，我們認為下降開始趨於穩定。所以它是針對該業務的。但正如我和馬特之前提到的，我們更多地在綜合基礎上查看結果，這就是您看到 7% 的再訂購銷售增長的地方。

Okay. So are you -- so far, you're 1 month into the second fiscal quarter, have you seen signs of continued stabilization? Or can you give us an early readout as to what you're seeing so far? I mean, obviously, the summer is peak time for flea and tick medications and just wondering if you could comment on what you're seeing thus far into the second quarter?

好的。那麼，到目前為止，第二財季已經過去 1 個月了，您是否看到了持續穩定的跡象？或者您能否提前向我們通報您目前所看到的情況？我的意思是，顯然，夏季是跳蚤和蜱蟲藥物的高峰期，只是想知道您是否可以對第二季度到目前為止所看到的情況發表評論？

Yes. I think we see -- Anthony, we're very much looking at this on -- like I said, on a combined basis, I think the PetMeds business is the returning base. We're really excited about the expanded catalog, how that expanded catalog continues to drive additional reorder sales and then enables that [headed] space to grow over time. We're really focused on increasing that wallet share of the existing PetMeds space and other existing PetMeds returning orders and seeing that change in the trajectory over time based on that expanded catalog that we're really focused on at this stage.

是的。我認為我們看到——安東尼，我們非常關注這一點——就像我說的，綜合起來，我認為 PetMeds 業務是回歸的基礎。我們對擴展的目錄感到非常興奮，擴展的目錄如何繼續推動額外的再訂購銷售，然後使[標題]空間隨著時間的推移而增長。我們真正專注於增加現有 PetMeds 空間和其他現有 PetMeds 退貨訂單的錢包份額，並根據我們現階段真正關注的擴展目錄看到軌跡隨時間的變化。

Okay. Got you. And then in terms of the synergies, can you expand on that? And maybe -- just maybe talk a little bit more in terms of the timing? And is this mostly on gross margins? Or do you think you can achieve some operating expense synergies?

好的。明白你了。那麼就協同效應而言，您能擴展一下嗎？也許——也許只是在時間方面多談一點？這主要是毛利率嗎？或者您認為您可以實現一些運營費用協同效應嗎？

Yes, it's a good question. We very much see similar unit economics, gross margin assumptions across both businesses. I think where we'll expect to see improvement in the bottom line entity over time is the cost synergies that improve SG&A as a percentage of revenue. As we've mentioned, these businesses are very similar in that as we're bringing some of those operations together.

是的，這是一個好問題。我們在這兩個業務中看到了相似的單位經濟效益和毛利率假設。我認為隨著時間的推移，我們期望看到實體盈利的改善是成本協同效應，從而提高銷售、管理費用佔收入的百分比。正如我們所提到的，這些業務非常相似，因為我們將其中一些業務整合在一起。

And also, we see this expansion of LTV without a huge increase in CAC. And so we'll, like Matt mentioned, very much focused on that LTV to CAC ratio over time as we see the expansion of the catalog. And then separately, the SG&A improves over time based on those cost synergies across vendor relationships and efficiencies that we're driving across our operations.

而且，我們看到 LTV 的擴張並未導致 CAC 大幅增加。因此，就像馬特提到的那樣，隨著時間的推移，當我們看到目錄的擴展時，我們將非常關注 LTV 與 CAC 的比率。然後，隨著時間的推移，SG&A 會根據供應商關係之間的成本協同效應以及我們在運營中推動的效率而得到改善。

Got you. Okay. And then my last question, I know you guys declared the dividend. Just do you have any updated thoughts on how investors should think about the dividend? Or is just kind of more of the same as you talked about on your last call?

明白你了。好的。然後我的最後一個問題，我知道你們宣布了股息。您對投資者應如何看待股息有什麼最新想法嗎？或者只是與您在上次通話中談到的情況更加相同？

Yes. The dividend is always something that we think about as well. We do think there are opportunities for growth and investment. And we believe as we turn in the corner to being -- or as we are now a growth company, we have shown year-over-year growth for the first quarter. And I think as we drive momentum, over more than one quarter. There could be a scenario, whereby we see higher returns from using free cash flow for reinvestment versus paying the dividend. And so we're always looking at the balance for the need -- the capital allocation need for capital to fuel growth. So I think there'll be more to come.

是的。股息也始終是我們考慮的問題。我們確實認為存在增長和投資機會。我們相信，當我們轉入困境時——或者說我們現在是一家成長型公司時，我們第一季度的業績同比增長。我認為，隨著我們推動勢頭，超過四分之一。可能存在一種情況，即我們看到使用自由現金流進行再投資比支付股息有更高的回報。因此，我們始終關注需求的平衡——推動增長的資本配置需求。所以我認為還會有更多的事情發生。

Our question-and-answer session portion of the call has ended. I would like to now turn the call back over to Matt Hulett, the company's CEO, for his concluding remarks.

我們的電話問答環節已經結束。現在我想將電話轉回給公司首席執行官馬特·休萊特 (Matt Hulett)，讓他作總結髮言。

Thank you for joining our call today, and I'm confident that the future we envision for PetMed along with the foundation that we've been laying will meet the market opportunity in unique and innovative ways, and will lead to increased operating results and shareholder value. PetMed's brand expertise and reputation are unparalleled. We have greatly accelerated our operating road map, and we look forward to sharing our progress as we go to market with products and services that positively change the lives of our pet parents and pets. Thank you for your continued support.

感謝您今天加入我們的電話會議，我相信我們對 PetMed 的未來展望以及我們一直奠定的基礎將以獨特和創新的方式抓住市場機遇，並將帶來經營業績和股東的增加價值。 PetMed 的品牌專業知識和聲譽是無與倫比的。我們大大加快了我們的運營路線圖，我們期待著在我們的產品和服務進入市場時分享我們的進展，這些產品和服務將積極改變我們寵物父母和寵物的生活。感謝您一如既往的支持。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。