Petmed Express Inc (PETS) 2023 Q4 法說會逐字稿

Greetings and welcome to PetMed Express fourth-quarter financial results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.

歡迎參加 PetMed Express 第四季財務績效電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, John Mills with ICR. You may begin.

現在我很高興向您介紹主持人，ICR 的約翰·米爾斯 (John Mills)。你可以開始了。

Thank you, operator, and I'd like to welcome everybody here today to the PetMed Express fiscal-fourth-quarter-2024 earnings conference call. 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.

謝謝您，接線生，我歡迎今天在座的各位參加 PetMed Express 2024 財年第四季財報電話會議。本次電話會議中包含的某些資訊可能包括 1995 年《私人證券訴訟改革法》和 1934 年《證券交易法》含義內的前瞻性聲明。經修訂，可能涉及許多風險和不確定性。

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.

這些陳述是基於我們的信念以及我們根據目前可獲得的資訊所使用的假設。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 and nothing contained in this presentation is or should be relied upon as a representation or warranty as to any future matters, including any matter in respect of the operations or business or financial condition of PetMed.

實際結果可能與預測有重大差異。無法保證任何前瞻性結果將會發生或實現，且本簡報中包含的任何內容都不能或不應該被依賴作為任何未來事項的陳述或保證，包括與營運或業務有關的任何事項或PetMed 的財務狀況。

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've identified various risk factors associated with our operations in our most recent annual report and other filings with the Securities and Exchange Commission.

PetMeds 不承擔根據後續事件公開更新這些前瞻性聲明的義務，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營運相關的各種風險因素。

Now, let me turn the call over to our CEO and President, Sandra Campos. Sandra?

現在，讓我將電話轉給我們的執行長兼總裁 Sandra Campos。桑德拉？

Thanks, John, and thank you to everyone for joining our conference call today. It is a true pleasure to speak with all of you for the first time and let me just start by saying how incredibly honored I am to lead this company at such a pivotal point.

謝謝約翰，也謝謝大家今天參加我們的電話會議。第一次與大家交談我感到非常高興，首先我要說的是，在如此關鍵的時刻能夠領導這家公司，我感到非常榮幸。

PETS which includes PetMeds and PetCareRx is very much at the intersection of my personal and professional passion. That, along with the ability to transform a business within a growing sector is what ultimately attracted me to join the Board as an independent director just over a year ago. I personally have eight rescue horses, two rescue dogs and one very talkative senior cat.

PETS 包括 PetMeds 和 PetCareRx，這在很大程度上是我個人和職業熱情的交匯點。正是這一點，加上在不斷增長的行業內實現業務轉型的能力，最終吸引我在一年前以獨立董事的身份加入董事會。我個人有八匹救援馬、兩隻救援犬和一隻非常健談的高級貓。

I intimately understand the profound bond that exists between pets and their families and the importance of working with trusted veterinarians who provide the valuable patient care as well as the loyalty one has for a reputable retail provider that takes care of all of your animals' needs in an efficient, timely and professional manner.

我非常了解寵物與其家人之間存在的深厚聯繫，以及與值得信賴的獸醫合作的重要性，他們提供寶貴的患者護理，以及對信譽良好的零售提供者的忠誠度，照顧您的所有動物的需求。

Throughout my retail and CPG career, I have consistently prioritized the needs of consumers and strive to establish disruptive, vibrant and enduring brands that fulfills our promises of quality and value to their communities.

在我的零售和消費品職業生涯中，我始終將消費者的需求放在首位，並努力建立顛覆性、充滿活力和持久的品牌，履行我們對社區的品質和價值承諾。

High-scale startups, led entrepreneurial enterprises, billion-dollar brand portfolios and have managed businesses that are global in scope and I have an extensive background in end-to-end supply chain as well.

大型新創公司、領先的創業企業、價值數十億美元的品牌組合，並管理過全球性的企業，我在端到端供應鏈方面也擁有廣泛的背景。

In this new role, I have the ability to bring my knowledge and experience to PETS as we refocus our teams on being a customer-centric, mission-based company whose primary goal is to empower pet families so that they can provide the best possible care for their dogs, cats and horses and help them in order to leave long and healthy lives. The market for pet medications, foods and health products and services is continuing to grow and servicing that market is what we've done really well since 1996.

在這個新角色中，我有能力將我的知識和經驗帶入PETS，因為我們的團隊重新聚焦於成為一家以客戶為中心、以使命為基礎的公司，其主要目標是為寵物家庭提供支持，以便他們能夠提供最好的護理為他們的狗、貓和馬提供幫助，讓他們能夠健康長壽。寵物藥品、食品以及保健產品和服務的市場正在持續成長，自 1996 年以來我們一直在為該市場提供服務。

According to the American Pet Products Association, pet spending in the United States continues to increase and has increased by 7% to $147 billion in 2023. Veterinary care and prescription medications represented about 26% of the total spend for $38.3 billion. That leads us to pets where we have an incredible opportunity ahead for growth in a sector that continues to expand.

根據美國寵物用品協會統計，美國寵物支出持續成長，2023年成長7%，達到1,470億美元。獸醫護理和處方藥約佔 383 億美元總支出的 26%。這將我們引向寵物，在這個持續擴張的行業中，我們面臨著難以置信的成長機會。

As an enterprise, we have some very positive key results. We filled almost 500,000 much needed Rx prescriptions and Rx foods in the past 18 months. We continue to add new customers each year, 302,000 in fiscal 2024, 274,000 new customers in fiscal 2023 or a 10% year-over-year increase.

作為一家企業，我們取得了一些非常積極的關鍵成果。在過去 18 個月裡，我們配藥了近 50 萬份急需的處方藥和處方食品。我們每年持續增加新客戶，2024 財年新增客戶 302,000 名，2023 財年新增客戶 274,000 名，較去年同期成長 10%。

Our average order value is healthy, and had a slight year-over-year increase to $94 for fiscal 2024 from $93 for fiscal 2023. While I've only been at the helm of this company for four weeks, I would like to share my view on the future for PETS as well as some short-term tactical and strategic objectives for our business.

我們的平均訂單價值保持健康，年比略有增長，從 2023 財年的 93 美元增至 2024 財年的 94 美元。雖然我執掌這家公司才四個星期，但我想分享我對 PETS 未來的看法以及我們業務的一些短期戰術和策略目標。

First, consolidation of our brands. We believe that our primary brands namely PetMeds and PetCareRx are known as the incredible experts among pet owners and are synonymous with pet health and well-being.

首先，鞏固我們的品牌。我們相信，我們的主要品牌 PetMeds 和 PetCareRx 被寵物主人稱為令人難以置信的專家，並且是寵物健康和福祉的代名詞。

The consolidation of our brands into a single united company is driven by our commitment to streamline operations, lower our overall cost structure and increase the value proposition by enhancing efficiencies and providing a more cohesive customer experience. By bringing together brands that have the same mission and product assortment, we can leverage our combined strength, reduce redundancies and offer a unified stronger presence in the market.

我們致力於簡化營運、降低整體成本結構並透過提高效率和提供更具凝聚力的客戶體驗來增加價值主張，從而推動我們的品牌整合為聯合公司。透過將具有相同使命和產品種類的品牌聚集在一起，我們可以利用我們的綜合實力，減少裁員，並在市場上提供更強大的統一影響力。

In the short term, our focus will be on improving fundamental processes, reducing operating expenses while enhancing some of our core offerings, such as our tiered membership model and our employer benefits partnerships. We still characterize this as a work in process as we continue enhancing the program with additional partnerships that help families provide preventive care during all life stages of their pets.

短期內，我們的重點將是改善基本流程、減少營運費用，同時增強我們的一些核心產品，例如我們的分層會員模式和雇主福利合作夥伴關係。我們仍然將其視為一項正在進行的工作，因為我們將繼續與更多合作夥伴加強該計劃，以幫助家庭在寵物的所有生命階段提供預防性護理。

Secondly, continue focusing on cash flow generation while enhancing key partnerships. The company entered fiscal 2025 with a healthy liquidity position and we'll continue to monitor and manage cash flow through the consolidation of our two brands.

其次，繼續關注現金流生成，同時加強關鍵合作關係。該公司在進入 2025 財年時擁有健康的流動性狀況，我們將繼續透過整合兩個品牌來監控和管理現金流。

Actions to preserve liquidity and maximize cash flows during fiscal 2025 will include, but will not be limited to the following. Deepening our relationship with key suppliers to optimize our supply chain and improve margins, managing future inventory through properly forecasting supply with expected demand, ensuring that customers can find the products when they need them, reducing expenses to better align operating costs with sales through elimination of duplicative resources including agency and vendor consolidation and focusing on operational efficiency and reducing order processing time at our fulfillment centers, pharmacy and call centers through tech enablement and automation.

2025 財年維持流動性和最大化現金流的行動將包括但不限於以下內容。深化與主要供應商的關係，以優化我們的供應鏈並提高利潤率，透過正確預測供應和預期需求來管理未來庫存，確保客戶能夠在需要時找到產品，透過消除重複資源，包括代理商和供應商整合，並透過技術支援和自動化，專注於營運效率並減少我們的履行中心、藥房和呼叫中心的訂單處理時間。

Third, customer retention, loyalty and frequency of visits. At the heart of our business are our loyal customers who rely on pets for their dog, cat and horses regular wellness needs. We have initiated the process of advancing our customized technology that supports our AutoShip program from new features to seamless integration and facilitating the shopping experience, this is a high priority that drives higher customer lifetime value and repeat purchases.

第三，客戶保留率、忠誠度和造訪頻率。我們業務的核心是我們的忠實客戶，他們依靠寵物來滿足他們的狗、貓和馬的日常健康需求。我們已經啟動了推進客製化技術的進程，以支援我們的自動發貨計劃，從新功能到無縫整合以及促進購物體驗，這是推動更高客戶終身價值和重複購買的重中之重。

We have just added a new Chief Digital and Technology Officer to lead these efforts who has tremendous background in this, Umesh Sripad. Our marketing strategy is a commitment to reinvigorate our communication initiatives and deepen our engagement with consumers.

我們剛剛任命了一位新的首席數位和技術長來領導這些工作，他在這方面擁有豐富的背景，Umesh Sripad。我們的行銷策略是致力於重振我們的溝通計劃並加深與消費者的互動。

In that, we also have just added a Chief Marketing Officer, Carla Dodds, who also has extensive reach out and e-commerce experience. We are personalizing the customer journey through advanced AI customer segmentation marketing solutions. We're bundling and cross-selling opportunities across merchandising categories.

其中，我們也剛增加了一位行銷長 Carla Dodds，她也擁有豐富的外展和電子商務經驗。我們透過先進的人工智慧客戶細分行銷解決方案個人化客戶旅程。我們正在跨商品類別捆綁和交叉銷售機會。

And since Carla joined us just a couple of weeks ago, we are driving these initiatives today and going forward. The enrichment of our digital content library with the support of our Veterinary Advisory Board is going to be something that will be connected to our easy checkout across all customer touch points. And lastly we have some new customer acquisition priorities, which will also be part of our fully integrated marketing strategy as we go forward.

自從卡拉幾週前加入我們以來，我們今天正在推動這些舉措並繼續前進。在獸醫諮詢委員會的支持下，我們數位內容庫的豐富將與我們跨所有客戶接觸點的輕鬆結帳相連接。最後，我們有一些新的客戶獲取優先事項，這也將成為我們前進過程中完全整合的行銷策略的一部分。

Number four, investment in technology, AI, automation across departments. We have begun the work of integrating PetMeds and PCRx already as one business unit across the organization. Each brand has had different systems, but we've already launched a single solution, best-in-class call center for our pet health specialists with a phone system that goes live in August for a more seamless communication with our customers and our veterinary partners.

第四，跨部門的技術、人工智慧、自動化投資。我們已經開始將 PetMeds 和 PCRx 整合為整個組織的一個業務部門。每個品牌都有不同的系統，但我們已經為我們的寵物健康專家推出了單一解決方案，即一流的呼叫中心，其電話系統將於8 月上線，以便與我們的客戶和獸醫合作夥伴進行更無縫的溝通。

We are also at work on the following. Fulfillment logic to optimize operations across the two warehouse locations, along with adding 3PL yet to be identified for reducing shipping costs and increasing speed to the customer's door steps. Second, enhancement of the pharmacy software for increased digitization and greater efficiency for our team.

我們也致力於以下工作。用於優化兩個倉庫地點營運的履行邏輯，以及添加尚未確定的 3PL，以降低運輸成本並提高到達客戶門口的速度。其次，增強藥房軟體，以提高我們團隊的數位化程度和效率。

Third, business intelligence tools revamped to be able to enable faster decision making across our various operations that drive growth and profitability. The last MarTech AI tools for end-to-end efficiency and automation throughout the customer journey. We are well positioned to thrive as the leader in this growing industry.

第三，對商業智慧工具進行了改進，以便能夠在我們的各種業務中更快地做出決策，從而推動成長和獲利。最後的 MarTech 人工智慧工具可在整個客戶旅程中實現端到端效率和自動化。我們處於有利地位，能夠成為這個不斷發展的行業的領導者。

For over two decades, we've served millions of customers who've entrusted us with the care of their beloved pet. Our competitive advantage is proven by our dedicated employees, consumers, veterinarians and vendors' confidence that PetMeds and PetCareRx are synonymous but providing the best health care products for preventative care and acute or chronic conditions for dogs, cats and horses.

二十多年來，我們為數百萬客戶提供了服務，他們委託我們照顧他們心愛的寵物。我們的競爭優勢得到了我們敬業的員工、消費者、獸醫和供應商的信心證明，他們相信PetMeds 和PetCareRx 是同義詞，但為狗、貓和馬的預防性護理和急性或慢性疾病提供最好的保健產品。

We've invested heavily in our pharmacies at each location and we have pharmacists with specialties and veterinary pharmacology and licenses in all 50 states. The pharmacies are also accredited by the NABP and LegitScript and have excelled in all federal and state regulatory requirements that include a five-point rigorous verification process from the time that we receive an order to the moment that we ship it to the customer.

我們在每個地點的藥房都投入了大量資金，我們在所有 50 個州都擁有具有專業知識和獸醫藥理學和執照的藥劑師。這些藥局也獲得了 NABP 和 LegitScript 的認可，並且在所有聯邦和州監管要求方面表現出色，其中包括從我們收到訂單到將訂單運送給客戶的那一刻的五點嚴格驗證流程。

In creating an ecosystem for holistic pet wellness with a laser focus on the pet family needs, we believe that we have the ability to expand our position as a trusted go-to leader. To best serve our customer needs, we have established strong vendor and strategic services partnership with brand names that consumers recognize and trust for any of their pet's health concerns.

在創造一個全面寵物健康生態系統並專注於寵物家庭需求的過程中，我們相信我們有能力擴大我們作為值得信賴的領導者的地位。為了最好地滿足客戶的需求，我們與消費者認可並信任的品牌建立了強大的供應商和策略服務合作夥伴關係，以解決他們寵物的任何健康問題。

That includes our prescription and over-the-counter medication, supplements, supplies, food, both Rx and non-Rx, insurance, telehealth, employer benefits, our veterinary advisory board, our educational content that we provide, private label products that provide alternatives at accessible price points for the consumer.

這包括我們的處方藥和非處方藥、補充劑、用品、食品（處方藥和非處方藥）、保險、遠距醫療、雇主福利、我們的獸醫諮詢委員會、我們提供的教育內容、提供替代品的自有品牌產品以消費者可以接受的價格點。

We are committed to connecting our customers through rich educational content from our professional and [credible] resources. Recently launched our Veterinary Advisory Board or the VAB as we are calling them, has a goal of ensuring that all of our initiatives result in improved patient care. This esteemed board consists of five expert veterinarians across the country each with decades of experience in private practice and academia, shaping the future of veterinary medicine.

我們致力於透過來自我們專業和[可靠]資源的豐富教育內容來連結我們的客戶。最近成立了我們的獸醫諮詢委員會（VAB），目標是確保我們的所有措施都能改善病患照護。這個受人尊敬的委員會由全國五位專家獸醫組成，每一位都在私人執業和學術界擁有數十年的經驗，塑造了獸醫醫學的未來。

Dr. Lori Teller, DVM, DABVP for canine and feline, CVJ, and Clinical Professor in the Department of Small Animal Clinical Sciences at Texas A&M University School of Veterinary Medicine and Biomedical Sciences serves as a liaison between the company and our veterinary advisory board.

Lori Teller 博士，DVM，犬和貓科動物 DABVP，CVJ，德克薩斯 A&M 大學獸醫和生物醫學學院小動物臨床科學系臨床教授，擔任公司和我們的獸醫顧問委員會之間的聯絡人。

Dr. Teller and her four colleagues bring a wealth of knowledge and experience, which will be instrumental in achieving our fiscal year 2025 goals and beyond. The VAB's extensive expertise will be leveraged across the organization from product to marketing and they will play a crucial role in advising the company on regulatory updates.

Teller 博士和她的四位同事帶來了豐富的知識和經驗，這將有助於實現我們 2025 財年及以後的目標。VAB 廣泛的專業知識將在整個組織（從產品到行銷）中發揮作用，他們將在為公司提供監管更新建議方面發揮至關重要的作用。

Additionally, the VAB will support the development of customer-facing educational content about the vital role that veterinarians play in protecting family health. And most importantly, the VAB will be instrumental as we improve our veterinary-facing portal through reducing friction, applying historical data and increasing usage to increase internal speed of transactions.

此外，VAB 將支援開發客戶導向的教育內容，宣傳獸醫在保護家庭健康方面發揮的重要作用。最重要的是，VAB 將有助於我們透過減少摩擦、應用歷史數據和增加使用率來提高內部交易速度來改善獸醫的入口網站。

Another key area of strength is our in-house customer support team who are pet health specialists. As a premium service to our customers, our in-health pet specialists in the call center support more than 100,000 pet parent calls each month. Pet owners have the ability to contact our agent and pharmacists for assistance with their animal well-being via telephone, chat and e-mail.

另一個關鍵的優勢領域是我們的內部客戶支援團隊，他們是寵物健康專家。作為為客戶提供的優質服務，我們呼叫中心的健康寵物專家每月支援超過 100,000 個寵物家長呼叫。寵物主人可以透過電話、聊天和電子郵件聯繫我們的經紀人和藥劑師，尋求有關動物健康的幫助。

We're in the process of consolidating our two teams and phone systems into one in order to ensure efficiency, consistency, scalability and reduce costs. The quality of our senior management team has been a key area of my initial focus for the past four weeks and I am thrilled to welcome three exceptional leaders who will play pivotal roles in driving our company's future growth and success. Carla Dodds joined us on May 28 as our new Chief Marketing Officer.

我們正在將兩個團隊和電話系統合併為一個，以確保效率、一致性、可擴展性並降低成本。在過去的四個星期裡，我們高階管理團隊的品質一直是我最初關注的關鍵領域，我很高興歡迎三位傑出的領導者，他們將在推動我們公司未來的成長和成功方面發揮關鍵作用。Carla Dodds 於 5 月 28 日加入我們，擔任新任行銷長。

Carla is a dynamic and inspiring marketer who brings a wealth of experience in consumer behavior, integrated marketing solutions creating meaningful loyalty and partnership programs and increasing brand equity from enterprise companies such as Walmart, Mastercard and Penske Media Corporation.

Carla 是一位充滿活力、鼓舞人心的行銷人員，她在消費者行為、整合行銷解決方案方面擁有豐富的經驗，可創建有意義的忠誠度和合作夥伴計劃，並提高沃爾瑪、萬事達卡和Penske Media Corporation 等企業的品牌權益。

Caroline Conegliano joined us on June 10 as Chief Operating Officer, a newly created position for PETS, underscoring the importance of having a singular focused leader in this role. Her ability to seamlessly integrate analytical insights with creative solutions, along with our proven track record in scaling businesses makes her an invaluable asset for our organization.

卡羅琳·科內利亞諾(Caroline Conegliano) 於6 月10 日加入我們，擔任首席營運官，這是PETS 新設立的職位，強調了在這一職位上擁有一位專注的領導者的重要性。她能夠將分析見解與創意解決方案無縫集成，再加上我們在擴展業務方面的良好記錄，使她成為我們組織的寶貴資產。

Umesh Sripad, our new Chief Digital and Technology Officer, also joined the company on June 10th. Umesh's expertise in driving successful technology implementations and creating seamless customer experiences from the likes of Ikea.com, Overstock.com and Bed Bath & Beyond will significantly enhance our operational efficiency and effectiveness. Additionally, we, as a Board, determined that we needed an independent director who could bring experience specific to technology, cybersecurity and digital transformation.

我們新任首席數位和技術長 Umesh Sripad 也於 6 月 10 日加入公司。Umesh 在推動 Ikea.com、Overstock.com 和 Bed Bath & Beyond 等成功技術實施和創造無縫客戶體驗方面的專業知識將顯著提高我們的營運效率和效益。此外，作為董事會，我們確定需要一位能夠帶來技術、網路安全和數位轉型方面的經驗的獨立董事。

As such, we've added technology veterans, Justin Mennen to the independent Board of Directors. Justin brings enterprise-level technology infrastructure, health care and cybersecurity expertise that will be extremely valuable as we modernize and transition our tech stack.

因此，我們將技術資深人士 Justin Mennen 納入獨立董事會。賈斯汀帶來了企業級技術基礎設施、醫療保健和網路安全專業知識，隨著我們技術堆疊的現代化和轉型，這些專業知識將非常有價值。

I have no doubt that these key additions will allow us to be positioned to execute our strategy and to accelerate the growth of pets. Our ultimate goal is to position pets as the go-to resource for pet health and wellness products, services and experiences through our ecosystem. Ensuring sustained growth and a thriving customer community requires a broad road map and a disciplined execution.

我毫不懷疑，這些關鍵的補充將使我們能夠執行我們的策略並加速寵物的成長。我們的最終目標是透過我們的生態系統將寵物定位為寵物健康和保健產品、服務和體驗的首選資源。確保持續成長和繁榮的客戶社群需要廣泛的路線圖和嚴格的執行。

First, we're going to create personalized customer experiences across channels through modern technology that incorporates AI, automation and product management that drives scale. Second, optimizing our order processing and transportation management systems to deliver with speed and efficiency from time of order to the customer door step.

首先，我們將透過現代技術，結合人工智慧、自動化和產品管理來推動規模化，跨通路打造個人化客戶體驗。其次，優化我們的訂單處理和運輸管理系統，以實現從訂單到客戶門口的快速高效交付。

Third, develop mission first purposeful marketing campaigns that are authentic and improve customer engagement while increasing brand awareness across all touch points. Fourth, leveraging data analytics to gain timely customer insights that will accelerate responsiveness to customer demand and create automation for improved daily work streams.

第三，制定使命第一、有目的的行銷活動，這些活動是真實的，可以提高客戶參與度，同時提高所有接觸點的品牌知名度。第四，利用數據分析獲得及時的客戶洞察，這將加快對客戶需求的反應速度，並創建自動化以改善日常工作流程。

Fifth, innovate product offerings, increasing high-margin private label assortments for greater accessibility and lastly curating strategic partnerships to further promote health and wellness during all life stages for dogs, cats and horses. Our company-owned and third-party operated management information system consist of a full range of retail, merchandising, human resource and financial systems.

第五，創新產品供應，增加高利潤的自有品牌品種以提高可及性，最後策劃策略合作夥伴關係，以進一步促進狗、貓和馬各個生命階段的健康和保健。我們公司自有和第三方營運的管理資訊系統由全方位的零售、銷售、人力資源和財務系統組成。

These systems include applications related to digital operations, inventory management, supply chain, planning, sourcing, merchandising, payroll, scheduling and financial reporting. We will prioritize these technology investments in order to upgrade our core systems, create efficiencies to support our digital operations, our pharmacy operations, our fulfillment center effectiveness and our customer relationship management tools with the loyalty program.

這些系統包括與數位營運、庫存管理、供應鏈、規劃、採購、銷售、工資、調度和財務報告相關的應用程式。我們將優先考慮這些技術投資，以升級我們的核心系統，提高效率，以支援我們的數位營運、藥房營運、履行中心效率以及客戶關係管理工具和忠誠度計劃。

Through our planned integrated marketing campaigns and deepening our focus on customer segmentation, we believe we have the ability to acquire new customers in the completely underpenetrated regions including Midwest, Northwest, Southwest. More than 50% of our current revenues come from the Northeast and the West Coast states as well as Southwestern Florida, where we will continue to focus our retention efforts.

透過我們計劃的整合行銷活動和加深對客戶細分的關注，我們相信我們有能力在中西部、西北、西南部等完全滲透不足的地區獲得新客戶。我們目前超過 50% 的收入來自東北部和西海岸各州以及佛羅裡達州西南部，我們將繼續專注於這些地區的保留工作。

These initiatives are part of the strategy to achieve greater levels of success while creating significant value for both customers and shareholders. Christine will provide a detailed summary of our latest results, but in general, performance in the fourth quarter reflected a continuation of the trends we've seen throughout much of fiscal '24 as net sales were up 6.6% on a year-over-year basis driven by the PetCareRx acquisition.

這些舉措是實現更大成功同時為客戶和股東創造巨大價值的策略的一部分。Christine 將提供我們最新業績的詳細摘要，但總的來說，第四季度的業績反映了我們在 24 財年大部分時間裡看到的趨勢的延續，淨銷售額同比增長 6.6%基礎是由PetCareRx收購推動的。

We continue to make progress leveraging the combined pet business with our expanded product offering by focusing on attracting new customers as well as driving recurring revenue from existing customers.

我們透過專注於吸引新客戶以及增加現有客戶的經常性收入，利用合併後的寵物業務和擴大的產品供應繼續取得進展。

As a leader, I have an unwavering commitment to transparency, whether speaking to customers, vendors, employees or shareholders. When I joined as CEO four weeks ago, I knew the overall technology stack was going to be an area of focus and opportunity for near-term improvement.

身為領導者，無論是與客戶、供應商、員工或股東交談，我都堅定不移地致力於透明度。四個星期前，當我加入執行長時，我知道整體技術堆疊將成為近期改進的重點領域和機會。

We are dedicating additional technology resources to modernize our tech stack and as mentioned have added Umesh Sripad, our very experienced new Chief Digital and Technology Officer to strengthen the leadership team.

我們正在投入更多的技術資源來實現我們的技術堆疊的現代化，如上所述，我們還增加了經驗豐富的新任首席數位和技術長 Umesh Sripad，以加強領導團隊。

The PetCareRx business that we acquired last year brings increased distribution capability and experience, geographic diversity, technology enhancements, additional vendor relationships and a long tenured and experienced staff whose capabilities will only enhance and accelerate our efforts to improve productivity. A key to driving growth and profitability is the successful execution around these initiatives.

我們去年收購的PetCareRx 業務帶來了增強的分銷能力和經驗、地理多樣性、技術增強、額外的供應商關係以及長期任職且經驗豐富的員工，他們的能力只會增強和加速我們提高生產力的努力。推動成長和獲利的關鍵是成功執行這些措施。

Our future hinges on the commitment to innovation, delivering seamless experiences and positively contributing to a brighter, healthier outlook for pets everywhere. At PETS, everything we do is rooted in consistently delivering high-quality, value-based products and services to millions of pets and their families while enhancing speed and efficiency.

我們的未來取決於對創新的承諾，提供無縫體驗，並為世界各地的寵物創造更光明、更健康的前景做出積極貢獻。在 PETS，我們所做的一切都是為了始終如一地為數百萬寵物及其家人提供高品質、基於價值的產品和服務，同時提高速度和效率。

I'm eager to build upon our foundation and to foster even more personalized and meaningful relationships at every touch point through advanced technology solutions, generative AI, and integrative marketing initiatives. Equally important, we are also committed to providing exceptional value across pets through our loyalty programs and ongoing savings benefits that make high-quality products accessible to everyone.

我渴望在我們的基礎上再接再厲，透過先進的技術解決方案、生成式人工智慧和整合行銷舉措，在每個接觸點培養更個人化和有意義的關係。同樣重要的是，我們也致力於透過我們的忠誠度計劃和持續的儲蓄福利為寵物提供卓越的價值，使每個人都能獲得高品質的產品。

This will be an expansion of our existing loyalty program, including plans to add members to our National Employee Benefits Partnership, which is our PetPlus program. Our Veterinary Advisory Board will be instrumental, as I mentioned earlier, in furthering our mission of enhancing our ecosystem of products and services.

這將是我們現有忠誠度計劃的擴展，包括計劃將會員添加到我們的全國員工福利合作夥伴關係（即我們的 PetPlus 計劃）中。正如我之前提到的，我們的獸醫諮詢委員會將有助於進一步履行我們增強產品和服務生態系統的使命。

We currently offer free live chats with veterinary technicians access to the VetLive on-demand veterinary telehealth service through our partner, Vetster, and offer valuable benefits of live long savings to our pet insurance Pumpkin partnership.

目前，我們提供與獸醫技術人員的免費即時聊天，透過我們的合作夥伴 Vetster 訪問 VetLive 點播獸醫遠距醫療服務，並為我們的寵物保險 Pumpkin 合作夥伴關係提供長期儲蓄的寶貴福利。

We plan to utilize the exclusive veterinary community, approved incredible publishers to create and maintain our educational platform for dog, cat and horse owners. In summary, after my first four weeks in the role, I am even more convinced that our developing strategic business model will promote increased shareholder value.

我們計劃利用獨家獸醫社區、經過批准的優秀出版商來為狗、貓和馬的主人創建和維護我們的教育平台。總之，在上任的前四個星期後，我更加相信我們正在發展的策略性商業模式將促進股東價值的增加。

Our foundation has proven and we have the liquidity, including a balance sheet with over $55 million in cash and no debt as of March 31, 2024, that enables us to use a thoughtful, balanced approach to allocating capital.

我們的基礎已經證明，我們擁有流動性，包括截至 2024 年 3 月 31 日擁有超過 5500 萬美元現金且沒有債務的資產負債表，這使我們能夠採用深思熟慮、平衡的方法來分配資本。

As mentioned, over the near term, our top priority will be consolidating the businesses, rightsizing our infrastructure and investing in our technology to drive sustainable growth and profitability.

如前所述，短期內，我們的首要任務將是整合業務、調整基礎設施規模並投資技術，以推動永續成長和獲利能力。

We are confident that our strategic initiatives will drive growth, will improve profitability outcomes and will increase our key customer satisfaction metrics I am grateful for a dedicated team of partners internally and externally, each of whom play a crucial role in ensuring that PETS becomes the go-to resource for dogs, cats, horses' health and wellness.

我們相信，我們的策略性舉措將推動成長，提高獲利能力，並提高我們的關鍵客戶滿意度指標。至關重要的作用-為狗、貓、馬的健康提供資源。

With that, let me hand the call to Christine to cover the fourth-quarter results in more detail.

接下來，讓我把電話轉給克莉絲汀，讓她更詳細地介紹第四季的業績。

Thank you, Sandra. I will now provide an update on the fourth quarter fiscal-year 2024 results for the quarter ending March 31, 2024. Fourth-quarter fiscal-year 2024 sales was $66.5 million compared to sales of $62.4 million in the same period last year, representing growth of 6.6% year over year.

謝謝你，桑德拉。我現在將提供截至 2024 年 3 月 31 日的季度 2024 財年第四季業績的最新情況。2024財年第四季銷售額為6,650萬美元，去年同期銷售額為6,240萬美元，較去年同期成長6.6%。

The growth was due to incremental sales from the acquisition of PetCareRx, partially offset by a slowdown in call center response times due to the implementation of our new order management systems and AutoShip platforms during the fourth quarter. We welcomed approximately 73,000 new pet parents this quarter, relatively flat to the same period in the prior year.

這一增長是由於收購 PetCareRx 帶來的銷售增量，但部分被第四季度實施新訂單管理系統和 AutoShip 平台導致的呼叫中心響應時間放緩所抵消。本季我們迎來了約 73,000 名新寵物父母，與去年同期相比持平。

Consolidated reorder sales were $58.9 million for the quarter, an increase of 4.6% compared to reorder sales of $56.2 million in the same period last year. We've continued to grow our recurring revenue, including AutoShip & Save sales and PetCareRx membership sales as a percentage of total sales to 54% in the fourth quarter of fiscal-year 2024 compared to 52% in the third quarter of fiscal 2024 and 44% in the same quarter last year. Increasing our recurring revenue remains a focus for us as it drives greater engagement and strengthens the predictability of our sales base.

本季綜合再訂購銷售額為 5,890 萬美元，比去年同期的再訂購銷售額 5,620 萬美元成長 4.6%。我們的經常性收入持續成長，包括AutoShip & Save 銷售額和PetCareRx 會員銷售額佔總銷售額的百分比，在2024 財年第四季達到54%，而2024 財年第三季為52%，2024 財年第四季為52%。增加經常性收入仍然是我們的重點，因為它可以提高參與度並增強我們銷售基礎的可預測性。

Prescriptions and premium food are some of the top categories for our customers and we believe they continue to offer significant potential to help us increase order size purchase frequency and customer LTV in addition to attracting new customers. Gross profit margin was 27.3% compared to 27.9% in the same quarter last year and 27.4% in the third quarter. The decrease year over year was due to lower manufacturing rebates, higher promotional activity and a lower prescription medication sales mix, offset by an increase in PetCareRx membership fees.

處方藥和優質食品是我們客戶最喜歡的類別之一，我們相信它們除了吸引新客戶外，還將繼續提供巨大的潛力，幫助我們提高訂單規模購買頻率和客戶生命週期價值。毛利率為27.3%，去年同期為27.9%，第三季為27.4%。年比下降的原因是製造回扣減少、促銷活動增加以及處方藥銷售組合減少，但被 PetCareRx 會員費增加所抵消。

Adjusted EBITDA was $500,000 for the fourth quarter compared to an adjusted EBITDA of $3.6 million in the same period last year. The decrease was due to an increase in G&A and advertising expenses, partially offset by an increase in gross profit. Net loss for the fourth quarter was $5 million or $0.25 per diluted share compared to a net loss of $200,000 or $0.01 per diluted share for the same period last year. The change year over year was due to the increase in G&A and advertising expenses of $3.5 million due to the PetCareRx acquisition, an increase in depreciation and amortization of $900,000 as well as an increase in the tax provision of $870,000 and a decrease in interest income of $400,000, partially offset by an increase in gross profit related to the acquisition of $800,000.

第四季調整後 EBITDA 為 50 萬美元，去年同期調整後 EBITDA 為 360 萬美元。下降的原因是一般管理費用和廣告費用的增加，但被毛利的增加部分抵消。第四季淨虧損為 500 萬美元，即稀釋後每股虧損 0.25 美元，去年同期淨虧損為 20 萬美元，即稀釋後每股虧損 0.01 美元。同比變化的原因是，由於收購 PetCareRx，G&A 和廣告費用增加了 350 萬美元，折舊和攤銷增加了 90 萬美元，稅款準備金增加了 87 萬美元，利息收入減少了40 萬美元，部分被與收購相關的毛利增加80 萬美元所抵銷。

Turning to the balance sheet. As of March 31, 2024, we had over $55 million of cash and equivalents and no debt. We continue to look for ways to maximize cash through driving net working capital improvements, negotiating leases with our tenants and reviewing vendor agreements for efficiencies.

轉向資產負債表。截至 2024 年 3 月 31 日，我們擁有超過 5,500 萬美元的現金和等價物，沒有債務。我們繼續尋找透過推動淨營運資本改善、與租戶談判租賃以及審查供應商協議以提高效率來最大化現金的方法。

With that, I will now turn the call back to Sandra for concluding remarks.

現在，我將把電話轉回給桑德拉，讓其作總結發言。

Our strategic plan provides a robust foundation guiding our organization with a clear compass and ambitious KPIs. This plan is underpinned by these key pillars. First, delivering Pet's combined growth across all categories. Second, executing an enterprise-wide consolidation of businesses. Third, executing digital transition initiatives and lastly, operating with financial discipline across every department and function. As we embark on a multiyear transformation to achieve top line growth across our distribution channels, we remain steadfast in our commitment to our core purpose.

我們的策略計劃透過清晰的指南針和雄心勃勃的 KPI 為指導我們的組織提供了堅實的基礎。該計劃以這些關鍵支柱為基礎。首先，實現寵物所有品類的綜合成長。二是實施全企業業務整合。第三，執行數位轉型計劃，最後，在每個部門和職能部門中按照財務紀律運作。當我們開始進行多年轉型以實現整個分銷管道的收入成長時，我們仍然堅定地致力於實現我們的核心目標。

Our focus is on our pet families, ensuring that they have access to the best products for preventive and acute care at all stages of their companion animal's lives. We celebrate the veterinarian to provide exceptional care to their patients nationwide and we welcome the support of our newly formed Veterinary Advisory Board as part of our fiscal year 2025 initiatives.

我們的重點是我們的寵物家庭，確保他們在伴侶動物生命的各個階段都能獲得最佳的預防和急性護理產品。我們讚揚獸醫為全國各地的患者提供卓越的護理，並歡迎新成立的獸醫諮詢委員會的支持，作為我們 2025 財年舉措的一部分。

Additionally, we value our strategic partners who help us create a comprehensive ecosystem supporting pets throughout all of their lives. We also prioritize our employees by investing in upskilling and providing ample career development opportunities.

此外，我們重視我們的策略夥伴，他們幫助我們創建了一個全面的生態系統，為寵物的一生提供支持。我們也透過投資於技能提升和提供充足的職涯發展機會來優先考慮我們的員工。

And with that, I am very thankful and honored once again to be able to lead this organization during this pivotal time and look forward to further discussions. Thank you very much. We are now ready for the question-and-answer session.

因此，我再次非常感謝和榮幸能夠在這個關鍵時刻領導這個組織，並期待進一步的討論。非常感謝。我們現在準備好進行問答環節了。

(Operator Instructions) Ryan Meyers, Lake Street Capital Markets.

（操作員說明）Ryan Meyers，湖街資本市場。

Yes, thanks for taking my questions today. First one for me, given all the initiatives you guys just laid out, do you feel like you can generate top line growth this year?

是的，感謝您今天回答我的問題。我的第一個問題是，考慮到你們剛剛提出的所有舉措，你們認為今年可以實現營收成長嗎？

Hi. This is Sandra. And absolutely, our initiatives are focused on generating top line growth. We have started to already implement some changes across not only our marketing initiatives, but also as we continue to impact the technology as we were, if I was mentioning earlier and all the technology advancements.

你好。這是桑德拉。當然，我們的舉措的重點是實現收入成長。我們已經開始實施一些改變，不僅涉及我們的行銷計劃，而且隨著我們繼續影響技術，如果我之前提到所有技術進步的話。

We know that we have the opportunity to increase sales, not only with the addition of our AutoShip subscriptions with current and recurring customers. But also, in terms of new customers through creating these more seamless customer journeys and seamless experiences so that they can actually have better access to the products that they need at the right time. In addition to that, as it relates to, as we look at our supply chain and our distribution and the way that we can actually get the product closer to the customer and with speed and efficiency, that we also believe is going to absolutely help in top line sales.

我們知道，我們有機會增加銷售額，而不僅僅是增加現有客戶和經常性客戶的自動出貨訂閱。而且，就新客戶而言，透過創建這些更無縫的客戶旅程和無縫體驗，以便他們實際上可以在正確的時間更好地存取他們需要的產品。除此之外，當我們審視我們的供應鏈和分銷以及我們實際上能夠以速度和效率讓產品更接近客戶的方式時，我們也相信這絕對會有所幫助頂線銷售。

That's very helpful. And then, next one for me, just switching over to the fundamentals of the business. Have you seen any further stabilization in the core business? Besides the consolidation you guys talked about, what else do you feel like needs to be done here to drive growth in that business?

這非常有幫助。然後，我的下一個目標是轉向業務的基本原則。您是否看到核心業務進一步穩定？除了你們談到的整合之外，你們認為還需要做些什麼來推動這項業務的成長？

In the core fundamental business, we're really looking at our overall vendors, our top vendors, our top-performing SKUs. With the help of our Veterinary Advisory Board, we're looking at what are -- what those most important medications in the Rx part of the business are and how we can ensure that we have those products from an inventory management perspective at all given points in time. We're actually seeing the returning customers increase. We're seeing an improvement in conversion because we're actually doing that through not only our customer care and health specialists who are on the phone communicating with those 100,000 plus pet families every month. But also online through chat, through e-mail and through their online purchases.

在核心基礎業務中，我們真正關注的是我們的整體供應商、我們的頂級供應商、我們表現最好的 SKU。在我們的獸醫諮詢委員會的幫助下，我們正在研究處方藥業務中最重要的藥物是什麼，以及我們如何從庫存管理的角度確保在所有給定點擁有這些產品及時。我們實際上看到回頭客在增加。我們看到轉換率有所提高，因為我們實際上不僅透過每月與這 100,000 多個寵物家庭透過電話溝通的客戶服務和健康專家來做到這一點。也可以透過聊天、電子郵件和線上購物進行線上交流。

So we are seeing that every piece, every initiative is going to absolutely help us propel these initiatives forward. And not only top line growth, also profitability of margin improvement because we are also making some slight deductions and changes as it relates to promotions, where as we focus on the top products that are core to -- patient's -- pet family's health and their health care of their pets and their lives. The more of that we offer, the better we're going to be able to improve our own margins on those products, not be focused on driving it at a value discount price, but really providing true value as it relates to the services and the products and the enhancement of those that we deliver as a company.

因此，我們看到每一項、每項舉措都絕對能幫助我們推動這些舉措向前發展。不僅是營收成長，利潤率也有所提高，因為我們還在促銷方面進行了一些輕微的扣除和改變，因為我們專注於對患者、寵物家庭的健康和他們的健康至關重要的頂級產品。他們的寵物和他們的生活。我們提供的服務越多，我們就越能提高這些產品的利潤，而不是專注於以超值折扣價格推動產品，而是真正提供與服務和產品相關的真正價值。產品的增強。

(Operator Instructions) Erin Wright, Morgan Stanley.

（操作員指令）Erin Wright，摩根士丹利。

Great. Thanks. So you gave a lot of great detail there on a lot of the changes you're making across the organization. And in light of that, how should we think about the cost structure going forward and going into next year? And how we should think about investments that you're making and the timing of that and how lumpy that can be quarter to quarter? And just broadly, your philosophy on growth versus profitability in terms of your priorities? Thanks.

偉大的。謝謝。因此，您提供了有關您在整個組織中所做的許多變革的大量詳細資訊。有鑑於此，我們應該如何考慮未來和明年的成本結構？我們應該如何考慮您正在進行的投資以及投資的時間表，以及每季的投資波動有多大？概括地說，您對成長與獲利的優先考慮是什麼？謝謝。

Thank you for that question. Well, we are absolutely focused on profitability. And as I mentioned, as it relates to consolidation of these two businesses, we are creating synergies with them and reducing redundancies. We are looking at that across literally every line item that has to do everything from vendors and agencies where we have had two separate businesses on two separate systems and duplication of costs there. That initially, an upfront and right away, is going to be able to make some immediate impact as it relates to reduction of operating expenses. So we're finding better efficiencies. We'll be focusing on the profitability through, first and foremost, reducing those duplications across both businesses in order to synergize what we have together.

謝謝你提出這個問題。嗯，我們絕對關注獲利能力。正如我所提到的，由於這涉及這兩項業務的整合，我們正在與它們創造協同效應並減少裁員。我們正在考慮幾乎每個行項目，這些項目必須完成供應商和代理商的所有工作，我們在兩個獨立的系統上擁有兩個獨立的業務，並且存在重複的成本。最初，預先的、立即的，將能夠產生一些直接的影響，因為它涉及營運費用的減少。所以我們正在尋找更高的效率。我們將首先透過減少兩個業務之間的重複來專注於獲利能力，以便協同我們所擁有的業務。

Okay. And then, can you give us some metrics around what the organic growth across the base business actually was in the quarter excluding the PetCareRx or new customer growth across the base business or any metrics from an organic perspective?

好的。然後，您能否為我們提供一些關於本季基本業務的有機成長實際情況（不包括 PetCareRx 或基本業務的新客戶成長）的指標，或從有機角度來看的任何指標？

Yes, Christine, I'm going to hand this to you because I know you are cutting in with these statistics.

是的，克里斯汀，我要把這個交給你，因為我知道你正在切入這些統計數據。

Yeah. Thank you. Thanks, Erin, for the question. So we don't break the metrics out separately, but we did report the new customer number for the quarter, and it was relatively flat to last year on a consolidated basis. But we are very focused on the key metrics that are going to be focused on new customer acquisition, retention of customers, and really as Sandra mentioned, selling more to customers as we focus on the lifetime value of those customers and the repeatability of those customers. So for the quarter, yes, new customer growth, we did relatively flat for the quarter and we don't necessarily split them out between the two businesses.

是的。謝謝。謝謝艾琳的提問。因此，我們不會單獨列出這些指標，但我們確實報告了本季的新客戶數量，並且在綜合基礎上與去年相對持平。但我們非常關注關鍵指標，這些指標將重點關注新客戶獲取、客戶保留，並且正如桑德拉所提到的那樣，向客戶銷售更多產品，因為我們關注這些客戶的終身價值和這些客戶的可重複性。因此，就本季而言，是的，新客戶成長，我們在本季的表現相對持平，我們不一定將其分為兩個業務。

Okay. All right. Thank you.

好的。好的。謝謝。

Thank you. We have reached the end of our question-and-answer session. And with that, this will conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。我們的問答環節已經結束。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。