Kidpik Corp (PIK) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Kidpik second-quarter 2023 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎您參加 Kidpik 2023 年第二季財務業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Ezra Dabah. Thank you, Ezra. You may begin.

現在我很高興向大家介紹你們的主持人 Ezra Dabah。謝謝你，以斯拉。你可以開始了。

Thank you, operator, and thank you, everyone, for joining us today. We are pleased to welcome everyone to today's call, where we will review Q2 2023 and provide an update on Kidpik's business. We will begin with a review of our financial business highlights followed by a financial review, which Jill, our Chief Accounting Officer, will take us through.

謝謝運營商，也謝謝大家今天加入我們。我們很高興歡迎大家參加今天的電話會議，我們將回顧 2023 年第二季並提供 Kidpik 業務的最新資訊。我們將首先回顧我們的財務業務亮點，然後進行財務審查，我們的首席會計官吉爾將帶領我們進行財務審查。

I'd like to start by sharing that our second-quarter earnings were, for the most part, consistent with our first quarter. During the second quarter, we continued to take action to execute our plan to reduce inventory levels while maintaining our gross margin of about 60%. We are focused on increasing sales from our current inventory level, which we believe will support our cash flow needs in the short term.

首先我想分享的是，我們第二季的收益在很大程度上與第一季一致。第二季度，我們繼續採取行動執行降低庫存水準的計劃，同時保持毛利率約60%。我們的重點是在當前庫存水準上增加銷售額，我們相信這將在短期內支持我們的現金流需求。

In preparing for the back-to-school season, we have taken the opportunity to elevate the look and feel of our brand and the experience of our subscription service and to further enhance shopping options. We believe that the combination of our marketing team's efforts to vividly showcase our unique assets and the confidence children feel while wearing Kidpik against the backdrop of Central Park, with the tech advancements made by our technology team, we have enriched our brand and website user experience.

在為返校季做準備時，我們藉此機會提升了我們品牌的外觀和感覺以及訂閱服務的體驗，並進一步增強了購物選擇。我們相信，行銷團隊的努力生動地展示了我們獨特的資產以及孩子們在中央公園的背景下穿著Kidpik 時感受到的自信，加上我們技術團隊的技術進步，我們豐富了我們的品牌和網站用戶體驗。

In our continued commitment to value addition, we recently launched exclusive member benefits, including a 10% discount at our Kidpik shop for active members. Our active subscriber base has been stable over the second quarter and year to date. We believe we hold a competitive advantage within the kids' clothing subscription marketplace by our ability to personalize and deliver head-to-toe stylized efforts at a great value. We continue to explore other paid and unpaid channels to generate new opportunities for conversions.

為了繼續致力於增值，我們最近推出了會員專屬福利，包括在 Kidpik 商店為活躍會員提供 10% 的折扣。我們的活躍用戶群在第二季和今年迄今一直保持穩定。我們相信，我們能夠以巨大的價值提供個人化服務並提供從頭到腳的風格化服務，從而在童裝訂閱市場中保持競爭優勢。我們繼續探索其他付費和免費管道，以創造新的轉換機會。

Having our own proprietary Kidpik brand gives us the opportunity to expand beyond our subscription boxes. In the second quarter, we have grown our e-commerce shop sales by 72% over the same period last year. We also experienced sales increases and demand for our products on the Walmart e-commerce platform. We invite you to visit kidpik.com and shop.kidpik.com to view our back-to-school collection and experience the technology that drives it.

擁有我們自己專有的 Kidpik 品牌使我們有機會擴展到訂閱盒之外。第二季度，我們的電商店舖銷售額比去年同期成長了72%。我們在沃爾瑪電子商務平台上也經歷了銷售額的成長和對我們產品的需求。我們邀請您造訪 Kidpik.com 和 shop.kidpik.com，查看我們的返校系列並體驗驅動它的技術。

With that, I will turn the call over to Jill to detail the financial highlights for the quarter. Jill?

接下來，我將把電話轉給吉爾，詳細介紹本季的財務亮點。吉爾？

Thank you, Ezra. Q2 revenue was $3.4 million, a decrease of 7.7% year over year and a decrease of 8.6% quarter over quarter. The decrease in revenue was primarily driven by a decrease in subscription box sales.

謝謝你，以斯拉。第二季營收為 340 萬美元，年減 7.7%，季減 8.6%。收入下降主要是因為訂閱盒銷量下降所致。

Looking at Q2 revenue by channel, subscription sales were approximately $2.6 million, a decrease of 12.3% quarter over quarter. Third-party website sales were lower at $427,000, a decrease of 23.6% quarter over quarter. Online website sales increased by 71.9% to $414,000 for the quarter.

從各通路的第二季營收來看，訂閱銷售額約 260 萬美元，季減 12.3%。第三方網站銷售額下降至 427,000 美元，季減 23.6%。本季線上網站銷售額成長 71.9%，達到 414,000 美元。

Moving to revenue by subscription for the quarter, active subscriptions or recurring boxes decreased by 17.8% to $2.2 million year over year. New subscriptions of first box increased by 32.7% to $2.4 million. Total subscriptions decreased by 12.3% to $2.6 million, which represents 76% of total revenue.

從本季訂閱收入來看，活躍訂閱或經常性訂閱盒營收年減 17.8%，至 220 萬美元。第一個盒子的新訂閱量增加了 32.7%，達到 240 萬美元。總訂閱量下降 12.3% 至 260 萬美元，佔總收入的 76%。

Turning to gross margin. Gross margin for the quarter was 60.2%, a year-over-year decrease of 80 basis points. Shipped items for the second quarter decreased by 18% to $290,000. Keep rate for the second quarter was 75.1% versus 69.2% for the second quarter last year. On the bottom line, net loss for the quarter was approximately $2 million or a loss of $0.26 per share compared to a net loss of $1.6 million or a loss of $0.21 per share for the second quarter last year.

轉向毛利率。本季毛利率為60.2%，較去年同期下降80個基點。第二季出貨量下降 18%，至 290,000 美元。第二季的保留率為 75.1%，而去年第二季的保留率為 69.2%。總而言之，本季淨虧損約為 200 萬美元，即每股虧損 0.26 美元，而去年第二季的淨虧損為 160 萬美元，即每股虧損 0.21 美元。

Speaking to non-GAAP, adjusted EBITDA for the quarter was negative $1.7 million compared to negative $1.1 million for the second quarter last year.

根據非 GAAP 計算，本季調整後 EBITDA 為負 170 萬美元，而去年第二季為負 110 萬美元。

Now to the balance sheet and cash flow. Cash at the end of the quarter was approximately $163,000 compared to $2.5 million at the end of 2022. We used $0.4 million in operating cash flow for the 26-week period compared to $4.0 million last year. In order to improve our cash position, we have significantly reduced purchases of new inventory and may enter into a cash advance or other financing arrangements.

現在來看看資產負債表和現金流量。本季末的現金約為 163,000 美元，而 2022 年末為 250 萬美元。在 26 週期間，我們使用了 40 萬美元的營運現金流，而去年為 400 萬美元。為了改善我們的現金狀況，我們大幅減少了新庫存的採購，並可能進行現金預支或其他融資安排。

As of July 1, 2023, we had $11 million in total current assets, $6 million in total current liabilities, and working capital of $4.9 million.

截至 2023 年 7 月 1 日，我們的流動資產總額為 1,100 萬美元，流動負債總額為 600 萬美元，營運資本為 490 萬美元。

With that, I will turn the call back to the operator for Q&A. Operator?

這樣，我會將電話轉回接線生進行問答。操作員？

(Operator Instructions) One moment, please, while we pull for questions. Thank you. There are no questions at this time. I would like to hand the floor back over to management for any closing comments.

（操作員指示）請稍等一下，我們正在提問。謝謝。目前沒有問題。我想將發言權交還給管理階層，以徵求結束語。

Thank you, operator, and thank you all for joining us today. Thank you for your continued support and interest in Kidpik. If you have any additional questions or any questions at all, please contact us at ir@kidpik.com. Wishing everybody a great day, health, and happiness always. Thank you.

謝謝運營商，也謝謝大家今天加入我們。感謝您對 Kidpik 的持續支持和關注。如果您有任何其他問題或任何疑問，請透過 ir@kidpik.com 與我們聯繫。祝大家有美好的一天，健康，永遠幸福。謝謝。

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

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。

Thank you.

謝謝。