Carparts.Com Inc (PRTS) 2024 Q3 法說會逐字稿

Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question-and-answer session. Please note this call is being recorded. I would now like to pass the conference over to our host, Tina Mirfarsi, Senior Vice President of Global Communications and Brand. Please go ahead.

午安.此時，所有參與者將處於僅聽模式。演講結束後，將進行問答環節。請注意，此通話正在錄音。現在我想將會議交給我們的東道主、全球傳播和品牌高級副總裁蒂娜·米爾法西 (Tina Mirfarsi)。請繼續。

Hello, everyone and thank you for joining us for the Carparts.com third quarter conference call. Joining me today are David Mignon, Chief Executive Officer Ryan Lockwood; Chief Financial Officer and Michael Huffaker, Chief Operating Officer.

大家好，感謝您參加 Carparts.com 第三季電話會議。今天與我一起出席的有 David Mignon、執行長 Ryan Lockwood；財務長兼營運長麥可‧赫法克(Michael Huffaker)。

Before I turn it over to David to start the meeting. I have some important disclosures. The prepared remarks and responses to your questions could contain certain forward-looking statements related to the business under the federal securities laws.

在我把它交給大衛開始會議之前。我有一些重要的披露。準備好的評論和對您問題的答覆可能包含與聯邦證券法規定的業務相關的某些前瞻性陳述。

Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with the business, for a discussion of the material risks and other important factors that could affect results. Please refer to the carparts.com annual report on Form 10-K and 10-Qs as filed with the SEC, both of which can be found on our investor relations website.

由於與業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述中包含或暗示的結果有重大差異，這是對可能影響結果的重大風險和其他重要因素的討論。請參閱 carparts.com 向 SEC 提交的 10-K 表格和 10-Q 表格年度報告，這兩份報告都可以在我們的投資者關係網站上找到。

On the call, both GAAP and non-GAAP financial measures will be discussed. A reconciliation of GAAP to non-GAAP financial measures is provided in the CarParts.com press release issued today. And with that, I would now like to turn the call over to David.

在電話會議上，我們將討論公認會計準則和非公認會計準則的財務指標。今天發布的 CarParts.com 新聞稿中提供了 GAAP 與非 GAAP 財務指標的調整表。現在我想把電話轉給大衛。

Thank you, Tina and thanks, everyone for joining us today. Over the third quarter, we made progress against our plan to position Carparts for a strong fiscal 2025 and beyond. We began the year by refocusing our strategy on three key elements.

謝謝蒂娜，謝謝大家今天加入我們。第三季度，我們在實現 Carparts 2025 財年及以後業績強勁的計劃方面取得了進展。今年伊始，我們將策略重點重新集中在三個關鍵要素。

Number one, driving growth and net margin. Number two, accelerating efficiency and effectiveness to quickly deliver improved profitability. And number three, achieving sustainable growth with strong long term free cash flow.

第一，推動成長和淨利潤。第二，提高效率和有效性，以快速提高獲利能力。第三，透過強勁的長期自由現金流實現永續成長。

In line with this strategy, we focused on driving margin improvement and saw pre freight margins increase to 54.6% in the third quarter from 50.8% in the prior year quarter. The improvement was driven by lower input product costs and updates to our pricing and customer acquisition strategies to target a higher value consumer base as well as less reliance on promotions and discounts.

根據這項策略，我們專注於推動利潤率改善，第三季預運費利潤率從去年同期的 50.8% 增至 54.6%。這項改進是由於投入產品成本降低、定價和客戶獲取策略更新以瞄準更高價值的消費者基礎以及減少對促銷和折扣的依賴而推動的。

This higher value customer is seeking quality parts with value pricing and provides a higher margin profile with better unit economics long term. we continue to have high confidence in our road map with several evidence points that we will share today somewhat early in the journey but showing positive momentum, we expect to emerge from this transition period. Positioned to capture the growing opportunity in front of us within a fragmented and underserved $400 billion auto parts market.

這個更高價值的客戶正在尋求具有價值定價的優質零件，並提供更高的利潤率和更好的長期單位經濟效益。我們仍然對我們的路線圖充滿信心，其中有幾個證據點，我們今天將在旅程的早期分享這些證據點，但顯示出積極的勢頭，我們預計將走出這個過渡期。我們的目標是在價值 4000 億美元的汽車零件市場碎片化且服務不足的情況下抓住我們面前不斷增長的機會。

Customers value our offering, and our business model is highly differentiated, scalable and difficult to replicate. As a reminder, we generate e-commerce traffic on carparts.com in excess of $100 million visits per year. Our nationwide fulfilment network is now at $1.2 million square feet with two-day shipping capabilities in the majority of the country and our infrastructure is backed by a proprietary catalogue that includes both collision and mechanical parts with a complete assortment of private label and premium branded parts, creating a competitive moat.

客戶重視我們的產品，我們的業務模式具有高度差異化、可擴展性且難以複製。謹此提醒，我們每年在 carparts.com 上產生的電子商務流量超過 1 億美元。我們的全國配送網絡目前面積達120 萬平方英尺，在全國大部分地區具有兩天發貨能力，我們的基礎設施由專有目錄提供支持，其中包括碰撞零件和機械零件，以及種類齊全的自有品牌零件和優質品牌零件，打造競爭護城河。

I'd like to call out now that we saw three weeks of impact from hurricane Helene and Milton on our business across Florida, Georgia, Tennessee, North and South Carolina and Virginia. Our facility in Jacksonville, Florida was briefly closed is undamaged and now back to shipping at full volume. We will continue to watch for residual impacts on our business in the region and our thoughts go out to anyone impacted by these devastating storms.

我現在想指出的是，颶風海倫和米爾頓對我們在佛羅裡達州、喬治亞州、田納西州、南北卡羅來納州和維吉尼亞州的業務造成了三週的影響。我們位於佛羅裡達州傑克遜維爾的工廠曾短暫關閉，但未損壞，現在已恢復滿量運輸。我們將繼續關注對該地區業務的殘餘影響，並向所有受到這些毀滅性風暴影響的人表示慰問。

Now, I'll provide some details around the progress we've made in each of our strategic pillars before turning the call over to Ryan for a financial update. First, we continue to optimize our product and service assortment to maximize the profitability of our e-commerce channel.

現在，我將提供一些有關我們在每個戰略支柱方面取得的進展的詳細信息，然後再將電話轉給瑞安以獲取最新的財務信息。首先，我們不斷優化產品和服務種類，以最大限度地提高電子商務管道的獲利能力。

Over the last 12 months, we have been working on re platforming carparts.com to increase performance and shorten our development cycles. This initiative requires a full commitment of our technical resources to deliver new website experience and infrastructure. And I am proud to announce that carparts.com is now in a best-in-class cloud-based infrastructure that allows us to roll out new features faster than ever.

在過去 12 個月中，我們一直致力於重新建置 carparts.com 平台，以提高效能並縮短開發週期。這項措施需要我們充分投入技術資源來提供新的網站體驗和基礎設施。我很自豪地宣布，carparts.com 現在擁有一流的基於雲端的基礎設施，使我們能夠比以往更快地推出新功能。

Historically, our legacy monolith infrastructure prevented us from making meaningful changes to our shopping experience. We can now deliver new features quickly and in parallel at a lower cost which we expect will result in increasing order patterns, conversion and basket size.

從歷史上看，我們遺留的整體基礎設施阻止我們對購物體驗做出有意義的改變。我們現在可以以較低的成本快速並行地提供新功能，我們預計這將導致訂單模式、轉換率和購物籃規模的增加。

We have recently rolled out several strategic initiatives that took about two weeks each. That historically would have taken us 6 to 9 months to roll out such as, our partnership with simple tire offering a full assortment of tires with installation. Our new shipping and product protections are VIN lookup that has over 30,000 uses in just two weeks. Although early in the journey, all these initiatives are seeing take rates and usage higher than anticipated.

我們最近推出了幾項策略舉措，每項舉措都花費了大約兩週的時間。從歷史上看，我們需要 6 到 9 個月的時間才能推出，例如我們與 simpletyre 的合作，提供全系列的輪胎和安裝。我們新的運輸和產品保護是 VIN 查找，在短短兩週內就有超過 30,000 次使用。儘管還處於早期階段，但所有這些措施的實施率和使用率都高於預期。

Over the next two quarters, we are committed to delivering additional revenue generating features such as AI powered product recommendations, the loyalty program, as well as other marketing technology enhancements to make our marketing dollars work smarter.

在接下來的兩個季度中，我們致力於提供額外的創收功能，例如人工智慧驅動的產品推薦、忠誠度計劃以及其他行銷技術增強功能，以使我們的行銷資金更加智慧。

Our mobile app continues to perform with over 550,000 organic downloads to date. Today 80% of our customers shop on mobile and we expect direct in app purchases to drive customer acquisition savings over time by reducing our reliance on search engine and performance marketing. While in incentivizing repeat purchases.

迄今為止，我們的行動應用程式的自然下載量持續超過 550,000 次。如今，我們 80% 的客戶在行動裝置上購物，我們希望透過減少對搜尋引擎和效果行銷的依賴，隨著時間的推移，直接在應用程式內購買可以節省客戶獲取費用。同時激勵重複購買。

On the product assortment side, we continue to invest in new categories with an attractive margin profile that target a more affluent customer base. In the third quarter, we focus our efforts on three specific areas, all of which showed positive early results. Our OE premium brands are up 24% year over year. Our European brands are up 23% year over year. And finally, our wholesale commercial sales channel excluding the impact of our Vegas move is up mid-single digits.

在產品種類方面，我們繼續投資具有有吸引力的利潤狀況的新類別，瞄準更富裕的客戶群。第三季度，我們重點放在三個具體領域開展工作，所有這些領域都取得了積極的早期成果。我們的 OE 優質品牌年增 24%。我們的歐洲品牌年增 23%。最後，排除拉斯維加斯搬遷的影響，我們的批發商業銷售管道成長了中個位數。

These three categories accounted for approximately 5% of our overall business in the quarter and are expected to grow rapidly as we continue to expand our assortment helping change our customer profile and increase EBITA margin. We will provide a more detailed update on our next call.

這三個類別約占我們本季整體業務的 5%，並且隨著我們繼續擴大產品種類，幫助改變我們的客戶概況並提高 EBITA 利潤率，預計將快速成長。我們將在下次通話中提供更詳細的更新資訊。

Next, we continue to invest in additional growth opportunities that will increase brand awareness and recognition while expanding our marketplace presence and customer base. We are happy to announce the launch of our eBay store in Canada with a full assortment of mechanical parts. We are leveraging our best-in-class catalogue and marketplaces capabilities to capture incremental revenue in this new global market. Early signs are positive and as we continue to ramp up, we believe it could become a top line revenue driver

接下來，我們將繼續投資額外的成長機會，以提高品牌知名度和認可度，同時擴大我們的市場影響力和客戶群。我們很高興地宣佈在加拿大開設 eBay 商店，提供品種齊全的機械零件。我們正在利用一流的目錄和市場能力在這個新的全球市場中獲取增量收入。早期跡像是積極的，隨著我們繼續擴大規模，我們相信它可能成為收入驅動因素

On the Amazon front. We have recently completed a pilot leveraging the Amazon fulfilment network to offer a selection of our private label parts. This program offers Amazon shoppers our private label products with same and next day delivery with prime badging to generate incremental top line revenues at an attractive financial profile. Although this initiative is in its early days, we're seeing a double-digit list on the products we tested.

在亞馬遜方面。我們最近完成了一項試點，利用亞馬遜履行網路提供精選的自有品牌零件。該計劃為亞馬遜購物者提供帶有優質標誌的當日和次日送達自有品牌產品，以有吸引力的財務狀況產生增量收入。儘管該計劃還處於早期階段，但我們在測試的產品上看到了兩位數的清單。

Lastly, we continue to manage and address rising freight costs by capturing optimization, efficiencies and upgrading our logistics freight costs continue to be a headwind in the third quarter at approximately 19.3% of sales. However, as we discussed last quarter, our efforts around inventory placement and freight optimization helped us absorb some of the impact.

最後，我們繼續透過優化、效率和升級來管理和解決不斷上升的貨運成本，我們的物流貨運成本仍然是第三季的阻力，約佔銷售額的 19.3%。然而，正如我們上季度討論的那樣，我們在庫存佈局和貨運優化方面的努力幫助我們吸收了一些影響。

On the logistics side our old Las Vegas facility has been decommissioned and we're excited about our new fully operational facility which we expect to enhance operating leverage, improve process efficiencies and boost customer conversion in the region with full savings real starting in 2025.

在物流方面，我們拉斯維加斯的舊設施已經退役，我們對新的全面營運設施感到興奮，我們預計該設施將增強營運槓桿、提高流程效率並促進該地區的客戶轉化，並從2025 年開始真正實現全額節省。

The facility is now shipping over 20% of our network volume on track with our initial target. The new facilities assortment paired with a state-of-the-art AI powered pick module and extensive conveyance allows for increased gross margin through lower freight costs as well as a significant reduction in operating costs respectively.

該設施目前的運輸量占我們網路運輸量的 20% 以上，符合我們的初始目標。新的設施分類與最先進的人工智慧揀選模組和廣泛的運輸相結合，可以透過降低貨運成本來提高毛利率，並分別顯著降低營運成本。

We will continue our focus on gross margin improvement combined with driving efficiencies and cost savings. As we transition into a more profitable business, I will now turn the call over to Ryan to lead us through our financial results.

我們將繼續關注毛利率的提高以及提高效率和成本節約。隨著我們向盈利能力更強的業務轉型，我現在將把電話轉給瑞安，讓他帶領我們了解財務表現。

Thank you, David.

謝謝你，大衛。

In Q3, we reported revenues of $144.8 million up slightly from the prior quarter and down 13% from $166.9 million last year. The decline was driven primarily by a combination of deliberate price increases to focus on higher value customers support gross market expansion. A continued challenging consumer environment and industry and one-time impacts from the crowd strike issue and hurricanes Helene and Milton in the quarter gross profit for the quarter was $51 million down approximately 7% compared to the prior year. Gross margin was 35.2% up from 32.9% in the prior year period and up sequentially from 33.5% last quarter.

第三季度，我們公佈的營收為 1.448 億美元，比上一季略有成長，比去年的 1.669 億美元下降了 13%。下降的主要原因是故意提高價格，以專注於更高價值的客戶，並支持整體市場擴張。消費者環境和產業持續充滿挑戰，以及人群罷工問題和颶風海倫和米爾頓的一次性影響，本季毛利為 5,100 萬美元，比前一年下降約 7%。毛利率為 35.2%，高於去年同期的 32.9%，較上季的 33.5%。

Gross margin improvement resulted from increased prices and lower product costs resulting in expanded product margins partially offset by higher year over year freight costs.

毛利率的提高是由於價格上漲和產品成本降低導致產品利潤率的擴大，但部分被年比運費上漲所抵銷。

GAAP net loss for the quarter was $10 million compared to net loss of $2.5 million in the prior year period, primarily driven by increased marketing spend and lower net revenue resulting in lower flow through.

本季 GAAP 淨虧損為 1,000 萬美元，而去年同期淨虧損為 250 萬美元，主要是由於行銷支出增加和淨收入減少導致流量減少。

We reported adjusted EBITDA loss of $1.2 million down from adjusted EBITDA of $3 million in the prior year period due to lower sales and expenses outside of our normal operations, which include brand awareness and marking investments, overlapping software expenses related to our digital transformation, as well as one-time costs related to the move and set up of our Las Vegas facility.

我們報告調整後EBITDA 損失比上年同期調整後EBITDA 300 萬美元減少了120 萬美元，原因是我們正常營運之外的銷售和費用減少，其中包括品牌知名度和行銷投資、與我們的數位轉型相關的重疊軟體費用，以及與搬遷和建立我們拉斯維加斯工廠相關的一次性成本。

On a year-to-date basis, the total amount of expenses outside of our normal operations and other one-time costs impacting our P&L add up to approximately $6 million. We are confident that these investments will generate a significant [Roy] over the next few years.

今年迄今為止，我們正常營運以外的費用總額以及其他影響我們損益的一次性成本總計約為 600 萬美元。我們相信這些投資將在未來幾年產生巨大的 [Roy] 效益。

Turning to the balance sheet, we ended the quarter with $38 million of cash and no debt. We generated $345,000 of interest income in the third quarter. Our significant cash position and untapped revolver continues to support our business plan.

轉向資產負債表，本季末我們擁有 3,800 萬美元現金，沒有債務。第三季我們產生了 345,000 美元的利息收入。我們大量的現金狀況和未開發的左輪手槍繼續支持我們的業務計劃。

The inventory balance at quarter end was $97 million. We are pleased with the work our team has done to improve inventory efficiency and similar to previous years, we expect inventory to rise slightly as we get ready for our peak season early next year.

季末庫存餘額為 9,700 萬美元。我們對我們的團隊為提高庫存效率所做的工作感到滿意，與往年類似，我們預計庫存將略有上升，因為我們為明年初的旺季做好了準備。

Turning to our outlook for 2024, due to the unexpected and continued impact from the hurricanes. We are narrowing and lowering our full year revenue guidance by $5 million to $595 million to $600 million. However, we are narrowing our expected gross margin guidance to the high end of the range from 32% to 34% up to 33% to 34%.

鑑於颶風帶來的意外且持續的影響，我們對 2024 年的展望。我們將全年營收指引縮小並降低了 500 萬美元，至 5.95 億美元至 6 億美元。然而，我們將預期毛利率指導範圍縮小至上限，從 32% 至 34% 至 33% 至 34%。

Thanks Ryan. We are focused on elevating carparts.com to a leading position in the market with improvements across our entire business from customer experience and product assortment to operational efficiencies and we expect to see continued improvement in 2025 and beyond. As we continue to target higher value customers with better unit economics.

謝謝瑞安。我們致力於將 carparts.com 提升到市場領先地位，從客戶體驗、產品分類到營運效率，對我們的整個業務進行改進，我們預計在 2025 年及以後將持續改進。我們繼續以更好的單位經濟效益瞄準更高價值的客戶。

We're excited to see the early results of the investments we made this year including our new website, mobile app, newly expanded warehouse in Las Vegas, as well as the new higher margin products and services we launched. In addition, as we anniversary the headcount reductions and large CapEx projects from 2024.

我們很高興看到今年投資的早期成果，包括我們的新網站、行動應用程式、拉斯維加斯新擴建的倉庫，以及我們推出的新的更高利潤的產品和服務。此外，正值 2024 年裁員和大型資本支出項目週年紀念。

We expect free cash flow to be significantly higher year over year in 2025 we are driving a path that we expect will result in achieving sustainable and significantly positive adjusted EBITA in 2025 as we emerge from this low water mark year while working towards achieving a 6% to 8% adjusted EBITA margin and enhance free cash flow generation in the medium term.

我們預計2025 年自由現金流將顯著高於去年同期，我們正在推動一條道路，我們預計將在2025 年實現可持續且顯著正調整的EBITA，因為我們擺脫了這個低水位年份，同時努力實現6%調整後的 EBITA 利潤率達到 8%，並增強中期自由現金流的產生。

I would like to thank our Global team for their hard work and commitment throughout our transformation.

我要感謝我們的全球團隊在整個轉型過程中的辛勤工作和承諾。

Thank you everyone for joining today's call. We will now turn it over to the operator to open it up for questions.

感謝大家參加今天的電話會議。我們現在將其移交給操作員以供提問。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Our first question comes from the line of Ryan Sigdahl from Craig-Hallum Capital Group.

我們的第一個問題來自 Craig-Hallum Capital Group 的 Ryan Sigdahl。

Hey, Good Afternoon, David, Ryan.

嘿，下午好，大衛，瑞安。

Hey, how Are you doing?

嘿，你好嗎？

Good, good. Want to start with the revenue. I work our way down. But what caused the acceleration or growth sequentially? Historically, just seasonality sales are usually down from Q2 to Q3. Combine that with price increase that you took likely giving up some volume for margins, I guess. I am surprised there. So, I guess where are you guys seeing success and, and what really drove that?

好，好。想從收入開始。我一路往下走。但是是什麼導致了加速或連續成長呢？從歷史上看，季節性銷售額通常會從第二季到第三季下降。我想，將其與價格上漲相結合，您可能會為了利潤而放棄一些銷售。我對此感到驚訝。那麼，我想你們在哪裡看到了成功，以及真正推動這項成功的因素是什麼？

Hey, Ryan, it is David. Yeah, definitely. The first time that Q3 is higher than Q2, I think, you know, a lot of it is just, you know, inventory driven pricing action, some of the marketing initiatives, the new website, it's just, you know, relentless execution across the board, I think, you know, obviously we would have liked to do more but it, it's most, most of it is blocking and tackling.

嘿，瑞安，我是大衛。是的，絕對是。第三季度第一次高於第二季度，我認為，你知道，很多只是，你知道，庫存驅動的定價行為，一些營銷舉措，新網站，這只是，你知道，不懈的執行董事會，我想，你知道，顯然我們想做更多，但它，它的大部分，大部分都是阻擋和鏟球。

So then moving kind of that relentless execution, I guess, moving down really nice gross margin, but we get to OpEx and it was several million dollars higher than expected. I mean, $5 million more than us. I heard higher freight which seems like a consistent something we hear every quarter. So, I guess curious how systemic that is versus your ability and confidence that you can get that under control. And then what else is really in OpEx causing that big sequential increase?

因此，我想，這種無情的執行，會降低非常好的毛利率，但我們談到營運支出，它比預期高出數百萬美元。我的意思是，比我們多 500 萬美元。我聽說運費上漲，這似乎是我們每季聽到的一致情況。所以，我想好奇的是，與你控制它的能力和信心相比，這是多麼系統化。那麼營運支出中到底還有什麼因素導致了大幅連續成長呢？

Yeah. So, if you look at so on the gross margin, Q2 was higher than Q1 and Q3 was higher than Q2. If you unpack OpEx, you know, you got about $2.2 million of expenses that are outside of normal operations. And without those, we would have been profitable. So the majority of it was brand awareness, marketing investments, as well as the set up and the transfer to the new building in Vegas.

是的。因此，如果從毛利率來看，第二季高於第一季度，第三季高於第二季。如果您拆開營運支出，您會發現，您會得到大約 220 萬美元的正常營運之外的費用。如果沒有這些，我們就能獲利。因此，其中大部分是品牌知名度、行銷投資以及拉斯維加斯新大樓的建立和轉移。

On top of that, you know, we took some of the money, some of the extra margin that we generated, we reinvested into performance marketing. So, during the quarter, we saw increased competition on performance marketing and some of it is due to just soft consumer demand, but we're also seeing a lot of the retailers fighting to capture the same dollars from consumers.

最重要的是，你知道，我們拿了一些錢，我們產生的一些額外利潤，我們重新投資到績效行銷。因此，在本季度，我們看到效果行銷的競爭加劇，部分原因是消費者需求疲軟，但我們也看到許多零售商都在努力從消費者那裡獲取相同的收入。

And on top of that, it's obviously an election year. So, it is about 100 basis points of additional marketing dollars that we spent that we took from gross margin. So, you take the $2.2 million of OpEx and then you take an extra 100 basis points that kind of walks you to that number. But you know, election is definitely a component I think because we're seeing a lot of competition on performance marketing.

最重要的是，今年顯然是個選舉年。因此，我們從毛利率中扣除了約 100 個基點的額外行銷費用。因此，您獲得 220 萬美元的營運支出，然後再額外獲得 100 個基點，這樣您就可以得出這個數字。但你知道，我認為選舉絕對是一個組成部分，因為我們看到效果行銷方面存在著許多競爭。

And you think that's a good trade off, I guess leaning in on performance marketing while leaning in on price to hopefully offset or partially offset it.

你認為這是一個很好的權衡，我想依靠績效行銷，同時依靠價格來希望抵消或部分抵消它。

Yeah, I mean, it's always a balance in terms of cutting price to increase conversion in the short term or making additional marketing investments. You know, we have pretty good repeat purchase rate. So, a lot of it is making an investment to acquire a customer that we think is going to come back.

是的，我的意思是，在降低價格以提高短期轉換率或進行額外的行銷投資方面始終保持平衡。你知道，我們的重複購買率相當高。因此，很多都是為了獲得我們認為會回來的客戶而進行投資。

You know, the mobile app is one of the best evidence points to, to look at, you know, we launched it last year. We are now up to 550,000 organic downloads. And if you unpack the numbers of the mobile app, you have call it 8% of revenue. So, it is about $25 million of revenue going through the app. The conversion is higher, the AOV is higher average order value, the repeat purchase rate is higher. So, I feel pretty good about increasing marketing a little bit in the short term to capture that customer so that we can remarket to them in the future, especially during peak season.

你知道，行動應用程式是最好的證據之一，你知道，我們去年推出了它。目前，我們的自然下載量已高達 55 萬次。如果你解開行動應用程式的數字，你可以稱之為收入的 8%。因此，透過該應用程式獲得的收入約為 2500 萬美元。轉換率越高，AOV 平均訂單價值越高，重複購買率越高。因此，我覺得在短期內增加一點行銷來吸引客戶是非常好的，這樣我們就可以在未來再向他們行銷，尤其是在旺季。

One more for me. Good to see the adjacencies with tires, with Canada and Amazon, you have also talked about kind of protection plans, subscriptions, memberships, I guess. Where are we at with the adjacent opportunities to upsell customers?

再給我一份。很高興看到與輪胎、加拿大和亞馬遜的毗鄰，我想你也談到了保護計劃、訂閱、會員資格。我們在向客戶追加銷售的鄰近機會方面處於什麼位置？

Yeah, I am glad you bring this up and it ties into the pressures for performance marketing but also freight. So, if you look at our business just being an e-commerce company, the two main drivers of profitability are performance marketing and freight. And obviously these are always going to be challenges. And so, what we think is the big opportunity is to leverage the traffic that we get on carparts.com and the mobile app.

是的，我很高興你提出這個問題，它與效果行銷和貨運的壓力有關。因此，如果您將我們的業務視為一家電子商務公司，那麼盈利能力的兩個主要驅動力是績效行銷和貨運。顯然，這些始終都是挑戰。因此，我們認為最大的機會是利用我們在 carparts.com 和行動應用程式上獲得的流量。

And you are talking about 100 million users, you're talking about 3 million to 4 million customers that place orders every year on carparts.com. And how do we generate incremental revenue from these customers at a very high margin? And so, fee income and all these adjacent spaces, whether it's product protection, shipping protection, a membership loyalty program, eventually, potentially a credit card, wheels and tires, that's very high margin income that flows through the bottom line.

您談論的是 1 億用戶，每年有 300 萬到 400 萬客戶在 carparts.com 上下訂單。我們如何以非常高的利潤從這些客戶那裡獲得增量收入？因此，費用收入和所有這些相鄰空間，無論是產品保護、運輸保護、會員忠誠度計劃，最終可能是信用卡、車輪和輪胎，都是流經底線的非常高的利潤收入。

So, unfortunately, we, we have some challenges with our website historically. Now we are completely done. We've re platformed our website completely and now we can start rolling out new features every couple of weeks. So, we just launched product protection shipping protection, the wheels and tires. And over time, I think there is going to be a big opportunity for us to get incremental profitability with that fee income and you don't need as many transactions because it's pure margin.

因此，不幸的是，我們的網站歷史上遇到一些挑戰。現在我們已經完全完成了。我們已經完全重新建構了我們的網站平台，現在我們可以開始每隔幾週推出新功能。因此，我們剛剛推出了產品保護運輸保護，即車輪和輪胎。隨著時間的推移，我認為我們將有一個很大的機會透過這些費用收入獲得增量獲利能力，而且你不需要那麼多交易，因為它是純利潤。

Thanks guys, turn it over to the others. Good luck.

謝謝各位，轉給其他人。祝你好運。

Thank you, Ryan.

謝謝你，瑞安。

Thank you as a reminder to ask a question. (Operator Instructions)

謝謝你提醒我問一個問題。（操作員說明）

At this time, I am showing no for the question this concludes today's conference call. Thank you for participating, you may now disconnect.

目前，我對今天電話會議結束時提出的問題表示拒絕。感謝您的參與，您現在可以斷開連接。