RealReal Inc (REAL) 2023 Q3 法說會逐字稿

Good day and thank you for standing by. Welcome to The RealReal Q3, 2023 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would like to introduce your host for today's call, Caitlin Howe SVP of Finance. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 The RealReal 2023 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。我想介紹今天電話會議的主持人凱特琳·豪 (Caitlin Howe) 財務高級副總裁。請繼續。

Thank you, operator. Joining me today to discuss our results for the period ended September 30, 2023 our Chief Executive Officer, John Koryl; President and Chief Operating Officer, Rati Levsequen; and Chief Financial Officer, Robert Julian.

謝謝你，接線生。今天與我一起討論我們截至 2023 年 9 月 30 日的業績，我們的執行長 John Koryl；總裁兼營運長 Rati Levsequen；首席財務長羅伯特朱利安。

Before we begin, I would like to remind you that during today's call we will make forward-looking statements, which involve known and unknown risks and uncertainties. Our actual results may differ materially from those suggested in such statements. You can find more information about these risks, uncertainties and other factors that could affect our operating results in the company's most recent Form 10-K and subsequent quarterly reports on Form 10-Q.

在開始之前，我想提醒您，在今天的電話會議中，我們將做出前瞻性陳述，其中涉及已知和未知的風險和不確定性。我們的實際結果可能與此類聲明中建議的結果有重大差異。您可以在公司最新的 10-K 表格和隨後的 10-Q 表格季度報告中找到有關這些風險、不確定性和其他可能影響我們經營業績的因素的更多資​​訊。

Today's presentation will also include certain non-GAAP financial measures both historical and forward-looking, for which historical financial measures we have provided reconciliations to the most comparable GAAP measures in our earnings press release. In addition to the earnings press release, we issued a stockholder letter earlier today, both of which are available on our Investor Relations website. I would now like to turn the call over to John Koryl, Chief Executive Officer of The RealReal.

今天的演示還將包括某些歷史和前瞻性的非公認會計原則財務指標，對於這些歷史財務指標，我們在收益新聞稿中提供了與最具可比性的公認會計原則指標的調節表。除了收益新聞稿外，我們今天早些時候還發布了一封股東信，這兩封信都可以在我們的投資者關係網站上找到。我現在想將電話轉給 The RealReal 執行長 John Koryl。

Thanks, Caitlin, and welcome to our earnings call. Today, we reported financial results for the third quarter of 2023. Revenue and adjusted EBITDA exceeded the high end of our Q3 guidance range and GMV exceeded the midpoint of our guidance range. The third quarter of 2023 was our best quarter of adjusted EBITDA the company's IPO in 2019.

謝謝凱特琳，歡迎參加我們的財報電話會議。今天，我們報告了 2023 年第三季的財務業績。收入和調整後 EBITDA 超過了我們第三季指導範圍的高端，GMV 超過了我們指導範圍的中點。 2023 年第三季是我們公司 2019 年 IPO 調整後 EBITDA 最好的季度。

The improvement in our financial performance was largely driven by the consignor commission structure update we made late last year. Our strategic decision to reduce direct revenue and continued improvements in operational efficiency. If you recall, we overhauled our consignor rate card in November of 2022. This change helped us to do a couple of things. First, we were able to limit lower-priced items, which in turn reduced our variable costs and improved our contribution margin per item.

我們財務表現的改善很大程度上是由我們去年年底更新的發貨人佣金結構所推動的。我們的策略決策是減少直接收入並持續提高營運效率。如果你還記得，我們​​在 2022 年 11 月徹底修改了出貨人價目表。這項變更幫助我們做了幾件事。首先，我們能夠限制低價商品，從而降低了我們的變動成本並提高了每件商品的邊際貢獻。

Second, on the remaining portion of the lower value items and our mid value items, we increased our take rate. You can see the impact of this change flowing through our P&L. The result in Q3 was that we grew consignment revenue by 10%, but we purposely limited direct revenue, which over the course of the past few quarters, has dramatically shifted the mix of our business and driven significantly higher gross margins.

其次，對於剩餘部分的低價值商品和中價值商品，我們提高了採用率。您可以在我們的損益表中看到這項變更的影響。第三季的結果是，我們的寄售收入成長了 10%，但我們故意限制了直接收入，在過去的幾個季度裡，這極大地改變了我們的業務結構，並顯著提高了毛利率。

Finally, our operations team and our authentication centers delivered efficiencies through improved processes. In Q3 these actions combined to deliver a higher average order value, higher gross margin rate, higher gross profit dollars, lower variable costs, reduced company owned inventory and a significantly improved adjusted EBITDA results compared to the prior year.

最後，我們的營運團隊和認證中心透過改進流程提高了效率。在第三季度，這些行動相結合，實現了與前一年相比更高的平均訂單價值、更高的毛利率、更高的毛利、更低的可變成本、減少的公司自有庫存以及顯著改善的調整後EBITDA 表現。

Over the past few quarters, we have made significant changes to our business strategy and tactics, and we are seeing the benefits of these changes in our operational and financial results. I couldn't be more proud of this team for the fantastic work they have put together throughout this year.

在過去的幾個季度中，我們對業務策略和策略進行了重大改變，我們正在看到這些變化為我們的營運和財務表現帶來的好處。我為這個團隊今年所做的出色工作感到無比自豪。

In September, we announced that Robert Julian will step down from his role as CFO at the end of January or when a new CFO assumes the position. As a result, this will likely be Robert's last earnings call. I want to personally thank Robert for his many contributions to the business and wish him the best in his future. endeavors. I'm pleased to report that the search for his replacement is well underway.

9 月，我們宣布 Robert Julian 將在 1 月底或新任 CFO 上任時辭去 CFO 職務。因此，這可能是羅伯特最後一次的財報電話會議。我想親自感謝羅伯特對公司的許多貢獻，並祝福他未來一切順利。努力。我很高興地報告說，尋找他的繼任者的工作正在順利進行中。

Looking forward, we continue to project that we are on track to deliver positive adjusted EBITDA on a full year basis in 2024. In summary, our strategic shift to refocus on higher-margin portion of the consignment business is delivering significant progress in our results. Overall, I'm excited about the trajectory of our business. We are well positioned to capitalize on our consignment business model as we continue to be the Market Making leader in luxury resale. With that, let's open the call for questions.

展望未來，我們繼續預計，我們預計在 2024 年全年實現正調整 EBITDA。總而言之，我們重新專注於寄售業務的高利潤部分的策略轉變正在為我們的業績帶來重大進展。總的來說，我對我們業務的發展軌跡感到興奮。隨著我們繼續成為奢侈品轉售領域的做市領導者，我們已做好充分利用我們的寄售業務模式的準備。接下來，讓我們開始提問。

(Operator Instructions) Mark Altschwager. Mark, if you're -- please unmute your line. If your line is muted, please unmute, please rejoin using the call me feature. One moment for our next question. Marvin Fong, BTIG. Your line is now open.

（操作員說明）Mark Altschwager。馬克，如果您是—請取消線路靜音。如果您的線路已靜音，請取消靜音，然後使用「呼叫我」功能重新加入。請稍等一下我們的下一個問題。馬文·方，BTIG。您的線路現已開通。

Great. Good evening. Thanks for taking my question. I guess I'd just like to start with maybe just drilling a little bit deeper. Maybe just give us an update on the new revenue streams. So for example, I believe this past quarter, you tested, advancing some of those initiatives like increasing traffic and things like that? So maybe you could just kind of give us an update on where things stand in terms of advertising and maybe the partnership strategy?

偉大的。晚安.感謝您提出我的問題。我想我只想從鑽得更深一點開始。也許只是給我們提供有關新收入來源的最新資訊。例如，我相信上個季度，您進行了測試，推進了一些舉措，例如增加流量等？那麼也許您可以向我們介紹一下廣告方面的最新情況以及合作夥伴策略？

Yeah. Marvin, thanks for the question. I'll start with that one. From an advertising perspective in Q3, all we did was really we launched in July, and we did a lot of experimentation it's still not any material results in Q3 whatsoever, and we have yet to launch warranty return insurance as well we're looking more towards Q4 for both of those. And then what we've referred to in past conversations is virtual inventory that is actually not planned to launch or make any material impact until 2024. So if you really look at it, this is a story that is all 100% about our core business and in getting our core business where we want it to be and building from that position of strength.

是的。馬文，謝謝你的提問。我將從那個開始。從第三季的廣告角度來看，我們所做的只是在7 月推出，我們做了很多實驗，但在第三季仍然沒有任何實質成果，而且我們還沒有推出保固退貨保險，我們正在尋找更多兩者都朝著第四季邁進。然後我們在過去的談話中提到的是虛擬庫存，實際上直到2024 年才計劃推出或產生任何實質性影響。因此，如果你認真看一下，你會發現這是一個100% 關於我們核心業務的故事使我們的核心業務達到我們想要的目標，並以此為基礎繼續發展。

Terrific. And maybe just as for the follow-up, it looks like in the reflection of all the improvements you guys made in so ops and tech costs was down quite a bit, even though orders, I think was up sequentially a little bit, so it sounds like you're processing orders at a lower cost per order. Just could you just kind of drill down into that a little bit further? I mean, is there more that you can do there in terms of automation or whatnot? Or should we kind of think about you having kind of achieve your cost objectives there?

了不起。也許就像後續行動一樣，看起來你們在操作和技術成本方面所做的所有改進都下降了很多，儘管訂單，我認為連續上升了一點，所以它聽起來您正在以較低的每筆訂單成本處理訂單。能否進一步深入探討一下？我的意思是，在自動化或其他方面您還可以做更多的事情嗎？或者我們應該考慮一下您在那裡實現了您的成本目標嗎？

Hey Marvin, this is Robert. I'll take that one. And you're right, we have seen very considerable efficiency and productivity in our operations, including intact, we've invested a lot and new technology and automation and so on and you're seeing it in our results. I don't know if there's another huge step function improvement from where we're at. We're always looking for productivity and efficiency.

嘿馬文，這是羅伯特。我會接受那個。你是對的，我們在營運中看到了非常可觀的效率和生產力，包括完好無損，我們投入了大量新技術和自動化等，你在我們的結果中看到了這一點。我不知道與我們目前的情況相比，是否還有另一個巨大的階躍功能改進。我們始終追求生產力和效率。

We've talked about in the past that 3% to 5% of productivity is a reasonable range and we'll always be driving for that sort of in the spirit of continuous improvement. But you're right, we have seen good efficiency and productivity, and we've seen the results of the investments we make -- we've made.

我們過去曾討論過，3% 到 5% 的生產力是一個合理的範圍，我們將始終以持續改進的精神推動這一目標。但你是對的，我們已經看到了良好的效率和生產力，我們也看到了我們所做投資的結果——我們已經做出了投資。

Okay, great. Thanks for that, Robert, and good luck on your next endeavors.

好的，太好了。謝謝你，羅伯特，祝你接下來的努力好運。

Thanks, Mark.

謝謝，馬克。

Mark Altschwager, Baird.

馬克·阿爾茨瓦格，貝爾德。

Good afternoon. Can you hear me alright?

午安.你聽得到我說話嗎？

Sure, can.

當然可以。

Wonderful. Thanks for taking the question and Robert best wishes to you.

精彩的。感謝您提出問題，羅伯特向您致以最良好的祝愿。

Thanks, Mark.

謝謝，馬克。

So I wanted to ask about active buyer growth that did decelerate this quarter. I think close to flat or up 1% year-over-year. I know that's a metric that has been positive in recent quarters and cited as perhaps evidence that the retail buyer isn't slowing down.

因此，我想詢問本季確實放緩的活躍買家成長情況。我認為接近持平或年增 1%。我知道這個指標在最近幾季一直是正面的，並被引用為零售買家並未放緩的證據。

So I guess a couple of things one, are you surprised by the trends? And maybe can you elaborate any changes in buyer behavior that you're seeing. And two any implications regarding how you're planning 2024 and the level of profitability you expect to achieve given some of the shifts that are happening there?

所以我想有幾件事，第一，你對這些趨勢感到驚訝嗎？也許您可以詳細說明您所看到的買家行為的任何變化。考慮到目前正在發生的一些變化，您對如何規劃 2024 年以及您期望實現的獲利水準有何影響？

Yeah, hi, Mark. I'm going to take the first part of the answer, and I'll pass it along. So as far as active buyers are concerned, we did see a meaningful deceleration, but it was also expected to remember the changes we made in the back half of 2022, we're purposely decelerating our growth and shrinking kind of those unprofitable categories and those unprofitable units. So a lot of those items under $100 and some of that volume and category. So again, it was expected that we would shrink our active buyers and again, driven out of that low value.

是的，嗨，馬克。我將接受答案的第一部分，然後將其傳遞出去。因此，就活躍買家而言，我們確實看到了有意義的減速，但人們也希望記住我們在 2022 年下半年所做的改變，我們故意減速我們的成長並收縮那些不盈利的類別和那些不盈利的單位。許多這些商品的價格都在 100 美元以下，其中一些商品的數量和類別也都在 100 美元以下。因此，我們預計我們會再次減少活躍買家，並驅逐出如此低的價值。

Hey, Mark. And the other thing this is Caitlin. And the other thing that I would just add, one of the other metrics that we look at health of the business is just new members, right? And so that was up again, a million versus last quarter. And so we feel good like we still have momentum in the business. And so as Rati mentioned, the active buyer�s piece was something that we did expect in the near term.

嘿，馬克。另一件事是凱特琳。我要補充的另一件事是，我們關注業務健康狀況的其他指標之一就是新成員，對吧？因此，這一數字再次增加，比上季增加了 100 萬。因此，我們感覺很好，因為我們的業務仍然有動力。正如拉蒂所提到的，活躍買家的作品是我們在短期內所預期的。

And Mark, you did ask at the very end of your question about how that might impact our expectations for 2024. And I would just say that we continue to reiterate that we're on track to being positive adjusted EBITDA in 2024, all things considered.

馬克，你在問題的最後問到了這可能會如何影響我們對 2024 年的預期。我只想說，我們繼續重申，考慮到所有因素，我們預計在 2024 年實現正調整 EBITDA 。

And just add on a little more to that, we're looking at Caitlin's point the health of the business as far as the quality of those buyers, how much are they spending? What are they looking at mid and high value and so forth? There's other metrics we can look at there as far as health of the buyer.

再補充一點，我們正在研究凱特琳的觀點，即業務的健康狀況以及這些買家的質量，他們花了多少錢？他們看重什麼中高價值等？就買家的健康狀況而言，我們也可以查看其他指標。

Okay. Thank you. And a quick follow-up and apologies if I missed that. I was redialing in during of the first question, but just regarding the Q4 outlook, you essentially held EBITDA guide, while the GMV and sales are a bit below, what was implied in the prior outlook was hoping you could unpack that a bit more. And just in terms of the unchanged EBITDA, how much of that is some incremental cost efficiencies you're finding versus any shifts in revenue mix or other factors? Thanks again.

好的。謝謝。如果我錯過了，請快速跟進並道歉。我在第一個問題期間重撥，但就第四季度前景而言，您基本上持有EBITDA 指南，而GMV 和銷售額略低於，之前的展望中暗示的內容是希望您能進一步解開這一點。就未變更的 EBITDA 而言，與收入結構或其他因素的任何變化相比，您發現的增量成本效率有多少？再次感謝。

Hey Mark, this is Robert, I'll take that. And I would just say that our guide for Q4, there is a certain amount of uncertainty in the markets today. And there's a lot going on globally geopolitically with the economy. And so we're just being a little bit prudent and cautious, I would say and taking that all into account, there's nothing in our expected results for Q4 that indicate some kind of change in trend or any backtracking or anything else that might be negative other than just a little bit of uncertainty.

嘿馬克，這是羅伯特，我接受。我只想說，根據我們第四季的指南，當今市場存在著一定的不確定性。全球地緣政治和經濟方面正在發生很多事情。因此，我們只是有點謹慎和謹慎，我想說，考慮到所有這些，我們對第四季度的預期結果沒有任何跡象表明趨勢發生某種變化或任何回溯或任何其他可能負面的事情除了一點點不確定性之外。

And we'll see how things progress, but to just really, again, trying to be prudent in taking all of that into account. But the things that have improved our result and you saw in Q3 are expected to continue in their largely structural what you've seen on our results in Q3. And so there's nothing to be gleaned or nothing hidden in the in terms of the Q4 results and in terms of that progression going from Q3 to Q4.

我們將看到事情如何進展，但再次謹慎地考慮所有這些。但是，您在第三季度看到的那些改善了我們的結果的事情預計將繼續在很大程度上是結構性的，正如您在第三季度的結果中看到的那樣。因此，就第四季度的結果以及從第三季到第四季的進展而言，沒有什麼可收集的，也沒有什麼隱藏的。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Everyone, couple of quick questions from me. Congrats on the gross margin this quarter of 70%. That's great to see is that -- I know there's some seasonality, but now that you've kind of improve the efficiencies in the business and get the gross margins up there, is that a run rate we should use I think three months ago you said you thought we could get to the high 60s exiting the year. Just kind of curious how we should think about gross margin in the fourth quarter?

大家好，我問幾個簡單的問題。恭喜本季毛利率達 70%。很高興看到的是——我知道存在一些季節性，但現在你已經提高了業務效率並提高了毛利率，我認為三個月前我們應該使用運行率你說你認為今年我們可以達到60 多歲的高度。只是有點好奇我們該如何看待第四季的毛利率？

And then my second question is on another reiteration of the adjusted EBITDA profitable by next year. Just be helpful if there's any APIs, you can kind of give us the underpin that, whether it's AOV or gross margin or just anything to kind of help us understand what's underpinning that assumption that you guys continue to reiterate? Thank you.

我的第二個問題是再次重申明年調整後的 EBITDA 獲利。如果有任何 API，請提供協助，您可以為我們提供基礎，無論是 AOV 還是毛利率，或者只是任何可以幫助我們理解你們繼續重申的假設的基礎是什麼？謝謝。

Hey, Ike, this is Robert. I'll take that. Regarding the gross margin in Q3, as I mentioned earlier, that the changes we made are largely structural. And so we had a great card change back in November, a structural change. We have reiterated -- eliminating that direct business, and that is a permanent shift to a much lower proportion of our total revenue coming out of direct, which improved our mix and improved gross margin.

嘿，艾克，這是羅伯特。我會接受的。關於第三季的毛利率，正如我之前提到的，我們所做的改變主要是結構性的。因此，我們在 11 月進行了一次重大的卡片變更，這是一次結構性的變更。我們重申，取消直接業務，這是永久性地轉變為直接降低我們總收入的比例，從而改善了我們的組合併提高了毛利率。

We've also seen in Q3 beginning of the return to the margin within the direct business improving. And we had some quarters as we were trying to get rid of the work through the old inventory and work our inventory down. We were doing some pretty significant discounting of that direct inventory that direct owned inventory.

我們也看到第三季開始直接業務的利潤率有所改善。我們有一些季度試圖透過舊庫存擺脫工作並減少庫存。我們對直接擁有的庫存進行了一些相當大的折扣。

And we had some quarters where we had zero or even negative reported gross margin and what you've seen is a return to positive margin for the direct business, and that's also returned to normal and more structural. So the idea and I kind of think it's around or maybe I was a little bit coy about the potential of our gross margin and maybe we can scare a seven handle in terms of gross margin.

我們有一些季度報告的毛利率為零甚至為負，而您所看到的是直接業務的利潤率恢復為正，而且也恢復到正常且更具結構性。所以這個想法，我認為它已經存在了，或者也許我對我們毛利率的潛力有點含糊其辭，也許我們可以在毛利率方面嚇到七把柄。

And I think that this level of gross margin is the new normal and in fact, as we continue to see a little bit of improvement in the direct margin within that category, you may actually see a little bit of improvement in gross margin from this level. But I think it's largely something that you can model and expect in this low 70s range for gross margin.

我認為這個毛利率水準是新常態，事實上，隨著我們繼續看到該類別內的直接利潤率有所改善，您實際上可能會看到毛利率從這個水準上有一點改善。但我認為這在很大程度上是你可以在 70 多歲的低毛利率範圍內建模和預期的。

Yeah, I couldn't agree more Robert. And also as it relates to your 2024 question, Ike I think basically what you can do is take out -- take what you've seen from us in terms of gross margin and the efficiencies that we've introduced to the core business and say, okay, we've said low double-digit growth, so somewhere around 10% growth you add with that, the new revenue streams, you add with that virtual inventory that complements our core business so well, and that's where we are very pleased with the potential progress that we can make and deliver on that commitment.

是的，我完全同意羅伯特。而且，因為它涉及到你的 2024 年問題，艾克，我認為基本上你能做的就是拿出你從我們那裡看到的毛利率和我們引入核心業務的效率，然後說好吧，我們已經說過低兩位數的成長，所以你增加了大約10% 的成長，新的收入來源，你添加了虛擬庫存，它很好地補充了我們的核心業務，這就是我們非常高興的地方以及我們可以取得並兌現這項承諾的潛在進展。

Great, Thank you.

太好了謝謝。

Tom Nikic, Wedbush Securities.

韋德布希證券公司的湯姆‧尼基奇 (Tom Nikic)。

Hey everyone. Thanks for taking my question. So the changes you made to the model, I guess we're pretty much lapping it now. Do you think that you'll continue to see benefits from the changes? Like do you think you'll continue to see a pay grade move higher, you'll continue to see lower mix of the low-value items or now that we've kind of lapped it, we've kind of picked the low hanging fruit and then from here, you know further improvements is going to come from other initiatives.

嘿大家。感謝您提出我的問題。所以你對模型所做的改變，我想我們現在基本上已經完成了。您認為您會繼續從這些變化中看到好處嗎？就像你認為你會繼續看到工資等級上升一樣，你會繼續看到低價值物品的組合減少，或者現在我們已經完成了它，我們已經選擇了低懸的物品水果，然後從這裡開始，你知道進一步的改進將來自其他舉措。

Hey, Tom, this is Robert. Thanks for the question one thing I would say that embedded in your question is this idea that we are now lapping the changes that we've made, and I'm not sure that's quite accurate. So if you think about some of the changes we made, and I do think that even Q1 of 2024 is going to have no comparison to Q1 from this year, that there is still pretty big year-over-year change.

嘿，湯姆，這是羅伯特。感謝您提出的問題，我要說的是，您的問題中包含這樣一個想法，即我們現在正在迭代我們所做的更改，我不確定這是否相當準確。因此，如果你考慮我們所做的一些改變，我確實認為即使 2024 年第一季也無法與今年第一季相比，但同比變化仍然相當大。

We made the commission structure, the rate card change November 1. We've been working down our direct revenue as a percentage of revenue pretty consistently for the last few quarters, but not fully lapped on that either. And so I do think that there's still improvement and we talked about at the beginning this year the change that we have made, you're going to see really impact the second half of 2023.

我們在 11 月 1 日制定了佣金結構和價目表變更。在過去的幾個季度中，我們一直在相當一致地降低直接收入佔收入的百分比，但也沒有完全做到這一點。所以我確實認為仍然有進步，我們在今年年初討論了我們所做的改變，你將看到 2023 年下半年的真正影響。

And that has proven to be very true and accurate. And so the first half of 2023 still has some impact on a year-over-year basis going in the 2024. So you should expect some improvement with what I would call a rollover effect. I'm getting the full year effect of the things we made was that we did in 2023 reflected in the 2024 results and that'll come in Q1 and Q2. So there's still a little ways to go in terms of lapping that the entire impact of the changes we've made to the business model.

事實證明這是非常真實和準確的。因此，2023 年上半年仍會對 2024 年的同比產生一些影響。因此，您應該預期會出現一些改善，我稱之為滾動效應。我得到了我們在 2023 年所做的事情的全年影響，這些影響反映在 2024 年的結果中，這將在第一季和第二季出現。因此，要充分體現我們對業務模式所做的改變的整體影響，還有很長的路要走。

Thanks very much, and yeah, Robert best of luck in your future endeavors.

非常感謝，是的，羅伯特祝你未來一切順利。

Thank you, Tom.

謝謝你，湯姆。

Edward Yruma, Piper Sandler.

愛德華·尤魯瑪，派珀·桑德勒。

Hey, good afternoon, guys. Thanks for taking the question. I guess first now that you're pushing fewer units through the authentication facilities. Are you seeing any kind of dis-efficiencies as a result of that? And then just as a follow up back on the macro commentary were you actually observing softer trends quarter to date, which drove the guidance revision or is it simply just lots of stuff in the press and just a concern about holiday spends overall?

嘿，下午好，夥計們。感謝您提出問題。我想首先，您透過身份驗證設施推送的設備數量減少了。您是否發現因此導致任何效率低下的情況？然後，就像宏觀評論的後續行動一樣，您是否實際上觀察到了本季度迄今為止的疲軟趨勢，這推動了指引的修訂，或者只是媒體上的大量內容以及對整體假期支出的擔憂？

And then maybe one other final follow up. I know historically you have out of -- out of policy returns that kind of juiced the direct numbers post the holiday season. Have there been any changes to return policy? Thank you.

然後也許還有另一個最後的後續行動。我知道從歷史上看，你有過保單回報，這會增加假期後的直接數字。退貨政策有變動嗎？謝謝。

Right. I can start there, thank you. And so I'll start with your last question first out of policy returns, because that's the easy one and we're not seeing any changes there at this time, pretty flat to what we've seen in the past as far as historic numbers go. The first question on less units coming through are you seeing less efficiencies?

正確的。我可以從那裡開始，謝謝。因此，我首先從保單回報中的最後一個問題開始，因為這是一個簡單的問題，而且我們目前沒有看到任何變化，就歷史數據而言，與我們過去看到的情況相當平坦去。關於減少單位數量的第一個問題，您是否發現效率降低了？

No, we are not seeing less efficiencies in the OpEx, specifically of our operations, and I'm talking about and that's because a lot of what we did and a lot of the investment, like Robert mentioned earlier, was around accelerating operations and their efficiencies.

不，我們並沒有看到營運支出效率降低，特別是我們的營運效率，我所說的是因為我們所做的很多事情和大量投資，就像羅伯特之前提到的那樣，都是圍繞著加速運營及其效率。

Transportation, you've heard us talk about carrier diversification, all of that is coming into fruition, inventory control, making sure that we're getting tighter about each item coming through the process, also adding efficiency, such as making things a little bit tighter throughout the process. So we really feel good about the direction and the impact that we've had there with our investment.

運輸，你已經聽過我們談論承運人多元化，所有這些都正在取得成果，庫存控制，確保我們對流程中的每件物品都更加嚴格，同時還提高了效率，例如讓事情變得更簡單整個過程更加嚴格。因此，我們對投資的方向和影響感到非常滿意。

And then as far as on the macro piece, and I'll let Koryl and Robert add in as far as the prudent kind of guidance. So it's a little bit of a mix as far as what we're seeing on buyer behavior. First of all, I want to say supply is really healthy and good. We always said we were supply-constrained business that is solid right now, and we're feeling really good about where we're going.

然後就宏觀方面而言，我將讓 Koryl 和 Robert 補充謹慎的指導。因此，就我們所看到的買家行為而言，情況有些複雜。首先，我想說供應確實健康、良好。我們總是說我們的供應受限業務目前很穩固，而且我們對我們的發展方向感覺非常好。

The consumer is quite healthy in fine jewelry, watches, handbags that mark key products. And so that is good news, where we are seeing some softness is in ready-to-wear. So it's kind of a category specific answer and we're seeing the consumer be a little bit more promotion kind of sensitive to that. So we're watching for that. And again, nothing that we're alarmed about, but we think it's the right thing to do to be kind of prudent in our guidance.

消費者對精美珠寶、手錶、手袋等關鍵產品的消費相當健康。所以這是個好消息，我們看到成衣有些柔軟。所以這是一個特定類別的答案，我們看到消費者對此更加敏感。所以我們正在關注這一點。再說一次，我們沒有什麼值得擔心的，但我們認為在我們的指導中保持謹慎是正確的做法。

Yeah, I think it's a real opportunity. Honestly, Edward for us to like we were a lot more precise in the promotions we were running to juice supply. When we made the commission changes, we really saw a pullback not only in low value, but we also had some softness in some mid value. So we got a little bit promotional there. And we had a little bit of a blunt instrument approach.

是的，我認為這是一個真正的機會。老實說，愛德華讓我們喜歡我們在果汁供應方面的促銷活動更加精確。當我們進行佣金調整時，我們確實看到不僅低值出現回調，而且某些中位數也出現了一些疲軟。所以我們在那裡做了一些促銷。我們採取了一些生硬的手段。

We're a lot more surgical now talking to specific customers about specific actions. And with that capability, it was built in such a way that when we're building the personalization, we can use the exact same personalization capabilities to solicit demand. So you haven't heard us talk about demand much, not at all since I've been here, where we've always talked about being a supply-constrained business.

我們現在更外科手術式地與特定客戶談論特定行動。有了這種功能，它的建構方式使得當我們建立個人化時，我們可以使用完全相同的個人化功能來徵求需求。因此，自從我來到這裡以來，您就沒有太多地聽到我們談論需求，因為我們一直在談論成為供應受限的企業。

Now there are certain elements in certain categories and certain price points where we actually do have to adjust our prices, right, and where we do have to actually become a little bit more promotional. But the good news is we have a very large pool of members to draw from, and we can actually see a lot of their behavior even in the absence of transactions we can see how many people are obsessing certain products, how many people are visiting the site on a regular basis. We're observing all those macro and micro trends together to see what we have to do to make sure that we keep see the throughput going through the business at the right pace.

現在，在某些類別和某些價格點上，我們確實必須調整某些元素的價格，對吧，我們確實必須進行更多的促銷。但好消息是我們有一個非常大的會員庫可供借鑒，即使在沒有交易的情況下，我們實際上也可以看到他們的很多行為，我們可以看到有多少人痴迷某些產品，有多少人正在造訪定期網站。我們正在一起觀察所有這些宏觀和微觀趨勢，以了解我們必須採取哪些措施來確保我們始終以正確的速度看到業務的吞吐量。

It may just as a follow-up to that, does that mean you're adjusting kind of the payouts, I mean, not the grid obviously, but kind of what you initially expect to pay out to the consignors or?

這可能只是作為後續行動，這是否意味著您正在調整某種支出，我的意思是，顯然不是網格，而是您最初期望支付給發貨人的那種？

When we were having a promote -- when we had to be a little bit more promotional to drive supply earlier in the year, we had some promotional activity there. This is more on the actual buyer side now. So yeah, reinitiated a lapsed customer to get somebody to buy in a category that they haven't bought before. That's the type of promotions I'm talking about Edward.

當我們進行促銷時——當我們必須在今年早些時候進行更多促銷以推動供應時，我們在那裡進行了一些促銷活動。現在更多的是在實際的買方方面。所以，是的，重新啟動一位流失的客戶，讓某人購買他們以前從未購買過的類別。這就是我所說的愛德華的晉升類型。

Thanks so much.

非常感謝。

Ashley Owens from KeyBanc Capital Markets.

來自 KeyBanc 資本市場的 Ashley Owens。

Hi. Thanks for taking the question. Just wanted to ask about marketing dollars as they came down during the quarter, was this an intentional pullback or did you see some efficiencies? And then just any color on how we should think about the rate going forward would be helpful as well.

你好。感謝您提出問題。只是想問一下本季行銷費用的下降，這是故意的回撤還是您看到了一些效率？然後，任何關於我們應該如何考慮未來利率的顏色也會有所幫助。

Yeah. So thank you for that question. As far as marketing efficiencies, that wasn't intentional pullback in some of the areas, but again, driven out of efficiencies. So we were able to segment out our base again from low value, mid value, high value, consignors and customers really target them in the right areas. You have heard us talk about mid value and how that was thought looking at the supply specifically. So the marketing team is doing a great job to continue to find those efficiencies in general. I'm sorry. Was there a second part, a question?

是的。謝謝你提出這個問題。就行銷效率而言，這並不是某些領域的故意縮減，而是出於效率的考量。因此，我們能夠再次將我們的基礎從低價值、中價值、高價值中劃分出來，發貨人和客戶真正將他們定位在正確的領域。您已經聽過我們談論中位數以及如何具體考慮供應。因此，行銷團隊在持續提高整體效率方面做得非常出色。對不起。有第二部分嗎，有問題嗎？

Oh, yeah. Just how we should be thinking about the rate going forward?

哦耶。我們該如何考慮未來的利率？

As you know, we continue to offer, offer operationalize that and find efficiencies. So like any other departments, whether it's operations, marketing sales, we'll continue to find efficiencies there.

如您所知，我們將繼續提供、提供可操作性並提高效率。因此，與其他部門一樣，無論是營運部門還是行銷部門，我們都將繼續提高效率。

Okay, great. Thank you.

好的，太好了。謝謝。

(Operator Instructions) Rick Patel, Raymond James.

（操作員說明）Rick Patel、Raymond James。

Thank you, good afternoon. Can you talk about what guidance assumes for the size of the direct business in the fourth quarter and any thoughts on the right way to think about the size of the direct business in 2024? And to what degree you see it impacting GMV and revenue going forward?

謝謝你，下午好。您能否談談對第四季度直接業務規模的指導假設以及對思考 2024 年直接業務規模的正確方法有何想法？您認為它對未來 GMV 和收入的影響有多大？

Rick, this is Robert. I'll take that one. You saw in Q3 that our direct revenue as a percent of total revenue was in the low teens and to be honest, that's gotten down to a pretty low level. As we have mentioned before, there will always be some direct versus there's a policy returns, that drive direct business, there's found inventory and sometimes a great direct business.

瑞克，這是羅伯特。我會接受那個。您在第三季看到，我們的直接收入佔總收入的百分比只有十幾歲，說實話，這已經下降到相當低的水平。正如我們之前提到的，總是會有一些直接的回報，而不是保單回報，這會推動直接業務，會發現庫存，有時還會有很棒的直接業務。

We have more or less stop the open-to-buy generally, although there are some very specific items, very high demand items, whether it's Rolex watches or Hermes handbags or so on, we may continue to do some purchases. And so there will always be some direct revenue, but this current level in the low teens is probably getting to be around the new normal. And so I think what you should expect is something very similar to that in Q4 and also going into next year.

我們通常或多或少都停止了開放購買，雖然有一些非常具體的物品，需求量非常大的物品，無論是勞力士手錶還是愛馬仕手袋等等，我們可能會繼續做一些購買。因此，總是會有一些直接收入，但目前的青少年水平可能會接近新常態。所以我認為你應該期待的是與第四季非常相似的情況，並且也會持續到明年。

And then you touched on certain categories that are doing well, I think you mentioned fine jewelry, handbags and watches. Can you touch on your supply of inventory up for these categories that are working? I guess how do you feel about higher position to monetize the demand that's working?

然後您談到了某些表現良好的類別，我想您提到了高級珠寶、手袋和手錶。您能否談談這些正在運作的類別的庫存供應？我猜你對透過更高的職位來將有效的需求貨幣化有何看法？

You know, the good news about us is that we're quite dynamic when it comes to supply, our sales team does a really nice job of bringing in the supply that the merchants need or the customers need at the right time. We have definitely changed the way we're looking at supply versus unit, like we've talked about in the past to retail value.

您知道，關於我們的好消息是，我們在供應方面非常有活力，我們的銷售團隊在適當的時間引入商家需要或客戶需要的供應方面做得非常好。我們確實改變了看待供應與單位的方式，就像我們過去談到的零售價值一樣。

So that quality, that higher end product, the sales team gets more points for, for example. So you know, as far as watches are concerned, handbags, jewelry, quite healthy when I look at again made in high value products year over year as far as inventory to sell. So the team does feel good about supply through the end of the year. So that's puts us at good place in Q1 as well.

例如，銷售團隊可以透過品質、高端產品獲得更多積分。所以你知道，就手錶、手袋、珠寶而言，當我再次審視高價值產品的年復一年銷售庫存時，它們是相當健康的。因此，團隊確實對今年年底的供應感到滿意。因此，這也使我們在第一季處於有利位置。

Thanks very much, all the best.

非常感謝，祝一切順利。

And thank you. And I'm showing no further questions. I would now like to turn the call back over to John Koryl for closing remarks.

謝謝你。我沒有再提出任何問題。現在我想將電話轉回給約翰·科里爾（John Koryl），他將發表結束語。

Thank you and thank you for joining us today. Before closing the call. I want to take a moment to thank our team at The RealReal. I am humbled to work with such a dedicated, passionate and professional workforce. Thank you for your daily efforts to fulfill our mission of sustainability, live out our values of excellence and move our business forward. I'd also like to thank our more than 34 million members that are joining us on our mission to extend the life of luxury and make fashion more sustainable. Thank you.

謝謝您，也謝謝您今天加入我們。在結束通話之前。我想花點時間感謝我們 The RealReal 的團隊。我很榮幸能與如此敬業、熱情和專業的員工一起工作。感謝您每天為履行我們的永續發展使命、實踐我們卓越的價值觀並推動我們的業務向前發展所做的努力。我還要感謝我們超過 3,400 萬名會員，他們加入我們的行列，共同履行延長奢侈品壽命、讓時尚更永續的使命。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。