(RENT) 2023 Q1 法說會逐字稿

Welcome to the Rent the Runway's First Quarter 2023 Earnings Results Conference Call.

歡迎參加 Rent the Runway 2023 年第一季度盈利結果電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded. I would like now to turn the call over to Rent the Runway's General Counsel, Cara Schembri. Thank you. You may begin.

提醒一下，本次會議正在錄製中。我現在想將電話轉給 Rent the Runway 的總法律顧問卡拉·施姆布里 (Cara Schembri)。謝謝。你可以開始了。

Good afternoon, everyone, and thanks for joining us to discuss Rent the Runway's first quarter 2023 results. Joining me today to discuss our results are CEO and Co-Founder, Jennifer Hyman; and CFO, Sid Thacker.

大家下午好，感謝您與我們一起討論 Rent the Runway 2023 年第一季度的業績。今天與我一起討論我們的業績的是首席執行官兼聯合創始人 Jennifer Hyman；首席財務官席德·撒克 (Sid Thacker)。

During this call, we will make references to our Q1 '23 earnings presentation, which can be found in the Events and Presentations section of our Investor Relations website.

在本次電話會議中，我們將參考我們 23 年第一季度的收益演示，該演示可以在我們投資者關係網站的活動和演示部分找到。

Before we begin, we would like to remind you that this call will include forward-looking statements. These statements include our future expectations regarding financial results, guidance and targets, market opportunities and our growth. These statements are subject to various risks, uncertainties and assumptions that could cause our actual results to differ materially.

在開始之前，我們想提醒您，本次電話會議將包含前瞻性陳述。這些陳述包括我們對財務業績、指導和目標、市場機會和增長的未來預期。這些陳述受到各種風險、不確定性和假設的影響，可能導致我們的實際結果出現重大差異。

These risks, uncertainties and assumptions are detailed in this afternoon's press release as well as our filings with the SEC, including our Form 10-Q that will be filed in the next few days. We have no obligation to revise or update any forward-looking statements or information except as required by law.

這些風險、不確定性和假設在今天下午的新聞稿以及我們向 SEC 提交的文件中進行了詳細說明，其中包括我們將在未來幾天提交的 10-Q 表格。除法律要求外，我們沒有義務修改或更新任何前瞻性陳述或信息。

During this call, we will also reference certain non-GAAP financial information. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for financial information that's presented in accordance with GAAP. Reconciliations of GAAP to non-GAAP measures can be found in our press release, slide presentation posted on our investor website and our SEC filings. And with that, I'll turn it over to Jen.

在本次電話會議中，我們還將參考某些非 GAAP 財務信息。此非 GAAP 財務信息的呈現不應被孤立地考慮或作為根據 GAAP 呈現的財務信息的替代品。 GAAP 與非 GAAP 衡量標準的調節可以在我們的新聞稿、投資者網站上發布的幻燈片演示以及我們向 SEC 提交的文件中找到。有了這個，我會把它交給 Jen。

Thanks, Cara, and thanks, everyone, for joining. As I shared on our last call, our 2023 growth strategy is focused on improving our customer experience. To do that, we are focused on delivering more value to customers quarter-over-quarter in the areas that matter to them most.

謝謝卡拉，也謝謝大家的加入。正如我在上次電話會議中分享的那樣，我們的 2023 年增長戰略的重點是改善我們的客戶體驗。為此，我們致力於在對客戶最重要的領域逐季度為客戶提供更多價值。

It's an exciting time for Rent the Runway. We're delivering tangible momentum in executing against our customer-centric vision as evidenced by our strong Q1 results. We delivered a new record active subscriber count of 145,220, representing 15% growth quarter-over-quarter, while posting a beat on the top and bottom line.

對於 Rent the Runway 來說，這是一個激動人心的時刻。我們在執行以客戶為中心的願景方面正在提供切實的動力，第一季度的強勁業績就證明了這一點。我們的活躍用戶數量達到 145,220 人，創下新紀錄，環比增長 15%，同時實現了營收和利潤的增長。

Revenue came in at $74.2 million, a 10% increase year-over-year. We continue to hold our gross margin above 40% at 42.3% and posted a strong adjusted EBITDA margin of 6.1%, well above guidance.

收入為 7,420 萬美元，同比增長 10%。我們的毛利率繼續保持在 40% 以上，達到 42.3%，調整後的 EBITDA 利潤率為 6.1%，遠高於指導值。

I'm particularly proud of the progress on profitability metrics paired with strong subscriber growth because I believe that it demonstrates our ability to manage costs effectively while making important investments into the customer experience. We have conviction that our subscriber growth and margins in Q1 provide a strong foundation towards the goals we shared last quarter, which we are reiterating now, growing ending active subscribers by over 25% and reducing cash consumption by almost 50% in fiscal 2023.

我對盈利指標的進步和用戶的強勁增長感到特別自豪，因為我相信這表明我們有能力有效管理成本，同時對客戶體驗進行重要投資。我們堅信，第一季度的用戶增長和利潤率為實現我們上季度共享的目標奠定了堅實的基礎，我們現在重申這一目標，即在 2023 財年將最終活躍用戶增加 25% 以上，並將現金消耗減少近 50%。

We have confidence in these goals because of the laser focus we're maintaining on our customer. Our team has demonstrated agility and is focused on execution. Our customers are beginning to feel a real difference, and we're going to spend much of this call detailing some of the key improvements we've made so far this year. Having said that, I also want to emphasize that transforming our customer experience is not a 1-quarter endeavor. We will be updating you on impact over the next several quarters. Our goal is to maximize customer love and retention, and we'll do that by making their experience easier, more valuable and more fun.

我們對這些目標充滿信心，因為我們始終專注於客戶。我們的團隊表現出敏捷性並專注於執行。我們的客戶開始感受到真正的不同，我們將在這次電話會議上花大量時間詳細介紹我們今年迄今為止所做的一些關鍵改進。話雖如此，我還想強調，改變我們的客戶體驗不是一個季度的努力。我們將在接下來的幾個季度向您通報影響的最新情況。我們的目標是最大限度地提高客戶喜愛度和保留率，為此我們將讓他們的體驗變得更輕鬆、更有價值、更有趣。

We'll know that we're successful if we inspire more women to buy less clothes and rent instead. We see that the market for fashion rental is growing all over the world and believe our opportunity has never been greater.

如果我們激勵更多女性減少購買衣服並改為租房，我們就會知道我們是成功的。我們看到世界各地的時裝租賃市場正在不斷增長，並相信我們的機會從未如此巨大。

Now I want to talk to you about what our team has already accomplished related to our 3 customer-centric strategic pillars, which are: one, getting her the inventory she wants when she wants it; two, providing an efficient and easy-to-use experience; and three, offering best-in-class product discovery. These pillars are key due to the frequency with which our subscribers use Rent the Runway. And this is what we have to get more and more right over time.

現在我想和大家談談我們的團隊在以客戶為中心的三大戰略支柱方面已經取得的成就，它們是：第一，在她需要的時候為她提供她想要的庫存；第二，在她需要的時候為她提供她想要的庫存；二、提供高效易用的體驗；第三，提供一流的產品發現。由於我們的訂閱者使用 Rent the Runway 的頻率，這些支柱非常關鍵。隨著時間的推移，這就是我們必須做得越來越正確的事情。

As a reminder, the majority of our team is focused on customer-facing initiatives this year. We kicked off the year by permanently adding an extra item to every shipment of our subscription programs, and we've been happy with the results of our launches since then. One, on inventory she wants when she wants it. In support of getting her the inventory she wants when she wants it, inventory availability continues to be a top priority. We know our customer is here for the fashion and her ability to access it is one of the key ways she evaluates the value of her subscription.

提醒一下，我們團隊的大多數成員今年都專注於面向客戶的舉措。我們通過在訂閱計劃的每批發貨中永久添加一個額外的項目來拉開新的一年，從那時起我們對我們的發布結果感到滿意。第一，庫存是她想要的時候就想要的。為了支持她在需要時獲得所需的庫存，庫存可用性仍然是重中之重。我們知道我們的客戶來這裡是為了時尚，她獲取時尚的能力是她評估訂閱價值的關鍵方式之一。

We've expanded and grown an ongoing strategy to acquire more of the styles our customers are telling us they want in real time. Because of real-time data signals we get on actual and unmet demand, we are one of the few retailers that is structured to chase and refresh inventory mid-season. This gives our buying team significant leverage on pricing. We believe the next step in this effort will be felt deeply by our customers in the back half of the year as we are focused on significantly increasing depth in the key styles and trends we know our customers want.

我們擴展並發展了一項持續戰略，以獲取更多客戶實時告訴我們他們想要的款式。由於我們獲得了有關實際和未滿足需求的實時數據信號，我們是為數不多的在季中追逐和刷新庫存的零售商之一。這使我們的採購團隊在定價方面具有重要的影響力。我們相信，我們的客戶將在今年下半年深刻感受到這一努力的下一步，因為我們專注於顯著提高我們知道客戶想要的關鍵款式和趨勢的深度。

Next, I want to share some of the actions we've taken in Q1 to make Rent the Runway easier to use for our customers. In early May, we launched a luxury style concierge service to help new subscribers onboard with Rent the Runway more seamlessly. Rent the Runway Concierge provides free one-on-one interaction via text with our customer service team to help new subscribers get the most out of their membership from building their first shipment to styling tips or solving a fit or shipping issue.

接下來，我想分享我們在第一季度採取的一些行動，以使我們的客戶更容易使用 Rent the Runway。 5 月初，我們推出了豪華禮賓服務，幫助新訂戶更無縫地使用 Rent the Runway。 Rent the Runway 禮賓服務通過短信與我們的客戶服務團隊提供免費的一對一互動，幫助新訂閱者充分利用其會員資格，從構建第一批貨物到造型技巧或解決合身或運輸問題。

We believe this program has the potential to be an important retention driver. Our customers have incredibly busy lives. 90% of them work, 1/3 have kids and 85% socialize more than twice a week. So the easier we make the experience, the more it can be cemented into her life.

我們相信該計劃有潛力成為重要的保留驅動力。我們的客戶過著極其忙碌的生活。其中 90% 的人工作，1/3 的人有孩子，85% 的人每週社交次數超過兩次。因此，我們讓這種體驗越容易，就越能融入她的生活。

As we've shared previously, we've enjoyed strong long-term customer loyalty, but we also know that the majority of subscribers who churn do so in their first 90 days. By providing a concierge experience in her early months of membership, we aim to delight her with an effortless introduction to rental. We think this will improve retention and make her a loyal customer sooner. You'll see us integrate this offering more deeply into our product experience in the quarters to come.

正如我們之前所分享的，我們享有強大的長期客戶忠誠度，但我們也知道大多數訂閱者在前 90 天內就會流失。通過在她成為會員的最初幾個月提供禮賓服務，我們的目標是輕鬆地介紹租賃服務，讓她感到高興。我們認為這將提高保留率並讓她更快成為忠實的客戶。在接下來的幾個季度中，您將看到我們將此產品更深入地集成到我們的產品體驗中。

Next, we're making our site and app faster. As an example, we drove a 48% improvement in average load time on a key entry point into our conversion funnel, which resulted in an 89% lift in conversion on that page.

接下來，我們將使我們的網站和應用程序變得更快。舉例來說，我們將轉化渠道關鍵入口點的平均加載時間縮短了 48%，從而使該頁面的轉化率提高了 89%。

Last, we made 2 improvements to our delivery and returns experience that directly speak to the premium level of service Rent the Runway offers. One, we launched a new tool to drive further adoption of At-Home Pickup, which has led to an increase in in-market adoption of the service by nearly 4 percentage points from the end of Q4 '22 to the end of Q1 '23.

最後，我們對送貨和退貨體驗進行了兩項改進，這直接體現了 Rent the Runway 提供的優質服務水平。首先，我們推出了一款新工具來推動上門提貨的進一步採用，這使得該服務的市場採用率從 22 年第 4 季度末到 23 年第 1 季度末增加了近 4 個百分點。

Second, last week, we launched Saturday delivery to more than half of our subscribers, a big unlock for customers who can now receive their deliveries on the weekend. We plan to continue to enhance all aspects of our experience to make it as easy as possible for customers to navigate their subscription.

其次，上週，我們向超過一半的訂戶推出了周六送貨服務，這對於現在可以在周末收到送貨服務的客戶來說是一個很大的解鎖。我們計劃繼續增強我們體驗的各個方面，讓客戶盡可能輕鬆地瀏覽他們的訂閱。

Finally, I'm going to share recent accomplishments related to our strategic pillar on best-in-class product discovery, where our goal is to be even better than a typical retailer and how our customers find the inventory they love.

最後，我將分享與我們在一流產品發現方面的戰略支柱相關的最新成就，我們的目標是比典型的零售商更好，以及我們的客戶如何找到他們喜歡的庫存。

First, we shared during our last call that we launched Rent the Look and similar items in late March to enable customers to easily find a complete outfit or a visually similar option based on the styling we provide on our product display pages. The introduction of these features has increased member engagement, particularly when members landed on pages with unavailable styles. Now she served similar substitute items through this feature directly on the product display page, leading to a 34% increase in engagement with substitute items among members.

首先，我們在上次電話會議中表示，我們在 3 月底推出了“Rent the Look”和類似商品，以便客戶能夠根據我們在產品展示頁面上提供的樣式輕鬆找到完整的服裝或視覺上相似的選項。這些功能的引入提高了會員參與度，特別是當會員登陸樣式不可用的頁面時。現在，她通過此功能直接在產品展示頁面上提供類似的替代品，導致會員對替代品的參與度增加了 34%。

Last and something I'm personally very passionate about, we're excited to announce that in the coming weeks, we plan to launch an AI-driven search data. This will allow customers to search common fashion terms or use cases and is intended to make searching our sites more intuitive and natural. For example, she will be able to write Miami Vibes, Clambake in Nantucket or tropical motif and our AI-powered discovery engine will serve her relevant inventory. We see this as a first and important step in Rent the Runway using AI models to improve our product experience, and we expect to build on this launch in the months and quarters to come.

最後，也是我個人非常熱衷的事情，我們很高興地宣布，在未來幾週內，我們計劃推出人工智能驅動的搜索數據。這將允許客戶搜索常見的時尚術語或用例，旨在使我們的網站搜索更加直觀和自然。例如，她將能夠編寫《Miami Vibes》、《Clambake in Nantucket》或熱帶主題，而我們的人工智能驅動的發現引擎將為她的相關庫存提供服務。我們認為這是 Rent the Runway 使用 AI 模型來改善我們的產品體驗的第一步，也是重要的一步，我們預計在未來幾個月和幾個季度內將在此基礎上再接再厲。

We believe that AI has the potential to directly support our 2023 strategy of delivering more value to the customer and leapfrog ahead of the experience that we deliver today. Fashion as an industry serves to benefit from AI to narrow the endless aisle problem of e-commerce. But we believe that Rent the Runway is uniquely positioned to be a significant beneficiary of AI because of, one, the frequency with which she interacts with our product; and two, our unique and rich data catalog, which includes her frequent site behavior and all of the data we gathered from her on fit, inventory quality occasion and more every time she rents.

我們相信，人工智能有潛力直接支持我們的 2023 年戰略，即為客戶提供更多價值，並超越我們今天提供的體驗。時尚作為一個行業可以從人工智能中受益，以縮小電子商務無盡的過道問題。但我們相信，Rent the Runway 具有獨特的優勢，能夠成為人工智能的重要受益者，因為，一是她與我們產品互動的頻率；二是她與我們的產品互動的頻率。第二，我們獨特且豐富的數據目錄，其中包括她頻繁的網站行為以及我們從她那裡收集的所有數據，包括她每次租賃時的穿著情況、庫存質量情況等。

The majority of subscribers are reviewing 10-plus items per month. This data set gives us a head start on any future innovation we'll endeavor in the AI space. We also believe that our opportunity in AI is bigger than product discovery. We are exploring how it can impact our concierge experience and onboarding to deliver an even more personalized experience to enhance customer loyalty. And we have the team to do this.

大多數訂閱者每月都會評論 10 多個項目。該數據集使我們在人工智能領域未來的任何創新方面都處於領先地位。我們還相信，我們在人工智能領域的機會比產品發現更大。我們正在探索它如何影響我們的禮賓體驗和入職體驗，以提供更加個性化的體驗，從而提高客戶忠誠度。我們有團隊來做到這一點。

We've been harnessing machine learning for a decade, employing data to power personalization within our consumer experience, our operations and across our business. So we're looking forward to continuing to build this muscle at Rent the Runway. I'm truly energized about the progress we've made so far this year and everything that lies ahead. Most of all, I'm looking forward to continuing to deliver for our customers.

十年來，我們一直在利用機器學習，利用數據在我們的消費者體驗、運營和整個業務中實現個性化。因此，我們期待著在 Rent the Runway 上繼續增強這一力量。我對今年迄今為止所取得的進展以及未來的一切感到非常興奮。最重要的是，我期待著繼續為我們的客戶提供服務。

And with that, I'll turn it over to Sid.

有了這個，我會把它交給 Sid。

Thanks, Jen, and thanks again, everyone, for joining us. Since our 2021 IPO, investors have asked us 2 key questions. First, can Rent the Runway grow? Second, how profitable can the company be?

謝謝 Jen，再次感謝大家加入我們。自 2021 年 IPO 以來，投資者向我們提出了 2 個關鍵問題。首先，Rent the Runway 能增長嗎？第二，公司能盈利多少？

Our first quarter results demonstrate solid progress on both fronts. As Jen outlined, we believe deeply that the customer experience improvements we are making are key to driving improved retention and faster growth. At just over 145,000 ending Active Subscribers at the end of Q1, we are making progress to 25% plus active subscriber growth in fiscal 2023. Our path to profitability is focused on free cash flow.

我們第一季度的業績表明在這兩個方面都取得了堅實的進展。正如 Jen 所概述的那樣，我們堅信，我們正在做出的客戶體驗改進是推動提高保留率和更快增長的關鍵。截至第一季度末，活躍用戶數量略高於 145,000 名，我們的目標是 2023 財年活躍用戶增長率達到 25% 以上。我們的盈利之路側重於自由現金流。

Last quarter, we outlined the almost 50% reduction in cash consumption we expect for fiscal '23. We believe that our margins in Q1 provide a strong foundation for progress towards that goal. Let me now review our Q1 '23 results.

上個季度，我們預計 23 財年現金消耗將減少近 50%。我們相信，第一季度的利潤為實現這一目標奠定了堅實的基礎。現在讓我回顧一下 23 年第一季度的結果。

We ended Q1 with 145,220 ending Active Subscribers, up 7.6% year-over-year. Average Active Subscribers during the quarter were 135,966, versus 125,119, an increase of 8.7% year-over-year. Total revenue for the quarter was $74.2 million, up 10.6% year-over-year. Subscription and reserve rental revenue was $66.8 million versus $61.4 million last year, an increase of 8.8%.

截至第一季度末，我們的活躍訂閱者數量為 145,220 名，同比增長 7.6%。該季度的平均活躍訂閱者數量為 135,966 人，而去年同期為 125,119 人，同比增長 8.7%。該季度總收入為 7420 萬美元，同比增長 10.6%。訂閱和儲備租金收入為 6,680 萬美元，而去年為 6,140 萬美元，增長 8.8%。

As we discussed last quarter, we did see weakness in our reserve business in Q1. Subscription ARPU for the quarter was slightly higher year-over-year, primarily due to the impact of the April '22 price increase, partially offset by changes in program mix and add-on rates. Other revenue was $7.4 million versus $5.7 million last year, growing 29.8% year-over-year due primarily to increased purchases of rental products.

正如我們上季度討論的那樣，我們確實看到第一季度儲備業務的疲軟。本季度的訂閱 ARPU 同比略有上升，主要是由於 22 年 4 月價格上漲的影響，但節目組合和附加費率的變化部分抵消了這一影響。其他收入為 740 萬美元，而去年為 570 萬美元，同比增長 29.8%，這主要是由於租賃產品購買量的增加。

Note that the timing of these purchases can vary from quarter-to-quarter, depending on the assortment available for sale. Other revenue represented approximately 10% of revenue versus 8.5% of revenue in Q1 '22. Fulfillment costs were $21.9 million in Q1 '23 versus $22.9 million in Q1 '22. Fulfillment costs as a percentage of revenue improved from 34.1% of revenue in Q1 '22 to 29.5% of revenue in Q1 '23. As a reminder, Q1 '22 results did not benefit from our April '22 price increase.

請注意，這些購買的時間可能會因季度而異，具體取決於可供銷售的品種。其他收入約佔收入的 10%，而 22 年第一季度則佔收入的 8.5%。 23 年第一季度的履行成本為 2190 萬美元，而 22 年第一季度的履行成本為 2290 萬美元。配送成本佔收入的百分比從 22 年第一季度收入的 34.1% 提高到 23 年第一季度收入的 29.5%。提醒一下，22 年第一季度的業績並未受益於我們 22 年 4 月的提價。

We were able to offset the impact of higher shipped units per order on account of a 5 Item launch with efficiencies in both processing and transportation costs. Gross margins were 42.3% in Q1 '23 versus 33.5% in Q1 '22. Q1 '23 gross margins reflect the impact of the April '22 price increase, the fulfillment cost improvements discussed above as well as lower product depreciation due to the continued impact of product acquisition mix changes towards more efficient channels.

由於推出了 5 種商品，我們能夠抵消每筆訂單發貨數量增加的影響，同時提高了加工和運輸成本。 23 年第一季度的毛利率為 42.3%，而 22 年第一季度的毛利率為 33.5%。 23 年第一季度的毛利率反映了 22 年 4 月價格上漲、上述履行成本改善的影響，以及由於產品採購組合向更高效渠道轉變的持續影響而導致的產品折舊降低。

As expected, gross margins were lower than Q4 '22 levels due to seasonally higher product acquisition we typically see in Q1 and Q3. Operating expenses were 5% lower year-over-year and about 13% lower year-over-year before stock-based compensation, primarily due to the favorable impact of our 2022 restructuring plan. We continue to expect about $25 million in restructuring-related savings in fiscal '23 compared to the Q2 '22 run rate.

正如預期的那樣，由於我們通常在第一季度和第三季度看到季節性產品採購量增加，毛利率低於 22 年第四季度的水平。運營費用同比下降 5%，扣除股票補償後同比下降約 13%，這主要是由於我們 2022 年重組計劃的有利影響。與 22 年第二季度的運行率相比，我們繼續預計 23 財年與重組相關的節省將達到約 2500 萬美元。

Total operating expenses, including technology, marketing, G&A and stock-based compensation were 66% of revenue versus 77% of revenue last year. Adjusted EBITDA for the quarter was $4.5 million or 6.1% of revenue versus negative $8.8 million and negative 13.1% of revenue in the prior year. Adjusted EBITDA margins reflected strong cost discipline that allowed us to offset investments needs to improve customer experience.

總運營支出（包括技術、營銷、一般管理費用和股票薪酬）佔收入的 66%，而去年這一比例為 77%。本季度調整後 EBITDA 為 450 萬美元，佔收入的 6.1%，而上一年為負 880 萬美元，佔收入的 13.1%。調整後的 EBITDA 利潤率反映了嚴格的成本紀律，使我們能夠抵消改善客戶體驗的投資需求。

Free cash flow was negative $12 million in Q1 '23, versus negative $28 million in Q1 '22. We continue to expect significant improvement in cash consumption in fiscal '23.

23 年第一季度自由現金流為負 1200 萬美元，而 22 年第一季度為負 2800 萬美元。我們繼續預計 23 財年現金消耗將顯著改善。

Let's turn to guidance. For the full year, we continue to expect revenue of between $320 million to $330 million and ending Active Subscriber growth in excess of 25%. We are also reiterating our full year adjusted EBITDA margin guidance of 7% to 8% of revenue. Our guidance on cash flow remains unchanged, and we expect to reduce cash consumption by almost 50% to below $50 million. We are updating our fiscal 2023 product spend expectations to $74 million to $76 million from $69 million to $72 million as we are seeing increased opportunities to purchase high-quality styles from top brands at deep discounts.

讓我們轉向指導。我們繼續預計全年收入將在 3.2 億至 3.3 億美元之間，最終活躍訂戶增長將超過 25%。我們還重申全年調整後 EBITDA 利潤率指引為收入的 7% 至 8%。我們對現金流的指導保持不變，我們預計現金消耗將減少近 50%，至 5000 萬美元以下。我們將 2023 財年的產品支出預期從 6900 萬美元至 7200 萬美元更新為 7400 萬美元至 7600 萬美元，因為我們發現以大幅折扣購買頂級品牌高品質款式的機會越來越多。

Finally, there is no change to our expectation for gross margins to be slightly lower on a year-over-year basis. We expect Q2 revenue to be between $77 million and $79 million. This represents about 5% growth sequentially versus Q1 '23, and approximately 2% growth versus Q2 '22 at the midpoint of the guidance range.

最後，我們對毛利率同比略低的預期沒有變化。我們預計第二季度收入將在 7700 萬美元至 7900 萬美元之間。這意味著與 2023 年第一季度相比連續增長了約 5%，與 22 年第二季度相比增長了約 2%，處於指導範圍的中點。

Let me talk about the factors affecting Q2. First, as some of you may have noticed, we are experimenting with being less promotional with our new customer offer pricing. We think this will improve retention and allow us to invest in improving the customer experience. We do expect these experiments to reduce acquisitions in the short term, especially in our lower price program. As a result, we expect lower ending Active Subscribers in Q2 versus Q1. We think these are the right decisions for our customers and have factored these changes into our full year guidance of 25% plus subscriber growth.

先說一下影響Q2的因素。首先，正如你們中的一些人可能已經註意到的，我們正在嘗試減少新客戶報價的促銷力度。我們認為這將提高保留率，並使我們能夠投資於改善客戶體驗。我們確實預計這些實驗會在短期內減少收購，特別是在我們的較低價格計劃中。因此，我們預計第二季度的活躍訂戶數量將低於第一季度。我們認為這些對於我們的客戶來說是正確的決定，並將這些變化納入我們全年 25% 以上的用戶增長指導中。

Second, both sequential and year-over-year growth are expected to be negatively impacted by the decline in the reserve business. Finally, we also expect other revenues to be relatively flat quarter-over-quarter due to higher units sold in the first quarter of this year.

其次，預計環比和同比增長都將受到儲備業務下降的負面影響。最後，由於今年第一季度銷量增加，我們還預計其他收入將環比持平。

Q2 '23 adjusted EBITDA margins are expected to be between 7% to 8% of revenue as we expect the higher revenue base versus Q1 to improve leverage on our fixed cost base.

23 年第二季度調整後的 EBITDA 利潤率預計將在收入的 7% 至 8% 之間，因為我們預計收入基礎高於第一季度將提高我們固定成本基礎的槓桿率。

I'd like to end by saying that we remain confident in the trajectory of our business, and we have a very clear sense of how to improve the customer experience. The second half of fiscal '23 should see us make significant progress across inventory, onboarding and product initiatives. We believe these changes will be noticeable to our customers and make it easier for them to find and experience our inventory and products in a more seamless manner.

最後我想說，我們對我們的業務發展軌跡仍然充滿信心，並且我們對如何改善客戶體驗有著非常清晰的認識。 23 財年下半年，我們應該會在庫存、入職和產品計劃方面取得重大進展。我們相信這些變化將會引起我們的客戶的注意，並使他們更容易以更無縫的方式找到和體驗我們的庫存和產品。

With that, we are happy to open it up for questions.

至此，我們很高興開放提問。

(Operator Instructions)

（操作員說明）

Our first question comes from Rick Patel with Raymond James.

我們的第一個問題來自里克·帕特爾和雷蒙德·詹姆斯。

I have a question on getting better at giving customers what they want when they want it. How do we think about this from an inventory management perspective. Does it mean that you'll be buying more inventory as you get a read on fashion? Does it mean that you'll be leaning more on your share by RTR partners? Just curious how to think about the mechanics of chasing high-demand products.

我有一個問題，關於如何在客戶需要時更好地為他們提供他們想要的東西。我們如何從庫存管理的角度來考慮這個問題？這是否意味著當您了解時尚時，您會購買更多庫存？這是否意味著您將更多地依賴 RTR 合作夥伴的份額？只是好奇如何思考追逐高需求產品的機制。

And as a follow-up, what are the financial ramifications from ramping up this initiative on gross margins and working capital?

作為後續行動，提高這一舉措對毛利率和營運資本有何財務影響？

I think there's 2 main ways we're addressing it. And you've seen us really deploy one of the ways thus far in Q1 and early Q2. So the first way is we get these real-time data signals in season on what's doing well, what's highly demanded and number one, we're able to respond to them in season, get competitive pricing, reorder pretty aggressively against top styles. And that's kind of because of both the real-time data that we get, but it's also because of the business model that we have, where we can continue to monetize inventory over 3-plus years as opposed to being held to kind of a traditional retailer 12 month -- 12 week of full price selling kind of calendar. So that's number one.

我認為我們有兩種主要方法來解決這個問題。您已經看到我們在第一季度和第二季度初期真正部署了其中一種方法。因此，第一種方法是我們獲得當季的實時數據信號，了解哪些商品表現良好、哪些需求高、哪些是第一，我們能夠及時響應它們，獲得有競爭力的價格，針對頂級款式相當積極地重新訂購。這既是因為我們獲得了實時數據，也是因為我們擁有的商業模式，我們可以在三年多的時間裡繼續通過庫存貨幣化，而不是堅持傳統的模式。零售商 12 個月——12 週的全價銷售日曆。所以這是第一。

The second aspect of this is really focusing on depth. We know that our customers come to Rent the Runway. They heart styles that they love. And we want to give them more ability to get those products that they heart way more frequently and way more as often. So we are making significant changes to the depth of the styles that we acquire from our partners. And that's going to really start to show up in the second half of this year, and we think that it will make a noticeable impact on customer experience.

第二個方面是真正關注深度。我們知道我們的客戶是來租賃跑道的。他們喜歡自己喜歡的風格。我們希望讓他們更有能力更頻繁地獲得他們喜愛的產品。因此，我們正在對從合作夥伴那裡獲得的風格深度進行重大改變。這將在今年下半年真正開始顯現，我們認為它將對客戶體驗產生顯著影響。

We have great data on what she wants. I think that we're solidly in now this post-COVID world where she's really using us again for workwear, for weekends and for special occasions. And so we're able to increase the depth across the styles that matter to her most.

我們有關於她想要什麼的大量數據。我認為我們現在正處於後疫情時代，她再次將我們用於工作服、週末和特殊場合。因此，我們能夠增加對她最重要的風格的深度。

Yes, Rick, thanks for the question. I think in terms of the financial impact of this move, look, it's obviously #1 factor into the guidance that we have provided for product spend this year. But more importantly, I would say we always face this trade-off, right? How many styles do we want to buy and then how many units of each style that we want to buy, right? So there is no additional dollars that are required to optimize for depth. I mean, we have a tremendous amount of data when we look at how easy it is for a customer to find items on our site. What is the impact of depth going to do to those metrics? And part of the reason we feel very optimistic about the 25% subscriber growth guidance is we know we have very significant improvements in the customer experience coming as it relates to inventory because of these optimizations on depth and breadth that Jen mentioned.

是的，瑞克，謝謝你的提問。我認為就這一舉措的財務影響而言，這顯然是我們今年為產品支出提供的指導中的第一大因素。但更重要的是，我想說我們總是面臨這種權衡，對吧？我們要購買多少種款式，然後每種款式要購買多少件，對吧？因此，不需要額外的資金來優化深度。我的意思是，當我們查看客戶在我們網站上查找商品的容易程度時，我們擁有大量數據。深度會對這些指標產生什麼影響？我們對 25% 的用戶增長指導感到非常樂觀的部分原因是，我們知道，由於 Jen 提到的這些深度和廣度的優化，我們在與庫存相關的客戶體驗方面取得了非常顯著的改善。

Our next question comes from Andrew Boone with JMP Securities.

我們的下一個問題來自 JMP 證券公司的安德魯·布恩 (Andrew Boone)。

I'd like to talk about the guide for 2023. Just given the guidance for 2Q and thinking about the back half of the year, can you talk about your confidence in the reacceleration of subscriber growth to hit that 25% plus number?

我想談談 2023 年的指導。剛剛給出了第二季度的指導並考慮了下半年，您能否談談您對用戶增長重新加速以達到 25% 以上數字的信心？

Sure. Look, I think we had -- to go back a little bit, we always -- this year was always supposed to be a year of 2 halves, right? So when we provided guidance last quarter, we have said revenue growth in the back half of the year was supposed to be significantly stronger than the first half of the year, right? So we still believe that's going to be the case. But I think fundamentally, what underpins our confidence on the growth for this year is, of course, number one, we've had a strong start to the year. But secondly, it's our confidence in the data that we have behind all of the key initiatives that we have lined up for the back half, right?

當然。聽著，我想我們——回顧一下，我們總是——今年總是應該是分為兩半的一年，對吧？因此，當我們上季度提供指導時，我們說過下半年的收入增長應該明顯強於上半年，對嗎？所以我們仍然相信情況會如此。但我認為從根本上來說，支撐我們對今年增長信心的首要因素當然是我們今年有一個強勁的開局。但其次，我們對下半年所有關鍵舉措背後的數據充滿信心，對嗎？

So we think, number one, the inventory changes are going to be significant because ultimately, people come, customers visit Rent the Runway to rent the products they love, right? And if we make it very easy or much easier to find those products, to interact with our website very easily, I mean that is going to pay dividends in terms of the retention and the loyalty customers have, right?

所以我們認為，第一，庫存變化將是重大的，因為最終，人們會來，顧客訪問 Rent the Runway 來租用他們喜歡的產品，對嗎？如果我們讓找到這些產品、與我們的網站互動變得非常容易或容易得多，我的意思是，這將在客戶保留率和忠誠度方面帶來紅利，對嗎？

The other very significant change that we -- or the improvement that we've made today to the site is this personalized onboarding and RTR Concierge service, right? So 55% of all subscribers of [Levi's] do so within the first 90 days. So we think it's been -- it's quite critical to address the pain points in those first 90 days. And here, we are providing a very personal SMS-based -- it's almost like your personal stylist and we're seeing very encouraging results from customers. I think fundamentally, we have very significant product improvements that we always had planned for this year that give us a lot of confidence that we're going to get to 25% subscriber growth.

我們今天對網站所做的另一個非常重大的改變是個性化的入職和 RTR 禮賓服務，對嗎？因此，55% 的 [Levi's] 訂閱者會在前 90 天內購買。所以我們認為解決前 90 天的痛點非常重要。在這裡，我們提供了一個非常個性化的基於短信的服務——它幾乎就像您的個人造型師，我們從客戶那裡看到了非常令人鼓舞的結果。我認為從根本上來說，我們今年一直計劃進行非常重大的產品改進，這給了我們很大的信心，我們將實現 25% 的用戶增長。

Yes. I think our results in Q1 show that the strategic pillars that we outlined this year are working, and they are being felt by the customer. And I think more importantly, what you're seeing across the organization is you're seeing an agile organization that has an execution orientation. So we've actually done a lot over the first 4 months of the year. We've launched a lot. We've iterated a lot. And this was within a plan where we knew that the majority of the transformative product experiences would really be showing up in the back half of the year.

是的。我認為我們第一季度的結果表明，我們今年概述的戰略支柱正在發揮作用，並且客戶也感受到了它們。我認為更重要的是，您在整個組織中看到的是一個以執行為導向的敏捷組織。所以今年前 4 個月我們實際上做了很多事情。我們已經推出了很多。我們已經迭代了很多。這是在一個計劃內的，我們知道大多數變革性的產品體驗將真正在今年下半年出現。

So we already feel good about how the customer is experiencing Rent the Runway differently to date. And we know that we have some really exciting things lined up over the next few months.

因此，我們已經對客戶迄今為止所體驗的不同的 Rent the Runway 感到滿意。我們知道，在接下來的幾個月裡，我們將迎來一些非常令人興奮的事情。

Jen, I wanted to ask specifically about AI to that last thing that you said, I think you talked about AI as a first step. Can you talk about the vision in terms of how AI can be incorporated more broadly across the platform? Just a little bit more beyond search.

Jen，我想具體詢問您所說的最後一件事有關人工智能的問題，我認為您談到人工智能是第一步。您能否談談如何將人工智能更廣泛地融入整個平台的願景？只是搜索之外的一點點。

Yes. So first, I just want to talk about AI and what it can do to the fashion industry in general. I think that fashion e-commerce is one of the most cumbersome customer experiences that exists. You are searching through pages and pages and pages of content to find the items that you like and no one likes doing this. And so first of all, as an industry that still is selling physical products, AI is going to be -- fashion is going to be a major beneficiary as an industry.

是的。首先，我想談談人工智能以及它對時尚行業的總體影響。我認為時尚電子商務是現存最繁瑣的客戶體驗之一。您正在一頁又一頁地搜索內容以找到您喜歡的項目，但沒有人喜歡這樣做。首先，作為一個仍在銷售實體產品的行業，人工智能將成為時尚行業的主要受益者。

Now why is Rent the Runway like uniquely positioned here. You -- Rent the Runway is different than traditional fashion in 2 ways. Number one is, she's using us all the time. So making the experience much easier for her is even more important for us to do than a retailer that you're going to once or twice a year where you'll slog through the experience of the customer and kind of put up with it. At Rent the Runway if we can make this a seamless experience because we're a utility, it will be appreciated even more.

為什麼 Rent the Runway 的定位如此獨特？ You - Rent the Runway 與傳統時尚有兩個不同之處。第一是，她一直在利用我們。因此，對我們來說，讓她的體驗變得更輕鬆比你每年去一次或兩次的零售商更重要，在零售商中，你需要費力地體驗客戶的體驗並忍受它。在 Rent the Runway，如果我們能夠讓這種體驗成為一種無縫體驗，因為我們是一家公用事業公司，那麼我們將更加感激。

And second, because of how frequently she uses us, we have real-time information on what she's doing tomorrow, on how she liked or disliked the items she received yesterday, on fit, on how exactly she wants to dress this weekend. And therefore, the data set that we have, we think is highly unique in terms of how we could power against AI.

其次，由於她使用我們的頻率很高，我們可以獲得關於她明天要做什麼、她喜歡或不喜歡昨天收到的物品、合身情況以及她本週末想要穿什麼的實時信息。因此，我們認為我們擁有的數據集在如何對抗人工智能方面非常獨特。

Now if we are utilizing AI appropriately over the next few years, there -- I see no reason why someone even has to come to our website. We talked about the fact that she's already texting one-on-one with someone from Concierge. That's really today about her onboarding experience. We talked about a beta launching over the next few weeks around AI search, which would be fundamentally about new ways that you could discover product on the site.

現在，如果我們在未來幾年適當地利用人工智能，我認為沒有理由有人必須訪問我們的網站。我們談到了這樣一個事實：她已經在與禮賓部的人員一對一地發短信。今天這就是她的入職經歷。我們討論了在接下來的幾週內圍繞人工智能搜索推出的測試版，這從根本上講是關於您在網站上發現產品的新方式。

The more medium- to long-term vision is really the marriage of these 2 things that there can be through any modality, however you want to communicate to Rent the Runway, a way for you to constantly access a stylist that can help you with everything from taking out new inventory to you, to solving problems, to answering questions, and you can do it asynchronously when it makes sense for you on your own time.

更中長期的願景實際上是這兩件事的結合，可以通過任何方式實現，但你想與 Rent the Runway 溝通，這是一種讓你不斷接觸可以為你提供一切幫助的造型師的方式從向您取出新庫存，到解決問題，再到回答問題，您可以在您自己的時間有意義的情況下異步完成這些工作。

So we're really excited about the progress that we've made towards this beta that will go live over the next few weeks. It's really interesting because I think that across all fashion sites, all over the world, the way that people are searching for product is fairly vanilla, fairly functional, right? You can go to a site and search for a T-shirt. You can go to a site and search for a black tie gown. The fact that we're going to be able to enable our customers to search how they actually want to use this Closet in the Cloud. To search for items to wear to my beach bonfire this weekend, that is a completely different way to search, and I think that it really brings up the value proposition of what a Closet in the Cloud is all about. So we're really excited by that.

因此，我們對這個測試版所取得的進展感到非常興奮，該測試版將在接下來的幾週內上線。這真的很有趣，因為我認為在世界各地的所有時尚網站中，人們搜索產品的方式相當普通，相當實用，對吧？您可以訪問一個網站並蒐索 T 卹。您可以訪問一個網站並蒐索黑色領帶禮服。事實上，我們將能夠讓我們的客戶搜索他們真正想要如何使用雲中的這個衣櫃。要搜索本週末在海灘篝火晚會上穿的衣服，這是一種完全不同的搜索方式，我認為它確實提出了雲中壁櫥的價值主張。所以我們對此感到非常興奮。

Our next question comes from Ike Boruchow with Wells Fargo.

我們的下一個問題來自富國銀行的 Ike Boruchow。

This is Kate on for Ike. Congratulations on the improvements in (inaudible) in Q1. I guess just first, Jen, we're now 3 months post the extra items announcement. You guys obviously had a lot of initiatives in place to improve the customer experience. I am curious with this latest cohort, if you can share any more color or numbers behind what you are seeing from a retention basis out of that tranche of consumers. And then, Sid, you noted your confidence in the active subs accelerating into the back half. Just from a seasonality perspective, just looking back the last few years, you guys have tended to lose active subs quarter-over-quarter in Q4. Just anything we should consider between 3Q and 4Q, especially as you're more confident behind some of these initiatives around subscriber growth?

這是艾克的凱特。祝賀第一季度（聽不清）的改進。我想首先，Jen，我們距離額外物品公告發布還有 3 個月了。你們顯然採取了很多舉措來改善客戶體驗。我對這個最新群體很​​好奇，您是否可以分享您從這部分消費者的保留基礎中看到的更多顏色或數字。然後，Sid，你提到了你對活躍替補加速進入後半場的信心。僅從季節性角度來看，回顧過去幾年，你們在第四季度往往會逐季失去活躍的潛艇。在第三季度和第四季度之間，我們應該考慮什麼，特別是當您對其中一些圍繞用戶增長的舉措更有信心時？

Yes. So to address the first part of the question, through Q1, we saw better churn, better rejoin rates and better conversion rates. And as we get further away from the launch, it's harder to say what's related to Five item versus other experience improvements that we're making across the board, but we feel really great about what we saw in Q1.

是的。因此，為了解決問題的第一部分，通過第一季度，我們看到了更好的客戶流失率、更好的重新加入率和更好的轉化率。隨著距離發佈時間越來越遠，很難說與我們正在全面進行的其他體驗改進相比，與“五項”相關的內容是什麼，但我們對第一季度所看到的情況感到非常滿意。

Yes. And in terms of active subs, look, you got 100% right. Last year, we did see a decline in Q4. I mean, if I look at the pacing of product improvement and the inventory build that we have this year, I feel very optimistic that the entirety of the second half is going to be positively affected by that, right? I'm not going to sit there and guide necessarily to what Q4 is going to look like relative to Q3, except to say that we've already provided a confident outlook in terms of plus 25% subscriber growth. So we'll leave it at that. So that's what we expect to hit. And I think we feel, given the product improvements we have, very confident in that outlook.

是的。就活躍訂閱者而言，你看，你說得100%正確。去年，我們確實看到第四季度出現下降。我的意思是，如果我看看今年產品改進的步伐和庫存建設，我感到非常樂觀，整個下半年將受到積極影響，對嗎？我不會坐在那裡對第四季度相對於第三季度的情況進行必然的指導，只是說我們已經對用戶增長 25% 以上的前景充滿信心。所以我們就這樣吧。這就是我們期望達到的目標。我認為，鑑於我們的產品改進，我們對這一前景非常有信心。

Our next question comes from Eric Sheridan with Goldman Sachs.

我們的下一個問題來自高盛的埃里克·謝里丹。

I want know if we could maybe just talk about the broader environment that you're operating in generally. We've talked in the past about return to work, the return of big events, elements of possible rationalization of spend by the consumer and shift into a model like yours and away from a purchase model. Can you just give us a sense of where we can level set in terms of the thinking around the headwinds and tailwinds you face in the business as we go deeper into 2023 across those themes that we've talked about before and how those might impact elements of paused subscribers or net adds or purchasing behavior?

我想知道我們是否可以只討論一下您通常所處的更廣泛的環境。我們過去討論過重返工作崗位、大型活動的回歸、消費者支出可能合理化的因素以及轉向像您這樣的模式並遠離購買模式。您能否讓我們了解一下，當我們深入 2023 年時，圍繞我們之前討論過的主題以及這些主題可能如何影響要素，我們可以在哪些方面圍繞您在業務中面臨的逆風和順風進行思考暫停的訂閱者或淨添加或購買行為？

Yes. So first, we're not seeing evidence based on our acquisition numbers that we were impacted by the macro environment in Q1. So we're confident that we know what we need to do with this business. I mean the strategic pillars are in line with things that our customers care about. We made huge progress in Q1, and clearly, we're reiterating our guidance for the year.

是的。首先，我們沒有看到基於收購數量的證據表明我們受到第一季度宏觀環境的影響。因此，我們有信心知道我們需要對這項業務做什麼。我的意思是，戰略支柱與我們的客戶關心的事情是一致的。我們在第一季度取得了巨大進展，顯然，我們重申了今年的指導。

So some things that we are seeing that could be very positive for Rent the Runway is we're seeing demand for workwear is continuing to increase and demand overpenetrates into workwear relative to active units on our site, very similar to pre-COVID for the first time since COVID has occurred. And so we think that because of the macro environment as CEOs are calling their workforce back into offices and demanding more that they're there, that this is a very positive tailwind for our business. And it feels great to see workwear back up to similar utilization than we saw pre-COVID.

因此，我們看到的一些對 Rent the Runway 來說可能非常積極的事情是，我們看到對工作服的需求持續增加，並且相對於我們網站上的活躍單元，需求過度滲透到工作服中，這與新冠​​疫情之前的情況非常相似自新冠肺炎發生以來的時間。因此，我們認為，由於宏觀環境的影響，首席執行官們正在將員工召回辦公室，並對他們提出更多要求，這對我們的業務來說是一個非常積極的推動力。看到工作服的利用率恢復到與新冠疫情爆發前相似的水平，真是太好了。

And I think that -- it's helpful, I think when you go into -- what about the macro, obviously, in an uncertain environment, so why do we still feel good, right? And I think probably the biggest reason why we feel good, are number one, we're addressing these problems that customers have told us they care about. And number two, we actually have data behind the impact of the decisions we're making, right? So for instance, we're rolling out the concierge service as we speak. We see real-time data on how many people have signed up, what impacted that improvements have on our customers. So you're seeing -- now it's just a question of how many customers can we get signed up? How long will that take? And really, it's just a continuation of the data that we're already seeing, reflecting the improvements that we are making to that customer's experience, right?

我認為——這很有幫助，我想當你進入——顯然，在一個不確定的環境中，宏觀情況如何，那麼為什麼我們仍然感覺良好，對吧？我認為我們感覺良好的最大原因可能是第一，我們正在解決客戶告訴我們他們關心的這些問題。第二，我們實際上擁有我們正在做出的決策的影響背後的數據，對吧？舉例來說，我們正在推出禮賓服務。我們可以看到有關有多少人註冊的實時數據，以及這些改進對我們的客戶產生的影響。所以你看到了——現在的問題只是我們可以註冊多少客戶？多久才能做到？事實上，這只是我們已經看到的數據的延續，反映了我們對客戶體驗所做的改進，對吧？

Take inventory, another very important factor this year. Once we actually optimize the breadth and depth and the actions we're taking, we know what a customer is likely to feel in terms of what's available to her when she visits the site. Now we also know based on historical data and evidence how that customer is likely to react, how loyal is that customer going to be because she sees that item more available. It's much more pleasurable and easier to interact with our site. So again, these are all of these improvements, this is not something that we're making an improvement, no idea how it's going to play out.

庫存是今年另一個非常重要的因素。一旦我們真正優化了廣度和深度以及我們正在採取的行動，我們就知道客戶在訪問網站時可能會對她可以得到的內容有什麼感受。現在，我們還根據歷史數據和證據知道該客戶可能會如何反應，該客戶的忠誠度如何，因為她認為該商品更容易買到。與我們的網站互動更加愉快和容易。再說一遍，這些都是所有這些改進，這不是我們正在做出的改進，不知道它將如何發揮作用。

We actually have relatively concrete data. It's really just a matter of executing properly and essentially reaping the benefits of the actions that we know our customers care about.

我們其實有比較具體的數據。這實際上只是一個正確執行的問題，並從我們知道客戶關心的行動中獲得本質上的好處。

Yes. We just see this as a market that's growing. We think that rental continues to offer tremendous financial value, whether you're renting on a card or you're subscribing and our goal is to focus on making our customer experience as positive as it can possibly be and to continuously improve it quarter-over-quarter in a market where there are more customers who are considering rental than ever before.

是的。我們只是將其視為一個正在增長的市場。我們認為，無論您是通過卡租賃還是訂閱，租賃都將繼續提供巨大的財務價值，我們的目標是專注於使我們的客戶體驗盡可能積極，並持續改善每個季度的體驗- 在這個市場中考慮租賃的客戶比以往任何時候都多的季度。

Our next question comes from Ashley Helgans with Jefferies.

我們的下一個問題來自 Jefferies 的 Ashley Helgans。

Anything you can tell us on the composition of subscriber growth trends? Are you activating more reserve users or seeing new subscribers coming to the platform?

您能告訴我們關於用戶增長趨勢的構成嗎？您是否激活了更多儲備用戶或看到新訂閱者來到該平台？

Yes. I mean, obviously, look, we've called out the weakness in the reserve business. We've talked about that, that is affecting performance this year. But -- so what that implies is we're clearly seeing activation across rejoiners. We're clearly seeing activations across new customers. I mean, this goes back a little bit to 2 things that are going on, right? The first thing is customers are embracing rental, right? So with that, you are seeing new customers sign up, and that's a very positive trend in the business.

是的。我的意思是，顯然，我們已經指出了儲備業務的弱點。我們已經討論過這一點，這會影響今年的表現。但是——這意味著我們清楚地看到重新加入者的激活。我們清楚地看到新客戶的激活情況。我的意思是，這可以追溯到正在發生的兩件事，對嗎？首先，客戶正在接受租賃，對嗎？因此，您會看到新客戶註冊，這是該業務的一個非常積極的趨勢。

And then the second thing you're seeing is really the impact of loyalty, right? I mean that's been a pretty strong driver for Q1. And given all of the changes we're making for the rest of the year should continue to be a pretty strong driver for the rest of the year, right? So I think those are the 2. It's really a combination of certainly acquisitions and new customers given people embracing rental but also really strong retention that we had in Q1 and expected.

然後你看到的第二件事確實是忠誠度的影響，對嗎？我的意思是，這是第一季度相當強勁的驅動力。考慮到我們在今年剩餘時間裡所做的所有改變應該會繼續成為今年剩餘時間里相當強勁的推動力，對嗎？所以我認為這就是第二個。考慮到人們接受租賃，這確實是收購和新客戶的結合，而且我們在第一季度和預期中也擁有非常強大的保留率。

Our next question comes from Lauren Schenk with Morgan Stanley.

我們的下一個問題來自摩根士丹利的勞倫·申克。

This is Nathan Feather on for Lauren. Two quick ones for me. So first, how is inventory utilization trending with the launch of the 5-Item Plan? And do you feel you have the right mix of inventory or anywhere you see a material gap that you're trying to fix?

我是勞倫 (Lauren) 的內森·費瑟 (Nathan Feather)。對我來說兩個快點。首先，隨著五品計劃的推出，庫存利用率趨勢如何？您是否認為自己擁有正確的庫存組合，或者是否發現了需要彌補的材料缺口？

So as expected, inventory utilization is higher because of the launch of 5 Item. We do feel that we're seeing an opportunity in workwear, we're actually increasing purchases in workwear this year, 50% versus last year. But utilization is in line with where we assumed it would be before 5 Item. We're also seeing really nice utilization in weekend wear and accessories and all of these areas were the areas that we really look to where we deployed kind of our reorder dollars and access more styles.

因此，正如預期的那樣，由於 5 個項目的推出，庫存利用率更高。我們確實覺得我們在工作服方面看到了機會，實際上我們今年增加了工作服的採購量，比去年增加了 50%。但利用率與我們假設的 5 Item 之前的情況一致。我們還看到週末服裝和配飾的利用率非常高，所有這些領域都是我們真正關注的領域，我們部署了重新訂購資金並獲得更多款式。

Great. And then good to hear the actual improving churn and rejoin rate. I guess, just thinking about the split between existing and new cohorts, was there any big divergence in trends between those 2?

偉大的。很高興聽到客戶流失率和重新加入率的實際改善。我想，只要考慮一下現有群體和新群體之間的區別，這兩個群體之間的趨勢是否存在很大差異？

Well, look, I mean, ultimately, the way we think about our business is the retention is very, very, very important to us in terms of ensuring that the long-term growth of this business. I think you've got to remember, 80% of all our customers come to us organically and 60% of all our customers come to us because they heard about us and how many they know.

好吧，我的意思是，歸根結底，我們對業務的看法是，保留人才對於確保這項業務的長期增長對我們來說非常非常非常重要。我想你必須記住，我們 80% 的客戶自然來到我們這裡，60% 的客戶來到我們這裡是因為他們聽說過我們以及他們了解我們的數量。

I mean fundamentally what everything, all our strategies at year 2 and improve that customer's experience that they are delighted and they talk about us. And I think obviously, that has a very mathematical impact on growing subscribers this year. But over time, that feeds through, right? We will get our share of (technical difficulty) organic acquisitions simply because our customers (technical difficulty) had a great experience. I mean that is fundamentally the core to be here. And the nice thing about loyalty and the initiatives that we (technical difficulty) data behind what we're doing.

我的意思是從根本上講，我們在第二年的所有策略以及改善客戶的體驗，讓他們感到高興並談論我們。我認為顯然，這對今年不斷增長的訂戶產生了非常數學上的影響。但隨著時間的推移，這種感覺就會消失，對嗎？我們將獲得（技術難度）有機收購的份額，僅僅是因為我們的客戶（技術難度）有很好的經驗。我的意思是，這從根本上來說是這裡的核心。忠誠度和我們（技術難度）數據背後的舉措的好處是我們正在做的事情。

Our next question comes from Ross Sandler with Barclays.

我們的下一個問題來自巴克萊銀行的羅斯桑德勒。

How do we feel about where we are with the kind of super high demand in season kind of SKU depth and availability. Is that at this point fully optimized and fully built out? Or, Sid you mentioned second half investments around that. But when do we think that will be in the right place to kind of match the size of the subscriber business with your inventory? And then kind of related to that, but the second part would be, how does AI kind of improve discovery of like hot items that may be aren't being personalized to the user today and help solve some of that availability issue as well.

我們對季節性 SKU 深度和可用性的超高需求有何感受？此時是否已完全優化並完全構建？或者，Sid 您提到了下半年的投資。但是我們什麼時候認為它會處於正確的位置，以將訂戶業務的規模與您的庫存相匹配？然後與此相關，但第二部分是，人工智能如何改進對當今可能沒有針對用戶個性化的熱門商品的發現，並幫助解決一些可用性問題。

So I think (technical difficulty) is going to start (technical difficulty) a major difference as it relates inventory availability starting [into August]. Because we made a significant change in our depth strategy for the second half of the year. [So that's when she is going to be] (technical difficulty) finding that more of the items are in (technical difficulty).

因此，我認為（技術難度）將開始產生重大差異，因為它與[到八月]開始的庫存可用性有關。因為我們下半年的深度策略發生了重大改變。 [所以那時她將會]（技術困難）發現更多的項目在（技術困難）中。

In terms of AI, you correctly pointed out that AI for us helped to even then further leverage the [long gap]. If you think about what I mentioned, how cumbersome any e-commerce experience of just happens (technical difficulty) many pages as the result and on Rent the Runway, there's hundreds of pages per search result. It could be for you clicked (technical difficulty) click new blazers et cetera. To be able to actually have a (technical difficulty) that's related to something that has going on in your life like (technical difficulty) this weekend. Like you're going to see this long (technical difficulty) of aisle that might have taken you many ages of looking at hundreds and hundreds of (technical difficulty). So I think that this can help (technical difficulty).

在人工智能方面，您正確地指出，人工智能對我們來說甚至有助於進一步利用[長期差距]。如果你想想我提到的，任何電子商務體驗都會有很多頁面作為結果（技術難度），而在 Rent the Runway 上，每個搜索結果有數百個頁面，這是多麼麻煩。可能是您單擊（技術難度）單擊新西裝外套等。能夠真正遇到與你生活中發生的事情相關的（技術困難），比如這個週末的（技術困難）。就像您將看到這麼長的（技術難度）過道，這可能需要您花費很多時間來查看數百個（技術難度）。所以我認為這會有所幫助（技術難度）。

Our next question comes from Ed Yruma with Piper Sandler.

我們的下一個問題來自 Ed Yruma 和 Piper Sandler。

I guess first on reserves, I just want to click down on that a little bit more. I know you guys are obviously facing some tough compares there. Has inventory been an issue there? I know it was through part of last year. And then I guess just kind of stepping back and maybe as a follow on to the AI question, I guess, how do we think about the rate by which you can bring some of these innovations to the market? I know you indicated you're going to have kind of a soft launch in a couple of weeks, but should we think about this as being kind of a couple of quarter phenomenon? Or do you think you can implement on these AI search functions relatively quickly?

我想首先是儲備金，我只想再點擊一下。我知道你們顯然面臨著一些艱難的比較。那裡的庫存有問題嗎？我知道這是去年的一部分。然後我想退一步，也許作為人工智能問題的後續，我想，我們如何考慮將其中一些創新推向市場的速度？我知道您表示您將在幾週內進行軟啟動，但我們是否應該將其視為幾個季度的現象？或者你認為你可以相對快速地實現這些人工智能搜索功能嗎？

So in AI, I think that whatever we do launch will be in beta and we'll continue to iterate and improve it over time. I think AI is so new to everyone. And I think that what I'm excited about is how quickly we've been able to leverage our data here and create a product that we think is going to make a nice difference in product recovery, and we'll just continue to make that better over time.

因此，在人工智能方面，我認為無論我們推出什麼，都將處於測試階段，我們將隨著時間的推移繼續迭代和改進它。我認為人工智能對每個人來說都是陌生的。我認為令我興奮的是我們能夠如此迅速地利用我們的數據並創建一個我們認為將在產品恢復方面產生巨大影響的產品，我們將繼續做到這一點隨著時間的推移會更好。

Yes. And on the reserve business, I think, look, it's a fascinating (technical difficulty), right? So (technical difficulty) last quarter, we've been very focused on driving our subscription business. So everything we (technical difficulty) on marketing, on brand messaging, all reflecting that focus on subscription, particularly with the recent 5 Item launch in Q1, right? But having said that, we think internally and (technical difficulty) real opportunity to grow our reserve business over time. They're not usually exclusive business, right? So we're working on plans that involve both inventory and product that reenergizes offering and obviously, none of that is factored into the guidance and the expectations for this year, and we've just reflected a continuation of (technical difficulty) but over time, we feel pretty optimistic about our ability to reenergize that business, have it continue to serve us quite (technical difficulty).

是的。至於儲備業務，我認為，看，這是一個令人著迷的（技術難度），對吧？所以（技術困難）上個季度，我們一直非常專注於推動我們的訂閱業務。因此，我們在營銷、品牌信息方面（技術難度）所做的一切都反映了對訂閱的關注，特別是最近在第一季度推出的 5 件商品，對吧？但話雖如此，我們認為內部和（技術難度）隨著時間的推移有真正的機會來發展我們的儲備業務。它們通常不是獨家業務，對吧？因此，我們正在製定涉及庫存和產品的計劃，以重新激活供應，顯然，這些都沒有納入今年的指導和預期，而且我們剛剛反映了（技術難度）的延續，但隨著時間的推移，我們對重振該業務的能力感到非常樂觀，讓它繼續為我們服務（技術難度）。

Thank you. There are no further questions at this time. I would like to turn the floor back over to management for closing comments.

謝謝。目前沒有其他問題。我想將發言權交還給管理層以徵求結束意見。

Thanks so much for joining us today. I'm really excited about our plans and accelerate our profitability and the long runway for growth ahead. We look forward to continuing to update you on our progress on our Q2 2023 call in September and thanks again for joining us.

非常感謝您今天加入我們。我對我們的計劃感到非常興奮，並加速我們的盈利能力和未來的長期增長。我們期待在 9 月份的 2023 年第二季度電話會議上繼續向您通報我們的最新進展，並再次感謝您加入我們。

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

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。