Rent the Runway Inc (RENT) 2024 Q2 法說會逐字稿

Welcome to Rent the Runway second-quarter 2024 earnings results conference call. (Operator Instructions) If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As reminder, this conference is being recorded. I would now like to turn the call over to Rent the Runway's Chief Legal and Administrative Officer, Cara Schembri. Thank you. You may begin.

歡迎參加 Rent the Runway 2024 年第二季財報電話會議。 （操作員說明）如果有人在會議期間需要操作員幫助，請按電話鍵盤上的星號零。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 的首席法律和行政官 Cara Schembri。謝謝。你可以開始了。

Good afternoon, everyone, and thanks for joining us today. During this call, we will make references to our Q2 2024 earnings presentation, which can be found in the events and presentations section of our Investor Relations website.

大家下午好，感謝您今天加入我們。在本次電話會議中，我們將參考 2024 年第二季的收益演示，您可以在我們的投資者關係網站的活動和演示部分找到該演示。

Before we begin, we'd 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 which 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表現、指導和目標、市場機會以及我們的成長的未來預期。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有重大差異。

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 within the next few days. We undertake 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內提交的 10-Q 表格。除法律要求外，我們不承擔修改或更新任何前瞻性陳述或資訊的義務。

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 presented in accordance with GAAP. Reconciliation of the GAAP to non-GAAP measures can be found in our press release, slide presentation posted on our investor website and in our SEC filings. And with that, I'll turn it over to Jen.

在本次電話會議中，我們也會參考某些非 GAAP 財務資訊。此非 GAAP 財務資訊的呈現不應被孤立地考慮或作為根據 GAAP 呈現的財務資訊的替代。 GAAP 與非 GAAP 衡量標準的調整可以在我們的新聞稿、投資者網站上發布的幻燈片簡報以及我們向 SEC 提交的文件中找到。有了這個，我會把它交給 Jen。

Thanks, Cara, and thank you, everyone for joining. On our last two earnings calls, I highlighted our two big goals for 2024: getting to free cash flow breakeven, and returning to growth. I'm excited to report results for Q2 that beat our expectations. And as a result, we are raising revenue guidance for the full year.

謝謝卡拉，也謝謝大家的加入。在我們最近兩次財報電話會議上，我強調了我們 2024 年的兩大目標：實現自由現金流損益兩平和復原成長。我很高興報告第二季的業績超出了我們的預期。因此，我們提高了全年的收入指引。

What you're seeing in our results is momentum. We've dramatically simplified our internal goals and organizational structure so that we can aggressively pursue the biggest opportunity areas for our business. We believe that the business is demonstrating that it's at an exciting inflection where continued growth and free cash flow breakeven this year are squarely within our reach.

您在我們的結果中看到的是勢頭。我們大幅簡化了內部目標和組織結構，以便我們能夠積極尋求業務的最大機會領域。我們相信，該業務正在證明它正處於一個令人興奮的轉折點，今年的持續成長和自由現金流損益平衡完全是我們所能達到的。

Q2 '24 revenue was $78.9 million, up 4.2% year over year, exceeding the high end of our $76 million to $78 million guidance. Adjusted EBITDA was $13.7 million or 17.4% of revenue, our ninth consecutive quarter of positive EBITDA and exceeding the high end of our 14% to 15% margin guidance.

2024 年第二季營收為 7,890 萬美元，年成長 4.2%，超出了我們 7,600 萬至 7,800 萬美元指引的上限。調整後 EBITDA 為 1,370 萬美元，佔營收的 17.4%，這是我們連續第九個季度 EBITDA 為正值，超過了 14% 至 15% 利潤率指引的上限。

Moving on to Q3, we are guiding to an acceleration in revenue growth with Q3 revenue expected to increase 3% to 6% year over year. Finally, we are reiterating our goal to be free cash flow breakeven in full year '24.

進入第三季度，我們預計營收將加速成長，預計第三季營收將年增 3% 至 6%。最後，我們重申我們的目標是在 24 年全年實現自由現金流損益平衡。

One of the areas of our business where we believe that the momentum is most probable is in our special event rental business reserve. The reserve business is what we launched the company with 15 years ago. It's a simple value proposition. Every woman has to buy outfits for events, a wedding, a prom, a gala, a holiday party that she rarely wears again. So we give her the ability to rent dresses and accessories à-la carte for around 15% -- 10% to 15% of the retail price.

我們認為最有可能發展勢頭的業務領域之一是我們的特殊活動租賃業務儲備。儲備業務是我們15年前創辦公司時所進行的業務。這是一個簡單的價值主張。每個女人都必須為各種活動、婚禮、舞會、派對、節慶派對購買她很少再穿的服裝。因此，我們讓她能夠以零售價的 15% 至 10% 至 15% 左右的價格租用連身裙和配件。

The addressable market for event rentals is large, and we are still the only company of scale is operating in this space. As we have discussed on past calls, reserve revenue has been declining for a few years, and we've been focused on reinvigorating it.

活動租賃的潛在市場很大，我們仍然是該領域唯一一家具有規模經營的公司。正如我們在過去的電話會議中所討論的那樣，儲備收入幾年來一直在下降，我們一直致力於重振它。

In June. We dedicated a new cross-functional pod under new leadership to focus on building reserve over the next few years. By July, orders were up around 10% year over year. Ended August, orders have been up around 20% year over year.

六月。我們在新領導層的領導下專門成立了一個新的跨職能小組，專注於未來幾年的儲備建設。截至 7 月，訂單年增約 10%。截至8月，訂單年增約20%。

Equally exciting new customer growth into reserve is up around 50% year over year. This is without any marketing changes or incremental marketing dollars whatsoever. Just a deep focus on improving the end-to-end customer experience and ensuring that we optimize inventory availability for our customers.

同樣令人興奮的是，新客戶的儲備量年增約 50%。這沒有任何行銷變化或增量行銷資金。專注於改善端到端客戶體驗並確保我們為客戶優化庫存可用性。

Historically, new customer growth into reserve was a healthy source of repeat orders and upsells into subscription. We plan to use our reinvigorated lifecycle marketing function to reignite this flywheel. In 2H, you can also expect to see us focus on SEO for reserve to drive organic traffic here simplifying the UX of the experience, reinforcing our fixed guarantee, improving our upsell experience and focusing on turning our units as efficiently as possible to maximize revenue. We are very optimistic about continued growth in reserve in H2.

從歷史上看，新客戶的儲備成長是重複訂單和追加銷售訂閱的健康來源。我們計劃利用重振的生命週期行銷功能來重新點燃這個飛輪。在2H 中，您還可以期待看到我們專注於SEO 儲備，以推動自然流量，簡化體驗的用戶體驗，加強我們的固定保證，改善我們的追加銷售體驗，並專注於盡可能有效地轉變我們的單位以最大化收入。我們對下半年儲備的持續成長非常樂觀。

From a product perspective, we completed several big tech projects in Q2 that were aimed at improving important parts of the prospect funnel and making the site even faster across surfaces. We also made several changes designed to simplify our checkout process that have in total almost doubled checkout completion rate compared to the first half of the year.

從產品的角度來看，我們在第二季度完成了幾個大型科技項目，旨在改進潛在客戶漏斗的重要部分，並使網站在各個表面上更快。我們也進行了一些旨在簡化結帳流程的更改，與上半年相比，結帳完成率總共幾乎翻了一番。

We believe that this should have positive impacts on conversion throughout the second half of the year. We upgraded the speed and performance of all the key pages on the site significantly. Our grids, for example, are loading almost 10 times faster now than they were at the beginning of the year, which has lowered our bounce rates on these pages by around 30%.

我們認為這應該會對整個下半年的轉換產生正面影響。我們大幅提升了網站上所有關鍵頁面的速度和效能。例如，我們的網格現在的載入速度比年初快了近 10 倍，這使這些頁面的跳出率降低了約 30%。

As we updated performance, we've been able to more easily update the UI of the site, such as making our product detail pages even more compelling, which is the increase to add to bag rate and very importantly allows us to recognize gains in SEO faster. We plan to invest significantly into SEO in the second half of the year, geared towards making recognizable gains to organic traffic as a result.

隨著我們更新效能，我們能夠更輕鬆地更新網站的UI，例如使我們的產品詳細資訊頁面更加引人注目，這會增加添加到購物袋的比率，非常重要的是使我們能夠認識到SEO 方面的收益快點。我們計劃在下半年對搜尋引擎優化進行大量投資，以期獲得可觀的自然流量收益。

Finally, we've made our photo review process more seamless, which has continued to dramatically improve the amount of reviews were receiving per product. Our customer reviews are critical tool in helping new customers determine whether an item will fit them and increased comfort with sizing, which again drives conversion.

最後，我們使照片審核流程更加無縫，這持續顯著提高了每個產品收到的審核數量。我們的客戶評論是幫助新客戶確定商品是否適合他們並提高尺寸舒適度的重要工具，這再次推動了轉換。

We believe that the work completed in first half marks a significant milestone for Rent the Runway as many of the major tech projects we embarked on, in some cases several years ago to upgrade our site and funnel performance, have either been completed or in good shape. We therefore feel confident shifting the way we work into a simplified structure where we have aligned behind the top three priorities for the next few years and have aggressively stacked cross-functional teams against these business goals.

我們相信，上半年完成的工作標誌著 Rent the Runway 的一個重要里程碑，因為我們開展的許多重大技術項目（在某些情況下是幾年前升級我們的網站和渠道性能的）已經完成或狀況良好。因此，我們有信心將工作方式轉變為簡化的結構，在未來幾年中，我們將優先考慮三大優先事項，並根據這些業務目標積極組建跨職能團隊。

We also believe that our cross-functional teams are well positioned and with the right skill sets to execute, speed, and agility, and operate akin to a mini startup. These goals include growing our reserve business and therefore our customer funnel into the company increasing subscriber loyalty, in particular, during for onboarding experience and increasing organic traffic to Rent the Runway.

我們也相信，我們的跨職能團隊定位良好，擁有適當的執行、速度和敏捷性技能，並且像小型新創公司一樣運作。這些目標包括發展我們的儲備業務，從而使我們的客戶流入公司，提高訂戶忠誠度，特別是在入職體驗期間，並增加 Rent the Runway 的自然流量。

Turning next to marketing. With a new team in place, we have continued to make quarter-over-quarter progress in diversifying our marketing channels, overhauling and modernizing our creative to make all of our touch points more aspirational, and getting the brand back out in front of consumers. We have evolved our content development so that is more rapid and agile as we believe that timely and engaging content is critical to improving the performance of all of our channels, including social and our paid performance.

接下來轉向行銷。隨著新團隊的到位，我們在行銷管道多元化、創意革新和現代化方面繼續取得季度環比進展，使我們所有的接觸點更具吸引力，並使品牌重新出現在消費者面前。我們已經改進了內容開發，使其更加快速和敏捷，因為我們相信及時且有吸引力的內容對於提高我們所有管道的績效（包括社交和付費績效）至關重要。

You can expect to see new organic content launch on our channels with much higher frequency. In Q2, we saw tax improve year over year by nearly 15%. Some of this can be attributed to diversifying our channel mix. We've seen some early success marketing on TikTok and Pinterest, given our target demographics.

您可以期待在我們的頻道上以更高的頻率看到新的有機內容的發布。第二季度，我們看到稅收年增了近 15%。其中一些可以歸因於我們渠道組合的多元化。鑑於我們的目標人群，我們已經在 TikTok 和 Pinterest 上看到了一些早期成功的營銷。

In the second half of the year, we're focused on turning back on brand marketing, which alongside SEO, we hope will catalyze growth in organic traffic. One of the elements of our strategy are monthly icon campaigns. We plan to partner with buzzy celebrity talent for activations focused on curating their iconic closets and offering it as rentable to Rent the Runway subscribers. This furthers our mission of celebrating real talented, fashionable women, all over the world and telling their stories.

今年下半年，我們的重點是品牌行銷，與搜尋引擎優化一起，我們希望能夠促進自然流量的成長。我們策略的要素之一是每月的圖標活動。我們計劃與熱鬧的名人明星合作活動，重點是策劃他們的標誌性衣櫥，並將其提供給 Rent the Runway 訂閱者出租。這進一步推動了我們的使命：頌揚世界各地真正有才華、時尚的女性並講述她們的故事。

Later this month, we're taking Rent the Runway on the road to some of the biggest college campuses in one of our fastest growing regions for RTR, the South. We'll visit campuses like the University of Texas, Ole Miss, and University of Georgia, where the social culture is strong and we see an opportunity to bring RTR to the women on-campus who need a resource for Greek life and their many events.

本月晚些時候，我們將搭乘「Rent the Runway」前往一些最大的大學校園，這些大學校園位於 RTR 發展最快的地區之一——南部。我們將參觀德克薩斯大學、密西西比大學和喬治亞大學等校園，這些地方的社會文化很濃厚，我們看到了將 RTR 帶給校園內需要希臘生活及其眾多活動資源的女性的機會。

This program is expected to include in real-life activations on campus and will involve college influencers and the relaunch of our college ambassador program, which was a source of tremendous brand awareness for Rent the Runway pre-COVID. And right on deck are some fun, social first activations for Fashion Week in New York.

該計劃預計將包括在校園的現實活動中，並將涉及大學影響者和我們的大學大使計劃的重新啟動，該計劃是新冠疫情爆發前 Rent the Runway 巨大品牌知名度的來源。紐約時裝週上還有一些有趣的社交活動。

We believe our designer assortment is one of the biggest competitive advantages, so reinforcing Rent the Runway is positioned as the rental company that allows you to rent pieces straight from the runway is important.

我們相信我們的設計師品種是最大的競爭優勢之一，因此加強 Rent the Runway 的定位是讓您可以直接從秀台上租賃作品的租賃公司，這一點非常重要。

On inventory, this is an important and exciting time of the year where we get to plan our 2025 buy. For 2024, we successfully executed on our debt strategy and have seen outsized demand for the 2024 buy in the first half of the year.

就庫存而言，這是一年中重要且令人興奮的時刻，我們可以規劃 2025 年的購買。對於 2024 年，我們成功執行了債務策略，並在上半年看到了 2024 年購買的巨大需求。

Looking ahead to 2025, we want to solidify rental runways position as the fashion leader in the rental space by refreshing our assortment and leaning into our strength in dresses. We plan to overhaul our brand matrix to provide our customer an even more elevated, aspirational, emotional, and fashion-forward experience.

展望 2025 年，我們希望透過更新我們的產品種類並發揮我們在連身裙方面的優勢，鞏固租賃跑道作為租賃領域時尚領導者的地位。我們計劃徹底改革我們的品牌矩陣，為我們的客戶提供更崇高、令人嚮往、情感豐富和時尚前衛的體驗。

We see opportunity across print, color and emotional pieces and plan to maintain depth, but also increased breadth to ensure that we are not only serving our sophisticated core customer but offering an assortment that will attract new customers.

我們看到了印刷、色彩和情感作品的機會，並計劃保持深度，同時增加廣度，以確保我們不僅為複雜的核心客戶提供服務，而且提供能夠吸引新客戶的品種。

In conclusion, I will say the simplification of goals within the company and focus on implementation of the few things that will lead to significant growth has created an energy and excitement inside the company that is palpable and feels great after some difficult years. We're motivated by our momentum and ready to continue growing by continuing to improve our customer offering and experience and getting to our goal of free cash flow breakeven this year. With that, I'll turn it over to Sid.

總之，我想說的是，公司內部目標的簡化以及專注於實施少數能夠帶來顯著增長的事情，在公司內部創造了一種明顯的能量和興奮感，在經歷了一些困難的歲月之後，這種能量和興奮感是顯而易見的，感覺很棒。我們受到我們的動力的激勵，並準備好透過繼續改善我們的客戶服務和體驗並實現今年自由現金流盈虧平衡的目標來繼續成長。這樣，我就把它交給 Sid。

Thanks, Jen, and thank you, everyone, for joining us. We continued to make good progress in the second quarter. Both Q2 revenue and adjusted EBITDA exceeded the high end of our guidance range. Our Q3 2024 revenue guidance of $75 million to $77 million or 3% to 6% revenue growth versus Q3 2023 implies a continued acceleration of revenue growth versus Q1 and Q2 of fiscal 2024 at the midpoint of the guidance range.

謝謝 Jen，也謝謝大家加入我們。第二季我們持續取得良好進展。第二季營收和調整後 EBITDA 都超過了我們指引範圍的上限。我們對2024 年第三季的營收指引為7,500 萬至7,700 萬美元，即與2023 年第三季相比營收成長3% 至6%，這意味著與2024 財年第一季與第二季相比，收入成長將持續加速，處於指導範圍的中點。

As I will discuss further, we are also raising our revenue guidance for fiscal year 2024 and reiterating our commitment to reach free cash flow breakeven for the full year. In short, we expect to grow revenue and significantly improve profitability this year.

正如我將進一步討論的那樣，我們還將提高 2024 財年的收入指引，並重申我們實現全年自由現金流盈虧平衡的承諾。簡而言之，我們預計今年收入將成長，獲利能力將顯著提高。

I would like to take a moment to discuss the year-over-year decline in Q2, ending active subscribers. We believe the primary reason for this year-over-year decline is the significant reductions in promotions this quarter versus last year's second quarter. In fact, excluding subscribers generated from the highest level of promotions in Q2 '23, our year-over-year subscriber growth would have been much better than the 6% decline we reported as of Q2 '24.

我想花點時間討論一下第二季的年減，以及活躍訂閱者的結束。我們認為，年減的主要原因是本季促銷活動與去年第二季相比大幅減少。事實上，如果不包括 23 年第二季最高水準的促銷活動產生的訂戶，我們的訂戶同比增長將比我們截至 24 年第二季報告的 6% 的下降要好得多。

Notably, ending active subscribers as of September 1, 2024, were already roughly flat year over year. We also believe that our stronger revenue performance in Q2 2024, despite lower ending active subscribers, demonstrates the success of our strategy to be less promotional.

值得注意的是，截至 2024 年 9 月 1 日，活躍訂閱用戶數已與去年同期基本持平。我們也相信，儘管活躍訂戶數量較低，但我們在 2024 年第二季的營收表現更為強勁，這表明我們減少促銷的策略是成功的。

As Jen outlined, we are focused on driving innovation and enhancements to the customer experience across nearly every aspect of our business. We are excited by our second half plan. The underlying financial position of the company and our go-forward expectations are considerably stronger versus last year with growing revenue and meaningful improvement in cash flow, which I will walk through in more detail.

正如 Jen 所概述的那樣，我們致力於在業務的幾乎各個方面推動創新和增強客戶體驗。我們對下半年的計畫感到興奮。與去年相比，公司的基本財務狀況和我們的未來預期要強得多，收入不斷增長，現金流也顯著改善，我將更詳細地介紹這一點。

Our Q3 and full year 2024 guidance of positive indicators of further financial progress. We are growing revenue while spending less on promotions. Our reserve business is demonstrating stronger trends on a year-over-year basis and resale is growing at high levels versus last year.

我們對第三季和 2024 年全年財務進一步進展的積極指標進行了指導。我們在增加收入的同時減少促銷費用。我們的儲備業務呈現逐年強勁的趨勢，轉售業務與去年相比呈現高水準成長。

Let me now review our financial results for the quarter. We ended Q2 '24 with 129,073 ending active subscribers, down 6.2% year over year. Average active subscribers during the quarter were 137,455 versus 141,393 subscribers in the prior year, a decrease of 2.8%. Ending active subscribers decreased from 145,837 subscribers at the end of Q1 2024, due primarily to seasonally weaker acquisitions.

現在讓我回顧一下我們本季的財務表現。截至 2024 年第二季度，我們的活躍訂閱人數為 129,073 名，年減 6.2%。該季度的平均活躍訂閱者數量為 137,455 人，而去年同期為 141,393 人，下降了 2.8%。截至 2024 年第一季末，活躍訂閱用戶數量為 145,837 名，主要由於季節性收購疲軟所致。

Total revenue for the quarter was $78.9 million, up $3.2 million or 4.2% year over year and up $3.9 million or 5.2% quarter over quarter. Subscription and reserve rental revenue was up slightly year over year in Q2 '24, primarily due to growth in reserve and higher average revenue per subscriber as a result of lower promotional spending. Although revenue increased 35.1% or $2.7 million year-over-year due to increased focus on our resale business, which drove incremental cash flow and customer loyalty.

該季度總營收為 7,890 萬美元，年增 320 萬美元，成長 4.2%，季增 390 萬美元，成長 5.2%。 2024 年第 2 季度，訂閱和預留租賃收入較去年同期略有成長，主要是由於促銷支出減少導致預留成長和每訂戶平均收入增加。儘管由於我們更加重視轉售業務，營收年增了 35.1% 或 270 萬美元，這推動了現金流量和客戶忠誠度的增加。

Fulfillment costs were $20.6 million in Q2 '24 versus $22.5 million in Q2 '23 and $20.6 million in Q1 '24. Fulfillment costs as a percentage of revenue were lower year over year at 26.1% of revenue in Q2 '24 compared to 29.7% of revenue in Q2 '23.

24 年第二季的履行成本為 2,060 萬美元，而 23 年第二季為 2,250 萬美元，24 年第一季為 2,060 萬美元。履行成本佔收入的百分比年減，24 年第二季佔營收的 26.1%，而 23 年第二季佔營收的 29.7%。

Fulfillment costs benefited from a new transportation contract with UPS, continued warehouse efficiencies and higher revenue per order, primarily from our resale business. Gross margins were 41.1% in Q2 '24 versus 43.9% in Q2 '23.

履行成本受益於與 UPS 簽訂的新運輸合約、持續的倉庫效率和每筆訂單收入的增加（主要來自我們的轉售業務）。 2024 年第二季的毛利率為 41.1%，而 2023 年第二季的毛利率為 43.9%。

Q2 '24 gross margins reflect higher rental product costs due to increased investment in inventory in fiscal year '23, offset partially by improved fulfillment costs. Increased investment in inventory reflects last year's depth adjustments to increase inventory in-stock rates in fiscal '23 and beyond.

24 年第二季的毛利率反映了由於 23 財年庫存投資增加而導致的租賃產品成本上升，但部分被履行成本的提高所抵消。庫存投資的增加反映了去年為提高 23 財年及以後的庫存存貨率而進行的深度調整。

Q2 '24. Gross margins increased quarter over quarter to 41.1% from 37.9% in Q1 '24 due to seasonally lower revenue share payments and improved fulfillment costs as a percentage of revenue. Operating expenses were 17.7% lower year over year, due primarily to the favorable impact of our cost reduction efforts and lower stock-based compensation expenses.

24 年第 2 季。由於收入分成付款季節性下降以及履行成本佔收入的比例提高，毛利率環比增長，從 2024 年第一季的 37.9% 增至 41.1%。營運費用較去年同期下降 17.7%，這主要是由於我們降低成本的努力和較低的股票薪酬費用的有利影響。

Total operating expenses, which include technology, marketing, and G&A were 49% of revenue in Q2 '24 versus 62.1% of revenue in Q2 '23 and 55.2% of revenue in Q1 '24. Adjusted EBITDA for the quarter was $13.7 million or 17.4% of revenue versus $7.7 million or 10.2% of revenue in the prior year.

總營運支出（包括技術、行銷和一般行政費用）在 24 年第二季佔收入的 49%，而在 23 年第二季佔收入的 62.1%，在 24 年第一季佔收入的 55.2%。本季調整後 EBITDA 為 1,370 萬美元，佔營收的 17.4%，而前一年為 770 萬美元，佔營收的 10.2%。

Adjusted EBITDA for the six months ending July 31, 2024, was approximately $20.2 million or 13.1% of revenue versus $12.2 million or 8.1% of revenue in the prior year. Adjusted EBITDA improvement year over year reflects the impact of our fixed cost reduction efforts, higher revenue, and lower fulfillment costs, partially offset by higher revenue share payments due to a greater proportion of revenue share units.

截至 2024 年 7 月 31 日的六個月，調整後 EBITDA 約為 2,020 萬美元，佔營收的 13.1%，而前一年為 1,220 萬美元，佔營收的 8.1%。調整後的 EBITDA 同比改善反映了我們削減固定成本、增加收入和降低履行成本的影響，但由於收入分成單位比例增加而導致的收入分成支付額增加，部分抵消了這一影響。

Free cash flow for Q2 '24 was negative $4.5 million versus negative $17.5 million in Q2 '23, due primarily to lower cost of rental product and higher profitability. Free cash flow for the six months ending July 31, 2024, was negative $5.9 million versus negative $29.6 million in the six months ending July 31, 2023.

24 年第二季的自由現金流為負 450 萬美元，而 23 年第二季為負 1,750 萬美元，這主要是由於租賃產品成本降低和獲利能力提高。截至2024年7月31日的六個月的自由現金流為負590萬美元，而截至2023年7月31日的六個月的自由現金流為負2960萬美元。

Free cash flow in the second half of fiscal 2024 is expected to be approximately positive $6 million. We expect that the improvement will primarily be due to lower operating expenses and lower capital expenditures in the second half versus the first half of fiscal 2024.

2024 財年下半年的自由現金流預計約 600 萬美元。我們預計這項改善主要是由於 2024 財年下半年營運費用和資本支出較上半年減少。

Lower operating expenses are driven largely by first half weighted marketing expenses. We also expect improved working capital and higher revenue in the second half of fiscal '24 versus the first half of fiscal '24. We expect that the majority of the improvement in second half free cash flow will be driven by timing of operating and capital expenditures, where we have good visibility.

營業費用下降主要是由上半年加權行銷費用所推動的。我們也預計，與 24 財年上半年相比，24 財年下半年的營運資本和收入將有所改善。我們預計下半年自由現金流的大部分改善將由營運和資本支出的時機推動，我們在這方面有良好的可見度。

I will now discuss guidance for Q3 '24 and fiscal year 2024. Let me start with Q3. We expect revenue to be between $75 million and $77 million and. Adjusted EBITDA margins to be between 13% and 15% of revenue. As outlined earlier, Q3 revenue guidance implies 3% to 6% growth versus Q3 '23, continuing an improving revenue growth trajectory at the midpoint of the guidance range.

我現在將討論 24 年第三季和 2024 財年的指導。我們預計收入將在 7500 萬美元至 7700 萬美元之間。調整後的 EBITDA 利潤率為營收的 13% 至 15%。如前所述，第三季營收指引意味著與 23 年第三季相比成長 3% 至 6%，繼續在指導範圍的中點改善營收成長軌跡。

As a reminder, revenue growth was negative 6.3% year over year in Q3 '23, approximately flat year over year in Q4 '23, positive 1.1% year over year in Q1 '24, positive 4.2% year over year in Q2 '24, and is expected to be between 3% and 6% year over year in Q3 '24.

提醒一下，23 年第 3 季的營收年比負成長 6.3%，23 年第 4 季同比大致持平，24 年第 1 季年比負成長 1.1%，24 年第 2 季年比正成長 4.2%，預計2024 年第三季年增3% 至6%。

Our current business performance gives us the confidence to increase our full year 2024 revenue guidance to between 2% and 6% growth versus fiscal '23. This increase reflects improving trends in our reserve business, solid progress on growing our retail business, and improved revenue per subscriber versus fiscal '23.

我們目前的業務表現使我們有信心將 2024 年全年收入指引提高到與 23 財年相比成長 2% 至 6%。這一成長反映了我們的儲備業務趨勢的改善、零售業務成長的堅實進展以及與 23 財年相比每用戶收入的提高。

We continue to expect adjusted EBITDA margins of between 15% and 16% of revenue. We also continue to expect to be free cash flow breakeven for fiscal '24, as mentioned previously. Thank you, and we will now take your questions.

我們仍預期調整後的 EBITDA 利潤率為營收的 15% 至 16%。如前所述，我們也持續預期 24 財年的自由現金流將達到損益兩平。謝謝您，我們現在將回答您的問題。

Matt O'Connor, Citizen's JMP Securities.

馬特·奧康納 (Matt O'Connor)，公民 JMP 證券公司。

Great. Thank you for taking my questions. And my first one is just on resurrecting past users. Can you just talk about what you're seeing there currently? And then maybe just talk about the broader opportunity.

偉大的。感謝您回答我的問題。我的第一個目標就是復活過去的使用者。您能談談您目前在那裡看到的情況嗎？然後也許只是談論更廣泛的機會。

So we're seeing strength in rejoin rates of past customers. I think that we've always seen that as we make improvements in customer experience, the first people to notice are people who are actively engaged on our marketing, kind of coms list, people who have been customers before. So we're seeing that that's actually a tremendous source of growth for us now are re-joiners.

因此，我們看到過去客戶的重新加入率強勁。我認為我們一直看到，當我們改進客戶體驗時，首先註意到的人是那些積極參與我們行銷的人，例如coms列表，以前曾經是客戶的人。所以我們看到，這實際上是我們重新加入者的巨大成長源。

And then just the opportunity for us is big. You know, obviously, the market is growing very quickly. It has gone from being an early adopter behavior to being a behavior rental, being a behavior that's way more mainstream. And over the past few years, that Rent the Runway until 2024, we have been heavily focused on cost and profitability.

那我們的機會就很大。你知道，顯然，市場成長得非常快。它已經從早期採用者行為轉變為行為租賃，成為更主流的行為。在過去的幾年裡，從租賃跑道到 2024 年，我們一直非常關注成本和獲利能力。

Now, we have that clear vision to free cash flow breakeven, and we've reoriented the entire company around growth. We've hired the right people, we've reignited marketing creative. We've simplified our goals. And these actions give me the confidence and you can see it demonstrated in our metrics that growth is coming for RTR.

現在，我們有了自由現金流盈虧平衡的清晰願景，並且我們已經圍繞成長重新定位了整個公司。我們聘請了合適的人才，重新激發了行銷創意。我們簡化了我們的目標。這些行動給了我信心，你可以在我們的指標中看到 RTR 即將成長。

We have momentum, and we have momentum across all different aspects of our business right now. It's not just in one area. So I'm really excited about second half. And I'm particularly excited about how our strategies that we've deployed, where we put these cross-functional mini start-ups on really simplified business goals are going to help us into 2025 and 2026 ignite tremendous growth for RTR.

我們有動力，現在我們業務的各個方面都有動力。這不僅僅是在一個地區。所以我對下半場感到非常興奮。我特別興奮的是，我們部署的策略，我們將這些跨職能的小型新創公司置於真正簡化的業務目標上，將幫助我們在 2025 年和 2026 年點燃 RTR 的巨大成長。

Great. That's very helpful. And then my second one is just on the reserve business. Going off of your point on just the cross-functional teams, understood that that's contributing to the success that you guys are having there. But maybe just from a product perspective, what do you see that these teams are coming up with that's really driving the acceleration in that business?

偉大的。這非常有幫助。然後我的第二個就是關於儲備業務。偏離了你對跨職能團隊的觀點，我明白這有助於你們在那裡取得成功。但也許僅僅從產品的角度來看，您認為這些團隊正在想出什麼來真正推動該業務的加速？

So the teams are focused on the full end to end experience for reserves. So to be clear, until quite recently, until June, there had been no dedicated focus of a cross-functional team to reserve in many years. And we hadn't seen that business decline for the past few years.

因此，團隊專注於預備隊的完整端到端體驗。因此需要明確的是，直到最近，直到六月，多年來一直沒有專門的跨職能團隊來保留。過去幾年我們並沒有看到業務下滑。

Just by nature of focus on our special event business, we were able to go from declining year over year revenues to up 10% year over year in July. And what I mentioned up 20% year over year in August with new customers, importantly, up close to 50% year over year.

正是由於我們專注於特殊活動業務，我們的收入得以從年減的狀態轉為 7 月年增 10%。我提到的 8 月新客戶數量年增 20%，重要的是，年成長接近 50%。

Some of the things that the team are focused on are maximizing our inventory availability to make sure that our units can turn as many times as possible and hit as many customers as possible. They're focused on our booking windows. They're focused on the UX and UI of the experience. They're focused on making sure that all of our customers understand that we give them a big guarantee. So they have nothing to fear in coming to RTR will always ensure that they have something often to wear for their event.

團隊關注的一些事情是最大限度地提高我們的庫存可用性，以確保我們的設備可以盡可能地週轉並吸引盡可能多的客戶。他們專注於我們的預訂窗口。他們專注於使用者體驗和使用者介面。他們專注於確保我們所有的客戶都明白我們為他們提供了巨大的保證。因此，他們無需擔心來到 RTR，總是會確保他們有適合活動的常穿衣服。

So you will see us make agile changes to this business over second half. And I feel very confident in improved momentum in this business, and in importantly, having this be a tremendous funnel of new customers into RTR.

因此，您將看到我們在下半年對該業務做出敏捷的改變。我對這項業務的成長勢頭非常有信心，更重要的是，這將成為新客戶進入 RTR 的巨大管道。

Thank you so much.

太感謝了。

Ashley Helgans, Jefferies.

阿什利·赫爾根斯，杰弗里斯。

Hi, it's Don Bradley. Thanks for taking our question. Wondering to start off with marketing. You talked about several different exciting marketing initiatives. Can you discuss your willingness to lean into marketing to stimulate sales growth, kind of depending on what ROIs you see? And maybe if you could kind of talk about what you're most excited about in terms of your marketing initiatives in the second half?

嗨，我是唐·布拉德利。感謝您提出我們的問題。想從行銷開始。您談到了幾種不同的令人興奮的行銷舉措。您能否討論一下您是否願意依靠行銷來刺激銷售成長，這在某種程度上取決於您看到的投資報酬率？也許您能談談下半年的行銷舉措中您最興奮的是什麼？

Yeah. Look, I think the important thing to realize here is we historically have never even had a Chief Marketing Officer. We have not really had people focused on this area in a way that consider the entirety of the marketing experience. It's not marketing for us, historically, has been very heavily focused on pay channel, on a few pay channels in particular.

是的。聽著，我認為這裡要認識到的重要一點是，我們歷史上從未有過首席行銷長。我們還沒有真正讓人們以考慮整個行銷體驗的方式關注這一領域。從歷史上看，這對我們來說不是行銷，而是非常關注付費管道，特別是一些付費管道。

And I think what we're trying to do now is evaluate very critically what is the return we're getting on each of those paid channels, how much can we broaden out those channels to increase the kind of returns we're getting there? Can we build out new channels using whether it's affiliates, whether it's influencers, just new ways in which we can reach customers.

我認為我們現在要做的是非常批判性地評估我們在每個付費管道上獲得的回報是多少，我們可以在多大程度上拓寬這些管道以增加我們在那裡獲得的回報？我們能否利用附屬機構、影響者以及接觸客戶的新方式來建立新管道？

Now as a result of doing some of this work, what we're finding is that there are opportunities to improve efficiency, take some of the dollars that were probably not working as hard for us, and reinvest those in exciting brand initiatives and other other initiatives that Jen mentioned, a college truck and so on that really allow us to go on to the world and get people excited about what we have to offer.

現在，透過做一些工作，我們發現有機會提高效率，拿出一些對我們來說可能不那麼努力的資金，並將這些資金重新投資於令人興奮的品牌計劃和其他其他項目。倡議，一輛大學卡車等等，確實讓我們能夠走向世界，讓人們對我們所提供的服務感到興奮。

And just to clarify, one thing that said that we and very much did have chief marketing officers and full funnel marketing approach really until COVID. And it's in the post COVID years that the focus had really been, as I've mentioned in previous calls, more on bottom of the funnel and on things that we knew what the ROI was, the very next day.

需要澄清的是，有一件事表明，在新冠疫情爆發之前，我們確實擁有首席行銷長和全漏斗行銷方法。正如我在之前的電話會議中提到的，在新冠疫情之後的幾年裡，重點實際上更多地集中在漏斗底部以及我們第二天就知道投資回報率的事情上。

We, by nature of hiring new talent here, new leadership, new team, we are -- that was the first indication of our desire and willingness to reinvest into marketing in a new way. And reinvesting means diversifying our channels. It means pulling up from being a solely bottom of funnel marketer to now being mid-funnel and full funnel, which is what we did for the first 10, 11, 12 years of the business.

我們本質上是在這裡招募新人才、新領導層、新團隊，這是我們渴望並願意以新方式對行銷進行再投資的第一個跡象。再投資意味著我們的管道多樣化。這意味著從純粹的漏斗底部行銷人員轉變為現在的漏斗中部和完整漏斗行銷人員，這就是我們在業務的前 10 年、11 年、12 年所做的事情。

It is fundamentally to us one of the key goals of our company. As I mentioned, we have three goals, we're aligning behind. One of those three goals is increasing organic traffic. The way that you increase organic traffic is yes, SEO is a component of it. But the other larger component is making customers fall in love with you again so that they come to your site directly.

從根本上來說，這是我們公司的主要目標之一。正如我所提到的，我們有三個目標，我們正在努力實現這一目標。這三個目標之一是增加自然流量。增加自然流量的方法是肯定的，SEO 是其中的一個組成部分。但另一個更大的組成部分是讓客戶再次愛上您，以便他們可以直接訪問您的網站。

How do you do that? It's via investment into brand? It's via investment into in real life events, into investor networks, into influencer networks, into things that we did very successfully in the past that we're bringing back modernizing them for 2024.

你怎麼做到的？是透過品牌投資嗎？透過對現實生活事件、投資者網絡、影響者網絡以及我們過去做得非常成功的事情的投資，我們將在 2024 年對它們進行現代化改造。

And we're really excited because the brand awareness of Rent the Runway is extremely high. The brand love for this company is incredibly high. And we're just looking to reactivate some of that kind of lead and love that's out there.

我們真的很興奮，因為 Rent the Runway 的品牌知名度非常高。人們對這家公司的品牌喜愛度非常高。我們只是希望重新激活一些現有的領導和愛。

We mentioned on the last call that we had done these in real life events in New York and Atlanta. And we saw hundreds and hundreds and hundreds of women standing on lines around the block to get into in our PR events. That is just demonstration of the palpable emotion that people have towards this brand.

我們在上次電話會議中提到，我們已經在紐約和亞特蘭大的現實生活中做到了這些。我們看到成百上千的女性站在街區周圍排隊參加我們的公關活動。這只是人們對這個品牌的明顯情感的體現。

We haven't given our customers a way to demonstrate that palpable emotion over the last few years because of how bottom of the funnel focus we have been. And so by reigniting everything around marketing, I think that it drive -- not will not only drive higher organic traffic, but higher customer engagement and higher customer virality.

在過去的幾年裡，我們沒有為客戶提供一種方式來展示這種明顯的情感，因為我們一直處於漏斗的底部。因此，透過重新點燃行銷方面的一切，我認為它不僅會帶來更高的有機流量，還會帶來更高的客戶參與度和更高的客戶病毒式傳播。

So just be on the lookout for an enormous amount of activity in the second half of the year that we mentioned in the call is on deck, and we're back.

因此，請留意下半年我們在電話會議中提到的大量活動，我們會回來的。

I think the meat of the meeting, one interesting point to highlight here is if you actually examine all of the decisions we've made in the past, we spend a lot of time addressing costs -- addressing the cost structure. We spent a lot of time thinking about inventory and making sure inventory in-stock rates were appropriate for our customers in fiscal fiscal '23.

我認為會議的重點是，這裡要強調的一個有趣的一點是，如果你真正檢查我們過去所做的所有決定，我們會花費大量時間來解決成本問題——解決成本結構問題。我們花了很多時間考慮庫存，並確保庫存率適合我們的客戶在 23 財年的情況。

If you look at all of the decisions we've made post that point in time, it should give you a pretty good indication of how much we're interested in leaning into growth and into marketing and into the kinds of things that will make customers fall in love with.

如果你看看我們在那個時間點做出的所有決定，它應該可以很好地表明我們對成長、行銷以及那些能夠吸引客戶的事情有多大興趣。

So if you think about the events we're doing in real life, if you think about the New York City store, if you think about the college tour, I mean, all of the things that're broadening our channel, all of the work we're doing is really critically focused on just growth and driving growth.

因此，如果你想想我們在現實生活中所做的活動，如果你想想紐約市的商店，如果你想想大學之旅，我的意思是，所有拓寬我們管道的事情，所有我們正在做的工作確實非常注重成長和推動成長。

That's really helpful. And then wanted to revisit in light of kind of challenged consumer wanted to revisit your decision to reduce promos? And just kind of talk about learnings from that decision so far and how you're thinking about your price points.

這真的很有幫助。然後想根據受到挑戰的消費者的情況重新審視您減少促銷的決定？只是談談到目前為止從該決定中學到的教訓以及您如何考慮您的價格點。

Sure. So just a quick recap of what we've discussed previously. Historically, we used to have a lot of promotions that were multi-month in nature, so we would do two- and three-month promotions. We have gone out and changed all of those promotions to largely be single month focus or one-month focused promotions.

當然。快速回顧一下我們之前討論過的內容。從歷史上看，我們曾經有過很多為期數月的促銷活動，所以我們會進行兩個月和三個月的促銷活動。我們已經將所有這些促銷活動改為主要以單月為重點或以一個月為重點的促銷活動。

The other thing we discussed when last year at the time was we tested a variety of different promotional strategies, some low, some high in Q2 of '23. And what we have learned is to discontinue some of the promotions that were not returning adequate dollars to us that were not beneficial to retention and so on and to continue promotions to targeted customer segments that we thought were beneficial to bringing customers in.

去年我們討論的另一件事是，我們在 23 年第二季測試了各種不同的促銷策略，有些低，有些高。我們了解到的是，停止一些沒有為我們帶來足夠資金、不利於保留等的促銷活動，並繼續針對我們認為有利於吸引客戶的目標客戶群進行促銷活動。

And so what you're seeing in terms of the sub count for Q2 '24 versus Q2 '23 is really just a reflection of discontinuing and not repeating some of the particularly high levels of promotions that we weren't particularly satisfied with. And so as we pointed out in September, sub count is roughly flat year over year.

因此，您所看到的 24 年第 2 季與 23 年第 2 季的子計數實際上只是反映了停止和不再重複一些我們不太滿意的特別高水平的促銷活動。因此，正如我們在 9 月指出的那樣，子計數與去年同期大致持平。

So clearly those promotions didn't have a strong retention element to them. And I think where we are now is pretty satisfied with where the promotional cadence of the business is. We think it's in a healthy place. And we are really spending all of our time not focused on promotion, but really focused on all of the other ways to drive growth and retention for our customers.

很明顯，這些促銷活動對他們來說並沒有很強的保留因素。我認為我們現在對業務的促銷節奏非常滿意。我們認為它處於一個健康的地方。我們確實把所有時間都花在了促銷上，而不是專注於推動客戶成長和保留的所有其他方法。

And I think that the reserve business and the momentum that we've had there, where again, we've seen 50% new customer growth into that business in August is testament that without incremental marketing dollars, without promotions without detriment in price in those arenas, by nature of improving the customer experience and focusing on maximizing our inventory availability, you can drive a lot more customers into RTR.

我認為儲備業務和我們在那裡的勢頭，我們再次看到 8 月份該業務的新客戶增長了 50%，這證明了在沒有增量營銷資金、沒有促銷而不損害價格的情況下，這些業務競技場，本質上是改善客戶體驗並專注於最大限度地提高我們的庫存可用性，您可以吸引更多客戶進入RTR。

And I think that that's due to the product market fit this business and it's due to the value that we already give the customer by nature of enabling her to rent a designer dress for around 10% to 15% of the retail price. That is huge value that makes our price points more competitive with fast fashion then with traditional designer fashion.

我認為這是因為產品市場適合這項業務，也是因為我們本質上已經為客戶提供了價值，讓她能夠以零售價的 10% 到 15% 左右的價格租用一件設計師服裝。這是巨大的價值，使我們的價格比快時尚比傳統設計師時裝更具競爭力。

That's great color. Thanks so much. And best of luck.

那顏色真棒。非常感謝。祝你好運。

Thank you. There are no further questions at this time. I would now like to turn the call back over to management for any closing thoughts.

謝謝。目前沒有其他問題。我現在想將電話轉回給管理層，以徵求任何結束意見。

Thanks for joining us today. We're really excited about the second half of the year and hope you stay tuned.

感謝您今天加入我們。我們對下半年感到非常興奮，希望您繼續關注。

Thank you so much.

太感謝了。

And this concludes today's conference, and you may disconnect your lines at this time.

今天的會議到此結束，大家可以掛斷電話了。