Shift Technologies Inc (SFT) 2022 Q4 法說會逐字稿

Good day, and welcome to the Shift Technologies, Inc. Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎來到 Shift Technologies, Inc. 2022 年第四季度收益電話會議。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Ms. Susan Lewis, Vice President of Investor Relations. Please go ahead, ma'am.

我現在想將會議轉交給投資者關係副總裁 Susan Lewis 女士。請繼續，女士。

Good afternoon, and welcome to the Shift Technologies Fourth Quarter and Full Year 2022 Earnings Call. Joining me on the call today is CEO, Jeff Clementz; and CFO, Oded Shein.

下午好，歡迎來到 Shift Technologies 第四季度和 2022 年全年收益電話會議。今天和我一起參加電話會議的是 CEO Jeff Clementz；首席財務官 Oded Shein。

During our remarks, we will make some forward-looking statements, which represent our current judgment on what the future may hold. And while we believe these judgments are reasonable, these forward-looking statements are not guarantees of future performance and involve certain assumptions, risks and uncertainties. Actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements.

在我們的發言中，我們將做出一些前瞻性陳述，代表我們目前對未來可能發生的情況的判斷。雖然我們認為這些判斷是合理的，但這些前瞻性陳述並不是對未來業績的保證，並且涉及某些假設、風險和不確定性。實際結果和結果可能與任何前瞻性陳述中明示或暗示的內容存在重大差異。

Please refer to our filings with the SEC for a full discussion of the factors that may affect any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise after this conference call.

請參閱我們提交給美國證券交易委員會的文件，以全面討論可能影響任何前瞻性陳述的因素。我們沒有義務在本次電話會議後公開更新任何前瞻性陳述，無論是由於新信息、未來事件還是其他原因。

During the course of the call, we will be referring to non-GAAP measures as defined and reconciled in our earnings materials.

在電話會議期間，我們將參考我們的收益材料中定義和協調的非 GAAP 措施。

With that said, I will now turn the call over to Jeff.

話雖如此，我現在將把電話轉給傑夫。

Thank you, Susan, and good afternoon, everyone. 2022 was a year of significant change for Shift. Given auto industry and capital market dynamics, we adjusted our strategy to prioritize balance sheet health, reduce cash burn and accelerate our path to profitability.

謝謝你，蘇珊，大家下午好。 2022 年是 Shift 發生重大變化的一年。鑑於汽車行業和資本市場的動態，我們調整了戰略，將資產負債表的健康放在首位，減少現金消耗並加快盈利之路。

To that end, over the past several months, we have rapidly executed a number of strategic initiatives in a short period of time. This included our merger with CarLotz, which closed in December bolstering our balance sheet and bringing omnichannel capabilities. We reduced our geographic footprint both at Shift and CarLotz and enacted other cost-cutting measures, such as reducing operating and corporate expenses in turn, lowering headcount.

為此，在過去幾個月裡，我們在短時間內迅速執行了多項戰略舉措。這包括我們與 CarLotz 的合併，該合併於 12 月完成，加強了我們的資產負債表並帶來了全渠道能力。我們減少了 Shift 和 CarLotz 的地理足跡，並製定了其他削減成本的措施，例如減少運營和公司開支，減少員工人數。

These were not easy decisions, but our teams have done an incredible job to continue innovating and executing throughout the change, and I can't thank them enough for all their hard work over the past few months. Ed will cover our financial results shortly, but let me just comment that in the fourth quarter, excluding the impact of the December acquisition, both revenue and adjusted EBITDA loss came in range of the guidance provided in our third quarter call for Ship standalone.

這些都不是容易的決定，但我們的團隊在整個變革過程中繼續創新和執行方面做得非常出色，我對他們過去幾個月的辛勤工作感激不盡。 Ed 將很快介紹我們的財務業績，但我只想評論一下，在第四季度，不包括 12 月收購的影響，收入和調整後的 EBITDA 損失都在我們第三季度獨立船舶呼籲中提供的指導範圍內。

Before I turn to our strategic priorities, I want to emphasize that cash usage and maintaining balance sheet health is our top priority. We expect sequential improvement throughout 2023 in units sold, unit economics and EBITDA. We also expect our cash use to moderate significantly in the coming quarters. We acknowledge the need for additional capital to get to profitability, but we believe that based on our current outlook, we have sufficient cash to execute our strategy.

在我談到我們的戰略重點之前，我想強調現金使用和保持資產負債表健康是我們的首要任務。我們預計整個 2023 年的銷量、單位經濟效益和 EBITDA 都會有所改善。我們還預計未來幾個季度我們的現金使用將顯著減少。我們承認需要額外的資本來實現盈利，但我們相信，根據我們目前的前景，我們有足夠的現金來執行我們的戰略。

We are actively exploring a variety of avenues to maximize shareholder value and to fund future business needs. Turning to our first strategic priority, achieving positive unit economics by expanding GPU and leverage in sales and marketing, while tightly controlling G&A expenses. We believe that our work in the second half of 2022 and first quarter of 2023 has adequately adjusted SG&A to the size of the company today.

我們正在積極探索各種途徑來最大化股東價值並為未來的業務需求提供資金。轉向我們的第一個戰略重點，通過擴大 GPU 和在銷售和營銷方面的影響力實現積極的單位經濟效益，同時嚴格控制 G&A 費用。我們認為，我們在 2022 年下半年和 2023 年第一季度的工作已將 SG&A 充分調整為今天公司的規模。

Starting with the CarLotz merger. On December 9, 2022, we closed the transaction and immediately got started on an integration by eliminating duplicative costs and roles. It was a difficult decision in early February, we decided to exit CarLotz's presence on the East Coast. We have also shut down the Downer (sic) [Downers] Grove, Illinois location in order to focus on our core West Coast markets. The remaining CarLotz location in Pomona, California, is where we have the most operating expertise, logistical and brand awareness leverage and ability to scale. We now have 3 markets that serve Los Angeles, the Bay Area and Portland.

從 CarLotz 合併開始。 2022 年 12 月 9 日，我們完成了交易，並立即開始通過消除重複的成本和角色進行整合。在 2 月初，這是一個艱難的決定，我們決定退出 CarLotz 在東海岸的業務。我們還關閉了位於伊利諾伊州 Downer (sic) [Downers] Grove 的工廠，以便專注於我們的核心西海岸市場。 CarLotz 位於加利福尼亞州波莫納的其餘地點是我們擁有最多運營專業知識、物流和品牌知名度影響力以及擴展能力的地方。我們現在有 3 個市場，服務於洛杉磯、灣區和波特蘭。

Turning to the full company. While difficult, we reduced headcount by approximately 30% in the first quarter. In addition to corporate roles, the majority of reductions were due to our move to decentralized sales organization, which occurred in February, which I will discuss in just a moment. We believe that the CarLotz integration and strategic moves to rightsize our SG&A are largely behind us.

轉向整個公司。雖然困難重重，但我們在第一季度裁員了約 30%。除了公司角色外，大部分裁員是由於我們在 2 月份轉向分散的銷售組織，我稍後將討論這一點。我們認為，CarLotz 整合和調整 SG&A 規模的戰略舉措在很大程度上已經落後於我們。

While we remain disciplined on G&A and tightly controlled costs, our focus is on driving leverage through revenue and unit sales growth. This leads to our second strategic priority, increasing penetration in our West Coast markets to grow retail units full. At Shift, we believe that we have a leading technology-forward omnichannel experience. Consumers want the convenience of being able to browse and purchase online, but also want the flexibility of being able to view vehicles and research their purchase in person. We have created a model that enables Shift customers to shop for the vehicle the way they want.

雖然我們在 G&A 方面保持紀律並嚴格控製成本，但我們的重點是通過收入和單位銷售增長來推動槓桿作用。這引出了我們的第二個戰略重點，即提高我們在西海岸市場的滲透率，以充分發展零售業務。在 Shift，我們相信我們擁有領先的技術前瞻性全渠道體驗。消費者希望能夠方便地在線瀏覽和購買，但也希望能夠靈活地查看車輛並親自研究購買情況。我們創建了一個模型，使 Shift 客戶能夠以他們想要的方式購買車輛。

As part of our shift to an omnichannel model, as mentioned earlier, we moved to a decentralized sales organization. Going forward, local teams will take on more ownership of individual deals and will be assisted by a smaller central organization. This model will decrease handoffs and improve the overall customer experience while simultaneously increasing efficiency and cutting costs. Results so far have been positive with the new sales model lowering our cost per unit sold.

如前所述，作為我們向全渠道模式轉變的一部分，我們轉向了分散的銷售組織。展望未來，地方團隊將對個別交易擁有更多的所有權，並將得到較小的中央組織的協助。該模型將減少交接並改善整體客戶體驗，同時提高效率並削減成本。到目前為止，新的銷售模式降低了我們的單位銷售成本，結果是積極的。

Additionally, we have seen positive results from our new buyer checkout and dashboard experience that we talked about last quarter, including increased conversion rates and lower CAC. Turning to our third strategic priority, which is to create a differentiated auto marketplace. Partner dealers on Shift's Marketplace will strategically participate in e-commerce to grow their market share margins and develop long-term relationships with digital customers.

此外，我們從上個季度談到的新買家結賬和儀表板體驗中看到了積極的結果，包括更高的轉化率和更低的 CAC。轉向我們的第三個戰略重點，即創建差異化的汽車市場。 Shift Marketplace 上的合作夥伴經銷商將戰略性地參與電子商務，以增加他們的市場份額利潤並與數字客戶發展長期關係。

Shift customers will benefit from a -- from the marketplace's expanded assortment with the same seamless trusted experience. We will continue to optimize and improve our marketplace platform and expect that we will fully launch later in 2023. In closing, I believe 2 things to still be true today as when I first joined the company. First, we believe the auto industry as a whole is shifting from off-line to online as consumers increasingly prefer digital first transactions. Second, we believe Shift has a differentiated technology asset to power an exceptional omnichannel experience.

輪班客戶將受益於 - 從具有相同無縫可信賴體驗的市場擴展分類中受益。我們將繼續優化和改進我們的市場平台，並預計我們將在 2023 年晚些時候全面推出。最後，我相信有兩件事今天仍然與我剛加入公司時一樣。首先，我們認為隨著消費者越來越喜歡數字化首次交易，整個汽車行業正在從線下轉向線上。其次，我們相信 Shift 擁有差異化的技術資產，可以為卓越的全渠道體驗提供動力。

Shift has repositioned the business to remain on a path to profitability by 2024.

Shift 對業務進行了重新定位，以在 2024 年之前保持盈利。

I'd now like to turn the call over to Oded to review financial results and guidance. Oded?

我現在想把電話轉給 Oded 來審查財務結果和指導。奧德？

Thank you, Jeff, and good afternoon, everyone. I will first go over our fourth quarter financial results and then review our guidance.

謝謝你，傑夫，大家下午好。我將首先回顧一下我們第四季度的財務業績，然後回顧我們的指導意見。

For the fourth quarter of 2022, total revenue was $66 million. This includes 2,520 retail units and 354 wholesale units. Adjusted GPU of $1,041 came in below our expectations, primarily due to sell-through of aged inventory, steeper-than-expected market depreciation and below capacity reconditioning activity. We expect the fourth quarter to be the low point for GPU and expect sequential improvement throughout 2023.

2022 年第四季度，總收入為 6600 萬美元。這包括 2,520 個零售單位和 354 個批發單位。調整後的 GPU 為 1,041 美元，低於我們的預期，這主要是由於陳舊庫存的銷售、市場貶值幅度超過預期以及產能修復活動低於預期。我們預計第四季度將是 GPU 的低點，並預計整個 2023 年將出現連續改善。

Additionally, we were pleased that F&I remained relatively flat sequentially at $1,334 per unit. Adjusted SG&A was $28.1 million, down from $39.4 million in the previous quarter. The decrease was primarily due to lower selling and marketing expenses as a result of the restructuring.

此外，我們很高興 F&I 環比持平於每單位 1,334 美元。調整後的 SG&A 為 2810 萬美元，低於上一季度的 3940 萬美元。減少的主要原因是重組導致銷售和營銷費用減少。

Adjusted EBITDA loss was $25.5 million. Please keep in mind that these results include approximately 3 weeks of CarLotz's operations. Excluding the merger, both revenue and adjusted EBITDA loss came in range of the guidance provided on our third quarter call for Shift standalone. Our adjusted EBITDA performance despite the GPU shortfall speaks of the G&A cost actions we have implemented over the past few months.

調整後的 EBITDA 虧損為 2550 萬美元。請記住，這些結果包括 CarLotz 大約 3 週的運營情況。不包括合併，收入和調整後的 EBITDA 損失都在我們第三季度呼籲獨立 Shift 時提供的指導範圍內。儘管 GPU 短缺，我們調整後的 EBITDA 表現說明了我們在過去幾個月實施的 G&A 成本行動。

We ended the fourth quarter with $110 million of total cash. The increase quarter-over-quarter was primarily due to the closing of the CarLotz merger and working capital benefits, partially offset by our net loss. As of December 31, 2022, we had 17.2 million shares outstanding. The share outstanding at year-end have been retroactively adjusted for the 1-for-10 reverse stock split enacted on March 8, 2023. To bring Shift into compliance with the minimum bid price requirement for its listing on NASDAQ.

我們以 1.1 億美元的總現金結束了第四季度。環比增長主要是由於 CarLotz 合併和營運資本收益的結束，部分被我們的淨虧損所抵消。截至 2022 年 12 月 31 日，我們有 1720 萬股流通股。已根據 2023 年 3 月 8 日頒布的 10 股 1 股反向股票分割追溯調整年末流通股。以使 Shift 符合其在納斯達克上市的最低出價要求。

As of March 22, we were back in compliance with the minimum bid requirement. Turning to our first quarter guidance. During the first quarter, we continue to experience some disruption to the business as we integrated CarLotz and fully establish the omnichannel experience. We are expecting sequential improvement from the fourth quarter, but the first quarter does not represent a normalized quarter of our updated omnichannel strategies.

截至 3 月 22 日，我們已恢復遵守最低出價要求。轉向我們的第一季度指導。在第一季度，隨著我們整合 CarLotz 並全面建立全渠道體驗，我們的業務繼續受到一些干擾。我們預計第四季度會出現連續改善，但第一季度並不代表我們更新的全渠道戰略的正常化季度。

For the first quarter, we are expecting revenue in the range of $56 million to $58 million. Adjusted GPU in the range of $1,600 to $1,800 versus $1,681 last year, and adjusted EBITDA loss in the range of $24 million to $26 million versus a loss of $46.6 million last year. For adjusted SG&A, we expect to see further sequential reductions to end the year with annualized adjusted SG&A between $85 million and $95 million.

對於第一季度，我們預計收入在 5600 萬至 5800 萬美元之間。調整後的 GPU 在 1,600 美元至 1,800 美元之間，而去年為 1,681 美元，調整後的 EBITDA 虧損在 2,400 萬美元至 2,600 萬美元之間，而去年為虧損 4,660 萬美元。對於調整後的 SG&A，我們預計到年底將進一步連續減少，年化調整後的 SG&A 在 8500 萬美元至 9500 萬美元之間。

We expect to end the first quarter with approximately $70 million of cash and cash equivalents. During the first quarter, other uses of cash included transaction costs, costs associated with hub closure, including grant and timing of accounts payable. We do not expect a similar impact to cash from these items in future quarters.

我們預計第一季度末將擁有約 7000 萬美元的現金和現金等價物。在第一季度，現金的其他用途包括交易成本、與樞紐關閉相關的成本，包括撥款和應付賬款的時間安排。我們預計未來幾個季度不會對這些項目的現金產生類似的影響。

From an operating perspective, we expect cash usage to decrease in future quarters as we have the CarLotz integration behind us and other cost reduction initiatives are fully realized.

從運營的角度來看，我們預計未來幾個季度的現金使用量將減少，因為我們已經完成了 CarLotz 整合，並且其他成本削減計劃也已完全實現。

We'd now like to open the call for questions.

我們現在想開始提問。

(Operator Instructions) And the first question will come from Brian Nagel with Oppenheimer.

（操作員說明）第一個問題將來自 Brian Nagel 和 Oppenheimer。

This is [William Dawson] on for Brian Nagel. Thank you for the details so far. So in Q4, you successfully closed the merger and completed the transition to the omnichannel model. So congrats on that. And I just wanted to ask if you could elaborate further on what this means for your business, what operational and financial leverage could this ultimately allow you?

這是 [William Dawson] 替補 Brian Nagel。感謝您提供到目前為止的詳細信息。所以在第 4 季度，你們成功完成了合併並完成了向全渠道模式的過渡。所以恭喜你。我只想問你是否可以進一步詳細說明這對你的業務意味著什麼，這最終會給你帶來什麼樣的運營和財務槓桿？

William, thank you for that question and also for your nice comments. Moving to the omnichannel model, which we put in place in Q4 and have continued to optimize in Q1 really allows us, as I mentioned in the opening remarks that to serve our customers the way that they want to shop. We believe we have a leading online experience, which kudos to our technology team have continued to optimize the checkout process and create a really seamless experience so that customers can go ahead and fully purchase the car for pickup or delivery online, or they can complete a lot of the paperwork ahead of time, schedule a test drive seamlessly and come into one of our stores.

威廉，謝謝你提出這個問題，也感謝你的好評。正如我在開場白中提到的那樣，轉向我們在第四季度實施並在第一季度繼續優化的全渠道模式確實讓我們能夠以客戶想要的購物方式為他們提供服務。我們相信我們擁有領先的在線體驗，這歸功於我們的技術團隊不斷優化結賬流程並創造真正無縫的體驗，以便客戶可以繼續並完全購買汽車以在線取貨或送貨，或者他們可以完成一個提前完成大量文書工作，無縫安排試駕並進入我們的一家商店。

And we really believe that giving customers that choice is an advantage for us. And further, working with the CarLotz team, we applied a lower-cost selling model that is associated with the omnichannel business. And what we've done there is decentralize many of our teams, put them in the store and empowered them and our operational leaders did an excellent job implementing that. So all told, that will help us to improve our conversion rates, improve our sell-through, increase our sales and do that while reducing our cost and staying on our path to profitability, where our goal is to positive unit economics in 2023.

我們真的相信，為客戶提供選擇對我們來說是一種優勢。此外，與 CarLotz 團隊合作，我們應用了與全渠道業務相關的低成本銷售模式。我們在那裡所做的是分散我們的許多團隊，將他們放在商店中並賦予他們權力，我們的運營領導在實施方面做得非常出色。總而言之，這將幫助我們提高轉化率、提高銷售率、增加銷售額，同時降低成本並保持盈利，我們的目標是在 2023 年實現積極的單位經濟效益。

Perfect. That's helpful. And one question just more on the near term. Obviously, these things are hard to do, especially during a difficult backdrop. Can you characterize what you're seeing in the used car business right now, particularly how has demand progressed through the quarter and here in recent weeks?

完美的。這很有幫助。還有一個關於近期的問題。顯然，這些事情很難做到，尤其是在困難的背景下。您能否描述一下您目前在二手車業務中看到的情況，特別是本季度和最近幾週需求的進展情況？

You bet. Certainly, in Q4 and especially in December, demand was very soft and depreciation was strong. I think that's been well reported. We're seeing solid demand and improving demand month-over-month in Q1. And we think that, that's a combination of the external market, but also the new omnichannel model that we've put in place.

你打賭。當然，在第四季度，尤其是 12 月，需求非常疲軟，貶值幅度很大。我認為這已經得到很好的報導。我們看到第一季度需求穩健並且需求逐月改善。我們認為，這是外部市場的結合，也是我們已經實施的新全渠道模式的結合。

So we're feeling optimistic about the start of the year, and we're hoping that it continues.

所以我們對今年的開始感到樂觀，我們希望它能繼續下去。

The next question will come from Sam Reid with Wells Fargo.

下一個問題將來自富國銀行的 Sam Reid。

Quick one on GPU. What are the levers that get you from, let's say, 1,000-ish GPU in Q4 to your Q1 target. I understand there was a lot of Lotz noise in there. But could you maybe walk us through any other drivers to bridge those 2 numbers?

GPU 上的快速一個。比方說，讓您從第四季度的 1,000 個 GPU 達到第一季度目標的槓桿是什麼。我知道那裡有很多 Lotz 噪音。但是你能不能帶我們通過任何其他司機來彌合這兩個數字？

Sure. Thanks, Sam, for the question. I think what we felt in Q4 were depreciation, which put some pressure on the prices that we could charge. We also had write-offs that were associated with some inventory overhang. And so going into Q1, what we're seeing are stabilized prices and then improvement both on the front end and on our F&I margins. So those are the main contributing factors to the GPU improvement quarter-over-quarter that we expect.

當然。山姆，謝謝你提出這個問題。我認為我們在第四季度感受到的是貶值，這給我們可以收取的價格帶來了一些壓力。我們還進行了與一些庫存積壓相關的註銷。所以進入第一季度，我們看到的是價格穩定，然後前端和我們的 F&I 利潤率都有所改善。因此，這些是我們預期的 GPU 季度環比改進的主要促成因素。

Just to add that even in our guidance, we already indicated that we're going to see better results in Q1 than in Q4, a lot of the costs and GPU burden that we had in consolidating all of the inventory between the acquisition and what was going on in the marketplace in Q4 is behind us that we should see a better journey going forward. And we expect to see that continue and improve quarter-over-quarter going forward.

只是補充一點，即使在我們的指導中，我們已經表示我們將在第一季度看到比第四季度更好的結果，我們在整合收購和收購之間的所有庫存時所承擔的大量成本和 GPU 負擔第四季度在市場上的進展已經過去，我們應該會看到一個更好的旅程。我們希望看到這種情況繼續下去，並在未來比上一季度有所改善。

That's super helpful. Maybe a follow-up here. Just -- and more broadly, now that you're a combined entity and the merger is closed, any updated thoughts on what unit count you'll need to get to in order to ultimately hit breakeven EBITDA?

這非常有幫助。也許這裡有後續行動。只是 - 更廣泛地說，既然你是一個合併的實體並且合併已經結束，那麼關於你需要達到多少單位數量以最終達到盈虧平衡的 EBITDA 的任何更新想法？

So we haven't shared an update to the model yet. We may do it in the future quarter. But I can tell you that with the new omni strategy and our reduced cost structure, both on selling and marketing and G&A. So all aspects of cost. We think we can get to breakeven unit economics even an EBITDA at a lower level than we shared in the past.

所以我們還沒有分享模型的更新。我們可能會在未來一個季度這樣做。但我可以告訴你，通過新的全方位戰略和我們降低的成本結構，包括銷售和營銷以及 G&A。所以各方面的成本。我們認為我們可以在比過去更低的水平上實現單位經濟盈虧平衡，甚至是 EBITDA。

Additionally, the development of our technology assets, marketplace and other things should help us get there, again, at the lower retail number.

此外，我們技術資產、市場和其他方面的發展應該會幫助我們再次以較低的零售數量實現目標。

The next question will come from Michael Baker with D.A. Davidson.

下一個問題將來自 Michael Baker 和 D.A.戴維森。

Can you square the comments that you acknowledge that you're going to need additional capital to get to profitability, but you have sufficient cash to execute your strategy, presuming your strategy is to get to profitability. I guess can you square those 2? And then I guess related to that, so your cash is down -- will be down $40 million in the first quarter versus the fourth quarter. You said that won't be the burn rate going forward. But any color on what we should expect for the cash burn to be over the coming quarters?

你能不能把你承認需要額外資本來實現盈利的評論放在一起，但是你有足夠的現金來執行你的策略，假設你的策略是為了實現盈利。我想你能平方那兩個嗎？然後我想與此有關，所以你的現金減少了——第一季度與第四季度相比將減少 4000 萬美元。你說過那不會是未來的燃燒率。但是，我們應該對未來幾個季度的現金消耗有何預期？

Yes. And it's obviously a very good question. Just let me start by saying that cash and liquidity are top of mind focus for the management, the Board, we see it as absolutely our top priority. We started the year with about $110 million in total cash. We guided the first quarter to somewhere around $70 million. But the first quarter had some unusual cash outlays, such transaction cost and hub closures, integration and rent and extra rent and so on.

是的。這顯然是一個很好的問題。首先讓我說現金和流動性是管理層、董事會的首要關注點，我們認為這絕對是我們的首要任務。今年年初，我們的現金總額約為 1.1 億美元。我們將第一季度指導為 7000 萬美元左右。但第一季度有一些不尋常的現金支出，例如交易成本和樞紐關閉、整合和租金以及額外租金等。

So that was -- that put pressure on cash, but we do not expect to see that going forward on our cash balance.

所以那是 - 這給現金帶來了壓力，但我們預計不會在我們的現金餘額中看到這種情況。

You said that in the prepared remarks, any color on how much less or what -- can you quantify what those onetime costs were?

你說過，在準備好的評論中，任何關於少多少或什麼的顏色——你能量化那些一次性成本是多少嗎？

So we haven't done that, but if you think about it, EBITDA guided loss is $24 million to $26 million, and we're talking about $40 million, so that's a pretty big gap. And just going forward, not only we expect many of those costs to go away, but also we expect improvement on the EBITDA line based on better volume, improved GPU and harvesting all the expense reduction initiatives that we have in place. So standing here, let's say, with $70 million as the starting point, we think that we have, as we said, sufficient cash to execute the initiatives. And what we mean by that is to continue to grow and improve our omnichannel stores.

所以我們還沒有這樣做，但如果你仔細想想，EBITDA 指導虧損是 2400 萬到 2600 萬美元，而我們說的是 4000 萬美元，所以這是一個相當大的差距。展望未來，我們不僅預計其中許多成本會消失，而且我們還預計 EBITDA 線會基於更好的銷量、改進的 GPU 和收穫我們現有的所有費用削減計劃而有所改善。所以站在這裡，比方說，以 7000 萬美元作為起點，我們認為我們有足夠的現金來執行這些計劃。我們的意思是繼續發展和改進我們的全渠道商店。

And additionally, we continue to develop the tech assets that Jeff talked about. Down the road and in order to get to profitability and beyond, we now believe that we're going to need additional fund raise. The extent and the timing hasn't been determined yet, and we look forward to, again, update that in the near future. But that's what we have for today.

此外，我們繼續開發 Jeff 談到的技術資產。在未來，為了實現盈利和超越，我們現在相信我們將需要額外的資金籌集。範圍和時間尚未確定，我們期待在不久的將來再次更新。但這就是我們今天要做的。

Oded, I just wanted to build on top of that, and thank you, Michael, for the question. As we look ahead to future fundraising, I do want to kind of double down on the comment that we think that Shift's omnichannel selling capabilities, the combination of our technology and our operational assets and processes and then the future development of the marketplace, which is underway at the -- right now are both really in line with where the market is headed and where digital customers are looking for an experience going forward. So we're very happy with the path that we're on right now.

Oded，我只是想以此為基礎，謝謝 Michael，提出這個問題。當我們展望未來的籌款活動時，我確實想加倍強調我們認為 Shift 的全渠道銷售能力、我們的技術與我們的運營資產和流程的結合，以及市場的未來發展，這是正在進行中 - 現在都非常符合市場的發展方向以及數字客戶正在尋找未來體驗的地方。所以我們對我們現在所走的道路感到非常滿意。

Your next question will come from Marvin Fong with BTIG.

您的下一個問題將來自 BTIG 的 Marvin Fong。

I guess just kind of a macro question. I mean, I think in recent weeks, we've seen wholesale prices up, retail prices may be ticking up as well. And I appreciate you guys derive most of your inventory from trade-ins. But just -- is this the environment that you're sort of basing your comments on about improvement quarter-to-quarter, or what kind of assumptions are you making about the -- about the car industry in general when you're kind of providing that sequential guidance?

我想這只是一個宏觀問題。我的意思是，我認為最近幾週，我們看到批發價格上漲，零售價格也可能上漲。我很感激你們從以舊換新中獲得大部分庫存。但只是 - 這是您評論季度到季度改進的環境，還是您對汽車行業做出什麼樣的假設，當您有點提供順序指導？

Yes. Certainly, we're in a seasonally strong period right now, and we're seeing those same trends, but we actually believe that the fundamentals that we've built into the business in terms of our conversion rates, our sell-through, the funnel that we're optimizing from customers coming in and making its way to a purchase or coming to our stores, are really the underlying foundation.

是的。當然，我們現在正處於季節性旺盛時期，我們看到了同樣的趨勢，但我們實際上相信，我們在轉化率、銷售率、我們正在優化的客戶進入並進行購買或進入我們商店的渠道，確實是潛在的基礎。

As you know and as you mentioned, the cellular car flow or our trading capability where we acquire the vast majority of our units from direct from customers is the strength of ours, and we're continuing to lean into that. So we actually are basing most of our sequential improvement on the capabilities. And certainly, as the market kind of moves, we are well positioned to navigate within that.

如您所知，正如您提到的那樣，我們直接從客戶那裡獲得絕大多數單位的移動汽車流量或我們的交易能力是我們的優勢，我們將繼續依靠它。因此，我們實際上是將我們的大部分連續改進都基於功能。當然，隨著市場的變化，我們有能力在其中導航。

Great. And I guess my follow-up question is, I think you mentioned that first quarter looking better. I think you mentioned from a conversion standpoint also, but is that entirely occurring in the core shift.com business? Or is some of that being influenced by the new omnichannel strategy? Is it possible to break things down that way? Or is it too early to say?

偉大的。我想我的後續問題是，我認為你提到第一季度看起來更好。我想你也從轉換的角度提到過，但這是否完全發生在核心 shift.com 業務中？還是其中一些受到了新的全渠道戰略的影響？有可能那樣分解嗎？還是現在說還為時過早？

We look at our business as -- is kind of -- we look at our business as an omnichannel business. So it's hard to pull the 2 apart, and we're seeing strength in consumers that want to buy fully online and those that want to come in person and for a test drive and to stage the purchase online in advance. So it's really across the board. We're seeing the model working well for us right now.

我們將我們的業務視為 - 有點 - 我們將我們的業務視為全渠道業務。所以很難將兩者分開，我們看到消費者的力量在希望完全在線購買的消費者和那些希望親自來試駕並提前在線購買的消費者中。所以它真的是全面的。我們看到該模型現在對我們運作良好。

Okay. Great. And maybe one last question. I think you didn't say any change, so I'm assuming it's about the same. But the new strategy, I think, is a little more emphasis on value cars. I think your mix you had said in the past, you want over 50%. Is that still true? Or is that -- might that change in response to sort of what you're seeing in the market?

好的。偉大的。也許還有最後一個問題。我想你沒有說任何改變，所以我假設它大致相同。但我認為，新戰略更加強調價值汽車。我想你過去說過的混合，你想要超過 50%。現在還是這樣嗎？或者是 - 是否會根據您在市場上看到的某種情況而改變？

Yes, we still think that the 50% value car mix and 50% core car mix is a great place for us to be. We're seeing that in terms of a value prop to our consumers that are looking for a range of vehicles, given the interest rates and the appreciation that it's been in the market. And it's really an optimal place from a reconditioning throughput as well.

是的，我們仍然認為 50% 的價值汽車組合和 50% 的核心汽車組合對我們來說是一個很好的地方。考慮到利率和市場上的升值，我們看到了對正在尋找一系列車輛的消費者的價值支持。從修復吞吐量來看，它確實是一個最佳位置。

So I think that, that is our target. We don't want to get too much above that or even too much below it. We think that the 50-50 is an optimal place and I think we're really thankful that we made that switch last year, especially as the economy started changing, and we are really well positioned for where our consumers were at.

所以我認為那是我們的目標。我們不想超過它太多，甚至不想低於它太多。我們認為 50-50 是最佳位置，我認為我們非常感謝我們去年做出了這一轉變，尤其是在經濟開始發生變化的情況下，我們確實為消費者所處的位置做好了準備。

This concludes our question-and-answer session. I would like to turn the conference back over to CEO, Mr. Jeff Clementz for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議轉回首席執行官 Jeff Clementz 先生的閉幕詞。請繼續，先生。

Thank you. I'd like to close with 2 thoughts. First, none of this is possible without our team. I'd like to thank each and every person for their hard work and dedication. The Shift team continues to shine even with all the challenges we faced as we've restructured our business. And second, we believe that we've made the right decisions to improve the unit economics and the overall financial performance of the business.

謝謝。我想以 2 個想法結束。首先，沒有我們的團隊，這一切都是不可能的。我要感謝每一個人的辛勤工作和奉獻精神。即使我們在重組業務時面臨所有挑戰，Shift 團隊仍繼續閃耀。其次，我們相信我們做出了正確的決定來提高單位經濟效益和企業的整體財務業績。

It was not easy to shrink the business in 2022 to better align our sales and cost structure to the evolving industry and economic environment. However, after these difficult decisions, we are now in a place to improve our performance throughout the year, showing the benefits of our omnichannel experience while continuing to provide amazing customer experience.

在 2022 年收縮業務以更好地使我們的銷售和成本結構與不斷變化的行業和經濟環境保持一致並不容易。然而，在做出這些艱難的決定之後，我們現在可以提高全年的業績，展示我們全渠道體驗的優勢，同時繼續提供令人驚嘆的客戶體驗。

And even though our short-term focus is on growing and leveraging our current assets in place, we continue to develop and lay the groundwork for future growth, including the marketplace. We look forward to speaking with you again soon. Thank you all for joining us today.

儘管我們的短期重點是發展和利用我們現有的資產，但我們會繼續發展並為未來的增長奠定基礎，包括市場。我們期待很快再次與您交談。感謝大家今天加入我們。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。