ThredUp Inc (TDUP) 2023 Q4 法說會逐字稿

My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the spread of fourth quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. (Operator Instructions) Thank you. I would now like to hand the conference over to Lauren Frasch, Head of Investor Relations. Please go ahead.

我叫珍妮，今天我將擔任你們的會議操作員。在此，我歡迎大家參加2023年第四季財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。（操作員說明）謝謝。我現在想將會議交給投資者關係主管 Lauren Frasch。請繼續。

Good afternoon, and thank you for joining us on today's conference call to discuss Products' Fourth Quarter and Full Year 2023 financial results. With me are James Reinhart, CEO and Co-Founder, and Sean Sobers, CFO. We posted our press release and supplemental financial information on our Investor Relations website at ir dot Starbucks.com. This call is being webcast on our IR website and a replay of this call will be available shortly.

下午好，感謝您參加今天的電話會議，討論 Products 第四季度和 2023 年全年財務業績。和我在一起的還有執行長兼聯合創始人詹姆斯·萊因哈特 (James Reinhart) 和財務長肖恩·索伯斯 (Sean Sobers)。我們在投資者關係網站 ir dot Starbucks.com 上發布了新聞稿和補充財務資訊。該電話會議正在我們的 IR 網站上進行網路直播，並且很快就會重播該電話會議。

Before we begin, I'd like to remind you that we will make forward-looking statements during the course of this call, including but not limited to, statements regarding our earnings guidance for the first fiscal quarter and full year of 2020 for future financial performance including our goal of reaching adjusted EBITDA breakeven on a consolidated annual basis, our expectations for capital expenditures and other developments on our business in the US and Europe market demand growth prospects, business strategies and plans and our ability to cost effectively attract new buyers.

在我們開始之前，我想提醒您，我們將在本次電話會議期間做出前瞻性陳述，包括但不限於有關我們對未來財務的第一財季和 2020 年全年盈利指引的陳述業績，包括我們在合併年度基礎上實現調整後EBITDA 盈虧平衡的目標、我們對資本支出的預期以及我們在美國和歐洲市場需求增長前景的業務的其他發展、業務戰略和計劃以及我們以成本效益方式吸引新買家的能力。

Words such as anticipate, believe, estimate and expect, as well as similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance involve known and unknown risks and uncertainties, including our ability to effectively deploy new and evolving technologies such as artificial intelligence and machine learning and our offerings and the effects of inflation, increased interest rates, changing consumer habits, climate change and general global economic uncertainty.

預期、相信、估計和期望等詞語以及類似的表達方式旨在識別前瞻性陳述。這些前瞻性陳述不能保證未來業績，涉及已知和未知的風險和不確定性，包括我們有效部署新技術和不斷發展的技術（例如人工智慧和機器學習）的能力以及我們的產品和通貨膨脹、利率上升、變化的影響。消費者習慣、氣候變遷與全球經濟總體不確定性。

Our actual results could differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. You can find more information about these risks, uncertainties and other factors that could affect our operating results in our SEC filings, earnings press release and supplemental information posted on our IR website. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

我們的實際結果可能與此類前瞻性陳述所表達或暗示的未來績效或結果的任何預測有重大差異。您可以在我們的 SEC 文件、收益新聞稿和我們的 IR 網站上發布的補充資訊中找到有關這些風險、不確定性和其他可能影響我們經營業績的因素的更多資​​訊。我們在本次電話會議中所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔因新資訊或未來事件而更新這些陳述的義務。

In addition, during the call, we will present certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to not as a substitute for or in isolation from GAAP measures. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures in our earnings press release and supplemental information posted on our IR website. Now I'd like to turn the call over to James Reinhart.

此外，在電話會議期間，我們將介紹某些非公認會計準則財務指標。這些非公認會計準則財務指標除了不能取代或獨立於公認會計準則指標外，還應予以考慮。您可以在我們的收益新聞稿和我們的投資者關係網站上發布的補充信息中找到有關這些非公認會計原則衡量標準的其他披露信息，包括與可比公認會計原則衡量標準的對帳。現在我想把電話轉給詹姆斯·萊因哈特。

Afternoon, everyone. I'm James Ryan, our CEO and Co-Founder of ThredUp. Thank you for joining ThredUp's fourth quarter 2023 and fiscal year 2023 earnings call. As we head into a new fiscal year, we're pleased to share threat UPS financial results and key business highlights from our fourth quarter. In addition to the financial results, we will also reflect on the progress we made in 2023, as well as provide an update on key strategic initiatives that we expect will drive growth and margin expansion in 2024. I'm particularly excited to share how we're leveraging AI across our business and how we believe we are uniquely positioned to benefit from advancements in this technology.

下午好，大家好。我是 James Ryan，ThredUp 的執行長兼共同創辦人。感謝您參加 ThredUp 的 2023 年第四季和 2023 財年財報電話會議。在進入新的財年之際，我們很高興與大家分享 UPS 第四季的財務表現和主要業務亮點。除了財務表現外，我們還將反思 2023 年的進展，並提供我們預計將在 2024 年推動成長和利潤擴張的關鍵策略舉措的最新資訊。我特別興奮地分享我們如何在整個業務中利用人工智慧，以及我們如何相信我們具有獨特的優勢，可以從這項技術的進步中受益。

I will then hand it over to Sean Sobers, our Chief Financial Officer, to talk through our fourth quarter 2023 and fiscal year 2023 financials in more detail, you will also provide our outlook for the first quarter of 2024 and fiscal year 2024. We'll close out today's call with a question and answer session. Let me start with our Q4 results. We closed out 2023 with another quarter of strong financial performance, demonstrating healthy top line growth and bottom line leverage.

然後我將把它交給我們的財務長Sean Sobers，更詳細地討論我們2023 年第四季和2023 財年的財務狀況，您還將提供我們對2024 年第一季和2024 財年的展望。我們將以問答環節結束今天的電話會議。讓我從第四季的業績開始。我們以另一個季度強勁的財務業績結束了 2023 年，展現了健康的營收成長和獲利槓桿。

Our revenue exceeded the high end of our guidance at $81.4 million, representing a year-over-year increase of 14%. We reached $1.8 million active buyers in Q4, up 9% compared to the same quarter last year. Orders reached a record high of $1.8 million, a 17% year-over-year increase in Q4. Gross margins came in at 62%, the midpoint of our range. But note this includes our decision to do a one-time write off of $1.9 million of aged and unproductive inventory in Europe that we had acquired in early 2023. This action had an 230 basis point impact to our consolidated gross margins. Excluding this one-time impact, our consolidated gross margins exceeded our guidance at 64%, representing gross profit growth of 16%. The onetime write-off in Europe also impacted our adjusted EBITDA in Q4, which totaled negative $2.1 million or minus 2.6%, excluding the one-time inventory write-off.

我們的收入超出了我們指導的上限，達到 8,140 萬美元，年增 14%。第四季度，我們的活躍買家數量達到 180 萬美元，比去年同期成長 9%。第四季訂單創下 180 萬美元的歷史新高，年增 17%。毛利率為 62%，是我們範圍的中位數。但請注意，這包括我們決定一次註銷 2023 年初在歐洲收購的價值 190 萬美元的陳舊和非生產性庫存。這項行動對我們的綜合毛利率產生了 230 個基點的影響。排除這一一次性影響，我們的綜合毛利率超出了 64% 的指導，毛利增加了 16%。歐洲的一次性沖銷也影響了我們第四季度調整後的 EBITDA，扣除一次性庫存沖銷後，調整後的 EBITDA 總額為負 210 萬美元，即負 2.6%。

We're proud to deliver an adjusted EBITDA loss of just 200,000 to 790 basis point improvement over last year represents a significant progress we made toward breakeven in 2023 and indicates our clear line of sight towards full year adjusted EBITDA breakeven in 2024, which Sean will talk about more in a bit. I'm particularly proud to report that despite a highly competitive Q4, the US business posted expanded gross margins of 78% while generating positive adjusted EBITDA for the second consecutive quarter.

我們很自豪能夠實現調整後EBITDA 損失較去年僅減少200,000 至790 個基點，這代表我們在2023 年實現盈虧平衡方面取得了重大進展，並表明我們對2024 年全年調整後EBITDA 盈虧平衡有明確的目標，Sean 將實現這一目標。稍後再詳細討論。我特別自豪地向大家報告，儘管第四季度競爭激烈，但美國業務的毛利率增長了 78%，同時連續第二個季度實現了正調整 EBITDA。

Stepping back 2023 was a very strong year for our business. Despite a challenging discretionary environment caused by component inflation and elevated interest rates. We delivered consolidated net revenue growth of 12% active buyer growth of 9%, while expanding adjusted EBITDA margin 960 basis points. We're extremely pleased with how well our U.S. business continues to scale and believe that this year has demonstrated the growth and earnings opportunity of a managed resell business model. Our European business demonstrated strong growth and accelerated its transformation to becoming a leading retail marketplace. In Europe.

回顧 2023 年，我們的業務非常強勁。儘管通膨和利率上升造成了充滿挑戰的自由裁量環境。我們的綜合淨收入成長了 12%，活躍買家成長了 9%，同時調整後 EBITDA 利潤率擴大了 960 個基點。我們對我們的美國業務持續擴大規模感到非常滿意，並相信今年已經證明了託管轉售業務模式的成長和獲利機會。我們的歐洲業務表現出強勁成長，並加速轉型成為領先的零售市場。在歐洲。

Finally, we finished the last phases of our distribution network build-out and expect minimal maintenance CapEx until at least 2026, with limited CapEx needs over the next few years, we expect our cash flows from operations to move in line with our adjusted EBITDA balance turn to the year ahead. Let me start with profitability. On a consolidated basis. The good news is that we are already there in the U.S., which makes up 80% of our overall business. We believe we've demonstrated the strength of our unit economics and our bottom-line discipline, having delivered positive adjusted EBITDA in the US in both Q3 and Q4 of 2023.

最後，我們完成了分銷網絡建設的最後階段，預計至少在 2026 年之前維護資本支出最少，未來幾年的資本支出需求有限，我們預計運營現金流將與調整後的 EBITDA 餘額保持一致轉向未來的一年。讓我從盈利能力開始。在綜合的基礎上。好消息是我們已經在美國開展業務，占我們整體業務的 80%。我們相信，我們已經在 2023 年第三季和第四季在美國實現了正的調整後 EBITDA，從而展示了我們的單位經濟效益和盈利紀律的實力。

We expect that the US business will continue to expand gross margins and generate positive adjusted EBITDA this year as we grow continue to automate and leverage our expenses. Our next task is to do this. In Europe. We've nearly doubled revenue in Europe since our acquisition in 2021 and continue to progress towards positive adjusted EBITDA in that market. To give you a sense of how we evaluate our European business, we apply the rule of 40 to the EU's gross profit growth and adjusted EBITDA rate.

我們預計，隨著我們繼續自動化和槓桿化支出，美國業務今年將繼續擴大毛利率並產生正的調整後 EBITDA。我們的下一個任務就是做到這一點。在歐洲。自 2021 年收購以來，我們在歐洲的營收幾乎翻了一番，並繼續朝著該市場的正調整 EBITDA 方向邁進。為了讓您了解我們如何評估我們的歐洲業務，我們將 40 規則應用於歐盟的毛利成長和調整後的 EBITDA 率。

We believe gross profit is the best indicator of its growth when normalized for the consignment transition and we expect that business to be well above 40 in the year ahead. I'm confident that we are on the right track, tackling the large opportunity in Europe with a proven playbook from the U.S. We expect to see continued improvement in Europe each quarter, driven by three core initiatives. Some of these may sound familiar if you followed us since our IPO first, we were accelerating the transition to consignment. This process began in mid 23, and we expect Europe to be approximately 20% consignment revenue in 2024.

我們認為，當寄售轉型正常化時，毛利是其成長的最佳指標，我們預計未來一年該業務將遠高於 40。我相信我們正走在正確的軌道上，利用美國經過驗證的策略來應對歐洲的巨大機會。我們預計，在三項核心舉措的推動下，歐洲每季都會持續改善。如果您自我們首次公開募股以來一直關注我們，那麼其中一些可能聽起來很熟悉，我們正在加速向寄售的過渡。這個過程於 23 年中旬開始，我們預計 2024 年歐洲寄售收入將佔 20% 左右。

As I've shared on previous calls, this change presents a short-term headwind to revenue due to the accounting treatment, but we believe that it will yield a business with a superior margin profile and provide us with more levers to flex margins and growth investments. Second, we are migrating our dynamic data-driven pricing system from the US to Europe to improve sell-through rates. The faster items sell the more. We maximize average selling prices and minimize our aged inventory, which yields better margins.

正如我在先前的電話會議上分享的那樣，由於會計處理的原因，這項變更對收入造成了短期阻力，但我們相信，它將產生一個具有優越利潤率的業務，並為我們提供更多槓桿來調整利潤率和成長投資。其次，我們正在將動態數據驅動的定價系統從美國遷移到歐洲，以提高銷售率。越快的商品賣越多。我們最大限度地提高平均售價並最大限度地減少老化庫存，從而產生更好的利潤。

This work is already starting to pay off as we are seeing some of the fastest sell-throughs in history year to date in 2024 and third, for introducing inventory sculpting using the US item acceptance model as a guide. We recently implemented a similar system in the EU to determine which items are listed on our marketplace at any given time by leveraging data science, we are segmenting inventory to better identify what types of items sell quickly which is maximize gross profit. The goal is a marketplace with an overall assortment that's more desirable to buyers and expands Europe's gross margin profile.

這項工作已經開始得到回報，因為我們在 2024 年看到了歷史上迄今為止最快的銷售量，第三，以美國商品接受模型為指導引入庫存雕刻。我們最近在歐盟實施了一個類似的系統，透過利用數據科學來確定哪些商品在任何給定時間在我們的市場上列出，我們正在對庫存進行細分，以更好地確定哪些類型的商品可以快速銷售，從而實現毛利最大化。我們的目標是建立一個產品種類齊全、更受買家歡迎並擴大歐洲毛利率的市場。

To summarize, the U.S. has already posted two consecutive quarters of positive adjusted EBITDA. And as we continue to apply U.S. strategies and tactics to Europe to improve our gross margins in that market, we expect to achieve positive consolidated adjusted EBITDA on an annual basis in 2024. Next, I'd like to share an overview of strategic initiatives that are designed to drive business growth in 2024 let me start with the ways we're deploying artificial intelligence to improve the customer experience and reduce costs in our distribution network.

總而言之，美國已連續兩季調整後 EBITDA 為正值。隨著我們繼續將美國的策略和策略應用於歐洲，以提高我們在該市場的毛利率，我們預計將在 2024 年實現年度合併調整後 EBITDA 為正值。接下來，我想概述旨在推動 2024 年業務成長的策略舉措，首先讓我從我們部署人工智慧以改善客戶體驗並降低分銷網路成本的方式開始。

First, we recently debuted in a I powered search experience that makes it easy and intuitive to find any secondary item on product. Our vast selection of inventory is one of our biggest assets, but it also creates challenges for buyers as they shop up to $4 million unique secondhand items at any given time. This new search functionality significantly enhances the secondary shopping experience in our marketplace. By combining visual language with personal style by enabling buyers to curate style inspirations effortlessly, whether it's by searching for a popular item like a satin cocktail dress for descriptive trend or look like Sunday brunch dress were afraid that evokes emotion like Academy Award, chic ThredUp can help shoppers find exactly what they want.

首先，我們最近首次推出了由 I 支援的搜尋體驗，可以輕鬆直觀地查找產品上的任何次要項目。我們豐富的庫存選擇是我們最大的資產之一，但這也給買家帶來了挑戰，因為他們在任何特定時間都會購買高達 400 萬美元的獨特二手商品。這種新的搜尋功能顯著增強了我們市場中的二次購物體驗。透過將視覺語言與個人風格結合，讓買家能夠毫不費力地策劃風格靈感，無論是尋找像緞面雞尾酒禮服這樣的流行單品來描述趨勢，還是像週日早午餐禮服那樣恐怕會喚起奧斯卡金像獎的情感，別緻的ThredUp 都可以幫助購物者準確地找到他們想要的東西。

It's not only fun to use, but it also is that center magic to it sometimes you just can't believe how good the technology is at delivering relevant results. Early indicators show an increase in searches per session, a higher add to our conversion of items from search and higher click through for individual product pages. Second, we have begun to leverage the center of AI technology that will soon give customers the ability to create outfits. They love using just a text description. For example, a friend is looking for an outlet to wear it a fancy little out on an upcoming trip to Hawaii using natural language problems or general, but I tool created now to composed of a beautiful floral cropped up a fully white Maxi skirt with assigned to it paired with highly and sandals want to create and outfits from Popular magazines or style influencers or runway trends.

它不僅使用起來很有趣，而且也是它的核心魔力，有時您簡直不敢相信該技術在提供相關結果方面有多出色。早期指標顯示每個會話的搜尋量增加，搜尋項目的轉換率有所提高，單一產品頁面的點擊率也有所提高。其次，我們已經開始利用人工智慧技術的中心，很快就會讓客戶能夠創造服裝。他們喜歡只使用文字描述。例如，一位朋友正在尋找一個出路，以便在即將到來的夏威夷之旅中使用自然語言問題或通用語言將其穿得漂亮一點，但我現在創建的工具是在全白色長裙上裁剪出美麗的花朵，並指定想要搭配高跟涼鞋和來自流行雜誌或時尚影響者或時裝秀趨勢的服裝。

We can now easily do that while delivering shoppable secondhand product up to 70% off what a consumer might take new the list of benefits that can be generated from this tool is endless restricted only by the imagination of our buyers will be leading these style inspiration touch points throughout the product experience over the year ahead and look forward to sharing more soon. I want to emphasize that AI. is an enormous leap forward for us in bringing emotion and storytelling to the millions of unique shopping journeys that regularly happen on dried up, given the breadth of our offering and the limitation of not having on model photography in our core product experience we believe generative AI technology disproportionately benefit to managed marketplace like that up compared to other apparel or peer-to-peer marketplaces.

現在，我們可以輕鬆做到這一點，同時提供可購買的二手產品，消費者可能會購買新產品，折扣高達70%。透過該工具可以產生的好處是無限的，僅受我們買家的想像力的限制，將引領這些風格靈感觸動未來一年的產品體驗要點，並期待盡快分享更多內容。我想強調的是人工智慧。考慮到我們產品的廣度以及在我們的核心產品體驗中沒有模特兒攝影的限制，我們認為生成式人工智慧將情感和故事講述帶入數以百萬計的獨特購物旅程中，這對我們來說是一個巨大的飛躍。與其他服裝或點對點市場相比，技術對此類託管市場的好處尤其明顯。

Now let me turn to AI and operations. We're also implementing AI across more operations in our distribution center network to enhance the customer experience and improve throughput and productivity. Once the government has been photographed, we employ advanced AI technologies to extract a wide range of detailed characteristics of the item from its image. This capability not only enriches our inventory database, but also streamlines the cat organization and processing of items.

現在讓我談談人工智慧和營運。我們也在配送中心網路的更多營運中實施人工智慧，以增強客戶體驗並提高吞吐量和生產力。一旦政府被拍照，我們就會採用先進的人工智慧技術從圖像中提取該物品的各種詳細特徵。此功能不僅豐富了我們的庫存資料庫，還簡化了物品的組織和處理。

This is improved operational efficiency and the accuracy of our product listings, resulting in better search and personalization in our marketplace. We see near term opportunities for general value to improve visual merchandising and add more engaging content in the shopping journey without us having to use expensive on model photography events play. You can imagine a world where AI not only supplement manual photography, but replaces that these AI-driven initiatives have enabled us to set new standards for efficiency and accuracy and are paving the way for continuous innovation and potential margin expansion.

這提高了營運效率和產品清單的準確性，從而在我們的市場中實現更好的搜尋和個人化。我們看到了近期普遍價值的機會，可以改善視覺行銷並在購物旅程中添加更多引人入勝的內容，而無需我們在模特兒攝影活動上使用昂貴的費用。您可以想像這樣一個世界：人工智慧不僅可以補充手動攝影，還可以取代這些人工智慧驅動的舉措，使我們能夠設定效率和準確性的新標準，並為持續創新和潛在利潤擴張鋪平道路。

So much of what we believe we can achieve over the next few years through our own software and industrial engineering development has now become readily available and it's cheaper and faster than we imagined beyond AI we're seeing continued improvements across a number of areas. For example, our delivery promise and thrift promise initiatives, which aim to deliver purchase to doorstep shipping in four days or less and do right by the customer with every order continue to make progress. Orders delivered within this timeframe have increased more than 150% year over year in the quarter.

我們相信在未來幾年裡我們可以透過自己的軟體和工業工程開發實現的目標現在已經變得唾手可得，而且比我們想像的更便宜、更快，超越了人工智慧，我們看到了許多領域的持續改進。例如，我們的送貨承諾和節儉承諾計劃，旨在在四天或更短的時間內將購買的商品送貨上門，並在每個訂單中為客戶做正確的事，並不斷取得進展。本季在此時間內交付的訂單年增超過 150%。

To date, our return rate decreased by 700 basis points in Q4 compared to the same quarter last year. We've also put a renewed focus on our loyalty program as a way to reduce broad-based promotions, and we expect to see continued benefits as we invest in customer retention efforts with more attractive rewards. Early signal show a double digit increase in orders with loyalty rewards and we believe creating a fun and easy rewards loop will encourage all customers shop like our best customers do today.

迄今為止，我們第四季的回報率比去年同期下降了 700 個基點。我們也重新關注我們的忠誠度計劃，作為減少廣泛促銷的一種方式，當我們投資於客戶保留工作並提供更具吸引力的獎勵時，我們預計會看到持續的好處。早期訊號顯示，具有忠誠度獎勵的訂單數量出現兩位數增長，我們相信創建一個有趣且簡單的獎勵循環將鼓勵所有客戶像我們今天最好的客戶一樣購物。

Our retail as a service business or rash continues to provide brands and retailers with the fastest and easiest way to deliver customizable and scalable retail experiences to their customers across our 50 plus brand customers. We now estimate that we power six of the 10 largest brand retail shops online, how are more than 50% of total branded resale listings that are sold online and you can pick up a co-branded through our clean out kit in more than 800 stores nationwide. As a reminder, by leveraging traps, marketplace infrastructure breadth, amplifies our supply advantage increases our sell through and return on assets, drives brand awareness and expand our long term profitability metrics.

我們的零售即服務業務或魯莽繼續為品牌和零售商提供最快、最簡單的方式，為我們的 50 多個品牌客戶提供可自訂和可擴展的零售體驗。我們現在估計，我們為10 個最大品牌零售店中的6 個提供線上服務，超過50% 的品牌轉售清單是在網上銷售的，您可以透過我們的清理工具包在800 多家商店中挑選聯名商品全國。提醒一下，透過利用陷阱、市場基礎設施​​的廣度，擴大我們的供應優勢，提高我們的銷售量和資產回報率，提高品牌知名度並擴大我們的長期獲利指標。

As I often do on these calls, I'd like to take a moment to remind you of trade-ups steadfast commitment to balancing purpose and profit. Our mission of inspiring the world to think second hand first remains the cornerstone of our strategy. Since our founding, we've now processed more than $172 million unique pieces of clothing giving cause in circulation and out of landfills while delivering incredible value to our millions of customers at the center of every decision we make is our business and brand on environmental, social and governance strategy, which guides us and helps fuel our success and threat of purpose and profit are inextricably linked.

正如我在這些電話會議上經常做的那樣，我想花點時間提醒您平衡目的和利潤的堅定承諾。我們的使命是激勵世界先進行二手思考，這仍然是我們策略的基石。自成立以來，我們已經加工了價值超過1.72 億美元的獨特服裝，為流通和垃圾掩埋場提供了理由，同時為我們的數百萬客戶提供了令人難以置信的價值，我們所做的每一個決策的核心都是我們的業務和品牌在環境、社會和治理策略指導我們並幫助推動我們的成功，而目標和利潤的威脅是密不可分的。

We were recently named a winner in good housekeeping 2020 for sustainable innovation awards, which recognize products and services that have embraced our people purpose and Planet approach to sustainability as we head into another year. I'm excited about our path forward and the impact will make globally on our people, our communities and the planet. With that, I will now turn it over to Sean to go through our financial results and guidance in more detail.

我們最近被評為 2020 年良好管家永續創新獎的獲獎者，該獎項表彰了在我們進入新的一年時體現我們的員工宗旨和地球可持續發展方法的產品和服務。我對我們的前進道路感到興奮，它將對我們的人民、我們的社區和地球產生全球性的影響。現在，我將把它交給肖恩，以更詳細地介紹我們的財務表現和指導。

Thanks, James. I'll begin with an overview of our results and follow up with guidance for the first quarter and the full year, I will discuss non-GAAP results throughout my remarks. Our GAAP financials and a reconciliation between GAAP and non-GAAP are found in our earnings release, supplemental financials and our 10 K filed. We are very proud of our Q4 results. For the fourth quarter of 2023, revenue totaled $81.4 million, an increase of 14% year over year consignment revenue grew 49% year over year, while product revenue shrank by 25%. We are pleased with the growth in consignment revenue driven by the transition of our S. clients and our European business to the consignment model, we would expect to continue to see outsized growth in containment and declines in product revenue throughout 2020.

謝謝，詹姆斯。我將首先概述我們的業績，然後提供第一季和全年的指導，我將在整個演講中討論非公認會計原則的業績。我們的 GAAP 財務數據以及 GAAP 與非 GAAP 之間的調整表可在我們的收益發布、補充財務數據和 10 K 歸檔中找到。我們對第四季的業績感到非常自豪。2023年第四季，營收總計8,140萬美元，年增14%，寄售營收年增49%，而產品營收則萎縮25%。我們對美國客戶和歐洲業務向寄售模式轉型所推動的寄售收入的增長感到高興，我們預計整個 2020 年遏制措施將繼續大幅增長，而產品收入將繼續下降。

Yes, while the transition of these businesses to consignment should be a tailwind to gross margins over time, we expect it to meet revenue growth simply due to the accounting treatment. As a reminder, consignment payouts reduced net revenue. We expect consigned revenue will be an increasingly larger part of our business throughout 2020 for bone payouts are in COGS and reduce gross margin. We expect owned revenue to be a smaller part of our business. As a result, we look to gross profit as the most relevant measure to evaluate the underlying growth rate of our business very happy to report that we accelerated our active buyer growth and achieved a record number of active buyers for the second consecutive quarter, reaching $1.8 million, up 9% year over year.

是的，雖然隨著時間的推移，這些業務向寄售的轉變應該會促進毛利率的成長，但我們預計，僅僅由於會計處理，它就能滿足收入的成長。提醒一下，寄售支出減少了淨收入。我們預計，到 2020 年，委託收入將在我們業務中所佔的比例越來越大，因為骨支出以銷貨成本計算，並會降低毛利率。我們預計自有收入將占我們業務的一小部分。因此，我們將毛利視為評估我們業務基本成長率的最相關指標，非常高興地報告，我們加速了活躍買家的成長，並連續第二個季度實現了創紀錄的活躍買家數量，達到1.8 美元萬元，年增9%。

Orders growth also accelerated to 17% year over year to $1.8 million for the fourth quarter of 2023. Reported gross margin was 61.9% as we implement our resale playbook in Europe, we made the strategic decision to take a one-time $1.9 million inventory write-off in Q4, a 230-basis-point impact to gross margin. We expect that clearing this inventory will enable an improved customer experience, allowing shoppers to more easily access fresh inventory while supporting a better margin profile and accelerating our shift to consignment. We believe that this action is setting up our EU business for success in the coming year.

2023 年第四季訂單成長也較去年同期成長 17%，達到 180 萬美元。當我們在歐洲實施轉售策略時，報告的毛利率為 61.9%，我們做出了戰略決策，在第四季度一次性沖銷 190 萬美元的庫存，這對毛利率產生了 230 個基點的影響。我們預計，清理這些庫存將改善客戶體驗，使購物者能夠更輕鬆地獲得新鮮庫存，同時支持更好的利潤狀況並加速我們向寄售的轉變。我們相信，這項行動將幫助我們的歐盟業務在未來一年取得成功。

Excluding that impact, our gross margin came in at 64.2%, 110 basis points ahead of last year. Our gross profit grew by 16%. Our consolidated results exceeded our expectations driven by U.S. gross margins of 77.5% and gross profit growth of 19%. This year-over-year expansion was a result of continued improvements in how we optimize our marketplace, including pricing, promotions, returns, payouts and fees. For the fourth quarter of 2023, net loss was $14.6 million compared to a net loss of $19.5 million in the same quarter last year.

剔除這項影響，我們的毛利率為 64.2%，比去年提高了 110 個基點。我們的毛利成長了 16%。我們的綜合業績超出了我們的預期，因為美國毛利率為 77.5%，毛利成長為 19%。這項同比擴張是我們不斷改善市場優化方式的結果，包括定價、促銷、退貨、付款和費用。2023 年第四季度，淨虧損為 1,460 萬美元，去年同期淨虧損為 1,950 萬美元。

Adjusted EBITDA loss was $2.1 million or negative 2.6% of revenue for the fourth quarter of 2023. Excluding the inventory write-off, adjusted EBITDA loss was just $200,000. We reduced our adjusted EBITDA loss in Q4 by more than 0.5 versus last year, representing an approximate 500, 60 basis point improvement as we tightly manage expenses and leverage our investment on higher revenue. To this point, we are proud to report that our hard work drove a 14% year-over-year revenue increase on just a 6% increase in operating expenses, illustrating the powerful leverage of our marketplace model.

2023 年第四季調整後 EBITDA 損失為 210 萬美元，佔營收的負 2.6%。不包括庫存沖銷，調整後的 EBITDA 損失僅為 20 萬美元。我們在第四季度調整後的 EBITDA 損失比去年減少了 0.5 以上，相當於改善了大約 500、60 個基點，因為我們嚴格管理費用並利用我們的投資來獲得更高的收入。到目前為止，我們很自豪地報告，我們的辛勤工作使收入同比增長了 14%，而營運費用僅增加了 6%，這說明了我們市場模式的強大槓桿作用。

Turning to the balance sheet, we began the fourth quarter with $80.2 million in cash and marketable securities and ended the quarter with $69.6 million fees, $10.6 million in cash in Q4 while we continue to spend maintenance levels of CapEx of just $2.2 million step-up in our cash usage was largely due to seasonal timing within our accounts payable as a reminder, in Q4 of last year, we used $19.6 million in cash, illustrating the enormous progress we've made over the last four quarters. In 2024. We expect cash flow usage to significantly decline versus 2023 in 2023.

轉向資產負債表，我們第四季開始時有8020 萬美元的現金和有價證券，第四季度結束時有6960 萬美元的費用和1060 萬美元的現金，同時我們繼續維持資本支出水平，僅增加220 萬美元我們的現金使用量主要是由於應付帳款中的季節性時間安排所致。提醒一下，去年第四季度，我們使用了1,960 萬美元的現金，這說明我們在過去四個季度取得了巨大進展。2024年。我們預計 2023 年現金流使用量將較 2023 年大幅下降。

We are proud to have reduced our consolidated adjusted EBITDA loss and every quarter achieved quarterly positive adjusted EBITDA in our U.S. business and continue to spend only maintenance levels of CapEx. We believe we will reach breakeven on a consolidated annual basis in 2024 as we scale the U.S. and improve Europe's margin profile. As we look to 2024, please keep in mind the following. First, though, our customer continues to feel the pressure of compounded inflation and higher interest rates.

我們很自豪地減少了合併調整後 EBITDA 損失，並且我們的美國業務每個季度都實現了季度正調整 EBITDA，並且繼續僅支出維持水平的資本支出。我們相信，隨著我們擴大美國業務規模並改善歐洲的利潤狀況，我們將在 2024 年實現綜合年度收支平衡。當我們展望 2024 年時，請記住以下幾點。但首先，我們的客戶繼續感受到複合通膨和利率上升的壓力。

We are implementing a number of tactics to improve the customer experience, as James described, as our strategic initiatives roll out in both the US and Europe. We expect our revenue to improve sequentially throughout the year weighted towards the second half. As a reminder, also consider that we spend more marketing dollars as a percentage of revenue in the first half of the year to drive buyers whose multiple annual purchases tend to yield revenue in the second half. Second, gross margin improvement will be primarily driven by our ongoing work in the US and Europe transition to consignment.

正如詹姆斯所描述的，隨著我們的策略性舉措在美國和歐洲推出，我們正在實施多種策略來改善客戶體驗。我們預計全年收入將持續改善，尤其是下半年。提醒一下，也要考慮到我們在上半年花了更多的行銷費用（佔收入的百分比）來吸引那些每年多次購買往往會在下半年產生收入的買家。其次，毛利率的改善將主要由我們在美國和歐洲正在進行的向寄售過渡的工作所推動。

So the consignment transition will mute revenue growth due to the accounting treatment. Consignment revenue will drive gross profit and margin improvement over time. We would expect gross margins to be better in the second half than in the first half as the transition progresses. In 2023, 66% of our consolidated revenues came from consignment, and we expect to see that percentage increase to approximately 80% in 2024. Third, we continue to expect maintenance levels of CapEx of approximately $2 million per quarter until 2026, which provides us a high level of confidence that we can fund the business with our existing cash to reach cash flow positive.

因此，由於會計處理，寄售轉型將抑制收入成長。隨著時間的推移，寄售收入將推動毛利和利潤率的提高。隨著轉型的進展，我們預計下半年的毛利率將優於上半年。2023 年，我們合併收入的 66% 來自寄售，我們預計這一比例將在 2024 年增加到約 80%。第三，我們繼續預計到 2026 年，每季資本支出維持在約 200 萬美元的水平，這使我們充滿信心，我們可以用現有現金為業務提供資金，以實現正現金流。

We want to reiterate that we do not anticipate our cash and marketable securities falling below $15 billion before reaching free cash flow positive, nor do we expect to turn to the capital markets or draw down our existing debt before them. With all that in mind, for the first quarter, we expect revenue in the range of $79 million to $81 million. Gross margin in the range of 68.5% to 70.5% of revenue at the midpoint. This represents gross profit dollar growth of 9% year over year and adjusted EBITDA loss of 3% to 1% of revenue and basic weighted average shares outstanding of approximately 110 million shares for the full year 2024 we now expect revenue in the range of approximately $340 million to $380 million, gross margin in the range of approximately 69.5% to 71.5% of revenue at the midpoint.

我們想重申，在自由現金流達到正值之前，我們預計我們的現金和有價證券不會跌至 150 億美元以下，我們也不期望轉向資本市場或在資本市場之前減少我們的現有債務。考慮到所有這些，我們預計第一季的營收將在 7,900 萬美元至 8,100 萬美元之間。毛利率在收入的 68.5% 至 70.5% 之間。這意味著毛利年增 9%，調整後 EBITDA 收入損失 3% 至 1%，2024 年全年基本加權平均已發行股數約為 1.1 億股，我們目前預計收入約為 340 美元百萬至3.8億美元，毛利率約為收入中位數的69.5% 至71.5%。

This represents a gross profit dollar growth of 14% year over year, positive adjusted EBITDA of 0.5% to 1.5% of revenue and basic weighted average shares outstanding of approximately 114 million shares. In closing, we are extremely proud of the progress we have made towards growth and profitability goals in 2023 and look forward to delivering steady growth and continued leverage in 2024 as we achieve positive adjusted EBITDA on a consolidated basis James and I are now ready for your questions. Operator, please open the line.

這意味著毛利年增 14%，調整後的 EBITDA 佔營收的 0.5% 至 1.5%，基本加權平均已發行股數約為 1.14 億股。最後，我們對2023 年成長和獲利目標所取得的進展感到非常自豪，並期待在2024 年實現穩定成長和持續槓桿作用，因為我們在綜合基礎上實現了正調整EBITDA 詹姆斯和我現在已準備好迎接您的到來問題。接線員，請開通線路。

(Operator Instructions) Ike Boruchow, Wells Fargo.

（操作員指示）Ike Boruchow，富國銀行。

Hey, guys. Good afternoon, um, two from me. Maybe one for Jim. One for Sean. On the active buyer growth of regions. You guys have kind of reflected value basket growth good to see. So maybe just can you give us a little bit more detail of what exactly you guys have done to kind of get you guys back in good shape there? And then just second follow-up for Sean or James, but I'm just on the Omnicare side of mix because it's having a big impact on the margins on the model. Can you just be a little bit more specific of what you expect based on your Q1 and fiscal year guide, what you expect confinement to be as a percentage of revenue that way. We can kind of just build it from Q1 kind of through Q4 as the transition is taking place?

大家好。下午好，嗯，我的兩位。也許是給吉姆的。一份給肖恩。關於各地區活躍買家的成長情況。你們很高興看到反映價值籃子的成長。那麼，也許您能為我們提供更多細節，告訴我們你們到底做了什麼，讓你們恢復了良好的狀態？然後是 Sean 或 James 的第二個後續行動，但我只是站在 Omnicare 這邊，因為它對模型的利潤產生了很大的影響。您能否根據第一季和財年指南更具體地說明您的預期，即您預計限制佔收入的百分比。我們可以在過渡發生時從第一季到第四季度建立它嗎？

Sure, hey, yes. On the first one up, I think over the last couple of quarters, we really reoriented the customer acquisition strategy to focus on a slightly more premium customer a customer who we thought would we had the right inventory mix for. And I think you're just starting to see that strategy pay off, and that's driven the active buyer growth, and we expect that to continue into 2024. The sort of refocus on the customer, real focus on retention and loyalty has driven the upside. And so we feel very good about that return to growth and really how that compound as we move through 2024.

當然，嘿，是的。首先，我認為在過去的幾個季度中，我們確實重新調整了客戶獲取策略，將重點放在稍微更優質的客戶上，我們認為我們會為其提供合適的庫存組合。我認為您剛開始看到該策略的回報，這推動了活躍買家的成長，我們預計這種情況將持續到 2024 年。重新關注客戶、真正關注保留率和忠誠度推動了這一成長。因此，我們對成長的回歸以及 2024 年的複合情況感到非常滿意。

It sounds like a little bit about the consignment piece.

聽起來有點像寄售件。

Yes, on On Assignment, but you wanted to give it about mid 70s as a total percentage of revenue, and that will grow throughout the year to be about 80% for the full year Perfect.

是的，在 OnAssignment 中，但您希望將其佔總收入的百分比設為 70 左右，並且全年將增長到 Perfect 全年的 80% 左右。

Thank you.

謝謝。

Anna Andreeva, Needham & Company.

安娜·安德烈娃，李約瑟公司。

Great. Thanks so much. Thanks for taking your questions. Two quick ones from us. So on the product revenue side of things down 25%, was that what you guys expected for the quarter, just given the shift to consignment? And can you also secondly, talk about what you're seeing with the underlying demand in Europe. I remember you had talked about sluggishness as the quarter unfolded. Just curious if the trends got better and if you're seeing anything differently quarter-to-date? Thanks.

偉大的。非常感謝。感謝您提出問題。我們的兩個快的。那麼，在產品收入方面，下降 25%，這是你們對本季的預期嗎？考慮到轉向寄售？其次，您能否談談您所看到的歐洲潛在需求。我記得您曾談到本季的經濟低迷。只是好奇趨勢是否有所改善以及您是否看到本季迄今有什麼不同？謝謝。

Yes, from a product revenue perspective, that is what we forecasted and expected. So nothing new or surprising for us on that side. Yes, on the demand side on. I mean, I think inflation in the area that we serve in Europe has been elevated relative to the US. And so that's definitely affected the demand curve but I think we've seen better year to date results.

是的，從產品收入的角度來看，這就是我們的預測和預期。所以這方面對我們來說沒有什麼新的或令人驚訝的。是的，在需求方面。我的意思是，我認為我們在歐洲服務的地區的通貨膨脹相對於美國有所上升。因此，這肯定會影響需求曲線，但我認為我們今年迄今為止已經看到了更好的結果。

And certainly some of the work that we're doing on the product mix, consignment mix in Europe is helping. And so we think the selection that we have in Europe is better and I think customers are seeing that. So we feel pretty good about where the demand curve is in Europe and and the guidance for the year reflects that.

當然，我們在歐洲的產品組合、寄售組合方面所做的一些工作正在發揮作用。因此，我們認為歐洲的選擇更好，我認為客戶也看到了這一點。因此，我們對歐洲需求曲線的位置感覺很好，今年的指導也反映了這一點。

Awesome. Thanks so much. Best of luck.

驚人的。非常感謝。祝你好運。

Tom Nikic, Wedbush.

湯姆‧尼基奇，韋德布希。

Hey, thanks for taking my question. I just wanted to ask about the write-off of inventory in Europe. I guess obviously that's that's something that you'd like to avoid generally speaking. I guess kind of have you seen I mean, any changes besides the consignment on a mix shift that you're trying to do, but like any kind of changes in the way you on the uptake in your product in Europe, we have to kind of ensure that you kind of are bringing in higher quality, our inventory and higher quality products. So I don't think I see a situation like that.

嘿，謝謝你回答我的問題。我只是想問一下歐洲庫存核銷的情況。我想顯然這是您通常希望避免的事情。我想你已經看到了，我的意思是，除了你試圖做的混合班次寄售之外的任何變化，但就像你在歐洲吸收產品的方式上的任何變化一樣，我們必須確保您帶來更高品質的庫存和更高品質的產品。所以我認為我不會看到這樣的情況。

Yes. Hey, Tom. Yes, I mean, I think all through last year, we have been making improvements to what that mix looks like laying the foundations for consignment but a lot of the product that we wrote down our stuff where we were in negotiations to buy that product well over a year ago, right in the market has changed our approach to the business has changed.

是的。嘿，湯姆。是的，我的意思是，我認為去年全年，我們一直在改進這種組合，為寄售奠定基礎，但我們在談判中寫下了很多產品，以便更好地購買該產品一年多前，市場發生了變化，我們的經營方式也發生了變化。

And so ultimately, it was about what's the best way to serve the customer on a go-forward basis. And we found it that product over a year old. This was crowding out, frankly, some of the best, the best stuff and the browsing experience. And so and for us, it was, hey, we're full speed ahead on the consignment transition. We feel very good about the strategy in place to get that done.

因此，歸根結底，問題在於什麼是為客戶提供持續服務的最佳方式。我們發現該產品已經一年多了。坦白說，這擠出了一些最好的、最好的東西和瀏覽體驗。因此，對於我們來說，嘿，我們正在全速推進寄售轉型。我們對實現這一目標的策略感到非常滿意。

And let's not have any of that sort of legacy product holding us back, whether that's in our facility in the browsing and search experience or even just kind of like having to move it around. And so it's definitely not something we should be doing again. But we thought it's the best thing for the customer as we move forward.

我們不要讓任何此類遺留產品阻礙我們，無論是在我們的瀏覽和搜尋體驗設施中，還是只是需要移動它。所以這絕對不是我們應該再做的事情。但我們認為，隨著我們的前進，這對客戶來說是最好的事情。

Understood. And if I could ask one more on sort of ask about marketing. So yes, marketing obviously was kind of down in Q4, it was at its lowest level really since 2020. And I guess how do we kind of think about on Yelp reinvestment and marketing going forward? And helping to drive the top line drive that performance in Europe at all?

明白了。如果我可以再問一個有關行銷的問題。所以，是的，第四季的行銷顯然有所下降，確實處於 2020 年以來的最低水平。我想我們如何看待 Yelp 的再投資和行銷的未來發展？並協助推動營收提昇在歐洲的業績？

Yes.I mean, I think on the marketing is always lower in Q4. And so that's typically our playbook. I think this Q4, even in particular, we expected it to be a competitive holiday season. We expect the consumers to feel squeezed around how to spend their discretionary dollars and so I think we thought it was even smarter to push some of that spend in Q4 into Q1 where we thought it would be more productive.

是的。我的意思是，我認為第四季度的營銷總是較低。這就是我們平常的劇本。我認為第四季度，尤其是我們預計這將是一個競爭激烈的假期季節。我們預計消費者會在如何花費可自由支配的資金方面感到受到擠壓，因此我認為我們認為將第四季度的部分支出推到第一季更為明智，我們認為這會更有成效。

And I think that that's what we're seeing. And so I think it fits our seasonal pattern. And but our expectation is to continue to drive top line through marketing spend. But at the same time, moving slowly towards our long-term targets that we set at the IPO. And we're sort of on that glide path as we think about 2020 for Procrit.

我認為這就是我們所看到的。所以我認為這符合我們的季節性模式。但我們的期望是繼續透過行銷支出來推動營收。但與此同時，我們正在緩慢地朝著我們在首次公開募股時設定的長期目標邁進。當我們考慮 Procrit 的 2020 年時，我們正處於下滑之路上。

Thanks very much for taking my questions and before it was here.

非常感謝您在問題出現之前提出我的問題。

Thanks, Nikic.

謝謝，尼基奇。

Edward Yruma, Piper Sandler.

愛德華·尤魯瑪，派珀·桑德勒。

Hey, good afternoon. Thanks for taking the question two for me. I guess, first and some very constructive comments around G&A. I curious kind of what the cost structure for that looks like and kind of what the uptake has been thus far.

嘿，下午好。謝謝你幫我回答第二個問題。我想，首先是關於 G&A 的一些非常有建設性的評論。我很好奇它的成本結構是什麼樣的，以及迄今為止的採用情況。

And then second, I know you guys have complained a little bit about the inventory situation in first price. Obviously, results got better in the fourth quarter. Are you starting to see some of that industry inventory normalize? And do you think it's kind of allowing some of your price gaps to better show?

其次，我知道你們對第一價格的庫存狀況有些抱怨。顯然，第四季的業績有所改善。您是否開始看到一些行業庫存恢復正常？您認為這是否可以讓您的一些價格差距更好地顯現出來？

Thank you. Yes, hey, let me just hit the second first. Yes. I mean, we're definitely seeing the inventory levels across sort of our competitive set normalize. And so I think that that actually really sets up our value proposition to perform well as we get into 2024.

謝謝。是的，嘿，讓我先打第二個。是的。我的意思是，我們肯定會看到我們的競爭對手的庫存水準正在正常化。因此，我認為這實際上真正建立了我們的價值主張，以便我們在進入 2024 年時表現良好。

I would say the only counterpoint to that is you have I've seen mentioned talking about right. There is still a squeeze on the discretionary dollar. And so I think that maybe eases throughout the year combined with leaner inventories, I think in a threat of is positioned very well for that, but we certainly see a better competitive environment for our products.

我想說，唯一的反駁是我看過你提到談論權利。可自由支配的美元仍然受到擠壓。因此，我認為，全年的情況可能會有所緩解，再加上庫存的減少，我認為這方面的威脅非常好，但我們當然會看到我們的產品有更好的競爭環境。

On the G&A JNI stuff, similar to my prepared remarks, I remain very bullish on its ability to improve our business really disproportionately compared to others, given the long tail of products, the constantly changing nature of our product, we really rely on sort of the dynamic nature of the technology to do a lot of work that that that would otherwise be done by inferior algorithm. So I'm very bullish on its ability to delight the customer on the front end.

關於G&A JNI 的內容，與我準備好的發言類似，我仍然非常看好它與其他公司相比確實不成比例地改善我們業務的能力，考慮到產品的長尾、我們產品不斷變化的性質，我們確實依賴某種該技術的動態特性可以完成大量原本由劣質演算法完成的工作。所以我非常看好它在前端取悅客戶的能力。

And I think we're working on a number of things that will start to materialize this year that I think will really change how consumers shop retail. And so I'm very excited about that and then the last part would be on the operations side is we've been employing a eye in a number of ways in our DCs for years. But I think just in the last 12 months, you've seen a step function change and what the technology can do.

我認為我們正在做一些事情，這些事情將在今年開始實現，我認為這些事情將真正改變消費者的零售購物方式。所以我對此感到非常興奮，最後一部分是在營運方面，多年來我們一直在我們的資料中心以多種方式使用眼睛。但我認為就在過去 12 個月裡，您已經看到了功能的階躍變化以及技術的用途。

And I think it has real implications for how productive our operations can be and what the margin profiles and ultimately look like. So you can really tell from my voice, I'm quite bullish on it. And um, and I think we're uniquely positioned to benefit from it.

我認為這對我們的營運效率以及利潤率和最終的表現有真正的影響。所以你可以從我的聲音看出，我非常看好它。嗯，我認為我們處於獨特的位置，可以從中受益。

Thank you.

謝謝。

Alexander Steiger, Goldman Sachs.

亞歷山大·施泰格，高盛。

Great. Thank you so much. And so we had a number of e-commerce consumer companies in, oh, I'm calling out a very weak January this year. So I'm just wondering maybe what are you seeing among your customer base that would give you confidence in your Q1 guidance, you can comment a little bit on like the month-over-month dynamics you're seeing in your business?

偉大的。太感謝了。因此，我們有許多電子商務消費公司，哦，我想說今年一月非常疲軟。所以我只是想知道您在客戶群中看到的哪些內容會讓您對第一季的指導充滿信心，您可以評論一下您在業務中看到的逐月動態嗎？

And then one follow-up question just on the business initiatives that leverage AI can you maybe talk about the contribution or the growth contribution you expect for this year versus your assumption around a potential recovery in the broader consumer spending environment? Thank you.

然後是關於利用人工智慧的業務計劃的一個後續問題，您能否談談您預計今年的貢獻或成長貢獻與您對更廣泛的消費者支出環境中潛在復甦的假設？謝謝。

Yes, hey, our vendor on. Yes, I don't think we are expecting a eye to drive anything sort of in an outsized way in the results, nor do we expect expect some big inflection later in the year in the consumer environment. And I think our guidance reflects our best estimates of how the business is going to perform this year. I will say that AI. As you know, we finally rolled up out the new search and some of the work just in the lab a week or two. And so we're only starting to see the benefits of the entire customer experience using it. And so I think as we get better information, we'll sort of update those numbers as for Q1.

是的，嘿，我們的供應商在。是的，我認為我們並不期望眼睛能夠以某種超乎尋常的方式推動結果，也不期望今年稍後消費者環境會出現重大變化。我認為我們的指導反映了我們對今年業務表現的最佳估計。我會說AI。如您所知，我們最終在一兩週內就在實驗室中推出了新的搜尋和一些工作。因此，我們才剛開始看到使用它的整個客戶體驗的好處。因此，我認為，當我們獲得更好的資訊時，我們將更新第一季的這些數字。

And what other companies have said, I don't think Q1 was noticeably weaker and then we expected. And then I think our business tends to see the hangover from Q4, you know, Christmas, New Year's holiday period gift-giving as we see some of that normally in January. And I think, you know, I don't think it's been an exceptional consumer environment, but I I wouldn't characterize it as sort of darker draconian. So but I think we expect that consumer to be challenged this year. And so I think that's where we feel good about our active buyer growth and our gross profit growth in an environment like this one, what will drive to positive EBITDA.

正如其他公司所說，我認為第一季的表現並沒有明顯低於我們的預期。然後我認為我們的業務往往會受到第四季度的影響，你知道，聖誕節、新年假期期間送禮的影響，就像我們通常在一月份看到的一些情況一樣。我認為，你知道，我不認為這是一個特殊的消費環境，但我不會將其描述為一種更黑暗的嚴厲。所以，但我認為我們預期消費者今年會受到挑戰。因此，我認為，在這樣的環境下，我們對活躍買家的成長和毛利的成長感到滿意，這將推動 EBITDA 為正值。

Thank you.

謝謝。

(Operator Instructions) Dana Telsey, Telsey Group.

（操作員說明）Dana Telsey，Telsey 集團。

Hello, Dana. Your line is now open.

你好，達納。您的線路現已開通。

Hi, everyone. As you would in the fourth quarter and as you're thinking about 2024, how are you thinking about spending behavior by buyer cohort or bio d.e.m.o. buyer demographics and what you're seeing there? And then also, as you're thinking about the promotional environment, has the promotional environment or the competitive environment changed lately?

大家好。正如您在第四季度以及對 2024 年的思考一樣，您如何看待買家群體或生物樣本的消費行為。買家人口統計數據以及您在那裡看到了什麼？另外，當您考慮促銷環境時，促銷環境或競爭環境最近是否發生了變化？

Thank you, Adena, on your on the buyer spend, I mean, we continue to see very strong revenue per buyer metrics. I mean, they were they were all-time highs known in 23, and we expect them to continue to be strong. So I think our ability to drive share of wallet revenue for by revenue per buyer growth, I think continues to be we feel very good about I think as far as like the sort of nuance in the consumer environment. I don't think there's any sector in the consumer world that's immune as to the sort of the effects of compound and inflation and interest rates, whether you're a wealthier consumer who's dealing with higher borrowing costs or a more budget consumer that's dealing with food inflation. And I think it's kind of hitting everyone.

謝謝你，Adena，關於買家支出，我的意思是，我們繼續看到非常強勁的每位買家收入指標。我的意思是，它們是 23 年來的歷史新高，我們預計它們將繼續保持強勁。因此，我認為我們透過每位買家收入的成長來推動錢包收入份額的能力仍然是我們感覺非常好的，我認為就消費者環境中的細微差別而言。我認為消費世界中沒有任何行業能夠免受複利、通貨膨脹和利率的影響，無論您是正在應對更高借貸成本的富裕消費者還是正在應對更高預算的消費者食品通膨。我認為這對每個人來說都是一種打擊。

And again, I think part of why we feel good about where we're headed in 2014. Despite that environment still being able to grow and the underlying growth rate to be in the 10s, you know, as well as you know, 600 bps of margin expansion. It feels like a really a great place for our business to live in 24 given the environment. And as on the promotional side, as I said earlier with it, I mean, I do think that the environment has gotten better, but I still think you you may have a positive tailwind from the promotional environment with a bit of a headwind in the consumer discretionary work. And so I think net of it is probably cancel each other out.

我想這也是我們對 2014 年的發展方向感到滿意的部分原因。儘管這種環境仍然能夠成長，並且潛在成長率在 10 左右，但你知道，如你所知，利潤率擴張了 600 個基點。考慮到環境，這對我們的企業來說確實是一個 24 小時居住的好地方。至於促銷方面，正如我之前所說，我的意思是，我確實認為環境已經變得更好，但我仍然認為你可能會從促銷環境中獲得積極的推動力，但在消費者可自由支配的工作。所以我認為淨值可能會相互抵消。

Got it. And then in Europe, is the shift to consignment in Europe. Any differences that you're noticing or insights taking away that would make it be accelerate? Are these faster or slower than what you may have originally expected.

知道了。然後在歐洲，正在轉向歐洲寄售。您注意到的任何差異或見解會使其加速嗎？這些比您最初預期的更快還是更慢？

I mean, I think that the the consumer, the seller in the countries that we operate in Europe, I think, has been looking for a scaled, convenient solution like this for some time. And so I think I think the customer reception has been positive, but it is a transformation of the of the business and how shoppers are browsing and the number of items that they're buying and their orders. But so far, as we said, sell-through rates have been have been strong. And I think consumers are really liking that fresh product differentiated product sales to the owned business that we'd had more of earlier in the year.

我的意思是，我認為我們在歐洲開展業務的國家/地區的消費者和賣家一段時間以來一直在尋找這樣規模化、方便的解決方案。因此，我認為客戶的接待是積極的，但這是業務的轉變，也是購物者瀏覽方式、購買商品數量和訂單數量的轉變。但到目前為止，正如我們所說，售罄率一直很高。我認為消費者真的很喜歡新鮮產品差異化的產品銷售給自有企業，我們今年早些時候有更多這樣的銷售。

Thank you.

謝謝。

Thank you. There are no further questions at this time. I will now hand the call back to James Reinhart for closing remarks.

謝謝。目前沒有其他問題。現在，我將把電話轉回給詹姆斯·萊因哈特 (James Reinhart)，讓其致閉幕詞。

Well, thank you, everyone, for joining us for our earnings call and guidance for the year. Very excited about the year ahead. I'm incredibly proud of the work in 2023 that we did to drive growth and expand margins. And we expect more of the same as we head into 2024 so we'll see. Thanks.

好的，謝謝大家參加我們的財報電話會議和今年的指導。對未來的一年非常興奮。我對 2023 年我們為推動成長和擴大利潤所做的工作感到無比自豪。進入 2024 年，我們預計還會出現更多類似情況，所以我們拭目以待。謝謝。

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect. Everyone else has left the call.

謝謝。女士們、先生們，會議現已結束。感謝大家的加入。你們都可以斷開連線。其他人都已掛斷電話。