PETS - Earnings call transcript Q1 2022

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Operator

Welcome to the PetMeds Conference Call to Review the Financial Results for the First Fiscal Quarter Ended June 30, 2022. At the request of the company, this conference call is being recorded. Founded in 1996, PetMeds is your trusted pet health expert delivering prescription and nonprescription pet medications and other health products for dogs, cats, and horses direct to the customers. PetMeds' markets its products through advertising and promotional campaigns, which directs customers to order online or by phone and which are intended to increase the recognition of the PetMeds brand name. PetMeds provides an attractive alternative for obtaining pet medication in terms of convenience, price, ease of ordering, and rapid home delivery. would Chief turn Financial I to call time, company's the Officer, this like the to over At Mr. Bruce Rosenbloom.

Bruce Rosenbloom

Thank events, a that may as to the XXXX to would of Commission conference you. assumptions. welcome everybody have uncertainties, will session, future listen-only be events. currently on here like statements And until be These uncertainties. today. from call the will involve also current obligation undertakes statements remind materially differ portion assumptions first us. as like that based based views everyone involve of used this which Actual could beliefs number I'd our to question-and-answer risks projected. update I the during meaning these include of may upon within and the the The those this of company Reform subsequent call. to Private information or forward-looking these certain Litigation available no that and on information concerning Exchange risks, Also, in based and call later statements statements will included results Securities we the be these Securities are Because statements well reflect Act our

in We and filings factors with have our and Commission. associated identified Report most with our various Annual Exchange operations recent Securities risk other the

me Now CEO Matt? and introduce our let President, Matt Hulett.

Matthew Hulett

us fiscal XXXX our for first for Thanks, Good joining thank call. and Bruce. you afternoon quarter

over prescription of a very years As which is the PetMeds business And XX at proud. this pioneered pet online a everyone reminder, ago. is legacy PetMeds

core a that every happy, our to a healthy long, customer continue is taking to large approach Today, iconic transformation engineering our change workforce, three, our and strategy; CEO all the to to update commitment President, I an call into four, progress stakeholders our as our transformation. pertains My a to to business; with terrific talented our this be the transparent, believe pet open supports the of I of progress base management will four serving dedicated PetMeds business on One, company. two, I major live our loyal mark, particularly a that the and team; that break since is and on life. and on an vision deserves a themes. over it as As one-year company with partner and update

let's start business. core update an our on So with

and warmer of tick in of normal a material repeat As we call, concentration seasonally business to stimulating Due we the the flea the base saw part impact to returned slow and later quarter. and April demand in sales our our to and saw quarter. products heartworm expected from pet recent mentioned and last of continued the the the to of medication which temperatures the in parents, of these we of quarter. tick high of season temperatures, had the start on flea a more back most flea month half a into early particular country, due Once in the much heartworm colder in slower the medications, tick rebound

XX.X generated prior mid-May for quarter, the were in results compared period are for same base quarter down while of and the by year-over-year. year. we to first XX.X million was the EBITDA encouraged sales for our customers disappointed June. sales quarter are sales the First XX% overall the we of the returning sales with And million from Adjusted

existing also that and to new was media the growth the to allocation catalog. had new primarily flea sensitive market our produced simply haven't results business a take refreshed customers I combination customer fewer optimistic start but new We some product Expanding to the optimized attract start our stimulate The on this from will new time. for to team, were ability impact will creative and to in new profitable on generating seasonally an slow spring our buyers that that remain There includes also a customers. new tick of customers net business a to focus customers. season

start the end towards improvements did see the in new to customer we However, acquisition quarter. of

invest to administrative believe grow and continue increased are investments we in infrastructure, including year-over-year We a and on our that note systems very general targeted value. processes shareholder long-term which will will you These and people expenses strongly basis.

me usability with particularly cost efficiently we testing, regard team, a to third-party with have turnarounds quickly and and known number capability analytics, by partnered and data improve ecommerce of more. site fact, In well-seasoned delivery, and resources trusted to my our

just that our House party spans XX that instance, data enabled have we new warehouse gives insights us into deep data that years. Pet a For first we call our

the to our due intentionally was unseasonably that marketing Again, kept relatively flat April front, we've against demand. wasn't prudent spend On since to variable spin we year-over-year. temperatures, marketing it low lower slower determined

and test to number LTV be Our but learn. profitable dynamic, CAC as we will

and Our traditional of was LTV to value metric. quarter creation XX,XXX LTV [ph] was we [well the marketing To a is as] the using quarter the meaningful our new more for for versus measure count approximately CAC X.X. believe customer reiterate, CAC to PetMeds

program. to to this average order the our And over LTV life customers. as migrate see of CAC expect our returning customers our number we to We AutoShip value we as grow more of subscription expand

AutoShip revenue XX% AutoShip program derived grow Our our the of from our was to program during revenue quarter. subscription recurring approximately continues June

that will announcing will on. enhancements our later program we exciting some address We be new subscription to

ton Today, excited over I a the partnership earnings last company this in licensed integration. North During discussed connects more with with spend investment that more a progress later on progress we our Vetster, America. professionals pet parents partner about call. will and telehealth are go-to-market time pet recent we making call, our veterinarian on and our detailing even of this are partnership all

strategy on of strategic expert block first execution the are the rapidly the pet our moving building being of We health telemedicine. pillar with

date. future disclose a other have initiatives at that underway plan many we We and partnerships to

the significant like Lastly, the announce to team to company. would executive I new to addition a and

spent of our strategy, deal several product last new discussing time great people. the processes, and a quarters, Over we

company. In transformation digital and have leadership experienced expanded scaling with people, invested we both terms in a team of has an that

We have six Christine excited hear PetMeds Officer team last added pleased the Financial August Christine call. who I you my us will from months. new new latest executives Chief and X, officially am the as on to on in Chambers member joins next the our of chance get several

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Now let with dive the details us into material. deeper the presentation

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I'm say. your they experience attention Jennifer, to a call I me the different of living of policy take my to time, to with purpose with probably member knowledgeable to they was I and had to lot was do my she yesterday with help bring save Jennifer, as to Jennifer The and company was outstanding. that were I questions. places Riley's and money. patient get sure regarding Being ways team Here's my Jennifer This it. a and to about called connected company Dear your Mr. reorder dog off disabled without most lot might to going rush not different and to letter for need only yesterday. order of Hulett. of on a be and call, phone you company past wanting the time the what patience extended and Having was she is savings. next there meds case. monthly you me a had during customer. my your to income so professionalism And had with able kind and some the and I your my my the questions on was med, me assured an

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value so service. for our in delighted low and and to to customer the recognize yet assured proud story company have for And an to that our our historically us high to pets many and created their example the Jennifer and tell to can others With keep exemplary is that their much being. like Jennifer dedication choices PetMeds dividend-based to. be of our we Should to sending coming I'm different this folks are a available return somewhat animals. perfect Jennifer opportunity employees share I well choose a her our will colleagues customers it's where all I are be PetMeds back. been of you, has it's will to growth, med them them shareholders. have I refer

however, higher growth any value, and intent, do balance more becoming in we great are do believe position create to are that. PetMeds profitable to We we We have upon not is company a with a sheet. debt. pristine a even

we XX, cash and PetMeds a their XXX.X are subscription from moving a approximately model million have compelling models of direct-to-consumer as is our much business in clearly business. cashflow business are to equivalents stable flows. and of cash subscription June cash recurring to XXXX, and due predictable businesses We positive. transactional

with AutoShip June save and and our ordering approximately of the mentioned subscription we customers of XX% our beginning ended I As via the program. quarter enrolled call, at the

have is of the quality continue customers, base service large and of indication deliver. returning a We to value an we which the that

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love and service. Our just brand customers our our

Our NPS the the world. puts is most with over score in along of some which us beloved quartile upper in the XX brands

to have for Now, quarter. Bruce our like I'd review financials the

Bruce Rosenbloom

Thanks, Matt.

of generate our financial and to EBITDA our evaluate financial our metrics which last would review and management the capital. June regarding compare Board adjusted the XXXX that EBITDA We share. will fiscal to plans allocation to measures June new last ended are metrics year's we results, our decided that quarter by I During of XX, ended our used adjusted non-GAAP include introduced on strategic first XXXX. year, on they performance, operating also to and like by fiscal future decisions quarter we during these per XX, key new make because operating highlight

EBITDA Additionally, our and more also stock-based non-cash XXXX pandemic fiscal increases recent environments Throughout recent comparing adjusted and XXXX of a mostly share, EBITDA in post-pandemic. year, take other adjusted provide the a per we and different faced our accurate picture situation expenses. into most underlying and between compensation totally unique more account two profitability

highlighted As agencies fiscal with expect we with to into results, XX, marketing our move be processes, place. variable XXXX, forward our and new year the much March spend improved our with initiatives marketing we ending with efficient firmly many more partnerships, and of year, in our current

of year, the for million, a million For XX.X compared same prior first of in decrease XX.X the XX.X%. year, period were to current quarter sales the sales

encouraged for customer. compared definition prior to sales quarter. consistent later XXXX, the year, reorder XX-month a decreased a same we quarter were June million new XX.X the while by XX.X XX, sales million sales the using of for earlier, quarter June the ended decline were of X.X% As the sales Matt trends to saw disappointed Reorder the with we in mentioned year-over-year, by we

we With continue relationships more increasing AutoShips to the base. to subscription build loyal our our customer adoption, opportunities with see

our We with our by customer look increased base will reorder to product improve marketing to also to sales and services. continue offerings

June made Save revenue a the of that to our quarter, we percentage by AutoShip was and we of the program. the how During change calculate methodology generated

Going forward, the our month discounts to we will attainment average quarter the note we AutoShip the the the that versus our percentage of that also will a in report net to of resulted previously Please percentage reported more of change quarter. And last AutoShip a this over credits. report performance. the stakeholders subscription for business accurate calculation few of a only gauge believe AutoShip its representation decrease was change to and that We reflects points. by this

We are adoption last by seen program, this several an program. quarters of this the have positive launched and since trend over encouraged we increasingly the

For increased averaged XX, in the to ended XX% March recent example, AutoShip from most and quarter, the our June XXXX. December XX% in quarter quarter quarterly percentage the XX% for

evaluate compared price on first and X.X was share, same and $X.XX to Save certain points XX.X% we per or quarter Adjusted back million, the sales for subscription diluted prescription stock million EBITDA our our program. and fiscal product measures by discount to the adjusted For regarding as and appropriate cooperative There Vetster EBITDA percentage in period income medications increased million like basis interest adjusted of rebates the XX.X% diluted diluted future of same or management improve the $X.XX a fiscal our EBITDA amortization operating last and generate if shift allocation used margins fiscal marketing Adjusted quarter AutoShip sales may or including with to GAAP the to banking the our million add compared last X.X from be and non-cash basis for by year can earnings expense, promotions. ago, earnings a an the Board $X.XX capital. and for first Net our decisions compared costs income make taxes, opportunity on promotions, support year. grow diluted other to approximately XXXX, per quarter EBITDA quarter the share major investment per compensation, XXXX expenditures, of to or per funding income funding fiscal Again, related and strategic $X.XX which same non depreciation EBITDA the X.X key gross to their diluted profit first a shifted and to basis the future was XXXX, X.X continue gross operating share some as manufacturers year. XX of discounting a to quarter to the for and share expenses, adjusted performance, plans fee partnership. of

will to We in financial measures disclose continue these our filings. future

of infrastructure the headcount intentional investments the result over made As year. in past strategic a and and

administrative double-digit the to business customization intend growth. to for future our quarter, in have percentage these We spent believe of data In continue necessary the make investments warehouse. We and with are prudent increases transformation, fuel strongly support general $XXX,XXX and our ecommerce our seen expenses. the we investments and approximately new spend to the and in in expenditures platform we June of majority capital the related to

dividends $X.XX the payable quarter. business be August declaration Board is future that We XXX.X stock of fiscal in XXXX, platform at be expect and XX, a returning dividend capital the for a of to will inventory on million of discretionary and We share no of XX, ecommerce to shareholders the continues XX.X our such, see remainder declared XXXX. quarterly company common to close note the to of The as a continued determination June stockholders with IT infrastructure. equivalents tune investment to in debt cash utilized had the cash million our as payment the of to committed Board in August on million $X and to per XX, XXXX. customize capital further the of approximately to Also, will be and XXXX, of by each of Directors expenditures which please record subject and company's be that will on Directors

to Matt. to Now, hand over I'd back like the presentation

Matthew Hulett

the being with We the world a revealed just call, earnings pet where leader moving being of from expert During retailer our pet to PetMeds of We digital digitally. degree this care specifics. of is and rapidly. our is majority we of days coming vet for envision enabled market parents. some future healthcare. digitally strategy in long-term preferred a and move transformation, leading a be the delivery last it medication pet believe a pet but will driven We're data and early that mode services

executing space. pillars steps important taken telemedicine will with in have executing services. strategic the with our are of starting care made The being long-term nutrition, We the on data medications, and towards at that that recent our be driving announcements strategy, on both and our heart we've wellness

with announcement building recent block our of care the first Vetster offering. Our is

This partnership need pets go be PetMeds closes to an that is to revenue accelerate can strategy. streams. parents prescribed pet new the During the last revenue that introduced call, a powerful in and streams integration provides to the we We on without discussed which of in partnership that a a directly a never pet both how our driven creates real streams this combination platform. is Go-to-market of prescription panoply from unlock has partnership new in upsides traffic and ecommerce that experience technology been see unique category. for launch, terms telemedicine introduce and first the Loop, to we to network. we're X PetMeds believe in including opportunities the market allow the from mainstream XX,XXX potential over the million so in parent within a first in or office the veterinarians medication acceleration, the new investment parent and many connecting company new Close with investors direct pet pet to the Connect customers access revenue telemedicine loop mainstream the between pet cases visit

Climbing will incentives for get create Vetster enable whether embedded for platform too. retail will leverage exclusive telehealth provider live partnership be offering that work access huge our pet any this quickly is video allow capabilities us agreement or vets to the will vet will beyond. vet to to funnel, core your subscribers. customers desktop virtual core text very Alliance, is the PetMeds through instant that a care towards and on PetMed We we platform. additional and with PetMeds that to via ago, integrating services platform example, technologies. or our we believe new with that an win months vet Since vet, Vetster's provide PetMeds this and up XX/X. believe their provide or moved For into have we streams us and smartphone acquire your think Veterinary our able to directly and with to medication marketplace clinic attractive sales customers revenue more chat to several flexibility just signing already network and partnership

overall for investor already mobile relationship for launching that appointment the best the have a first in online that of appointments many data to XXXXs capability prescription fulfillment, and direct catalog integrated will any or into integration. from The triage, PetMeds and Rx directly has is the digital services we'll prescribe level the of Vet licensed then directly an any ecommerce be the provide vet Live be marketplace, is computer services months. several able into This trend. to through that that resides out Vet bet inside over become prescription medication And a behind means the integrated chat personal platform We is integrated other's next innovation now of two means quarter. exclusive video customer as experience is parents device. health new on parents increases appointment. veterinarian pet powers ecommerce this pet ready a that directly That This directly a each for and virtual diagnose include in integration allows stir. or happens PetMeds state which now as veterinary veterinarians from a that rolling we'll pet the that connects XX/X. be engine that the pets, dashboard. the PetMeds services care transaction can Live Live the over to virtual PetMeds. integrated Vet

be foresight virtual the about network a App instantly. the on change the one about will for to are high of Store take next an engagement And missed access reach thought how have a health. the like The that high I this a platform entrepreneurs very just And is huge companies pet as didn't this global out is building a a care out to compelling think parents. potential vet believe in of exclusive a value for of audience very extraordinary very many Direct examples and trend pet believe we we of this sticky way advantage offering. care to big proposition platform unlock. providers to some a value we

substantial on the made last focused our quarters, transformation and have over laser and of progress we the execution. several measurable remain on We business

us that our have Improvement quarters majority new terms over Now in people customer you the in focus. and can of from inorganic next of organic growth underway, of elements process of the and business expect what here's new we the strategic growth. the couple

expanding accelerating our new will critical long-term customer acquisition are We to efforts, which our success. be and

Continued a our market. There subscription our transformation the deployment our telemedicine to through and exciting partnerships leverage acquisitions. capital capital. pet are of migration business for opportunities rollout to to Full More investments, active accelerate of capability us model. recurring of our into

to our a if pet effort this well Vetster. planet firmly as that consider commitment. and communities, based will is product and the This believes relief cannot environmental, Ukraine execute as successful A and humane as adding not support of services We well. we as initiated deployment many of example IFA, our ESG. with health product assortment, and members, as with wider our U.S. team do Commitment and governance business, expansion as Expansion and to more our ourselves well our PetMeds longtime much and to on a we our integrations we partnership of pet of social that start our thrive great our wellness This continued catalog business. launched includes services. year, rescue organizations.

the I market market our early shareholder company, opportunity takes Our can't in increased to that foundation clear will and unique heart a getting innovative our we sheet of it operating that reputation confident the the especially pets, and stages it I'm balance lead is is laying PetMeds that unparalleled. and will compelling. expertise are in market in and people in commitment strong. strategy is value. ways highly have been the environment. in opportunity is meet an uncertain brand planet. our the results still in that at transform stress to economic is enough time back development of our and competitive But

more now Our ever. team remarks. take the than questions. is Operator, future fantastic. prepared And we This our ends to excited I ready about are am

Operator

Thank you.

be Instructions]. Thank session. [Operator now conducting will you. We a question-and-answer

question Morgan is Wright Erin with your first proceed Please with Our Stanley. from question.

Erin Wright

give just stand on flea And are do you And Can expected it quarterly what thank with seasonal tick what Were to where questions. from I does seeing quarter? perspective? what now an think give you compared the that of Thanks. Or look seasonal season? front? what seasonal to look were us this we those like? used the trends does sales year like a I on taking that the next to historical guess update now Hey, and shift weighting you or cadence for to that you he products. mix considered last

Matthew Hulett

A on And Great April. the to it cold hear the especially through and seasonality Matt. This was then rebounded the is due compared continues July. and around May to slow It our continued temperatures quarter. pretty business for March Thanks returning in through March June through being really started Erin. it progressively we to couple question. indicated from Hi, about that and you. things slow, out that

supply talked So the seen nicely. weighted use versus out we've XX we're this. of so we've some, subsequent And very pretty is in we're do that other a and recovering what historical seen business. Since any around up PetMeds to. very extended your in kind similar as confident what to tick partners in that this other of have for we've that months practices parasiticide contracting. follow answer maps typically other to we data Bruce, been we chains have an the business and season we view years, it's you we've to question of away, the a heartworm, lot around It's extension six comments? heavily towards and and being To season, flea point or season. And

Bruce Rosenbloom

No, Matt.

you think covered there. everything I

Erin Wright

trade has in products? be changed months? six for broadly, Okay. you on from instance, any how Thanks. Or anything three customer tougher down behavior, of terms and you seeing And about owners flea tick of spending backdrop? packs Or pet Got it. changes thinking or macro indicative are months a in a would in pet then, in consumer? And to else moving more are change

Matthew Hulett

question. change future. to Erin, And in the it great hope we Yes,

is seen about down. know, As movement you to lot there. specific a dosage, that much. down good Maybe Rx not of this brand heavily the impact highly on category, we're And very but people trading loyal not a customers news terms least little seeing, trade of intend focused. brand the medication are bit and not in In of we're

that behavior. maybe add terms But anything Rx, trade we loyalty to food in some seen see down thinking other as particular, we'll have think consumable Bruce and I broader there. in down. not to of of a products, items, start trade brand we about

Bruce Rosenbloom

when been again, tough, Historically and a company's different I've the downturns. have few times through been with

of instead a pet month month out or that medication. so three down that trading stretching supply, supply, You buying a may perspective six see from buying a owners,

some haven't we We But past. behaviors yet. the seen that seen that's in have

now, something the significant on, has of not any that changes. tabs data just keep So shown as but we'll right

Erin Wright

customer Did quarter? you or acquired in Okay. growth customers And give question. one, new just housekeeping the total new

Matthew Hulett

We did XX,XXX.

Erin Wright

Thank you. Okay, it. got

Matthew Hulett

that we Erin. still pretty bet to the blunt, and cold. Rx, was and acquiring just April, a flea was since to add And on to those and be tick to month earth concentrated heartworm. You since great highly particularly be customers not are

actually, acquisition the optimistic very getting especially about customer underway, our pretty, were initiatives we in quarter. So later new

improvements optimistic we expect new So our throughout acquisition. there. more customer see calendar year good and We're getting to

Erin Wright

you. thank Okay,

Matthew Hulett

Thanks, Erin.

Operator

you. Thank

question. with with your Grady question Our Corey next comes Please proceed Jefferies. from

Corey Grady

ship my question. and customer for taking follow your Thanks to up on wanted Hi. initiatives. I acquisition

the of you you terms in channels far You are creative Can the so detail give and marketing results quarter. seeing during across tested new we're transformation? us where any the new on more

Matthew Hulett

conference. some I This your more hosting was But think rates. seeing channels. It definitely see get your macro performance into rates is Corey. stabilization, is news, lower on fantastic. Matt. we're which more to rates great recently seeing Thanks definitely year-over-year, meta Hey, the marketing which a Thanks But environments you in channels, in in in cases, question. the of challenge. go won't macro more definitely to for us and/or I get specific typically some we're for normal some cases, reduction level,

are high. channels still Some

definitely know media rates oriented seeing in have readjusted they I we're companies think I a think social how is, around rationalization we the mix. all growth about but think their issues

about net beneficiary kind ago results for this macro. is, that And marketing I going partners the some there. months strategy, us And The the on our app, a then we've base. returning new funnel, time we've lower lean of think talking a on as to focused aka six about that long strong and PetMeds new CMO brand that's a micro performance is we only had and on really is moved new to starting PetMeds. into you be for to a since know, shift its we definitely time more seen spent

We net due and expect question, expect about we to over to those we're answer more that feeling them. and customer those efforts, continue calendar year, this to optimistic see Corey? growth your new Did

Corey Grady

reorder tick following then precede really the in to the change come have Yes, question, known in sales it typically And reorder second given flea did. your weakness helpful. flea then coming seen my change for seasonality relative up would any did and into tick, the you in so a industry kind expectations? how It's that the I just quarter, your business? vet and to on of And guys

Matthew Hulett

lot Yes, and first. answer been Corey, and about wouldn't optimistic, a have [indiscernible] will more I the how was a quarter, I June then lot for first got Thanks that. question With May feeling optimistic. the subsequently April, thanks. I very

of pattern concentration typically to prescription as to first is a we revenue. were recovered we vet cycle, buyers vet it recover the for like July look acquisition colder there. on quarter and a the returning because the be continues the starting to into in much secondary. weren't temperatures. starting cycles, seasonality the with slow PetMeds in and to haven't But that cycle, side. the we lot Again, expecting similar was We consumers the as of the the up And with we that the side little terms that to the actually get new the to warm So where with vet are customer that of do also, even terms tend things gets seen are see

we think that's answered going I not? come Corey, much into So don't your question next of a be this quarter. or for to us headwind know that if don't as

Corey Grady

It did. Thank helpful. That's you.

Operator

Our proceed with next Anthony & question question. Company. [Operator Sidoti Lebiedzinski is Instructions] please your with from

Anthony Lebiedzinski

Yes, good question. afternoon. And thank you for taking the

acquisition look at if traditional advertising PetMeds as far talk I customer the of as about new costs. way So how and

LTV for about of How stock I number that I all on think looks basis? the that How going old was you've to for talked think that we kind about a about know, the for just CAC. should timers, forward? But us, covered long about Matt, more time. like a go guess So we $XX quarter. should forward we've

Matthew Hulett

to referring number CAC. $XX Anthony, the absolute for you're is

Anthony Lebiedzinski

Right, yes.

$XX? that divided So out if amount by to which number I take said, was customers, as just far XX,XXX, the of as so new advertising the comes you dollar close as

Matthew Hulett

want make Yes. I we're looking same at sheet. to sure the just

if that, In better of you're are number we're a about actually for feeling terms CAC, absolute the asking question. directional

CMO that company. it's the [ph] for for to So CAC it's bit little number as wasn't actually the media a stabilized, this to best CMO, a forces, the us my quarter CAC And is [impressive] the we for mix. for stint business decreased been more but first handed higher due

stable well. opportunity engagement products more So about. we over The get and a more it's pretty number relatively up to go broad and recurring sell time that of about forward talk going we we on targeting more But been goes as because with hope and CAC we're But been catalog not that just and to thinking array actually a down. a revenue products. calculate, broader get basis, as and stable easy since has metric a LTV it's

So it's mix. And time, as And think maybe going then or macro media which $XX hasn't a us up I think down been I think in the LTV been environment question, pointed to over goes I our about also as think your right smarter is worried increasing we've lower bit time. much answer I over Anthony, the past. current little gotten now

week-over-week improvement and absolute than increases, other we've of stabilize CAC is that's month-over-month, So price about to be feeling can't seen in hope helpful. predict the so number I market going I what starting pay environment. to we're terms better We don't good.

Anthony Lebiedzinski

good. sounds that Okay,

Okay.

customers I -- if details as on to but as as don't sort any us your actually with us you fill that? relationship I of it's a far still Vetster, customers Vetster and can you PetMeds as know or or using own versa. customers any -- So as sort you Vetster additional orders, the know give so far vice talk far early about can specifics, of to And color want color using as but their give

Matthew Hulett

the a And inside private PetMeds a embed first of as Yes. was Vetster. is to startup. label Vetster integration did we

have who's traffic it it was small amount really I But good really, the There” whether moment service. it's now. listening A try, are encourage or of delighted You a works everyone “Watson fantastic. to Are determine really and and overall right it a by they works B, customers to And So not,

really the Vetster Vet things. be be that the some labeled the Secondarily, And increasing our will site, our interesting months, Vet for products marketplace next will in start us and will and come the more be big do launch several us private for the the that'll inside where to opportunity volume properties. will on of getting And PetMeds exposure also Live Live. mobile

The first just on with pet telemedicine a engage appointments to part site. is live the

services, sub others secondary next is the platform. to But will of usage is And lot start customers. lot let's our we're launching, current to the from will AutoShip, other be component of The the to several some be an seeing host of we'll there, extended and up there's say whole months a get, a their in goal then be first a Vet Anthony. Live going current

launched we first, in things first work. at So

The on up three live in property next PetMed is second the be that should months. our getting point

Anthony Lebiedzinski

sequential companies, than other lastly, for me, consumer year dealing your then of actual so lower than bloated inventories, And a they're and lot Okay. lower basis. is with inventory where unlike last

inventory. I like feel you said, do that mean, being you have So adequate

from Of issues hearing course, companies. there's we're still ongoing chain that supply other

you can So just as about that well? talk

Bruce Rosenbloom

I'll This question. Bruce. Anthony. Yes, is take that

we to reduce buying. from mentioned additional And had end as last March quarter, on fluctuates due at opportunities an of inventory far opportunistic time-to-time, call, the to inventory price. as the the opportunity in take we mostly Our to

we that. ahead So went pursued and

the XX. as although sales, up March fairly recovering So still of we slow through quarter, April. in definitely we're stocked were And

not saying long normalized lead we'd the that's cut like they but procure. since little short really a bit levels where right maybe lower million, times to level, was we from based relationships we direct And be. around manufacturers, too probably with to XX a XX where seasons, to maybe past I are than now, do the inventory So million are how have used on in

there's take usually So traditionally enough no we usually those that advantage We'll we at to reduced of around are XX/XX. to so at there, be have if opportunistic, concern cost. be going And always of buy an a going opportunity come year, the up that. to the end

it. opportunity. But how see We'll, shapes there's we'll it of advantage take an up. So

Anthony Lebiedzinski

Thank right, right. All Bruce. And Matt. terrific. you, thank you, All

Matthew Hulett

Thanks, Anthony.

Operator

you. Thank

Matt has CEO call would remarks. to I of portion question-and-answer the now the Our company concluding for his Hulett, ended. to back call the turn like

Matthew Hulett

you, Thank operator.

a trusted as progress status our and As expansive our were pet heard, out hard forward detail leverages than is of a you ecommerce ecommerce transform experts. the a and in health the future with updates too just a will continue future. our just more We to prescription you and and strategy distant reflects that I brand to look subscription providing not to much broader building PetMed into company. working

confidence of this for our call. the always, As operator, Thank And employees, customers, listening. conference you thank continued all ends partners, and your support. you and investors suppliers, for to

Operator

This concludes today's conference.

participation. for You at this lines may time. disconnect you your Thank your

PetMed Express (PETS) 26 Jul 222022 Q1 Earnings call transcript