PIK - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Kidpik Corp full year and fourth quarter 2021 earnings conference call. Today's call will be conducted by the company's Chief Executive Officer Ezra Dabah, and it's Chief Financial Officer Adir Katzav.

Before I turn the call over to Mr. Ezra Dabah, I'd like to remind you that statements made in this conference call concerning future revenues, results from operations, financial position, markets, economic conditions, growth objectives, product releases, partnerships and any other statements that may be construed as a prediction of future performance or events are forward-looking statements, which may involve known and unknown risks and uncertainties, and other factors, which may cause actual results to differ materially from those expressed or implied by such statements. Non-GAAP results will be also discussed will also, excuse me – will also be discussed on the call. presentation company's information provided ongoing purposes the data useful for believes only. the concerning operations company of provides non-GAAP supplementary informational The and is Ezra turn said, call like that begin. to With over I'd to Dabah to the

Ezra Dabah

Thank you operator.

we which and our us business to son public then as are Moshe a any highlights Operating will going we stand start who in followed seeing. to We're is I on our through. of we review Chief of may some review, some conference with call you by We and margins are is Technology will a call everyone our our the for second take to both drivers Officer of available happy my line of to welcome by and KPIs, trends Dabah, And commenting CFO a will company. financial Chief top terms open also financial and what have. the start Officer questions and our Q&A.

First, shop, or from QX represents quarter, ended fourth is small million and were box. The and of eCommerce unchanged our challenging. growth $X annual established discussed of nearly increased we toddler Also sales $XXX,XXX. sales the girls by a being to quarter of for million, product the although increase brought to that and from $XX.X from online our subscription boys namely XX% revenue lines increase our fashionable up year. The which versus the largely prior drivers X.X last what XX% revenue million year,

social to customer and The mainly which call. QX access was believe media in future. in across challenge near acquisitions. this remain We advertising data in new will in platforms, the due As discussed impacted unavailability changes reduction place our revenue

change. overcome market-wide to working are We this

We ambassador channels, TikTok, search, our expended on focus newly Snapchat. program, such and are existing Google our as Pinterest intensifying

our similar partnership introduced amongst brand our announced of we awareness with customer partnerships will build also earlier channels. our new In existing which Disney in this gain to contain to collaborations databases addition, we to new team acquisition new brand month, adding that The customer and upon aim us is process enable audiences. target that

strategy key the initiating parenting experience enlist a with campaign influencers to influencer with followers. will in share are space fashion paid where we Kidpik and their many We their

summer to to is projected We YouTube convenient-free mail personalized channels out are direct our audiences. note TV of service important are for roll upcoming strong in-home to advertising styling the we to the communicate It's pursuing as fundamentals are that first our the targeted Connected season. and strengthen. And time of future industry new planning this for our and to business

built have an executive time-tested and wear great that a management We children's the industry. team in brand has

coupled wear bodes the have of love in of within to kid, subscription my the with for Kidpik branding, market sensitive our we us and is by known subscription The well provide our general, price great, value sourcing, knowledge obsessed with quote the children's great a a analytics product combined around I lots in reviewed we thanks. knows one and be growing fastest company subscription play all as industries. of amazing to service us members gives and built kids immense deliver marketplace and enable to merchandising, we consumer. technology in-house data-driven Our the unique This position and and

reviews with in coming have XX,XXX star five more We happy daily. over reviews

and kids be look changing assets our great that parents are mission inspire high make excited the by fulfilling to way confidence. personally-styled delivering We shop quality of

all on this retail selling on shop.kidpik.com, our channels. website eCommerce brand eCommerce you our our to and and growing focused opportunities. to Lastly, Kidpik subscription where we have growth us we built own other we platforms invite see are fashion brand, great experience expand time, beyond At sales which opportunity own gives the which through we by

growth have we key have acquisitions. we takeaways – a challenge that for potential strong the we of the are, will potential believe and overcome new reaccelerate and strong pace So the current

are product us proposition business the our team, the the we will Kidpik objectives. and have and scale at value that to underlying growth confident We able reach that

Last to Our to great that services make Sichel for his the at Co., a Member. family Marketing joined decade and fun outfits spent is least, event appealing and for Board an confident at child, are feel but almost getting Officer time, end. as their years children expert and unboxing more and marketing Burlington value our as we parents experience Independent Stores. known products look expertise. having and of the discovery who that quality stylist Having provide. not & a subsequent as Bart announced Bart an XX quarters’ Board Chief We Directors the McKinsey

turn great are brings he have With We I'll to joined value excited experience, and over to Adir? to call Bart Bart. the marketing believe Adir. that, our and company. Welcome Kidpik resources,

Adir Katzav

Ezra. Thank you,

in last mentioned, toddler in we to higher Ezra in a Girls platforms. the changes in collections, and because was lines. of QX XX% revenue in a we revenue was in in access, media sales data compared The XXXX increase decrease of million XXXX a across million XX% collections, acquisition for March, during customer fourth to The mainly due in the year each social As was unavailability collections, XXXX launched to year product which new reduction for the XXXX. of The our revenue million launch June, increased decrease year-over-year. year. advertising revenue by quarter the boys of result $XX.X fourth $X.X $XX.X which quarter

at to XXX,XXX. by increased website by increased increased $X.X to XX% sales $XX.X channel, XX% Looking by XX% sales million. sales by Amazon to Online subscription year million. full revenue

$XX.X revenue full During year. XXX% by million. zero boys by XXX,XXX increased the versus apparel girls’ year product last to revenue increased apparels $X.X by Total line, was XX% million, to

XX% XXX,XXX. increased XXX,XXX. website Looking QX by to sales million were $X.X sales channel, by Online year-over-year. by at to revenue XX% of increased decrease Amazon sales subscription a XX%

by by apparel revenue boys’ decreased last versus product million. apparel XX% Turning Total Girls’ XXX,XXX million, X was by to to year. revenue decreased to X X% zero line. QX

Active subscription. by by or recurring subscription revenue increased year to boxes full to million. $XX.X Moving XX.X%

for million. subscriptions million increased XX.X% decreased $XX.X of represents that first revenue. New to XX% Total subscriptions by XX.X% to total $X.X box by

Turning to of was XX.X%, basis an points margin quarter in the Gross for compared increase margin. gross quarter XX.X% XXX XXXX. of fourth the to

quarter to basis for items year, Shipped an to Full to by quarter the increase gross million XX.X% For compared average were for to quarter XX.X% XX.X% last million, year. last Keep rate margin of an XXX,XXX decreased The the a year was increase $X.X for compared XXX was the last of year. year XX.X%, last and rate compared company. keep shipped Full was year compared year. XX.X%. points year, rate full XX.X% the XX% compared record keep $X.X to XX% fourth XXX,XXX year. items represents the approximately the for to fourth last

a of year. The to million loss loss net net net the – line, $X.X share loss last approximately $X.X bottom share share million loss of the per of million to loss or loss for year. $X.X On per $X.XX the of approximately $X.X year of $X.XX $X.XX for loss or $X.X was was per a million or a per million or compared last share quarter compared approximately $X.XX a

equity was expense due offset in to partially in EBITDA, compensation in net adjusted to a non-GAAP quarter. primarily the compared quarter loss million year, for to XXX,XXX XXX,XXX by best $X.X fourth the last increase Speaking recorded $X.X million

resulting IPO year balance November, We end per the the shares to public XXXX XXXX. cash Now million. November, $X.X in of Cash million the of the of gross at credit. million, a and in end $XX.XX of the offering and sheet the after to we our completed paid $X.X IPO in proceed flow. compared of net our In line about full $XX approximately was million million price share approximately issuing aggregate proceeds X.X off XXX,XXX at $XX.X of XXXX, at

million As will assets, operator X, total current add it current liabilities to capital turn back of Operator? working XXXX, January that, of XX.X With million. in total I for we and million XX.X the the X.X Q&A. in

Operator

proceed with Instructions] your EF Our Hutton. you. Please Thank from comes Eddie first question. question Reilly with [Operator

Eddie Reilly

I anything to is if you’d roughly it was media on as versus the the months order maybe environment effective same in comment make guys. done is advertising more Hey Facebook the social fourth ago. today wondering few I’m or wondering maybe in if advertising quarter.

Moshe Dabah

Hey, this is Moshe. I’ll take that.

Ezra Dabah

ahead. Go

Moshe Dabah

and with XX Hey, us definitely customers struggle been it’s in us improvements Facebook they’re to a changing Facebook, basis. been they’re able telling on some algorithms, everyday identify get put help has the a believe has terms a better iOS the data being place. that I question. good It’s to the making restrictions what in of

Eddie Reilly

for or driven me, new the the Got rate keep Okay. increase this existing a little what's that keep And bit you congrats rate? driving on from really Could unpack in customers? customers the, more there. on it. Is

Ezra Dabah

answer that go is have ahead versus, with we existing you. so do Moshe,

Moshe Dabah

Yes.

of So, points quarter keep on basis. a or increasing, a for point to that And two is between keep the in or keep so. it, quarter anywhere improvement last between rate rate we year the saw quarterly

showing platform. the just improvement it's the of So,

Our want. that ability to get customers merchandise a our

are and the level year very saw So keep happy, for of in very we pleased the of rate with quarter XX%. XX.X% last the as we

Ezra Dabah

the as majority business repetitive. vast which is Eddie, our But of subscription, is

coming definitely almost is And, majority vast but both. from it's So XX%. the repetitive

Eddie Reilly

to color Amazon Could great. sales a some me then Okay, you're have channel? what looks drive like in doing increased that lot. growth give And you on on,

Ezra Dabah

growth more we in items have would at handful we couple time, basic are of that much channel of say particular only It basically ours. a was I selling this of

and Target We so the potentially Amazon, look see more basically be on other And because through to on again, stores could an forward have we be Amazon Walmart in on growth just not it a sell and brand other in in or eBay potentially platforms. we platforms. future we because

So forward Kidpik to the we sell look do we look, platform that expand product the we do through.

Eddie Reilly

and the of finally guys what's And you shipping have? handling me, one on it. contracts but, the last Got for term

Adir Katzav

somewhat of do have if with don't about with our has to The discounted have there FedEx, information of is do – XXXX. part Our contract I portions the portions, those rates. does contract. evergreen. some those, any There the expiring is contract it with January but And to that's public part know expiring we in that, are of is not another

Eddie Reilly

shipping guys per offset prices to to was had any, wondering if potentially increase any ability you in box I any increases prices. maybe

Ezra Dabah

increased actually, of past some over stock quarters additional the merchandise of prices we far east. Yes, the overcome bringing from the the have to, expenses in somewhat for couple

most have So no different other than same. the retailers seen do we

sure So continued make and and to experience costs. the additional extent we do any to targets high we've in use so that met that are

Eddie Reilly

Great. Thanks guys. right. All it. Appreciate

Ezra Dabah

Thank you.

Adir Katzav

Thank you.

Operator

question your with Please Our from Riley. comes B. Susan proceed question. with Anderson next

Susan Anderson

I say revenue but did subscription curious, late, evening. Hi, on got was guys I missed box I the you down in this. the was good may quarter? have why

Adir Katzav

down, during being acquisitions the quarter to Mainly new due acquisitions.

Susan Anderson

Got it.

it. Got Okay.

Adir Katzav

to, That has yes.

Ezra Dabah

Yes – restrictions, media there we on certain Yes. yeah. that said new was, that Acquisition social you platforms its restrictions, impact privacy that, impact know?

Susan Anderson

guess those year as just kind Okay. any And by consumer maybe guess, along the seeing look I from your this not and inflation I I'm last you're lines, though, spending curious year. then, stimulus of customer, change into cycling behavior just in we of given

Ezra Dabah

We of haven't that as now. seen

Susan Anderson

first then and driving to in this year, and the drivers And awareness those how mean be just And how expecting subscription Okay. you the Disney just by the down with about of then are the you brand boxes, brand? thinking to for the think quarter? what that's are I then do growth going you are like partnership, to guess, for again channel

Ezra Dabah

continue to we Yeah, taken few this change a that quite that. we are to particular expecting at measures have time,

a Disney. We with intensifying similar as implementing collaborations we companies speak we are did paid other program what to are influence we with

really to TV, Connected looking much such played like. as that are we in at to be and TikTok, before will And intensifying We haven't we some the new Snapchat YouTube, specifically played other other look really forward us. of haven't channels intensifying we which channels in that

Susan Anderson

help have by Got the talk about did partnership guess, guys terms and on, how drive it. think for to in new of will impact awareness an of And and you're you just brand growth? Disney you expecting I the channel what growth this year

Ezra Dabah

Yes.

whole, the projection. don't On about we speak future

on So that. commented haven't really

even Disney done to time relates maybe the partnership done or as partnership third with have is have By a second The Dozen. a We Disney. And we the new movie, it that this Cheaper the time

the for forward in look we future. So others

Susan Anderson

Great.

much. so Okay. Thanks

guys. You

Ezra Dabah

Thank you.

Adir Katzav

Thank you.

Operator

turn the comments. to We question-and-answer back to I'd of Dabah call the end for over have Ezra like reached the closing now session.

Ezra Dabah

us joining you Thank interest. you, for Operator. support. you for Thank for all your your you today. Thank Thank

Wishing Thank If contact you. at upcoming any questions, you day have of April. additional and great please new us month everybody ir.kidpik.com. great a

Operator

conference. today's concludes This

your for your we thank time, disconnect at may lines and you participation. You this

Kidpik (PIKM) 1 Apr 222021 Q4 Earnings call transcript