Q4 2021 PARTS iD Inc Earnings Call
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Thank you for joining us today to discuss PartsID's fourth quarter and 2021 full year financial results. On today's call are Nino Cipina, Chief Executive Officer, and Kailash Agarwal, Chief Financial Officer.
Thank you for joining us today to discuss parts Ids fourth quarter in 2021 and full year financial results on today's call are Nino Cioppino Chief Executive Officer.
Tell us Agarwal, Chief Financial Officer, I'd like to point out that certain statements made during the presentation are forward looking statements.
These forward looking statements reflect management's judgment and analysis only as of today and actual results may differ materially from current expectations based on a number of factors affecting parts Ids business.
These forward-looking statements reflect management's judgment and analysis only as of today and actual results may differ materially from current expectations based on a number of factors affecting part's identity.
Accordingly, you should not place undue reliance on these forward-looking statements.
Accordingly, you should not place undue reliance on these forward looking statements for a more thorough discussion of the risks and uncertainties associated with the forward looking statements to be made in the conference call and webcast. We refer you to the disclaimer regarding forward looking statements, including in our fourth quarter 2020 earnings release, which was furnished to the SEC today.
for more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in the.
We refer you to the disclaimer regarding forward-looking statements, including in our fourth quarter 2021 earnings release, which was
on Form 8K, as well as the company's most recent annual report, Form 10K, and other filings with the SEC.
Form 8-K, as well as the company's most recent annual report Form 10-K , and other filings with the SEC. The company does not undertake any obligation to update or alter any forward looking statements whether as a result of new information further events or otherwise.
The company does not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, further events, or otherwise.
In addition, the company plans to refer to certain adjusted non-GAAP metrics on this call. Explanation of these metrics and reconciliations of GAAP metrics to those non-GAAP metrics can be found in the earnings
Additionally, the company plans for further certain adjusted non-GAAP metrics on this call explanation of these metrics and reconciliations of GAAP metrics. So those non-GAAP metrics can be found in the earnings release issued earlier today, which is also posted on the press release page of our website at Www Portside, Inc. Dot com.
earlier today, which is also posted on the press release page of our website at www.partsidinc.com. Finally, as a reminder, a slide presentation is accompanying today's prepared remarks. This presentation is viewable from the webcast link located at www.partsidinc.com.
Finally, as a reminder, a slide presentation is accompanying today's prepared remarks. This presentation are available through the webcast link located at Www dot parts IDM for Dot com.
With that I'll turn the call over to Nino Cioppino, Chief Executive officer of parts I D. Nino.
Good afternoon, and thank you for joining us it's great to reconnect with you today to share the details of parts Ids fourth quarter and full year 2021 results.
Speaker Change: Good afternoon and thank you for joining us. It's great to reconnect with you today to share the details of parse IDs 4th quarter and full year 2021 results.
Speaker Change: Before we begin, I want to spend a moment to acknowledge our colleagues in Ukraine.
Before we begin I want to spend a moment tech knowledge our colleagues in Ukraine.
Speaker Change: As many of you know, PARS-ID has strong ties to Ukraine. It is home to many of our independent...
As many of you know parts I D has strong ties to Ukraine. It is home to many of our independent contractors on behalf of the entire parts I D organization I want to express our concern for the safety and wellbeing of our teammates in Ukraine, and our sympathy for everyone who has been personally impacted.
Speaker Change: On behalf of the entire PartsID organization, I want to express our concern for the safety and well-being of our teammates in Ukraine and our sympathy for everyone who has been personally impacted.
Our colleagues have demonstrated perseverance and courage and devotion to our company. Despite these difficult circumstances.
Speaker Change: Our colleagues have demonstrated perseverance, courage, and devotion to our company despite these difficult circumstances.
Speaker Change: They continue to inspire us. Our thoughts are with them during this challenging time.
They continue to inspire our thoughts are with them during this challenging time.
Okay.
Moving on to a business overview.
Speaker Change: Since PartsID has only been a public company for a little over one year, many investors are still new to the story.
Since park's idea has only been a public company for a little over one year. Many investors are still new to the story.
Speaker Change: Therefore, I'd like to take a few minutes to provide an overview of our business, the technology platform, our operating model, and of course, our vision and mission.
Therefore, I'd like to take a few minutes to provide an overview of our business. The technology platform, our operating model and of course, our vision and mission.
Part of the idea of a technology driven digital Commerce company Unambitious to transform that 400 billion dollar plus U S auto aftermarket and the 100 billion dollar plus adjacent complex parts markets.
Speaker Change: Parts ID is a technology-driven digital commerce company on a mission to transform the $400 billion plus U.S. auto aftermarket and the $100 billion plus adjacent complex parts markets by focusing on the customer's needs
Focusing on the customers needs.
Speaker Change: and using purpose-built technology and data to create custom infrastructure and unique user experiences where customers can quickly and easily find all the parts and accessories they need, get customer support by
And using purpose built technology and data to create custom infrastructure and unique user experiences where customers can quickly and easily find all the parts and accessories they need.
Get customer support by highly trained agents and be so satisfied with their experience shopping this category.
Speaker Change: and be so satisfied with their experience shopping this category that not only will they come back in the future, but they will tell their friends and families too.
That not only will they come back in the future, but they would tell their friends and families too.
Speaker Change: We work to achieve this through our platform business model, which brings together over 1,000 industry suppliers, more than 5,000 brands, approximately 18 million product SKUs, and over 14 billion product and fitment data points.
We work to achieve this through our platform business model, which brings together over 1000 industry suppliers more than 5000 brands approximately 18 million product Skus and over 14 billion product data product and statement data points that.
Speaker Change: The technology platform integrates software engineering with catalog management, data intelligence, mining and analytics.
The technology platform integrates software engineering with catalog management data intelligence mining and analytics.
Speaker Change: along with user interface development, which utilizes distinctive rules-based parts fitment software capability.
Along with user interface development, which utilizes distinctive rules based parts fitments software capabilities to.
Speaker Change: To handle the ever-growing need for accurate product and parts data, we utilize cutting-edge computational and software engineering techniques, including Bayesian classification, to enhance and improve data records and product information, and ultimately to contribute to the overall development of an engaging user experience.
To handle the ever growing need for accurate product and parts data, we utilized cutting edge computational and software engineering techniques, including Beijing classification to enhance and improve data records and product information and ultimately to contribute to the overall development of an engaging user experience.
Furthermore, the technology is architected to support much more than just car parts and accessories, we demonstrated the flexibility and scalability of the technology by launching seven of adjacent verticals, including boat I D. Dotcom motorcycle idea dotcom camper I D dotcom and others in.
Speaker Change: Furthermore, the technology is architected to support much more than just car parts and accessories.
Speaker Change: We demonstrated the flexibility and scalability of the technology by launching seven adjacent verticals including BoatID.com, MotorcycleID.com, CamperID.com, and others.
Speaker Change: in August 2018, all of which leverage the same proprietary technology platform and data architecture and with a unified shopping cart, enabling customers to shop across all eight verticals and check out seamlessly using one cart.
<unk> 2018, all of which leverage the same proprietary technology platform and data architecture, and with a unified shopping cart, enabling customers to shop across all verticals and checkout seamlessly using one cart.
There are several key points that highlight the attractiveness of our platform business model and underscore how parts idea as distinguished from the competition.
Speaker Change: There are several key points that highlight the attractiveness of our platform business model and underscore how PartsID is distinguished from the competition.
Speaker Change: First, our distinctive technology provides accurate fitment data, which enables a successful experience for the auto parts consumer and supplier. Unlike any other consumer product category, the success or failure of selling auto parts and aftermarket accessories comes down to fitment data that sellers like us add to our product offerings.
First our distinctive technology provides accurate fitbit data, which enables a successful experience for the auto parts consumer and supplier.
Unlike any other consumer product category, the success or failure of selling auto parts and aftermarket accessories comes it comes down to fit meant data that sellers like us add to our product offerings.
Speaker Change: Fitment is the compatibility of each part and accessory to each specific vehicle year, make, model, engine type, trim, and more. Having fitment data that is accurate, complete, and in the right format for each channel is crucial to a superior user experience and a successful customer.
Many of the compatibility of each part and accessory to each specific vehicle year make model engine type trim them more having fitment data that is accurate complete and in the right format for each channel is crucial to a superior user experience and a successful customer transaction.
Speaker Change: Furthermore, our proprietary technology enables us to test and add new product lines and brands rapidly.
Furthermore, our proprietary technology enables us to test and add new product lines and brands rapidly.
Second our product catalog of approximately 18 million product Skus and over 5000 branches is unrivaled. Our comprehensive catalog is enriched with nearly 14 billion data points related to vehicle parts advanced three D imagery in depth product descriptions customer.
Speaker Change: Second, our product catalog of approximately 18 million products used and over 5,000 brands is unrivaled.
Speaker Change: Our comprehensive catalog is enriched with nearly 14 billion data points related to vehicle parts, advanced 3D imagery, in-depth product descriptions, customer reviews, installation and fitment guides, as well as other rich custom content created in our in-house studio, specifically catering to the needs of our, of the automotive aftermarket industry, and is further complemented by highly trained and specialized customer service.
Reviews installation entertainment guides as well as other rich custom content created in our in house studio, specifically catering to the needs of our of the automotive aftermarket industry and is further complemented by highly trained and specialized customer service.
Third our proprietary capital efficient fulfillment model allows us to grow organically without the need for additional capital our network of over 1000 product vendors has enabled us to scale, our catalog size quickly and add adjacent verticals. Unlike traditional players that have more capital intensive businesses.
Speaker Change: Third, our proprietary and capital-efficient fulfillment model allows us to grow organically without the need for additional capital.
Speaker Change: Our network of over 1,000 product vendors has enabled us to scale our catalog size quickly and add adjacent verticals, unlike traditional players that have more capital-intensive businesses.
As we can test and add new product lines and brands quickly without tying up capital and without worrying about inventory obsolescence.
Speaker Change: We can test and add new product lines and brands quickly without tying up capital and without worrying about inventory obsolescence.
Speaker Change: Furthermore, our geo-optimized fulfillment algorithm determines which product vendor to buy from while the sale is being made and incorporates factors such as real-time inventory from our fulfillment network, customer proximity, shipping cost, and profitability.
Furthermore, our G O optimized fulfillment algorithm determines which product vendor to buy from while the sale is being made and incorporate factors such as real time inventory from our fulfillment network customer proximity shipping costs and profitability.
Speaker Change: This algorithmic approach allows us to increase fill rate and delivery speeds.
Algorithmic approach allows us to increase fill rate and delivery speed.
Fourth our enhanced customer experience as a result of rich content wide product range with ease of selection proprietary fitment data and highly trained customer service representatives, providing a data driven engagement platform for discovery and inspiration.
Speaker Change: Fourth, our enhanced customer experience is a result of rich content, wide product range with ease of selection, proprietary fitment data, and highly trained customer service representatives, providing a data-driven engagement platform for discovery and inspiration.
Speaker Change: This is demonstrated by one, our catalog size, which contains approximately 18 million products used.
This is demonstrated by one our catalog size, which contains approximately 18 million product skus.
Speaker Change: Two, despite the supply chain disruptions in 2021, our net promoter score reached a high of 70 in November and has continued to stay in that range.
Two despite the supply chain disruptions in 2021 our net promoter score reached a high of 70 in November and it's and has continued to stay in that range.
Speaker Change: Three, our overall product return rate across all eight verticals continues to be approximately just 5% versus industry averages of more than 20%. In a category as complex as parts and accessories, this is truly incredible and underscores just how effective our technology and data are.
Three our overall product return rate across all eight verticals continues to be approximately just 5% versus industry averages of more than 20% and a category as complex as parts and accessories. This is truly incredible and underscores just how effective our technology and data are.
Fourth, but certainly not least repeat customer revenue, which is defined on this slide represented 38, 4% of total revenue in 'twenty 'twenty. One this is a record for the company and its up and is up 420 basis points over 2020.
Speaker Change: Fourth, but certainly not least, repeat customer revenue, which is defined on this slide, represented 38.4% of total revenue in 2021. This is a record for the company and is up 420 basis points over 2020.
We haven't invested over 10 years building our platform and it's not easy to replicate in fact, our investment in technology and data is arguably the deepest competitive moat around our business and it has allowed us to expand into adjacent verticals leveraging a capital efficient just in time inventory model to offer the consumer.
Speaker Change: We have invested over 10 years building our platform, and it's not easy to replicate. In fact, our investment in technology and data is arguably the deepest competitive moat around our business, and it has allowed us to expand into adjacent verticals, leveraging a capital-efficient, just-in-time inventory model to offer the consumer an extensive selection and experience.
An extensive selection and experience.
Speaker Change: With that background, I'll walk through the key highlights from the fourth quarter and full year 2021, and then I will turn it over to Kalash for a review of the financial.
With that background I'll walk through the key highlights from the fourth quarter and full year 2021 and then I will turn it over to Carlos for your review of the financials. After <unk> finishes I will cover the opportunities we're laser focused on to drive growth in the strategic initiatives, we're executing against it to capture that growth after that we'll open the line.
Speaker Change: After Kalash finishes, I will cover the opportunities we're laser focused on to drive growth and the strategic initiatives we're executing against to capture that growth. After that, we'll open the line to questions.
Two questions.
Slide five please.
Slide five please.
Yeah.
Okay.
Yeah.
Yes.
Speaker Change: As you can see here, despite all the supply chain turbulence in 2021, we thrive.
As you can see here despite all the supply chain turbulence in 2020 , one we thrived year over year, we delivered double digit growth on a quarterly and full year basis. In addition, our full year 2021 revenue was nearly 56% greater than in 2019.
Speaker Change: Year over year, we deliver double-digit growth on a quarterly and full-year basis. In addition, our full-year 2021 revenue was nearly 56% greater than in 2019.
Speaker Change: This is a tremendous achievement that speaks to the resiliency and talent of our organization, not to mention the scalability of the investments we have made over many years in technology, infrastructure, and process.
This is a tremendous achievement that speaks to the resiliency and talent of our organization not to mention the scalability of the investments we have made over many years in technology infrastructure and process further.
Speaker Change: Furthermore, it's clear our strategic initiatives are working for us. As you can see in the improvement of KPIs like conversion rate, which increased 11.3%, average order value, which increased 12.9%, and repeat customers, which increased 440 basis points.
Furthermore, it's clear our strategic initiatives are working for us as you can see in the improvement of Kpis like conversion rate, which increased 11, 3% average order value, which increased 12, 9% and repeat customers, which increased 440 basis points.
Speaker Change: Repair parts, including original equipment, is playing an important part in our growth, as are the adjacent verticals, including boating and marine, motorcycle and power sports, and RV and camper.
Repair parts, including original equipment is playing an important part in our growth as are the adjacent verticals, including boating and marine motorcycle and power sports and RV and camber. What's most humbling is that we recognize we have only just scratched the surface in these categories and verticals.
Speaker Change: What's most humbling is that we recognize we have only just scratched the surface in these categories and verticals.
Turning now to slide six.
Slide six please.
Speaker Change: Well, starting with the onset of the COVID-19 pandemic, the last two years presented uncommon challenges for us and the entire industry.
Well, starting with the onset of the COVID-19 pandemic. The last two years presented uncommon uncommon challenges for us and the entire industry.
The rollout of vaccinations in 2021 helped kickstart the normalization process, though the global economy is still working through the aftershocks of the pandemic.
Speaker Change: The rollout of vaccinations in 2021 helped kickstart the normalization process, though the global economy is still working through the aftershocks of the pandemic.
Speaker Change: Supply chain disruptions impacted economies everywhere, due in part to repeated factory closures and port backlogs around the world.
Supply chain disruptions impacted every economies everywhere due impart to repeated factory closures and port backlogs around the world. These cascaded into global inventory shortages and widespread inflation. However, our team met these challenges head on by a leading into the advantages and flexibility of our platform.
Speaker Change: These cascaded into global inventory shortages and widespread inflation.
Speaker Change: However, our team met these challenges head-on by leading into the advantages and flexibility of our platform business model.
This model for example to mitigate the impact from product availability shortages, we adjust our sourcing logic to alternative vendors with better inventory positions.
Speaker Change: For example, to mitigate the impact from product availability shortages, we adjust our sourcing logic to alternative vendors with better inventory position.
Speaker Change: Simultaneously, we are partnering with select vendors to reserve inventory based on our projected demand.
Simultaneously, we are partnering with select vendors to reserve inventory based on our projected demand.
Speaker Change: In times like these, when inflation is pervasive in the economy, we work with suppliers to hold down the cost increases to the extent possible, and where necessary, we pass some of these increases on to retail prices.
In times like these when when inflation is pervasive in the economy, we work with with suppliers to hold down the cost increases to the extent possible and where necessary. We pass some of these increases onto retail prices.
One notable and clear advantage of our platform business model is the breadth of similar products available to our consumers to trade down the product value spectrum as prices increase.
Speaker Change: One notable and clear advantage of our platform business model is the breadth of similar products available to a consumer to trade down the product value spectrum as prices increase.
Speaker Change: By offering customers options down the value spectrum during times like this, we can capture sales which competitors with a stock and ship model may lose due to their limited product assortment and options.
By offering customers options down the value spectrum during times like this we can capture sales, which competitors with a stock and ship model may lose due to their limited product assortment and options.
We are leaning into this on the platform and with our call Center sales Representatives.
Speaker Change: We are leading into this on the platform and with our call center sales representatives.
Next as I mentioned it as I mentioned earlier parts I D has strong ties to Ukraine. It is home to many of our independent contractors. Fortunately many of them have been able to migrate to safer regions in Ukraine or to other countries and are continuing to work remotely.
Speaker Change: Next, as I mentioned earlier, PartsID has strong ties to Ukraine. It is home to many of our independent contractors.
Speaker Change: Fortunately, many of them have been able to migrate to safer regions in Ukraine or to other countries and are continuing to work remotely.
Speaker Change: Parts ID has no physical access in the country, and fortunately we haven't experienced any material disruption to regular business activities to date.
<unk> has no physical assets in the country. Unfortunately, we haven't experienced any material disruption to regular business activities to date.
Speaker Change: We are closely monitoring the situation, both the safety of our team members and the need to maintain operation.
We are closely monitoring the situation both the safety of our team members and the need to maintain operations.
Speaker Change: As the situation continues to evolve, we'll adapt with any needed temporary or longer-term adjustments as appropriate.
As the situation continues to evolve, we'll adapt with any needed temporary or longer term adjustments as appropriate.
Speaker Change: With that, I'll turn it over to Kailash for a review of the financials. Kailash. Thanks, Nido.
With that I'll turn it over to Carlos for a review of the financials.
Clos.
Thanks.
Good afternoon.
No I didn't say it.
COVID-19 supply chain disruptions caused about 1% while the gross margin.
Kailash Agarwal: COVID-19 supply chain disruptions caused about 1% fall in gross.
Kailash Agarwal: We were averaging 21.4% pre-COVID era.
You bet.
12% equal we knew that.
Kailash Agarwal: By the end of the next 12 months, we expect our loss margins to be exceeding 21.4% in line with pre-COVID years.
By the end of the next 12 months, we expect margins to be exiting 'twenty one person in language equal with you.
Kailash Agarwal: we would like to remind that we have a capital efficient just in time inventory model.
We would like to remind that we have a.
Capital efficient just in time inventory model.
Kailash Agarwal: As we don't carry the inventory, we don't have a fulfillment cost in our operating environment.
We don't carry the inventory we don't have a prepayment cost you know what I'll do.
<unk> expenses.
Apples to apples comparison.
Kailash Agarwal: Apple to Apple comparison of our gross margin with the competition calls for adjusting their gross margin for their full coolant cost.
We took competition clause for existing does gross margin or there could be cost.
With the initiatives listed on this slide we expect to progressively move the gross margin neutral.
Kailash Agarwal: With the initiatives listed on this slide, we expect to progressively move the gross margin needle to 23% to 23.5% in the next 12 to 36 months.
C.
Type of sand.
So this expense.
Well continue to slide eight.
Why did you do advertising buckets.
Kailash Agarwal: while digital advertising markets are also seeing some price inflation.
Seeing some price inflation, yes stay disciplined battery.
Kailash Agarwal: We are staying disciplined by varying our ROI framework across our various marketing channels.
Our playbook across our various marketing channels.
Kailash Agarwal: We also continue to innovate with new channels and are being very deliberate around where we invest across the marketing funnel to unlock the best efficiency.
We also continue to innovate with new tenants and I've been really deliberate.
We'll be in best clauses on marketing for the cause of the basically the Simpsons.
Currently whatever they'd been cross that variable as we really use performance based marketing.
Kailash Agarwal: Currently, our advertisement costs are variable as we heavily use performance-based marketing.
Yeah go ahead, he meant up anybody spend says it is.
Kailash Agarwal: The other element of variable expenses in SG&A is merchant processor fees for processing of credit card collections and fees for buy now, pay later service provider.
It is much simpler system piece of course is saying, Hey, these guys connections and peaceful but.
But I know, it's a service right.
Kailash Agarwal: Legacy business combination expenses was one time cost
You can see business combination expenses was what day plus.
Kailash Agarwal: The public company costs are $4 million, which is being partially driven by DNO insurance costs.
The public company costs four.
$4 million, which is being partially driven by D&O insurance costs.
Balance sheet and cash flow.
Hi, it's Tim.
Kailash Agarwal: Our Capital Efficient and Inventory Light model provides higher returns on capital employed by the government.
Well capital inhibition, an inventory light model has always had it.
On capital employed by the company.
This model enables us to expand the new lines of business and new markets without material investment in inventory.
Kailash Agarwal: This model enables us to expand in new lines of business and new markets without material investment in inventory and its products.
Yeah.
Kailash Agarwal: We had $448.7 million revenue with just averaging $1.2 million of physical inventory on hand. Over to you now.
We had put them in 48 7 million revenue it just averaging one 2 million okay.
Okay.
Oh did you.
Yeah.
Thank you Claus slide 12.
The markets we operate in are very large and they continue to grow.
Kailash Agarwal: The markets we operate in are very large and they continue to grow.
Kailash Agarwal: The specialty automotive equipment market in the U.S. was estimated to be a $48 billion market and it's estimated that 52% of this market is online and it's growing faster than brick and mortar.
The specialty automotive equipment market in the U S was estimated to be a 48 billion dollar market and it's estimated that 52% of this market is online and it's growing faster than brick and mortar.
Kailash Agarwal: This is exciting for us because this $48 billion specialty segment includes interior and exterior accessories, custom wheels, and performance products, which combined represent approximately 70% of our sales.
This is exciting for us because this $48 billion specialty segment includes interior and exterior accessories costume wheels, and performance products, which combined represent approximately 70% of ourselves.
The overall U S. Automotive aftermarket is estimated to be 439 billion.
Kailash Agarwal: The overall U.S. automotive aftermarket is estimated to be $439 billion.
This is also very exciting for us because we've invested heavily in growing our repair and originally equipment product lines and we're seeing the results. We now have 34 major manufacturer brands, including Dodge Jeep, Hyundai and Lexus and approximately $2 million originally equipment product Skus, which has significantly broadens our product.
Kailash Agarwal: This is also very exciting for us because we've invested heavily in growing our repair and our original equipment product lines, and we're seeing the results.
Kailash Agarwal: We now have 34 major manufacturer brands, including Dodge, Jeep, Hyundai, and Lexus, and approximately 2 million original equipment product SKUs, which has significantly broadened our product selection to now provide customers with a diverse range of both aftermarket and original equipment parts, all in a one-stop-shop platform.
Selection to now provide customers with a diverse range of both aftermarket and original equipment parts all in all in a one stop shop platform.
Kailash Agarwal: Next, looking to the right of this slide, is the estimated market size opportunity for the seven adjacent verticals we launched in 2018.
Next looking to the right of this slide is the estimated market size opportunity for the seven adjacent verticals, we launched in 2018.
Kailash Agarwal: Within these adjacent verticals, we're focused on boating, power sports, motorcycle, and RV camper, which combined represent an estimated $20 billion of total addressable market annually.
Within these adjacent verticals, we're focused on voting power sports motorcycle and RV camper, which combined represent an estimated $20 billion of total addressable market annually other.
Kailash Agarwal: Other research suggests the market sizes are even larger than this.
Other research suggest the market sizes are even larger than this.
Kailash Agarwal: In addition, these verticals are highly fragmented, and in most cases, there is no dominant online leader. This presents a substantial opportunity.
In addition, these verticals are highly fragmented and in most cases, there's no dominant online leader.
This presents a substantial opportunity for us in 2020 , one we hired general managers to lead the boating and RV camper verticals, and we're making progress developing them like we've done in the auto segment with car I D.
Kailash Agarwal: In 2021, we hired general managers to lead the boating and RV camper verticals, and we're making progress developing them like we've done in the auto segment with CAR-ID.
While we're still in the early innings with these adjacent verticals. We believe these will become large sales contributors in the future.
Kailash Agarwal: While we're still in the early innings with these adjacent verticals, we believe these will become large sales contributors in the future.
Kailash Agarwal: Earlier on the call, I stated that ParseID is on a mission to transform the $400 billion U.S. auto aftermarket and the $100 billion plus adjacent complex parse markets, and that's what we're doing.
Earlier on the call I stated that part's ideas on a mission to transform the 400 billion dollar U S auto aftermarket and the 100 billion dollar plus adjacent complex parts markets and that's what we're doing well.
Kailash Agarwal: We see a future where customers can quickly and accurately find and discover parts and accessories for all their vehicles and more on the ID platform.
We see a future where customers can quickly and accurately find and discover parts and accessories for all their vehicles and more on the platform.
Kailash Agarwal: We believe we're on the right runway for growth and that we've only scratched the surface of the markets we serve.
We believe we're on the right runway for growth and work and that work and that we've only scratched the surface of the markets we serve.
Turning now to slide 13.
Yes.
Kailash Agarwal: As you can see here, there are many market wins at our back, including one
As you can see here there are many market wins at our back including one.
Kailash Agarwal: The U.S. auto parts e-commerce market share is projected at over $22 billion by 2023. This is up from $16 billion in 2020.
The U S auto Parts' e-commerce market share is projected at over 22 billion by 2023.
This is up from $16 billion in 2020.
Kailash Agarwal: Two, the specialty equipment segment of the industry is forecast to grow to $55 billion by 2024 from $48 billion in 2020. In addition, as I said earlier, 52% of this segment's retail sales are online in the U.S., and this is our core.
To the specialty equipment segment of the industry is forecast to grow to 55 billion by 2024 from 48 billion. In 2020. In addition, as I said earlier, 52% of this segment's retail sales are online in the U S. And this is our core.
Three new and used vehicle sales are expected to increase.
Kailash Agarwal: Three, new and used vehicle sales are expected to increase.
Kailash Agarwal: 4. Miles driven is rebounding and soared in 2021 to 3.2 trillion miles. This is up 11.2 percent.
For miles driven is rebounding and sword in 2021 to 3.2 trillion miles. This is up 11, 2%.
Kailash Agarwal: 5. Many of the adjacent industries we serve are experiencing continued growth.
Five many of the adjacent industries, we serve are experiencing continued growth.
Kailash Agarwal: And finally, EV adoption is accelerating, and we believe we're well positioned to capture this emerging category with our platform business model.
And finally, EV adoption is accelerating and we believe we're well positioned to capture this emerging category with our platform business model.
With that said, let's turn to slide 14, and so I can elaborate on the EV opportunity.
Kailash Agarwal: With that said, let's turn to slide 14 so I can elaborate on the EV opportunity.
Okay.
In the U S sales of electric vehicles jumped to 83% in 2021 and by 2035 Evs are expected to increase to 26% of all U S light vehicle powertrain sales.
Kailash Agarwal: In the U.S., sales of electric vehicles jumped 83% in 2021, and by 2035, EVs are expected to increase to 26% of all U.S. light vehicle powertrain sales.
Kailash Agarwal: For electric vehicles, the demand for accessories is projected to be much higher compared to repair parts.
For electric vehicles, the demand for accessories is projected to be much higher compared to repair parts and with our extensive accessories product assortment, we are well poised to serve this increasing EV market.
Kailash Agarwal: And with our extensive accessories product assortment, we are well poised to serve this increasing EV market.
Kailash Agarwal: Our platform model allows us to capture shifts in consumer demand and to enter emerging and new product categories, such as EV parts and accessories, in a capital-efficient way to build a comprehensive assortment with minimal investment in physical inventory.
Our platform model allows us to capture shifts in consumer demand and to enter emerging and new product categories, such as EV parts and accessories in a capital efficient way to build a comprehensive assortment with minimal investment in physical inventory.
In November we launched an easy specialty shop on car idea dot com. The specialty shop includes charging equipment mechanical repair and maintenance parts electrical parts as well as popular accessories, such as body kids performance suspension systems, and custom wheels and tires.
Kailash Agarwal: In November , we launched an EV specialty shop on CarID.com. The specialty shop includes charging equipment, mechanical repair and maintenance parts, electrical parts, as well as popular accessories such as body kits, performance suspension systems, and custom wheels and tires.
Kailash Agarwal: The EV shop's wide selection is compatible with many of the best-selling EV models on the market today, including Tesla models, Nissan LEAF, Ford Mustang Mach-E, Chevy Bolt EV, Polestar 1 and 2, Hyundai Iconic and Kona, Audi e-tron, Porsche Taycan, and much more.
The EV shops wife's selection is compatible with many of the best selling EV models on the market today, including Tesla models, Nissan leaf Ford Mustang Mach E. Chevy bolt EV polestar, one into Hyundai iconic and Kona Audi E Tron poorest icon and much more.
We're very excited about the EV growth opportunity and as I stated, we're aggressively leaning into capture it.
Kailash Agarwal: We're very excited about the EV growth opportunity, and as I stated, we're aggressively leaning in to capture it.
Turning next to slide 15 for a review of our strategic initiatives and then we'll open up the line to questions.
Kailash Agarwal: Turning next to slide 15 for a review of our strategic initiatives, and then we'll open up the line to questions.
Slide 15 please.
We continue to execute against our strategic initiatives and we're orienting the business to succeed across each of these dimensions through a technology first approach and investing accordingly positioning our platform to adapt to the ebbs and flows in the macro environment.
Kailash Agarwal: We continue to execute against our strategic initiatives, and we're orienting the business to succeed across each of these dimensions through a technology-first approach and investing accordingly, positioning our platform to adapt to the ebbs and flows in the macro environment.
Kailash Agarwal: Our product catalog has grown to approximately 18 million product SKUs with many initiatives already underway to continue growing repair parts, original equipment, electric vehicle, private label, and more.
Our product catalog has grown to approximately 18 million product skus with many initiatives already underway to continue growing repair parts originally equipment electric vehicle private label and more.
Kailash Agarwal: In our boating and RV camper verticals, we've achieved approximately 85% product coverage and we have dozens of niche and specialty vendors in the queue to be added this year. We remain bullish on the long-term outlook of our multi-vertical strategy.
And are boating, and RV camper verticals, we've achieved approximately 85% product coverage and we have dozens of niche and specialty vendors into queue to be added. This year, we remain bullish on the long term outlook of our multi vertical strategy.
Kailash Agarwal: With regards to customer acquisition and retention, repeat customer revenue increased 420 basis points to 38.4% of revenue in 2021.
With regards to customer acquisition and retention repeat customer revenue increased 420 basis points to 38, 4% of revenue in 2020 . One we believe theres a lot of runway on the repeat customer side.
Kailash Agarwal: We believe there's a lot of runway on the repeat customer side.
Kailash Agarwal: Among our most important assets is a deep and growing data-driven understanding of our customers and their behavior.
Among our most important asset is a deep and growing data driven understanding of our customers and their behavior in.
Kailash Agarwal: In 2021, we onboarded new email marketing and customer segmentation software. We're also making investments in web analytics, conversion rate optimization, and brand positioning strategy.
In 2020 , one we onboard a new email marketing and customer segmentation software. We're also making investments of web analytics conversion rate optimization and brand positioning strategy.
Next we continue to make progress in pricing strategy.
Kailash Agarwal: Next, we continue to make progress in pricing strategy.
Kailash Agarwal: One, we created a new reporting and monitoring tool. Two, we updated the price policy on several key brands. And three, in other emerging categories, we identified further opportunities to improve our pricing strategy.
One we created a new reporting and monitoring tool to we updated the price policy on several key brands and three in other emerging categories. We identified further opportunities to improve our pricing strategy.
Kailash Agarwal: Finally, on the technology and data end, we expanded our shop by service type, and now this feature includes vehicle-specific product groupings for more than 500 repair tasks.
Finally on the technology and data and we expanded our shop by service type and now. This feature includes vehicle specific product groupings for more than 500 repair tasks.
Kailash Agarwal: This is made possible through robust vehicle fitment data and service classification.
This is made possible through robust vehicle fitment data and surface classifications.
Kailash Agarwal: Using shop by service type, the customer chooses the primary replacement item, for example, brake pads and the platform delivers a wide choice of results, while also showing complimentary or optional items frequently needed.
Using shop by service type the customer chooses to primary a replacement item for example, brake pads and the platform delivers a wide choice of results, while also showing complementary or optional items frequently needed for example, brake rotors brake fluid and even special break tools.
Kailash Agarwal: For example, brake rotors, brake fluid, and even special brake tools.
Kailash Agarwal: The benefit of this feature is that the customer can order all supplemental products at the same time, rather than later discovering that a necessary component is missing.
The benefit of this feature is that the customer can order all supplemental products at the same time, rather than later discovering that he necessary component is missing.
Kailash Agarwal: All products found via our shop by service type are guaranteed to fit the vehicle based on the year, make, model, and entered by the customer.
All product found via our shop by service type of guaranteed to fit the vehicle based on the year make model entered by the customer.
You've heard us talk about the investments we have made across our operations marketing and technology to build a unique and purposeful digital commerce platform for this complex category the.
Kailash Agarwal: You've heard us talk about the investments we have made across our operations, marketing, and technology to build a unique and purposeful digital commerce platform for this complex category.
Kailash Agarwal: The customer experience is what continues to drive every decision we make as we work to optimize it for the present and for the future.
The customer experience is what continues to drive every decision we make as we worked to optimize it for the present and for the future.
Kailash Agarwal: And we remain excited knowing that we believe we're just scratching the surface on our long-term potential. With that said, we can open the line for questions.
And we remain excited knowing that we believe we're just scratching the surface on our long term potential.
With that said, we can open the line for questions.
Thank you will not be conducting a question answer session.
Kailash Agarwal: session. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
To be placed in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
For instance, our SKU if he'd like to remove your question from a Q1 moment. Please while we poll for questions.
Speaker Change: first question today is coming from Maria Ripps from Canada Cordial.
Our first question today is coming from Maria <unk> from Canaccord. Your line is now live.
Great. Thanks, so much for taking my questions and congrats on the strong quarter here.
Maria Ripps: Thanks so much for taking my questions and congrats on the strong quarter here. Could you maybe talk about your inventory availability more broadly? And it seems like you've implemented a number of initiatives to improve your availability in Q4. But could you just comment on what you saw in Q4 maybe compared to Q3, and how are things sort of developing as we are sort of here almost exiting Q4?
Could you maybe talk about your inventory availability more broadly it seems like you've implemented a number of initiatives to improve your availability in Q4, but could you just comment on what you saw in Q4 may be compared to Q3, and how are things sort of developing as we are kind of key almost exiting Q1.
Uh Huh good afternoon Maria Thank you for joining us joining us for Q&A is our chief operating officer RJ ROI RJ can feel this yeah.
Speaker Change: Good afternoon, Maria. Thank you for joining us. Joining us for Q&A is our Chief Operating Officer, Ajay Roy. Ajay can field this.
Ajay Roy: I'm here. Yeah, so on the product availability or inventory availability.
Hi, Maria Yeah, so on the product availability or inventory availability continues to be an issue in 2022, However, as part of our strategy for 'twenty going into there are few things that we've done from outside.
Ajay Roy: It continues to be an issue in 2022. However, as part of our strategy for 2022,
Ajay Roy: There are a few things that we have done from our side. I did speak about it on the last call also, where we were in the process of working with our top suppliers to reserve inventory without actually owning inventory, so we are using their locations as well.
Did speak about it on the last call out so bad we went.
In the process of working with our top suppliers to reserve inventory without.
Without actually owning inventory. So we are using their locations as a supply points.
Ajay Roy: But another thing that we have also done is where...
But another thing that we have also done as well.
There could.
We are actually making the suppliers, which have highest product availability is a primary source. So for example across some of our performance parts.
Ajay Roy: we are actually making the suppliers which have highest product availability as a primary source. So for example, across some of our performance parts, what we decided is to do is one of the suppliers where who had highest product availability, we made them our primary supplier. And in spite of the fact that some of the costs might be higher, but then of course we are passing that cost along to the consumer.
What we decided is to do it as one of the suppliers.
Who had highest product availability.
<unk> made them our primary supplier and in spite of the fact that some of the cost might be higher but then of course, we are passing that cost along to the consumer and availability as you can understand this key hence we have taken these steps.
Ajay Roy: And availability, as you can understand, is key. Hence, we have taken.
Yeah.
Got it. Thank you so much and then maybe one other question here can you just talk about your efforts to diversify your advertising channels and I think you noted a lower conversion rate in Q4, instead of what's causing that is that is that sort of flow of inventory availability again or is it.
Speaker Change: Got it. Thank you so much. And maybe one other question here. Can you just talk about your efforts to diversify your advertising channels? And I think you noted a lower conversion rate in Q4. What's causing that? Is that sort of lower inventory availability again, or are there any other reasons there? And are there any initiatives that you're sort of planning to implement to improve your conversion rate?
Alright, maybe they know that we can stand and are there any initiatives that you're sort of planning to implement to improve your conversion rate.
Maria I'll take that question.
Speaker Change: So we have a number of, over the last year, among other marketing initiatives, we launched many. One, a series of social media campaigns across Facebook and Instagram with new video content.
So we have a number of well over the last year among other marketing initiatives. We launched many one a series of social media campaigns across Facebook and Instagram with new video content.
As I stated on the call on the opening remarks, we invested in new email marketing and customer segmentation software. We successfully migrated email subscribers from our legacy system and we've already configured automated email programs to re target non converting users. There's a lot of runway in these efforts.
Speaker Change: As I stated on the call, on the opening remarks, we invested in new email marketing customer segmentation software. We successfully migrated email subscribers from our legacy system and we've already configured automated email programs to retarget non-converting users. There is a lot of runway in these efforts.
In search we continue to lean into automation to unlock efficiencies and achieve greater scale and as I also said most recently, we're making investments in web analytics conversion rate optimization and brand strategy and positioning.
Speaker Change: In search, we continue to lean into automation to unlock efficiencies and achieve greater scale. And as I also said, most recently we're making investments in web analytics, conversion rate optimization, and brand strategy and position.
Speaker Change: On the conversion rate optimization side, we're running a series of A, B, and multivariate tests. We think there is an opportunity to better showcase a number of call-to-actions and other payment options that can be compelling for the user to help continue finding ways to improve conversion rate.
The conversion rate optimization side, we're running a series of a be a multivariate tests. We think there is an opportunity to better showcase a number of cost actions and other payment options that can be compelling for the user to.
To help compete to help continue finding ways to improve conversion rate.
Great. That's very helpful. Thank you so much about the column.
Thank you next question is coming from Mike Baker from D. A Davidson your line is now live.
Speaker Change: Your next question is from Mike Baker from D.A. Davidson, your line is now open.
Okay, Hi, thanks, guys. So.
Mike Baker: Okay, hi, thanks guys, so, you know, a lot of good color on the long-term potential, and it makes sense. What I wanted to ask you about a little bit is the profitability.
You know a lot of good color on the long term potential and it makes sense for what I wanted to ask you about a little bit is the profitability I'm you know a big beat on sales and how that sales growth for the fourth quarter, but profits were down I guess, both for the quarter and the year one should we.
Mike Baker: uh... you know uh... beat you beat on sales and have had sales growth in the fourth quarter but uh... profits were down uh... i guess both for the for the quarter and the year uh... what do we think about profitability uh... in dollars growing again
Think about profitability.
Dollars are growing again.
Mike Baker: on a year-over-year basis. How should we think about 2020?
On a year over year basis, how should we think about 2022, you said in the press release that you expect actions to gain traction.
Mike Baker: say in the press release that you expect actions to gain traction.
Mike Baker: You know, what does gain traction mean? Does that mean, you know, drive increased profitability?
Well, what what is what has gained traction mean does that mean, you know drive increased profitability.
Thanks, Mike Good luck to you.
Hi, Deepak.
Hi on the property every day as you know this year, we got impacted by Covid disruptions.
Mike Baker: on the profitability as you know this year we got impacted by a COVID disruption.
Mike Baker: as I stated in my call, we almost lost 1% of the profitability because of that reason on the gross margin front. And also, the advertising cost has been slightly up, which killed or which reduced the profitability marginally. But as we already started the actions, we see that, okay, in the next 12 months, we should be able to gain back this 1% of the loss with actions what we already
Did it in my call, we almost lost 1% up opportunity because of that but he's on the ground.
In print and also yeah, but they didn't cause has been slightly up which is obviously.
Obviously, the news of opportunity most easily but we.
We always thought that the actions we see that okay. In the next 12 months, we should be able to gain back this 1% won't be lost with that.
Actions taken.
So what we believe is a short term interruptions, but the long term Sunni up all of us.
Mike Baker: So these are what we believe is the short-term interruptions, but the long-term story of ours remain intact, and we remain on the long-term profitable.
Intact, and we remain on the long term profitability.
Okay, and then that 100 basis points, you talked about that's on the gross margin line.
Speaker Change: Okay, and that 100 base points you talked about, that's on the gross margin line. You know, how should we think about the cost, leveraging some advertising or, you know, some of the other costs, the GNA that goes into the cost.
How should we think about the cost leveraging some of the advertising or are some of the other costs G&A that that goes into the into the cost lines.
So that 1% exceeds what we talked about at the gross margin.
Speaker Change: So that 1% increase, what we talked about, is a gross margin. In advertising, as Nino already stated, that we are doing various efforts to increase the efficiency further. But I would say, it's a long term. It's advertising may not come immediately for us as a benefit. But we are on the right track to improve even the advertising efficiency as well.
It really isn't you know already stated that we are doing various efforts.
Excuse me if you don't see part of it but I would say Oh, you so long.
I'm, just gonna be music clippers ability, but.
Thanks to improve even in advertising efficiency is good.
Oh, Okay, and then one more question if I could what are you seeing right now in your business. There's been a lot of concern as we start cycling stimulus.
Speaker Change: uh... okay and then uh... what one more question if i could uh... you what do you think right now in your business uh... there's been a lot of concern as we start cycling stimulus uh... you know what that might mean for lower income customers uh... you know the situation that that's going on in eastern Europe is
That might mean for lower income customers.
The situation that's going on in Eastern Europe is obviously.
Speaker Change: uh... terrible and a lot of fun to impacting you guys uh... acutely but uh... or especially but you know how how are you seeing impact consumers with gas prices uh... where they are i mean if you see a change
On the waterfront is that impacting you guys are acutely, but or especially but you know how how are you seeing an impact consumers with gas prices.
Where they are I mean have you seen any change in the way consumers are spending in the first part of 2022.
Speaker Change: in the way consumers are spending in the first part of 2020.
Speaker Change: Yeah, so I – yes, I think all the things that you are actually speaking about, some of them are very unfortunate, but we actually see the increase in gas prices as an opportunity for us. As you – as Nino was speaking about earlier during the call, with the increase in gas prices, you must have noticed that there is more popularity of EV vehicles.
Yeah, So I.
Oh, Yes, I think all the things that you are actually speaking about some of them are very unfortunate, but we actually see the increase in gas prices as an opportunity for us as you as you know was speaking about earlier during the call with the increasing gas prices you must have noticed that there is more popularity.
Of EV vehicles.
Speaker Change: And I think we covered the EV piece quite in detail, where we are already present for majority of the EV vehicles like Tesla, Ford, Shoei, etc.
I think we covered evep's quite in detail.
We I.
At present for the majority of EV vehicles, like Tesla for Sharia to react cetera.
And.
Speaker Change: uh... you understand our business and in our business we are heavily focused on accessories and for EV we do feel that the demand for accessories will be much higher as compared to repair parts and with our focus on accessories we are definitely well poised to serve this demand. Now the other piece that I want to talk about specifically around gas prices increase in gas prices is.
Oh, you understand our business I think in our business. We are heavily focused on accessories and Ford EV, we do feel that the demand for accessories will be much higher as compared to our repair parts and with a focus on access cities. We are definitely well poised to serve this demand now the other piece that I.
Want to talk about specifically around gas prices increase in guests right. It is.
Speaker Change: In 2021, not only did we invest heavily into the repair and the OE segment, but we also actually had a huge amount of success and we grew both of those categories by double digits.
In 2021, not only did we invest heavily into the repair on the OE segment, but we also actually had a huge amount of success and we grew our both of those categories by double digits.
Speaker Change: The reality is, yes, there are price increases, there are increased gas prices, but if a car is broken down, whatever is the price, a consumer will be buying the repair part. So I think that is another area which gives us an opportunity to tap into this segment. And lastly, I think...
The reality is yes, there are price increases that are increased gas prices.
But if a car is broken down down whatever it is the price of consumer will be buying them at their part. So I think that is another area, which gives us an opportunity to tap into the segment and lastly, I think.
We do understand.
Speaker Change: We do understand that accessories is more of a discretionary buy, but as I said, from a repair segment perspective, we are well shielded. Even though if there are any increases, we will be passing that along to the consumer to make sure that we, while we remain competitive, we are also managing our cash flow.
Understand that accessories is more of a discretionary buy but.
As I said from our best segment perspective, we had a well shielded even though if there are any increases we will be passing that along to the consumer to make sure that we while we remain competitive we are also managing our cash position.
Speaker Change: uh... yeah okay that there were more pictures to fall from the on that last point of the passing uh... prices through uh... that that that was early in the year are you absorbing some of the higher shipping costs uh... you know it's not like now you're passing that through what kind of pushback uh... seen uh... from consumers any kind of you know statistics on on car abandonment or anything like that as you now passing through some of the higher
Yeah, Okay, and then one more if I could just to follow up on the on that last point in terms of passing.
Prices through.
If we throw in the year are you absorbing some of the higher shipping costs.
You're not it sounds like now you're passing that through what kind of pushback have you seen from consumers any kind of statistics on cart abandonment or anything like that as you know passing through some of it some of the higher shipping costs.
Speaker Change: There has been a limited impact, frankly speaking, in terms of card abandonment rates.
There has been a.
Limited impact us and frankly speaking in terms of card abandonment Green and frankly speaking the shipping cost increases not just for <unk>, it's for the industry.
Speaker Change: And, frankly speaking, the shipping cost increases not just for Parkside, it's for the industry and the industry is passing along the cost.
And the industry is passing along the cost.
Speaker Change: One of the things that I want to point out here is specifically around some of the vendor negotiations. I think while there has been an increase in the shipping cost, one of the things that we have actually done with the vendors is we have negotiated volume-based discounts.
One of the things that I want to point out here is specifically around some of the vendor negotiations I think while there has been increase in the shipping costs one of the things that we have actually done with the vendors as we have negotiated volume based discounts so rather than reducing the cost of the pod right away, we have a we give them.
Speaker Change: So rather than reducing the cost of the part right away, we give them short to medium term forecast and based on hitting those numbers we.
Short to medium term forecast and based on hitting those numbers, we get a refund or a cash back from them.
Speaker Change: get a refund or a cashback from them. So that is something that is a key component which goes into.
So that is something that is a key component, which goes into which goes into our overall product pricing and basically the total landed cost that we are giving to the consumer.
Speaker Change: which goes into our overall product pricing and basically the total landed cost that we are giving to the consumer.
Speaker Change: And lastly, I think another initiative that we invested heavily in 2021 and we are on the path to actually roll it out to majority of our vendors is the LTL program. So as you understand, on the large parcel products, because of the shipping cost increases, I think,
And lastly, I think and Ive been initiative that.
We invested heavily in 2021, and we are on onto bats to actually roll it out to the majority of our vendors is the LDL program. So.
As you understand on the large parcel products.
Because of the shipping cost increases I think.
Speaker Change: it's difficult to actually maintain competitiveness. So we actually invested into our LTA program, which gives us an opportunity to work with regional carriers and get the most competitive rates and also a speed at which we want to serve our customers. So we already onboarded our first phase of customers, first phase of vendors on this LTA piece, and we continue to, and we are continuing to work on this. So these are the three levels that we feel which will help us.
It's difficult to actually maintain competitiveness. So we actually invested into Ikea program, which gives us an opportunity to work with regional carriers and get the most competitive rates at the and also the speed at which we want to serve our customers. So we already on boarded at first phase of customer phosphate a little vendors on this idea.
And we continue to have yet and we are continuing to work on this. So these are the three levers that we feel which will help us of course, our other than passing cost I think there are also operational efficiencies or operational leverage that we are creating internally to help us manage the business.
Speaker Change: Of course, other than passing costs, I think there are also operational efficiencies or operational leverage that we are creating internally to help us manage the business. Okay.
Okay Yep.
Oh, sorry, I appreciate I appreciate the color it makes sense.
Yes.
Thank you we've reached end of our question and answer session I'd like to turn the floor back over to management for any further or closing comments.
Speaker Change: Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to management for any further...
Speaker Change: Thank you to everyone for joining and for your interest in ParseID, a special thank you to all our customers, all our vendors who continue to support us during the current environment, our other business partners, shareholders, the investor community, directors, and of course, our teammates around the world for their dedication and hard work in helping ParseID achieve so much success. We especially want to thank our colleagues in Ukraine. We're praying for their safety and for de-escalation and peace.
Thank you to everyone for joining and for your interest in parts I D. A special thank you to all our customers all of our vendors who continue to support us during the current environment. Our other business partners shareholders, the Investor community Directors and of course, our teammates around the world for their dedication and hard work in helping parse I D.
Achieve so much success.
We especially want to thank our colleagues in Ukraine, we're praying for their safety and for de escalation in peace and.
Speaker Change: And as discussed during today's call, we have many opportunities in front of us to drive growth, and we remain optimistic on the long-term potential. We look forward to updating everyone on our progress again in May. Thank you again.
And as discussed during today's call we have many opportunities in front of us to drive growth and we remain optimistic on the long term potential we look forward to updating everyone on our progress again in may Thank you again.
Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.
Speaker Change: Thank you, that does conclude today's teleconference and webcast, you may disconnect your line at this time and have a wonderful day.