Q2 2023 Kidpik Corp Earnings Call

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Greetings and welcome to the Kid pick second quarter 2023 financial results Conference call. At this time, all participants are in a listen only mode.

Question and answer session will follow the formal presentation, if anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your house I'd throw a jobber. Thank you Andrew you may begin.

Thank you operator, and thank you everyone for joining us today.

We are pleased to welcome everyone to everyone to today's call.

Where we lived with you get to 'twenty to 'twenty, three and provide an update on kitchen fixed business.

We will begin imagery view about financial business highlights.

Goodbye financially view, which Gill Chief accounting officer will take us through.

I'd like to start.

By sharing our second quarter earnings were for the most part consistent was that first quarter.

During the second quarter, we continued to take actions to execute our plan and we do see inventory levels, while maintaining a gross margin of about 60%.

We are focused on increasing sales from our current inventory level, which we believe will support our cash flow needs in the short term.

In preparing for the back to school season.

We have taken the opportunity to elevate the look and feel of our brand and experienced the best subscription service and to further enhance shopping options.

We believe that the combination of our marketing teams athletes. So vividly showcased a unique outfits and the confidence children feel well wedding kit big.

Against the backdrop of Central Park.

With the tech advancements made by technology team, we haven't diminished enriched our brand and website to use new experience.

And our continued commitment to value addition, we recently launched exclusive member benefits, including a 10% discount adapter kit big shot.

Members.

Active subscriber base has been stable over the second quarter and year to date.

We believe we hold a competitive advantage was into kids clothing subscription marketplace by our ability to personalize and deliver head to toe stylized outfits at a great value.

We continue to explore other paid and unpaid channels to generate new opportunities for conversions.

I think that on proprietary can pick Brian gives us the opportunity to expand beyond our subscription boxes.

In the second quarter, we have drawn a e-commerce shops by 72% over the same period last year.

We also experienced sales increases and demand for our products on the Walmart E Commerce platform.

We invite you to visit big Dotcom and shop that kidney dot com to view, our back to school collection and experience the technology that drives it.

With that I will turn the call over to Jill to detail the financial highlights for the quarter.

Jill.

Thank you Israel Q2 revenue was 3.4 million a decrease of seven 7% year over year and a decrease of eight 6% quarter over quarter. The decrease in revenue was primarily driven by a decrease in subscription box.

No.

Looking at Q2 revenue by channel subscription sales were approximately 2.6 million a decrease of 12.3% quarter over quarter.

Third party websites sales were lower at 427000, a decrease of 23, 6% quarter over quarter.

Online website sales increased by 71, 9% to 414000 for the quarter moving.

Moving to revenue by subscription for the quarter.

Active subscriptions or recurring boxes decreased by 17.8% to 2.2 million year over year.

New subscriptions of first box increased by 32.7% 2.4 million.

Total subscription decreased by 12.3% to 2.6 million, which represents 76% of total revenue.

Turning to gross margin gross margin for the quarter was 60.2% a year over year decrease of 80 basis points.

Chip items for the second quarter decreased by 18% to 290000.

Keep rate for the second quarter was 75.1% versus 69, 2% for the second quarter.

Last year.

On the bottom line net loss for the quarter was approximately.

2 million or a loss of 26 cents per share compared to a net loss of one 6 million or a loss of 21 cents per share for the second quarter last year.

Speaking to non-GAAP adjusted EBITDA for the quarter was negative 1.7 million compared to negative 1.1 million for the second quarter last year.

Now to the balance sheet and cash flow.

Cash at the end of the quarter was approximately 163000 compared to $2 5 million at the end of 2022.

We use point 4 million in operating cash flow for the 26 week period compared to four point million last year.

In order to improve our cash position, we have significantly reduced purchases of new inventory and they enter into a cash advance or other financing arrangements.

As of July 1st 20, twenty-three, we had $11 million in total current assets $6 million in total current liabilities and working capital of 4.9 billion.

With that I will turn the call back to the operator for Q&A.

Operator.

Okay.

Thank you well now be conducting a question and answer session.

If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.

Press Star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the sarkies.

One moment, please while we poll for questions.

Yeah.

Yeah.

Thank you there are no questions at this time I would like to hand, the floor back over to management for any closing comments.

Thank you operator, thank you all for joining us today.

Thank you for your continued support and interest in cubic.

Do you have any additional questions or any questions at all please contact us at IR get big Dot com.

Wishing everybody a great day.

Health and happiness always thank you.

This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

Thank you.

Okay.