CarParts.com, Inc. Q4 FY2024 earnings call

• 2024 was a year of transformation with focus on growth, efficiency, and sustainable growth. - Faced challenges from economic environment, price compression, and illegal parts in lighting/mirror. - Took actions like expanding product offering, repricing, adding fee income, growing mobile app, and focusing on B2B. - Recap of built elements: vertically integrated supply chain, nationwide fulfillment network, fitment-based catalog, B2B delivery, mobile app, high margin fee income, and trademarks.

In the fourth quarter, revenues were $133.5 million, down 15% from $156.4 million in the prior year. Full-year 2024 revenues were $589 million, slightly below expectations. Gross profit for the quarter was $43.4 million, with a gross margin of 32.5%, down from 33% in the prior year period. Full-year gross profit was $197 million, with a gross margin of 33.4%, near the upper end of guidance. The lighting and mirror business faced pressure from illegal parts, while efforts to expand product offering, reprice, and focus on B2B and mobile app aimed to drive performance.

• Not providing guidance for 2025 due to evaluating strategic alternatives. - Priorities for 2025 include expanding product offering, monetizing website visits with fee income, scaling B2B, growing mobile app, and maintaining strong balance sheet.

• Economic environment leading to pullback in consumer spending and auto repair cost deferral. - Price compression in the first part of 2024. - Illegal low-cost, non-compliant parts flooding the market for lighting/mirror. - Rising outbound transportation costs affecting margins.

Q: Will you comment on strategic alternatives beyond what was announced on March 5th?

A: Today, we are not going to comment or take questions related to our strategic alternatives process beyond what we announced on March 5th. That process is being overseen by our board of directors with the assistance of financial and legal advisers.