Slide 1: Q1 2025 Earnings Call
Q1 2025 Earnings Call April 29, 2025
Slide 2: Forward-Looking Statements
1Q25 Earnings Call | April 2025 Forward-Looking Statements Forward-Looking Statements The information presented herein may contain forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include without limitation all statements other than statem
Slide 3: Financial Update
Financial Update
Slide 4: 1Q 2025 Financial Results
1Q25 Earnings Call | Apr 2025 Financial Update 1Q 2025 Financial Results Revenue Gross Margin G&A and Tech Expense $231.7 Million 25.1% $41.0 Million -39.4% vs. Q1’24 +560 bps vs. Q1’24 -9.0M / -18.0% vs. Q1’24 Diluted EPS Adjusted EBITDA1 -$0.74 Ending Cash & Inventory Adjusted Diluted EPS2 -$13.2
Slide 5: Revenue
1Q25 Earnings Call | Apr 2025 Financial Update Revenue Revenue Q1’25 Dynamics ($M) $500 • Revenue of $232M • -$151M / -39% vs. Q1’24 $398 $400 $381 $382 • Revenue influenced by: • Rationalized channel management and customer $311 $303 acquisition investments $300 • Eliminated non-contributory $232 S
Slide 6: Gross Margin
1Q25 Earnings Call | Apr 2025 Financial Update Gross Margin Gross Margin Gross Margin Q1’25 Dynamics ($M) (%) $200 30% • Gross margin of 25.1% 26.7% • +560 bps vs. Q1’24 25.1% 23.0% 25% • Gross margin influenced by: $150 21.2% 19.5% 20.1% • Disciplined pricing and 20% merchandising actions • Improve
Slide 7: Sales & Marketing Expense
1Q25 Earnings Call | Apr 2025 Financial Update Sales & Marketing Expense Sales & Marketing Expense Sales & Marketing Expense Q1’25 Dynamics ($M) (%) $200 20% • Sales & Marketing Expense of 17.8% 17.3% $31M or 13.5% 16.7% 16.7% • -$37M / -430 bps vs. Q1’24 $150 15% 13.5% • Sales & Marketing Expense 1
Slide 8: G&A and Tech Expense
1Q25 Earnings Call | Apr 2025 Financial Update G&A and Tech Expense G&A and Tech Expense Q1’25 Dynamics ($M) $75 • G&A and Tech Expense of $41M • -$9M / -18% vs. Q1’24 • Adjusted G&A and Tech Expense of $38M, -$11M or -22% vs. adjusted $51 Q1’243 $50 $50 $48 $46 $45 $491 $41 $422 $383 $25 $0 Q1 ’23
Slide 9: Adjusted EBITDA
1Q25 Earnings Call | Apr 2025 Financial Update Adjusted EBITDA Adjusted EBITDA Q1’25 Dynamics ($M) $20 • Adj. EBITDA of -$13M • +$35M vs. Q1’24 $3 $0 • Adj. EBITDA margin of -5.7% • +680 bps vs. Q1’24 ($13) ($20) ($28) ($32) ($40) ($36) ($48) ($60) Q1 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Note: Adj
Slide 10: LTM Orders and Average Order Value
1Q25 Earnings Call | Apr 2025 Financial Update LTM Orders and Average Order Value Orders Delivered (LTM) Average Order Value Q1’25 Dynamics (M) ($) 25 $250 • Orders delivered (LTM) of $220 6.4M $204 • -24.9% / -2.1M vs. Q1’24 $181 $194 20 $200 $173 $199 • Average order value of $194 • +12.0% vs. Q1’
Slide 11: Active Customers and Order Frequency
1Q25 Earnings Call | Apr 2025 Financial Update Active Customers and Order Frequency Active Customers (LTM) Order per Active Customer Q1’25 Dynamics (M) (LTM) 14 2.0 • Active customers (LTM) of 4.8M 12 1.57 • -20.9% / -1.3M vs. Q1’24 1.41 1.39 1.39 1.5 1.37 1.34 10 • Order frequency of 1.34 • -5.1% v
Slide 12: Operations Update
Operations Update
Slide 13: Restoring the Core
1Q25 Earnings Call | April 2025 Operations Update Restoring the Core Beyond Consolidated Sales & Marketing as % of Revenue Investor Event Focus Areas: 18% 18% 17% 15% 17% 17% 12% 12% 14% Increase ROAS 1. Marketing Efficiency Focused ad spend using enriched Committed Target: 12% customer data Q1:23 Q
Slide 14: Appendix
Appendix
Slide 15: Adjusted EBITDA Reconciliation
1Q25 Earnings Call | Apr 2025 Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation Three months ended in thousands, except per share data 3/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Net Revenue $ 381,140 $ 382,281 $ 398,104 $ 311,428 $ 303,151 $ 231,748 Net loss $ (10,307)
Slide 16: Adjusted G&A and Technology Expense Reconciliation
4Q24 Earnings Call | Feb 2025 Adjusted G&A and Technology Expense Reconciliation Adjusted G&A and Technology Expense Reconciliation Three months ended in thousands, except per share data 3/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 G&A and Technology Expense $ 51,029 $ 50,035 $ 45,87
Slide 17: Adjusted Diluted EPS Reconciliation
1Q25 Earnings Call | Apr 2025 Adjusted Diluted EPS Reconciliation Adjusted Diluted EPS Reconciliation Three months ended 3/31/2025 Less: equity method Adjusted Diluted in thousands, except per share data Diluted EPS loss EPS Numerator: Net loss attributable to common stockholders $ (39,912) $ (17,07