Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — Investor Presentation (October 2024)
25 slides from Carparts.com's investor presentation, Oct 29, 2024
Slide 1: Investor Presentation Q3 2024
Investor Presentation Q3 2024
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking” statements, within the meaning of the federal securities laws, that are based on our management’s belief’s and assumptions and on information currently available to management. Forward-looking statements include information concerning our possi
Slide 3: CarParts.com is a leading eCommerce auto parts retailer
CarParts.com is a leading eCommerce auto parts retailer and has a significant opportunity to become the go-to destination for all automotive repair and maintenance needs. 3
Slide 4: A Leading Pure-Play eCommerce Auto Parts Supplier
A Leading Pure-Play eCommerce Auto Parts Supplier 100M #1 6.8M website visitors eBay store FY23 orders annually in the world 550K $676M 1,500+ mobile app downloads since FY23 revenue team members August 2023 launch 4
Slide 5: Investment Thesis
Investment Thesis The only public, pure-play auto eCommerce retailer and one of the largest by revenue in 1 highly fragmented market ripe for disruption, providing long runway for growth. Digital-first strategy, extensive proprietary portfolio, integrated supply chain and best-in-class 2 customer ex
Slide 6: Industry Landscape
Industry Landscape
Slide 7: The Auto Parts Industry is Expanding
The Auto Parts Industry is Expanding STRONG INDUSTRY FUNDAMENTALS WITH SIGNIFICANT ROOM FOR FURTHER MARKET PENETRATION $405B 42% 285M B&M Stores & TAM in 2024 Dealerships cars on the road $435B 12.5yrs Expected TAM in 2026 58% Avg. age of cars on the road Opportunity 7 Source: 2024 Auto Care Associa
Slide 8: The Auto Parts Industry is Going Online
INDUSTRY LANDSCAPE The Auto Parts Industry is Going Online eCommerce penetration Low eCommerce penetration Shifting consumer behavior 22% <5% <5% VS 22% Auto parts industry Overall eCommerce Increased adoption of purchasing auto parts online penetration 1 online penetration 2 online vs. brick and mo
Slide 9: Our Competitive Advantage
Our Competitive Advantage
Slide 10: Simple & Seamless Online Experience
Simple & Seamless Online Experience Solving the customer's problem from any device Intuitive platform with over 1 million SKUs available online Value propositions that count Quality, speed, convenience and competitive pricing Real-time personalized experience Removing the paradox of choice by provid
Slide 11: Massive Cross-Channel Reach
Massive Cross-Channel Reach 100M 10M website visits in 2023 promotional email subscribers Email Website Social 80% Mobile mobile traffic Media App 238K total followers 350K mobile app users since launch 11
Slide 12: Product Assortment
OUR COMPETITIVE ADVANTAGE Side mirrors Product Headlight Assortment Control arm Bumper cover Wheel hub Replacement Parts Hard Parts Tools & Accessories Headlights Tail lights Brake discs & pads Wheel hubs Tonneau cover Off-road bumper Side mirrors Bumpers Shocks & struts Control arms Fender flare Re
Slide 13: Extensive Proprietary Catalog
Extensive Proprietary Catalog Over one million SKUs available Categories and Select Brands Mechanical Parts Up to 50% less expensive with similar quality than brick-and-mortal retailers To rts o ls Pa Our private label brand JC Whitney has & nt Ac superior brand recognition me c es lace sor Rep s ie
Slide 14: Integrated Supply Chain
Integrated Supply Chain COMPANY-OPERATED DISTRIBUTION NETWORK 1.24M 5 warehouse distribution square footage centers LaSalle, IL Las Vegas, NV 375,000 sq ft Chesapeake, VA 204,000 sq ft 115,000 sq ft Torrance, CA 99% 57% (headquarters) U.S. population U.S. population Jacksonville, FL reachable in 2 d
Slide 15: Best-in-Class Customer Experience
Best-in-Class Customer Experience 500+ 60 customer focused with over 50,000 Net promotor score vs. live agents Google reviews 52 industry average1 35% 190K Education Hub of revenue from return new customers monthly helps customers navigate eCommerce customers their vehicle maintenance and repair nee
Slide 16: Strategic Priorities
Strategic Priorities
Slide 17: Drive Medium Term Profitability
Drive Medium Term Profitability OUR CORE STRATEGIC DRIVERS Supercharging the automotive eCommerce and 1 mobile app experience 6-8% 2 Expanding product assortment and services Adjusted EBITDA 3 Increasing brand awareness 17
Slide 18: Focused Customer Segmentation
Focused Customer Segmentation Target a more profitable customer Customer Segmentation base & Targeting 1 Deliver a seamless eCommerce experience tailored to premium shoppers Gross Margin % Dynamically adjust pricing and expand range of premium products Expand reach in higher-value segment through ne
Slide 19: Optimizing Our eCommerce Experience
Optimizing Our eCommerce Experience New CarParts.com Website Roadmap Leveraging Our Mobile App Improved search and App revenue accounts for >8% of recommendation engine eCommerce revenue VIN lookup capability Allows for personalized and direct customer communication SEO optimization Helps reduce ad
Slide 20: Driving Organic Customer Acquisition
Driving Organic Customer Acquisition Continuing to build close and direct Consolidating 17 house brands to focus on JC relationships with current and prospective Whitney private label with new brand strategy customers with a focus on attracting higher value customers • Invest in new video opportunit
Slide 21: Financial Profile
Financial Profile
Slide 22: Stable Balance Sheet
Stable Balance Sheet $38M $97M cash inventory $75M $0 asset-based revolver debt credit line1 Note: As of September 28, 2024 1. Our Credit Agreement provides for an option to increase the aggregate principal amount from $75M to $150M, 22 subject to lender approval
Slide 23: Historical Revenue Growth
Historical Revenue Growth $662,000 $676,000 $582,000 $444,000 $281,000 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 +24.5% CAGR 23
Slide 24: Creating Value by Returning Capital to Shareholders
Creating Value by Returning Capital to Shareholders $4.3M 1.2M $25.2M share repurchases in shares repurchased in FY authorization FY 2023 2023 remaining 24 24
Slide 25: Thank you!
Thank you! IR@CarParts.com CarParts.com/investor