CarParts.com, Inc. (NASDAQ:PRTS) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET

Company Participants

Tina Mirfarsi - Senior Vice President of Global Communications & Culture
David Meniane - Chief Executive Officer
Ryan Lockwood - Chief Financial Officer

Conference Call Participants

Ryan Sigdahl - Craig-Hallum Capital Group
Ryan Meyers - Lake Street Capital Markets.

Operator

Good afternoon. At this time, all participants will be in a listen-only mode. After the presentation, there will be a question-and-answer session. Please note this call is being recorded.

I would now like to pass the conference over to our host, Tina Mirfarsi, Senior Vice President of Global Communications and Culture. Please go ahead.

Tina Mirfarsi

Hello, everyone and thank you for joining us for the CarParts.com first quarter conference call. Joining me today are David Meniane, Chief Executive Officer; Ryan Lockwood, Chief Financial Officer; and Michael Huffaker, Chief Operating Officer.

Before I turn it over to David to start the meeting, I have some important disclosures. The prepared remarks and responses to your questions could contain certain forward-looking statements related to the business under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward-looking statements due to the risks and uncertainties associated with the business. For a discussion of the material risks and other important factors that could affect results, please refer to the CarParts.com annual report on Form 10-K and 10-Q as filed with the SEC, both of which can be found on our Investor Relations website. On the call, both GAAP and non-GAAP financial measures will be discussed. A reconciliation of GAAP to non-GAAP financial measures is provided in the CarParts.com press release issued today.

And with that, I would now like to turn the call over to David.

David Meniane

Thank you, Tina, and thank you all for joining us. I will begin with some highlights from the quarter, provide an update on the economic environment and then turn it over to Ryan to review our financial performance in more detail, before opening it up for Q&A.

Our performance so far this year has been disappointing and does not meet our standards. We’re facing headwinds in key categories and certain customer segments are being impacted by a deteriorating economic outlook. We need to maintain financial discipline and do a better job on both gross and net margins.

Now we have several variables within our control, such as pricing optimization, marketing, last-mile transportation costs and product expansion where we have opportunities for margin improvements. Over the last few years, we have made significant investments in infrastructure and operating capabilities, we now need to focus on efficiency and effectiveness to quickly deliver improvements and profitability. The ultimate measure of success for our company is long-term free cash flow and over the last few quarters we've made insufficient progress.