CHWY
Q3 2024 Financial Results
December 4, 2024
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Key Recent Highlights
160K
$875M
Sequential Net Active
Capital Returned to
Customer Adds
Shareholders in FY241
Financial Metrics
$567
80.0%
$138M
Net Sales Per
Autoship Customer Sales
Q3 24 Adj. EBITDA
Active Customer2
as a % of Net Sales3
(4.8% Margin)4
the Autoship customer sales in a given reporting period divided by the net sales from all orders in that period.
2
(4) Adjusted ("Adj.") EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.
Net Sales
Full Year
Quarterly
($ Millions)
($ Millions)
$11,148
$11,440
$10,119
$8,967
$2,746
$2,826
$2,878
$2,859
$2,878
FY 21
FY 22
FY 23
LTM1
% YoY Growth2
25.5%
12.8%
10.2%
3.7%
Q3 23
Q4 23
Q1 24
Q2 24
Q3 24
% YoY Growth
8.2%
4.2%
3.1%
2.6%
4.8%
(1)
"LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q3 24).
(2)
Consistent with the Company's Annual Report on Form 10-K for its 2023 Fiscal Year, the Company has provided recasted financial information for historical comparative periods to reflect the operations of Chewy Pharmacy KY, LLC beginning with
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the Company's 2021 Fiscal Year. Any historical comparatives prior to Fiscal Year 2021 are consistent with previously reported financial information.
Autoship Customer Sales1
Full Year
Quarterly
($ Millions)
($ Millions)
$8,935
$8,493
$7,408
$6,324
$2,116
$2,159
$2,233
$2,242
$2,301
FY 21
FY 22
FY 23
LTM2
Q3 23 Q4 23 Q1 24 Q2 24 Q3 24
% YoY Growth3
29.3%
17.1%
14.7%
7.2%
% YoY Growth
13.4%
8.1%
6.4%
5.8%
8.7%
(1)
We define Autoship customers as customers in a given fiscal quarter for whom an order has shipped through our Autoship subscription program during the preceding 364-day period.
(2)
"LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q3 24).
(3)
Consistent with the Company's Annual Report on Form 10-K for its 2023 Fiscal Year, the Company has provided recasted financial information for historical comparative periods to reflect the operations of Chewy Pharmacy KY, LLC beginning
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with the Company's 2021 Fiscal Year. Any historical comparatives prior to Fiscal Year 2021 are consistent with previously reported financial information.
Net Sales Per Active Customer ("NSPAC")1
$555
$544
$567
$496
$434
FY 21
FY 22
FY 23
Q3 23
Q3 24
Active Customers2 (Millions)
20.7
20.4
20.1
20.3
20.2
(1)
We define net sales per active customer ("NSPAC") as the aggregate net sales for the preceding four fiscal quarters, divided by the total number of active customers at the end of that fiscal quarter.
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(2)
We define active customers as the total number of customers who have ordered a product or service, and for whom a product has shipped or for whom a service has been provided, at least once during the preceding 364-day period.
Gross Margin
Full Year
Quarterly
(%)
(%)
29.2%
29.7%
29.5%
29.3%
28.0%
28.4%
28.5%
28.2%
26.6%
FY 21
FY 22
FY 23
LTM1
Gross Profit ($ Millions)
$2,385
$2,834
$3,162
$3,340
Q3 23
Q4 23
Q1 24
Q2 24
Q3 24
Gross Profit ($ Millions)
$782
$798
$854
$844
$844
(1) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q3 24).
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Adjusted EBITDA1
Full Year
($ Millions)
$532
$368
$307
$77
FY 21
FY 22
FY 23
LTM2
% Margin1
0.9%
3.0%
3.3%
4.7%
Quarterly
($ Millions)
$163
$145 $138
$83 $86
Q3 23
Q4 23
Q1 24
Q2 24
Q3 24
% Margin1
3.0%
3.1%
5.7%
5.1%
4.8%
(1)
Adjusted ("Adj.") EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.
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(2)
"LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q3 24).
Free Cash Flow1
Full Year
Quarterly
($ Millions)
($ Millions)
$363
$343
$152
$91
$67
$119
$48
$53
$9
FY 21
FY 22
FY 23
LTM2
Q3 23 Q4 23 Q1 24 Q2 24 Q3 24
Q3 FY24 Cash Balance: $508M3
(2)
"LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q3 24).
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(3)
Reflects total cash and cash equivalents plus marketable securities.
Guidance
Net Sales
Net Sales
Adj. EBITDA Margin1
Fiscal Fourth Quarter 2024
$3.18 billion - $3.20 billion
Approximately 13% YoY growth
Fiscal Year 2024
$11.79 billion - $11.81 billion Approximately 6% YoY growth
4.6% - 4.8%
Our Fiscal Year 2024 and fourth quarter Net Sales guidance ranges reflect the impact of a 53-week fiscal year. Our 53rd week will be fully reflected in the fourth quarter of 2024.
Our guidance is based on certain assumptions, including current expectations regarding the impact of general economic conditions, and is subject to various risks and uncertainties applicable to all forward-looking statements in this presentation. See "Forward-Looking Statements" for more information. We have not reconciled our outlook for adjusted EBITDA margin to net margin because we do not provide an outlook for GAAP net income due to the uncertainty and potential variability of other income, net, and provision for (benefit from) income taxes, which are reconciling items between adjusted EBITDA and GAAP net income. Because such items cannot be reasonably predicted, we are unable to provide a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure. However, such items could have a significant impact on GAAP net income and net margin.
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Disclaimer
Chewy Inc. published this content on December 04, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 04, 2024 at 14:20:03.786.