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Dec 28, 2024
CarParts.com Q4 2024 Earnings Report
CarParts.com reported a decline in revenue and profitability for Q4 2024 due to lower consumer demand and increased marketing expenses.
Key Takeaways
CarParts.com posted Q4 2024 revenue of $133.5 million, down 15% year-over-year. Gross margin decreased to 32.5%, and the company reported a net loss of $15.4 million. Operating expenses remained elevated as the company invested in marketing and digital infrastructure while navigating challenging market conditions.
Q4 2024 revenue declined 15% to $133.5 million compared to the prior year quarter.
Gross margin decreased slightly to 32.5%.
Net loss widened to $15.4 million, from $6.1 million a year ago.
Adjusted EBITDA was a loss of $6.8 million, impacted by higher advertising costs and lower revenue flow-through.
CarParts.com
CarParts.com
Forward Guidance
The company did not provide specific financial guidance for 2025, citing the evaluation of strategic alternatives in response to inbound interest.
Positive Outlook
- New Las Vegas semi-automated distribution center fully operational.
- Launched re-platformed website with AI-based search and product recommendations.
- Introduced CarParts+ paid membership program including roadside assistance.
- Focusing on non-paid marketing initiatives to improve site conversion.
- Expanding wholesale channel and product assortment.
Challenges Ahead
- Significant pullback in consumer spending due to economic pressures.
- Deferral of auto repairs impacting sales volumes.
- Increased advertising cost per click affecting marketing efficiency.
- Higher operating expenses linked to digital transformation and distribution center transition.
- No formal guidance provided for 2025 amid ongoing strategic evaluations.