Stitch Fix, Inc. (NASDAQ:SFIX) Q1 2020 Earnings Conference Call - Preliminary Transcript

Dec 09, 2019 • 05:00 pm ET

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Stitch Fix, Inc. (NASDAQ:SFIX) Q1 2020 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day and welcome to the Stitch Fix First Quarter 2020 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to David Pearce. Please go ahead.

Executive
David Pearce

Thank you for joining us on the call today to discuss the results for our first quarter of fiscal 2020. Joining me on today's call are Katrina Lake, Founder and CEO of Stitch fix; Mike Smith, President and COO; and Paul Yee, our CFO.

We have posted complete Q1 financial results in our shareholder letter on the IR section of our website investors.stitchfix.com. A link to the webcast of today's conference call can also be found on our site. We would like to remind everyone that we will be making forward-looking statements on this call, which involve risks and uncertainties.

Actual results could differ materially from those contemplated by our forward-looking statements. Reported results should not be considered as an indication of future performance. Please review our filings with the SEC for a discussion of the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements except as required by law. During this call we will discuss certain non-GAAP financial measures.

Reconciliations to the most directly comparable GAAP financial measures are provided in the shareholder letter on our website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call in its entirety is being webcasted on our IR website and a replay of this call will be available on the website shortly.

Now I'd like to turn the call over to Katrina.

Executive
Katrina Lake

Thanks, David. and thanks for joining us. After the market closed today, we issued our quarterly shareholder letter with more details on our results and strategy, which I encourage you to read. I'm excited to share our first quarter results and provide more detail on some of the key initiatives that demonstrate our ability to extend our personalization capabilities in new ways. We continue to gain confidence that these initiatives open the door to greater client engagement near term and expand our market opportunity in the long term. We also have leadership update to share on today's call. I'll discuss those in more detail later.

the call and can address any questions at the end.

In Q1 '20, we generated net revenue of $445 million, exceeding guidance and reflecting 21% year-over-year growth. We delivered a net loss of $0.2 million and positive $5.1 million in adjusted EBITDA, which also exceeded our guidance. Adjusted EBITDA, excluding SBC was $17.3 million. During the quarter, we grew our active client count to $3.4 million, an increase of 486,000 clients and 17% year-over-year.

In addition, we grew net revenue per active client by 10% year-over-year. Our sixth consecutive quarter of growth and a reflection of our strengthening ability to help clients (inaudible) with