Charles&Colvard,Ltd。(CTHR) 首席执行官 Suzanne Miglucci 于 2019年 第四季度 - 盈利电话会议记录

[机器翻译] 电话会议 · 2019年09月07日 · 47 次阅读

Charles & Colvard, Ltd. (NASDAQ:CTHR) Q4 2019 Results Earnings Conference Call September 5, 2019 4:30 PM ET

Charles&Colvard,Ltd。(纳斯达克股票代码:[CTHR])2019年第四季度业绩收益电话会议2019年9月5日美国东部时间下午4:30

公司参与者

Suzanne Miglucci - President and CEO
Clint Pete - CFO

  • Suzanne Miglucci - 总裁兼首席执行官
  • Clint Pete - 首席财务官

电话会议参与者

Dave King - ROTH Capital
Rodney Baber - Private Investor

  • 戴夫金 - 罗仕证券
  • Rodney Baber - 私人投资者

会议主持员

Good day, and welcome to the Charles & Colvard Q4 and Full FY 2019 Earnings Call. [Operator Instructions]
This earnings call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, including statements regarding, among other things the company's business strategy and growth strategy. Expressions, which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control.
Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. This earnings call does not constitute an offer to purchase any securities nor a solicitation of a proxy, consent, authorization or agent designation with respect to a meeting of the company's shareholders.
Accompanying today's call is a supporting PowerPoint slide deck, which is available in the Investor Relations section of the company's website at ir.charlesandcolvard.com/events. The Company will be hosting a Q&A session at the conclusion of prepared remarks. Should you have any questions, you like to summit please email ir@charlesandcolvard.com. Please note, this event is being recorded.
I would now like to turn the conference over to Suzanne Miglucci, President and Chief Executive Officer. Please go ahead.

美好的一天,欢迎来到Charles&Colvard Q4和2019财年全年收入电话会议。 [操作说明]

此财报电话可能包含经修订的1933年证券法第27A节中定义的前瞻性陈述,包括有关公司业务战略和增长战略等方面的陈述。表达前瞻性陈述的表达仅在陈述发布之日发言。这些前瞻性陈述主要基于我们公司的预期,并受到许多风险和不确定因素的影响,其中一些风险和不确定因素无法预测或量化,并且无法控制。

未来的发展和实际结果可能与前瞻性陈述中提出的,预期的或潜在的内容产生重大差异。鉴于这些风险和不确定性,无法保证前瞻性信息将被证明是准确的。此财务电话不构成购买任何证券的要约,也不构成对公司股东会议的代理,同意,授权或代理人指定的招揽。

伴随着今天的电话是一个支持PowerPoint幻灯片,可以在公司网站的投资者关系部分ir.charlesandcolvard.com/events上找到。公司将在准备好的评论结束时举办问答环节。如果您有任何疑问,请登录ir@charlesandcolvard.com。请注意,此活动正在录制中。

我现在想把会议转交给总裁兼首席执行官Suzanne Miglucci。请继续。

Suzanne Miglucci

Suzanne Miglucci

Good afternoon and thank you for joining us as we summarize Charles & Colvard's results for the fourth quarter ended June 30 and our full fiscal year 2019.
Before I begin, as you may know the Research Triangle area in North Carolina is experiencing some increment weather today due to Hurricane Dorian. In the event we're dropped from the call, we do have contingency services in place and we should be able to rejoin in short order. We thank you in advance for your patience.
Let’s begin. In the fourth quarter 2019, we generated strong revenue growth, excellent gross margins, continued robust performance from our international sector and our fourth consecutive quarter of profitability. It was a pivotal year for Charles & Colvard as we solidified our direct to consumer model and secured the capital that will help us catapult our business forward.
Clint Pete our CFO will begin today's call with an overview of our financials. Then I’ll return to discuss key highlights from the quarter and year to share with you our vision for fiscal year 2020. Clint?

下午好,感谢您加入我们,因为我们总结了Charles&Colvard在截至6月30日的第四季度以及2019年的整个财政年度的业绩。

在我开始之前,你可能知道北卡罗来纳州的研究三角地区今天因飓风多利安而经历了一些增量天气。如果我们从通话中退出,我们确实有应急服务,我们应该能够在短时间内重新加入。我们提前感谢您的耐心等待。

让我们开始。在2019年第四季度,我们实现了强劲的收入增长,出色的毛利率,国际部门持续强劲的业绩以及我们连续第四个季度的盈利能力。这对Charles&Colvard来说是关键的一年,因为我们巩固了我们对消费者的直接模式,并获得了帮助我们推动业务发展的资金。

Clint Pete我们的首席财务官将在今天的电话会议上概述我们的财务状况。然后我将回到讨论季度和年度的主要亮点,与大家分享我们对2020财年的愿景。克林特?

Clint Pete

克林特皮特

Thank you, Suzanne. Good afternoon everyone and thank you for joining us.
My comments today will focus on highlighting the key financial results in Q4, 2019 and the fiscal year ended June 30, 2019. Additional detail can be found in our Form 10-K for the fiscal year ended June 30, 2019 which we expect to file tomorrow.
The fiscal year 2019 was our first full fiscal year since we shifted to June 30 fiscal year end from a December 31 fiscal year end. Therefore for our call today, when we compare the financial results from the fiscal year ended June 30, 2019 to the prior year period, we are comparing to June 30, 2018 which is the unaudited recasted results for the 12 months period.
Beginning on Slide 5, we reported net income for Q4 2019 of approximately $160,000 or $0.01 per diluted share compared with a net loss of approximately $700,000 or $0.03 loss per diluted share in a year ago quarter. This is our fourth consecutive quarter of profitability.
For the full fiscal year 2019, we reported net income of approximately $2.3 million or $0.10 per diluted share compared with a net loss of approximately $800,000 or $0.04 loss per diluted share in the prior year.
Drilling down to the drivers of our positive net income, Slide 6 summarizes net sales for Q4, 2019 which increased 19% to $7.6 million compared to the year ago quarter. In our Online Channels segment which consist of e-commerce outlets including charlesandcolvard.com, third-party online marketplaces, dropship and other peer play exclusively e-commerce outlets, net sales for the quarter increased 9% versus the year ago quarter representing 48% of total net sales.
Our transactional website charlesandcolvard.com increased 30% in net sales versus a year ago quarter. In the company's traditional segment which consists of wholesale and retail customers' net sales for the quarter increased 30%, $4 million versus the year ago quarter representing 52% of total net sales primarily due to increased demand from our international distributor network in our brick-and-mortar channel.
Finished jewelry net sales increased 28% for the quarter resulting from our strategy to drive finished jewelry sales across multiple geographies and channels such as our direct to consumer initiatives which include our charlesandcolvard.com website in our brick-and-mortar channel.
Finished jewelry net sales increased 11% for the quarter which contributed to the 118% increase in international sales versus a year ago quarter mainly for our Forever One product. Sales to our cross-border trade platform were strong with a 128% increase from the year ago quarter contributing to our growing overall international sales.
Looking at the full fiscal year ended June 30, 2019, Slide 7 summarizes net sales which increased 16% to $32.2 million compared to the prior year period. In the company's Online Channels segment, net sales for the fiscal year 2019 increased 25% to $16.3 million or 51% of net sales for the fiscal year compared with $13.1 million or 47% of total net sales in the year ago period.

谢谢Suzanne。大家下午好,感谢您加入我们。

我今天的评论将侧重于突出2019年第四季度和截止2019年6月30日的财政年度的主要财务业绩。更多细节可以在我们希望提交的2019年6月30日财政年度的10-K表格中找到。明天。

2019财年是我们从12月31日财年结束转入6月30日财政年度以来的第一个完整财政年度。因此,对于我们今天的电话,当我们比较截至2019年6月30日的财政年度到去年同期的财务业绩时,我们将比较2018年6月30日,这是12个月期间未经审计的重新审核结果。

从幻灯片5开始,我们报告2019年第四季度的净收入约为160,000美元或每股摊薄收益0.01美元,而去年同期的净亏损约为700,000美元或每股摊薄收益减少0.03美元。这是我们连续第四个季度盈利。

在2019财政年度,我们报告的净收入约为230万美元或每股摊薄收益0.10美元,而去年净亏损约为800,000美元或每股摊薄收益减少0.04美元。

根据我们的正净收入的驱动因素,Slide 6总结了2019年第四季度的净销售额,与去年同期相比增长了19%,达到760万美元。在我们的在线渠道部门,包括charlesandcolvard.com,第三方在线市场,dropship和其他同行专卖电子商务网点等电子商务网站,本季度的净销售额比去年同期增长了9%,占48%总净销售额。

我们的交易网站charlesandcolvard.com与一年前的季度相比净销售额增长了30%。在该公司的传统板块中,批发和零售客户的本季度净销售额增长了30%,与去年同期相比增加了400万美元,占净销售总额的52%,这主要是由于我们的国际分销商网络在我们的砖块中的需求增加 - 和砂浆通道。

本季度成品珠宝净销售额增长了28%,这得益于我们在多个地区和渠道推动成品珠宝销售的策略,例如我们的直接消费者计划,包括我们的实体频道中的charlesandcolvard.com网站。

本季度成品珠宝净销售额增长11%,这导致国际销售额与去年同期相比增长118%,主要是因为我们的Forever One产品。对我们的跨境贸易平台的销售强劲,比去年同期增长128%,这有助于我们的整体国际销售增长。

纵观截至2019年6月30日的整个财政年度,Slide 7总结了净销售额,与去年同期相比增长了16%,达到3220万美元。在公司的在线渠道部门,2019财年的净销售额增长了25%,达到1630万美元,占本财年净销售额的51%,而去年同期的净销售额为1310万美元,占总销售额的47%。

In the company's traditional segment, net sales for the fiscal year 2019 increased 7% to $15.9 million or 49% of total net sales compared with $14.9 million or 53% of total net sales in the year ago period. On a product line basis, finished jewelry net sales increased 19% to $15.5 million for the fiscal year 2019. The company's net sales of loose jewels increased 13% to $16.8 million for the fiscal year 2019.
On Slide 8, our gross margin performance remains strong and stable. The fourth quarter gross margin was 44% compared to 35% in the year ago quarter. For the fiscal year ended June 30, 2019 our gross margin was 46% compared to 40% in the year ago. This improved margin was driven by continued healthy Online Channels sales including strong sales of our Forever One product on our transactional website charlesandcolvard.com. Forever One net sales of finished jewelry and loose gemstones represented 85% of total net sales for both Q4 and the fiscal year 2019.
On Slide 9, we show operating expenses as a percentage of net sales of the top of each bar. The dollar level of our operating expenses for each quarter is presented inside each bar. Here is a breakdown of our quarter-over-quarter operating expenses.
For Q4, 2019 operating expense as a percentage of net sales was 42% compared to 51% in the year ago quarter. Operating expenses were essentially flat compared to the year ago quarter as we controlled our expenses while increasing our marketing investment to drive topline growth.
G&A expenses decreased approximately $100,000 primarily due to lower legal and accounting fees. Sales and marketing expenses increased to approximately $100,000 due to increased digital marketing ad spending to fuel our growth.
Here is a breakdown of our year-over-year operating expenses. For the fiscal year ended June 30, 2019 operating expense as a percentage of net sales was 39% compared to 45% in the year ago period. Operating expenses were essentially flat compared to the year ago period. G&A expenses decreased approximately $200,000 primarily due to lower legal and other professional service fees.
Sales and marketing expenses increased approximately $350,000 primarily due to increased digital marketing ad spending to fuel the increased in our topline. We believe the trend of our expense as a percentage of net sales continues to reflect the discipline that we built into our business by controlling costs while continuing to grow our topline.
Slide 10, presents a snapshot of our balance sheet. At June 30, 2019 we had $13 million of cash, cash equivalents and restricted cash compared to $3.4 million of cash and cash equivalents at June 30, 2018. We recently executed an underwritten follow-on public offering of our common stock. We issued approximately 6.9 million shares of our common stock and raised $11 million in total gross proceeds.
After offering costs and underwriting commissions, we received net cash of $10 million for general corporate and working capital purposes with the specific focus on marketing and brand awareness initiatives. We continue to have no long-term debt and have not accessed funds through our credit facility.

在该公司的传统部门,2019财年的净销售额增长了7%,达到1590万美元,占总净销售额的49%,而去年同期的净销售额为1490万美元,占净销售总额的53%。在产品线的基础上,2019财年成品珠宝净销售额增长了19%,达到1550万美元。该公司2019财年的松散珠宝净销售额增长了13%,达到1680万美元。

在幻灯片8中,我们的毛利率表现仍然强劲且稳定。第四季度毛利率为44%,而去年同期为35%。截至2019年6月30日的财政年度,我们的毛利率为46%,而去年同期为40%。这一改善的利润率得益于持续健康的在线渠道销售,包括我们的交易网站charlesandcolvard.com上的Forever One产品销售强劲。永远一个成品珠宝和松散宝石的净销售额占第四季度和2019财年净销售总额的85%。

在幻灯片9中,我们将营业费用显示为每个栏顶部净销售额的百分比。我们每个季度的运营费用的美元水平都在每个栏内。以下是我们季度营业费用的明细。

对于第四季度,2019年的营业费用占净销售额的百分比为42%,而去年同期为51%。由于我们控制开支,同时增加营销投资以推动收入增长,营业费用与去年同期基本持平。

G&A费用减少约100,000美元,主要原因是法律和会计费用较低。由于数字营销广告支出的增加推动了我们的增长,销售和营销费用增加到大约100,000美元。

以下是我们的年度运营费用明细。在截至6月30日的财政年度中,2019年的营业费用占净销售额的百分比为39%,而去年同期为45%。与去年同期相比,营业费用基本持平。 G&A费用减少约20万美元,主要原因是法律和其他专业服务费较低。

销售和营销费用增加约350,000美元,主要是由于数字营销广告支出的增加推动了我们的收入增加。我们认为,我们的费用占净销售额百分比的趋势继续反映我们通过控制成本而继续增长我们的收入来建立我们业务的纪律。

幻灯片10,显示我们的资产负债表的快照。 2019年6月30日,我们拥有1300万美元现金,现金等价物和受限制现金,相比之下,截至2018年6月30日,现金和现金等价物为340万美元。我们最近执行了一项包销公开发行股票的后续公开募股。我们发行了约690万股普通股,并筹集了1,100万美元的总收益。

在提供成本和承销佣金后,我们获得了1000万美元的净现金,用于一般企业和营运资金,特别关注营销和品牌意识计划。我们继续没有长期债务,也没有通过我们的信贷机构获得资金。

On Slide 11, inventory at June 30, 2019 totaled $33.7 million compared to $31.8 million at June 30, 2018. Loose jewels inventory was $24.3 million compared to $24 million at June 30, 2018. Finished inventory increased to $9.3 million compared to $7.8 million at June 30, 2018. The overall increase in finished jewelry inventory reflects three positive strategic factors.
One, we invested in our consignment inventory related to the continued success and expanding sales through our brick-and-mortar channels. Two, we have planned higher in stock inventory to drive increased net sales for our transactional website charlesandcolvard.com. And three, we are building inventories of our Moissanite by Charles & Colvard product line to support our dropship in marketplace outlets.
At June 30, 2019, 79% of our inventory is classified as new inventory leaving only 21% of our inventory classified as legacy inventory. Legacy inventory is down 37% from December 31, 2017.
In summary, we generated strong positive results in our business during the recent quarter and fiscal year. We continue to be proactive in our outreach to the investment community, conducting numerous investor briefings including Road show meetings related to our recent follow on public offering. A key benefit of the financing was the addition of more than 25 new institutional investors, and a number of new family office and high net worth individual investors who participated in the financing. This improves trading volumes and liquidity of a stock for all stakeholders.
In addition, Roth Capital Partners initiated research on Charles & Colvard. We plan to attend additional investor conferences in the coming months and will continue to actually meet with members of investment committee to increase awareness and interest in the company.
I would now like to turn the call back over to Suzanne.

在幻灯片11中,2019年6月30日的库存总额为3,370万美元,而2018年6月30日的库存为3,180万美元。与2018年6月30日的2,400万美元相比,松散的珠宝库存为2430万美元。成品库存增加至930万美元,相比之下为780万美元。 2018年6月30日。成品珠宝库存的整体增长反映了三个积极的战略因素。

其一,我们通过我们的实体渠道投资了与继续成功和扩大销售相关的寄售库存。第二,我们计划增加库存,以推动交易网站charlesandcolvard.com的净销售额增加。三,我们正在通过Charles&Colvard产品线建立我们的Moissanite库存,以支持我们在市场销售中的运输。

在2019年6月30日,我们79%的库存被归类为新库存,只有21%的库存被归类为遗留库存。传统库存较2017年12月31日下降37%。

总之,我们在最近一个季度和财政年度为我们的业务带来了强劲的积极成果。我们继续积极主动地与投资界联系,进行多次投资者简报,包括与我们最近跟进公开募股有关的路演会议。融资的一个主要好处是增加了超过25个新的机构投资者,以及一些参与融资的新的家族办公室和高净值个人投资者。这为所有利益相关者提高了股票的交易量和流动性。

此外,Roth Capital Partners还开展了Charles&Colvard的研究。我们计划在未来几个月参加额外的投资者会议,并将继续实际与投资委员会成员会面,以提高对公司的认识和兴趣。

我现在想把这个电话转回苏珊娜。

Suzanne Miglucci

Suzanne Miglucci

Thank you, Clint.
I'll start with a summary of notable highlights for the quarter and year on Slide 13. Revenue growth of 19% for the fourth quarter was the results of several blended factors among them are high performing Mother's Day campaign and our bridal sale which took place over Memorial Day. Bolstered by our digital marketing efforts, these campaigns contributed to online channel sales, especially our charlesandcolvard.com website, where we saw a 30% increase in sales over the prior year quarter. This site leads our online channel segment representing over half of the segments revenue.
We continue to be pleased with the performance of the growth of this site, and will continue to focus resources and digital investments to further its growth, as this is the most direct connection with meaningful engagement that we have with our customers.
Another key contributor to our Q4 performance with our Traditional segment, and in particular the performance of our domestic retailers and international distributors. Traditional channels had a strong show in this quarter and represented 52% of total sales and expanding footprint with key retail partners in the U.S. contributed significantly.
In fact, we've reached a point of maturity with certain retail partners that we've migrated some of our retail programs from a consignment model to a blended asset and consignment model.
In a consignment model, we receive payments after the customer buys a product. But in an asset model, the retailer takes ownership of select products upfront at the time we ship them, making for more favorable cash flow for the company. We’re pleased to have reached this level of relationship with these important retail customers.
Also contributing to international growth with cross border trade, where Foreign nationals transact on our domestic website and we ship our goods to their global locations. We had a 128% increase in cross border trade revenue over the prior year quarter. We finished Q4 with international revenue representing 17% of our total sales, a 118% increase over the prior year and we finished the quarter with strong growth in finished jewelry, a continued indicator of our direct-to-consumer foothold.
We closed fiscal year 2019 with several key milestones. We delivered attractive gross margins across the year, finishing at 46% versus 40% in the prior 12 month period, margins have improved due to the significant growth of our online channel segment which grew by 25% over the prior year period.
Our direct-to-consumer channels generally deliver higher margins compared to selling through third party distribution channels, especially when goods are purchased directly from charlesandcolvard.com. Direct-to-consumer engagement is also responsible for the trend in our finished jewelry growth, which is up 19% over the prior year.
International sales were 13% of our total revenue for fiscal year 2019, a 106% increase in sales over the prior 12-month period. Our trajectory has shown four consecutive quarters of double-digit international growth over the course of the year, and we anticipate continued strong performance from this sector.

谢谢,克林特。

我将从幻灯片13上的季度和年度的重要亮点开始。第四季度收入增长19%是其中几个混合因素的结果是高性能母亲节活动和我们的婚礼销售发生阵亡将士纪念日。在我们的数字营销努力的推动下,这些活动促进了在线渠道销售,特别是我们的charlesandcolvard.com网站,我们看到销售额比去年同期增长了30%。该网站引领我们的在线渠道细分市场代表超过一半的细分市场收入。

我们继续对该网站的增长表现感到满意,并将继续关注资源和数字投资以促进其增长,因为这是我们与客户进行有意义的互动的最直接联系。

我们传统细分市场的第四季度表现的另一个关键因素,特别是我们国内零售商和国际分销商的表现。传统渠道在本季度表现强劲,占总销售额的52%,并且与美国主要零售合作伙伴的合作范围不断扩大。

事实上,我们已经与某些零售合作伙伴达到了成熟的程度,我们将部分零售计划从寄售模式迁移到混合资产和寄售模式。

在寄售模型中,我们在客户购买产品后收到付款。但在资产模型中,零售商在我们发货时预先取得部分产品的所有权,从而为公司带来更有利的现金流。我们很高兴与这些重要的零售客户建立了这种关系。

通过跨境贸易促进国际增长,外国公民在我们的国内网站上进行交易,我们将货物运往全球各地。与去年同期相比,我们的跨境贸易收入增长了128%。我们完成第四季度的国际收入占总销售额的17%,比去年增长118%,我们在本季度完成了成品珠宝的强劲增长,这是我们直接面向消费者的立足点的持续指标。

我们关闭了2019财年的几个关键里程碑。我们全年实现了具有吸引力的毛利率,收益率为46%,前12个月为40%,由于我们的在线渠道部门比去年同期增长了25%,利润率有所提升。

与通过第三方分销渠道销售相比,我们的直接面向消费者的渠道通常提供更高的利润,特别是当商品直接从charlesandcolvard.com购买时。直接面向消费者的参与也是我们成品珠宝增长趋势的原因,比上一年增长了19%。

2019财年,国际销售额占我们总收入的13%,比前12个月的销售额增长了106%。我们的发展轨迹显示,全年连续四个季度实现两位数的国际增长,我们预计该行业将继续保持强劲表现。

Forever One, our flagship gemstone continues to gain a popularity and recognition, most recently winning JCK’s Jewelers’ Choice Award, in the lab grown gemstone jewelry category for a signature collection Halo hearts and rings or hearts and arrows ring.
Product innovation has been at the center of our direct-to-consumer transition and will continue to be a focus as we head into fiscal year 2020. We delivered four consecutive quarters of profitability ending the year with the net income of $2.3 million or $0.10 per diluted share versus a net loss of $0.8 million in the prior 12-month period.
We've managed our inventory levels very tightly to meet our increasing sales demand by also
reducing legacy inventory to 21% of total inventory at June 30, 2019. And finally, with the improved valuation that's come from our financial performance and operating momentum, we leverage the opportunity to raise funds and a public offering to invest in key marketing initiatives that we believe will help catapult the company forward.
I’ll turn to Slide 14 to discuss the strategy behind this capital raise and how we plan to invest these proceeds to grow the business and create shareholder value. Since Charles & Colvard’s relaunch in October 2016, we focused heavily on our direct-to-consumer engagement. We firmly believe that a one to one dialog with our customer is the best way to tell our brand story and learn directly from our customer what their buying preferences are.
To facilitate this conversation, we deployed significant digital marketing tactics from paid digital advertising to social media engagements and influencer marketing programs. In the course of these activities, we pay particularly close attention to our analytics. We measured everything from clicks to likes, product reviews, advertising channel performance, campaign advocacy, organic traffic, and so much more.
Here's what we've learned. Today, the average cost to convert a new customer is approximately $220 in advertising spend with an average order value of $1,000. Not only is this a sound digital marketing investment, it also drives traffic and revenue through the channels that command the highest gross margins.
We've also learned that roughly 28% of our customers are repeat buyers, a number that we feel is low due to our focus on that net new customer acquisition.
Turning to Slide 15, this volume of digital data also helped us map our marketing funnel guiding our thinking on the types of activities that incense someone to first engage with our brand, what we call top of funnel activities, to the level and types of engagement someone desires, while they're learning about the brand, and all the way down to the very last click that converts a consumer into a Charles & Colvard customer.
We learned that for every dollar of advertising spend, we can see two to eight times return on ad spend depending on the maturity of the prospect, and how far into the marketing pipeline they are. This customer journey and the efficiency of our ad spend are key to effective digital marketing investments and the key investment vehicle for our offering proceeds.

Forever One,我们的旗舰宝石继续受到欢迎和认可,最近赢得了JCK的珠宝商选择奖,在实验室成长的宝石珠宝类别中签名收集Halo心形戒指或心形和箭形戒指。

产品创新一直是我们直接面向消费者转型的核心,并将继续成为我们进入2020财年的焦点。我们在年底前连续四个季度实现盈利,净收入为230万美元或每个0.10美元稀释后的股票与前12个月的净亏损80万美元相比。

我们也非常严格地管理库存水平,以满足我们不断增长的销售需求

在2019年6月30日将遗留库存减少到总库存的21%。最后,随着我们的财务业绩和经营势头的估值改善,我们利用这个机会筹集资金和公开募股,以投资于关键营销活动,我们相信这将有助于推动公司向前发展。

我将转到幻灯片14,讨论此次融资背后的战略,以及我们计划如何投资这些收益来发展业务并创造股东价值。自Charles&Colvard于2016年10月重新启动以来,我们一直专注于直接面向消费者的参与。我们坚信,与客户进行一对一对话是了解我们品牌故事的最佳方式,并直接向客户了解他们的购买偏好。

为了促进这一对话,我们采用了重要的数字营销策略,从付费数字广告到社交媒体约定和影响者营销计划。在这些活动中,我们特别关注我们的分析。我们测量了从点击到喜欢,产品评论,广告渠道效果,广告系列宣传,自然流量等等所有内容。

这是我们学到的。如今,转换新客户的平均成本约为220美元的广告支出,平均订单价值为1,000美元。这不仅是一项良好的数字营销投资,而且还通过拥有最高毛利率的渠道推动流量和收入。

我们还了解到,大约28%的客户是重复购买者,由于我们专注于净新客户的收购,我们认为这一数字很低。

转到幻灯片15,这一数字数据也帮助我们绘制营销漏斗图,指导我们思考活动的类型,这些活动激励某人首先参与我们的品牌,我们称之为漏斗活动的顶层,参与的水平和类型有人希望,当他们了解品牌时,一直到最后一次点击,将消费者转变为Charles&Colvard客户。

我们了解到,对于每一美元的广告支出,我们可以看到广告支出的回报率为2到8倍,具体取决于潜在客户的成熟度,以及他们在营销渠道中的距离。这种客户旅程和广告支出的效率是有效的数字营销投资的关键,也是我们提供收益的关键投资工具。

Over the past two years, Charles & Colvard has been applying its ad spend in the mid to lower funnel of the marketing funnel, where you see campaigns such as personalized email. At a time when we were capital constrained, this made sense. We were seeing a blended four to five times return on ad spend while readily converting customers that were predisposed to the Charles & Colvard brand or we're searching for the term voice tonight.
But this is a short sighted strategy as we're only reaching customers familiar with our brand and value proposition. And we subsequently grew the company in the 13% to 16% annual growth range through these tactics.
In order to garner the attention of consumers not familiar with our brand but interested in the ethical appeal of lab created gemstones or a value price trial option that competes handily with diamond, we need to invest more resources in it and attention to the top of the funnel, seeking out the new but soon to be converted Charles & Colvard customer.
That work is done at the top of the marketing funnel through awareness strategies such as mobile social ads, influencer marketing programs and strategic paid media placements. As we head into fiscal year 2020 and imminently into the holiday season, the time is critical to now drive awareness and proliferate our brand.
We believe through continued measurement of our customer journey and the same care we've been applying to our digital marketing spend to date, we can accelerate our growth. This process does got a natural lead time. So we anticipate that the increased marketing the investments we began making in July will begin showing impact in the Holiday quarter.
We’ll be prudent as we invest these funds over the next several years, not just in the next few quarters.
Let's talk about a few other focus areas for the year ahead on Slide 16. We plan to continue our push into international markets. In fiscal year 2019, we expanded Charles & Colvard into new international markets through marketplaces and distributors.
This image denotes our current footprint across the globe. We think of marketplaces as an agile way to test new geographies, let the marketplace bring the consumer to the table, we’ll introduce our product measure whether we have a target customer base in the region, and if so further develop our presence.
Last year we went live in Western Europe, on Amazon in Italy, France, Spain and Germany and in Australia on Amazon, eBay and Cache, we also went live on Amazon Japan in March 2019. We have the support of our new funding. We believe that we’ll now have the ability to build a digital presence in these new regions. Driving awareness of our brand and driving consumers to these regional marketplaces. We also anticipate that these investments will have the positive effect of driving international consumers to charlesandcolvard.com by way of cross border trade which is indicated here by the dotted lines.
In addition to Online international sales we’ve also been relying on the work of select international distributors to help us with our local presence. This has been a profitable endeavor for us as indicated by an 81% increase in international distributors in Q4 over the same period last year. We plan to continue this work with local resources and understand how to bring brand presence into their local markets.

在过去两年中,Charles&Colvard一直将其广告支出应用于营销漏斗的中低端渠道,您可以在其中看到个性化电子邮件等广告系列。在我们受资本约束的时候,这是有道理的。我们看到混合了四到五倍的广告支出回报,同时随时转换了倾向于Charles&Colvard品牌的客户,或者我们正在寻找今晚的声音。

但这是一个短视策略,因为我们只接触熟悉我们品牌和价值主张的客户。随后我们通过这些策略将公司的年增长率提高到13%至16%。

为了吸引不熟悉我们品牌但对实验室创造的宝石的道德吸引力感兴趣的消费者的注意力或者与钻石轻松竞争的价值试验选项,我们需要投入更多资源并注意顶部漏斗,寻找新的但很快将被转换为Charles&Colvard的客户。

这项工作是通过营销渠道的顶部,通过移动社交广告,影响者营销计划和战略性付费媒体展示等意识策略完成的。当我们进入2020财政年度并即将进入假日季节时,时间对于提高认知度和扩大品牌至关重要。

我们相信,通过持续衡量我们的客户旅程以及我们迄今为止应用于我们的数字营销支出的同样谨慎,我们可以加速我们的增长。这个过程确实有一个自然的准备时间。因此,我们预计,7月份开始投资的营销增加将开始在假日季度产生影响。

我们将在未来几年内投资这些资金,而不仅仅是在接下来的几个季度中,我们会谨慎行事。

让我们来谈谈Slide 16上未来一年的其他几个重点领域。我们计划继续推进国际市场。在2019财政年度,我们通过市场和分销商将Charles&Colvard扩展到新的国际市场。

此图像表示我们目前在全球的足迹。我们认为市场是一种测试新地域的敏捷方式,让市场将消费者带到谈判桌上,我们将介绍我们的产品衡量标准,我们是否在该地区拥有目标客户群,如果是这样,我们将进一步发展我们的业务。

去年我们在西欧,意大利,法国,西班牙和德国的亚马逊以及亚马逊,eBay和Cache的澳大利亚上线,我们也于2019年3月在亚马逊日本上线。我们得到了新资金的支持。我们相信,我们现在有能力在这些新区域建立数字化存在。提升我们品牌的知名度,推动消费者进入这些区域市场。我们还预计这些投资将通过跨境贸易推动国际消费者对charlesandcolvard.com产生积极影响,这里用虚线表示。

除了在线国际销售,我们还一直依靠精选的国际经销商的工作来帮助我们在当地开展业务。这对我们来说是一个有利可图的努力,第四季度国际分销商比去年同期增长了81%。我们计划利用当地资源继续开展这项工作,并了解如何将品牌形象带入当地市场。

Slide 17, outlines our focus on continued product innovation. As mentioned earlier, our signature collection is gaining significant traction. Introduced in Q1 of fiscal year 2019, this product line started as a handful of specialty item, today at the JCK award-winning line of jewelry that represented 7% of net sales in Q4 and 11% of our total sales this year.
We’re thrilled with this performance as it suggest to us that what the customer’s wants is our brand. Every piece of Charles & Colvard signature jewelry features our floret the company logo. This validates that our brand is resonating with our consumer. We’re also seeing meaningful adoption of our Moissanite Charles & Colvard value line of gemstones. We introduced this product in May 2018 as a response to competitive Moissanite coming to market.
This product which carries the Charles & Colvard name and is subject to our standard grading guidelines and laser in grading is being met with enthusiasm across our dropship marketplace and distributor channels delivering 7% of total sales this past quarter. We’ll continue to expand this gemstone across our sales channels as we face out our legacy products.
We plan to continually evolve our product mix as the demand or the market demand in fact in just a few weeks we plan to run a test pilot with new colored gemstones. Lab created blue and pink sapphires and lab created ruby in our dropship program. Our dropship partners have been requesting color gemstones in response to market trends and searches on their websites.
These synthetic lab created stones are made from Corundum, an ethically sourced product that has been in the market for some time. We’re turning to leading suppliers of these gems for our supply and marrying them with Moissanite gems to create beautiful blended gemstone options. For those of you viewing the slide deck you can see an example in the lower right hand corner.
Evolving our gemstone and jewelry mix to meet the demand of consumer has been at the center of our transformation. As we learn more from our top of funnel marketing activities you can expect further changes in our product mix as our millennial and gemsy audiences taste and preferences mature.
On Slide 18, I have highlighted our focus on corporate social responsibility. While our Moissanite product has always been made [dot lined] the company wasn’t historically focused on the positive environmental impact we can have. While we feel it’s time to make that a core tenant of our business practices going forward.
Thankfully our wonderful Moissanite gemstone is born from lab created practices so we’re not moving tons of earth to mine a single carat gemstone. But there is much to focus on then just our gem. We believe that more than enough metals have been mined from the earth so we are moving to a recycle metal approach. Over the past year more than 95% of the metals resource were recycled and going forward we’re working towards utilizing only recycled precious metals in our production lines.

幻灯片17概述了我们对持续产品创新的关注。如前所述,我们的标志性系列正在获得巨大的吸引力。该产品系列于2019财年第一季度推出,作为少数特色产品开始销售,今天在JCK获奖的珠宝系列中,占第四季度净销售额的7%,占今年总销售额的11%。

我们对这种表现感到非常兴奋,因为它向我们建议客户想要的是我们的品牌。每件Charles&Colvard标志性珠宝都以我们的小花为公司标志。这证实了我们的品牌与我们的消费者产生共鸣。我们也看到有意义地采用我们的Moissanite Charles&Colvard宝石价值线。我们于2018年5月推出该产品,以响应竞争对手的Moissanite上市。

该产品具有Charles&Colvard的名称,并受我们的标准评级指南和激光评级的影响,我们的下落市场和分销商渠道的热情在上个季度占总销售额的7%。当我们面对传统产品时,我们将继续在我们的销售渠道中扩展这一宝石。

我们计划不断发展我们的产品组合,因为需求或市场需求实际上在短短几周内我们计划用新的彩色宝石进行测试试点。实验室在我们的运输计划中创建了蓝色和粉红色蓝宝石,实验室创建了红宝石。我们的配送合作伙伴一直在要求彩色宝石以响应市场趋势并在其网站上进行搜索。

这些合成实验室制造的宝石是由Corundum制成的,这是一种道德来源的产品,已经在市场上销售了一段时间。我们正在寻求供应这些宝石的主要供应商,并将其与Moissanite宝石结合,以创造美丽的混合宝石选择。对于那些观看幻灯片的人,您可以在右下角看到一个示例。

为满足消费者需求而不断发展我们的宝石和珠宝组合一直是我们转型的核心。随着我们从漏斗营销活动中获得更多信息,您可以期待我们的产品组合进一步发生变化,因为我们的千禧年和绅士观众的品味和喜好已经成熟。

在幻灯片18中,我强调了我们对企业社会责任的关注。虽然我们的Moissanite产品一直是[点线],但公司在历史上并没有关注我们可以产生的积极的环境影响。虽然我们觉得是时候让我们的业务实践的核心租户继续前进。

值得庆幸的是,我们精彩的莫桑石宝石诞生于实验室创造的实践中,因此我们不会将大量的土地移动到一颗克拉宝石中。但是有很多东西要关注我们的宝石。我们相信从地球上开采出足够多的金属,因此我们正在采用循环金属方法。在过去的一年中,超过95%的金属资源被回收利用,并且我们正在努力在我们的生产线中仅使用回收的贵金属。

We also plan to measure and improve the overall environmental footprint of our business operations. We want to positively impact the communities where we work and live so we’ll be supporting these communities through philanthropic programs that advocate positive, social change. And lastly, we plan to create a higher level of transparency regarding these practices so our stakeholders will be able to track these efforts and hold us accountable.
In summary, and outlined on Slide 19, our focus for fiscal year 2020 will be on the following five strategic initiatives, expansion of brand awareness. We're laser focused on expanding the reach of our brand and digital marketing will be – leading this charge on a global scale. International sales reach its very early days for Charles & Colvard internationally. We’ll be working on our omni-channel presence so there is plenty of place for the consumer to learn about and transact with our brand.
Product evolution, we’ll continue to listen and tell our customer audience and deliver products that meet consumer demand, enhanced customer experience. The consumer’s experience with our brand can make or break their viability as a lifelong customer. So we need to ensure that every interaction is engaging rewarding and beyond their expectations. We’ll be focused on several aspects of the customer journey including digital customer service experiences.
And lastly corporate social responsibility, as mentioned earlier we plan to work towards 100% recycled metals, improve our environment footprint, support our local and business communities through philanthropic programs and create transparency of these activities for our stakeholders.
Over this past year, we’ve seen the compelling results from our omni-channel distribution strategy the promise of measured digital marketing efforts and the impact of market-driven products. We look forward to taking these learnings and our investment capital and applying both to a year of explaining brand awareness and topline growth.
This concludes our prepared remarks we now like to open the call to take your questions. Operator, would you please poll for questions for our listening audience.

我们还计划衡量和改善业务运营的整体环境足迹。我们希望对我们工作和生活的社区产生积极影响,因此我们将通过倡导积极的社会变革的慈善计划来支持这些社区。最后,我们计划为这些实践创建更高级别的透明度,以便我们的利益相关者能够跟踪这些工作并让我们负起责任。

总之,在幻灯片19中概述,我们对2020财年的重点将放在以下五个战略举措上,即扩大品牌知名度。我们的激光专注于扩大我们品牌的影响力,数字营销将在全球范围内引领这一趋势。国际销售达到Charles&Colvard国际的早期阶段。我们将致力于我们的全渠道存在,因此消费者有充足的空间来了解和交易我们的品牌。

产品发展,我们将继续倾听并告诉我们的客户受众,并提供满足消费者需求的产品,增强客户体验。消费者对我们品牌的体验可以决定他们作为终身客户的可行性。因此,我们需要确保每次互动都能带来回报并超出他们的期望。我们将专注于客户旅程的几个方面,包括数字客户服务体验。

最后,企业社会责任,如前所述,我们计划致力于100%回收金属,改善我们的环境足迹,通过慈善计划支持我们的当地和商业社区,并为利益相关者创造这些活动的透明度。

在过去的一年中,我们看到了我们的全渠道分销战略的令人信服的结果,即衡量数字营销努力的承诺以及市场驱动产品的影响。我们期待着学习这些知识和投资资本,并将其应用于解释品牌知名度和增长的一年。

我们准备好的评论到此结束,我们现在打开电话提出您的问题。接线员,请您为我们的听众倾听问题。

问答环节

[Operator Instructions]

[操作说明]

Suzanne Miglucci

Suzanne Miglucci

So while we're waiting for you to fill the queue, we do have an emailed question that we thought we'd begin with. We were asked why we decided to issue equity rather than take on debt given our clean balance sheet. Clint I’ll ask to address this question please?

因此,当我们等待您填补队列时,我们确实有一个我们认为我们会开始的电子邮件问题。 我们被问到为什么我们决定发行股票而不是承担我们干净的资产负债表上的债务。 克林特我会要求解决这个问题吗?

Clint Pete

克林特皮特

Sure, thanks Suzanne and good question because we’ve been asked this question several times since our capital raise. In fact we actually went down the path of taking on debt as was our first choice towards capital growth. But what we learned is that the cost of capital related to the debt wasn’t favorable to us due to the aggressive timeline on the payback of the debt.
And also in addition to that, is various potential terms such as warrants and capital restrictions that small companies such as our space. So in bottom line out there, very thorough valuation the Board and the executive management team actually elected to go with a capital - with a equity raise and that also helped us with - to continue to be debt free.
And one more other thought in addition executing an equity raise also allows us to expand a number of shareholder and particularly institutional investors which we did get quite a few participate in our offering and which we believe will benefit all shareholders as I mentioned earlier in the call through increase trading volume and liquidity over the medium and long-term.

当然,感谢Suzanne和一个很好的问题,因为自从我们筹集资金以来,我们已经多次被问过这个问题。事实上,我们实际上已经走上了承担债务的道路,这是我们对资本增长的首选。但我们了解到,由于债务偿还的激进时间表,与债务相关的资本成本对我们不利。

此外,还有各种潜在的条款,如权证和资本限制等小公司,如我们的空间。因此,在那里,非常彻底的估值,董事会和执行管理团队实际上选择了资本 - 股权融资,这也帮助我们 - 继续无债务。

除了执行股权融资之外还有另外一个想法也允许我们扩大一些股东,特别是机构投资者,我们确实参与了我们的产品,我们认为这将使所有股东受益,正如我之前在电话会议中提到的那样通过增加中长期的交易量和流动性。

Suzanne Miglucci

Suzanne Miglucci

Thank you, Clint. Operator, do we have anyone in the queue.

谢谢,克林特。 运营商,我们队列中有没有人。

会议主持员

Yes, it looks like we have Dave King from ROTH Capital. Please go ahead.

是的,看起来我们有来自ROTH Capital的Dave King。 请继续。

戴夫·金

Thanks for taking my questions. I guess first off on the traditional growth you had this quarter. Looks like you guys had a fairly nice lift there just curious, just curious how much of the benefit was due to the transition from consignment to asset light. Or maybe a better way of looking at, it, what was the sell-through or rate of sell-through to your brick-and-mortar channels versus that I think 30% growth you saw?

谢谢你回答我的问题。 我想首先关注本季度的传统增长。 看起来你们有一个相当不错的电梯只是好奇,只是好奇有多少好处是由于从寄售过渡到资产光。 或者也许是一种更好的方式来看待它,你的实体渠道的销售率或销售率与我认为你看到的30%增长率相比是什么?

Clint Pete

克林特皮特

Thanks Dave. What we saw from a standpoint on the traditional side the upside we are seeing excellent results related to our brick-and-mortar channel. We don't disclose - although we don't disclose sub channel type of metrics, except for charlesandcolvard.com, we did see some very strong sales continue through Helzberg as we do the expansion.
As far as we did not see - we saw very little related to that asset but some from the conversion from the consignment model this quarter and its going to be quarter by quarter basis when they do that flip. But we were actually successful in getting to our partners to actually - retail partners to do this.

谢谢戴夫。 从传统方面看,我们看到的好处是,我们看到了与我们的实体渠道相关的优异成果。 我们没有透露 - 虽然我们没有披露子渠道类型的指标,除了charlesandcolvard.com,我们确实看到一些非常强劲的销售继续通过Helzberg进行扩展。

就我们没有看到的情况而言 - 我们看到与该资产相关的信息很少,但有些来自本季度的寄售模式的转换,而当它们进行转换时,它将逐个季度地转换。 但我们实际上成功地让我们的合作伙伴实际上 - 零售合作伙伴这样做。

Suzanne Miglucci

Suzanne Miglucci

And let me jump in, as Clint mentioned the work that we are doing with Helzberg and we actually have another question in the queue. And it probably all plays into the same question here. So I'll address that. So any update on Charles & Colvard's partnership with Helzberg. We're seeing a continued and very nice relationship with Helzberg Diamonds. As I think most of you that have been on these calls before know, we started in their online channels.
And then in October of 2016, we began in stores, it was 25 stores, and it was 50, and 100. And then nearly all of their doors, which is about a fleet of 200. But I'm proud to say that we have gone from one foot of case line to two and now we're pretty much three feet of case line in most all stores and there are some that are taking on a fourth foot case line. And what this means is that we continue to grow the footprint and the number of styles that we have in this store, which then continues to address a broader audience preference with this sort of variety of goods. So as Clint mentioned, while we don't necessarily share numbers from individual accounts.
This one is a very nice account for us it's performing well. It's a good synergistic mutual relationship where we're bringing accretive business to Helzberg. And in turn, they're giving us more and more exposure. We kind of think of it as our showroom, Charles & Colvard doesn't have a physical showroom of our own, but most any Americans get in their car and within two hours time see Charles & Colvard product in a Helzberg Diamond store. So we're thrilled with that one.

让我跳进去,正如克林特提到我们正在与Helzberg做的工作,我们实际上在队列中有另一个问题。它可能在这里都有同样的问题。所以我会解决这个问题。所以Charles&Colvard与Helzberg合作的最新消息。我们看到了与Helzberg钻石的持续和非常好的关系。我想你们大多数人之前都知道这些电话,我们从他们的在线渠道开始。

然后在2016年10月,我们开始在商店,它是25家商店,它是50和100。然后几乎所有的门,这是约200的船队。但我很自豪地说,我们已经从一英尺的箱子线变成了两个,现在我们在大多数所有商店都有大约3英尺的箱子线,而且还有一些正在采用第四个箱子线。这意味着我们继续增加我们在这家商店的足迹和样式数量,然后继续通过这种商品来满足更广泛的受众偏好。正如克林特所说,虽然我们不一定会分享个人账户的数字。

对我们来说,这是一个非常好的帐户,它表现良好。这是一个良好的协同相互关系,我们正在为Helzberg带来增长的业务。反过来,他们给了我们越来越多的曝光率。我们认为它是我们的陈列室,Charles&Colvard没有我们自己的实体陈列室,但大多数美国人都在他们的车里,在两小时内看到Charles&Colvard产品在Helzberg钻石店。所以我们对那个感到非常激动。

戴夫·金

Okay, it's great to hear. Switching gears a bit, on the marketing front, to what extent did you start to lay into marketing subsequent quarter in and into July and August? And then I guess more importantly what sort of ROIs are you seeing there? Have you started to accelerate it at the top of funnel yet? How the ROI has been there versus what you've seen previously? Thanks.

好的,很高兴听到。 在市场营销方面稍微改变一下,你在7月和8月的后续季度开始营销的程度如何? 然后我想更重要的是你在那里看到了什么样的投资回报率? 你是否开始在漏斗的顶部加速它? ROI如何与您之前看到的相比? 谢谢。

Suzanne Miglucci

Suzanne Miglucci

Yes, it’s a great question, Dave. So we're only now beginning of course, we did the deal, or do the capital raising in June, sort of second part of it, and then a little bit into July. So we really didn't start additional spending until the July timeframe. And so and we're slowly sort of burning it in and we're careful investors here.
So we want to make sure that the dollars that we're putting in are giving us that return, we're continuing to see a two to eight times return on ad spend. So that's not changing much day, what changes now as we get into holiday and we start to lean in and work more top of funnel is that where we're spending more in the two range then we are in the eight range because the eight range is the people that already know us or are predisposed to the brand.
And the conversion rates more in the two times return on ad spend, or the people that don't know that. And we ramp for holiday, that's really where we want to put our efforts, where excellent marketeers when it comes to converting people that know the brand, but we simply need more of those eyeballs in the pipeline and that's what we're going to be focusing on.
The thing for folks to understand is that that takes a little bit of time. So it can take eight to 16 weeks for somebody that sees us for the first time to convert. So the effort is going into sort of the quarter that we're in, and then we're looking for the holiday quarter to start to really reap those rewards. Hopefully that answers your question.

是的,这是一个很好的问题,戴夫。所以我们现在才刚刚开始,我们做了这笔交易,或者在6月进行了融资,有点是第二部分,然后进入7月份。所以我们真的没有开始额外的支出,直到7月的时间框架。所以我们慢慢地把它烧进来,我们在这里谨慎投资。

因此,我们希望确保我们投入的美元能够为我们带来回报,我们将继续看到广告支出的两到八倍的回报。所以这并没有改变太多的一天,现在我们进入假期时会发生什么变化,我们开始倾斜并且更多地在漏斗区工作,我们在两个范围内花费更多,那么我们在8个范围内,因为八个范围是那些已经了解我们或倾向于品牌的人。

两次广告支出的转化率或者不知道这一点的人的转化率更高。我们正在努力度假,这就是我们想要付出努力的地方,优秀的市场营销人员在转变知道品牌的人时,我们只需要更多的眼球,这就是我们将要做的事情。专注于。

人们要理解的是,这需要一点时间。因此,对于第一次看到我们转换的人来说,可能需要8到16周的时间。因此,努力进入了我们所处的那个季度,然后我们正在寻找假期季开始真正获得这些奖励。希望能回答你的问题。

戴夫·金

Okay, that that helps. And then I got one, I've got one more if I would sneak it in.

好的,这有帮助。 然后我得到一个,如果我偷偷进去,我还有一个。

Suzanne Miglucci

Suzanne Miglucci

Sure.

当然。

戴夫·金

For Clint, in terms of the -- I think like $3.1 million or so of OpEx during the quarter. How much of that was outsized either related to the capital raise or other items, if anything?

对克林特而言,我认为本季度的运营支出约为310万美元。 如果有的话,有多少资金与资本筹集或其他项目有关?

Clint Pete

克林特皮特

I'd say probably that items that were not capitalized to the balance sheet. Dave, I'd say that estimated between 100,000 and 150,000 that we spent related to that, maybe a little lot isn't that, probably under $100,000.

我可能会说那些没有资本化到资产负债表的物品。 戴夫,我会说估计我们花费的100,000到150,000与之相关,也许有点不多,可能不到10万美元。

戴夫·金

Okay. So just in terms of trying to think about what a good run rate of expenses going forward, then is it a little bit under the $3 million a quarter or something is the right way to think about it?

好的。 所以,就试图考虑未来的良好运行费用而言,那么它是否会在每季度300万美元以下或某种情况下考虑它的正确方法?

Clint Pete

克林特皮特

Say that again, Dave.

再说一遍,戴夫。

戴夫·金

Sorry, so in terms of run rate of quarterly expenses on a go-forward basis then it’s the right way to think about it. So it’s little under $3 million in quarterly in terms of core expense
OpEx.

对不起,所以就前瞻性季度费用的运行率而言,这是考虑它的正确方法。 因此,就核心费用而言,每季度的收入略低于300万美元

OPEX。

Clint Pete

克林特皮特

While we ended up like I said we are reflective of last year or quarter but as we continue you should see the increase in marketing that’s stand as we put some more fuel on the fire related to driving that top line and top of funnel. So from the standpoint you got to factor that in, related to, start looking at quarter-over-quarter trends related to our OpEx.

虽然我们最终表示我们反映了去年或季度,但是随着我们的继续,您应该看到市场营销的增加,因为我们在推动该顶线和漏斗线的火灾上投入了更多的燃料。 因此,从相关的角度来看,您必须考虑与我们的运营支出相关的季度环比趋势。

戴夫·金

Understood, okay.

明白了,好吧。

Suzanne Miglucci

Suzanne Miglucci

Okay, Dave, appreciate you calling in. Operator, do we have someone else in the queue?

好的,戴夫,感谢你的来电。运营商,我们队员中还有其他人吗?

会议主持员

The next question comes from [Mark Scanlin], Private Investor. Please go ahead.

下一个问题来自私人投资者[Mark Scanlin]。 请继续。

身份不明的分析师

Good afternoon, Suzanne and congratulations on a very good year and a great quarter. Very interested hearing more about traditional expansion, I definitely have a lot of respect for what you’re doing digitally, but it seems like Helzberg is doing extremely well, are there any conversations going forward with larger entities like perhaps the Sterling Signet Corporation.

下午好,Suzanne和祝贺他们度过了非常好的一年和一个伟大的季度。 非常感兴趣的是关于传统扩展的更多信息,我绝对非常尊重你正在做的数字化工作,但似乎Helzberg做得非常好,是否有任何与大型实体(如Sterling Signet Corporation)进行的对话。

Suzanne Miglucci

Suzanne Miglucci

So we talk with everyone that will take our phone calls, and then when they don't, we try calling them back again. So by all means, we are actively pursuing the traditional sector. In the U.S., going directly to these retailers makes sense and we're building and working on those relationships. Internationally, we’ve spent a little more time and effort going to our distributors and asking them to do the job of bringing the brand forward because they speak
those local languages and they know those outlets pretty well.
But by all means we're not throwing the traditional baby out with the bathwater because it has been a very healthy and growing business for us. But certainly not growing as rapidly as we are in online channels, we started from zero and so it's kind of, it's a net new and shiny object for us and a great way for us to get some growth. But there is absolutely work for us to do on the retail side of the business. And retail is a vast place. And so I think that you can expect over the coming year to hear more about these efforts.
It's a blended effort. And as you'll see right now, 50% of the business roughly is traditional, 50% of the business is online, it’s a great balance. And what we're thrilled about is the fact that we built this omni channel strategy where we're not relying on a few elephants, if you will, that that bring us our revenue. We're now very nicely balanced across these multiple channels.
A nice big additional retailer would be a nice boon to us. So certainly something that we're focused on.

因此,我们与将接听电话的所有人交谈,然后当他们不接听时,我们会再次呼叫他们。因此,无论如何,我们都在积极地追求传统领域。在美国,直接进入这些零售商是有道理的,我们正在建立和发展这些关系。在国际上,我们花了更多的时间和精力去分销商,并要求他们做好推动品牌发展的工作,因为他们说话

那些当地语言,他们非常了解这些网点。

但无论如何我们都不会把传统的婴儿扔进洗澡水中,因为它对我们来说是一项非常健康和不断发展的事业。但肯定没有像我们在线渠道那样快速增长,我们从零开始,所以它是一种,它对我们来说是一个净新的闪亮对象,也是我们获得增长的好方法。但是,对于我们来说,在零售业务方面我们绝对有工作要做。零售业是一个广阔的地方。因此,我认为在接下来的一年中,您可以期待更多关于这些努力的消息。

这是一种混合的努力。正如您现在所看到的,50%的业务大致是传统的,50%的业务是在线的,这是一个很好的平衡。令我们兴奋的是,我们建立了这种全渠道策略,我们不依赖于几头大象,如果你愿意的话,这会给我们带来收入。我们现在在这些多个渠道中非常平衡。

一个不错的大型零售商对我们来说是一个不错的福音。当然,我们关注的是一些东西。

身份不明的分析师

Thank you.

谢谢。

Suzanne Miglucci

Suzanne Miglucci

You’re very welcome. Operator, anyone else in the queue?

非常欢迎你。 运营商,队列中的其他人?

会议主持员

That’s it for the queue.

这就是队列。

Suzanne Miglucci

Suzanne Miglucci

All right, I think we had one more writing question here. Give us a second here. What is the most exciting growth opportunity in an online channel? That's a good question. Thank you for writing in on that one. And we love the writing questions. So please don't ever hesitate to send in your questions to ir.charlesandcolvard.com. I think the most exciting opportunity in online channels and you're going to maybe be surprised at my answer.
It's not landing a new marketplace or a new outlet to sell through. It's the relationship, we're building with our consumer. The most exciting thing is talking to her directly. And having that dialog and then through the dialog, having your embrace of land and then creating her own content and user generated content where she's bringing the brand forward and becomes an ambassador. And the more brand ambassadors we have driving this brand to market.
The less we have to talk about it ourselves and the more the consumer can lead the charge for us.
So I would say that's one of the most exciting things and why top of funnel marketing activities are important to us because that it gives us a chance to be in front of more consumers and to then to initiate that dialog. So thanks for the writing question. Operator, I think we have one more in the queue.

好吧,我想我们还有一个写作问题。在这里给我们一点。在线渠道中最令人兴奋的增长机会是什么?这是个好问题。感谢您写上那篇文章。我们喜欢写作问题。所以请不要犹豫,将您的问题发送到ir.charlesandcolvard.com。我认为在线频道中最令人兴奋的机会,你可能会对我的回答感到惊讶。

它没有登陆新的市场或新的销售渠道。这是我们与消费者建立的关系。最激动人心的是直接跟她说话。通过对话,然后通过对话,拥抱你的土地,然后创建自己的内容和用户生成的内容,她将品牌推向前面并成为一名大使。我们将品牌推向市场的品牌大使越来越多。

我们自己越少谈论它,消费者就越能为我们带来收费。

所以我想说这是最激动人心的事情之一,为什么漏斗营销活动的顶端对我们很重要,因为它让我们有机会面对更多的消费者,然后启动对话。所以感谢写作问题。运营商,我想我们还有一个在队列中。

会议主持员

Rodney Baber, who is a Private Investor is just out. Please go ahead.

私人投资者Rodney Baber刚出局。 请继续。

Rodney Baber

Rodney Baber

Suzanne, how are you?

苏珊,你好吗?

Suzanne Miglucci

Suzanne Miglucci

I’m good, Rodney. How are you, it has been a long time.

我很好,罗德尼。 你好,已经很久了。

Rodney Baber

Rodney Baber

No, congratulations for you and the team on the progress that you've been making because there's a lot of good in this report and the margin improvements, expenses being under control all those kind of things. For those that have been around for a while, we've been watching that and you've delivered on this.
So our congratulation for that. The thing that's on my mind is you've got the company through a transition and in a pretty good position to grow. And so how are you going to get the revenue growth up? It's going to bring attention to this and one of the things that's been on my mind is when with the Millennials kick in and really wake up to the value of this product.
And so I wanted to ask you for kind of a state of the union update on the Millennials because I have heard that lab created damage coming down a lot, that they're almost getting competitive with Moissanite and there may be more interest in lab created damage that I was thinking with what evolves. So what is the status of that because it's the Moissanite market ever really takes hold. This will have that J curve thing, we’re going to look in for. So I'd love to hear what your, you raise some thoughts on that.

不,祝贺你和团队取得了你所取得的进步,因为这份报告中有很多优点,而且利润率有所改善,所有这些事情都控制着开支。对于那些已经存在一段时间的人,我们一直在关注这一点,你已经完成了这一点。

所以我们对此表示祝贺。我想到的是,你已经让公司度过了一个过渡期并且处于良好的发展阶段。那么你如何才能实现收入增长呢?它会引起人们对此的关注,我想到的其中一件事就是当千禧一代开始并真正唤醒这款产品的价值时。

所以我想问你关于千禧一代工会更新的状态,因为我听说实验室造成的损害很大,他们几乎与Moissanite竞争,可能对实验室创造了更多的兴趣我正在思考什么演变的伤害。那么它的地位是什么,因为莫桑石市场确实占据了一席之地。这将是J曲线的事情,我们将寻找。所以我很想听听你的意见,你提出了一些想法。

Suzanne Miglucci

Suzanne Miglucci

Yes, sure Rodney, that's a great question and probably something a lot of the other folks on a call would be interested in. So the growth is going to come in the expansion of brands. And that's where that the proceeds are really going to play a role. So how are we going to do more top of funnel marketing to bring awareness to it, and that's where the Millennial sits, right? She's at that social media intersection where we're going to meet up with her and we're going to present the brand.
More than 50% of our online channels revenue comes from this Millennial and emerging Gen Z consumer. So she's here and absolutely the dollars and the margins that we're making in online channels is coming from that Millennial. So while other retailers may be having challenges, I'm not sure where the data is coming from. For us, it is where we live. The Millennial is absolutely the consumer that is making things happen here. So I think said on a lab created diamond side what was happening here Rodney is we're seeing a lift from the buzz and the interest that's happening in the market and lab created diamond.
But let me share some recent numbers with you. So we know that our two carat Moissanite gemstone at our highest possible quality is going to cost that consumer about $1,500. A comparable lab-created diamond is going to be about 21,000. So there's still a lot of space between our product and lab-created diamond.
So what we love is that there's a lot of others and money where people like to be or just talking about lab created products. And then when she does her homework and figures out the difference in price, yet she's still gifted, ethically sourced stone. I think that's when the interest comes back here. We do know that that is putting some downward pressure on the overall market, but they're doing it in kind of a segmented way. They are bringing forward some price points that do maybe compete with us but I would say they really don't because they're working in below one carat space.
Most of the jobs that we have, most of the products that we sell into our consumer are one carat and very much two carat and above. So the value proposition of Moissanite is that you can buy a really big look and get a terrific stone that sparkles more than anything else. You can get it at a greatly reviewed price from what the lab-created producers are bringing to market at one carat and above. So there's still a lot of room there, Rodney and I'm not too worried about.

是的,确定罗德尼,这是一个很好的问题,也许很多其他人都会对此感兴趣。所以增长将来自品牌的扩张。这就是收益真正发挥作用的地方。那么我们如何才能更多地进行漏斗营销以提高认知度,这就是千禧一代所在,对吧?她正处于社交媒体的交叉点,我们将与她见面,我们将展示这个品牌。

超过50%的在线渠道收入来自这个千禧一代和新兴的Z世代消费者。所以她就在这里,绝对是我们在线渠道中的美元和利润来自千禧年。因此,虽然其他零售商可能面临挑战,但我不确定数据的来源。对我们来说,这是我们生活的地方。千禧一代绝对是让这里的事情发生的消费者。因此,我认为在实验室创建的钻石方面说道,罗德尼在这里发生了什么事情,我们看到了市场和实验室创造钻石的嗡嗡声和兴趣。

但是,让我与你分享最近的一些数字。所以我们知道我们的两克拉莫桑石宝石的质量最高可能会让消费者花费大约1,500美元。一个类似的实验室创建的钻石将约为21,000。因此,我们的产品和实验室创造的钻石之间仍有很大的空间。

所以我们喜欢的是,人们喜欢或只是谈论实验室创造的产品时,会有很多其他人和金钱。然后,当她完成家庭作业并找出价格上的差异时,她仍然有天赋,道德来源的石头。我认为这是兴趣回归的时候。我们确实知道这给整体市场带来了一些下行压力,但他们是以分段方式进行的。他们提出了一些可能与我们竞争的价格点,但我会说他们真的没有,因为他们在一克拉以下的空间工作。

我们拥有的大多数工作,我们销售给消费者的大部分产品都是一克拉,而且非常大两克拉以上。因此,Moissanite的价值主张是,你可以买到一个非常大的外观,并得到一个比其他任何东西闪耀更好的石头。您可以从实验室创建的生产商以1克拉及以上的价格进入市场的价格大幅提价。所以那里还有很多空间,罗德尼和我并不太担心。

Rodney Baber

Rodney Baber

I will make sure I'm clear on this. You said a one carat Moissanite is 1500 and then you said a lab created was 21,000 and I had thought, thought the lab created valuation which would be more like $2,000 or $3,000 so much ahead of Moissanite but even by diamond for one carat for 21,000. So I'm going to clear that up for me.

我会确保我对此很清楚。 你说一克拉的Moissanite是1500,然后你说实验室创造的是21,000,我曾经想过,认为实验室创造的价值将比Moissanite高出2000美元或3,000美元,但即使钻石价格为21,000美元一克拉。 所以我打算为我解决这个问题。

Suzanne Miglucci

Suzanne Miglucci

Yes, okay. It has to do with the quality of the stone. So Forever One, our premium product really has no flaws in it. So we're comparing ourselves to a lab-created diamond that equally doesn't have flaws. So when we have that perfection of stone, DES which means basically colorless and what's called VVS quality, which is basically really has no flaws in it. So we're comparing ourselves to a lab created diamond that equally doesn't have flaws.
So when we have that perfection of stone DF, which means basically colorless, and what's called a VVS quality, which is basically flawless gemstone $1,500 dollars for our care at Moissanite from Charles & Colvard and Forever One and 21,000 or so from our lab-created diamond purveyor.
So that's again, that's a quality play. And you can find more insight that is a lower quality. And you can certainly find lab-created diamond, that's a lower quality. But that's very much how the consumer knows how to grade a gemstone. It's the same way that we've graded mined diamond for years. And so when we use that scale, and we're up here with a premium product, and we're at the top of the scale, we're competing handily, with the right price point and the right product.

是的,好的。它与石头的质量有关。所以Forever One,我们的优质产品确实没有任何缺陷。因此,我们将自己与实验室制造的钻石进行比较,同样没有缺陷。因此,当我们拥有完美的石头时,DES基本上是无色的,这就是所谓的VVS质量,这基本上没有任何缺陷。因此,我们将自己与实验室创建的钻石进行比较,同样没有缺陷。

因此,当我们拥有完美的石头DF,这意味着基本上无色,以及所谓的VVS品质,这基本上是完美无瑕的宝石,我们在Charles&Colvard和Forever One的Moissanite和我们实验室创建的21,000左右的护理中花费1,500美元钻石供应商。

再次,那是一场高质量的比赛。您可以找到更低质量的洞察力。你当然可以找到实验室制造的钻石,这是一种较低的质量。但这就是消费者如何知道宝石等级的方法。这与我们多年来对开采钻石进行分级的方式相同。因此,当我们使用这种规模,并且我们在这里使用优质产品,并且我们处于规模的顶端时,我们会以合适的价格点和正确的产品轻松竞争。

Rodney Baber

Rodney Baber

One final thing real quick, the average ad spend was $220 per customer. Okay. I'm not an expert on digital online, all the marketing and the cost of it. But that that sounded high to me that that is that where you expected that to be? Will that go down over time as you scale? That kind of thing? Or is that? What it takes to get a new customer and using the digital social media approach?

最后一件事很快,平均广告支出为每位客户220美元。 好的。 我不是数字在线专家,所有的营销和成本。 但那对我来说听起来很高,那就是你期望的那样? 当你扩展时,这会随着时间的推移而下降吗? 那种事? 还是那个? 如何获得新客户并使用数字社交媒体方法?

Suzanne Miglucci

Suzanne Miglucci

Yes, so look. Yes look you did good. 220 was the number that we had quoted, we feel pretty good about that number from a comparison standpoint with some of our peers. I think that we're very competitive, if not at a better number than others. I would have you turned to some market research that would maybe validate this for yourself. But I would expect so you ask the question, I would expect that that number might go up in the short term. And when Dave King asked his question about where we're spending money, the answer was we're going to spend more money at the top of the funnel where the $2 return on ad spend happens.
The more we do that, the more the price is going to go up because she's going to be clicking on ads or she's going to be engaging with ads. So we’re spending more money to get her because we’re spending by the click or by the drink if you will.
So I do anticipate it may go up a little bit over time and then it will probably then blend out. What happens though and for those of you that understand digital ad spend what happens is, it’s a little bit expensive then to bring in those new folks but they may raise the traffic and they may raise our organic traffic into the site. And so we blend it out and I do anticipate we’re still going to blend out at two to eight times return on ad spend and it’s all going to come out and wash.
So we feel pretty good about that investment and again keep in mind our average order value is $1,000. So we think it’s good math we are spending 220 to get a $1,000 deal, and I will do that all day along Rodney.

是的,所以看。是的,看起来你做得很好。 220是我们引用的数字,从与我们的一些同行的比较立场来看,我们对这个数字感觉相当不错。我认为我们的竞争非常激烈,如果不是比其他人更好的话。我会让你转向一些市场研究,可能会为自己验证这一点。但我希望你问这个问题,我希望这个数字可能会在短期内上升。当Dave King问他关于我们花钱的地方的问题时,答案是我们将在渠道的顶部花更多的钱,其中广告支出的回报率为2美元。

我们做得越多,价格就越高,因为她会点击广告,或者她会投放广告。所以我们花更多的钱来得到她,因为如果你愿意的话,我们会通过点击或饮料来消费。

所以我预计随着时间的推移可能会有所上升,然后它可能会融合在一起。但是,对于那些了解数字广告花费的人来说,会发生什么呢?引入这些新人会有点贵,但他们可能会提高流量,他们可能会提高我们的有机流量进入网站。所以我们将它混合在一起,我预计我们仍然会在广告支出的两到八倍的回报中融合,而且它们都会出来洗掉。

所以我们对这项投资感觉相当不错,并再次记住我们的平均订单价值为1,000美元。所以我们认为这是一个很好的数学,我们花220美元来获得1000美元的交易,我将整天沿着罗德尼这样做。

Rodney Baber

Rodney Baber

Okay, good. Well thank you very much good luck for Christmas and everything.

好的。 非常感谢圣诞节和一切的好运。

Suzanne Miglucci

Suzanne Miglucci

Thank you very much.

非常感谢你。

Clint Pete

克林特皮特

Thanks Rodney.

谢谢罗德尼。

Suzanne Miglucci

Suzanne Miglucci

Operator, do we have anyone else in the queue?

接线员,队列中还有其他人吗?

会议主持员

We do not. That was the last question.

我们不。 那是最后一个问题。

Suzanne Miglucci

Suzanne Miglucci

Okay well, let me just say some final remarks here. I want to thank you all for joining us on the call today. I'd like to take a moment to extend my sincere thanks to the amazing team here at Charles & Colvard. I appreciate everything that these folks have done to deliver this profitable year to our shareholders, and I am looking forward to an exciting New Year focused on growth.
To everyone on today’s call, we appreciate your interest and investment in Charles & Colvard and look forward to being in touch to update you on our continued progress. Thank you and have a good evening.

好吧,我先在这里说一些最后的评论。 我要感谢大家今天加入我们的电话会议。 我想花一点时间向Charles&Colvard这个令人惊叹的团队致以诚挚的谢意。 我很欣赏这些人为我们的股东带来这个有利可图的一年所做的一切,我期待着一个关注增长的令人兴奋的新年。

在今天的电话会议上,我们感谢您对Charles&Colvard的兴趣和投资,并期待与您保持联系以了解我们的持续进展。 谢谢你,晚上好。

会议主持员

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

会议现已结束。 感谢您参加今天的演讲。 您现在可以断开连接。

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