Good afternoon. At this time, all participants will be in a listen-only mode. 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 Brand. Please go ahead.

Hello, everyone, and thank you for joining us for the CarParts.com fourth quarter and fiscal year-end 2024 conference call. Joining me today are David Meniane, Chief Executive Officer, and Ryan Lockwood, Chief Financial Officer. Before I turn it over to David to start the call, I have some important disclosures. The prepared remarks 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 risks and uncertainties associated with the business. For a discussion of material risks and other important factors that could affect results, please refer to the CarParts.com annual report on Form 10-K and quarterly reports on Form 10-Q, each 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. With that, I would now like to turn the call over to David.

Thank you, Tina, and thanks everyone for joining us today. At the outset, let me say that today, we are not going to comment or take questions related to our strategic alternatives process beyond what we announced on March 5th. That process is being overseen by our board of directors with the assistance of financial and legal advisers. 2024 was an important year in the ongoing transformation of CarParts.com. We began the year by refocusing our strategy on three key elements. Number one, driving growth and net margin to strengthen financial performance. Number two, accelerating efficiency and effectiveness to quickly deliver improved profitability. And number three, achieving sustainable growth with strong long-term free cash flow. The economic environment was challenging for lower-income consumers for all of 2024, leading to a significant pullback in spending and deferral of costs like auto repairs. We faced meaningful price compression in the first part of 2024 and saw selling prices stabilize in the second half. Additionally, our lighting and mirror business was under substantial pressure due to low-cost, non-compliant, illegal parts imported from China flooding the market. As a result, we worked diligently to realign our business by expanding our product offering to attract a broader consumer base, repricing our products to target higher margin sales, adding high margin fee income, growing customer lifetime value with our mobile app, and increasing our focus on B2B and other commercial opportunities. These actions led to full-year 2024 revenues of $589 million, slightly below expectations. However, gross profit of $197 million and gross profit margin of 33.4% for the year was near the upper end of guidance. 2024 was a transformation investment year, as we look to upgrade our customer base and change the long-term margin profile and unit economics of the business. We currently rely on…

Thank you, David. In the fourth quarter, we reported revenues of $133.5 million, down 15% from $156.4 million last year. For the full year, we generated $588.8 million in revenues, down 13% from $675.7 million in 2023, with 2023 representing our highest revenue number ever in customer history. The decline was primarily driven by increased pricing combined with the impact of soft consumer demand as well as significant pressures in lighting and mirrors. Gross profit for the quarter was $43.4 million, down 16% compared to the prior year. Gross margin was 32.5%, down slightly from 33% in the prior year period. For the full year, gross profit was within our expected range at $196.7 million, down 14% compared to the prior year. Gross margin was 33.4% from 33.9% in 2023. The decline in gross margin was primarily driven by increased outbound transportation costs despite some offset from higher pre-freight gross margin. GAAP net loss for the quarter was $15.4 million compared to a loss of $6.1 million in the prior year period. For the year, GAAP net loss was $40.6 million compared to a loss of $8.2 million in 2023, primarily driven by lower gross profit. For the fourth quarter, adjusted EBITDA loss was $6.8 million, down from adjusted EBITDA of $1 million in the prior year period, primarily due to soft consumer demand, price compression, and increased competitive pressure in performance marketing. For the full year, adjusted EBITDA loss of $7.1 million was down from $19.7 million in 2023, primarily impacted by our fourth quarter results. In 2024, we incurred $6.4 million of elevated expenses outside of our normal operations, which we do not expect to reoccur in 2025, including overlapping software expenses related to our digital transformation and one-time costs related to the move of our Las Vegas facility. As David mentioned, we are focused on harvesting return on these strategic investments over the next few years. Turning to the balance sheet, we ended the year with $36.4 million of cash and no revolver debt. We generated $0.3 million of interest income in the fourth quarter and $1.5 million for the full year. Our inventory balance was $90.4 million at year-end versus $128.9 million at the end of 2023. Our cash position and untapped revolver continue to provide the necessary liquidity to support our business plan. As David mentioned above, our company is currently evaluating various strategic alternatives in response to inbound interest. As a result, we are not providing guidance for 2025. I'll now turn it back over to David for final remarks.

Thank you, Ryan. Looking ahead, we are confident that the strong foundation and improvements across our business secured throughout 2024 have set us on a path to achieve long-term sustainable positive adjusted EBITDA. Our priorities in 2025 include one, continue to expand our product offering, attract new customers, and increase average basket size. Number two, monetize our 100 million annual website visits and customer list with high margin fee income. Number three, scale our B2B offering with lots of transportation and higher touch sales in key markets. Number four, grow our mobile app business to diversify our marketing mix and deliver greater customer lifetime value. And number five, maintain a strong balance sheet with a focus on managing cash flow and inventory levels. We are committed to maximizing long-term shareholder value as we focus on capturing the growing opportunity in front of us within the highly fragmented and underserved $400 billion auto parts market. I would like to thank our global team for their resilience, hard work, and commitment as we continue to transform our business. Thank you everyone for joining today's call. We'll now turn it back over to the operator.

This concludes today's conference call. Thank you for participating. You may now disconnect.