PetMed Express, Inc. (NASDAQ:PETS) Q3 2024 Earnings Call Transcript

Matt Hulett: Yes. Thanks for that. Well, the answer there is 2 parts. One is getting food brands signed that our customers want and I had a little bit of color on that. And then two is executing on getting more products that our customers want in the AutoShip program. So on the first part, we are currently expanding our relationships with many of the top prescription and premium food brands. We just announced that we’ll be launching Hill’s this quarter, Hill’s Science Diet. And we’ll be launching and announcing new deeper partnerships with these premium brands in the future. And that’s a huge deal for our customers. Our customers are very health conscious. They go to the vet a lot. They want premium food and prescription products, given our prescription medication background.

Getting those types of brands online is large because we know definitively how many of our customers use those brands. So that’s the first unlock. Get the brand and get them signed. The second is executing on that. And we’ve seen a large growth in our food sales as a percentage of sales which is very low. It’s our fastest-growing category. And so as we get better at go-to-market, as we get better at marketing the right brands to our customers, that should continue to be a really good trend for the business.

Operator: And we have reached the end of the question-and-answer session. I’ll now turn the call back over to Mathew Hulett for closing remarks.

Matt Hulett: Yes. Thanks, everybody, for joining us today. Although it was unfortunate news today regarding the tax liability issues and the accounting change, we hope that, that doesn’t overshadow our excitement as a management team about the future of PetMeds as we transform from a single category pet medication business to a broader pet health expert business. We’re excited about continuing to articulate our milestones along this journey. And thank you very much for your time and attention today. Thank you. Operator, we’re all done here. Thank you very much.

Operator: Thank you. This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.