joining us now katrina lake, founder and ceo of stitch fix. katrina, good morning and welcome.33 days. >> good morning. >> we were sitting down and you guys were going public at the nasdaq public at 15, now you're dropping 10% but to 22 investors don't know what to do with this. i want to dive right in on margins because that's what investors seem to be concerned about as you move into men's and plus sizes and amp up your marketing spending your margins are coming in. what is your cost of acquiring customers doing over the course of 2018, and are you confident you're going to be able to continue doing that at a reasonable rate? >> yes the fundamentals of our business are really strong. we shared that we grew revenue 25% year over year this quarter. we shared that we added more active dlints than we've had since q3 of 2016 and had 30% year over year client growth all of that is through efficient marketing and through finding fibt ways to acquire new customers. so we're really happy that we have a diverse set of ways in which we're acquiring customers and really happy to demonstr

shrinkage is the cost of inventory that can't be sold founder katrina lake is working on different strategieso improve that she'll be on tomorrow morning at 11:00 a.m. so we'll ask her about that the call is ongoing, because it's the first time that the company has held an earnings call, they're spending some time going through their process before getting to guidance >> it had like a 10% reversal intraday like courtney said, it's up 63%. people thought this was going to be a blue apron sort of thing. i think the quarter was fine, 20% growing users, 30% and they're new to the category. can we pan over to guy over here if there was ever a guy that you guys should get on your stitchfix thing, look how he's dressed. we need a stitchfix box for this guy. >> pleated pants, patterns galore >> it was his birthday yesterday. >> we can get a stitchfix box for guy adami, let's clothe this guy for 2017, please >> jeez. >> quick >> my thought is this. they feel a little bit like snap why do i say that? it's decelerating at a rapid pace >> that comparison is not a friendly one >>> ahead, forget about bitc

bringing us some of the details from that report shares are still down double digits stitch fix ceo katrina lakebe on "squawk alley" tomorrow and have much more elaboration on these results do not miss that. >>> red hat earnings are out now. let's get over to deirdre bosa as we round this out deirdre? >> hey, kelly, it is a beat on the earnings and revenue front for the open-source software company and developer of linux operating system eps coming in 2 cents above forecast at 73 cents revenue also higher than the street was expecting at $748 million versus $739348 whi milln which was expected despite the beat and higher view for q4, shares are slipping in the after hours currently down 3% remember the stock has been on an absolute tear this year it's up about 85%. as of today, year to date. 2% since the last set of earnings this company has really been benefiting from jumping onto many of this year's biggest tech trends like the sbempinternet o things subscription revenue continues and relating to emerging technologies was up 44% year over year in the quarter keml lkelly, back over to you. >> t