OSTK - Earnings call transcript Q2 2020

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Operator

Thank you for standing by and welcome to the Q2 2020 Overstock.com Inc. Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. Please be advised that today’s conference is being recorded. now today, hand Ms. would to conference I speaker your Instructions] like the to over [Operator Alexis Callahan. you. Thank go Please ahead.

Alexis Callahan

Thank you, XXXX earnings Operator. second conference our Good call. morning and welcome to quarter

President Johnson, Joining Q&A. are Dave Please available conducting CEO Nielsen, Retail; we’re Lee, CEO of of Overstock Overstock. Medici today’s of note Saum of CFO me that of Ventures; Jonathan call for Overstock and today President tZERO Adrianne and be and remotely. Noursalehi, will

our include you responses views differ remind Let Actual that reflect July discussion and results your the management’s to me as XXth, following questions XXXX, forward-looking may today, of and materially. may statements.

SEC, Additional slide morning. two impact forward-looking Form and our press on information release in Please potentially statements XXXX, our disclosure that XX-K included about could financial for review results the subsequent the in of filed factors our this presentation. is QX today’s with filings

instructions website GAAP our for download turn the Relations' is you, Please summary to note Jonathan. available financial and session. these each slides our comparable our regarding this the certain The contain additional during of measures, Investor slide accompanying that, call, that presentation on our these SEC, questions most let me measures. today's for contains the Q&A to measures. with with disclosures asking non-GAAP webcast non-GAAP and including this posted And Relations filings website, reconciliations discuss we’ll measures call Investor During on our over

Jonathan Johnson

I'll Good agenda Salt provide second on and Alexis. follow you, all. quarter good our Lake business. four, three. in Slide shown on Thank to share early this our please. slide updates It's to be to morning City up results

and in Board. we and Francisco June that represent group in shareholders tech team. a years now Overstock private Independent and is advisors Board, to sixth our the of and invests great strong Strategy, the Co-Founder Overstock which Managing XX He strengthen to is Investor in addition Nettles Technology, have of enabled a our has will Director On equity fit added a well. automation XXth, San He William Relations. for to companies. William a Partner experience continue five We our Capital Markets, Directors.

to continue I have of contract announce something pilot Last Slide one and five, for to with a another e-commerce about look U.S. Government Federal Independent Services We to month, expertise. Overstock Board hope proof-of-concept that one awarded Administration. to retail three Member, soon. add a with the please. General vendors was

are is employees government on a including in $XX,XXX e-commerce billion agency can they of long supply We award than analytics robust and standing will participating core our chain, make like analytics make partner reporting data validation which office offerings. system which insight into equipment whether supplies, to certain and a for items that This robustness access inside spending, the the a capabilities. strength quotas. underlying infrastructure, granular and dashboard of provide provides need, and meeting commercial their agencies purchases, our relationships, will of $X less also government have platform roughly things purchases, purchases micro micro agencies, These annual Overstock's

yet. Unfortunately, purchase from Aside much how lead no Overstock the reputational award impact, additional please. Federal any to of six, to virus has potential opportunities. this there's guarantee isn't do P&L win. this government importance potential know Overstock I and BXB micro will Slide could spending over

some looking with us for it's might it time. fact, In like be

buying homes. which our year-over-year. are arguably their products, which times second efficiently. in increased and cost XXX% The systems, automation normal. our spend in in scales its in double, to model we of of and most focus Even business than I you from much as current embedded our models our and customers Because safety That keep is one retail becoming more abundantly well-suited for effectively of home so our sales homes, environment, organization. on core technology is when the apprised continuing quarter the now of new our buying the So, our evident categories relevant want they're as impact furnishings, of Overstock the our the easily on sales them numbers,

Our long and years of plus relationships model standing have us nimble. to XX partner/supplier allowed dropship be

times. during value particularly Overstock's products attractive is at great great Importantly, proposition financial uncertain We prices. offer

in home; customer As with continues an keep XXX% work up hired We've nearly well. we are that grow demand. care from organization, still to to aggressively

also taking from faced sales, resulting throughout businesses contact of pandemic, the also that higher in It's increased in our disrupted secret we've own the are set logistics, customer advantage volume. market We this no challenges; of by talent pandemic. strained

lagged. Our doubling fulfillment in a inventory with levels and sales dipped

hired and have beginning self-service improve options to fulfillment. inventory are to launched in recover and customer automation We and initiatives

alternative pays of an share. of that announced the earlier We annual share at to the to that our yesterday I'm gift It trades XXth. Our statement increase a under perspective million court found the case. reestablish the with regulatory month We OSTKO. that registration an the stock judgment shelf an XXXX. us corporate front. not the and quick dividends in agreed a capitalization. to We we card is A closed Slide employees report market system were should dividend. and nothing our adaptive reflect cash nimble use in with update. Delaware Supreme There's quarter shell. pleased Court on are our symbol on ATM distributed May tZERO This resilient trading second our still on in we please. We supplement as a seven, We new arguments. WKSI status this substance the the against under per organization. during digital $XX.XX have the $X.X ATM reversed note preferred and I our regained the

to turn our We Slide have. I'll Adrianne over results. fully address continue please. financial engage regulators any second to they to to questions with cooperate eight, and it may discuss quarter

Adrianne Lee

quarter second discussing forward you, our to results. Thank Jonathan. look I

slide. Next

and the numbers, dive reiterate financial like into segment would to results. we Before the we I our how business manage

chart driving technology blockchain three As includes financial companies foundational our across and retailer, and blockchain is a with capital Retail, are report markets; pure of which illustrates, e-commerce this play our adoption pillars. several segments; Overstock Medici focused that focused Ventures, tZERO, which we aligned on

Our of aggregate Overstock our quarter second a Overstock.com which three begin segments. by consolidated results Retail of I results, summary more includes will discussion with followed consolidated these a in-depth performance.

our and sheet that delivered included million, growth XXX% initiatives. Overstock spending On per slide. a segments. cash with we balance and at is ended consolidated three Next million. EBITDA and adjusted positive ATS, volume earnings basis, record against discipline balance investing tZERO a continues revenue across driven diluted by record quarter revenue we key results a strong on posted Retail, organization trading our healthy summary, In quarter of and year-over-year, $XX to the its over a focused execute $XXX of of share $X.XX, The last

are in Importantly, our financial performance. becoming increasingly evident these efforts

exceptionally provides of Overstock Retail's second a chart This performance. slide. summary Next strong quarter

XXX% business supported EBITDA in adjusted Our million improved measured $XX customers new and a increase Year-over-year. our by as profitability by

shortly, discuss takeaway model and our key scalability a will partner here through program. of the is efficiencies pure dropship our Jonathan As created play e-commerce

marketing expenses. topline expenses, by and this quarter, operating goal Investor Day, faster during leverage efforts. than On we've XX% As and accompanied last operating included a increase that growing which sales revenue is create to overarching total at recent note, doubled our total was we operating a by pace our our mentioned in

these and progress profitable growth achieving demonstrate, profitably new As making customers gaining towards results sustainable we're long-term.

and furnishings we core our the in purchase quarter, products Last are quarter record home million customer us increase categories. an purchasing our XXX% repeat experienced second finding and QX retail over have customer strong revenue last $XXX business Customers new of Jonathan slide. compared behavior, discuss which a increased Compared XXXX, XXX% from Next will increasingly or with was to growth later. of year.

a difficult growth right of now, growth the the tailwind purchasing a of and to that believe should U.S. predict long-term market, continue home online to serve it's home trends for While revenue our ours. online of furnishings currently will goal we outpacing shift overall furnishings the some as

to almost one-time million, points were several year. we quarter second XXX Retail to margin operational to with million a items pleased note efficiencies as important Well, to slide. is basis last gross as driven that by unique increase year-over-year. of $XXX improvement, increased improved gross Next the it Furthermore, by XXXX. second the well compared quarter profits are $XXX results

lower sales volumes, treat included increase being adjusted understaffed benefit level and fulfillment items marketing agreements a customers' balanced discounting product strategically costs availability one-time as from the Our in we charges to activity we as as customer our efforts to related experience, organization our lower from service stock-outs. care and against protect of part

not first line to we to do gross these and quarter be I expect by items discussed, in Going impacted one-time be our similarly with margin results. would XXXX expect performance just more forward,

expenses Of expenses. and Retail Overstock in percent our and marketing, include sales illustrates Next general and dollars revenue. slide. This operating a tech of and chart expenses absolute operating as note, administrative,

the revenue, that the illustrating percent G&A significant almost of business. the As We into our operating excluding leverage items business. improved technology as quarter, operating G&A able our XXX expenses, points strong inherent grow and we -- adding we as a were levered expense basis leverage expenses in can benefited topline special to the without

operating am report I to to carried our slide. bottom-line. leverage pleased through Next the

margin loss. basis Retail the adjusted record an quarters three As during following year-over-year. points an million and $XX year-over-year of of you XXX a see posted million EBITDA EBITDA Overstock increase can sequential $XX adjusted quarter, of improvement X.X%, EBITDA was Adjusted

I the quarter. on analysts quarter in margin the margin our be items discussed record and second adjusted expect as As high as means to EBITDA the chart, revenue one-time coupled not quite gross second it investors unique with was should to

remains in goal mid-single-digits. long-term to EBITDA the an adjusted Our consistently deliver margin

now that Jonathan, Next quarter the results. will you. to financial call our second summarizes turn slide. back And I

Jonathan Johnson

discipline, focus, these throughout by We're a company. Adrianne. you, Slide of with XX, They results. work people Thank please. hard thrilled lot the represent and

related home Retail. now online you these in we player a Overstock online please. Let have consumer end please. Slide through accelerated but top of We Online as the steadily me shifts results a with increasing market behavior the penetration more XX% is XX, relevant was the that pandemic growing estimate Overstock walk that Slide how the growth. penetration at market, furnishings to in pandemic, starting XX ever. QX. prior is than recent that achieve

in that is relevant but in We position distinct a strength position market, times. economic market of any playing challenging during especially are the our condition, to

the on homes value. brand home differentiates all good vision for green smart of and expertise Our

to for come customers high quality find a us Our goods great homes value. to

the everyday price believe Slide leader, nor XX, as Nor generals needs be We are please. strive do We to many we low at chart. we the Customers inspirational. the we position to our focus the strive you uniquely day. meets not, an every customers in be of this market. see bottom of such on do

customers for During QX, Overstock many discovered first time. the

and new customers year-over-year rate increased our XX% tripled repeat Our XX-day year-over-year.

products they that sticking having a in us gives these and customers This finding new experience. love and us New confidence future to purchases. us they will are continue customers are good are make with

new obsessively XX, foundation core strong focused these We've please. Slide a are We built competencies. retaining customers. in on our

First, driven guarantee and calls. by million They're we visits with how our offering customers looking and of returns, to customer our without they're personalized the service their emails a them what they three want meet average to and needs find phone are loyalty a products reach monthly them. help for, happenstance. program match XX logistical not know that price

Second, XX years. online technology to innovative we've integrating been building retail and and

machine and Beyond our the our customers products customers has in rankings keyword new looking our improved find and to SEO efforts they're traffic that increase allowed the are and bringing quarter, customer handle are for. this quickly in us computer more vision helping scalable core learning infrastructure large

a business we model. scalable Third, highly have

and in-house inventory Our network own our augmented dropship flexible in of for centers model partners delivery distribution efficient allows management. with fulfillment by thousands

over assortment, X sales. of to double million allowed suddenly abundance Our our products us

We for are BXB XX, a our awarded now contract. GSA standing site recently please. Slide quickly up

serving to all, vision focus just confidently create homes We've they helping Overstock's on for beautiful, needs Overstock a savvy and find well-appointed consolidated making customers do strategy. lives Broadly our Retail comfortable Now achieve that customers shoppers, reluctant order customer's is are at into and want focus In and this growth, to single what we easily profitable must mission accessible everyone sustainable, by homes our retail less. dream by. our focus for highest refreshers. know we and and page

brand XX% our savvy Selecting experiences, support. delivery opportunity Together was for and the Additionally, to or We've want. please. that deal fit a what pillars segments findings to innovation customers' of they we're shoppers easy long-term only focus. These -- needs, customers things focus roughly improve a so our is Two so customer aligned space, our us. a represent point on function does billion. have strength; Slide a naturally of findability, the provides that differentiation done smart great driven our customer and key for working our alignment these and existing our we've brand strategic of research guardrails and reluctant particularly value, of pillars product $XXX refreshers. XX home segments size, industry market furnishings customer well. market This of brand our

While other and customer who leaned play Overstock. want a to the Well, at about more two experience. are customers These want segments home focus us. into shopping propensity great pure low hassle on retailers the with a already shop purchases, their of we've to inspiration, higher good whitespace have feel deal-driven, that's

savvy of gives period, customers new to and provide -- This analytics customers customers machine stay. here added Slide We ensure new shoppers, please. that to recent experience customers from these most were are the home confidence and our us leverage learning refreshers. In continue shopping to desire. we our reluctant XX, the work these

see You on of free align here These us shipping conversion. remain each the pandemic. with but accounted pillars. completion. has serve pandemic. the of promotion please. our slides have won't during than progress efforts, aligned better more customers half This changed our Slide our with XX, lagged brand initiatives next of focused them into the everything. progress our three launch brand through I can XXXX points to The show but how lone specifically during dive allowed visitors, for our will has is We exception the pillars. Mobile initiatives on from not the long three the in here,

with of visits XXX% desktops. QX. were result greater efforts than mobile up the a specific in XXX% for As enhance mobile sales experience, Unique year-over-year a up our time, resonates customer. now mobile of to our were represents and Mobile first sales mobile our percentage

XX, new and primary primary to our please. will and reinforces existing focus. Slide chart home customers our understand improve This So, we continue on mobile experience. focus our and that furnishings like

quarter. QX sales of home last from year furnishings mix XX.X last XX.X Our XX.X%, was up and

core all-time XX, now and know has recovered Our Organic at us Slide customers competencies high. for our search is home in traffic please. furnishings. an

increase. with In have a home keyword time SEO on As ago. showed we a we about, talked homing couple had really we most previously related relevant in the tough rankings a XXXX, of started and years steady keywords,

proposed in now an the So, the at and of keywords our content top advantage increased technology pillars elements QX. online please. to while us key three shoppers, resulting the place absolute not volume in all a our to shipping is our all on see favorable We all-time customers. influx we driver. please. have rating put XX in orders allowed increase Overstock's and We're resonate now nice see in take with focus response moved we our brand recognize of high, COVID-XX. competitiveness. purchase a customer needle differentiators value of charges of averages. promotional shipping top of current relate each. shipping we Slide Free on launched nice favorable is of Two compared to to It's XX promotions. Slide see favorable the to is XX% These now compared significantly home shipping It's Savvy X% retailer free shoppers furnishing smart to to competition.

During and fulfillment the multiple work challenges period, home capabilities. we've from experienced

Ours is not story. unique a

delivery time, or sure customers' put with our plus please. on set expectations of on realistic orders our increased, early we percentage expectations. collective customers made consistent first time we While Slide delivered and delivery XX our our remained

continue history. year. and is highest through Even as lower better, sales contacts in The of contacts to in are a orders is than customer a that good of percentage volume lot XX% customer decline the self-service. contacts now of last increase a received high -- news Our we've our service

see the which had can increase of customers problems, cost a You we This a the in year-over-year. of can service customer means Xx solve percentage contact. self-service own contacts avoids their

make we improvements. satisfaction the Our during tweak customer sales of and our increase which as to continues dipped increase height

innovate to we growth. [Indiscernible] for Our technology say through routes please. as are Slide continued well-positioned have shown we automation. XX

driven Our revenue customer by and the growth business outpacing is our industry focus, model. technology, our

margins have gross improved. Our normalized

driving we is positive long-term rate are in flow. cash free growing through slower than the talked EBITDA adjusted margins produce flows generating expense leverage that to and about. This Adrianne Our revenue operational mid-single-digits

Overstock From it now vision has Slide We vision. where enabling for tZERO. tZERO. the for please. distribution for companies by app sustainable I in growth dream our XX, turn of shows are I'll to all. growth, exciting focus our our profitable account OSTKO business. blockchain successful of XX, Medici homes Medici of quarter Retail Ventures in areas been ATF to fits to driving with please. volume an Ventures of each Slide our and record This crypto slide start

I and XX, tZERO's for catalysts as recent adoption please. growth of believe Importantly, achievements future Slide serve platform. the will

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July traded our platform, tokens revenue means from far Slide previous exceeding X XX, During the records. on XX, please. XXX,XXX trading and over July tZERO higher commissions, higher generates revenue. have Because volume,

ATF to volume, user X,XXX users addition in In QX, alone. over crypto growth accounts record May new record over experienced app in X,XXX adding our with

retail tokenization recall will tZERO. This tZERO be digital luxury migrate approval, XX, and for users recently intends to market be It with these a to allow trade our That's to exciting may broker first its Slide securities. and been users please. the you months signed which few in upon soon to exciting As busy tZERO tZERO should has trading it asset Regis Most trading Aspen. milestone. property St. of token. the third-party tZERO's agreement will an dealer

dealers XXXX. through by We reiterate live revenue, also in one recent to revenue generated trend in the has driven volumes hope June I broker tZERO ATF May go tZERO dealer on the subsidiaries generated XX, broker I again equity tZERO please. security a side digital of quarter, roadmap. SpeedRoute for which this company. last traded million grows $XX is the Slide of all tZERO’s continues had exceeding Last will two grows, the record new publicly of revenue. business. increase

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news Everyone SettleMint, Q&A. verticals. should licensed startup area. XX, code a recognized one please. COVID-XX and based of for organizations a voting. low out Voatz SettleMint companies the the the is a on of our guidelines. accessible Evers accelerates platform voting for immutability recap players recent in distributed So please. progress? needed solution grade conducted group Slide with on. in voting built-in Slide of verified Dakota much based tZERO recently Voatz integration check centralized code mobile voting progress It Matter and It to highly please. other the uses launched currently use its federal by briefly middleware. big clamoring Slide became conducted website State recently Slide Boston safe in as smartphone a is rely Arizona, election be digital particularly and outdated blockchain new our development that yesterday. the To enable has the to mobile technology makes in solution stay and Belgium tuned. developers, conventions. was before few platforms. move blockchain. systems, enterprise also venture security scalable the I'm and first encouraged prospects. its Voatz South which turning outdated XX pleased company XX, Bringing with top and with XX, several to Slide managed of app XX. XX, provides we of notable sides and elections secure remote complying both to has overall case low current of the deal. our This by is we nearly recently successful utility systems the security Voatz crossing please. aisle perfect The please. which I'll whole

all of thus We our across far have business. made lot a in XXXX progress

focus consumer and executing reacted to We've market conditions efforts financial customer adapt We quickly are are against in discipline and to strategy. demands. the our to Those show the and beginning results. challenging

the move than a stronger by working resilience. many Our We're the nation from challenges demonstrated quick to business home. ever. model resolve our employees and have remarkable of We posed

just excited how let's let's well take questions Alexis growth and I'm continue our We far go. to are positioned With can we questions. with to some And start that trajectory. live see

Alexis Callahan

line. you can open the Operator,

Operator

line Forte question Davidson. first comes with from Your Instructions] Thomas [Operator of

Thomas Forte

taking my for Thank Great. questions. you

congratulations Saum Dave, amazing and Alexis First on off, Jonathan, Adrian, performance.

one question have I up. one follow So and

if but ability pandemic, can this to on is. about put achieve terms. to it I I post growth talk that home. price wanted I little, See touched sports your sales the team's you whenever in can drive a So, mid

So using throw it it free Is sports Is a slam layup? will a three a a basketball. it comparison close Is dunk? pointer?

Jonathan Johnson

words. the sports I'll hear to address Tom to you that may pandemic sales Nice ask post analogy Dave, kind Mid-teen growth that. thank the actually you something and Good. recognizing for comes. never be that post pandemic

Dave Nielsen

Yeah, something know, thanks, Tom. outpacing our would our Great and to we And, operating maintain we right turbulent predict any now, We question. improve our on maintain continuing right in to are strategy. to But of said, market give home now times. forecast part. be you goal That kind errant our on furnishings of growth strategy. the industry a

Thomas Forte

Excellent.

Jonathan Johnson

Alexis, do anything want to add to that? you

Alexis Callahan

No.

Jonathan Johnson

Okay. I'm sorry.

Thomas Forte

Thank Alright. you.

question add to tZERO ATF. tokens current joint second status Voatz? about venture can to for of a you efforts remind a tZERO. us talk with So some efforts I the to to And wanted create your

Saum Noursalehi

in? me Sir, Jonathan, want jump to you do

Jonathan Johnson

in. jump Saum. That's question, your Yeah,

Saum Noursalehi

Okay.

new you first assets, Aspen party now being do market So them COVID guys in estate. from others volatility, of that slow reengage. a a on the the bulk we've wide with but spectrum pipeline. industries with did the seen our of trades digital They're the platform. in the of several We kind heard trading have issuers token be real did third third, new assets will down on of

So to this some have asset-light additional hope following Aspen, next. quarter we hopefully and

an to ongoing regulators rulebook. actually they're with having they're the make dialogue their As to and BFTX as amendment [ph], about far

this and we to approval year. and year, get hope along progress making moving they're sometime early So next an later

Thomas Forte

and my Great. asking for I'll time Thanks. questions. get Thanks back in permitting the more. taking queue

Jonathan Johnson

Thanks, Tom.

Operator

And Excuse your [indiscernible]. next me. question comes from Mark

Unidentified Analyst

an would about of Well, Jonathan, day But than you and I'm the between show we when come special. a should the the it to because the plus What be is made and quite fives shit you because lot dividend more yet. you have theoretically credit took and common dividend what OSTKO high deserve the and all the plan worth hear or it's OSTK? and should OSTKO something I knew absolute distribution? tighten the common overstock spread the preferred and the worth OSTKO not

Jonathan Johnson

going kind this a that's efforts. tZERO, certain I common really to Overstock we've come On happen. made It's and Overstock, the the at Overstock to the entire market at team team Mark, is nice That's about want this me company at figure help the get something find tightening to and words. words more improve say has What got liquidity. kind out. for spread tZERO platform. trade the dealers, that between working at market? preferred. we think to shares to preferred the for on hard We're to more to ATF; working more very business get will will to exclusively do broker Overstock the we incentives have subscribed We're to tZERO the

preferred focused tie and But I ultimately, be the think common the running those we're market vice versa. to things should versus going on or spread. businesses let the determine, values Howard

Unidentified Analyst

with we see the doing a Saum a have dividend also better. tokens might tZERO on much question I for

Saum Noursalehi

potentially the to the options tZERO make participated much valuable that date options to some will don't there that more are tokens the for to We're dividends we're in right announce with those I which But RPO them now. apply to exploring with a tokens. some race. dividend investors have looking

Jonathan Johnson

breakeven. the tZERO that token doing the better, a under of declaring still is, Mark, line a not And while hampers dividend easier bottom one distributing on things company is Delaware much good it's -- profitable. it's must law, be

caps law, Delaware thinking that. for and That's ways more do we've why valuable to on got can't Saum So to under important or mentioned, has it. looking I make it what

Unidentified Analyst

other have to a hiring given tZERO if and thought full because Medici been there it or And and humps Officer really this Chief a Medici time then Investment rationalize more and hands Officer running your Investment little Chief finally, speed team any time thing full shift is Medici to you to assets Overstock get run

Jonathan Johnson

Ventures parties, soon probably a or roles. Medici to the Medici some So not capital. raised for a to the the family. fill which capital am that can a the BC at boards that they've in will sit posting from To job companies Medici people the point, I someone those of well-known that family someone be we won asked ask help of to can or for companies third this market. family recognized family great Overstock and Medici additional monitor on are company question, Board companies to in from focus determine description team some to help They products than on the in but Ventures is get in looking stretched Ventures particularly us to getting me Medici blockchain

So it. we're on working

Unidentified Analyst

help you in Well bringing done, done out, gang. Jonathan people you to around the And job. well super

Jonathan Johnson

Thank you.

Operator

Research. Brad PAA Safalow question with And from your comes

Brad Safalow

my my Thanks And congratulations execution. me on let questions. the for taking add

First spending a have you that to that extensive announcement. a presence currently. you And I to granularity? guessing you're the Overstock this that billion what question, this if weeks. launch with I going we frame in vendors occurs I'm have ecosystem very is sometime GSA really Obviously, any related GSA revenue know you with amount big of somehow of $X to Understand the result opportunity I and then Can had new more I few product but as you in sense really a don't wonder, a strong opportunity. could having announcement. and -- as number, the categories the are next conversations dimensionalize portal the to guess little

Jonathan Johnson

like it five any exactly government for an Let agencies don't government it comments which make and unknown haven't question the more know to affects I'll they really agencies, don't done do it's hard to We because offering and liked But turn We will these and us. It to Adrianne got. Dave to They It will like that not we the and Adrianne how from our what and just Dave? the they they I want. win GSA answer, a product liked some That's big win is we me start Dave P&L. modeling. they grow hard turn is to to purchase know us. analytics answer. platform.

Dave Nielsen

Yeah. Thanks, Good Jonathan. Brad. question,

And me the billion currently As past of the our the TAM that's the many in how will environment. side we proof-of-concept with is already either we $X updates have this is me play that We're thing feel new we good emphasize this they current in billion we Jonathan the this, we new highlight that the in in currently the like have not with commercial launch program, and in mentioned, along tech they present in. operate product we'll And just everything where emphasize in our this pilot our GSA specialize to more with in more this, look categories strong. to categories partners mind commercial We or platform, let partners programs, in the at way Many I the as categories random, but operate. on-boarding of is as area. to August. website, in liked to or learn really we'll conversations our know product keep provide, where we're provide said, purchase, well. that that just vendors, solid things, work dealings and assortment is let They this GSA a just new know confident as with of underscore TAM $X suppliers. the we But

Brad Safalow

is from approaching in Okay. how you spending government quarter? to, engagement the going launch, how you're And I much And in terms guess, promote of employees? how are this involved

Jonathan Johnson

Dave?

Dave Nielsen

platform, Jonathan. a assembling in think we've -- about last spending GSA when XX standpoint was the From strong, thanks, years. our of pieces for it's been and products components is a From for tech looking pioneering that the what the you

added governments a us that program purchase developing the their platform non-material the Most arena. work. we spent additional some and micro of of together, they some in we've to in really, it's, and to Just dev that additional manage But can that offer teams need categories. this the energy that and what assembling analytics invoicing of in and product and allows terms specific all things was time are

of significant out expenses really. right insignificant, the gate So not

Brad Safalow

Okay.

of within you're terms going In engagement to governance promote the how infrastructure?

Dave Nielsen

Yeah.

So, on the engagement--?

Jonathan Johnson

Dave talk that. to will ahead. Yeah, go

Dave Nielsen

as JJ. a and website. it and to when And specific a little private Thanks, think they allowed engagement, BXC to users, site. only than promote directly in directly you these We're about have specific you agencies government that you these When have bit for differently their not on log access to a is about think folks. market users,

the work with continue we'll So to closely GSA.

opportunities direct We more survey but with to is communicate and users marketing. there no have their learn and them,

Jonathan Johnson

If that very see providing on this Yeah. where these I quotas we they the they're on win their data, is ultimately that, having from that's robust good what The think Brad, they're need the government's costs to experience clear my different from and going which makes a data, I down. them, are businesses, getting purchasing kind grow. types of officers think procurement give been that meeting flying of we it

Brad Safalow

last in on question queue. the one Just the back we'll and get GSA

new conversations I are as more portal. new and a oriented. GSA, hear just you're of a a result assume the thoughts on that I You would your product want traditional commercially guess, with vendors, listing some to facing include of mentioned potential consumer vendors with your also I on lot that conversations this that would having

Dave Nielsen

these scale for opened U.S. segment talked us. in to business who are, contracts never commercial Yes. up We've actually online with have services. for the interesting several more government shipping it's the of who an large of fulfillment been have, A suppliers lot some

have to them of So we've more our actually BXC reached we and to to able them synergies we goods being listen website. been with more as they in those reached out on our us the out have see on and conversations, to commercial some the

yeah, there opportunity there there's well. as is So

Brad Safalow

it Thank All turn right, over. you. I'll

Dave Nielsen

Brad. Thanks

Operator

line the from of Besecker Joseph Emerald comes with Management. question Asset Next

Joe Besecker

we that We've of Nathan doing? Emerald follows maybe have Hi, one And of Here this lot a quick really kind data signs that? you card as great? that go you would July following showing numbers can you of been so so see that quick could are on of be no kind slowing Can Any if that. give exceptional has comment the here go. us. just a couple the if Our of The data were analyst a I a kind work is Joe whatsoever. rapid. in you Jones I the the and is Besecker. this have then you that on questions questions And color you do been call first we asked, on is but well. far How on at ones, credit can

Jonathan Johnson

me one. that Well, take let me let

We because pandemic of from so are information. the quarter practice We sharing in did quarter guidance early the SEC. infra last

July see to on strong. on than quarter had that July, can and strong say comment other a You will remain I second sales we

Joe Besecker

came compensation. some a perspective That on Saum. can a question be looked at you little -- several I working that? And Can little of for want thinking different Saum bit give that's you color ways. letter a and thing. perspective you a you good us But from put -- out and of to bit our about as for my a to just salary then how your Okay. equity reducing give us yesterday,

Saum Noursalehi

I my our myself. so in Yeah, board, what mentioned well letter is as as

other salary. dying was the my some by pay I XX%. not you we're for And completely And management took just It optional. It's, for know, is equity capital. board reduce equity exclusively taking

plus Overstock know, You doing own quite guys our capital. well is have we

So reason. Part of was with just of it's and being the it responsible that for not times. because COVID

The for we're other think part capital smart burn a of do. race. just is in And, showing reductions preparing it to a probably is I thing

firm In in our supplemented from capital someone And kind Gaviser, in we addition, complement my my Michael we're got primarily of and skill which development -- technology. to letter, we set, product need now leaders mentioned team. those in markets of is KKR adding some really and the more really who's Director helping I talent. strong Managing

I the included take myself did believe for equity the reasons getting that really And I trade. in are mission incentives it. some so team, and those this also I'll think salary.

Joe Besecker

Got you.

Saum Noursalehi

reasons. the were Those

Joe Besecker

go And ahead. a follow-up -- then

Jonathan Johnson

big a There's I Joe, big is positive. view positive. this a

Joe Besecker

a think it's I and to in talking just in think street get I the of the to but they were positive, yesterday, huge some some wanted confused clarity on I that. people

Jonathan Johnson

voluntary. Completely

Joe Besecker

on were the Or do talking Overstock who, the -- anything my dividend Overstock's Does have of dividends, [ph] more Overstock The the preferred. to on as and thinking it alongside can't does Yes. think that we I tZERO profits? with your be Pérez difference did to that enough may good all, and about the and does that current first and asked say that on you things with want thinking Marco I you answered have this a his the have preferred buddy tZERO question, he the I confused. do that. shareholders when I themselves? I shows to thinking past between it opposed the to And the congratulate about profits for down of drill

Jonathan Johnson

paid pay I it this the Joe year. clarifying I year. that, is wouldn't for on know every X thanks a Overstock a not series can question. don't pay a we answered why Board for to shares, year every paid has Tier the dividend dividend -- the that, tZERO asking not discuss preferred we but

Joe Besecker

at I the to were But tokens, you're speaking a Overstock there you the different, there difference. question, And answering opposed preferred. the tZERO to wasn't it, as way the is more when heard least the tokens

Jonathan Johnson

you, And correct. good a clarification. That's Thank Joe.

Joe Besecker

meet, tokens. situation was have the got because given I I shareholder, the because So I when not these before here, you some owned a preferred of

I the, think as be the current on would that on that, would that, I suspect you agenda. said,

Jonathan Johnson

Correct.

Joe Besecker

Thank Okay. guys. Great job. you

Jonathan Johnson

Thanks, Joe.

Operator

Forte comes question Thomas D.A. your Davidson. next And with from

Thomas Forte

single-digit the talk namesake you basic gross follow a One the has BXB for potentially margin retail door for near-term potential goals your you business? second, your can And Jonathan and -- for potentially margin two have opening envision higher my more I your retail? margin taking Thanks about contract than is government have to long-term the that then your long-term about talked Great. questions. ups. I for BXB, would

Jonathan Johnson

first, to I’ll to So, provide Adrianne and answer comments. I'll some turn

what I might answer the it. rest Adrianne, think take envision a it's not it for, just can't let We look business. as BXB focus. margins will in it current that of It I down look but too you It's early just -- for now. question. I our on be to will not, there as comment have grows,

Adrianne Lee

see it's emerge early. as GSA will we BXB more, also we echo said Great. more, Thanks. Tom Dave And the I trends yeah, too certainly provide as on this but and Jonathan know side and think to we with color

remarks, gross talked unique the the as clear. far were XQ hopefully As I consider I prepared to those think margin, my about within items thoughts, for

team kind we kind the be that the of a to question, QX of answer your expect place where had so Tom? And of to think going performance Does -- forward. back

Thomas Forte

you Thank does. very It much.

Operator

open. line Woodruff, from your is Mr. line And Woodruff your Woodruff next Company. K. & question the of comes William William from

William Woodruff

secure mobile the on voting. question a have I

think there you Is used could you thought of roadmap I if by too elaborate it curious, used. it you follow adopted a that? is basically -- also. think be any can anyway it be we have early? just think I guys I it's was I going be mean, through? to And it be adopted could -- Can states? can how Is there on that that

Jonathan Johnson

[ph] vote to COVID to Thank and adopt voting. you. overseas every The by hasn't, a to. does Yeah. to why secretary to or don't not used that to they under purchaser. first is People remotely states mobile state what with being voters. has who state clerk governments That over they've it Good. can American votes understand be Disabilities use Frankly, to with phones. the compliance able whoever's last it's used of to during in having been and and special jurisdictions said, I been have Act. meet slow how continue been it say, initially. -- over It's EuroCave haven't broader used different there's We called county at voting roadmap as XX been conventions That's are new XXX for the would absentee, roadmap people voting single expand are vendor able -- use days, uniform He for by today it's I have their are using voters, parties things. it. The not work

you're the to It's clerk every voting things. say, to ability guy county use the this. don't or go has and a do You state buy

organizations, in that's of a It's thing. and sales know, state that is meets it's county the you So Iowa, the clerks and with Utah national front process, kind and in uses XX on country long that counties, XX vote counties. aggressive

think a what great at Looking is government but already this to this change great quickly, they're think this vlatz.com, we a is time useful doing. it's great -- website, product. see product the I Government, and a votes for

Operator

closing questions. further there audio Thank you. are Are remarks? time, And any at this there no

Jonathan Johnson

I Until appreciate in productive. your Paulo. and everyone appreciate we at hard and days Ventures Medici interest our call. again, Overstock Thank from world. home We to this have healthy, for for the Overstock. participating you, to tZERO, moderating want us. thank stay I over work team in talk today's thank in they stay really will pandemic want I worked our XXX stay last shareholders safe,

Operator

And gentlemen, participation. concludes thank you your conference for call. you. Ladies Thank and today's this

disconnect. You may now

Beyond (BYON) 30 Jul 202020 Q2 Earnings call transcript