OSTK - Earnings call transcript Q1 2022

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Operator

Good day, and thank you for standing by. Welcome to the Q1 2022 Overstock.com Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now of hand today's would to conference I host your call, Instructions] like the to over [Operator Mr. Lavesh Hemnani, Relations. Head of Investor begin. Please

Lavesh Hemnani

you, I'm and XXXX morning, operator. Overstock's Thank quarter first welcome Earnings Hemnani. Lavesh to Call. Conference Good

Joining CEO Asian me Lee, Johnson, and on today Jonathan call the are CFO.

Q&A. call Additionally, remotely. President for will we that be Overstock Nielsen, note are Dave available of Please conducting today's

Next slide, please.

XX, that to as such you remind differ the and April your of reflect me and could responses following forward-looking Let our statements. include views questions management's today, results statements. XXXX, may discussion Actual from materially

presentation Additional today's the Form information to that XX-K webcast statements SEC. and slide review impact our XXst, potentially our year accompanying results the in website Relations download. of posted our December forward-looking the ended financial available important Investor two about factors presentation. for XXXX, in with is been is slide filings has included and could our to disclosure on Please today's A subsequent

this contain comparable slides and the to of most accompanying measures with financial our measures. these filings we'll this SEC measures. The these discuss During disclosures measures, including webcast regarding the non-GAAP reconciliations certain GAAP additional non-GAAP call,

in presentation. you. our during session instructions ask today, Thank Johnson. to for to Jonathan the Finally, questions our With me call are the also turn Q&A let available slide that, first speaker

Jonathan Johnson

good and Lavesh morning, everyone. you, Thank

During the today's three. on call, we follow will slide agenda

quarter targets. at XXXX of Revenue stated reported year. declined quarter quarter for Overstock results. morning, end adjusted eighth This the compared first low to quarter the of revenue, with X% were slide. margin first XX% We consecutive last Next in the the EBITDA our profitable

revenue. more non-home compared decline will the year. how and active was efforts our revenue, on last customer Adrian to counts impacting home-only For XX% Later, are share

sentiment quarter first anticipated was and we driven made business, rise a from we operational the sticking. be XX% in various impact We sales What such inflation, the with on challenging, last resulting Ukraine. revenue our QX was year, XXXX. as was the made impacts anticipate war consumer have sales would acceleration spoke and not two-year coupled spending would steep Even macroeconomic levels though that performance rate growth I when in anticipated, data, pleased I record two-year we in have are the have a based share track our of continued significant am third-party last to compared profitability. market you of factors. what quarter in improvements held pandemic-related on difference the didn't QX Our and XXXX that during line with by with our we considering up The of fourth factors pandemic the we level

generating are while sheet. delivering growth annual healthy revenue We on profits outpacing focused market and improving balance our the

standpoint, continue XXXX and from While consumer much we initiatives. execute has our changed against macro a to

Our monthly sequentially history. improved company through including from president sales in February, trends December today Overstock's largest

I mentioned in has have developed shopping key an As before, eventizing team holidays. our expertise

driven removal impact navigating an consumer by from geopolitical much softer The discretionary high non-home and pandemic part comparisons and our inflation is on immediate anticipated, which than a spending. adverse part period site March macro of the US was by driven However, having XX-year SKUs rate, is in in we and events.

compared of return to to time, forecasts. think continue will We normalized levels, are Additionally, pent-up years travel, online we to shopping mix spending that Over supported belief and after dining more consumers a goods shift of entertainment. consumer two to a services. anticipate by pre-pandemic a and higher of demand, is at will more levels third-party include spending this

navigate continues quarter. in business to in in the performance behavior am our to continue remain as could market confident profitable jolt deliver as we a our Over the results. first term, the well I to and and near in challenging I model volatility experienced environment calm. position macro to consumer us drive

very have strong sheet with little debt. balance We a

nimble us when arise. importance asset-light, wallets Slide more value, consumers stretched. to our for And allowing price are of market more We as pillar smart challenges and something their growing be delivers X, are value real please. brand

brief Overstock Directors a At of our announced for Annual Series are approval B the update into recent corporate stock. this next Now Meeting March, Shareholder stock conversion. on Overstock's simplify In seeking fully capital shareholder and preferred supports events. A-X Series Board for to both of plans common we The structure. we our conversion month,

approval, will converted be X.X common each share shareholder preferred Following stock. into shares of

our March to XX. information website on proposed in and include shares our the repurchase common repurchase preferred We to program this are to with proxy details the available addition share our filed ability shares. $XXX expanded Additional in related statement conversion to and on SEC million

its design During reentry some quarter, including officially also A-X plan. of we $XX million the of approximately common Series equity, consisting future shares. work remote first off or of predominantly repurchased shares, but and Earlier this Overstock our month, forward kicked preferred

to the The view from which able beginning expand are for of this homecoming held was to Overstock plan, the of employees. headquarters a the almost chapter culture. the event our employees. gathered to new bright Overstock……. our forward attended at event and part As in plan that celebrate at a Teams campus has we allowed we Utah all geographic design We and two-day recruit by connect, us collaborate locations

We pools benefiting help from growth a Overstock. for deep across long-term talent to drive diverse the are to already access country and

senior other of our states remotely recent worked In fact, many from Utah. than hires

business. and that talent are improve grow We retaining attracting help us to will continue top-tier and then the

results to to impact motivated results. I'll pandemic work review positive employees highly achieve financial the to detail. some more to now extent, ask our first in Adrianne While quarter expected day-to-day hard to our remain life still is

Adrianne Lee

will summary results, including Thank you, key please. and begin metrics a our customer performance Jonathan. Slide I quarter X, first financial review of a of with indicators.

compared XXX remained declined XXXX versus nearly XXX single diluted and in year-over-year, margin versus of an X%, proportionate note in and two-year We XX% improvement immaterial from EBITDA Revenue basis versus XXXX. performance of improvement tZERO. digits a by A an mid fund basis to and slide. points interest $X.XX the our quick tax $X.XX, mentioned, our share our $X.XX excludes Adjusted a as adjusted Ventures reported of increased XXXX of at a minority during earnings but direct quarter. the from impact on on Medici Next point This Jonathan decrease a decline share the XXXX. per rate of XX% basis.

effective our the assets, XXXX. a the on allowance maintain This led tax For to no was which the deferred we our tax compared a XX.X% rate primarily, period and was valuation state effective during to tax XX, longer in March same because lower ended rate X.X% quarter XXXX, federal past. most in of increase

be following we For on quarterly financial metrics the in appropriate, in there believe in fluctuations tax quarter-to-quarter mid-XX% based range noting the rate modeling items. detail purposes, would can to discrete greater I will slides. be that now these a speak

Next slide. increase the $XXX in compared of We posted year-over-year XX% decrease XXXX. and same million revenue to a first period an in quarter, the of of XX%

products The and was impacted by site. a comparison our non-home quarter geopolitical macro to first difficult remove uncertainty actions year, our to strategic from last and

to I furniture progress sequentially, year-over-year performance value relative greater by the driven our pre-pandemic order order continues shift we sticking. discuss home home. purchasing in was and frequency, illustrating to Revenue performance and online our that an While the increase well both furnishings decelerated revenue shift improvement have positively to these operational perform is and made business later. impacted by average to metrics a strategic detail XX% will in year-over-year in levels,

spend our role business. for and exiting a more continue support non-home the Our categories It's and frequency. that operational brand Overstock's right is to home home metrics at customers association higher repeat with our increasing

essentially of increases XXX were by year, cost by to various Gross operational an million promotional the our to increase with please. came a the We of value and profit an the first improvement basis year smart continue and quarter more line quarter XXXX. to flat customers. year in last were in first maintain normalized navigating at the margin slide, gross the $XXX environment, a quarter, million was $XX while XXXX. Next efficiencies. million first of to margin able of and offset decrease first prior Year-over-year to impacted of last in XX.X% $XX Gross versus versus in results margin compared provide quarter, points

slide. expenses enhanced and increased tech G&A tech the over dollars nine The absolute both and expenses of year-over-year. chart benefits, in Next our quarters G&A step-up and and This increased as slightly driven was past compensation by programs. equity revenue. illustrates to sequential a percentage due mainly

leverage. quarter, expense revenue XX.X% quarter driving was revenue, a first points the basis increased deleverage Compared basis in of the and points percentage over flat, tech XX%, first compared As expenses of XXX G&A a to were XXXX, to of XXX and operating XXXX. G&A while by tech of

our staff-related quarter for disciplined extremely on be to as which expense and tech our But plans G&A of expenses, fourth some maintains managing impacting. goal call, our higher include mentioned expenses. non-EBITDA Our are in I earnings XXXX

fact, share-based our lower our been versus In last have excluding year. expenses increased would compensation,

In million versus year XXX and was XXXX. improvement target please. end strategy. in $XX increase versus a making on disciplined management our marketing towards home while margin maintaining the of a is an at on operational the focus but our X% XXXX. a adjusted lower slide, EBITDA efficiency period points the million, commitment of first laser we stated again profitability which down gains of quarter, basis $XX Next Adjusted significant delivered focused ago, comparable and spend, versus through our expense We EBITDA progress

and This We active basis. a measure customers slide. order on active Next shows slide XX-month frequency. customers trailing

$X.X of customers almost first end active an to but customer base decrease a Our the X.X of million XXXX, XX% versus the increase versus declined XXXX. or at quarter, million

and strategy. offset to sequentially in as a decline partially average slide. with value, driven geopolitical restrictions, quarter to times factors: essentially impacting receded active positive highs while We per previously X.XX strategy a was key discuss It's right home-focused categories, detail year-over-year. our the from during customer customers customers point was we penetration been of out decline will slight that and increased point events flat experienced consumer as I to which have in sentiment. order non-home this peak an next quarter, shared, all-time in important the this first the the is see Orders pandemic active proof decreased, long-term and three active macroeconomic improvement in The this trade-off able exit first Online our by greater

as This Orders also average to shifted Average slide we delivered. home in seasonal improved and and delivered million primarily fourth driven year-over-year compared improved orders the million and by magnitude slide. an $XX.X to This compared mix. prior shows quarter acceleration sequentially $XXX decrease greater. sales was and trailing was furniture. a order to order year XX% was removals an The or non-home the XXXX. quarter value to increase is to decline from value X.X was more of for XX% giftable period. orders the Next of XX% home as the XX-month the compared of AOV fourth year-over-year

The removals from first QX quarter QX exits of QX non-home during this XXXX and and the year. of includes

Our AOV continued important our focus results an point proof of on home. are

trade-off While to strategic the of purchase order home is orders declining, are and each items who value customers have purchase. a with reflects propensity repeat improving. we value targeting, the are higher customers higher trust make It's a of the and us a behavior

Next slide, please.

and revenue. the ecosystem we As customer only active peers. one has last website, better base metrics category our adjusted non-home home on the the for non-home purchased we of this impact customer home a in related show some and we our non-home our want of provide for removals near our revenue over to category as the leaving Note, that furnishings months. I a impact classify non-home comparability our XX customers, related perspective versus slide, On completion performance on from

XX% chart on chart declined home the what quarter, the the can As on right earlier. reported end comparable versus related see active base The you the XX% would illustrates the the at our Jonathan of said customer left, on first have decline.

versus slide? anything During the this would add declined first reported would further the like revenue quarter, home-only XX% comparable you have to our on Jonathan, XX% decline.

Jonathan Johnson

good base portion of frequently than home a more customers, our that would. know that should non-home pain, shop data and should active most remove Simply long-term. be more, the customer by a we categories for business are to was customer some that the but customers. order decision repeats spends is our higher short-term in I intentional. has a strategic average Yes, valuable investing other there said, and value Yes. continues our to our in Everyone support

Adrianne Lee

Thank you, Jonathan.

in I the my debt. slide. the We section will financial million Next first with in cash and our by $XXX highlighting wrap-up balance discussion ended $XX quarter strong million on only sheet.

the We levels. At two end until to no highlight shareholders million in $XX debt in its the the have March million share Ventures Medici of solid tZERO funding was quarter round, on We it. million were Series only share February. quarter. first and we Notably, A in announced currently to fourth million of from which December through and aid net $XX key authorized repurchases, down transactions. fourth returned position in I $X.X want maintain fund, is B quick our these maturities the our following XXXX, was items a position alongside program available modestly significant tranche cash relative repurchase via and to of invested XXXX. quarter, the the to first we comparability to ICE about have reminder able that we XX, $XXX financial

proud future as strong making us With shareholder opportunity ample of are that, To We will to it provides we share Jonathan. strategic it you, enhance opportunistic repurchases. options value. continue in up, to position back to our sum financial to be evaluate

Jonathan Johnson

balance discipline, quarter Adrianne, generating highlighting highly profits I'm are our our Thank quarter. home strategy encouraged team the after execute how Unlike against strong you, leveraged. not for we financial healthy others, to continues maintain and by sheet.

financial our balance to you continue future powder the brand the optimistic view, the -- customer sheet please. with for just should no our home-only in long-term In home. and with almost dry Overstock's future And of Slide association many shared I be of towards that. We that with Overstock's The like about opportunities. strong opportunity amount good a for that debt lies validate Adrianne XX, remain strategic increasing and as my we metrics see about success. Overstock. temporary performance steer company headwinds

including is strategy and Next, where growth. we I'll business, provide focused and our some off home where are key paying our insights driving into targeting

in Home during of the growth right is significant Overstock that X/X home to our with transacted please. third-party home smart the meets Slide goods gain share. furnishings Overstock. there States. investors, highly be this online quadrant total fourth the This $XXX purchases is I'd and furniture expertise Based of in largest space addressable slide, continued market This and in opportunity to white combined the forecast, show like quadrant migration online, online home furnishings expected on Next United retailer are and about U.S. growing a of XXXX. billion Overstock SKU has planned to available Overstock XX, to market assortments, meets -- for value. for where slide in means the significant goods remind home is place fragmented,

about strategic focus to been have choosing We on it.

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wallets smart are As I shoppers mentioned value seek savvy consumers turn into earlier, seeking and our when smart stretched, value. target customers more

to help talk pillars, Overstock's of key to each please. define of our and which, Slide are value will continued past, our I XX, the proposition. now growth in each brand customer As three

quarter. home-focused As the to is sales both team XX% exceeded we continue in and strategy, at execute to the platform. end the goals on home grow executing of In the quarter, depth our of breadth our our goals. of categories, on first assortment were the home merchandising its team merchandising specific

new SKUs our add partners to continue new We platform. and to onboard

Home will wallet, into market We translate, expect growing share gains. brand of Overstock's association with driving share ultimately customer bigger a

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offer highest the at second best the Our price. is brand to strive value. products smart We pillar quality

This key first critical our to developed we do And performance and intentional is you model app. with the continue attracting with the and promotional to strong expertise mobile well retaining customers. of the I've events. shopping in to deliver Our continued XXXX. past, shared have we quarter In in the

our app growth increase included the quarter, During the XX% and which of period. new downloads Cyber love XXXX President's Overstock. platform, on drive Value mobile that execution Smart customers, on tenant are was believe Customers resonate our retention Day deliver to helped quarter our that in highlighted the quarter but had the versus top we fourth app only also traffic to value, coupons, highest mobile This those app. of not the record our our the performance company's order continues repeat X increased history. helped over last fourth XX% with sequentially us exclusive largest conversion call. the XX% This to on We

home order furnishings customers are higher values. buying New and with furniture

average over customers higher XX to In fact, average home internal compared the last shows data value basis months. our order for measured company the for an new points X,XXX transactions

additional attract make to easier, we experience, SKUs our enhance continue home shopping we add and As new customer new customers. navigation to and online expect overall

overall the that Now some thoughts let burdens on customer me the environment base. inflationary share

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and We deliver especially expect rising these customers inflation. that, as react with to to smart value we appreciate

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questions. some we’re Now ready operator, for let's take questions. Operator,

Operator

of excuse Piper you. Instructions] me, Thank from Peter come Our first [Operator will Keith question, Sandler.

Your open. line is

Peter Keith

everyone. morning, Good Thanks. Hi.

you're I what the that are it's getting the note, given you aggressive. and to on bit for sites? across a in thought could regard provide promotional, competitive seeing demand then, trends, advertising. more from hoping a more comparability strategy brand make we And to about little just step Jonathan, of more house and pricing that you more down address Have environment difficult some Just differentiation with the any exploring hearing it further maybe was

Jonathan Johnson

we pricing, on house we'll to right ad about turn or I'll Peter, address much be price great price our comparable. continue you. well a But That's Dave, in of And comparisons is up with to and our and Thank range. we're And right those we on pricing in On for of Yeah, fact, minus in page it and higher – then questions. pages price our to views. much spending, getting price we're XX% X% competitive about do talk XX% goal and to percentage XX%, are plus now. have to that that XX%, brands.

very you we're So the on maybe seeing we comment who environment. to in competitive. continue pricing, be ad competitive on can Dave,

Dave Nielsen

from tracking into when demand obviously, are across Yeah. promotions sell clicks looking ad line, competitive purchasing hasn't of with or off environment out But for is been quarter in And industry, challenging. the to been site promotional It's down those The first just the more about visits standpoint, of are we a our very love transitioned control. close coupon we're at April. the even competition it of is, percent expensive. is line as in

handle is a staying it's have consistent we pricing very historically. comfortable on been we're competitive it where and So, our

Jonathan Johnson

And off spending Peter, more at our where real she's a Dave. I can look we we would back bit. little ad team, fresh we're our can taking that. where add to perhaps a be and dollars Angela joining efficient Thanks, where

good So, fresh us. eyes a expert set good thing for is of a

at past have into those It's brand, pursue. At when something We've we far in of without As this into done right this that we the labels And we'll success. expertise it's ton go a us efforts. as -- and the don't expect something to evaluate. House the partners, occasionally. deep we continue that think look we right point, to private

Peter Keith

very Okay. much. you Thank

Jonathan Johnson

Yeah.

Operator

you. Thank

next of comes from Guggenheim. Sigman Our Seth question

is line Your open.

Seth Sigman

sounds on? then March? first going you. how Are or and the how And line, highlight? think start a of are to closer thinking top seasonal about then, normal that? about the maybe everybody. would you here follow-up. I we on factors you're early And anything you business or the were Any of rest I then, there a weaker. weather you Thank else the April, you with year? getting guess to there, good that a March for just a seasonality question the Was guess, seasonality? morning, of it would shorter-term maybe seeing I'm how what like on some effect bit indication Hey, unique, in exited

Jonathan Johnson

I is April I'm those relative huge things pause. that appreciate X/XX and that slight I say record March. Iraq to wouldn't people was the patio although But major We've the questions. cause sure has or things or the in East affects events it Yes, think like a do it will not a business. Seth, showing difference. whether this weather, impact. inflation had seen to to high attribute that I improvement I like been Coast different news And in colder our the war past, and Ukraine make that's

better, to difficult. that have still impact slightly so, seemed but it's a is March. And real a little better, April in

be third far to our as think we into. quarters. quarters tend that's we're And headed best what As second and seasonality,

we're looking to poised category. year, so that those. furniture Last we outdoor And to the forward patio do won again. We're

with our inventory are go. in-stock great and have partners ready to We

home fourth historically, best. We our working quarter. years, the at not better giftables the do We been are think be to last giftables, better over is with it. for Fourth we few quarter can

seasonality that's you. a really even Thank to more. pricing I'd - And the be just want into proposition is seems Q question value address this bit then the dig little So, around helpful. Okay. strategy. more This this smart second like relevant how it question. environment. in the That's should the I

of customers price are seems done yet balancing the right in declining, at it are job to where this at like of the looking ever quarter progressed? there parts. piece which more you company target. So, It's actually profitability, the frame invest you your orders opportunity and the be above of and price could How margin, how the second has One highest are? customer for gross really stage, now. gap a is one is, today, is, Overstock guess long-term actually Could declining. it given then that's if your And an I sales but of two especially, relative good this I'm sort is price-sensitive

Jonathan Johnson

become things are become important with will tomorrow. than lot ever. of and a we reluctant that more the inflationary So, the has of more of of XX% important shopper expect than there. The environment, they the XX% the One, market, market smart savvy refresher, yesterday, value

savvy more That dollars. are wallets their as and pinched shoppers to us. think become they're stress people for I trying bodes So, well

pricing, this down We're time and single moving up as every on products, we all day. looking myriad something far at and margin Adrianne, to of practically is we pricing a monitor to As sure historically, all products versus said the them comment trying gross where competitive make on not gross now it maximize as we've before. but with are margins, you we're the I'll market. is and let our

still more Our goal smart is because XX% at margin? out EBITDA. on our us adjusted that XX% split provide think range range comments any we value to lets business mid-single-digit gross Adrianne, model

Adrianne Lee

we in one And Jonathan. delivered. kind we in environment increase the gross to add great year-over-year, as did I'll by be of the kind margin this offset was more thing, at that that activity and our of efficiencies looked some XXXX, normalized operational team promotional

were we Thanks year Okay, very year. great. - So, this more last Q promotional than much.

Operator

of from comes Andreeva Thank question Anna you. Needham. our And next

open. is line Your

Anna Andreeva

morning and guys. you so Thank good Great. much

I were in for we buyback. to buyback, wanted a quarter? a we the headwind see you quick to $XX only appetite category levels? on the then And million these check guys surprised three-point at Just just Should second I the utilize, follow-up share here the expect think, on exit. especially similar secondly, what's

Jonathan Johnson

those answer reverse I'll order. in questions

the It's at more was it's glad it today, the in when On think a we was I'm the ability because to the last it trading we it's at undervalued. quarter, have I said -- XXs now we buyback that thought in was as at the opposed lower trading continue XXs. to undervalued. price stock price

million to I may today the been stock or should have where but be levels. is at have into a turn still these as surprise program $XX left think purchase you should So, we that surprised, it happy in the

was me. other remind Your question

Anna Andreeva

Exit.

Jonathan Johnson

thank exit, On you.

nonhome Adrianne QX. headwinds should We on comment So let of end by think be exit, the the done are. you we what

We will think Adrianne QX, jewelry out may comment it not have exit have an may comment choose percent of what or our largest will Those to and he non-home have categories on on impact. may that. that we watches.

added proves that that slide long as think deck Adrianne -- this long useful, I we'll chooses he to as show it the to continue as time. to that be as

comparable So you Adrianne, is want color. to give nonhome little to you can see to add what that? you more for versus home year-over-year anything

Adrianne Lee

Jonathan yet and our would category come to echo site. just off I biggest is jewelry,

showed So as you're that about want thinking in we into quarter home that consideration here. the the to take I first non-home versus

Anna Andreeva

here one squeeze bit for good in about think have And being And number in And But been may mentioned could so promotional you really Gross little much that what's is? has you Adrianne. business How for you? you still do Got now. Okay. it. margin another you Thank gross to XQ. much. sustainable if specifically for the And worked I a discipline quarters you up of more the so can guys. talk year? you thank rest the well margins of operationally a

Adrianne Lee

earlier, fulfillment the and years to efficiencies that those of projections, target comment and things the We I XX%-ish over from like in say the the operational are improvements sustainable customer on done last will continue our Anna. not that I balance find There And of year improvements noted necessarily right? we've services. two in our care continue kind are range. things won't to the Thanks business.

those to those efficiencies. operational deliver expect continue we and So, find to

Operator

[Operator Instructions] of Thomas Our Davidson. from D.A. comes next Forte question

is open. line Your

Thomas Forte

Great. Thanks question. my for taking

inflation level one So, how for you impacting can on my your question, Thank give you. is high Jonathan, business? XX seconds

Jonathan Johnson

Tom, prices, to driving from impact wallet or to are a the inflation people question. the are I'm customer. great prices one to following their the warehouse It's is the of US to factory with And when real. around, for question and thanks oil gets that sorry, made – and Look, Gas gas cost pinched. real. inputs, to things the everything shipping

pinched. when remained about environments -- budgets XXXX, We are when home my inflationary the XXXX when we under the shoppers, our President go well Overstock of profitable savvy The have back is, take for impact. first that's think began I that's company. XXXX, it a when has do off. to smart That's the looking second well business in downside. turns we done had in think year think we being When real and offer. value. March slowdown, we we That's So, upside into did. people it the And what think inflation

And it's buy So particularly high XX-year say we people when we're good there. people then levels. homes, Inflation they at and homes. real, are I good is a furniture. think we're in that's buying place tough, this, when buy still will because

too. good. remain all So strong that's Home we prices think

Thomas Forte

you, Thank Jonathan.

Operator

our question And of from Bank of Curtis next comes America. Nagle

open. line is Your

Unidentified Analyst

Molinsky Dave It's Hey. [ph] Curt on taking question. Niegel. of Thanks the for

share you maintained remark I a Just in you sir, quarter. that data according referenced, third-party market on the to quick sources share. your mean,

you looks what that? have you're on and it Just your actually sources Thanks. you Can might like seeing end on show our looking end, elaborate at what lost here. please

Jonathan Johnson

that seeing there's maintain what share. lot said market we sources. a of different we And just We're Yes.

tough we are And ours. Ours -- it market. is a footnote

out, But the new score in it's come think when particularly not competitors the I home when important we've what where And what are looking particularly our there. to XX%, decline are note they XX%. slide but that can the report, when you market see those we look Frankly, look at are see this all predict And source space, our was home-only at score where data. added. that's to results we we shows.

you do to add? add So anything to want that's where Dave or Adrian,

Dave Nielsen

add. to nothing No,

Jonathan Johnson

that's hope helpful, Dave. I

Unidentified Analyst

you. Thank

Operator

our Brad And Safalow Research. question PAA come last of from will

line is open. Your

Brad Safalow

my taking really had two. for question. Thanks I

it can kind of vendor to perspective. after of with improve new the then rationalizing consumer from to count messaging on front. of period First, hiring there? expand Can talk two, about, your a achieve you it time, the a let's there's opportunity what the vendor say, you CMO, of renewed And a seems for efforts your like the lot

advertising about change campaign, what done Thank obviously a going without the few you marketing over you. well national to explain plan you forward? can consistent You've years but your last

Jonathan Johnson

as questions. vendors. The about important Vendor I'll for I'll count. bit of SKU one more the little wrap it new first a then market, is count important count. we and let you do Maybe Dave, Brad, in the I'll Vendor talk add vendor. each count vendor Thanks, is up. those

a lot where that we vendors We have their are business growing. underrepresented in we of are

two look there's reported As we number vendor as things remember. the at forward, going to you

more have We of exiting quarter non-home. one

off. of jewelry We They drop a significant and vendors. will have number watch

breadth team hard goals in working to increasing continue home exceed They each goals mentioned. home I -- in the as QX. SKUs. keep those to year. we the And in them I add vendors depth the We the in our merchandising and exceeded quarter and expect space, home for has goals of our of SKUs space and the have

within we It's in well connected industry. months with focused into forward. into one it. less respected space. She's shared take learned on good, in those want, well we very to see you replicate products and the great. best, the categories expanding an the in, think get new breadth where to home more learnings we're we're depth and and better, should we we categories Angela example Mattresses going in grow. you. win So this And mostly, the CMO, some But the is job. very we it's categories we and two need was than of to quarter She's analytical

whether campaign She customers. how You national should be because person can to not. the reach to in a who we called messaging know or improve, that out, our that's expect our

to to advertising add cable that? stations. Dave, and more on just not And sometimes, select want it's the being more direct. It's anything you news

Dave Nielsen

consistent Jonathan, was high Nothing we to exactly on. important spot focused, through that That's with are where add, messaging acquisition rates. channels

Jonathan Johnson

business. participating to I How emphasize on for for So, our Brad, this. call. thanks everyone questions. like thank those today's I'd want to we like

to home. That's cycles, we continue the brand Overstock's resilient model increasing at make. foundational important. and have operating is the operational I business with and aimed advantageous improvements, is economic strategy made our the especially believe Our within association with wetsuit,

We a debt. little with sheet balance strong have

of never dry for in the have share growth Overstock. all favorable are We and our pay a headwinds. position late. to in great you We quickly, bottom Thanks. and profits regardless I strategic a believe your appreciate hope powder opportunities. have deliver we interest to We line macro of market ownership day. partners We

Operator

for conference. you today's concludes This participating. Thank

may disconnect. You now

Beyond (BYON) 28 Apr 222022 Q1 Earnings call transcript