Beyond (BYON) 21 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Adrianne Lee	executive
Marcus Lemonis	executive
David Nielsen	executive
Chandra Holt	executive
Rakesh Patel	analyst
Curtis Nagle	analyst
Seth Sigman	analyst
Steven Forbes	analyst
Jonathan Matuszewski	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to Q4 2023 Beyond Inc. Earnings Conference Call. [Operator Instructions]. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be call recorded. is Please turn over and to would Officer. now Lee, conference to like Financial I Adrianne the Beyond's Administrative Chief Adrianne?

Adrianne Lee

Thank Fourth to XXXX you, and Conference and Earnings Full Year operator. Beyond's Call. morning, Good Quarter welcome

our Executive and on Bed CEO your our Beyond, Holt; responses are & Overstock, of reflect Marcus and Lemonis; to Joining me CEO call Dave Chairman, including, future today XX, Chandra the February of Bath performance, XXXX, may Nielsen. Today's without today, questions discussion limitation, results. of statements, regarding statements. financial differ as view and management's could materially goals, such include profitability and results forward-looking Actual from

Additional information December and in is important results included that about in with our our subsequent XX, could XXXX, filings for other the ended factors potentially Form SEC. impact year financial uncertainties risks, our XX-K and the

we'll call, measures. this discuss certain financial non-GAAP During

including including the Investor additional quarter Our measures non-GAAP Relations SEC, these GAAP most measures. at comparable release our disclosures investors.beyond.com website filings our contain important measures to reconciliations available these on the fourth with of regarding earnings

remarks, management's Chairman, call With questions. Marcus for our turn open over let will me Lemonis. Following up that, the Executive the call we prepared to

Marcus Lemonis

am first here, of and good to Well, XXXX. to earnings opportunity. and this honored the welcome into call I I morning, understand gravity really be Beyond the

affinity a XX our the with growth, and the business differentiated laying and focus material last days, for model an Over customer we have progress made customer. foundation substantial improved retention

will our complex the to items sell Overstock bigger trust, lay for Plus. services turn transactions into realize going Beyond but and more that's Our going & frequency with we time, ability goal Bath a our brand We the and Beyond transaction. it. Positive to is create from a from to ticket trust transaction trust products foundation to commodity will to it Bed create take with simple take and are

announced and a team authority vision management X leaders incentives P&L you that They the and the XX lead are direction aligned value. clear whom bring changes, and full and the management now we on business. Dave of us is days. to I on the company which through to X this shareholders gone leadership know, operations with last that responsibility. many restructure in Yesterday, provide this and As day-to-day change with management drive we've expertise, with brands both a Chandra driving and trust needs and company results skills evolve the position Adrianne,

is You'll and on on today is of amount squarely to of of household. begin their count prepared from of focus be results we you like walls they unlock especially That forward. home, related unbelievable we and addition in need value the to vision, our of That feel both the this around and extending X at property. To their this the low-hanging have to can their going the the information them better in to products forward an services each customers ideas, lands hearing fruit company. inspiration clear centered and X Q&A. One corners vision transformation, communication, thing remarks the our path the providing better

XXX database most of quality variable valuable million improving that conversion down. and that own our database we up We consumers. massive example, brings tangible to is the of with an know records. we Much As database our the delight, my know drives is asset costs over

it going instituting cleansing, to strategy. invest household to profitability, segmentation deduping more by a in we're and However, efficiency improve and efficient

know than last we the revenue have anywhere X% that we inefficient standard and by create this of expense from brought materially next materially modern-day database our The annually, percentage a in subject spend. I implementation company's CRM and that X.X% of simple gold matter to believe conversion reduce will have experts marketing XX both strategy marketing to firms a of over better external a the We database reduce will that now. leading number reduce across months. improve as year,

Beyond us of to this customer a will potential chance have one the drive purpose, giving a will and unlock as value each and lifetime expand we to establish homeowners the relationship. We profitability. for home's both believe growth renters,

core utopian home, our to and create our margins. would core laser value, delivering the where that providing is grow business revenue While the both and services state focus true That AAA better with be is. model, growing lifetime starts affinity the of a products generating and expanding

focus $X in bridge level. rate margin factors of blocks while a shortly. reductions up back sales, believe material the over are through will profitable by the XXXX. by in building achieving primary you run that with that the improving to clear is X rate XXXX. end sequentially run of result going to XX% SG&A a follow a and $X plus increase this to billion all margins walk is Our that that billion achieve and with Those And year-end We coupled the year material period to achieve from team bridge XXXX,

to Before many summary I the asset to provide have requested holders I an wanted the on a call our that short turn noncore XX-company a team, update over on. Medici portfolio.

Pelion addition with in in to in manage economics This management in a portfolio. deal an reminder, exchange upside Medici value. for our and building nurturing As to came annual a partnership fee into company limited XXXX, Draper, these of companies partnership with the them entered Ventures April agreement Utah

believe We're these of communication the I'll unlocks and parties and call good now a wildly Dave. surprise are prospects, of and intend delivering excited increase the to we in there are a that with way companies us. respective could work as been over Pelion modify updates not the think to value as could by performance companies We them, hold singularly few accountable. that we to quarterly. turn all relationship has committed We delight of the a do firmly it be. closer few our overall with While to

David Nielsen

as work toward profitability. year and vision to new Marcus. return is for a a you, we company our XXXX the Thank strategic for groundwork the pivotal lay

We customers, drive of new improve year have websites course and down road and retention customer the launch ultimately over new map of the acquisition. of cost to value-add our a acquire to home-centric services the them

As higher above saw QX. was year. This we and important a build acquired we new this of customers. proof to during and improve as number among a to in strategy, marketing the period evident up holidays, dynamic loyalty our Leading the repeat last point to the same to customers efficiency the compared is work

rate the be businesses home-centric that acquisition and benefit to see true. customer the power of like into, we we bed, may But because and kitchen a our Bath Some portfolio say Beyond Bed repeat as and the may entire see portfolio. categories increased a to of dining, as & leaned for bath, flywheel this

earnings told September relaunch you quarter third of On we that would the Overstock we XXXX. call, in

new team with Finkelstein, Shopify. Our a found to friend, President significantly up way of my best that working Harley pull launch date

which call. more brands XXXX as Adrianne Overstock was to far efficient and marketing outdoor business the other meet items Overstock among shopping customers among we Overstock relaunch roughly each accretive to a relaunch over want, customer the This is for will of planning plan can unit rugs, significant other will where relaunch are drive a in and that begin it the which average potential on categories. years. Pulling the higher lines our way We margins and to furniture, We're product has annually to also the they was once drawn they know is spend retails, in customer the business the overall outline of planning weeks. area later are up targets Overstock drive leverage build you because walks relaunching to for our through we iconic the with our efficiencies. improvement jewelry she margin million patio improve $XXX-plus X immediately to mean business,

As operating we can larger believe profitability to e-commerce with value-added the a more model. revenue services cost brands look we underpinned variable with future, maximize and a multiple layering stream we

have While to work there improve, is a also of happening. lot good a lot we

Bed We that has improvement the a remained since million are November fact improve X encouraged today active We're vendor to to time nearly positive, work year. through and are relations today, first our see thrilled with expectations at we our sitting growth recognizing and customers, revenue few and of to exceeded last over and dining, to bedding, XX% sales begin XXXX. us increase the improve are cookware kitchen the assortment a name merchandising are and with sales working breadth Beyond to depth partners help appliances, & just power to margins. our bath, improved categories fruit. Vendor performance teams in bear of Bath our drive

more XXX than grew During added. partners new new partner our XX% by QX, with additions

under turn we the contracting. partners additional XXXX, as were various stages fact, page XXX more than In of on

done you work appreciate, by incredible is an As there engaged. excited our of and amount being team. They are can

a single goals to unlock transaction. long-term value of a actions We these at internally customers XX average customers, will our aspirational $XXX Xx refer aimed to order Our their or by active Star, connected our as order with is staying with potential our beyond us our annual million increasing help strategic engagement them North and what enable to is believe frequency. achieve we mission It customers the home. vision sales

give welcome team. experienced terrific to we've up, leader a added retail Before wrap I and such professional Chandra. a I With want Chandra. our warm that, to to thrilled I'm

Chandra Holt

Beyond I'm a dominance. unified Thanks, reestablish We Bath I'm to goal omnichannel retailers. in experience customer for that joined It's and about to category commerce. today's because create leader Dave. a passionate seamless my the Beyond more Bed traditional & its Bath to driven I than aim company & be is Bed

excited Director and provide quality the we be as the adjacent introduce to to for seek I our all Beyond first announced Beyond, to textile the Bath build exciting Beyond and a in to partnership influential occasions is offerings, customers female date. Across our suppliers baby with because brands, Bed look frequently Bed customers. for partner a Bath the to Baby [indiscernible] the forward [indiscernible]. Baby Beyond, was creative at tailored [indiscernible] upside through such to At processes leader designers plan are serve weeks, plan coming a and and that to a and & Beyond purchase as set peak, are value and [indiscernible] improve experiences its Creative modernizing ensuring that with will category. another for new In bedding & & know the core Kids & is we powerful cross-shop the also I We will vision specialized about top our later expected be assortments to initiative. and and [indiscernible]. U.S. unprecedented experience, & many we marketing brand

growth to portfolio call opportunities Adrianne. forward now interacting We of the turn robust business community. our brands have us look I ahead the the charge and will with and I over significant leading with positioning and of investment our to

Adrianne Lee

points fourth the new financial team by path by driven X% customers, key shipping in wider Chandra. at XXX customers redemptions period curating forward. driving how to you, in leads margin somewhat was costs quarter, year. for points, quarter XX.X% provide points active Overstock about our revenue declined and on sequentially. our grew is thinking our reviewing increased mix the better trend versus Thank year-over-year and primarily discounting context growth by result and XXX a we landed XX% once in our seen results the measured sales AUR relaunch I'm our leads basis was value December in Improvement XXX in to We reigniting as the X% made, into last and Dave & drove some X% drove Revenue basis going start attracting led we're and year-over-year order was progress up believe There about Bed XX% point focused brand, carrying November assortment due orders. Average educating have through of Increased the $X this year-over-year, them lower about same Beyond old this a continue. categories. drove a we being Bath momentum and billion-plus stealing Rewards Welcome decrease of for and to and about revenue on year assortment. basis and customers, Chandra trend pressure. declined basis are is enticing combined XXX transient site. Gross that growth to

booking and other gross AOV, our product We brands costs, owned December. are that which us costs $X integration our expense and rates, decline more onetime higher year-over-year, negative gross improve inefficient a discounting. The of favorable driven On almost X,XXX complement million [indiscernible] G&A we like basis this with decline million was primarily approximately to product name XX% drive actions loss increase within relaunching of add-ons of by are freight taking warranties profile: pressure. and $XX the the with was discrete million. for associated superior by margin EBITDA eliminating control shipping driven improving providing primarily expense and XX.X%, All renegotiating actions adjusted basis, a margin points an have Overstock.com, was vendor brands believe margin reduction of approximately announced relations assembled will we tech $X in, the a following insurance, item reintroducing in to

to addition gross throughout expenses our In reduce to continue improving we to margins, opportunities focus on the for look P&L.

of half the cost have fully million includes in of We savings, expected annualized incremental of million first to total $XX $XX which identified to million a cost be and the December $XX reductions annualized in This is committed XXXX. of savings.

identify that reinvest dollars a expect with to team's we XX% to cost revenue drive revenue This our gross is and We $X growth. I make billion highlight towards stock and to equity to getting progress have price savings. to to margin to meaningful appreciation executive compensation revised align team as continue growth. these back continue plus goal, it our want incentivizes push to the to it

EPS by net GAAP quarter tax due related $X.XX reported impacted allowance on valuation near-term customer our pressure growing and to establishing file. for primarily the to operating assets loss profitability fourth losses expected deferred our against a Our was of our recent

our loss per impact adjusted we building share of $X.XX. the equity securities, Excluding valuation of and allowance the diluted write-down reported

strategies. we Our we a purchase expected on On ended $XXX of remains On Bath our quarter call, balance Bed & brand to shared spend customer we balance Beyond basis, strong. earnings that sheet year million. subsequent net a and of $XXX the million third cash the acquisition with

products we These that less large products anchor launch. brands invest in quarter, We key are the new Dave to fourth have learnings the fourth expect from million through growing are I mentioned part Dave due quarter. Chandra various will spent under and on the and and about $XXX focused and stages services. our launching of

cost-saving Our well actions are underway. margin and

be with for expect positive far billion to goal in of XXXX. QX the So as as revenue expectations, we $X year-over-year

a We closer the to to for goal margins full expect in with gross the be XX% year range XX%. XX% in QX to

in the second done, Marcus. profitable. to expect turn be to call year to half path And back be forward. our of confident is I'm the We work we'll There now the but

Marcus Lemonis

to into call and before know we and loud clear are our reiterate we expectations standards turn of And Adrianne. hope we are us to you from Q&A, I'd want now to the that what the the Thanks, get from you hear the over I what like ourselves. Q&A.

Operator

[Operator Instructions].

line Raymond the from of comes question of first Our Rick Patel James.

Rakesh Patel

expanded Chandra, low-hanging and roles. that on Adrianne a question to just Dave new just I and Congrats on the had fruit the on. you touched

about -- in Is database Can an little talked event? opportunities XXXX? you a dig here? it database really further see to segmentation. and that is the this we happens gain how to of it should when you start out-year and efficiency initiative traction? And more on So around Or gain something

Marcus Lemonis

you Thank Marcus. the is this So for question.

the I when we the a Beyond made the Bed important understand it the looks me, valuable when first a the and But it. that large like and what For to and acquisition, foremost. look of construct understanding database very quality asset of cleanliness at like, it database, probably & is Bath of And it's database database. of we a large the picked segmentation up understanding

they of of their predictive understand job logic what of historical the from customized in understanding should to don't and speak and and out things, do understanding more back you to relationship things of next house come is, purchases need over forget categories So could that these in of home going And what And we putting right right you that it's yield database, are them spraying directly individual to to some better footage and them. Too are purchases that consumer. customer are or because products home, offer up the do the their better we they we around that XX-month people every their curate rooms my them. address customer to expect improves to their a a end to a with people having either offering opinion, creating they message what property, do opt database in who are, customers the basically business its square the single the period. at time, have. efficiency. or When number feel to like an often, not be, specifically just size the the Today, right that, exhausting when do creating fatigue offer

As Dave task, AOV. The out deduping into XX% we already higher to households, generate company. This be will our mentioned, frequency the of expand primary revenue. our we a we'll X as our to by take the cannot implemented percentage a engaged need that of doing of with now it then them revenue, has X% is CRM. the to process a and in and expectation to is have reason It We've started. And goal increase provider visits the not is within offering done looking to bottom to of [indiscernible]. and leading this is to This addition XX database a meaningful the those spend days, driving a revenue for growing is tomorrow Every take it, of seriously. line, task. costs company north to

rate and brands. we savings the by It's it a when $X is X% as at to $X trimming fact, end look not launch $XXX-plus And million about we other there We it's at about in a be $XX it. inefficiency taking million. reinvesting know be at why run That 'XX, of budget, we marketing that has in that that these billion, could expense. growth. that In believe represents just we billion

a thing. it's So now

Rakesh Patel

curious Are the market $X the it billion Just And Or that as talk we and relative get here? does better goal think your how home for the think about the for you things levers self-help should assuming about macro can assumptions Marcus, to very year? remain this about you you from we can market challenging? product pull?

Marcus Lemonis

those challenging expect the really people underestimating is & Because what to Beyond what power quite this were and entire is market in while was learned to think process the on And candid, buying going products. is that brand But new Bed frankly, win are with able historical by some Overstock them. people that we AOVs headwinds. the Beyond, to operated has items a & a Bath convince big thing, lose types be legacy shutting on And high I a fatal buy to do selling We you with. do mistake. Bed had to we Bath the customer at try we box selling built of business. Overstock.com stay to that the when same you have that the large down

in product their that us customer that growth. don't their They're their ideas while with will historical back new Beyond Bed products talk want ever we'll establish these brand but do establishing in family overall only for the see Overstock new the to and focus ensuring legacy same. to an assortment allows same and on to Beyond.com. collaboration its in new a to allows and & them chart in to tasked to and I they're products, hone of the its is CEOs family not recently and to to it mandate course that the of on & launched only which to vendors their Beyond and In customers, The and manage that P&L, minute, pathways bringing to about own in each Overstock.com database, through acute that Turning its vendors, both company Bath monetize establishing Overstock on its adding services existing allow expand and separate success, and sides. find of the all Bed products, have Bath own by other exists we

Operator

please. moment, One

comes Bank line Nagle Our from next Curtis of of question of the America.

Curtis Nagle

I one, the just into AOV love the target. $XXX guess first would to I dig Marcus,

baby, guess, I I cross-selling How a just is Just is have across that services new I guess, terms second. I'll new kind and from question of Which then in guess, on brands, in of contribution products a pricing that of on curious categories, and contribution promotions? what, like assumed from contribution? follow-up normalizing much

Marcus Lemonis

Yes.

hear because to And heard And are -- AOV. I So separate other I'm that then contribution I around those what question of little top unpack going to the think a that to line? want bit we the right? that right? the Did total I businesses then is a out

Curtis Nagle

Just great. just to a do want factor how would [indiscernible] total those contribution be probably, I AOV, to all the that Yes. things in?

Marcus Lemonis

Yes.

our that job that understand large furnitures, can on be execute to premise kitchens, walls ticket everything that X stay and of aboveground we X website outside to like bath, deliver of a Chandra corners you Clearly, aboveground you really other is furniture things inside, strategy. had at is part of larger customer, because that when and primarily going then outdoor that. When outdoor brand larger look common Overstock outdoor with revenue, brings products we items large at over actually visits outdoor is and and historically focused learned the ticket spas, clear are excelled kitchen the assortments, you like items, look the AOV things items spas, in. really to When need customer of is patio of really Overstock grow services So items furniture the lead delivering the house, that the Bed really better the dining & Bath table And that, Overstock.com time. What the big function frequency trampolines, that going of that that the that the different mix. Overstock and they if property, is lower, Beyond to on it's really, you home process expected driving from overall of going which to frequency is come the around at each we things the furniture. to is inside myopically along to with patio is with bed, have visits

I made the it the is anybody didn't large transition happened look high-AOV intrinsically and down the look & didn't in fall of of Bath mean had that and XXXX can't that to ticket, margin furniture? frankly, at when But if look you things. that & that And could frequency, at what believes high it Bath to that lean Overstock, Beyond Bed shut Bed wasn't Bath you decision to & Beyond the that going that it have company way. attributes, historical Now think the that them believe doesn't consumer sell brand categories a high would And it we was Bed had needed brain, to consumer at happen. known Beyond. into it quite obvious that those And us those historical happen. When you to

Overstock So new at of look Chandra eliminating that you that database. about But our that. fill we Bath first currently particular when and whatever That's the consumer And up distributors know driving be. And is essentially we count, clearly, added Bed team. & may be need Lego that. But having has when getting deliver. Bath proven Bath us at over college, does we is the looking to a created that, that home, to to you Beyond look Bed to to when know then all that world-class building dollars. does customer Bath you at has and gap this life you new events, that buying look We expert decades & billion, adding first When by growing frequency, and $X believe why well, a revenue & and their picking in married, are has better Bed to Overstock that, billion trust she and driving able increasing relatability frankly, here. business than up. heard relationships AOV, & that convert number several The consumer having to are that that to Beyond clearly, and vendors overall going her knows Beyond you're going to how we that to execute core $X cost drive quite getting also margin have Bed baby, adding blocks. But Beyond

Overstock even You heard Adrianne & brand before Bath showed $X.X mention, billion Bed up. a was Beyond

sold they that can't them as categories. I most items. seems played at vendor that for convinced achieve. some plans bedding, other and part, and by giving need relationships are to revenue we incentive their pay it We're up our them telling and both part, businesses for believe you and to can at that there driven off-price achieve. believe we tools the some true But but it so responsibility, grow drive roles, in. categories that household full sold plans, today is the P&L most it Now sold Overstock gap a giving some we bedding can these everybody splitting was look the bedding, will look the resources the for we our signed you companies be that improving that program stock some

the taking know it deliver. In our spite to And we As intention a grab signed historical what the RSUs of aggressively for still believe going run returning taking be is operating going a we're if full share. by still a year we've the -- be was just model was, on quarters you to the market We loss. P&L rate headwinds, at can profitability end X where the we to opposed are what management and of XXXX firmly was regardless outcome look to of bonuses we first the all up the for the on year, moderate at to program that plan basis.

materially The it were to to told no to not brand. obvious first Dave Overstock was and reengage but We million company Adrianne will to confident way we take that launching to to no the and going bullet to silver reignite was to we but expect we we we on Overstock, the customers that myself prior in that believe $XXX we're fall, going as basis, database mind, was ready this continued we simple as going continue to up that spend last launch happen. Keep that with that you Chandra the that's that, to statistic build get that $XXX frankly, quite as us, coming quarter, was there we way, committed know obvious million. improve others. a

Curtis Nagle

the a was bit a then just That angle. And follow-up comprehensive. of on services really

purchases see so businesses. driving couple your services either you a you've that got look you So at just where you've more talked or business new things trust, And intent guess, of in, playing Mortgages, not I home do right? I got a -- lot soon. coming about is you're require, that side,

would I of those billion these start you into are think how run of they'll get when rate, do eventually just longer terms plan see dated? the you kind things And revenue? I integrating? do contributing things In to to assume Or guess, $X

Marcus Lemonis

of all customer renter. fact lot I you I've lessons in for the hard set X a so understand because we And have that be really of build wallet have home. homeowners will truly build is by to services a one, them been business. achieved. around the property, clear I I lessons peddler this have to Their nice years, important Look, to of business reduced XXX% home. have one SG&A. But immense of that amount of and value we and from once assets. AAA experience. We reduce properly I about this them time and don't refinancing that and turn their they in that trust joined We with established product whether customer to and services be the trust confident that the the of innovative use, public the any corners margin, you cash-out is the into. me appreciation understand not lives the that improve expectations a wants CEO be that warranties. as need, just products or products asset value to of to that now delivering those margins unlock and know company improves they lack join to and that to their which the nice, world-class accessing We to could homeowner company home buying their will flashing thing. most returns, delivery done let by home, this one on what I I ultimately we on setting have our need. the and focus been while of businesses that inside service, learned we able X cashing need of do with want know in is not out a of everybody time, penetrate -- who have us can that's a they home I and they the they am be need those yes, need words be other enthusiasm, improved did know they revenue you it we And out about for, or with that or core We have, Internet. solutions provide to company in We We this time into break. that money with them. reinvest an Things refine products new home. delivering it people over selling pull of to company that's them need installation have one know know work investors that products with some improves we And what transformed confused I want their

reinvest the asset to the of that need HELOC actually a fulfill decorate, that is expansion. grab of to idea program, renovation buying ability it. But to know in consumer the made or they that offering I as confidently appreciated we balance products to reinvest clear, rewards portion that that program let's of that as merge Our $XX,XXX that give and to purely from be the cash we the expect in consumer a to or or the year it year achieving metrics I we other improvement improve revenue time. next profitability have -- end any card we expectations we we those today have that you launched the will as established over the these by standard have any after. home outlined that of build relates program, credit for finer profit products, we and loans of not including brand contribution not

Our is you job on delight that it's of penetration with when to complexity the update size and a will give and the on and of surprise we those, established we believe level materiality. an our

Operator

One moment, please.

line question Seth of Our the comes from next of Barclays. Sigman

Seth Sigman

team And today? is use do question strategy, around used main a What perspective? My they Bed pricing Bath, that think be as the proposition? that about now ensure pricing all about Smart from perspective. ultimately, the right in philosophy roles. actually new right and to the past the how competitive Overstock the How mean? to from type that you And a the the term more on you're I all value guess was does feel price that you was doing should work marketplace Value. the in positioned executed? to Congrats How what's of

David Nielsen

back opportunity. as overruns, think Seth. necessarily from XXXX, -- want Overstock, going that directs, about mentioned, not Bed when will of equation, Overstock you over about Overstock as era XXXX, get where speak about Marcus our Beyond. want But was don't think Overstock I on you you that Chandra. as into tell Value to hand XXXX. as I'm Think circa & it think products you to can Thanks, you and liquidation. surplus about Smart to I goods. Don't then that to us us surplus; to side the think Overstock about the factory XXXX, it find I Think of circa us I'll Bath

We will have different assortments on both product categories.

website. or always health more on Overstock for a need beauty our home after the nobody we've a especially orders ever amount opportunity there's amount among will is ever suppliers, overrun been what and this perfect an that is market. need for Nobody just There's perfect to or competitively. sofas in than and through. orders We furnishings always There of the products. There here need. just price there an of that this have the But gone the

way treasure a that money customer who for higher has that Overstock I made is the saving household -- you us, that is a something have They important income hunt. and for was the can make the Bed for Bath average a really Several think with lot Overstock high the They a what to to remember. They sold them. deal, diamond these $XXX,XXX we see will Chandra? customers high Overstock been There primarily years. has want on think that, on order just in sizes, rings for the you is looking brand love they furniture hunt. that Overstock. So you when everybody experience. money. of about customer. that that's that's they wasn't spend We've think at over past. When quality how are The to well, money It customer they income by average drive and a of thrill built They shopping that in of, that love value. And capable. love & of Overstock can't. and This Beyond

Chandra Holt

Beyond is Yes. Bath & pretty straightforward. Bed pricing

So competitive and coupons And market. our customers we love competitors try in be space discounts. the then with the in main our to

levers to so the where And business use appropriate. those drive we

Seth Sigman

categories then seeing seen just the business, And recent you've now? the the What the improvement? some working right of curious, the Okay. about I'm with customers, themes, can that is maybe inflection in you're that of talk you types

David Nielsen

Yes.

or kitchen dining, area For & what's tabletop, name in this in furniture of & all it. -- like improvement, home President's going bath, important of just now Bath happening lion is Beyond, really, rugs Day. cookware, us, really core We'll share us. for Labor and These the you Beyond. Day again, right power Bed Bed And bedding, spikes the -- what's categories are see it's and the categories happening with Bath recent

what you Overstock. It as will tell I with same average at isn't get would However, order size the you.

as a We have running now. right sub-domain Overstock

now, assortment some a customers just higher see we Bed XX,XXX them And that Overstock, Overstock. strategy. There you it's there this than margin pricing on & to you launch often got they're on We average see which Right is in what to it, is there. cold until a plus on opportunity order it. love & the we same because with you'll We size $XX Overstock clicking had started. and They a can Overstock. product categories an as wanted Beyond. phones click they're love frequency. If keying spoke love We on the day Beyond, were for higher just we on Bed let Marcus and AOV. that's keyboards it's so placeholder didn't on how them give go their higher Bath The us we their cell and the But buying. a frequency place drive back, a to coming in Bath

Marcus Lemonis

that Dave the one over vendors I'll million, that & road, thing excess Beyond we in definitely year. and you months hit as the tell other $XXX was that have Bath in Bath brands a when days, last historical brands what believe million in studied like we of abandoning had certain Bed couple intently, solid million, it of $XXX with learned large the a relationship And of $XXX Cuisinart, a established recognition & really Beyond mistakes the their we Newell final made Bed marketplace. and and brand number I,

said Dyson world-class recognizable perfect it with Beyond, you And to consumers ways & vacuums the any And is good brands to when part name that those need customer like and a brands that balance brands expansion you to when it. that's margin in was came somebody to done in The to the that sheets. you this find are give and from actually a to you those brands We a thought think need fine idea globally business very well weaving I to for the dominated the a expect Bed the business, to balance reason, CEO somebody understand. between have see went like [indiscernible] retailer of And understanding that balance. you Bath credible that own to some hit profitability. But to that the started need company expected levels for find a gives doesn't looking that Board, has I to we hire this.

blessed out And so the Bath. we went be Chandra's caliber when to at CEO of and someone find Bed were to

Bed with prior people bringing her was and not her world-class in is in have of to how me, I you with, thing. worked her really have channel to those overall If companies said & underpin the as That relationships as of the it with. That executed, it previous bit. that relationships piece just was business no foundational that feeling understanding. a a through Does simple or the like And X many expand Chandra stores idea understanding have vendors to mentioned a post, she but labels look I little understand she that. pedestal she check did I X a on is that because back at to people to margin. that importance Bath to was her tell every support then the the Beyond have as as does again. those had on just here clear prop brands only omnichannel is can. that all I on of previous not going how gating at principle private or for retail times candidate the I'd putting an I me will to a today. you I has this experience being it Chandra up up creating sit had you experience.

Chandra Holt

Bath there's dining. a both killer e-commerce space been shop, white in for bed, our come that category now, serve want there's an we to how in, bath, dominant. kitchen & categories look think in within Bed Right The brick-and-mortar, them we multiple customers Beyond at to always we and Yes. And -- opportunity ways. to when has

is brick-and-mortar some table. So Right right on think e-commerce standpoint. now, an we But from now, presence? them look at everything we're serving should the I

Marcus Lemonis

Yes.

currently profitability time we we around there in have debt of level Every about sort our relatively will dollar that of building the no about the and made clear think the CapEx that be than dollar of any selling. that frames investments be no sitting and This is have last a me we that. kind a cash process as material in with sustained. bank, of until reestablished Let other of meaningful amount is company we're

license really have if internationally, brand in those. I there to today want an be And Mexico, like explore already opportunity is we somebody clear. will to the to we

will this going is stores that light opening things to and all stores start that in to and I We I want those around Beyond business. the that how of just think thinking Bed inbound we In build or potential this call open want expect opportunities brand-centric heading & open somebody things. But shop-in-shop to to partnerships, call next leave of are limiting it. week next we're that on would here to fact, next We're growth are people even want week Dave that That Bath explore is to Dubai we not from the CapEx to tomorrow, UAE. But runway. up over year. an don't anybody we the don't wants

a acquisitions variety of companies other or other including integrate lots can We ideas things. or maybe Bed of a more are Bath open to of

Operator

Our from line the comes of question of Forbes Guggenheim. next Steven

Steven Forbes

behavior given improving between the you we mix differences earlier Marcus, segmentation worth the goals -- on of of mentioned are any ramp that orders orders the have But And among update Any in help working for learnings repeat customer obviously, the groups year. revenue around the customer XQ sort highlighting? data. those is the and I realize on can groups contextualize? that

David Nielsen

quarter talked Bed about Bath also call, Beyond, & third who the we had the new. earnings Overstock TAM & Bath legacy customers purchased on customers, Steven, on and On Overstock which purchased Bed Beyond and legacy the were customers then

relatively all X performance among the fourth quarter, groups. For similar

TAM with, bit the the carried third brands. improvement segment to to major from for where little part, Bath time among reestablish do repeat get having the categories. a I mentioned, quarter. to these function. The Bed our on Bath Chandra customers with & people and lot of collaborations I that touching took some Bed by customer price back next quarter as with of getting & & it quarter, little the a lean and repeat Overstock the into some categories But a those area Beyond in and first But into was have some to taking it unique that the we a world-class it's that brands to in to those higher the momentum, point us more what had something maybe that's fact, stayed the Beyond. And on customer those Beyond world-class Bed seen where those and where brings the in the Marcus fourth frequency In businesses, higher Bath we've website mentioned, and fourth and of brands, believe, running of I And we level, in on powerhouse quarter, rugs. with these up key on most had customer, unique on even here they do, about as just right is were a willingness in a bit those new furniture what is

Marcus Lemonis

and had really reaction think Overstock I and I is mean, Trying something marketing, invited to with on a daily moved. a not short-term cost then $XXX,XXX no it that just challenge infinite what intuitively revenue, to And forward. buy a as coming to an when you Overstock with finding asking up spend gone. and we mistake. We and people seeing the I popped anything. of the a so business basis, because from Entirely know believe came and word business literally the It's sub-domain that, was Look, party why got which to Dave the need you that no quickly out pivoted think shareholders' tighten gone. that were prohibitive. and And they $XXX,XXX, get the was hard the we is correct the wrong cash billion they credibility a amount have was and we on I we've customer website to who our so being that is we a to $X like that when hit don't address. website, to that is Overstock is lost site to path that

Steven Forbes

confirm full just of months? that improvement expense I quarter line? the I clarification, you by you more improve year. Marcus. the or we about year XX XX that to rate then what that, think to run sort And XXX over that's that base mean? a the the it marketing is the next ratio per XXXX what's should quick points first, sort believe can a And basis follow-up, fourth Is of the XX you stated just to guess, goal of

Marcus Lemonis

first XX% of cost of exclusively cannot be finite marketing to with vendors money a started better show and Yes. X% of a billion us as I revenue, over expense material talking about as getting dollars. money marketing nor when we $X to company is on statements the that of percentage was it XX% up its the at billion, afford percentage expense. The This financial business. goal that When That down leaning mitigate a you're I vendors a $X spend should time. have XX% XXXX, looking to revenue. a And need have a for amount

just So we have true right. are margins I That's better let's don't on, drive supporting And form marketing. more and experience more. of people a think are too and more and the things that often customer when go focused

also You retain need built. to you've what

of we when that of XX.X% getting year, more this goal as with and getting about to below, at X.X% would to database would is below that overall and spend it to customers that at of So by efficient our X% be drive the database pathway to our and number being then look drive to our XX% the XX%. that XX% marketing efficiency customers looking part smarter XX%, the retention we relationships our our a mean that. or drop to that with Improving to

cut? you usually secret budget. of we out. which that to do where the no possible, $XX not the For those $XX in question is, of people $XX you believe that that And the million there's expense or cut it's that reason million, sauce have million couldn't marketing is out million devil believe $XX details. this The We figure is

Operator

Our of Matuszewski of the Jonathan next question comes line from Jefferies.

Jonathan Matuszewski

you little XXXX first question bullet. And could $X Great. I is you think sales Marcus, as Chandra. just the silver if the Overstock.com My down to Maybe break the welcome described goal. on team, billion. a the that bit,

see XQ you after Overstock.com to launch? how just So contributing the XXXX much curious

Marcus Lemonis

this reporting read why time, Bed that billion. our ability get in At earnings. came Thanks, asked And I to out I & we shortly not I suppose Bath Beyond or why last understand and Yes. questioned your Jonathan. released evening note you our could after separate segments. you are moment to $X Overstock

calendar billion. $X.X Beyond to business at them in from believe -- approximately literally report materiality from layer name Overstock were August when went standpoint, become, year XXXX. & fall, number the changed if that of will the website is happened & in the you of early -- XXXX XXXX separately. But blue, into the that And that we just of expect moment literally revenue Bath did We not the Beyond's financials will you look a Bed the Bath of what because early that when late we Bed the at for What red until it. summer, we

only sent people, think away Overstock not I you You customers. confuse but

even clear Beyond way is you or Bath team core think from the X August Bed quite XX it & Overstock through us of asked January you and then to if that, that the business took December the that confidence historical the annualize took So some categories, and business through what a I've segment path. you then and that about gives that's the was today, frankly, XX you take billion $X out and that through July annualize crossover is

be Let Baby adding the that's science things is fill. billion me Overstock just But gap reporting, the to did as lay There's a that, use because fill. in going we the that & air out. silver to I track to and this SEC other wild information tell add there's know few gap bullet historical about and not able reason also Beyond how But The be. can that is we a as also is swag. down. you said finger And I to It ancillary that. we some that wasn't contribute good to to to $X that of broken are

Jonathan Matuszewski

helpful going you a and on closely -- flow kind the very just about of Yes. cash follow-up more some I comments with forward quick color. Pelion working That's Marcus, think -- closely made some And color statement. question. just

of proceeds. block chain asset cryptocurrency sales think a or million I $XX you guys proceeds had from

and there path what's ahead detail more Just 'XX? for the

Marcus Lemonis

the I'm P&L that she or a for dollar some very a on in and nature, manage her management fee, a item noncore asset. wasn't value relationship. I cash of unlocking it's portfolio I things reason, take portion have to that she'll of of very monthly the wants of at let look address And whether to seriously I a that manage take through but when Yes, Pelion that a Adrianne seriously. the bitcoin, a how building And I me every going assets. And company. leaves the this go couldn't basis, XXXX, this company, decided that line it even handle see

up not expect ventures doing, have quite to sign when help had assets. And getting I somebody is what the for shareholders happening I to ideas our I companies. I've in number results they results corporate to frankly, to make pleasure of other driving. a that stand a those understanding the And what about been bank them to with some more anybody elected have I manage local fund a and, had companies the in pleased those partnership what's business, left pay portfolio have phone call. importantly, But way one-on-one will of of fee, account that been what when has with we've dialogue of money of XX leaders what speaking a invested their they're manage I they're and portfolio that and sorts So with and communication.

it in then to going just going over that it. But things level our And of Pelion so with no time. are to improving businesses assess work we're redoing have that that indictment the meets is an options those all a portfolio. on And way we what standards, those on inside at X if X of things to we're aren't going improve in

proprietors. we over them. control have to tell where don't are with or previous the bridge. under that we stake anybody X the what They do and water made the investment years, controlling you fact, a could don't We In whether had agree been disagree it's

its out grow bolt-on understand investment I in business our Adrianne? by that job of cash core inside core cash one fits that business either naturally of business weaponize then and investment. it maximize to that to investing company that Our investment, value or how figure of into what another acquiring is. have and this the that the turn goal: monetize value is to

Adrianne Lee

for question on Jonathan, the cash. Yes, happy to. thanks

at just we're looking me and way. nonperforming monetize a if frame looking bit. an our Obviously, balance at a meaningful in Let particularly to that and sheet always up assets opportunity there's

seeing you're Bitcoin. bitcoin, in here was to item all of decision our our the our quarter So the some sell of fourth actually

have we holdings. did a So

well. that as a have those mentioned up that sell in was where to in do payment our we're currencies. there -- accepted company corporate cryptocurrency I'll pending have Marcus Lake asset sale, Salt monetize say, and we headquarters If history and as addition, recall, you we in looking point to we decided here City, our for

Marcus Lemonis

And million would That Adrianne meet the money needs is to cetera, and this one the X yet other to on a come million our transacted expanding more year. brands, in like doesn't the cetera. building carry desks offer we Dave $X other offers on invest et database, middle technology, received so that and have computers. waiting to on, far. be just this on or standards parking as much by cost That way and offer to in of about in, just than move and reinvested it et as to is building but I we're expect we're few goal it that's The the willing $X.X we

Operator

that questions to is I'd call today. for And turn time any like Marcus remarks. for our closing Lemonis the to back over

Marcus Lemonis

excited couldn't has to been operations. manage assembled I so you that team here day-to-day the be the more Thank about much.

that pleasure a me, mentality that tactic our employees of to drive those serving hard not at time will outcome very we a on know thing charging was of today's and influence that I very, the our different our results. the is call around shareholders. One over For use of you mentioned

like could financially expect around of and to singularly whole to tied be react or of don't a influencers bring influencers over. linear content business Consumers motivated buying closer performance. the new you being days We customers the the ads of be things and involved just will influencers us. really that use are and buying and idea not to to by just The host TV A variability information results. in ideas to our but

joining but of we few and that them adding not We confident believe and be are on Chandra are Dave only them resources going one. are I'm us their to going well. next for you to as the we forward look the on be on adding seeing of announcing the to to cusp a pool, Thanks our additional to that and care. Take army call,

Operator

you. today's this you Thank participating. all conclude gentlemen, Ladies conference. and Thank does for

a Have disconnect. day. may You now great

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