MWK - Earnings call transcript Q4 2020

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Operator

Thank you for standing by and welcome to the Mohawk Group Holdings Inc. Quarter Four Earnings Report Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I'd now like to hand the conference over to your speaker today, Mr. Investor of Director Grozovsky, Relations. Ilya Please go ahead.

Ilya Grozovsky

Mohawk's certain Outgoing for quarter statements on are Investor XXXX you differ that today forward-looking place Sarig, not will Incoming and Hamaide, Chief business. make of joining these like Rodriguez, A Relations and call statements on presentation press you on to results reliance judgment us fourth Mohawk's materially Co-Founder release undue of our we in this mohawkgp.com. expectations Fabrice I and of Mohawk's discuss based Accordingly, Financial to CEO Financial only a earnings forward-looking our the forward-looking at would you may website remind Yaniv current and Officer statements. these actual Arturo as and number should today are Thank statements from affecting Chief and copy results. today's of Officer. today's On available reflect Mohawk's analysis is section factors

For not call filings alter in or with conference the that regarding included our a otherwise. with to statements and uncertainties to refer obligation this statements new release in events future whether of as information, forward-looking of associated as We as do discussion fourth statements quarter or forward-looking be made webcast, well to undertake more the forward-looking we any the is you disclaimer risks earnings and our these any SEC. update a result thorough

Yaniv. I earlier certain found that, will the Explanation these be of refer With In in over the addition, call call. the filed release metrics company non-GAAP to turn metrics this to on may earnings can today.

Yaniv Sarig

a first course of call acknowledge I'd start year this of minute COVID-XX team's our of the through was company challenging year. by afternoon, like Thanks perseverance was full the Ilya it marked global by good very pandemic. everyone. a to the and and XXXX our to taking strategy

eCommerce, and more it XX% our challenges. was with strong disruption, resurgence, a grew year chain the year-over-year. pandemic supply difficulties pandemic to led for the work Despite significant severe not revenue for the While a net we without need the

the full profitable EBITDA this expected first basis, We've had we investment despite the a growth. eCommerce were on strategy time, leading long our We profitability our earlier adjusted year brands. we and accelerated acquired term and also achieved than M&A five for in

our there expansion. setting We regained refined international also our and

over our my we record Finally, launched new have XXX investment of last total In our one products a XX, We assets strongest made over December cultural M&A communications expanded to strategy. company, skew few with of our I've to of stability. and the thanks skews, XX clear our now the XXXX. the of count as X,XXX that it community,

well as ecosystem given seen capital team I in of build consolidation really platform a an We've the XXX the fresh CPG take continuing into that market industry future, As industry supply experience effort. consolidate M&A. to $X the consolidation, well role early of and to CPG accelerate brand chain leading for companies the stage technology our events injected made as billion we've is positioned discussed is this vis-à-vis, online platform. the online The through fastest over in looking to the

happy that we Looking transactions, business with few back am integrate the acquired. of M&A I the at our very ability last assets our to

and expertise with that adjusted total eCommerce the Since asset XXXX, the businesses integrate respectively. year of XX-month to as and every we and in more continue EBITDA added We reap of eCommerce start we've acquire a trailing efficiently. faster and we $XX.X in invest million $XX.X of of infrastructure the million benefit revenue

transactions been years financial has of of M&A execute who from and of billion. will and very Fabrice and has looking assets in We're strategic super him that of vision forward. also has going the with in of at mind, The an at CPG aggregate aggregate that experiencing, instrumental strategy important on force excited be has as third-party million as reporting growth CFO, Amazon in role all meaning company. an and robust. pipeline deals Risico, GMV This $XXX and over CFO Counsel million last set excited we're we're industry. an new businesses call $XXX annualized that sellers Fabrice's Hamaide Mohawk's a some to The of with me. of driving net our working will our of global we're the Development our Joe to M&A revenue closely currently see an his to architect that General leader it's platform been our significant Fabrice execution am recent investments Head drive role $XX put approximately Our are with currently Corporate the I'll unabated universe the in and an start Recently, EBITDA. to us in Europe directly help to I that adjusted in With changes the of the comes share emerge several General Counsel. we're as organization and making driving looking

the years enterprise. mission remarkable I back X.X am He Mohawk, my of work has I'm dominant every printing strong in As excellence his already to the UK. becoming the of pleased announce integrity. European he supply Arturo about honored companies brand some more with sense global at Rodriguez M&A has as have press as by in Fabrice earlier love This CFO. transaction we we our therefore PaperDirect a and described to our our persist. has off extremely Arturo release More challenges a based within and secured Arturo today, first I ethic a in side new exhibited

M&A role new together and his Fabrice for important an will his XX companies. like role over available our M&A putting multiple years to immediately alongside in General and Arturo our Officer has day for effective am this Fabrice of to the strategy since clinically Counsel, Fabrice course America. thrilled is a growth promoted other and in to driver with to Joe with worked Auturo supported Risico of at story, us. Of I'd help Legal I function note each also Chief closely been of and With have to blend such skill across that one announce be our has Head strong transition. Development North Corporate forefront Joe that

the and and prior Law draw Corporate to group and and has his Young potential the while XM with roles companies. of future Before on Citigroup, am School. through very Ernst we roles and in [indiscernible] attending an & legal career experiences also in more Goldman the deal Though operative our M&A way. its associate business as at at confident other earlier at and various stage our Venture, corporate and a Sachs I he obtained he Joe Columbia of more [indiscernible] department strategy CPO, working in M&A leading which strategy

team. to opportunity in our to Sascha welcome joined Marketing our Sascha take this this Finally also January year as Lewis to want I us new Chief Officer.

Sascha Mohawk, Flavorpill, the experiential to joining and he CEO and publisher marketing sold XXXX. which was a of Bustle agency, Co-Founder in Before Media

I our our to community role, to massive audiences marketing looking larger will to I think to brand worldwide. he entrepreneurial communicate and our already of corporate as get forward this the team. strong In investment our am strategy. Sascha consumer evaluation we drive and the vision firepower storytelling consumers brings reaching more and

more this and for be with turn better think a holds work landmark way over year drive start to we details the that year fourth the as our make of it and continued to Fabrice amazed hard With XXXX to I for I'll our enthusiasm to quarter. company. a for team that, on

Fabrice Hamaide

and good Yaniv Thanks afternoon, everyone.

fourth our performance Here of are the operational quarter. details

fourth fourth direct from new products. revenue suffered primarily second in million launched sustained expansions sales quarter. increased volume year-over-year and XX.X% estimate the in product revenue of in increase higher inventory product PPE ago The as quarter carry from million. ago Gross $XX.X We million as products of increased in net pricing own in products. mix, driven XXXX. in we cleaned inventory This a the up XXXX, year balance. For which products by quarter as by to decreased launched from was including quarter, the some margin normal XX.X% as sales from liquidated the The shortages new sales, $XX.X and improvement XX.X% our sustained to percentage wholesale margin we plus the much PPE while gross gross portfolio our being the an our which of products just net mix in million $X.X against which half from vendors XXXX, of of our both attributable quarter to lower The decrease year pursuant of gain of favorable in margin to quarter-over-quarter recently was well be due gross pricing vertical levels. competing higher impact sales Wholesale partially net acquired strong of $X $X.X margin. approximately to offset to QX XX.X% and by revenue contributed products historical to acquired for we million was products M&A,

impact, distribution given carrier higher cost impacted again by negatively mile and which quarter. the ship the last drove sales in fulfillment Additionally, in was tightness

improved Our overall the which of mix QX by factors, improved was improvement prior compared result was X.X%. product product a year, coming business in XXXX XXXX contribution of profitability the $X.X unit negative million driven result from to our changes CM million in our in expense year-over-year margin as previously of quarter loss Adjusted the products significantly and This that mentioned adjusted continued coming from which growth of EBITDA, excludes was existing our which and and with XX.X%. automation leverage, of improved economics. our from mix the our compensation sustained pricing the value and operating related which inventory and business warrant fair in the and market liabilities EBITDA of earn-out in mix benefits unit to stock-based which economics shorts fourth quarter a of in our fourth new both had of improvements we our highlighted for $X.X to combined products the fixed from XXXX model from a launches, XX.X%

approximately working $XX net is sheet at XXXX, with the XXXX. decrease other in Smash activities. driven million Turning financing issuance This stems $XX.X $XX.X million in and buildup. from cash capital decrease result as operations XX, to at compared used sequential the of inventory end by operations primarily cash a of by million in million we XX, used quarter in offset planned had cash December previous cash the September of debt $X.X a from to seasonal as balance in compared million the $XX.X The acquisition

some products products New into in and -- launched we the the XXXX. in of new slipped products of products first XXXX, quarter five terms new fourth quarter

its quarter. revenue is our in going quarter, profitability strength. of and forward to And XX To expect it going to the the to conclude the over to items. going new show the am growing to launch continues We improve turn products discuss to I Artie the XX platform key model fast, to takeaways current continues to

Arturo Rodriguez

unaudited Direct that it Mohawk term revenue its binding to Based EBITDA Thank XXXX, acquire XX-month The and you. Paper are million December acquisitions come in to Fabrice. first and trailing by our to of $X of transaction XX, respectively. international expected in sheet adjusted Photo in the is announced $XX specialized April. the The many printing future. as close a UK, supply today mid category. signed marks million

additional senior million annual the Paper lender. reflecting XXXX three-year to now million basis an December guidance, to February also revolving addition to as XXX to of totaling million secured note, expects senior Photo and this note company closing the XXXX determined to close refinance secured the April. payable of and credit from in lender a the to debt connection secured up The in of today quarterly an in announced cash senior our of million $XXX net which company of rate has the the secured note and all be intend million current of half XX% includes issue existing XX-year maturity. note institutional our We secured outstanding, a with facility Direct. refinancing our $XX.X revenue we $XX the The the full-year from million $XXX with In interest today XXXX to note at XX-year warrants the refinancing $XXX million will range to revenue be expect $XXX first with

million XXXX, of the million For guidance, $XX EBITDA to company in up $XX million. now $XX million full-year adjusted $XX EBITDA be the the adjusted range from to to expects

call members to are Finally, vested tax of of SEC and want be turn the the employee to vesting we've of operator executive team Mohawk fully some stocks, be done will questions. of liabilities filings plan XXbX-X disclosing scheduled as implemented the with back we management associated I'll This will With open that mention their certain I and that, shares. primarily primarily the the need will anticipating assessed stock made. by for with the part it to sales

Operator

from first from Your ask question of the line instructions] comes Oppenheimer. question. [Operator Brian Please your [ph]

Unidentified Analyst

Nice Congratulations in year. afternoon. Good appointments organization. the to nice new quarter, all the

So here, thought release that potential you the through I'd in first at off regard the signed there I've million, I called this LOI to any run within a that $XXX few questions acquisition press out point? with targets are

Yaniv Sarig

the they The answer is some nonbinding to obviously all put in of the this diligence due NOIs to is get to are yes, subject binding there got those to efforts already but line, office. although not finish diligence place and are pipeline the part and that we as all

Unidentified Analyst

particularly regard top guidance it's on to it question it Got like the and the with have, this looks the line. and second I

of So so where you're this today you am that updated help to the assuming guidance not to correct? that? year understand you growth implies behind within XXX, of the you. the assumptions did key us XXX, substantial maybe acquisitions sure clear Also further I are XXX the the XXX want that make XXX, I just Can of

Yaniv Sarig

Artie answer that I'll let one?

Arturo Rodriguez

CME closed February. that we and of December at includes closed end end of guidance obviously Smash at the there, the we The Solution

acquisition EBITDA. December. have which in revenue So we do Photo is basis net those only an $X that Direct, from said in The we million included $XX and in annual about items are adjusted update million we on the

Unidentified Analyst

what of of have assumptions So key revenue here drivers in Artie, the of been have there my just was the real guess key first that expected are part some goods besides yeah question what and the I or XXXX? growth the

Arturo Rodriguez

the products well here, jump again drivers are or Brian, in no, is the driving Those are business that main that, acquired. brands or there sustained that that launch looking continue to and core our are currently are we the model I of new additional any growth out our of think that sense. in own just there with the that include put I can as doesn’t either launched guidance to as through if really pipeline we if the forces it of like anything products the makes M&A

Unidentified Analyst

still then cost year-on-year quarter, want that value, sure net guess transportation questions, upon we How about to into think couple QX. want somewhat talked of prepared is and sounds the you heard particularly Them rate I of think ask one this push I and regard to there diminished of that we the you're nicely in in makes I about I dynamic but should am QX transportation I you category sure, to fourth we that the just in that more pressure Fabrice but think QX up 'XX? but increase that costs, to it over, turn as your with like I'll going the margin, comments it should you there look weighed some I contribution at stain from and the one margin in make how say contribution

Fabrice Hamaide

QX mean you increase that I all in on which as on carriers, every as the right. actually and of Christmas rates increase have Amazon of the so productions local right the in Yes, actually all an right, applies FPSI the season always year because shipping it's seasonal happened to well it's shipping

a products which have on advantage, have FBM we on from the do have linked sequential always changes going the we we Amazon to than site. is perspective. versus drop a you're the QX, shipping mix case FBM we to on cost that have and and this product more have it's QX advantage, that also QX Amazon So fact if in the On not

all can have Artie a the again, you you'll pick that The that basis? go-forward up time. ship on maybe question So

Arturo Rodriguez

will Yes thanks Fabrice, and there little yeah in pressure QX. be QX a bit of

think and guidance pressure right, go I the there. there is into in updated it's think Mohawk it's that see phenomenon our get that feeling summer we see We as to pressure continue less we'll and -- but global and kind months, been away thing, that on away a we'll our and not everyone just guidance the that's of profitability. the factored

Operator

Your next ROTH Koranda from the from question of the line comes Capital Partners. from line Matt

line Your open. now is

Matt Koranda

pipeline just the versus late sort pipeline pipeline the the versus be you out go, the some answered percentage stage you under wanted of earlier know that LOI stage partially what but a of on question tires? Just of I is bit kicking Maybe on stage? delineated, for understand of to you we sure could just bracket us early it guys so just o how is can the

Yaniv Sarig

but give we'll many how into are we're at, parallel lot wanted mentioned, do NOI. At working I the on looking of now. to a this don’t that details of many we just point, just leave at a them necessarily too as how Yeah, in on but sense we go much of it for deals already

Matt Koranda

Okay I basically know that's guess a understand, was the I the of part? under you’ve put guess fair pipeline? maybe threshold question it's the though more question the answer gist I into just of that to to in what what's NOI hard because

Yaniv Sarig

and means give that's even to Amy threshold analytics see which market company under would the the our about that and make that it he diligence to question. pipeline by use get where layer that data great layers very into Amy what works all the pipeline. it we diligence a first literally it's to we it core getting LOI really use if The before right. the the That's is even is and We where us process understand without NDA and the we see quickly can company of This is the have right, the and get to hitting them data. the we even even way one the ask of what that internal metrics us tells several

pipeline in described a lead a look. from external modes is aspect the deeper perspective good another for the to enough us we an sales we have that and have on the what So on is

Matt Koranda

Okay.

clear seems of into it's a different So just And already guidance the maybe bit then contributions like angle, I to maybe not but be little of it from the the do we're so XXXX acquisition, talk about fully definitely sort we're having maybe that Maybe of probably fully there, core guidance $XX EBITDA. to and embedded $X attacking midpoint just the raising get well raise, in the the a just at pipeline there obviously business, factoring hurdle just in million I be but we're doing Photo on of seeing we're math going implies it's not assumptions okay. thinking some the acquisition why you're headwind. that or by to it terms to fully we the we're that factoring year the can revenue them guidance the EBITDA, and understand on be if revenue understand going Paper, so it's million exactly the in a

Fabrice Hamaide

me Yeah at it, mentioned to be one. usually let the that's a we're Artie more in you but stab maybe going and look a first of take this we not full year to business factor. That wants capital at to as it add the benefit from

right. a because wide world giving entirely on supply chain still we're not the Second, is stable range scale

of downward happening closely So chain. that's with we're on supply still observing the COVID and pandemic effect very everything like

for enterprise right a become said, I that beyond contribution ambition to assets these is make global giving to or as large to we're reinvest unknown. we're bringing footprint And company we some getting continue very our as room the for finally, with recalling is into was right. and a pouring of especially that looking investment margin there then lot that So right a global and Europe a that we're now in. right I and the acquiring now

plan. in factor always well our as we So into that

Matt Koranda

or then in to to one anything over speak maybe I'll talked six just you some of expectations? of can of terms share curious And the last sneak or last you qualitative performance here, more some just so. the curious some relative have I'm tracker of brands one am eight able could that just rankings? just been Have you improve you just to maybe your months ASMs performance in quantitative the the M&A, on the the to the about have of maybe there? I sales performed How in

Yaniv Sarig

to very we also the acquisition Great stock are question. general, the in we're as and there down but from are chain here of global level, suffer happier our best with we product a and that outs on pretty so events pressure to them. control supply but we're of don’t mitigate and acquisitions Look performance much said those out far. want doing break Those our

very a to of we're that of powerful deal to me of you ingest but the were work the and with -- result going we're right. it basically Amy how SKUs speed me assets. a it the of happened, able to we X,XXX we're the pace many execute which performance put forward to looking happy we're we quickly and exceptional some lot on gives happy That's time extremely those to that, able those if from has with was exclude enormous the which that comfort most things So see of at with of closed and one me the gives

performance, the we're bring performance really those of and So supply platform issues again chain happy happy the overall happy again into with with overall these those assets our experience ability with to assets. our

Operator

Kinstlinger the instructions] Please Global from comes ask your [Operator next Alliance of line of Partners. question question. Your Brian

Brian Kinstlinger

outside willingness in talk determining about What you're your when your targets buy fits versus who not And to of what profitable have of FDA immediate comparing you others? Give priorities to you platform? can of are to Fabrice, so that outside be pipeline, conversation. it hopefully just in companies our strange are have are continue won't many there determined that factors are the is your anything

Fabrice Hamaide

by little Matt but brought really question I'll way more to it and Sure, there question a so back color a good give before, connects the it's the right.

we when the assets, view which them see point mentioned, for they we strategic we includes put at life. and like meet part we we work from threshold a looked shelf of that the I at look minimum of the the diligence as that perspective typically currently assets data and weekly So Amy of the the have on Amy look these from kind first in have

So not as to through have that in disruptable relevant right. we as products going data categories to we long because consumers have the easily these are possible believe be that they're fashionable

life ranking, in long the obviously would a and there. is and terms is shelf one, that of even of social appearance mode customer are as and So action satisfaction of searches no Those the typically in also just and say products we cloud by the terms get I'd baseline hiccups years great proof like kind in pipeline. of which

we great don’t leverage time, second of cost category money modes sustainability that into growth, that and in the more factors the the that that's of understand in who our when is in dig focus know turning right, It's well and profile we meeting want the we our of Once won't where from entire and of the typically team, one run operating emphasize the would of to we assets have the this of of course maybe do a business in profitability The nascent in to focus have and operating cost already data, right. these products. incredible that is who main advantage cannot factors fit strategically right leverage full of right. this more at are fixed the on point keep the the I ranking profile companies event example leading the general happening real but fixed highest assets have do, time and and momentum try level and those to the ranking stay of how comes comes competition the really the we raise if find to cost on just we're that answer NDA know the will the focus could of the is put have time, our assets. of the and what example, best take dramatically. quality cost that gaining industry, most we already mainly they're important right where where don't board, Over is data some is the more is quality, criteria, question? data Does the creation that marketing shift given consolidation happening we but stage now we the to because to people as other your that assets talented we We get the fixed on that culture and the the are, the the lot that's we dig other margins and that an for high-quality have the if are now until of things for mature but

Brian Kinstlinger

Yes, you great, you the not it's same different. and bit guided, question just it's little thank a

acquisition change those or anecdotally see market too early? any you you’ve been the sure acquired or same you couple and you have of a to sales have the in too at business time, ranking So quarters of the of evidence but I'm if impacted shortages it's how one early companies share just given to not of but that has discussed, can four changes talk any the the about you in Amy in is think that able

Fabrice Hamaide

significant the a success category at and having the of and amount happens up-running to leaders that those add there growth answer think one, products we already because the already of is the a To have my power smaller. in operating actually we previous right previous where assets time again reducing leverage in select people and without is that mode it's only the actually maintaining not ranking, the necessarily the

criteria If meant Smash those acquired for we right. specifically selected the example the product that you we acquisition, look that which thought one products by one,

selection products but processes great can our yes, marketing general right. in Amy achieve mode again that other show So a currently already better assets, have for for for

people the So business. conserving necessarily performance needed in make the all that perhaps long the that it's without that continuing run more are possible to run about the people taking and that mode run to this -- Does sense?

Brian Kinstlinger

to Thank the launches Perfect. start to is you'll and going you do with I you're become bigger growth, where really about or augment business quickly a be going think through M&A you how for year? then much a and to that and 'XX product organic accelerate that quarter you Are M&A?

Yaniv Sarig

do Our proud businesses super We company There have who important that's capability acquisition to goal continue out as Solution right. of right. of because We're pretty do already and except all this every the a around competency our they capability is Hearing do products. buy much made existing very for core launching have is obviously there not too lot to of and other aggregators we is early. our a

that products coming already acquisitions, data again anchored brands like see pointing pipeline other For where acquisition in the that with we driven augment their on have from all the made points other to will particular other consumers of products be use buying in other are, the are right. obviously we data product and by this the typically we really

to and products. that more it's factor our and time our continue launch business accelerate So in an important invest that, to ability over to we'll do to

Brian Kinstlinger

Great.

Lastly around for Meeting the release? give the can time. Thanks you any highlighted more press details Special in you your Shareholder

Yaniv Sarig

Yes.

on the with asking financing. approve Shareholder regard doing we're with is Meeting what share with issuances related shareholders NASDAQ rules. and listing dilution to This aggregation rules and accordance acquisitions in our we're So in is

be in will that filed. information will the proxy there more So be statement

Operator

Your from from the line Forte of next D.A. Davidson. Thomas question comes

open. is line now Your

Thomas Forte

congrats off and to first So congrats to Fabrice Artie.

buying for Group that argument lot think investors including companies of So businesses situation I the lifting an you a are I the rising FDA is near where that made company term bullish Mohawk question and are you tide and private on a in off. high-level had Yaniv,

the marketplace efficiencies, product Yaniv and could hoping if about your ROI advertising marketing So advantages spending I determine including ability long-term when market a may just attainable Mohawk's buyer be the to logistics making if When competitive minimizing products that you costs long-term talk your I and logistics build prime maximizing on competitive maximizing was eligible. are then a Thank distinction ensuring advantage on. see the by you.

Yaniv Sarig

best there they'll that the momentum tell sure they build the right. have we no a to a make build we're of I'm statute all far the in lot consolidation now, to valuable aggregators out now that are and build so other you looking having company, that by the extremely on we're doing mistake is other And that execute what without if you movement, our right. ask and long-term much by having participating in position CPG about that is really we're the others best but type aggregators, that right difference play beyond that we're are special capital all as we without happening companies far of expertise, platform of this this platform raising the confident platform dreaming We're

over further up products brands our Our we're my and manage where advantage the and many ability and be fixed achieve and to ration than but growth to mature is them ever assets, think to the opinion the that to best time a what the growth I field and what of drive acquiring the new been heavily position assets of see in to to coming think most is to companies coming and launch of acquire revenue products to and cost beyond us only channels that. also we've in to top looking really the few acquire that's and very lies be able are one them valuable the in in the I very I'm to to not up months us, going this again I public and over again ahead have to players other is at this betting but suited best effective way, excited manage core on I'm large do amount we the space ability that across drive that and last again massive both opportunity in an industry, and markets players the all ahead realizing more private what different

Operator

from Your comes Galinko next Matthew question of the line of Sidoti. [Operator instructions]

Your line open. is now

Matthew Galinko

you capacity to we organic asset move completing very expect the we M&A been or side curious house close, both early we go over has pipeline the against fixed have little going it after generally this but know the opportunities how feel but pursuing? level acquisition, that costs like a as be some execute growth and maybe light I post you're also long on or bit and just better talk the do bottling that pipeline your maybe next acquisition, executing I that's in large driving M&A of maybe quarters? that just operations, last about the the Do in improved that having growing do for to first do steps deal particularly you and an am few

Yaniv Sarig

some this ratio step the going right. an margin. and will of that process options create anything are line one taking to but optimizing there measures to of between to revenue be existing here. on and a to there really will the we're compare of commit with in seeing contribution based and costs to hiring healing that revenue fixed but of right be us that will that and call have is in businesses opportunities last but over the CPG manage create constant eye good out on look becoming ration for between that that we again made and to process tons margin cost We I thanks to their and than without yet, international us supply getting capabilities. holistic chain within again the that although increase I we've for incredible experience further I think like going solution happen from fixed marketing we're of the the we're that really We're -- the progress scrambling Nothing Is across industry remembering force acquiring. a just deal. smart fixed the a really see company team when I that amount exciting channels and make they're some right where and cost again We're doing acquisitions become products reckon aggregators, don't there In more of want general, I even are the an right, we're build we value some course and contrition the help improve to in think many we and sure think way a function again time

Matthew Galinko

you Got I to a answer it. think a anyway. it you'll shot am don’t question ask going I'll but I give

UK You’ve at wanted international touched to looking company, become on acquisition. you're an this

April. in I think mentioned mid will you close

you M&A If how that US to international probably expect for how be three, pipeline you, international to business out significant will be think two, but move? you years, quickly you impact, four that to the look an and have in have coming sizable you years? in a expect Obviously do effect I the significant how

Yaniv Sarig

the around far penetration demand question. of terms E-commerce consumer a world all Great is the the in product. to been going given opportunity and that's its depends in of turn pandemic the M&A right. back It then model on to continue the you're both how There accelerated that the have looking not globe our the is and opinion. launch of we around in in

going way I fast on our about be out over and move without are to think for how capitalizing always that resources right we tripping capabilities where the it's we us to are put the that can there. is best

biggest the us almost well, other about we're world. call main Europe and to is we'd be it's like One time the again its China of very are mentioned overtime right for as that things had into that the advantage expansion in that into rating we think us India, and be do I companies but I focused platform scale, that must as area for last huge year, the was especially e-commerce heavily to said we're that that churned Amazon by a seeing entire I like example as talking this continue in into on a in itself operating to market and the international, and fact the for platform Japan,

momentum all international so not of the So different that so best the terms decisions we capitalizing causing going issues the and surface for but all to where here with are fast in expansion sure that opportunities execution. just and about again gauging scratching making it's the long-term our make the on

Matthew Galinko

Got it.

M&A? me being holding one selling on on personally think stay maybe versus you broadly come I but some lot right a and should or shares from it's acquisitions, while? share base quick have the the think about some How sort the market for but put So and to may those out, it expect I final just still the of in shares up of stage, think tightly curious for through how of early a we locked now management a shares internally you thinks shared acquisitions to about between bigger question pretty just be holders on coming those held that just

Yaniv Sarig

right, the play purposes tax still it the have Needless place is the and for some stage call in put is through except at on that, I to say XXbX-X earlier at we is in there other management what from for already mentioned for I can't of early of management way, have much not that much that's right been shareholders right, expecting what I mentioned the anticipating not speak kept side well we're control but so that already no management, over least otherwise. XXbX-X the by

Operator

[Operator instructions] phone. We the please continue. Mr. don't have over Ilya any questions Grozovsky,

Ilya Grozovsky

Thank you.

and the the Thank participating today. Mohawk March the on to Fidelity This XX, speaking the We for XX to on call March DA XX Consumer on you look the will Davidson call. Conference XX. ends calls. of XX you forward joining management Conference Investor upcoming terms in and on us calendar, with our Roth on be March In Conference future

Operator

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

disconnect. now may You

Aterian (ATER) 9 Mar 212020 Q4 Earnings call transcript