SFT - Earnings call transcript Q1 2021 | Shift Technologies, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Shift Technologies’ First Quarter 2021 Earnings 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 Henry hand Strategy Bird, would your conference and I today, speaker Vice Instructions] like the to to Finance. [Operator President of ahead. go Please

Henry Bird

Good quarter Technologies afternoon, the earnings call. and first to welcome XXXX Shift

Arison; the on Co-CEOs, and Shein. today Joining and me Oded call CFO, Toby are Russell George

or performance current And these During our future while is Actual risks guarantees these are reasonable, our we statements assumptions, make what are the of statements, which some may believe involve remarks, on forward-looking future forward-looking and not and we outcomes what represent expressed this result forward-looking of differ undertake statements, will certain judgment and or no may hold. a any judgments from materially uncertainties. results for full a refer Please discussion update events otherwise whether after obligation of as to statements. to We publicly call. that statements. any any our implied the forward-looking new with affect SEC in filings future the factors conference information, forward-looking may

of course will Toby. in non-GAAP as With this we the now to the During to call that reconciled earnings materials. turn over defined our I be measures will and referring said, call,

Toby Russell

had with in GPU EBITDA implied measures guidance. last set up that record excited adjusted our you results, an In quarter, us Thank an joining I of report over financial out of sequentially Both focused execution we this up than XXX% our today. also with are million, We better margin fantastic and year-over-year plan, targets, QX for on drove today quarter. up including adjusted incredibly achieved business we was call. a which am we Shift the the previously all Xx set XXXX. has to for from $X,XXX, above fourth strong our on $XXX on revenue

metrics, all success year success, executing are guidance on and call. later across our QX we in outline key full raising laid Oded the XXXX confidence will initiatives, which our strategy detail in continued key our this previously in our Given we out

core Our drivers and geographic enhancing GPU penetration delivering previously our our to drive adjusted We reconditioning we which our within has expanding three existing these. capabilities, offering product communicated deepening of year, This all growth, growth our successfully out are footprint. for growth both on expanded and results. strategy enabled markets, us our laid ancillary higher

drive delivered Additionally, revenue our we I'll take including level, us sequential national year's growth growth, through moment the last strong quarter, helping driver awareness to In a strong brand in extraordinary more triple more is campaign quarter-over-quarter. each detail. walk growth. first than

tripled had nearly same growth We year. unit e-commerce and core also our sales all last markets Coast the West we this came of six from

existing Given to territories we capabilities by volume our continue continuing in experience. in delivered and sales capture model our drives deepen see scale, full customer service accelerated share. the invest a and platform more technology inventory We further to to test unique to home. industry-leading growth we And grow model consumer's our significant support as to our our opportunity and penetration spectrum of

mid-term new immediate and markets within while of and for the in which immediate to evident we by The marketing volume supports Our mid-February. Shift for will positive guidance beyond the QX, complemented strong market and core strategy now on outperformance in extremely moment. a revenue and benefit QX the This both long-term. detail as Oded in part these sales are durable, is building strong, by our strategy results and impression, brand latter growth implemented non-perishable also efforts

full the success, strategy discussed the we ahead. will investment in we've years our will the in and this benefits come And consumer Given continue building. as months brand of before,

advertising marked the one. expense from new due previous marketing our XXXX overlapping As between new to strategy, to strategy old point marketing changeover also the spend the our our it strategy QX of our marks and high

CAC reducing of the total QX, the our saw half. spend an lower historic year. shortage roughly QX substantially expect in and half advertising expect supply be market. than to We QX And new used in in through second improvement car we CAC our the continued

One to wholesale lack of of vast and the supply that core we grow our other model mitigates This in the risk across differentiators indirectly that model impacts cars allowed QX. to industry industry market XX% players. sourced us of volatility directly consumers, auction the despite that and business our from significant related majority of is our

$X,XXX Xx by GPU, Our mid-year we tremendous QX, and our improve adjusted revenue over in and actions in-house XXXX. than grew that outlined of QX. In strong to in in our operations improvement XXXX, succeeded to QX. significantly We in and achieved timeline which goal improvement accelerating growth volume reconditioning more with expand was coupled November early

will was bringing levels target reconditioning As sustain anticipated, forward. And our primary QX. GPU in back in-house the improvement our to improved volume going that in front-end driver

offering here growth, allowed Concurrently the to reached supported continued in of to of our over XX% GPU margins record XX% to are still also our consumer unit, delivery, improved front-end, also delivery. profit. in F&I of our improvements upside GPU have This primarily GPU goal but time. growth the light strong was heightened strongly, to QX, not demand, in us performed by year-over-year we've products. a consumer position. F&I in driven QX improvements and focus continued supply unit has attach is the GPU our reconditioning expanding opportunity back-end our per per experience growth on on expand $X,XXX strategic on product constrained strong $XXX and increase we which meet in a beginning made our F&I path us resulting to F&I inventory midterm gross investments with beginning market. by excited our Additionally, only to efficiently $X,XXX representing rates across and our There sellable from enabled even significant

omni-channel announced been we this offering, home within Austin test and city. consumers' that XXX miles including had to Texas drives Antonio, brought full expansion. week, to geographic of each Turning our San Earlier to converted

Nevada This our is first States. Vegas last western acquisitions across directly consumers expansion regions car the United are Additionally, half the region. launched able week into super and we now vehicles the of in our purchase XX to in from we metropolitan Las

offline in with e-commerce sales. to its direct-to-consumers opportunity whole share to Digital car be selling that evidence U.S., guidance market of working. transformation. plan, infancy executing very used cars and are addition the a is are across By to positioning automotive still we our strategy the in capture the quarter the our is In first against leader strong from tremendous QX results adoption Shift in our

thank results. Shift members their continued over environment team results. hard call challenges will like turn our the in would CFO, by review Shein deliver I record our financial the especially about for and to work our to now I pandemic Importantly, brought to the dedication, to overcoming Oded

public Shift Member recall, also Oded? in Oded the CFO brings extensive company and Chair Stage Audit The and both Fresh of March financial you Committee roles a Market. Oded including As joined at as HomePlus. Board of is experience, Stores and Conn's

Oded Shein

$XX,XXX, in we ASP due quarter have nearly achieving address first speak improve see units up opportunity. this guidance channel XXX% to X,XXX The significantly will than Toby, to and our for and review E-commerce everyone. used capitalize strategy and I year you the Thank in for the the bring up a It increased XXX%. purchasing strategic you, Toby; joined was the today and to strong good historically sold units the the results believe second online team year-over-year. were in And for I highline million joining for time and long-term an ago. selling selling the as because consumer Shift increase luxury higher first fiscal March. is on look to and QX quarter price I been a our car cards, and the the average XXX% market XXXX. grew have pleasure team change priorities. inventory entire X,XXX, XX% increase right then prioritized first Total of place growing George forward Shift, to year. $XXX were opportunity the our company which e-commerce in was since performance long-term experience. I to in revenue and afternoon, the to I with mix, Shift to our Total

made including leadership Marketing our support a our was year higher marketing enhancing significantly also in-house new million was strategic return consumer our in sequentially has a reconditioning year investment from compensation team's due year-over-year million discussed. QX from million Please was our decreased the also the of segments fourth total of reconditioning growth gross the the X,XXX, key $XX.X value throughput. $X.X expenses ago, efforts than in brand our investments stated up year. $XX.X large company first range. gross initiatives, unit we to increased for support sequential a per Adjusted increase in the within a due $X.X loss public the of quarter of XXXX. $XXX were to quarter and to prior also as priorities, sales, profit EBITDA million Toby loss ago. to up $X.X of profit first to versus the SG&A This due part positions. guidance to slightly and demand costs, percentage quarter headcount meet note primarily meaningful versus to million Adjusted expectations including in to while year as We million in $XX.X operations the was a Adjusted $X.X $X.X period. stock-based was versus EBITDA last to million in increase growing reflecting that aggregate it increased million

balance million. cash We to flow. the $XXX equivalents and QX Now cash turning of with sheet cash and ended

The for We increased year $XX.X flooring in million reverse credit. line cars a giving as in also during our to million our also support inventory we that process the to customer the expected end, net timing invested $XX.X is accounts into of growth to had quarter inventory demand. due receivables, million collecting million from year. $XX.X shift meet effect declined to purchasing fiscal and by Cash $XX after flows approximately by

As to was cash this use in in the future the we working QX, result for quarter than capital of expect higher quarters. the impact to used

Given we strong liquidity have the current cash position. a balance,

future strong for said have to able in to we that our and always growth the profitability achieve As management are into quarter. rate operating and our options we scale are capital the evaluating ensure we our guidance continue Next, second the high and past, liquidity

revenue quarter in million, to than higher $XXX expect the for range second year. last $XXX XXX% the QX to to be million of total XXX% We

and March. adjusted $X,XXX have reflecting favorable since between experienced we capabilities Our internal our is appreciation that to in reconditioning from prices benefits in GPU car expected improvement be and $X,XXX,

our a the midpoint an significant sequential to $XX range million loss to $XX guidance range for We to The adjusted across QX year-to-date to all in expect due profit XX.X%, adjusted our implies XXXX metrics. Based operational loss and marketing improved quarter EBITDA we on are our million. strong again execution, margin costs. of this results reduction in the improvement EBITDA of annual and gross be improved raising of for

million of XXX% We increase XX,XXX expect e-commerce range the $XXX to total to XX,XXX we XXX% revenue be an growth expect to XXX%. of to sell to exceeding cars, in And million, a $XXX year-over-year.

just to our our are We expected year. expectation is the since to on March $XXX per possibility previous by continue rest increase for the favorable higher GPU an we driven may exceed based car not $X,XXX increase the prices is and our enjoyed raising of year also QX the compared unit guidance. full This of discussed. than on I the QX This expectation adjusted that results guidance

to of as margin the closing project for XX%. remarks. for now will a George the loss than call better now above expectations, be I our the turn EBITDA result over we to year back Finally,

George Arison

benefits Thank outperformed EBITDA and our the to you, as results branding dramatically We're due expectations with from reconditioning improved for new adjusted Oded throughput. and quarter, margin GPU a strategy immediate pleased our we for revenue, Toby. extremely first and

operational believe of became targets transformative We public platform auto have goal. while for we e-commerce Shift is year the a improved a delivering positioned setting strong now great and and QX achieve and are up sales this XXXX, far growth that discussed be this we and us with fall, exceed leading positioned Operator, into revenue heading gross last ready growth company is inventory well profit. which questions. We to to uniquely our for to performance leverage momentum and awesome when the remainder us

Operator

[Operator from come the BTIG. Fong line Marvin of Instructions] Our first will question from

may You begin

Marvin Fong

my that on questions; quarters. I taking just Hi, good the afternoon thanks and for in spend. welcome guess Oded. and marketing it be good It's stepping to start will down I'll future hear

growth you thinking – are growth, you're guys I that. and do you the second balance do or if days XX on how the about drive of profitability you you're mean, from be feel Just to quarter. just just trying more sales, growth just could a to some Do and here feel additional spending on you you out? obviously like color question, then And enjoying fantastic additional like in

said think George a would XX be had you like quarter I range last XX optimal. of to

So about Do you the just were that optimize quarter spot? quarter you days thinking sweet balance and of you Thanks. think in able you curious, the second margin range sale get will are and how if that the to year? for the of that into feel is the

Toby Russell

question. Excellent

that put place. marketing marketing the excited about the brand portion, were we strategy have and On actually extremely building in

a what as really the peak our As a QX what overlap strategy marketing the high spend. our of would in is current point or we and I mentioned at describe strategy drove, our in previous the outset, –

and us the We creating excited that from grounding. we're forward. do needle awareness this with seeing that significantly at we're that but not in volume investment long-term a unit by been also and time new brand rapid been think half But impact growth going the that right we're growth, and seeing a the very we've our and just expect consumer as brand have nonperishable better you're we to in has the are the lower cut-over threading beyond. we’re investing we're CAC our marketing, what continue days and building because and significantly level near-term same in footprint like of early existing in seeing is growing spend our QX about equity strategy. That's to expect within we

George Arison

time the And on inventory to question. sell

from hope hence really and in guiding XX So, slightly obviously QX. for we're better perspective want of do, seeing strong QX year. do slower guidance our that's would in what of to great be of we sell the we're to XX to to of kind in terms growth time And although is full to growth we the okay, XX what

We shareholder the really are over QX beginning strong inventory. sellable to letter discussed seeing in We in inventory sellable of growth our our XX% from had beginning QX. the growth in that of we've our

in really positive. ensuring have and we we we of amount good really net that's So and invest that inventory, the And then continue to finish right inventory.

we the end sold the I some is more units QX in So had by very quarter obviously We demand than strong. amount. of towards think initially anticipated

for that And hence that the very obviously helped Oded the guidance demand we with revenue to quarter. And will believe results so, the be providing. continue QX, strong in that

Marvin Fong

just could I one more if And in. Great. sneak

you the Just seeing volatility. obviously a of in used car channel, curious, highlight lot wholesale did strength pricing, the

most mentioned consumer cars that guys You getting of the your through channel. you're

that advantage and kind of having same color thing without them a in that, additional with interplay prices raise wholesale? from cost can of for some like would kind just you sourcing. that the Just to of inventory does competitors getting of your cause and on lot of that instance, dealers your take their more other guys Does the realize

think of take and about now positioned to help advantage? how things stand us Thanks. Just how right kind you're

George Arison

Totally.

by in of our or to results from car – can prices which terms consumers acquire a that's which partners. the advantageous people think in And margin it reduces to directly they come we buy the sell this environment, as us their pay they it over we lot high, been for So because very wholesale, when cars XX% you to mentioned in what having have wholesale for super from of consumer.

there when there this what possible margin the I think buy at sell best when compression it thought can is high, we kind from for the you you car market for, Just buy a consumer. the time, you're of priced go price. inventory what have such than is between think also market thing valuable would, sewing true best gives you wholesale, isn't acquisition up that's you you everybody. that less compression a of higher for and why the in margin at you always prices that to consumer That's and overall But so historically is

consumer the the a range, They lot kind so in to more is of two six bunched that, all on but versus more even two a year range and three, to other cars wholesale are of side be of much in or commodity. four The a off reality tend of wholesale them are kind up year lease.

what go consumer that really – up And the so continue out market, in car, the we that built be consumer's to by as to cars. price car we are that think push they're that office our not, very in consumer as the commoditized we to home to we'll the benefit pick then whereas buying acquisition price cars that of continuously well for stand business. terms really, we when purchases, and then scale well number of forward consumer so able worked to the as or and And

Marvin Fong

Terrific. Thanks, Toby. and George

Operator

come the Baker Our next Mike question line from Davidson. D.A. will of from

You may begin.

Mike Baker

attachment Okay, the of attachment, you drive used those some on talked better drivers, better F&I that of Is et also Or vendors about it some of products. rates, the is greater helping training, that I making the better first of really some Couple cetera? those to you're in for think simply – just changes but to F&I? questions, some thanks.

George Arison

changes. we not QX – in made So any have had yet yet not made

We that not they're or the QX on make are yet. in working QX just might in changes later coming we but in year,

so able we'll on, with but being not from effect. the change kind is the partners which in we is has to of around there. that that ton kind now into and come that and our benefit opportunity grow agreements we're working improve in right planning as yet So tax of is have to mentioned seeing and But there a there forth. F&I then we're script additional still, the of results rates that And the

Mike Baker

Makes Okay. sense.

million, burn. thing use mean, let’s sort you ask about XX% previous was midpoint it Another in the think to It want versus than cash of of cash bigger flow million. XX% before. said free it if $XXX picture I which EBITDA to $XXX I'm where guidance speaks $XXX I but guidance million, was cash your your margin, XX% just burn outlook, the you and higher use is, actually about better I about about than a is sorry, of

you what's cast as positive become we cash, wanted And I when of ask that and outlook through do to when flow just sort year for of So of do we then, that. about out burn or run next sort the cash?

Oded Shein

for Thanks the question.

Just a about of that. thoughts couple

As here which in grow thinking position, out in inventory, our future, pace. about we to facility, is really an the bank, we And market And sit can to we that if at in to the that the and a about we're thinking traditional we do to we we that a grow want grow always make liquidity continue industry, level. have capital to plan floor we today, can good so that's there. method the we plan a through continue position, always that capital our sure – accelerated at reach to management cash

for do great reconditioning especially are progress getting function in some GPU talked of even, XXXX And efficiency. a goals, those. we past about towards a was $X,XXX for all well has company is with efficiency of to in F&I. the scale and As it date, which midterm said operational that again in with the again, making break target We

heading? are we where So that's directionality

Mike Baker

you. Thank more Makes I One one, quick could. if Okay. sense.

was You maybe because took it by percent down value design the easier.

factors that value up to to so we that. back expect I didn't to at much as should the up, get a caught on situation? that issue differentiating if Shift least You reconditioning, reconditioning, the But the I'm have me for the of competitors. that downplayed because was that's or wondering penetration of go reconditioning of you've one of now temporary do just a little being bit, versus some sort was the

Toby Russell

but it up to a from cars up actually and increased sold as it's inventory, of before, value as total, up. in cars right? going has number of go So So will has continue a gone total percentage aggregate total

had been doing points, sense of higher – a that and having felt where was economy COVID price in more was, lower step driven XXXX, done bit. with as and on the kind to fact addition in higher by highline XXXX. XXXX situation we made more back little slightly percentage, value that Previously, the a also we it’d In to the from with really expensive it actually that the we well cars

public, And so that longer of going lot to a capital being that, we were once no sense. back constraints post made

definitely two the value It of on expect So more it a we expensive very doing on an tell same a XXXX, of be less what’s things quite percentage don’t value the that of have it might and we good all actually selling We at it had reconditioning. side, would – cars percentage. side because seeing whether but slightly been kind be value the number of part happen, in the and that huge not those. business. be and we're those to will significant for be important Peers demand more

we're very, kind as future in we is there do think that value important. very than things and think buy more as, demand few something and that's more very that independent said strong, as are now, strategy, generally a differentiator you dealers. those do are We far for other to winning like places for how what right those of thinking the huge scarce. cars you is a I Shift them, beyond are because about very cars big also can There

ones we first an only digital pursue can independent are and think that. aggregated share so from valuable that are that's super continue And the actually that to we And companies capture we'll e-commerce dealer.

Mike Baker

Agreed. Right.

I'll pass Okay, on. thank it you.

Operator

Seth Wedbush. Our line next from from come question will the of Basham

You may begin.

Jesse Sobelson

Jesse for is on This Sobelson Seth.

here. cash prior the on Just piggybacking question

plant prefer that? forward, mentioned looking And capital, commitment? looking what's forward? it to floor comes you equities so, a plan if raise currently facility then Do the on you a And guys have time would You debt facility. floor that when capacity or

Oded Shein

quarter, books. the on We we $XX actually million is million The this question. total in point. at first have facility the the underutilized for $XX Thanks only for

opportunity grow all we'll in to anywhere whether as So with. opportunities an our at equity, And or for future, the it's of look in the we market debt have between.

raise So, accelerate want more this and money scale get to and and to to more money thinking and growth growth both accelerate is profitability. raise we

Jesse Sobelson

cool. All Thanks. right,

Operator

next line the Zackfia comes our Sharon question from And William from of Blair.

may begin. You

Matt Curtis

Hi, Sharon. this is Matt Curtis on for

on marketing Can first or unanticipated about limited the a played mean, quarter. you was revenue what I since forward expectations? EBITDA offset some there pull I may like the sounds within the you congratulations that through? overlap any off, talk upside expense was It just adjusted flow was did basically wondering have could first So investments the part clarify. in it, but you if your

Oded Shein

Thank you day, down marketing. investment we did that. pushed profit, our in was growth time within for with end at question. for the variable the gross were guidance, accelerator and and the But line at our also Yes, the top EBITDA and growth we pleased same the our expectation on exceeded of so so

Matt Curtis

Okay. Thank you.

Operator

of from Securities. from next come question Northland Grondahl Mike Instructions] line the Our will [Operator

begin. may You

Mike Grondahl

guys. thanks Hey,

that, else quarter and your lastly of keep capacity, you efficient then Just a was XQ? do it? on can to in than operate in XX, more efficiency in at of like kind question what maybe would kind say you percent fall, your it, how you first the last kind did And a to the of reconditioning on a reconditioning clearly reconditioning, lot improving what one to of scale

George Arison

Great question. Thanks.

the to than I on to faster you dollars are terms of you're per something we in also are that speed that can reconditioned reconditioning, we versus better in do we be there's was where could and of of the there's happy I think which made, get But that not much in still it's past. we because a obviously, and And there's in opportunities where profit think if the think be quicker, we car definitely during from does happy than to improvements happier terms QX sell is Both where are earnings we spoke because we we opportunities asking we not made don't get car are think about with with are really we've gross better. happy allows a place spent to profits now unit, I perspective, a can much suggest put will call So significant much pretty the QX. number where want with reconditioning had improvements said, March with we that that do go, certainly better results. faster it That like mean the it published. can in then you which we improvement. gross to in lot to turn the that so you and And better really we've

That's as is of where headquarter we them sure will long-term. be not which to where gross past to I increased spoken we well a has we've is, well in of come Last strategy midpoint the speaks one about driving to over about next that years the speed to that to to is quarter of kind goal of from make future. kind of couple that's costs of beginning finishing QX $X,XXX gross of profit QX want inventory change. but down the as think And of get $X,XXX our Obviously, to the reconditioning are how getting most long-term, do $X,XXX kind $X,XXX to sellable part beginning in of reconditioning to big $X,XXX still done, the there's a is ideal front-end we level front-end. want lot to be profit. a the point costs from in our how sustainable to

Mike Grondahl

can of vehicles? there call it. out resonating Is two really one campaign. you you with you Got there kind sound with things think branding or sellers and happy marketing then really guys the of that's And buyers or

Toby Russell

about. changed of believe we about We know are the full part that don't important that strategy. talked full QX. and of we would creating stand and then way two multi-channel our saw we've to of we did Part I positioning. reaching say the problem the that The to And approach proven great talked early reach out channel spectrum mix, things awareness, now using that the about front. us, and quite that on two, us versus a important in signs the That's of our substantially that has just question. we and Shift positioning a that how the folks QX, consumers created previously. in guess One, that That's unique as one I new part most in of latter in assets brand rollout we've think I thing people creative behind the successful always past.

want Our We believe felt value used cars difficult proposition and say, face is, that a is I new. that quality they challenge choice so never and consumers trust.

I'm a to car, but you lot. So new off that go that new second overcharged car, I think why, should get buying going a thing drive buy I the

in You're depreciation. going thousands to lose

And is so is and fundamental our we're of breaking We're resonates as get we're better products have car, we do, we a with your car saying, channel, why, believe to than peace We're we used well. the what's hey, the is in offer company brand what et what we're our of We're a presenting. market, consumers. land available that about asset proposition cetera. et a doing that for you not what better is new the a the That clever from talking center way mind about what and doing, value. we view of meaningfully that what point do. customer's seen at really creative why we're like just This cetera, great trade-off in core thesis it of talking

Mike Grondahl

Thanks Got helpful. guys. it. That's

Operator

Zach from Fadem come from Wells Fargo. line next Our the question of will

begin. may You

Eric Cohen

Thanks. Hi, for this Zach. is Eric on

to that? Now Antonio QX. Texas were is only that any GPU use you And you markets for market? and now there it Was one-sided San Austin five that flipped in to all two-sided easy guys headwind from had

George Arison

usually sell was GPU. any as we didn't Any X to XX a so the in quarter business scale first within Texas cars minuscule

Eric Cohen

ago. opened? started Antonio two-sided And months in it in looks Austin, should like flip other and It they six that you runway months when side, and six the other six Vegas one to sort And model buying. San markets What we to to to had Texas from Las been, remaining months in you've markets? about the expect took of is typical switch

Toby Russell

flow of part we we're launching our launches. timelines velocity launches which We as And would to very not when competitive planned which have subsequent launch advantage turn actually haven't main into is at in capability excited markets. shared the to to Texas. helpful with as have a we over, with additional Nevada secret cars were cars because we is where we as excited flip they're been can national selling it about We've Part came are of Las very, we what and be flow. both from where retailable. going necessary, haven't published sauce it the those that's coming And about can when the point Vegas it well. that which online the online also We're really is for sourced that cars markets to market wholesale there of

I'll launched necessarily primarily because in said the current next in adding of we we're excited and the market do And schedule, in further growth launches. we markets. terms to omni-channel of as in market Oded we're cars launches note additional As being didn't place as how year, now additional strategy have up, further in grow about those total expanding get that down our offering really were Overall, path bullish mentioned, is to would with real what our had we was the and putting for for relative we're in come next we've that but of these in on add And though, foundations year, sell Texas, we thinking terms locally Shift. footprint actually footprint XXXX. add of relatively ramping we're online. able we small to and to markets about ahead And market are volume we growth

Operator

come And Baker D.A. our will from from Mike question Davidson. line of the next

line open. Mike, You begin. is your may

Mike Baker

sorry. Hi,

on down, more real and But the on helpful. you're Just just pulling the just at quantify the quick, could clear all campaign. marketing but marketing Do marketing saying? from you're what in just obvious half? you be not importantly, It's it's that'd of it be all, if to think what first costs that clear, in going new to think quarter, old goes away. that cut previous the campaign one just should be second we more back I comments, we about Is your

new or right campaign, are can which going accelerating confirm and we to so now. be you so even that marketing And seems successful forward the

Toby Russell

spike as total new Thank you question, bringing QX The overlap for one Mike. spike. we in spend and that the overlapping confirmed. for that created on strategies sunsetting that a the occurring one, a was reason Yes, in old had and

substantial in as in down over are mentioned efficiency, in quarterly CAC expect of that caused expect see course the amount in to we spend I outset, fact, in continuing a the by good As doubling in leaning strategy. high of be spend changeover, we resulting we the was decrease that a And really that a with but the the decrease essentially QX. decrease really what on it new in and and year, advertising total by CAC in half point

Mike Baker

Right.

That sense. that. Thanks. I makes just to want Okay. Appreciate make perfect sure.

Operator

remarks. Thank further Arison George over I’d No any the back queue. like call you. in turn questions the for to closing to

George Arison

speak guys and Great. you joining we report in everyone much Thank really appreciate call. we’ll you to we very months our when And few a QX.

Operator

participating. today's conference you for call. Thank concludes this And

You may now disconnect.

Shift (SFTGQ) 13 May 212021 Q1 Earnings call transcript