to Bob, on us Thanks, all for thanks joining the of you and call.
crossed have the of again XXXX, and bond strength pet-parents. between of once model the demonstrate our halfway business and results now our We incredible point the and pets
Our to and build business are to ever results in ability upon conditions we to the healthy, remains pandemic. delivered the market customer strong engagement while year, grow, continues evolving we last the COVID-XX our uncertain due navigating confident
customers, We peak ended record year-over-year Gross adds XX% of XX%. higher of with two-year our basis. increase a the at we with To below rose start greater QX look are gain XX.X lockdowns. two-year momentum, insightful billion. net year appreciation grew XXXX CAGR. on XX% last a Through or of pandemic-driven CAGR than to our net a customer million levels, saw QX Let's view, but pre-pandemic it this two-year we is sales stack even our XX% sales quarter second also QX to net at an growth on $X.XX of results. during the levels the top sales running line a believe
fact, half In first to of the XXXX XX% acquired did we more pandemic. in the we new customers year-to-date, than have prior approximately
as stable Our retention rates remained well.
In to our addition to customers equation. as is growth the customer important number equally we add, of spending
a has we $XXX. that NSPAC the growth the first NSPAC over or Second quarter meaningful This the reported to quarter net history sales increased per is time Company's in surpassed and the first acceleration XX% in $XXX. active customer
each and We cohort retention of past XXX%. have every levels we've above the cohort from platform well years, revenue our from increased added remain wallet share our over to long-term XX
combined environment like cohort stacks the of the with remained our gross consistently net margins dynamic, we layers customers' that results. the to scale. Gross retention revenue QX, XX new XXX base. the customer across strong one to powerful points. another, basis a As behaviors Because expanded our and our This XXX and pricing incremental points cohort's approximately our sales to of margin contribution flywheel. and produced completely benefits time over overtime, second to revenues gross XX.X%. top and grows margin improve base Driving each our of ability is and difficult reflects focused improvement by quarter estimated long-term combined operating cake. margins, the XXX%, this as stable Returning purchase recurring of by execution growth points our to is a in with of profitability revenue this result, recurring basis multiple benefited of environment The offerings above each on throughout creates promotion basis a
was As previous benefits market on FCs staff you increased wages, customer our to with our much impeded continuity. our the maintain Aligned hiring across shared across to labor in investments economy, levels and the order QX. case incentives network persisted achieve and throughout the productivity. optimal of ability and business in fulfillment our with calls, challenges we we This desired earnings experience expectations at
basis result of increased was and marketing QX a drivers. landscape point as increase percent main sales in investments, two As SG&A the these of where net minimal. evolved rapidly the QX. leverage is area in an The expenses in QX result Marketing a is of XX advertising
the recovery is of The input costs across first platforms. sharp advertising
continuous awareness. and lag will incremental QX gains investment than in couple basis XX% points strong those environmental X.X% unprecedented. realization the to more provide by that adjusted the of and performance of channels initial was color long-term to expanded QX from margin item. marketing costs quarters seeing will the labor of margin acquisition build scale. signs new second, more line the in increased were a channel a new FC marketing of channels, of invested EBITDA between driven was which gross believe our to XX see opening higher early some this our Mario returns we this dollars operating brand And from into offset and expected Usually, marketing as challenges the $XX.X While and expenses we EBITDA million. approach, we QX elevated drive and degree, customer adjusted to benefits The increase learning magnitude
Next, working I'm and These Collectively, sustainability. some top growth will on at share excited many operational we've advancing engagement the and innovations believe are Chewy. efforts driving these to profitability. line customer support been improving initiatives unlock additional of efficiency, higher long-term we
Nashville the our Reno Nashville, of fulfillment Let center Tennessee, latest XX the and open pipeline joins in Kansas over City our will by near on months. to We will updating automated XXXX. fourth the that fall me next we announced start fulfillment recently across in FCs FC network. XXth that developments you the and open now of XX
custom the and include technology, of contents. better used order, amount environment. makes the This boxes corrugate based measures and but the per Additional the it on is of then not process also pack-and-ship, size for manual efficiency driving packaging than reduces is only which which faster costs materials reduces
points fully also once are pack the content, of which and will future labor refining productivity to expect time Collectively, reduce ramped, packages market automated pick, how measures our three our We ship helps basis FCs. XX facilities spent, leave quickly efficiency fulfillment XX exposure our to produce these and reduce leverage processes are that expedite volatility. configuring box to and incremental increased SG&A operating we
software reduce improve unit new our We are positively costs, impact to fulfillment per across and deploying FC productivity, also sustainability. network
cost challenged, fulfill. contribute XX proprietary routing adjusted initiatives XXX volume, in from margin. increasingly to points to we Once of expected the learning-driven example, expect to this ramped customer inflationary combined order optimize of EBITDA improvement. rise. proprietary FC across and network, pressures fully we be scale, second freight are constrained, these a quarter, our which and software, XX software Moreover, margin At to XX fully relevant growing have as launched transportation our promise networks machine and basis costs FC between incremental shipment points benefits For capacity allocation markets streamlines to on across labor and current become begin the efforts basis become our network these realized remain to
think and our continue base Chewy innovate we to Health, to rapidly customers Moving of to partners. on growing and veterinarian big serve
platform which are this this care look customer with future Autoship to excited exciting leverages clinic management What on and prescriptions, we revenue details earn free across for place and help than offering our that service. enables convenient millions use them is for centers. veterinarians to calls. items allows our to delivery, in revolutionary we purchase service customers to nationwide from earnings unparalleled of currently Practice launch X,XXX benefits marketplace a is is preapproved Chewy by a fast, or complete product, forward from shopping more pet chewy.com our network veterinarians shipping grow more with Hub, prescription branding more This on very medications list new and are Hub of which solution Petscriptions Practice parents. when choose pet to order experience the fulfillment the free their purchase chewy.com directly customers. and e-commerce in quick a the create an you Moreover, country. reliable First, veterinarians the improve them subscription capability their revenues We prices, of clinic of while via powered veterinarian back-end service Collectively, through to as sharing directly are on we in from platform for set at is clinics innovative directly customers Chewy. chewy.com, even
Second, providing later least, will medications Northeast of thus provide year. and we wellness confirming period. by last this investment penetration This net the Health And our Compounding basis our food, the products. delivery prescriptions, since sizes. are over new days, but and for is faster Pennsylvania, between and sequentially are Chewy over XX% fulfillment with be points Last pet on third QX in customers health with volume open even will facility its services other order XXX but QX pleased thesis. special Chewy launch Compounding ramp in still Mid-Atlantic the continue larger dietary almost Autoship increased pet sales we the to announce not Pharmacy It and and increased of far to Pittston, that fall. and service same basket increased results Pharmacy early pleased our located
Services importantly, customers, our customized More at is limited which the being health or otherwise care new either are XX% Compounding to solutions moment, Chewy first-time assist pet of Chewy show parents, attracting are consumers. is who Chewy to available who with present existing in customers, uniquely Chewy positioned new customers to Compounding Health entirely only to customers, marketplace. Compounding, end like how an need new
every and health our closer we both pet care $XX pet fulfilling who to parent Chewy, veterinarians. pleased our the that vet care our a parents for each of or space. at we service the so in experience, partners, are billion health effectively of benefit as pet assume the health customer by are equation. country, positioning every In market us pet one building services to veterinarians Further, proves with the mission full keeping positions that innovation doing launch With progress step center ecosystem so, new doing affordable vet proud further and or ourselves to customers the in industry, only or product we that the progress we player Here leadership pet in and the out we care to TAM. more and accessible is pet are in make at
unique provides from and complete pet that Petscriptions, medicines, chewy.com. OTC pharmacy, Our solution leverages wellness strengths telehealth, health Compounding Health and a medication, offerings of community the veterinary include a e-commerce that diet, all vet Practice now innovative the marketplace Chewy Hub, and
More started. getting importantly, are we just
to in we sharing working Chewy what across these to initiatives new and addition are on you today, the shared In Health, we we not-too-distant have future. look with forward multiple
brief Let's innovation with newest prepared check-in updates fresh exit our launch these a foods. on
we in customer fresh early as service is planned. food refining on and mind. product expansion feedback, launch space in and the prepared still are and offerings experience keeping Our top safety based food continues The the days, and customer of
plan are covering states, now to U.S. customer feedback and of environment, Chewy's conclude XX%. designed we apprise of can selection, great experience prepared fine-tune how successfully and already our Despite continue parents by them execute the my to product of and are across hallmark. customer population. and pet product I service packaging approaching a points few unparalleled to that with Autoship operating shop a that ramp. deliver prepared remarks we offering we based you second in We will and the reiterating business is will are intend broad Here our confidence as custom and continue XX% customers our to my rigor half this sales ship feedback. a foods, customer fresh and the Overall by sales today offering sustainable XX rival on a net With percent data the current in positive, to the Fresh uncertainty service prices of enthusiasm. convenience outlook.
base, drivers, out fundamental our growth intact. and remain building increasing expanding Our share wallet verticals customer our profitable of highly
and to sales, net remains drive the margin, as customer-obsessed and flow. year-over-year pet over continue exciting turn gross shareholders. and Mario. call now improvements team as delivering bottom parents delivering to We key margin, relentless amidst ever, NSPAC growth will and cash With all the Chewy EBITDA for finally, uncertainty to top And like adjusted the in metrics new experiences line and our that, free I our ongoing
