PRG - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to PROG Holdings' Second Quarter Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, John Baugh, VP of Investor Relations. Please go ahead.

John Baugh

morning, good and you, everyone. Thank PROG Welcome Call. Quarter Earnings Second to the XXXX Holdings'

Joining PROG is Financial Steve Chief are issued investor.progholdings.com. a me morning this earnings our Michaels, our you already and release Investor Garner, copy website, of of morning, Executive Brian Holdings' on our Many Chief which Officer. this have seen available Officer; and President Relations

third cautioned and allocation earning looking, our statements. ability which priorities, Listeners certain and and statements materially contained year could for for to of differ full make we including forward today, forward-looking any our in to comments our for all to segment quarter call, no be XXXX such health regarding Progressive shareholders. from actual those remainder risks this our quarter During year forward-looking update uncertainties, our full results we third of expectations will outlook outlook the are not the to statements. including and the obligation write-offs of place XXXX, capital XXXX, revised statements to We our to GMV of capital make and regarding Leasing the expectations XXXX, for portfolio our the our continue subject undue cause undertake on emphasis which are for

periods that including in financial with certain Steve financial The PROG and measures measures like with On With non-GAAP have performance referring company's ongoing Chief measures for to over earnings I help These tables today's to and and the the operational company's non-GAAP to cash investors Holdings' be call, of provides adjusted non-GAAP prior adjusted believes reconciliation Officer. performance. assist Michaels, operating of included may which insight items into are and EBITDA to operational and provide results in measures, them Executive affect will companies. certain turn the company non-GAAP Steve? performance release. to which been the other these with our call meaningful detailed understanding these our the facilitate comparisons that, to President flows we EPS, comparability would

Steven Michaels

Thanks, quarter reporting well some and XXXX and outlook. as everyone, our for as we second thoughts our morning, John. full joining thank year are results on Today, providing us. Good QX you increased financial

growth a delivered the team high quarter, Our and second of outlook. our and our end GMV surpassing for expectations great earnings revenue exceeding

and to balances made Our omnichannel our which our affiliate growth collaborating partners XXXX success strides with retailer partners, and experiences, marketing and marketing existing directly in customer with We've retail integrations significant is rooted strong priorities marketplace, in through relationships execution, profitability. deepening on PROG through enhancing with expanding promotions. focused consumers,

positively a in responding our originated reactivated an new increase to and customers. initiatives, improvement with these rates year-over-year are customers in evidenced Our and conversion by leases

were credit having internal approval funnel. higher quarters. credit Our tightened quality higher efforts in resulted by complemented rates entering our stack, lenders applicants up some This in recent the has in

GMV. QX these I in our as credit shift X remainder of from throughout this believe the to We contribute GMV While mentioned dynamics this the XXXX. convert will initiatives did credit growth benefit for directly as X, applicants to internal we continue doesn't well to tightening

slow in issued traffic anticipated which quarter, late a had We rebounded year. retail GMV to when a most As had in leasable our to of persist reminder, we outlook start in flat reported QX headwinds our a year-over-year April, just QX. the categories we from

of for performance X.X% growth initiatives segment. and low under grow, strategic our despite QX. of I'm better-than-expected Leasing our QX in remain macroeconomic team's we we enhance confident expand. in challenges, proud ongoing single-digit And achieving growth are in optimistic However, our about GMV delivering Progressive

year-over-year to a GMV X returning on growth notable this focus to improvement led positive has comparisons quarters with flat Our to consecutive quarter. of

will XXXX, is to close have will balance, trend balance revenues, ending recent on Brian to the business our of driver has the last flat GMV implications quarter in the of dive primary period the asset performance gross year. While our which leased future GMV the resulted of into in our compared

second the achieved million, revenue consolidated of end high In $XXX.X we of million. range by surpassing our outlook quarter, the $XX.X

XX.X% and resulting adjusted $XX.X consolidated by million, disciplined lease portfolio a spending. reached GMV and driven Our EBITDA healthy a in margin, by supported primarily

Progressive rate peak with and X.X%, of write-off XXXX, We in portfolio was to are be in Leasing expect write-off rates segment. pleased the pre-pandemic quarterly QX QX XXXX. the yield QX the consistent we for with The it

of share reduced was non-GAAP expectations $X.XX EPS diluted our and count share from repurchase our a exceeded Our bolstered by program.

first We the remainder half the for the strong of the how about us positions are XXXX. in of performance year excited

existing an portfolio GMV in door. and me despite that progress QX. strategic accounts. the national contributors our in stable with enhance let our and maintained on retailers substantial number national the space, results active pillars: GMV QX in update key our relationships growth Now results In new in market with increase Under regional in markets. health expand, and growth, retail increase Furthermore, you made we achieving the pillar, GMV partnerships, both and The were regional onboarded grow, ones, and extended regional our of expenses matched significant growth the a across the to showed focusing on development we accounts. which new regional business existing our per doors coupled sales we rate grow year-over-year of with

on call. XX, Our under during XXX% track and grow through the to February exceed also over materially expectations delivered PROG marketplace, full earnings pillar, provided the has year growth our we're year-to-date June

this traffic before, through driving anywhere and of mobile to platform to customers retail anytime and our mentioned app, allows network incremental I've shop As our sales partners.

And retailers with X-day Prime partnerships for last affiliate event customers choices. for week's extremely our Additionally, an was our Amazon Day, more leading example, offer successful marketplace.

it easy life consumers for utilize products. range making we direct-to-consumer our of cycle, experiences marketing, the personalized terms throughout full In are creating to customer of

experience. capabilities customer the automation in are improving segmentation Our investments and

enhance half completed we partnering Under a technology retail in projects X seamless integrations, and Through existing custom and invested e-commerce retailers XXXX, with pillar, create our to of large with new including the partner. long-time one customer interactions. we first

have additional for and We with robust XXXX. of retailers integrations existing back new the a pipeline of half

yielding website, organic By under efforts search Additionally, consumer locator domain consolidating optimization our and achieved as experiences have positive servicing search same our customer are shopping Leasing the results. engine growth portal, year-over-year the store Progressive and traffic applications. in we

PROG Also number operations, enterprise under productivity gain and productivity ChatGPT streamline and our Labs to them out rolled solutions implemented group customer higher-value AI resources internal reduce PROG boost apps on R&D opportunities. and focus technology our retailer and generative pillar, enhance Labs OpenAI's experiences. a of demand to developed enabling to improve on

training our sales internal and improving retailer-specific and customer Additionally, our AI new compliance team conversion rates. materials, platform equips with scales

near consumer-facing We internal will the are value-creating piloting which share for solutions several in and areas, midterm. other we both generative to AI

lease pillar, consumer We portfolio. later and e-mail through In incremental our approach campaigns customer journeys. focused QX, and QX our offers growth. spending with at team omnichannel portfolio, and personalize successful improved segment product. partners omnichannel us sustained a This under our further balance resulted collaborating marketing integration By and marketing our our now of strides healthy level disciplined which high Four, on app and our exceeding outstanding efforts, metrics, revenue our on outlook. To making quarter, include pay customer to cross end earnings allows expand considerable we delivered exercised from achieve GMV mobile summarize, on share. a automate Leasing buy with drove Progressive featuring strategic products increased the to we cross-promotional technology our financial marketing an retail We initiatives in priorities, strategy which relevant GMV of

demand and benefits of the we the us, takes expect environment. strategic our current stack by macroeconomic posed challenges the initiatives offset we outlook by impact the credit tightening from Our of to updated see the above into account the consumer

of dynamic successfully ability challenging and environments navigating gives in to history conditions our us as confidence evolve. adapt Our

in anticipate our of full the outlook We remain range GMV. targeted digits, updated to year single write-offs outperformance. our to within the and to profitably grow QX growing X% while expect annual our We revenue high X%, reflects GMV GMV

on strategic outlook. now growth, more to to remain to Brian share and Finally, return Garner, cash and excess allocation, capital QX continue unchanged, and our call over topic for for dividends details turn and fund priorities the I'll results repurchases. opportunities the our through year of look CFO, the M&A shareholders on we of Brian? expect to remainder

Brian Garner

Thanks, Steve, and good morning, everyone.

framework ability emphasizes which healthy this strong financial Our prudent growth our to strategic priorities quarter a alongside portfolio deliver spending. performance and and demonstrates on our

quarter our beat of surpassed expectations GMV exceeded outlook end $X.XX and high earnings. a high second the share revenue For of row, the we the our Non-GAAP diluted EPS in for per and regarding outlook our us of the echo move want as second and $X.XX. first it results in I enthusiasm by positions how we XXXX. of half Steve's forward to half end

diligent driven an throughout uncertain been the environment of teams Our have macro I'm several and performance. last years, their proud and over

focused are navigating momentum strategically on our We periods ahead. the and sustaining

increase, we throughout Starting reflects driving teams the our with the performance projection and of our outperformance remainder X.X% with believe which a our positively initiatives, year. GMV impact our strategic year-over-year growth. with stride results surpassing Progressive expectations single-digit a segment, are This GMV initial will Leasing have low of exceeded significant made

benefited credit impact supply from of we the us. tightening above of Additionally,

previous was the last down year, material at Our double-digit to the from of GLA mid-single the period a QX quarters X of balance XXXX improvement low end to declines. of X.X% same compared

revenues and declined remainder the QX driven XX-day revised implied gross expect QX, outlook. QX year, from larger-than-expected being We better primarily turn primarily size. the partially positive the Progressive of million during expected, by X.X% Leasing results. performance contributing earnings was to by for same in $XXX.X Similar due compared to outperformed asset Progressive contributing $XXX.X period throughout segment into Leasing down balance entered lease of the portfolio the The as revenue revenue QX million early XXXX offset as improve the than in the last purchases growth the GLA year. portfolio quarter, of to into our to we higher the to our X.X% balance expectations QX

their option has levels. to customers returned Additionally, pre-pandemic choosing to the percentage exercise of purchase XX-day

compared in the is in Our merchandise XXXX. The QX compared XXXX normalized of provision XXXX, QX purchases for in X.X% pre-pandemic of of lows by lease period with XX lower margin QX basis of of consistent of X.X%. historic to XXXX was at primarily levels to which was QX, period gross write-offs XX.X% XX-day points driven

QX quarter the decrease be results last expect full range Leasing's annual compared year. SG&A quarterly our $X.X in of million was and million, point to $XX.X Progressive X%. within X% to a in million targeted of QX the be same to X% $XX.X write-offs to anticipate or year in We high expense

XXXX. points As basis XXXX XX.X% expenses in decreased to XX a revenue of revenue of year-over-year percentage by SG&A of of of QX from in QX XX% revenue,

$XXX.X XX.X% improvement restructuring this GMV. Adjusted reminder, was maintained QX Progressive $XX.X high strong year, actions of this by offset is quarter cost-cutting the in at to segment. The adjusted the quarter XX.X% to in these to EBITDA in revenue their XX.X% margin revenues year. segment million in along XX% options. the exercising Leasing and an revenue, million primarily customers QX Consolidated of of and a in our entering the EBITDA adjusted same million XX% last we the $XXX.X Leasing of of XX.X% due Progressive XXXX. spending. margin taken were $XX.X of slight As segment Despite consolidated and portfolio XX.X% for of investment margin purchase QX in marketing, growth, compared compared despite ago QX slightly in target $XX.X decreased and driven to smaller sales $XX million to million measures, year decrease drive disciplined in QX XXXX Progressive have the from by actions our annual was increase a GMV XXXX EBITDA and and XX-day aided of revenue to achieved with The the a the Leasing end our technology period. revenue by restructuring for million

quarter, of months with of and a our Looking adjusted X.XXx million cash the average of gross million of trailing dividend of stock on ratio $X.XX in the revolver remain shares of net weighted repurchased at We at $XXX during our $XXX per XXXX the at million a $XX.XX the cash share. quarter. We undrawn debt quarter in XX X,XXX,XXX second We $XXX.X per balance resulting price ended of end sheet. share EBITDA. our paid a leverage in quarterly And we June. common

outlook, our which and I'll third release. recently under quarter of our program. year the We full million have repurchase respect remaining morning's share key $XXX.X of $XXX on was this remainder revised a for now on million view our earnings a the reauthorized provided touch few With aspects year, in

observed remainder positive trends to have We date. are optimistic about the upon we based the XXXX of

We the into and enhance grow, carry year-over-year. expect benefits us the is will with the the coupled This year second experienced the tightening believe half second QX to in into detail. of believe regional growth ongoing GMV Steve that comparison end the single-digit expand will from both market by our addressed will credit assumptions momentum continue GMV and we half and across high progress share year that help with with strategy of across the efforts our national these accounts. We gain underpinned

GLA in the the the As has and benefits of and flat of XXXX improved balance, remainder half increased first year-over-year I improve the year This going it revenue mentioned the into revenue which reflected QX of year. in our is in remainder is the the earlier, GMV year expected performance to outlook. over for expect improvement GLA roughly

As the have to yields. expected QX levels growing GMV, comparison our we the portfolio due last XXXX to XX-day Leasing of difficult year. will remain gross of the while margin targeted below-average Progressive manage segment is purchases performance to within a actively QX for

$XXX no tax approximately no meaningful calls benefits leasable current changes no billion, $X.XX in the adjusted of company's a non-GAAP assumes soft consumer unemployment consolidated the to effective the EPS from an from posture, $X.X of for $X.XX. with EBITDA to our for be and the alongside million million non-GAAP for credit XXXX base, EPS Our of consumer the range outlook and in difficult us in of decisioning rate goods, revised for to share outlook above demand environment increase in operating of $XXX of range repurchases. in trends $X.XX for to rates impact This material XX% additional tightening a continuation revenues billion range

for and execution, better-than-expected a quarter's business. growth, and this with strong maintained to combined healthy portfolio a collective trends believe favorable efforts, our summary, our expertise that We In we delivered credit is testament performance strategic are spending. disciplined GMV

flow questions. through now shareholders free Our call the Operator? share to in over dividends capital us PROG allowed your I and operator generation Holdings, return appreciate will We turn for to and cash interest the to repurchases.

Operator

line [Operator first the with of Instructions] Our question Capital Thomas Brad coming from Markets. KeyBanc

Bradley Thomas

Congrats want you drivers the drivers versus is from about hoping quarter. of execution a us you more of forward some the And business. first color some some here little growth the or of maybe going on thinking you comes they're about the And give just extent, just growth some GMV in talking in retail the the quantify from I initiatives here partners it tough Steve, in them How these the seeing important was even to established still the in bit jump much in I balance that to could how times? much of have, the how year? have? the base you're improvement

Steven Michaels

about and then quarter. the -- I'll pretty about talk the partners about your it quarter, goal balance partnered few the of and that during get time But on were some the retailers, initiatives the well year. our existing team's we able the to over second Thanks, strong and was the Yes. we GMV Yes, throughout we're what we're quarter. can consistent have with into talk with the for what's working to for GMV, been line baked we and pleased performance, Brad. a outlook the question

for retailers And within team going with existing a also retail we So thus really called renewed remarks, momentum business. marketing regional the with encouraged the in getting the It's we're with it partnerships. pleased as I out our a of help that's we're as in partner that we've -- direct-to-consumer and hand I'm say, our and had focus by that would form in been as in progress to both far, marketing in prepared made as us, us the the area. restarted, it well marketing. productivity our The just

are -- and play of stack. in quarters. We picture. dynamic supply about the did see this the tightened us also previous more one out the apps, was that just bit those and of than it's funnel just it's little dynamics the We quarter top credit apps above a not supply called of And at not in observable evidence part probably

continually we have those onboarding process from in the friction And convert DTC order or We not funded improvements installations had to the only in a remove to work to the but there. retail apps and leases. improve area, direct-to-consumer experience into few particular, also in

-- in of execution they're top the comps. noted, with you retailers, our pleased our we're still and many down So because facing traffic in down as

have growth so this And to pleased be that. is with -- we're to able

did to -- these guided growth. good retail by continue evidenced regional we and the high retailers we've third forward momentum we the add -- space. the that the some and pipeline expect GMV the in growth. to to even mostly look fact -- -- singles SMB in quarter as space But to in the the in somewhat continuing a the We'll got and We accelerate for

Bradley Thomas

if the That's follow-up I helpful, of landscape. Steve. can ask about a And sort very just retail

I filing plans with close at least and think stores. Conn's there's some for of today bankruptcy news to

day? the a and someone landscape there how the away customer to roadmap almost your more that just have take used you don't guess retail every bit where obviously with at retailer? closed You with future. in bankruptcy changing risk to stores with could like of of goes them continue be about partner them. trying talk I There's -- you you're might little and were this advantage themselves the all. you in situations is be how other that we at be where And if relationship the may retailers is navigate than directly to partner may question believe Conn's you like I I a

Steven Michaels

we with much, it just over partner that dynamic thing not say, a before right, Yes. currently, and better I've on -- Thank years. the that would clarity, it's you. Conn's important for sophisticated, and about more And of gotten do as is an And environment. last you're much number we've but talked I

customers, from, AI try want their into they what we good We're purchase So to wherever may onboarded we -- other have predict and what efforts have where visibility on they are personalization and our next. habits been. working

partner going sale. customer, we to our your store at these say, and But in area we've preferred maybe could in fine fact, to. we they partner you missus got we a -- you'd closed, create that advantage business some that area your some the fundamentally, can stay our like communicate network. more incentive offers in for with could that, customers activity directly of of of with retailers direct or sure in we other type has that But after to take make we And promotional type

very in it's we environment, with more number this I muscles touch a have. those point have So the we good that be we'll years. of than And probably last flexing dynamic think

Operator

And of with our the line Cowen. Hoang next coming question Nguyen TD from

Hoang Nguyen

I little from the on the incrementally It talk it on wanted more that bit. tightening just down Congrats like very about are lenders your guys trade looks positive a strong quarter. to above. you seems outlook, credit from

to now, versus is little X gotten So maybe things better true. a we when ago. maybe I environment want inflation right just coming down, you the about bit whether maybe And that months is confirm think have

So I I would think follow-up. sustainable a And do mean this how be? have you trade-down

Steven Michaels

initiatives but down incrementally trade we've have well It's with it. Trade about it. agree just recently that the about that and execution factor And it's on would as in we're that roadmap. I things characterization a our Well, positive, got down. as talked we we is the are that deployed Sure. your not about

it of that X, some some of it We a for -- in of could of more us. We efforts But for customers approved kind with number happen. were customers provider, partnered Prime of for us. of dynamic call stabilize they that were like And and with their mean into is us, to fine, really that more which were they by a that started and the and less was the of see them reports payment holiday it their braced facets, for mean funnel years, And or in all some read does doesn't appropriately DQs us, we that's and we from tightening observed stack it, tend It the evidence providers. needing coming that I'll and XXXX, plan Prime of see to remember, but part. a stabilizing. You'll then a thought public we have retail being were it necessarily because in plan. environment didn't above couple the need a you'll on were are maybe positive the of providers payment

So I'm increasing an calling not for intensity an or benefit.

are for tightened don't to of conditions had right we I to are but more conditions pretty the the things front. least and top a year. will this not I around funnel, But -- the feel have that we're in to for for continuing. XXXX. the think bit. the tightened impactfully the rest here they're that our good what we're the is for of the little the doing continue We'll going But we increased stick market an that's about but at execution impact tightening, on the tightening calling believe think now, that view see tighten, we're

Hoang Nguyen

been strong there. in about like you talk mean growth about -- your marketplace, converting guys mean, PROG mean, into how integration very And I have I historically, can marketplace it. you I PROG Got direct a relationship a maybe mean relationship? successful I

Steven Michaels

are for another is And of growing the marketplace country, the and It the that's value and just us, environment back started area Its we partner to don't that and retailers retailers it into affiliate is and partnerships way driving with we're morphed Yes, origins it's retailers, really and with that to evidence on any you conversations shop specifically through because into best another the retail I our great with, relationships, the demonstrate due traffic that partners. which for starters question. with. already we partner have And volume with that it our but coming out the provide customers helping to retailers with we some retail call has conversation some a had us in the we it have from we quickly. an started can not of to exciting marketplace. had and very going tell -- to the really

call there's through been conversations to that their had call that already, from on line volume customer fact, one-page get a a retailer talk have one their coming we got having from agents and we with service to side a them In been they for center wanted but that enough that our we program they got about like call started the tearsheet biz-dev then too. it kicks saying

encouraged So our DTC volume we're complement about biz-dev also of just a but generally, the as partnership the efforts. to motion

Operator

line coming question And with Griffin James. Raymond Bobby next our from the of

Robert Griffin

on function always the contributing? that quarter, the team you is circle it over were what and at talked working actual thinking been to you've the maybe than GMV this Or maybe when would performance unpack quicker sooner? rate saw upside impact maybe quarter. you a to it just what maybe the a guys these But these it greater a that forecasting greater wanted back was a slightly and different the from on, this guys was from the Steve, way little I having the about and than be of they're bit the impact initiatives impact investments finish line upside ask Congrats more. initiatives a

Steven Michaels

a want quickly never line I of Initiatives Maybe the little get them to. question. great as a as over both. goal bit it's Yes,

if have say make would never retailer it sooner. obviously, I resources. requires the prioritized that and partner with happened to it gets we sure it But So tech

we GMV or or will, -- had it's So particular in in done think is results that I've initiative in scheduled business we a a is had time dangerous, over -- particular learned you if bake you it's quarter. few get the a month difficult things an what to to from or that

been by by we from baked it's because And on you burnt see but QX we in upside QX, may for that so some in before. thinking us map the road have the conservatism haven't

through So got time had got to basically on opposed done being faster maybe, yes, than that, things some planned, they we delayed. means which done as

those it's funnel it's far to coupled I with coupled down. customers that and be I in a and just this maybe isn't than unpack time, that dynamics stimulus they during cash, necessarily and with expecting, because be our paid for probably margin, slightly just general a and payment need more last as period, items, hard impact looking mean, as And that's plan could they're better on market payment that that yes. plan. and the trade the app a could of -- they we It already time think they're it bought -- could the were

So it's were those apps. the with initiatives got effect met some and a kind across multiplier that more of we goal line, initiatives

productive. more was it -- we're So

Robert Griffin

Great. maybe Perfect. X then that. I appreciate And guess I other quick ones, one for Brian.

give out buyouts. Is how year through kind dynamics the the that And we in leases being on is how the of of some standpoint? versus much XX-day books? function just rolling think roll high the it Or year of that? from behind rest off a I lease write-offs driver you is revenue Or what merchandise then see the Just the last gross watermark, a -- you the some called much the pressure any can pressure might color just margin XQ? in -- how

Brian Garner

generally Thanks, you go respect Yes. With years, QX bled the QX. has back into last the down to write-offs, few Yes. Bobby. as

propensity your question and from benefit their some incremental seems higher to them seeing be So lower to are typical of to of for them about in when what's it towards these playing observed than what talk and into your lease. trade purchase we've while of -- unsurprisingly, just the leases above we're what many a down goes and a think providers QX second the XX-day the has QX us, stages, seasonal credit than electing or with tendency is there we part perspective. we're steer early I But from been seeing the

And and it's to see those. or -- -- the write-off those, same time, and from you may have impact early, we're so at that's but some going watching

perspective, is don't and that. of to we'll higher leases. about or reduction a margin to into from concern and on anticipated gross The QX towards strong in a tend need getting little more. XX-day to a QX yield bit level from we gross So any overall that They very margins, skew appear our pools, where skew is from these have watch to a profitability XX-day these collectively we be baked sequentially standpoint just to still from

days. and So to from -- your perspective favorable that's going going XX more trend that's -- write-off help a to but likely higher with come

there. So seeing that's we're what

Operator

coming Chukumba from the with Markets. of Loop line next Capital Our question Anthony

Anthony Chukumba

Congrats well. if a wanted on successful cross-marketing get to we bit Was as -- the strong efforts, those cost more quarter the marketing just about efforts. little color could see

e-mail. mentioned You

can you how on out? Like how for Is it like -- exactly to you -- e-mail the I are sharing because is If kind color just Who's the I is bit any kind that little of -- the dimensionalize of sending of that information mean, that. [indiscernible] more with want retailer? us? a get the just

Steven Michaels

partner of team. kind our lot it efforts they really retailers, lot comments and retail an get marketing marketing partners a their view of But team team. come forms. of of and them of I'm positive We lot as proud a kudos relates as our how about to The marketing our marketing with Yes. the the a Sure. of in very from extension

that reduced from database. our message with we about We're promotional your question, database the be And from can hit it always promotes. could like very a through so could that our a e-mail campaign be partners. co-branded a but be IP channel it It could us the -- promo to of conflict, a retailer comes one careful

a of a a mailers PROG leasing the we tremendous and retailers mail got has promoting does particular retail promotional retailer partner we've from could efforts. piece But other different that we And us marketing Perks growing previous It and program they who out of think and we'll X e-mail of in Week have amount calls and their that promote. for where the name -- instance, brands on have item talked have that they with for be each a in piece offering the another goes also or part a program retailers it partner consumer. our that I big we've -- our have about them an is

things, e-mail. which a different with which And of just done SEO and It's DTC of marketing, done is some it's efforts well. takes just other most it but and also and display as is digital forms. our not partner lot marketing of So from

Operator

our Vincent BTIG. with Caintic question the of coming And next line from

Vincent Caintic

I great wanted to also echo results. the

as being on question, past, of discussion wanted national and like as think growth. some regional being to your regionally First account a competitors know about actually I the PROG in of the focus -- more account we've think investors about Holdings I I the focused.

interesting So on it account to the was side great the growth Holdings. for PROG and regional see

sort in you your there? opportunity? an you're about go? talk we could so that efforts as detail see What more And you be helpful. where If of expect up to building what That can would

Steven Michaels

to very and a the with the do, regionals there a super lot bifurcation be and players. then recently. I side, way also calls the call the set pillars that Yes, or split a largest what well Vincent. you tail and into the regionals, the on bifurcated. there's SMB long think we and Thanks, out the enterprise and regions described focus there's ours. shops. regional been our with within space retailers certainly And been Yes. regions renewed SMB regional different business a is of it, then from can like or particular the that of of focus The big certain space of the support small and for And -- I and really you business the it's compete There's has space. a competitive it's a there's motion kind But way business, in the partner business about

we So had a have it. renewed focus on

maybe regional We've prepared mentioned as we increase there change productivity an and had was that space the the in a saw made space. focuses regional I a we dormant, in but saw per productivity that in as the success it on national in in as door, potentially business. And in that remarks, space. as in reactivating specifically well doors completely the the well, We some we quarter, kind doors focus from gone particular leadership lost had on In attacking had or of there.

the expect common. continue We competitive, are a So add to that. the did fairly partnerships, is we and that was in regions -- there's But to new very -- and new past, a key. the few said I've all do churn as

without So if absolutely force increase that these ROI sales we we've so when -- GMV, inside far gains relates resources that. it opportunities outside. in far, do -- or high that and we it's either to achieved But identify early, but really team to going after team the increase to having the regional a we'll as

Vincent Caintic

separate of PROG it the super your to going saw on is the broad disagreements of do separately those been after have regulation But one Friday. is second That's their they competitors, from affect what And the public. is there's to -- of Utah your question so I I we've a maybe discussing. in think, get ago, CFPB one and how or But they're CFPB then X competitors about Great. to relate made we another days hearing Holdings? regulation, been And helpful. wanted your thoughts think kind they topics, this and how extent topic

Steven Michaels

I to seriously. alone in. you read activities. to we're generally have where comment. customers, future. very mean, we're that solutions which the we can't take hard to we take But our provider in hard let be activities, as litigation It's led really don't seriously, imagine, the -- to the why multiyear and litigation take that We those of comments. happen very and I in we that flexible something the Yes. We've could We're and what of on up in, closely a transparent that is I aware not complaints, very work that investigations limited proud predict monitor guess, comment but can very of we're our and it's

as such. action would CFPB happen say at is of as all a whether state any time. that written time, us guess it of be far And level. be relates the lot to the is PROG or this Holdings, or notices way we're I not The they received federal and at aware the investigations I level, indicating regulated haven't inquiries a of level business. this It's -- at for states is. any These been to As the long where highly a

Operator

like And over to this remarks. turn Steve I'm at Mr. the the closing Michaels any showing I to now no in for call further queue back questions time. would

Steven Michaels

I'd Thank PROG. to you, for and continued this joining in your morning and like thank you for guys again interest us

you October Our excited look forward in QX and a great our are with to coupled hope performance. results, have with you We and to again a executing teams we about always healthy well, return accelerating growth, our portfolio updating we day. are

Operator

gentlemen, conclude for your Ladies today. conference for that and does our participation. Thank you

disconnect. now may You

PROG (PRG) 24 Jul 242024 Q2 Earnings call transcript