ROVR - Earnings call transcript Q2 2022 | Rover Group Inc

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Operator

Thank you for standing by, and welcome to the Second Quarter 2022 Rover Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like turn the conference to your host, Mr. Walter Reddy, Vice President of Investor Relations and Capital Markets. Please go ahead.

Walter Reddy

afternoon. Good joining Rover's for earnings quarter to results. us you second discuss XXXX Thank we the close, be our this website will In call, discussing on Investor issued after at investors.rover.com. available press today results the is market which our Relations release in announced

Chief and this for website replay after Investor Officer; call Executive website being President Finance the a me from Wickers, this Brent Officer; Investor reminder, Aaron Easterly, live this our VP will and shortly is our afternoon Turner, call As recorded Officer call. on and webcast Tracy is Co-Founder; and Knox, and being of Operating Chief from Relations Rover. is available With Chief be Relations at Financial Charlie

that within Litigation call forward-looking continue, make Before we and believe, management On of words begin, will expect, similar the expressions. the may, Securities harbor will, I'd statements provisions Reform of Act by the this XXXX. assume, everyone certain identified like ongoing safe remind plan, to

quarter international assumptions conditions Forward-looking marketing and assumptions are percentage and the risks, uncertainties initiatives, and statements year XXXX that domestic section unknown statements. particular, statements and implied market in cause and guidance. that GAAP those beliefs and subject files the future and Factors to and and to in differ relate our its quarter events and of and risks SEC to These macroeconomic disclosed filed uncertainties, could Risk first statements those obligation Rover projections management actual review subsequent Rover revenue, financial only expansion XXXX, as non-GAAP a XXXX investment these We its reflect information forward-looking opportunities, impacts, These will speak Trends current future the with forecasts XX-Q and Form those no law. performance about the COVID opportunity. our industry and to market share, statements XX-Q. May on the and forward-looking XX, described forward-looking today. and XXXX that investments that known or or by financial except third are from expressed SEC quarter and other required forward-looking circumstances, undertakes platform the and market of Rover, full specific statements update Rover's expectations, such encourage to you to of expense be and as estimates, as with XXXX based second regarding performance, our of strongly results or for in on materially in events as marketing are

place forward-looking future are not should undue our reliance You on statements of they not as performance. guarantees

measure Finally, reconciliation GAAP and Presentations our we on QX unaudited the GAAP and of the XXXX CEO. Aaron of unaudited comparable provide otherwise that, considered financial I'll get provided today's measures a The non-GAAP reconciliation to call, posted non-GAAP Relations News supplement, measures. the Investor audited website. discuss most course will is which financial We during the and section GAAP of non-GAAP under the will in to compare Easterly, measures. the to XXXX with QX noted, And the be non-GAAP should all we as metrics over call let's financial for not substitute or to Co-Founder superior Aaron? Unless metrics turn a in call. measures started. Events

Aaron Easterly

the few then that revenue now. impact I and financials to you guidance of the quarter conclude will Overall, give everyone, At by by a take the begin other Tracy and Thank another I range. provide highlights both quarter's Rover provide quarter, XXXX you, some investments. on commentary to right we through COVID are joining today. results, headwinds, guidance end you, walking and and our turn market adjusted bookings Walter, it detailed questions. solid exceeds over from our point, our and business EBITDA. had variants high before improving on details will earnings other our potential then thank the Despite us seeing Brent macro with second the more will discussing we and what for in high-level

booking million Second Total $XX.X XX% quarter $XXX.X XX% was up was up to million, revenue XX% of year-over-year. year-over-year. XX% grew which value was adjusted EBITDA a $X.X increase Gross and were bookings million, to million. $X.X

financial Going excited are beyond the fundamentals. we results, underlying about certain recent

mix year historical XXXX value QX, of revenue per cohort, services, In less revenue has the date. million, are higher up $X.X our the this than well highest acquired were also support customers year-over-year. lower the which book Despite reached the and norms. above customer is the of to of cost First, relatively daytime XX% trending repeat

investments helping competitors Our our platform, are our on technology and to collection, the XX-year second, in insights to interaction great the showing continues reward and through of identify value relative this and custody; is proposition shine. strength data

are continuing markets. to largest our addition and share believe noticeable we strong In numbers, to posting gain we bottom top that in line

expansion into to over This more the QX For from data, mix growth Rover XX-month than is for versus with to last up XX growth third, households. spot our from X% this its largest QX period; ending for largest player markets of particular of months the contributors. businesses services XX, June just sales trajectory penetration prior and customer due with the X.Xx example, continued from pet international the of and cat according XXx non-U.S. GBV quarter. XXXX levels, U.K. in X% our increasing XXx rapid the Canada had of the aggressive is One being third-party European acquisition similar bright U.S. have driven GBV to next year, over

investments year, of onto parents European platform. made a the to cat series our last designed bring Over we more

in was GPV that and broadly, to Spain. such More are markets the as prior We see in payoff. Europe seeing period. incrementally invest Cat-only year Xx opportunities we France

to international not effectively compete that support value, of it size to expect only we invest smaller investments versus the technical been driver data U.S. comparably. enterprise made but said, a players [indiscernible] leverages the that have And cost-effective be unable to business also Our we have business. and long-term to

current we position for the array in greater we a to Rover Finally, beyond a pain parents. progress in us solve opportunities expand services. which has our points the to creates believe of ecosystem, pet for marked unique saw laying modern groundwork

the build, offerings. was While focus over core scaling been most last business, partner our looking formed or development our have year and to team of our expand strategy to at newly opportunities corporate our buy

Overall, on share front we this remainder coming recently We offered. we extensions of and dog small prototype training single-digit For that to year in calendar the example, are of expect test quarters. the a dollars to in platform. millions low invest acquired early-stage more plan to the

striking What continued a market unfolded for communicated caution end delivered previously of full quarter we have the as continuing the half to year back revenue July, While the our year. guidance. signs seeing lower share, some quarter of into positions towards observed we the and and gain we're us also in

their the January were and and Delta cancellation historical approaching Omicron of during in XX% and during During of this materially rates roughly cancellation higher year the February. way. initially last July July, July, than August quarter continuing second the the after in saw rates we through In Wave year have accelerated in dropping norms levels are

been hiring the demand. a Google in new a above customer U.S. still QX in the we outsized significantly noted volume is of reached and marketplace in growth make to the the to and position long-term market in on to the we've and Additionally, outlays. for we time, and growth category our months. worth XXXX the all forward our while for possible positive growing the to look revenue months, we Most months. In rates seeing pet significantly slipped largest these the in drive of unconditional trends care query XX continuing marketing a profitability, XX dynamics conclusion, markets, a passengers. We though some just to are slowdown starting gains support The consistent of evidence approximately compared it's Similarly, from are air It XXX% desire public reflecting has our it adjusted slowed experience everyone of EBITDA, gained the product pet. and year-over-year ramping enterprise for XX Out prior of levels. we our share, keywords mission decreasing with online investments adjusting marketplace. our some love marketing increased of over last are our XXXX, good slowdown for as to entering world's our anniversary value. year-over-year to that balance In negative

the look spend. on to for will macroeconomic backdrop our judiciously to execute hand provide like I And our the and call bookings, with to operational and mind. would on in details performance more Brent now expand We to over business marketing opportunities and

Brent Turner

the by the performance the call. QX. and Aaron, bit everyone Thanks, in on more regarding I'll adding start a greetings color business first to of

increasing all-time As record $X.X bookings quarter XX% end especially With being year-over-year increased we rates of new of customer as to pent-up another quarter Rover. customer from the during worldwide in XXXX, for when QX Aaron July observed incredibly In and QX, were strong increase toward saw headwinds, that an organic the new we and total mentioned, million, said, cancellation XXX,XXX, customer demand. rebound acquisitions XX% demand softened. rose new an

basis QX acquisition U.K. rates measurement its increased mentioned the also the search largest With pandemic cancellation end of from on QX points and XX% ongoing testing of ROI XX%. and range XXXX, revenue, sequentially Our coming higher and by Canada XXXX on In with roughly social testing, percentage video, growth during to the The marketing towards rate, from compared up new of absolute marketing to driven our our channels. This was previously QX marketing was of with XX% still numbers XXXX from the top seasonally a was higher QX upgraded channels. business of non-U.S. focus flat XXX similar impressive with the an return we respect adjusted long-term nicely customers particular spend of XXXX. rest to grew Europe. percentage the and and non-GAAP expense from and

As these evaluated we channels. efficiency have mentioned to plan previously, of the marketing scalability increase as we spending and both we

we new our and our implications acquisitions customer pleased results over drive for are with like the We time. to of QX, efficient ability from their testing QX and

and and not However, observations COVID be to through in June may QX, these based half inclusive the this scaling we of expectations second at conducive on the our that investments macro impacts time. environment, believe

of context marketing second expect for our the a to trend in current a As the we revenue as result, expectations, percentage lower. revenue of half

were marketing we are to pleased a our new While we in make XX%. progress initiatives, which QX, increase our with of repeat continue customer for bookings, $X.X million also year-over-year

As our products customer and as to experience. Further, [indiscernible] a our quarter, efficient way we the continue existing invest to to customers leverage channels in invite platform. discussed back we to last cost continue

create great improvements new Our between and ways testing apps improve to platform's pet work to parents and matches our ongoing includes usability ability providers. to our care of

We safety excited a recent are in of about trust our improvements number particularly and capabilities.

by walkers susceptible For example, of notification to sitters and to rise. for believe the our improving parents find issues introduced we in increasing product offering. temperatures service, heat-related breaches and will values sitters We mindful continuously pet when and Rover have be

with investments the new results pleased strength and through of walk this of well, are continues execute the Tracy our financial customers now quarter. hand and to results Rover building performance. our attracting We date call our over to to to the I'll scale.

Tracy Knox

otherwise, I'll period second the comparing begin Unless quarter of overview results to second same our XXXX, noted providing guidance. be today followed in an of for by XXXX. Brent. quarter our Thanks, by results financial the I'll

stock-based cover will $XX.X compensation up reminder, was quarter a expenses XX%, As quarter of non-GAAP expense. while GBV excludes second Revenue up second amounts, was XX%. in million, $XXX.X discussion million, which the our

bookings. Our bookings, but already continued I second guidance, exceeded value a by Brent in and little booking average our color quarter in driven strength on want ABV. discussed give to European our increases revenue more

QX This a new platform be increases Second growth relationships with provider price are more providers driven the fully pricing up in result pet increases last QX their continuation per higher when providers viewing relationships billing XXXX, a earlier with newer legacy unit. those seen We respects has believe rolled can than extended relationships in the price newer of is by which the greater significant more our agreed state increased as parent and overnight ago quarter a in believe pricing, more increases of being began service ABV started growth price will care year. while the in skew that by per relationships with versus the this with year that expected a We lag customers. along These reflecting LTVs. towards retention pet rate out increase upon as due set longer-term providers ABVs, solid noticeably $XXX, of price to services. was feature, our increases of XX% in provider average on initiated

driver, to leverage second or was year-over-year was of by revenue in the XX% as certain was are from sequential of the channels and largely period quarter. Both first $XX.X expenses QX prior XXXX. our in as of quarter the testing roughly $XX.X increase Cost and compared million revenue, as XX%. $X.X quarter were of XX% marketing developed marketing Moving sequentially our and up improvement well or year portion of primary amortization our revenue million nature, second the marketing in driven achieved in revenue XXXX. the The cancellation accelerating million marketing fixed expense of XX% XX% points search and to the software expenses. Of QX our to percentage technology flat of and strategy more expenses were QX the by platform quarter driven in that we note, revenue fixed up a rate scaling up during basis of or XXXX internally was higher Non-GAAP of investments, ongoing costs implemented XXX% from costs. namely advertising XXX we saw that spend, the higher while the

marketing described XXXX, of we of half expect for of an basis keep year the Brent first to second the we earlier, to versus revenue percentage our As plan half to XXXX. but elevated be spend on the lower a relative it absolute do

revenue compared XXXX. million expenses in XX% of or quarter operations Second support QX non-GAAP $X.X flat of to and revenue, were XX%

to continue of XXXX. million in in were XX% non-GAAP percent or leverage product expenses, development [indiscernible] revenue or revenue compared $X.X which to see We $X.X million of QX

or percentage of to to basis to the a QX needed scaling expense year-over-year of $X.X into general XXXX. public transition XX% increase the revenue support revenues decline non-GAAP investment million while quarter revenue XX% Second of is and result or compared of due in in a expenses million from $X administrative The were market, the QX our is on XXXX. our

of of XX%, investments In in to quarter. of $X.X generated million $XXX $X.X adjusted XXXX cash cash, quarter. $XXX,XXX, resulted The strong professional primarily from sequential from the From bottom paired decline million margin or addition, EBITDA strong a during in line was there million from a up perspective, revenue a QX In improvement our of adjusted efficiencies Adjusted with results from operations, business year. $XXX ongoing from EBITDA is from EBITDA summary, due decrease in was liquidity expense QX. operational and in fees. expense million QX the cash total last a we during delivered up equivalents and the and our strong of top

Now guidance. turning to

the recent new headwinds, additional Aaron the demand, to our elevated our guidance the for low articulated, range full guidance context of The end Aaron softer further the the Both revenue high year our customer updating full inclusive of are the revenue Brent of lower incremental end XXXX due assume assuming by differs are and guidance and modest Omicron tighten and EBITDA to our end year end guidance. we impacts as cancellation Given from range to our waves continues in previously rates no to the high and low the reducing of provided and adjusted to deterioration impact demand trends. COVID macroeconomic related described. and more of macroeconomic

and For million $XX adjusted to the revenue third $XX of million. quarter EBITDA of million $X XXXX, $X we to expect million of

through to which adjusted full the note, now Of in ongoing in and year $XX million to million our proportion EBITDA following: point additional expand that, to rates. single-digit revenue shift guidance $XXX EBITDA rate EBITDA elevated marketing quarters. approximately $XX expect in a the the of margin; And we approximately primarily coming higher-cost guidance, $XXX revenue the cancellation the marketing adjusted midpoint a the is finally, improvement EBITDA. the channels. drives updating adjusted choice in XXXX, the X within by For invest prior service our proportion including revised million, at of second, to higher are million mix initial offerings forward, and over The X-point of our revenue a flat driven in of paid our of in XX% going XXXX higher guidance adjusted change to steps a a be increase cancellation millions first, and would and

have and periods pulling back it that While in we aggressively believe benefit adjusted and cancellation as payback does an impact ROI EBITDA to as margin future investment that investments optimized the term, we positive during enterprise we have near value. increased marketing rate did will for in XXXX not our

are intend longer-term year-over-year for adjusted EBITDA to to midpoint this margin projecting impact In the the be guidance. adjusted second of and of at for be invest would addition, items, margin we EBITDA half are margin longer-term path without the these Without solidly the the would the our demand, approximately we opportunities with in Furthermore, line softening that midpoint of prior excited our of we the goals. on in. flat now year, margins

reiterating Importantly, business. margin for goal we the to of our on XX% commitment over our longer-term core are delivering

to I the progress to I team, it at as continue and all retirement. it announced part Q&A. to our up prosper truly Rover, have to watch I'm previously for for Operator, can XXX% positive of and role Q&A, an to by time months adjusted amazing we've transition Q&A? as continue you impressed open company, leadership that, him moment I transition my executed turn as again. thank I part grow. grateful generating I'm a growing our for XX made advisory we'll public been excited and including continued our to especially support EBITDA. XX a for Charlie be your up open it over as to months revenue and in Before my Rover process, With you stockholders last help want employees, and final the to of our Aaron the prior take

Operator

Our first comes question from Instructions] [Operator Blair. of Ralph William Schackart

Ralph Schackart

for Good the questions. taking Two, afternoon. if Thanks can. I

just the terms First, of rates. cancellation in

travel you if attribution could some called curious slowdown air sense that give you in of Just to out.

I just some occurred of of pet and being providers. versus some consideration by lot increased think environment the QX on a that maybe macro of pricing the tougher increase also a end towards

the follow-up. curious on what's perhaps I having have Just you if some impact? And pronounced give then thoughts most a

Charlie Wickers

to Good to during Charlie. Ralph, did this the With it regards from you. cancellation increase is hear rate, quarter. the

an quarter the progressed, saw we as uptick. So

think we It by X flows do from is tease partly see those with that correlation on partly continue we pandemic quarter it what the so driven saw And those well we ebbs travel a well. to definitely is hard to was apart, and cancellation as as front attributed X as what on went to the dynamics. as seeing we're the but

Aaron Easterly

Ralph, this Aaron. is

of Just in to communications the that people or little track add on through reason things of the do the period. that number attached to We tested a increase that saw restrict during they track We platform. and we positive themselves the one the messaging that a it. said is And for goes cancellations marked bit. to

decisions in of So while the the that. overall to this death do With It's we've is the the system. affecting a portion we still looked are the at for to of travel. not in sitter quite possible rising a dramatically pricing, economy pricing people's that bit significant detail U.S., broader in see regards

said, as to if higher to food prices look feel see prices prices people stay. and decision people as [indiscernible]. the at impact in little That marketplace, There's to book prices may regard a any, when from energy are proceeding up, economic book. up to correlation, our on we go being don't a with continue we as provider any go So some

Ralph Schackart

really color. Actually, helpful

there It you switching international. metrics. good seems of growth kind like maybe gears gave to good some Just and some

is maybe talked all what's Just that growth? terms just marketing. just I some curious, that of in work increased coming driven Maybe little hard together? color years think you a of

Brent Turner

excited We're about generally. international for Brent. about is Europe. We're excited question. this Ralph, Sure. Thanks the

our generally. we one bit a the think could be particularly the they I year, in rebound and than did of that given here Europe, later -- that's little this in States United things opened

with to one We in a where at think in hard we've think point our our we work, XX% ahead are into of a some blog unaided of out the XX right U.S. level thing the think driver awareness, and good job the some our where investments awareness, is growth believe a your there. was we of bouncing that particularly with that to try over of I done get that, to and business helps of most between rebound around market is think XX there we bunch in of now. of metrics about of a We increase we well is Europe. maturation nations growth scale. PR did explain and the ahead similar that aided well the And

Operator

Ripps next question of Maria from Canaccord. Our comes

Maria Ripps

to follow year up guidance. full on your Just

So [indiscernible] perhaps you users user in to in is maybe to the platform, or highlight any else new spend specific to there? or in per share can consolations markets user regions addition anything retention there terms of

Tracy Knox

U.S. to say of had XXX,XXX, and Europe, the our going of perspective, we on last Europe, a that think terms than to new higher From new year. was laid a an seeing LTV seeing in high this I just cohort the new strength all-time did still which is which ABVs combination And customers. customer volume also I platform, we U.S. in we're Brent out, we the seeing was strong much or users we're in but quarter are

retention, yet. customer projecting our stronger like the and so -- look these we're and based on yet, we're And that LTVs cohorts seeing best highest

Aaron Easterly

actually is an last more number XXXX in this of on in the to passengers. July terms of at seasonal This air interesting was to a is higher are of There's a of than year. between color additional the us. year, little good was of June was It's hear voice. absolute data the that's actually there What air basis, normally any and meaning it Aaron. XXXX. including your June the commentary side. looking U.S. pretty passengers from both gain gain for bit that on Maria, TSA the new the we customer this actually has had smallest in actually increase July X, There's And

that slowing of also you less XXXX, that data. business You up compare growth air But to has there's U.S. similarly, the been when travel last caught actually has in since year And never versus at rebound. growing see XXXX versus XXXX the the in maybe part to rate of for April travel when explanation a XXXX, closing. you those look actually numbers, the of versus gap XXXX

we travel people So what we're services, think the quarter. amount the of of for a that in we and in saw dynamic end to we really seasonally would that then there's these with noted similar only a are little that expect based And a then looking regards bit we on of seeing the noticeable towards June. May became also, Google trend

Tracy Knox

Maria -- the that's things. year Those continuing the elevated are So X softness and cancellation I is demand. in think through rates end the ongoing of

Maria Ripps

markets? add terms strength And broadly, helpful. continued maybe on Is of sort talk just in brand And some there awareness about say the maybe broader key those what's more dynamics there. broader is markets. across of of that in you you That's can category macro awareness you then getting can then there? sort of stronger sort the But of just those competitive Europe. it. of dynamics of very level of anything key your your in Got some did And maybe

Brent Turner

good hear It's boys. Brent. is to Maria, it

makes there United a which similarly of than frankly, Europe, different dynamic, it in and, competitive In sized of competitors small is the set terms competitive a States. the dynamic

able driving that is And each one of do themselves. brand that actually so a to and for we've been is reasons category because of -- there we build think players, in of awareness is Europe whom we awareness the ourselves

so and -- of of the so each players, themselves. driving awareness is And whom

not the was they and pet to speak, in I of the geographies us fact business that up. I that scale cases, opening aside we to And thing, that Europe so of our States, things top tried to so would was one past, months do on -- tailwinds when clear clear have as they're has is actually you true. a so to the the not level was might care that at I in the a that some macro Europe. considered has the don't dog on true. are in Spain, that viral. whereas can scale in of level go of I the quite And in United don't find we similar that be idea of know that say that over in online for environments [indiscernible] as blog from globe are been know standpoint we've been the from the think, more been posts successful build But actually some awareness fact, X a named which U.S.

Aaron Easterly

are we some country. look players. that regards one feel some material players. add confident, There seem relative to pan-European country-specific piece major the -- by Maria, is competitive that metrics gaining track and growth the markets we When size thing There other that I'll to varies we with at to for the dynamics, share. the are we actually in be it

it earlier although Europe in higher than So than growth still is set, the U.S. the rates competitive dramatically in it's

Operator

Eric comes Our question Goldman Sheridan Sachs. next of from

Eric Sheridan

of are better evidently you caused greater that level maybe And just dialing about to about would And channels, second lead you're your an in a metrics metrics looking Can have marketing to market by how secondarily, back standpoint down ROI investments what time then investments the of year. you're Just be or marketing talked the up end dynamics? in of from that of us little you terms have in meant give there dialing dialing with those of on rising bit the the ROI you you with would some you wanted ROI particular of understand a or past? channels readdress better at the see internally? question in of obviously you based back any you upgraded that efficacy than sense think part different maybe way finding part

Brent Turner

I these love questions. Eric. Thanks, Sure.

of channels set to that for years, bit quantify most the So like of approaches category return the have, a a little we are companies are a attempting a with more build funnel. that to over trying struggled

control. over And were a with little were parts thought marketing geographic need level once with test they represents we've to get a small that not pledges you worked to We ClickStream. what test methodology certain have We but a we data. basis on bit spins panel the that's of a higher we practical today we worked do are budget, simply we moved subscale, little and The a could of to. more when our one it's more to go is make of scale that

Now our of do. for of these it's a quite we of with because to channels things move, fronts make come particularly here, decided we've it's been those our device streaming bit is the to that. TV, of the fortunate. largely of a sidestep have lot to analytics team [indiscernible] I've been complications our our not to approach up been sort that quantify sort able pleased ROI. on of because because a don't of variety instrumentation we YouTube refinement thing like And social this linear terms But to cost in straightforward TV and work. way a There's tracking

is to and instantaneous. single-digit the have back, to are have that but channels we've are in been our that we of is matter around In YouTube, calls lead bid. turn change only previous working with linear, not to able channels dial I say pretty terms can way we YouTube And how is take we said streaming we recently, that of of the longest those the matter think with a it time are happy obviously, we in weeks. It's going. I although the a on, Other bidding,

incrementality we're we have And as as call, in continue that of on little to to think climate. around macro channels testing. return, And that I this a us road we -- map I viability have do the a mentioned the more We continue testing all are take excited feel more that has moved to mentioned beyond quarters about. front judgment way involve a of -- to to of -- bit and

to are modeling that reins economy, because coming And the are feel fairly and doubt those we the on were right dynamically. of on the pull those our use in like if reserving we able we so analytical to of to macro the make changes some assumptions deterioration in we

Tracy Knox

Tracy. I is importantly -- Eric, it think

to Importantly, right for investments the rates, long cancellation that payback elevated now, term. we're the we believe, have ROI continuing even marketing with make, and the positive

Operator

of question JPMorgan. comes Cory from next Carpenter Our

Cory Carpenter

your hoping daytime maybe what you're First, just single-digit And talk a could dollar what offerings. service trends level you to to just being particular? spending seeing the could you in of how did the with on office right training expand bit investment million that's come about then to service? attracted behind return the you and that in there dog making impacting you're secondly, you How

Aaron Easterly

well X Sure. perhaps With for regards to the shared is investment, X as as training dog the second items, the haven't we year or of publicly yet. the of investment inclusive half that other

keeping also to We get to regards our for of make the with remove the pet. the to them. for and the are training, Now Rogers experience mission of barriers pets it to to want unconditional people everyone possible barriers level

it's incremental pet have So we to an their think go a of Rover revenue minimize very we after. training relationship our us type people and think to expect And We great service think helping with it's with the for pool in people interesting much is that stress dog would line mission. reasonably profit and and provide.

seemed those logical so this And first like into for area. all a reasons, it step

Operator

of from Securities. comes Andrew Boone question next JMP Our

Andrew Boone

of deck kind my XX%. for the back taking I initiation, back to go want question. of go marketing. Thanks kind I to and was the to the If Hi. spec target

coming the about we margin the across and conversion. of pricing talk you think of Or transition that buyer market incremental you terms level, may out that how that? pull a guys any of be platform is then kind how and about more your you maybe to understood Rover? of you more as spend change in be to this impacts marketing And we this using you're able as where So may seeing the and structural the about change family? that? guys not target on slowdown do secondly, think any we gray still higher Do you there friends is guys think about in that Can said back think of just

Tracy Knox

out that efficient take can the numbers. the be But the in than second Tracy. more original laid in XX% is one, deck, will think be the we seasonality yes, term. the and had as terms take this will first over maybe one. we revenue, But I'll stack Aaron Andrew, in of long of there we the

-- it So I maybe the XX%. to think said think we that we was is last quarter, realistic range XX%

high the first down year, half we range, of that can that were noted this we of of towards end towards quarters, we but percentage. on So the trending back will trend you see couple the for more

rate higher you much to XXXX, of percentage and back revenue. was that at If were look a as prior go

cancellation as high, when Additionally, revenue of realized marketing rate percentage is the also ultimately high. is a

the we had artificially was high to actually XX% that rate. in that So cancellation QX due

will Aaron, better does and line do the of help we was with to think than have long-term how us we -- XX%, sight And this market? do gray XX% that then do transitioning EBITDA we above So margins.

Aaron Easterly

Yes.

right not expected when units. think only points seeing but now, values also I look you from business at lifetime the the we're gains price in

are that seeing and we're average, some our stuff, duration on units So so booking overnight duration frequency. longer customers actually of combination more

And there's services or in laggards, kind on seen to indicates seeing In which so have in somehow topics. of we actually into gain related disintermediation reason incredibly to of in daytime shadow not in not increase any indicative isn't kind a of markets is opposite. major our and way, work And a world units that front. more type materialize there's remain of return a believe positive the bleeding that that

Tracy Knox

home I on extent to to our are weekend days, this of staying their noted benefit will the And would escape and that, has could take a think more then people trips office. more we more want that that because the overnight frequent their just actually before people likely to services think And overnight to for add house I that return Aaron be trip. more or

Operator

Morgan question comes of next from Lauren Stanley. Our Schenk

Lauren Cassel

the year? back into full the guidance modeling in year? of the end Maybe the assume of new ABV questions. half think more should and we that just low high What cancellation rates about two And the then growth how second,

Charlie Wickers

here Lauren, them to have with cancellation see continued rates, regards July. into to we elevated

the we for think the to continuing are so elevated. With for to them remain both way the second that seasonality. scenarios regards year think ABVs, of today, about is half to in about where is from adjusted And

second the apply what utilize go would we're QX, So to and year. that of in can if from at you to in you changes seasonality back we thinking to be them for and seasonality QX QX what the had those XXXX, line look QX to with half to the QX changes

Tracy Knox

half July. would cancellation we we've full the through I back what say were elevated rate And XX% cancellation but rate means up said the for and through the at quarter, trended

we're going So is rate, Lauren. that assuming in currently and mid-teens we going happen are that's forward, what to trending

Aaron Easterly

rate well. historical Lauren, to the perspective, good XX%. that hear to to With And voice X% closer is your as

in little the on typically clarity seasonal duration for Christmas. do see We more Just and a longer ABVs. Thanksgiving stays bit We expect gains ABVs.

rate growth So that being bit. little typically has That increases a been more down recently. slowing of said, the unit price

of but necessarily acceleration unit the see wouldn't expect don't price. we ongoing backwards, a we So reason that to go for

Operator

time. I'd over Aaron I'm like Easterly showing to further questions back remarks. for the no any at turn closing call to this

Aaron Easterly

on for incredibly spend that. at Tracy leader for all wonderful would to that something a when us. as I to XXX% and during you I'm the that, our been when call. years, you stay first And have couple for the being minute gains. you XXXX. you probably company, appreciative. you service. for we to QX Rover. that switching to thank the going join When a retirement And on happy had I years. board, earnings deeply the Well, you producing those you Thank her Rover, prior know planned joined it's growth public to a thank here share market achieved Tracy, couple thought came am last you you year at attending be of like cash extra I of our decided look flow, thank retiring

everyone For joining for today. thanks on the us call,

excited next quarter. continue to and mission, be We forward about look to our you updating

Operator

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

You disconnect. may Have great now a day.

Rover Group Inc - Ordinary Shares (ROVR) 7 Aug 222022 Q2 Earnings call transcript