- Earnings call transcript Q3 2022

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Operator

Good day. And thank you for standing by. And welcome to the Rover Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Walter Reddy, VP Capital Markets and Investor Relations. ahead. go Please

Walter Reddy

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

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

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

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

undue in guarantees reliance sources. should presentation statements as You Certain not place they on the information performance. future referenced third-party from publications not derived our is forward-looking and of are

not independently verified have such We information.

reconciliation measures Relations News We QX XXXX release a Finally, which we supplement, financial our unaudited GAAP of under non-GAAP will during to & reconciliation today's call, on measures. portion comparable and section earnings most measures and Events is the GAAP provide historical the non-GAAP of posted non-GAAP discuss the Presentations website. Investor in our the

and earnings the provided Easterly, amount The XXXX discussed third announced With recently call. our beginning those non-GAAP of release, administrative all of measures. a to to adjusted indicated QX in settlement. our and of financial the the and not we Unless metrics substitute this in exclude in XXXX, turn As Aaron general now reconciliations that, otherwise non-GAAP expense legal I'll financial and GAAP Aaron? over compare or Co-Founder measures to QX XXXX be the superior quarter call get calculations started. let's with metrics EBITDA CEO. as should considered noted, for will

Aaron Easterly

will some comments a provide details over us you quarter give XXXX I on few our outlining Charlie prepared then questions. to quarter balance the walking by nicely guidance great to the it investments. the level high the revenue thank and and Thanks, Walter, earnings at end had Rover, and and the further on for provide I a We bookings guidance EBITDA Brent of start detailed with turn then results, today. we joining remarks range. financials will conclude third everyone highlights our up before by take high and year. through will our then and of our both above the adjusted year-over-year

XX%. up a million revenue This XX% year-over-year. million, XX% third the back were growth even $X.X Gross XXXX when of EBITDA $XX.X quarter was considering million booking the million up from large that's on adjusted $XX.X up or of bump margin, $XXX.X million And in a XX%. rate vaccine outcome the the of $X.X the is value and adoptions. prior extremely Total of quarter comparison Third in of was bookings impressive surge rollouts pet more pandemic in year. was context on

a In addition key during execution number to drove driving quarter, accomplishments. the financial strong business the also solid the of team's performance

cohorts record customers setting Initial from the acquired respective record their continued the during pace year continued them of during quarter of all the values their prior half lifetime trend. acquired our expected First, QX and the beat data on shows customers pacing. to first

Second, with than our XXX% uncertainty higher impressive their period. over XXXX continued Cat year cat-only prior Europe QX growth growth the bookings GBV international explosive Xx despite business in approximately with trajectory over Europe, GBV in its extended economic levels. increasing

markets. see to opportunities to continue invest in marketing across We our international

having starting and before drive a have growth. come Third, solution, recent market position we neighbors. care Rover pet strong to tried additional to XX% customers, parent family directly their and another According friends, to are brand to solve our category of needs survey even including see pet

is the type repeat those and have marks time traction of incentive excellent and benefits. have an Initial is use encouraging. to Finally, employees sponsored employer provides of services in implemented we both care utilized for This deal space. benefits Rover bookings childcare book type partnership option first signed new with the backup distribution have a new Bright who employer-sponsored this and to we Horizons The partnership.

and became geographic leader we category Rover a be universal coverage, thought commercial the had attractive clear always increasingly partner. would near as have We as

in to We continue at will look additional area. this opportunities

to balance last towards the in moderated. year, signs of call, the are July look caution As we report at June of trajectory earnings cancellation I'm and pleased elevated we including have our an observing the

QX. driver and together increased and the that Our to Cancellations, public levels was assessment second have data COVID data of be during communication, appears half primary of prevalence platform these COVID trended borne all on out. COVID mentions the of downward wastewater

Our preferred of QX measures indicated the operating improved in have half an demand into QX. environment category of back and

expect excellent growth, of invest periods in substantial opportunity such, fixed feel economics, As while confident of XXXX our combined are an thus a the exciting unit By creates in marketing, continuing more with remainder profitability revenue costs, incremental to while portion the ahead. raising bottom-line. in and operating will our concurrently our bookings, guidance. we our Rover's managing detail we the marketing Brent scaling I'd via hand cash provide increasing and operational And fall to like this profitability, With performance to spend. we to product call our to over on flows, in now funding anticipate investments margins. more incremental the judiciously

Brent Turner

to the Thanks, call. on everyone Aaron, and hello

provide color of bit to QX. business like more performance I'd regarding in the First, a the

new another up demand was QX of total XXX,XXX. bookings result approximately last million. pandemic XX% customer This exceeded worldwide year-over-year record when acquisitions This increased mentioned, pent Aaron for quarter were all-time year's $X.X to With As continued our surge Rover. a we to on-track new from the and fears of this drove our the U.S. underpinning customers new in performance, to customer public. are our XXXX processes of eased targets, going projections platform. exceed peak

very acquisitions significant was also to a non-U.S. including Europe. customer contributor Our strong new out of business performance

of XX% rates reduction XX% now partially during In expense the cancellation down in in Turning XX% XXXX, QX by a This marketing quarter. to non-GAAP was QX expenses. XXXX. decrease revenue, was marketing from QX in XXXX, and driven

tests. we back cancellation spending quarter meaningfully resumed number we observed Toward channels these similar of to of fourth success, during start increase the marketing pulled end the The marketing Based results quarter, solid also encouraging. pandemic plan on We in the to the channels. marketing see non-search in we improvement quarter. a continue investment videos, the the this at longer results rates, time response of and our be to to wave. return in the social, on as We

As as expect non-GAAP a of in percentage higher trend to a QX. revenue marketing result, we

track still stated be to target our fourth is the XX% quarter for towards the on previously to and lower half of XX% it However, year. full

based in we perform ability We spend will marketing category parents increase dynamically long-term product features value of cancellation target. rate providers on adjust observations confident margin to Rover within platform our of invest pet and add that for in and continue platform. flows and loyalty COVID. We due our to to demand to the continue overall to ebbs the remain our care our Further,

manage providers the we quarter, of improving invested This app. book which care calendar the business usability with in tools the and significantly through their

on videos to added to effective the how be providers also most We on help new guide platform.

to them parents the increasing and we value Rover Finally, offering. the to our messaging are providers help fully enhancing of understand

pleased are with results driving execute new both and of and team are The building quarter. this customer progress proud repeat well, the We scale. our and continues to Rover bookings

hand to further provide over call on detail I'll the Now, to our Charlie performance. financial

Charlie Wickers

for booking as the primarily year. XX%; begin up third followed overview balance quarter well Thanks, up our on revenue of was an by XX%. growth The of financial was XXXX, third in results of Revenue the I'll $XXX by of driven the average increase providing guidance Brent. quarter million an the quarter values. million, was GBV while $XX bookings in increase as third in by

in of in driven was increased ABV to behavior, along on being predictable QX price at The with for Non-GAAP a per while XXXX increases XX% in of revenue increased basis by overnight in contributor. $XXX, million service drivers in quarter million contribution growth staying this ABVs, year-over-year. with This from up core all percentage services average cohorts. were expected QX values has the $XX lifetime significant third Our flat XX%. growth XXXX, growth more $XX roughly revenue repeat

to Moving expenses.

a of compared were support of and an the appropriate and to of up or to The personnel we QX level XXXX. flat to quarter operations increase compared as continue year non-GAAP in of prior the quarter is order the XXXX, XX% $X to increasing XX% scaling platform. of result demand drive of the second revenue, from provide million staffing, expenses on revenue in Third

operations of the We remain percentage or a as term. and support to below levels QX expect in at medium revenue non-GAAP

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

EBITDA were markets, million the the in coupled business, administrative our Third $X needed with in while was beginning margin in of of at into million quarter initial adjusted Adjusted transition non-GAAP $X.X XXXX. expense a due to of our $XX The increase The EBITDA general QX of year-over-year in resulted is scaling QX $XX.X is or revenue moderated expense or had the result basis paired compared of from XX% support the quarter. revenue from the million XX% of expenses EBITDA revenues a a from percentage million of public to decline the growth last XX%, caution we to the or of improvement with strong up revenue a XXXX. XX% or and of margin due adjusted to marketing expected the investment year. QX on

and investments going have able to Xth was holiday. and QX cash, and quarter. fixed profitability during recent impacted flow. contribute impact payments substantial seen perspective, top CapEx In we our capital $XXX of of QX. As post at rate; how we between down has In the business processor and payment equivalents by incremental our to results periods, million given a bottom-line delivered total us From a our at cash the EBITDA was the demonstrate This a requirements, our from timing flow we revenue working positively of million, cash the costs and liquidity significantly our to seasonal is adjusted limited July increasingly normalized of due to impacted. are $XXX our in end summary, balance strong public,

guidance. turning Now to

cancellation cancellation to Aaron of that year, you and September. to and down adjusted we time, our peaking year pre-COVID have half When as revenue increase especially the the still picture pause in in ranges. XXXX come full which XX.X% rates, discussed and and are we such last XX% Given the July levels, accordingly. at us in we adjusted while the back we quarter, positive Brent seen of for since the stubbornly gave QX, to EBITDA updating improvement elevated guidance context spoke our guidance have in Since metrics rates, key from over-performance

and of steady to to adjusted into assumptions the in assumes end booking recent end cancellation guidance Our Omicron while forward high full remain for Both the of revenue macro are to though relative continues lower assumes discussed QX elevated as the the impact inclusive guidance rates year, to The as our related low the rates of cancellation of follows: layered remainder year high assume macroeconomic our the cancellation guidance and higher rates pre-COVID September, norms. and low seasonally end the the demand. headwinds,

updating full are midpoint increase adjusted the revenue of expect to XXXX; EBITDA to over which XXXX. year million we $XX.X from at our a prior up $XXX and XXXX, XX% For adjusted would and revenue be million, EBITDA $XX $XXX million guidance in the million, of million now $XX of in

bottom-line on-track forward discuss with the are head to anticipated excited you it top year to million For to and revenue and as we to year. XXXX adjusted next overall end the into in that, and up or a to We ramp expect company fourth both In you look by With EBITDA the connecting ahead. to margin Q&A? in to of $XX the and Operator, $X XX% open continued $X will $XX can million the we the year investment. growth performance million quarter, about turn we to marketing driven we questions. XX% our remain drive million summary, in now wrap early of

Operator

first our JMP. And Boone from Instructions]. [Operator question Andrew comes from

Andrew Boone

Thanks XXXX, providers in I'd you questions. change of on seeing impact? love whether just changes guys my that length the we for are secondly, Two seeing you or One, the you we're levers, taking you next able macro than talk Hi, faster be guys. and please. to looking macro. change might about for cost thinking weaken about as And what any stay in rather so on should there's pull, what how guys hear much. think I'm in then guidance so environment any as Thanks about end, are we year? and the about but should all things -- not discrete macro should here, various macro to you're think thinking? impact Can guys as deteriorate much

Aaron Easterly

norms, haven't Aaron. It’s overnight shifts, so Andrew. the we that, seen a equivalent higher daytime mixed Hey, levels. have Thank has units. constant, for Generally, though recently we pre-pandemic mix fairly versus growing mix More much been so question. roughly that your shift you shift and with and seen overnights slightly services; additional

haven't more We any notable seen changes trends beyond seasonal recently.

to is as don't appropriate. we're first we cost and hit. we pull marketing incremental business to general, headcount a in forward, continue hit we business pandemic to increase when some day if to of back benefits from as the duration, of generally we that we reminder, the to conducive on to like over platform the We time. costs regards think environment business stay our perspective macroeconomic and right-sized to We the going hard. hiring. pretty see moderate benefit decisions a fixed really designed difficult to changes partial made billing, We see continue made We COVID the think is But the think the spend. situation, cut With the that may may the expect the broader a some

Operator

next question comes from from And Ripps Canaccord. our Maria

Maria Ripps

much so for Thanks questions. Great. my taking

engagement I in sort talked you a -- on the maybe consumer is, client and new a of about you demand. existing Can talk sort some of early are platform? last of from seeing in acquisition First you both terms standpoint what a slow-down think about quarter evidence just of customer new the

Brent Turner

From into pandemic had good a we the QX of did Hi, standpoint you. kicked with thought the of middle of hear part Maria. saw Really up what we wave QX. in It's enter customer, to that from what a in Brent. new was

were the that glut continue were to will tread happy into when of in to pretty demand wave in customer to carry strengthened. huge also, go together We're year on saw put last We're in are of see quarter that we line excited QX XXXX of But abate subsided. able QX. a that went and as sense we to really that we to originally -- with we only year's demand a sort of public. big saw last from back we the begin exceed that targets hoping up saw the we Although wound how as with it And standpoint new planning travel we we're staying demand. pandemic not

excited are about that. we So

engagement customers a that of continues seen. from we In standpoint we be to from repeat are that strongest unit coming and terms the the similar of the it the to what to in seen be have revenue on, standpoint have past a

see that continuing are so excited to on fronts. are to we those build we And momentum

Maria Ripps

sort how any people the the of investments Great. of Brent. have integration quarter? to then then platform including office? helpful. progressing, you returning in more Thanks, as your that in last uptick secondly, That's acquired very of your platform you other services been daytime services seen And dog have training sort And

Aaron Easterly

saw is first shift quarter of several vaccine hear we changed rollout, a of a as kind Aaron. reopening to from so, or our Good percentage We where hasn't rates you. services mix side saw of overall mix. The relatively This with the daytime out the growth the lines. jumped or the on overnight the mix service much. across year-over-year proportional months After common

steady kind across. with So that's of consistent growth

growth plays that we to level dog the And will there in than we So we out early-stage not services, area. services. see training small in the the monitor our purchased a overnight over continue are to With that but faster daytime time. had how asset, that regards high seeing is, to company

with that makes of Rover of that that and adoption pet we with And We making the excited pleased about to the mix animal sense relationships have regards are are progress they're Group. think We to part it the results. shelters. initial as building with agencies service

but so far. early it's positive So

Maria Ripps

much for so color. Thanks Great. the

Operator

Ralph comes question William from from Schackart next Blair. Our

now is open. line Your

Ralph Schackart

the Good afternoon. Thanks taking for question.

peaked in were probably XX% about had mentioned I And and you it rates cancellation in September. July. on think to XX.X% around question First they

COVID keeping observe sort of remind level? think and of supply just a side that's And the used cancellation I sometimes rates of pet or I may range owners. between pre-COVID on, stubbornly levels. that is versus just sort high a at are cancellation the you be like you what these think look you sort could Can of pre-COVID? this term the impact messaging there us still read rates going

it's the sort curious combined love of you will post-COVID that kind cancellation I I Thanks. rate macro? trend know thoughts. I'm Just sorry, with question, waning tough -- where but trend your think when of a

Charlie Wickers

is kept Ralph. and just to rate the longer-term, With you. level from impact remained cancellation at. Pre-pandemic, were XX% Since a Charlie. hear there the it to Rover, have elevated. couple are an at elevated has that the range words them as we X% the elevated. Good know, on fluctuated and are impacted Hi, This seasonality. started norms COVID that of accurate, cancellation negatively impacted to world regards and to in I and based chose we looking we rates dynamics stubbornly COVID, One, is is that

a As up. trending the the that thing we sickness other direct pandemic is has are been has lessened seeing just impact, generally from itself

latest dynamic both we platform our I susceptible that reality is having starting provider think, are the susceptible viral a think is RSV we of dynamics. that the because is owner of some our and the marketplace to to a illness. pet dynamic sickness that And to for more have elevated

incorporated have assumption not yet of down the will period But first do elevated that in tick those for hope basis, remain is any rates and rates future. baseline a on go some time. So cancellation the cancellations forward our foreseeable for we

Ralph Schackart

with new shifting just on Great. then Horizons. maybe kind agreement And the of Bright Okay. commercial gears

add color bit opportunity, you. Just curious that. anything add significant Thank love time? able more but it. a a Seems you're provide encouraging, Is could particularly maybe fairly if partnerships you over little this if you could more to to on

Aaron Easterly

Ralph. we doing of Hi, Yes, of for types about Thanks in are future. question. the excited really of these possibility the the more deals

that Horizons come every partners Although, scale day. of Bright have along don't the

that Rover unique as is Our business. high level a is belief

position unique. is market Our

brands space inherently space. find people or unique. are opportunities is There with coverage geographic in for partners in geographic space. based. fragmented aren't companies pet Our lot very national this It's to services wide A coverage geographic just of the

as thought so very about we’re doing of we clear and So the as excited category this geographically future. that we It's our in one. And these filled early, our deals come would up. far but out, into became And will types solid leadership opportunities that traction. more look coverage of these

Operator

next moment Cory our And from Thank one question question. you. next for Carpenter And comes from our JPMorgan.

Cory Carpenter

First, to ask I about international. wanted

a impact it you XXX% maybe well year then Hurricane terms holidays of growth think I just continued question should versus opportunity think from Could call you anything for in just year-over-year Ian, forward? anything out we so about there in about Thank saw timing talk grew you. going said terms the over XQ and or around again. how working a what's specific of just you year? And for to Charlie, or this last in of -- the

Aaron Easterly

Hey the been to there, by to surprised we've With seen It's international really growth regards much Cory. positively there. how pretty us. piece we've been inspiring

the U.S. Our may though lot last countries rollouts. bit outside vaccine is differences assumption seasonal that the travel year. markets, missed UK those benefit were a in given we little with a some of And their baseline of some the in have maybe of and later that

the may little last this later, Europe, the year be bit saw summer we're is the And what a similar we important. really what markets international vaccine if seeing then in So travel to are in year rollouts Continental in of some U.S.

would the versus rates we expect but levels macro going are as and to to them heavily-stacked a growth well. about bit more with So seems little current forward risk Europe there, the the be optimistic moderate

Charlie Wickers

booking just three that period window is just back adjusted your and at about regards weeks of Hi, a any with we regards the Charlie. new With in particular And to booking for to as about are holiday the front, Cory. in on now Thanksgiving. trends timing weeks anticipating. but we're our Hurricane right customer front question, that Ian, trend to about It's softness QX, quickly for reminder, two

much any other -- or to just guidance until to out are point. today we the this up share regards is based additional the with that not than visibility we putting our trends on more see color, So

Operator

next from Stanley. our comes Morgan question And from Lauren Schenk

Your now line open. is

Lauren Schenk

you. Thank Great.

just guidance questions, guide? quarter are I sort the that backdrop in demand you the the color at then heading cancellation can. two then that's And if What's magnitude sort And into on And maybe more one, thinking of then about assuming the the I higher underlying the of are if any fourth Just you 'XX? guide? rate how of bigger travel implied of one can. picture that bottom-end

You mentioned XX% of among much. people came straight demographic to Rover. or Thanks Are factors so group? there any characteristics similar that

Aaron Easterly

I'll the we to have space. than other take With little demand, to probably bit Charlie companies question. less travel Lauren. Hi, in future as first the travel travel mentioned, regard a visibility

confident feel reporting we well we other current TSA other we see out at broader are and such the be looking the quarter, what trends data. in but including companies travel-intent what data as will So parties about as third as

regards putting together with about are there’s still good we into about. next quarter. plans. fourth things a year, our business our But of Generally, think feel year, So to next couple we the heading

The first that Generally, industry resilient macroeconomic pretty trends. still generally the travel can grows, recessions. overall impacted to the category is pet is be by but

intersection And are so of both. at we the

down. happen there general. industry Our probably down, less is feel will macroeconomic in but revenue slows there travel two we that travel the recessions When large of kind than case is slows travel is if base that, that, winds, or ways so

less. travel may people is first The

may for money less their second people is trips. The budget

people pet a at it's if not to expensive people class, is degree resort, maybe people or but less such things trading our small upgrade maybe some like at that. all to to expect to lot the our that a unlikely on to be expect a portion first We hotel, to spend The less some of less booking care a likely Airbnb, that less probably have we even value. impacted resort, traveling decide staying business, by hotel, less trip their average So would on of a on have for price down. would pay people impact less spend

macroeconomic that travel bit what's the a in for maybe we're sector. exactly case less feel sure than our sense, there next but if that's winds, the So store year, of little it, not in is are but we'll rest baseline

Charlie Wickers

Hi, that I'll low to it Lauren. XX%. behaviors we the pass and things is Charlie. the and late QX in looked Aaron talk cancellation at This end, rate, on regards to about and talk the cancellation year. cancellation was last one back about in rates then of the With QX to jump in guidance rate the and and of

of during During the were Omicron. and the we kind then was Delta, that of at impact period there time, QX of tailwind of

pass That's guidance to cancellation Aaron. at a XX% I'll then the so low of range, impacting of dynamics our we end of customer a base. And estimated the of And rate. kind regards blend back new, two that those the with to

Aaron Easterly

that be for think But use shadow from coming We market, friends, Rover facilities, data kennels, going sufficiency yet be Yes. say population, take our from With don't certainty. that to is regard to generation. younger or things daycares, the you pet for neighbors, has assumption use if doggy been the XX% new, our suspicion time about with owning to people on that, historically that the skews or their probably that pets the that. first commercial market, who coming boarding either the trips are people them family, like have

our even this metric all were don't customers either from coming we market. shadow historically to much or have a of So baseline of pretty kind because track commercial

surprised now, which when business, indication investors time the investment people how defaulting generation does high more creation? the in about pet of a look to our from start were decades do this tracking we bit at growth. Rover's providing ask like and is home. when bit little your This and Rover. to away pet. you And actually of younger decided strong you're number you that a would how a has from okay, about little the the success we initial And thesis look talk was, just would a creation started related us, TAM If to is category a is go category this in to I closely. success adopt for and general, have rewind what terms was, when clock And As what like you the launching pets response couple

our And thought. was so that

it's about existing is more start always to So suggest we've that to commercial though. the XX% show and demographic that in breakouts to exciting TAM than a really share bigger of the the in future see the market. We up that hope thought as lot specific data

Operator

And question Williams Lamont our from next from Stifel. comes

Lamont Williams

year? coming increases you could of per price booking. there a terms bit asking you wanted get little prices base consumer just for? lap How that be I a as do on from in pushback average price level are the where much -- we of last pieces start level that from can some pricing And to of there's is the think to suppliers touch to is

Charlie Wickers

you right again Hi, are up XX%. they regards up ABVs, Lamont. is Charlie. to This that year-over-year, about With point the are to out

been is of did of a have they get bit of they One the backwards dynamics, have experiencing would there. of the have perspective was really units and QX they somebody hurdle. last last not to about add be we been growth on a units a rate of an were year-over-year to the would there price like been two-thirds weren't seeing price to to of really uptick slow been about pushback the down. to little conversion to would We per of an but that. that by seen the term haven't going on we number seeing on price ABV per you that regards there? much that and probably on unit, price on increase within in of the really propensity touched standpoint, or we quarter. have And year, regards down, splits we to don't trending down regards per units impacts longer seeing with trends pricing inflationary we any a consumer rates But or is driven one-third to year-over-year growth have pre-pandemic. dynamic, else expect like the from is year-over-year growth Aaron, the for this driven peak number visibility and being the by With The you the was that continue the have I slowing growth. With back or normalized terms their to go kind something about on really whether book unit basis.

Aaron Easterly

Lamont. question, the for Thanks Yes.

We of look surprisingly have you But are we segment. is our the are little a lowest demographic income -- at one broad. bit we mix, if in areas the under-indexed

very less probably think low I assumption is more least people of bracket. underrepresented be are end if somewhat our baseline is it's at pushback, going the for income, which there with that we the income in at disposable to

apprised. it So in that you keep our see difficulty] down, absolute before think we'll would but case backwards come [Technical -- saw decent we to inflation slowing has but go amount that need we baseline sense, we would down an

Unidentified Analyst

Okay, you. great. Thank

Operator

question Thank comes you. And our next and from D. Davidson from White Company. A. Tom

Your line is now open.

Wyatt Swanson

tactics then Could recent maybe in they Swanson guys This your traffic weeks? and us about give Tom. what And talk like early is on have upper looked for Wyatt you impacted by some you rates funnel trends the efficiency into are your extent how And next your marketing or what could marketing think conversion be macro? year? about to thinking sense you about heading

Brent Turner

would our the for publicly, about question. talk Without thanks we that specific say, metrics strengthening. is Hi, upper I funnel It's Brent.

doing We and standpoint are and and things linear we marketing, now digital are those channels, social. well. funnel easing streaming case particularly Canada -- YouTube, in TV in strengthen In to of down right from the our in are Europe the marketing it. and more And we as in the that doing a back

of macro, how our opinions play are good feel we rest about trending. we're together next own And year they the the pretty apprised. impacted terms of we're will in putting keep In out how the year be I to we'll probably terms of about how by going mean you and

Aaron Easterly

The strong of that one sheet a of of thing is a to is, over ability one look I'll the time. the the benefits we kind to balance of of add at longer that having customer a period value have

too sustain our efforts the the good term. not and just building to time over want marketing the we near and returns think focused category we so And be on if are

Operator

And Goldman Thank And moment from question one Sheridan last our our Sachs. Eric from you. for question. last comes

Eric Sheridan

taking picture one. Thanks end try on question. big a Maybe so to I'll much the for

be highest of product in of a to you growth, from in yield we XXXX, are terms output next know building can much. or of items investing the I priorities Thanks should guys to forecast talk how standpoint, the terms look As the it couple business, the over for about about your and so thinking those you investments of it's what years? a little but forward in folks early refresh

Brent Turner

It's this you. to it's good question. from love I Eric, really hear And Brent. Hi,

value our this trying is probably that into just in priorities moving next We're make to investments platform add Our providers. for care we're year order.

We make book find for platform. customers it investments easier provider new make our to on with trying are that the to care and

with integrating. our to features momentum on that making are try or that our growth building to new business interested try got in sensible either or currently international are lines are And make business marketplace accelerate to to We and to especially enrolling build the we there. to extensions existing considering are investments we we've

head, I from that's product what's think at least from -- standpoint, our investment that's in standpoint. an a

Operator

And showing am would turn further to And over remarks. closing call now for I the to thank back no Easterly like I questions. Aaron you.

Aaron Easterly

on everyone, even excited time quarter. the Well, hear next and It See taking more to ahead. thank the quarter call. third Rover's on was time we're exciting about you for XXXX our about you,

Operator

This concludes you for call. participating. today's conference Thank

now may You disconnect.

Rover Group Inc - Ordinary Shares (ROVR) 8 Nov 222022 Q3 Earnings call transcript