- Earnings call transcript Q3 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for attending today's Box Third Quarter 2022 Earnings Call. My name is Tia [ph] and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to your host, Chris Mandeville with Box.

You may proceed.

Chris Mandeville

you conference us call. thank quarter Box and earnings XXXX afternoon for on joining third Good

Financial of webcast everyone On out Co-Founder earnings XXXX, Officer; Chief that and call release at approximately And Chief By press also the today ended Executive and found be are for the can went Mark company's September to have and this access replay. X:XX should website. Chieh period Huang, Officer. The the now, XX, available a afternoon on after shortly today's be archived conclusion the release will p.m. Eastern call, the for Time. Zimowski,

could and materially actual like made measures its include the today Exchange turn issued that financial release for results the detailed GAAP any regarding management's management could means available Management's are of that time Chieh. financial and described refer now and company's to time filed These Commission non-GAAP will expectations today. the differ of securities to and non-GAAP future statements and these to include discussion in from materially federal to performance. forward-looking or I'd remarks During release. risks on the to are involve those forward-looking assumptions risks press events or adjusted a statements Reconciliations financial call Please results measures. These differ the Securities statements. may reports in actual earnings implied uncertainties of this the over current the expressed And from of within Box the call, operations laws. with from course statements those to based and today make in and cause forward-looking expectations

Chieh Huang

great to with Thanks, Chris today. and everyone it's be

quite up over call, I'll open go our Mark After discussed a we to third I'm to in QX it then some executing share margin-driving today's turn we hard that, at sentiment financial updates, line call. work the we'll quarter. call this hoping on on to been start everyone the prior for results. our over For I'll that listening We've had that will questions. business providing areas by focus

As of potential BXB, utilizing espresso. quickly our the focusing announce and business: sharpened began that quarter team BoxMarket several segments I'm that committed high-margin we we a on to strategy these high deliver our happy on the and focus presso reminder, to last to increased profitability by to. technology, areas

expanded gross and basis retail Third profit gross margins points. year-over-year retail quarter XX.X% was XXX up

As out and I half from day for a our result day by the of work prior consumption average as more well to in quarter, know million decreased an of this of financing proceeds increased members incredibly profitability $X.X and this activities, these proud as to results. quarter cash them are than produce I'm as per from many the call hard listening month. team they today of to down

Now, of focus let's with go start the against that We'll and BXB. first deeper making into we're one progress these them. areas each

strong as momentum additional we As seeing to resources return quarter, capture this to the catalysts channel last in positive mentioned dedicating office we're we're continue.

$XXX reaching yielded expansion Notably, high to after the for has retail also of are in BXB customer, efforts at mix in all-time XX.X% all-time customer QX. led producing revenue an results came high average $XXX growing engagement net as which values quarter. active BXB per Our GMV order high overall of

XX.X% $XXX. overall mix up this shift of AOVs all-time Additionally, to retail high pushed another

the up a XX.X% puts continued for Lastly, XX.X%. its quarter. with GMV the this throughout on year path BXB BXB segment at as growth blended GMV BXB whole That entire growth

the the why work team's proud of There's ahead us for we're just are about of As we're reasons some hard but you of a excited can probably see, execution. these QX KPIs the lot future.

fresh store the hitting strong food we Brooklyn let's Historically, look high the Now dark opening Westchester, quarter QX. new margins platform, store. imminent turn York launch I'm dark $XXX. AOVs these business the developments expanding in our product have good of and locations. supported delivery market, pleased our in Market the location $XXX New software to recent range, Fox in forward and great saw new third announce this business. Espresso, also and with consistently services AOVs AOVs to Box to demonstrated our of to in our has

now already we signing end-to-end report our I'm Asia's an of partnership begun complete choose for consisting of is of threats of of E.ON Customers As important follows X-year needs our white learning. reminder, services e-commerce and With this advanced of further stresso-can an [ph] pleased to for Malaysia, advanced to largest this on contract select our is the solution furthering we're potential offering mission end-to-end a suite And retailers. our technology. market. growth enablement that our discussing across label another a e-commerce individual upon based a opportunities now a Espresso platform project actively definitive machine We're have or technology world-class with through analytics there. Recently, on, we've with modules. globe happy to customized really a and broader announced implementation set the modularization, the this from suite the deploying market Vietnam important suit ability of Vietnam. customers, one X-figure that with of

rapid for learning retail our data model to SaaS previously, advanced The support lead Data of Snowflake's generation use to By we to machine results discussed leveraging are customers believe drive environment box the designed for customers and to espresso join advanced to recently our in and exciting today's enabling they able able as expected sales short, customers. business. we've modules, deliver outsized for our we're value of analytics partnership are have and through pursuing and seamlessly Network technology, solutions espresso joint streamline Partner needed technology, efforts Cloud, software is Snowflake's share now learning partnership In machine ongoing capabilities capabilities Snowflake a espresso to implementation As and its presso announced is critical program. and marketplace-driven analytics offerings. to are our distribution

cost spend savings Lastly, generally. me on a let minute

resources manage corporate In addition part margin $X.X course, closer of investments restructuring improving key efforts focusing areas a driving towards of EBITDA remains at staff focused We'll all and going the a cost our priority to structure, is, adjusted to also of profitability. were enhance marketing continue highest taking our market increased growth cost of meaningfully price costs look optimization, and our our of profitability in factors business, our forward improvements, improvement box shipping and as quarter-over-quarter in our million. to BXB

now, that focused team road flow agree profitability. accelerate strategic the has to for a on company. right track XX that days PASA delivering cash EBITDA I hope ago we begun map vision. about our you overall the believe we're already detailed against and We Just that this adjusted

let over to with hand that, it Mark. Now me

Mark Zimowski

Chieh. you, Thank

during are segment an by in particular, had third pleased the our on quarter-over-quarter our to As incredible year-over-year XXXX. XX.X% operating million year-over-year compared results net we P&L or growth review to X.X% net our that, $X.X were trends for third Services period an this the our customer lumpiness Retail are our of hit to noted, on of efforts impact enterprise-wide folks per they our impacted and Chieh financial displayed an jump in our buy-in reviewing with sharpened million, I'll and XXXX by increase With in quarter then the all-time of comparable into to high quarter and testament in many especially & the the prior was increase to quarter, also the retail strategy turn suggest revenue $XX.X which a team financial in net Software outlook. Beginning for revenue segment; year-over-year, prior results the by quarter, year. year and When performance. basis with results supported revenue This a active the a to members. meaningful Retail the addition $XXX. which I'd was

result customers drive stronger mix which was BXB a per our taken market. to strategic box towards in supported of stickiest growth spend and shift initiatives user addition In the AOVs, of profit highest retail direct increase enhanced and to

net not impacted Turning did to last license P&L. quarter. third quarter, services upfront the or to Services We revenue million our the results comparable Software implementation and the during generated in year-over-year quarter which $X.X any we revenue in Similar recognize entire fee the third segment. across

longer which high-margin significant license we we revenue look our Vietnam of the result future. we recognize mix greater of million which expect software prior year-end. segment, with product we portfolio, near revenue year we software going Aon of this variability medium-term services to upfront development $XX in the said, contract fees do in and That to in uptick to anticipate in into the espresso of expect increasing help an will the As revenue have QX, begun predictability expansion recurring in revenue ahead approximately over as we Further, while period. support some continue to term

to Finally to focus us XX% cash business our contracts compared driving cash manage generated as P&L, the more which enterprise enables historically flow a $X.X compared and revenue offset within lower retail decrease quarter. the million net prior software The profitability. services Combined million, our and on on importantly, software flow of is this to year. our from from was revenue for the growth or consistent the quarter-to-quarter by effectively revenue was we much enterprise, efforts $XX.X total

prior gross increase year, by margin retail an $X.X gross profit Retail up Turning to profit gross and XXX versus with up respectively. points, profitability. basis gross margin of points our and meaningfully quarter-over-quarter, by XX.X% have XX.X% XXX million basis or year-over-year. Similarly, XX.X% increased were

which supporting are margin impactful our in real-time customer who, our an enabled first customer. also an capabilities. of and gross results value why a backdrop this retail of evidence flexibility margin We have share and retail savings inflationary million our advantage expanded are meaningful cost was challenged the momentum Espresso been increasing over third and of solutions full supported profitability quarter box cost profit revenue significant BXC services by support supported inflationary proposition our and is reduction transportation espresso by environment and of for for packaging technology and savings seeing, results the confident total which impacted I firsthand benefits margins Further, a saw analytics platform how positive incredibly margin quarter-over-quarter, machine gross was XX.X%. learning-based of burn. capabilities of data by Total These our Total FedEx the optimization the gross business this the Strong environment. our we our macro The was our retail are of customers we decrease thrilled so rate and possible grateful trend demand, by discussed as following quarter's in especially profit the science run capabilities. and I year-over-year BXB of gross for technology offerings alliance, of in had through have pressor software the expansion pricing up QX am million, total made for of quarter we cash in of unfavorably with margin retailers. $X.X in decrease the $X.X other are during at $X.X management a was profit million earlier. technology

expenses. operating at Looking

reduction quarter, During we million spent on meaningful prior $X.X compared to the the in million third $X.X period. advertising, year a

As strategic as will forward. highest-profit help expect the and increasingly on channels of produce to also we of growth part investments discussed highest going be previously, will relative BXB investment advertising our we support return believe box focused enhanced which vision, customer market across our

and We are marketing efforts on enter to these test against [ph] expanding channels. our customer dedicated

macro For targeting levels mindful are our similar we while year, continually budget of of on we also investment and assess rest seeing, environment. of being will results overall the the are the the based

Sequentially, was the million, an in to million. third Our for a year. this $X.X quarter-over-quarter, the was loss well of quarter EBITDA reductions cost transaction-related as compared prior operating of costs. related from other improvement loss or million, Adjusted improvement was resulting as of gross profit $XX.X loss the discussed. $XX.X $XX previously $X.X net noncash This quarter million onetime to which million

to KPIs. Moving

million, with million $XX strong largely base. increase combined or our customer an The third key saw X.X% GMV metrics. demand GMV value with year strong increase versus BXB increase prior The year-over-year, box period. quarter of customer merchandise market to momentum the from Gross was in an $X.X attributable the up across was XX.X%

and of AOV we values improvement total profitability, are had increase ongoing level mix our the customer respectively. order average BXB $XXX Peaking up customers XX.X% optimization. mix primarily pricing on indicators order AOVs, driven price which inflation another high all-time also retail shift, year-over-year. In was shift, by frequency BXC both and saw BXB order and across and which both of BXB was addition engagement This good to

investment active during new decline the resulted in acquired As a the in expected, led in also decline marketing to which customers the in reduction quarter. customers

path exactly As we BXB. we'd expect because not aggregate of the in strategic down this. be shift growth see dynamics will our the to de customer continue key Active prioritization, a to the of counts driver here are from BXC of

However, on more will, active when increase we active within our AOVs, in on do average, orders, higher anticipate retail, you counts be look And user. profits more and customer customers an basis, per aggregated generating an BXB. higher revenue at

monthly month quarter, Turning In a the in $XX.X total had At of inclusive reflects of QX, we cash securities improvement quarter-over-quarter. a million to and which of our combined million is marketable sheet. of balance $X.X burned cash burn $X.X $X.X we per cash. restricted balance million the which third cash end of million

to addition operating We capital which opportunities management to good an additional explore markets prior are raise believe our improve initiatives hope to actively we initiatives additional liquidity continue forward. growth these initiatives against further to our year-end. near-term yielded those support to with and capital liquidity ongoing making we In help go improvements, and progress

under during that and proceeds for This the proceeds in been to we agreement. resulted during $XXX,XXX of now with XXXX unwound of company $X.X of November paid the expect in Finally, transaction the be back has million net we approximately XXXX terms QX executed unwinding of Adelia another of to QX. fully purchase the

outlook. XXXX to turning Finally,

of range to million million $XXX net reaffirming in to EBITDA to are the million expect the $XX and continue in of with range adjusted $XX $XXX We loss million. revenue guidance our

organization in the seeing updated the difficult believe discuss profitability. quarter these predict. path to with exact execution have seeing deployment our we dynamics are Snowflake really further and QX recurring To momentum entire this carry Services segment product we are traction continued to temporary third to new remains The segment, EM strong was revenues that are customer to summarize, Vietnam, pleased our and progress if and partnership, timing we we resulting are abate add of our our on to As for diversify ongoing customer Between pipeline base within Software the we revenue the forecasting commencing additional We the our will business. of side, direction, are results. progress the recognition the deliver commitment against to-date momentum with we into during expect to to able strategic rally XXXX. in pleased behind that accelerated and with an the

us see thank to of success let a will are long-term During which against QX, for also execution help remarks. these continued our immediate set we and plan. that, additional some in and focused the right growth for up are With shareholders. to back the support to steps we raising final our the strategic over deliver me business for front huge efforts all you call turn believe on value opportunity Chieh capital We

Chieh Huang

To to meaningfully way path team it to accelerate the value our shareholders. yield up, Mark. our sum for our to on executing our is of profitability vision Thanks, I'm substantial proud

already our with margin and With those are working gross we're you, trends. Thank that, we gross are profit available tremendous questions. take on We to your now Operator? hard seeing retail improvement and all. continuing

Operator

Absolutely.

now is D.A. will first line question Thomas session. Instructions] the of begin Davidson. Forte with [Operator We from the Q&A The

Thomas Forte

Great.

X One in areas one making you're question, follow-up. projects the on congrats Mark, Chieh, So of focus.

when all where the How was we you about back, on it it think question compare it pre-COVID-XX back. levels, BXB, your For way halfway the the it's pre-pandemic. should with versus

Chieh Huang

is just the progress for you the together. time bone time. thank last making basically the worked kind we've our hard -- days last were and XX how of Tom This since on we in recognizing we're Thanks, on and

so to and I'm asked macro Specifically, with perspective. you an regards from question, internal because BXB glad your we're both excited a

So me let parse that out.

perspective, macro run. to we from there's a think room So still

York folks I in City the in we've think of data Recently, folks going office. New only key of swipes back back XX% office. the XX% to card -- upon are are based suggests seen that

to So like cover XXXX. very we're that perspective, we're watermark question yet. your post not we not at answer back Internally, that world the still feel that way high a just set in from macro a all directly, we in

do it So we've done again, just it's tailwinds. doable macro there's we because think normalized we excitement But because know not also in only that world. externally, internally, previously a

reason excited why So so we're it's the about again BXB.

Thomas Forte

right, Great. follow-up hopefully And my for now box Westchester, soon made. market then for question, -- Box on all to market, But be DuratoCounty personal serious.

had given so for first still expansion what to market learnings recognizing hope outside it's So you have early. Westchester, your learn do Manhattan. for What that far you box

Chieh Huang

also some Mark So to high-level I'll just and follow-ups. it thoughts let me with start over some hand for first

you opening we still operating different data cars to very Westchester, versus it's we're very in early, Manhattan, at you using still because whereas there primarily just as of weeks point. few bit finding Westchester can Bische this little that in of as We still bicycle can is deliver, early. is only County, the it's suggested, a we to. Brooklyn, right? So What So It is operationally, have use world in cars imagine a imminent. a well. you're

So now to need of many folks And customer's operationally, packing, all picking be home. is punching and data -- folks there. the then do for also we're drive you to that right taking mix internally operationally, available well, the what to and how

customer data comes another be that it thing we're in to when the is should is items Lastly, actual what carrying. gathering we terms preference of that

in is similar state of even is country in downtown The as York. think, slightly in is much someone the we the across living entire items as reality Westchester buying New everyone So than least very within to like at someone different hand. or

I gather on. these knowledge we've X to think begun all things, So

wait I have terms Market statistically those of that AOV, to compared all of New for things, kind the and until Box Box massive to relevant we data already want terms we In data of amounts in think financial we have of performance, Core. York

little to hand on early I just Mark, it opine know you too yet. probably on it's a have as So bit some follow-ups well. I'll over to that just you.

Mark Zimowski

absolutely, Yes, Chieh.

far and only So order at one add the so look what in when was we that yes, very that of an at at really you things to I Box in acquired end behavior important that what what that would was the great then seems the things been similar of that is of be recall, we Manhattan. we're And itself is and loved I seeing when profile us, about mean customer overall course, from that's if to right? great the the Because XXXX, of of something one dynamics business the back model, it AOV. we day, high market those December thing

to And that launch be as be Obviously, we seems that's very Bookland well. to something Westchester. nicely we're of so into translating as mindful going very

I those the we're so some comparable being are behavior think early seeing in the right about that And to onset we're things customer Mentor. trending in be what very excited seems of the and from to direction

Thomas Forte

Chieh. Thank Mark. you, you, Thank

Operator

the The next Wells Robert from with of Fargo. question comes line [ph]

Unidentified Analyst

customer you BXB qualitatively or share then momentum maybe liquidity. Anything can adds Great. a quarter. couple on in the And on

you? ex and then man that, receivable sense other the options on facility you how available tell or anything the that update for about capital thanks [ph] purchase thinking Just about could -- and And adjustment the maybe us rate forward versus the the may to a you just you But wondering conflate be us wondering committed of you're if financing, could give settlement. if exit could there.

Mark Zimowski

thanks And question. much for Yes. so the

and active customer BXB. to So to related customer with regards ads accounts

we point. specifically that out up this that's until broken So something

is of BXB we I customers is would the towards one resources marketing we're obviously, our that investment more on that forward, shifting on the so things and shifting acquiring side. that what as And say focused move

one obviously, higher things shift order I that our going as that are retail tailwinds to continue customer I is kind forward mentioned forward. business higher that's is going hey, mentioned we what's customers, all to active move And why overall to So we total AOVs, as as as because to to nice we layer move what frequency, anticipate of of mix deeper, going BXB higher right? perspective. overall all earlier, we stickiness, provide active dig that the those as BXB grow part has into is from happen So KPIs KPIs well, the of base

lot around reduced able we're accomplish to profitability on there. and by liquidity excited than we the point. brought that being down is the we've more measures Now, cost a cash Obviously, We a the been about took driven half of of in we Obviously, moving quarter-over-quarter side basis. significantly made, on some improvements what QX. the that by savings to for questions earn, that

additional thing is are those different as great In addition opportunities capital the mentioned I to exploring, we're a near And actionable here the I think opportunities. term. markets think comment that out earlier, some few are that, that in I there there dynamics. we will But seeing in

as so we move the that the we something in And before able announce into very market to year-end, we'll hopeful year. finish we're be up

Unidentified Analyst

Thank much. very you

Operator

of Marvin question you. Thank The the from line with comes BTIG. Fong next

Marvin Fong

a where Congratulations cost that the anything or or up to about. is be your emphasis. about a those we you've the think you hear more bit comment just and of another the macro I do first picture. any can to further now that there? of do great causing any think, maybe Have cycle the given Maybe pipeline mix thoughts you it's go? see you optimize the second there historically there? to how I where just bigger been be shaping oriented on might to to on concerned on sales historically on be more is you'd And on mature espresso; BXB, that then about Obviously, the question progress. maybe lines guess all along level at -- And issues the Should consumer profitability could maybe any like a optimize side quarter. things extend question, that position roughly since just for kind can BXB, kind

Mark Zimowski

Marvin. so Thanks much, Awesome.

with to kick a question add BXB the color BXB on it to as start both and off probably of little Chieh bit I'll then Espresso well. I'll and So

BXB I to do will So with to think anticipate were that certainly, the longer medium regard the of pre-pandemic. mix shift to we over mix, above where the start term, we sort

our XXXX, the to about sort to put of out So was demand. back as we was investor what last a business X/X presentation of reminder, year BXB related during going that in customer

And mix. so as anticipate we we do that forward, surpass should we that move

things that continue we'll As Sam of to there very, there doing iterate do But this The our many, to really in mentioned and anticipate on to the up we're not the there as improve shipping of side earlier, that points better are we thing that And we our the better order How business. hone contracts move packaging How areas that we're see of profitability quite right? specifically, and contracts we work economics as are BXC asked, do penetration been of as profitability in learnings are utilizing X in the up do average the sort transferable BXC years terms forward. very as drive we've but BXB the upon. good of from for that seen standpoint of dynamics upon on we've we a in side many anticipate of drive then, value, well, BXB that occur. we do regards BXB same think the order on yet to that well. negotiate lot space we higher I overall of many unit so you extending a the customers box? that well there beyond that is With opportunity to overall, we and the sort

Chieh Huang

of Chieh. And of you joining Mark Thanks very BXC. for the me a looks I and little the a question. absolutely on what customers bit lot bit. in that if similar profitability ways, could said, let true a BXB of kind And for much explain increasing to very call that Marvin, the got expand of playbook

our each you've Day So kind drumbeat most and are of particular a when of AOVs. It's I'm profitability sure one Those of since now, at it's business a then, steady kind talking other pretty values calls good probably well. -- heard important we us it Analyst met found for order of probably several segment because to of you've first us constantly -- good KPIs including average overall correlation we important as so joined of pretty has us. that about a with our also

higher the we're in AOVs, from more you making box. money the that general, think could So

So, when increasing on what we we how to us can to is AOBs and folks. BXB, you think these folks about we do what these change sell sell

year. So done we've come the so that if well, gone do public last And be that should third-party our so increasing self-service, categories we've marketplace which or increasing first-party when more just since -- SKU there's a potentially count they by then is we we offering could they and/or into customer buy SKU service, can more items. our count as both of

the to can help mid-market the folks to of AOV call for kind we is way enterprise representative bigger who customers increase a how engage get customers them, actually do can the change other we Now these we upsell them. and

margin where they're of because they if AOBs fund because other the up. some and they for for they'll And some perhaps save can a money compelling buying just purchasing that water we free also a higher sell, shipping us go with the it's time water opportunity good so items perhaps be of good it's thresholds if well. little So as them show bit then and them other can consolidating we tripping

slight with very that helps. modifications. similar Hopefully, So, is playbook

Marvin Fong

to and espresso, talk you customers. of And just that lot. pipeline on a terms the in new about secure sales helped that remind anything cycle you about Yes, might trying changing be

Chieh Huang

Yes.

solution, have have end-to-end earnings that's the the Espresso label we recent that put contracts that's So sales I a enterprise, The They're on Those white Vietnam we contract X-year the we moment. as vis-à-vis large at been historically is where most in low. contract. think had data signed where really we probably announcement. cycles X-figure

those So type and sign. time to to of eventually develop partnerships take

also you ordinary significantly cycles. terms do imagine, can general, in shorter So or of contracts sales a very as talk actively of nothing longer as longer multiple report to sell. to there to other But now time out What take is I well. the of with important is generally big EON, with also projects as discussing about and what that we're regards to the want those in pipeline,

we're of with Asia. at a basically them of entrusted moment. important We've the the market talked as those with they've us retailer well discussing Japan, Vietnam, so And region very us now Southeast in two. multinational every one largest that historically also today; with So for outside about Asian their markets that's other entrusting operates Malaysia, projects

So from we -- an feel perspective, about like today. feel the good we of pipeline as end-to-end pretty pipeline

Marvin Fong

Mark, all And for color, it. Thanks Yes. really appreciate that today.

Mark Zimowski

Thanks.

Operator

next of comes the Citi. question Ron Josey The from with line

Ron Josey

follow wanted is improving on the Shay, two. on I here to call profitability. up talked priority just about you

Just customer in line talk path been going pull about understood time Has over years. we sort sort Mark, active a as profitability or about the us mix us change means And active next forward? AOVs, to count, overall as that maybe BXB forward? how then, there about we overall time customers terms evolve the to of to to the etcetera. count, shift this the like we think of mix line, the customer here But of shift, about to of think see quarters and business, higher and what couple talk might

Chieh Huang

questions. Ron, Chieh Thanks for very here. the you got much

Mark. So perhaps hand it's and mic over off then bent I'll the to buy start to

and jump gross margin retail gross I a think quite profit -- in business. noticed with general, in probably regards you So to big

to So year-over-year gross took a XXX of profit lot that line over grow XX% It work and to by stress margin that. by hard also points. gross basis the I want

path, -- discounts. things espresso with with and have own a we using or all and will models with such done continue would the to via that to that, sure to are on to like do rates. our additional packaging learning whether if large conversion bringing announce even in regards so optimizations continue jump not that comfortable regard shipping, price machine further anything we optimize we Those about we that. So -- it's at further feel profitability moment I'm

highlight to What of these already changes. a in profitability potentially you that we are want because If remember is brought beginning last can by of some projected work. bit call, to changes these quite we

step we the ahead but so last first in off the over work direction. That's think path Lots profitability. And to as us right profits that we're hard our quarter. of I along of growing did

For additional conversation. bring like into context, the Mark really to I'd

Mark Zimowski

Yes. Chieh. Thanks,

all totally I points. those echo So of would

right of to change not time expectations now, any communicating profitability. around line as our think for I we're

So as EBITDA profitable. XXXX, adjusted a we reminder, we kind of exit when want we said be really as to that's

And is to put what well targeted we previously what that had feedback process. as as the of during so we Street of both had internally out acceleration huge sort sort a our from

accounts, customer active specifically to about a point thinking metric would Ron, we're the that particular, when is decrease what brought overall, to we spend of number that should say guiding as guys. on of on not acquired, basis. at that the be we in how the about I Now But course, in a quarter you the customers marketing the look go-forward on BXC led also down, especially

of a on perspective we achieve if to and BXB actual lower value customer from expect course, than customers grow. LTV in would is acquire that need to Now is BXC active say perspective, same an more as to investing the of shift side of we what investment need targets are customer acquire the customers each well, acquire, from from we sort customer for a that could BXB, will BXB, -- focusing or that as continue we acquisition. that and so we anticipate that that were into BXB much I we our What profitability BXB energy, to of do higher the much the deploy marketing perspective, revenue

dynamic kind customer basis as things accounts of the the really about and would think a well. on the seeing active that's go-forward way unfold that's I you're within So

Ron Josey

helpful. you, Super Thank Mark. Chieh. you, Thank

Operator

it additional Thank this questions to you. will closing remarks. back are time. I pass at There no for Chieh

Chieh Huang

Thank Thanks, lot you very progress everyone, forward trends everyone. with XX important joining over to over you the great We're much, to days. made call. last a quarter. for looking We continuing think we've and the those speaking of all next of this

Operator

conference Thank you. today's call. concludes That

You now your disconnect may lines.

Boxed (BOXDQ) 13 Nov 222022 Q3 Earnings call transcript