ENJY - Earnings call transcript Q4 2021

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Operator

Hello, and thank you for joining Enjoy's Fourth Quarter and Full Year 2021 Financial Results Conference Call and Webcast. At this time all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. I will now turn the call over to Heather Davis, Enjoy's Vice President of Investor Relations.

Heather Davis

Welcome to Enjoy's second earnings call as a publicly traded company. discussing well quarter XXXX. as be XXXX full will as results, our we our and fourth year Today outlook for call Financial from Johnson, remarks will Executive Today's Ron Officer, Enjoy's and Fareed Officer, Chief Chief Khan. Enjoy's include

Growth found In will later on Please that investors.enjoy.com. join session. to letter Officer our addition, question-and-answer Enjoy's CEO the shareholders us Bates, note Melissa Chief for can be

performance call, During use metrics. and will measures we the financial non-GAAP

full year should non-GAAP company's and You GAAP to fourth information definitional contained the measures comparable historical CEO the in 'XX and refer information the financial of for measures. letter quarter reconciliation to

and results will events, Actual Exchange could results undertake materially statements business Ron. Commission, call statements. with materially We or refer events including at that, to from future contain that trends, differ in our filings our those with forward-looking industry important We from Please estimates our the risks factors or and statements. business any forward to of cause Securities update the are which forward-looking forward uncertainties. make or to which looking financial or projections also results, projected duty And and I'll These to not can do over on be to investors.enjoy.com. turn the website found differ any statements. documents looking actual could subject

Ron Johnson

will XXXX XXXX far Fareed results. context how update And will first of in on with We're we additional remarks and environment provide you our overview are year navigating finish to we operating I begin on quarter been financial Then provide me with excited quarter discuss performance, fourth provide XXXX and full year some on so Hello, and today. quick and financial joining to provide regarding XXXX. with questions-and-answers. my the the have quarter you details doing will thank of update our results ahead. we our a for perspective the an to fourth

effect we supply by Unfortunately, newest constraints constraints, at last challenged of products year-over-year. increase performance. were at launched end range, on end were we quarter, at global the quarter during this an XX% of material fourth of the remain $XX quarter Apple availability. as in our the call. which expected the million, particularly the Revenues and During mentioned quarter our our for improvement had the lower third Fourth no revenue throughout assume supply in product financial guidance the came

quarter. to be it We which would inventory Mobile transitory access also that we In the negatively. the strategic made decision the current pleased quarter appears expected that inventory has profitability the Store pressures are fourth during impacted capacity, the and in improved invest

focusing us opportunities and opportunities opening so in currently capabilities are will excited time beyond. we for excited and Therefore, believe we ramping new spend and potentially capacity will quarter the revenue we anticipate results strategic for on XXXX during for XXXX the up right about fourth has we've we progress the exciting growth inventory partners allow Enjoy, but the this However, made in new up rather XXXX. direction, year not to our grow investment headed the belabor that With ahead. us

to what We expect to initiatives, for which inventory without we inventory the possessing importantly, to take the during strategic in changes, should also Most orders launched new we report introductions. quarter. mitigate similar technology we time future fourth are including XXXX challenges happy future the fall to have product that ability experienced

face the the in execution. it challenges learn QX. place as would have improve a and to pioneer, challenges given this our from gather back, capability have to advantage category been to Looking we we in But an continue insights

come how briefly outline we our for got new story, question, Enjoy, and those XXXX, XXXX, to we very if Since store a are Enjoy let brands for companies best the vision the accomplishments simple the out continue, how to to to on the have Before going Enjoy you? to where depend could world's in fewer to what started of to customer expect stores I to outlook are people figure the take best me the engagement. today. talk this for customer. about store with and and trend our Premium beat we

the at companies two or for start And home have head moment commerce. new. their believe upgrade share customers home what's next at to advantage As our Commerce to want devices a of with we the platform. built Home will partners every three great and win this our years, is We take frontier helping

powered platform by a combining proprietary today, Commerce eight standard poised company win at last customers Today omni-channel as go-to-market gold for are Mile of partners purposefully time we our have believe over and to a and our Canada, the to Smart we home. we combined Kingdom retail Enjoy's portfolio and Last in the scale public create entire that access technology Last at-home States, management, partners customer rapid of to population. platform XXX have is steadily efforts profitability. single United our experiences million the is serving full employees in with and at solution. local experience years, to what XX% over us Over led to Mile, United help inventory to a service expected new Today where our we provides and a comprehensive Home revenue see built that out growth we These

We we can as through partners doing Last quickly efficiently trusted all or experiences win see at-home. and with Mile, to that We deliver revenue expect can door platform integral this and the that ourselves our customer drive an of incremental can the partner products to home the part door that outstanding satisfaction.

is the inventory tech have our Stores, is are majority are from and be same visits Our in sources. partners deployed other customer. The which And functionalities because Mobile driven Last next day forward for together a The from eliminating fast. centric, day, integrate solution can cobbled Mile that we of provides need or deliver we unified minutes providers, away or platform we the customer hard. with to multiple

on Our the the highly and stop right trained spot. experts providing with software hardware, on vehicle we offer activate our filled trade-ins store. with subscription customers the value saving But trip a take the and Ready to don't set merchandise, services the up devices there. spot, experts can

we believe we provide partners Importantly, the our deep engagement desire.

shop; and Our customers lifetime both significant of what at-home. Promoter a to positioned to validates this positions XX become the most coveted we to comprehensive we and we convenience, which partners think of our We to when Enjoy customers Thanks to our are better ever underway value speed, Net and sure provider, our ability loved believe Score have platform, a unique shoppers. partners personalized by deliver and make a than experience desire worldwide. Mile they enhancements Last comprehensive win experience

Enjoy Let's to 'XX team 'XX. each personally the thank challenging eventful their and and of member look was very incredible year an for period. at proud a contributions creativity want I for more Enjoy. be team couldn't during

been through team's and healthcare crisis appreciated. deeply has a Our is profound perseverance daunting

our October Corp the business with launch we our NASDAQ public accelerate company. our on Enjoy XXXX, completed on a capital Acquisition During to journey as combination additional Marquee and and raising growth Raine debuted

the the was operating our quick products value of retain expand efficient to through addition offering our relationships hiring their with door This number to believe we with deepen of hiring robust with ending Enjoy's XXX recruit, substantially average merchandising the capabilities increased our the challenging to deliver Stores programs Over spot, capabilities expect Enjoy more best revenue profound Best customers. our successfully a customers our we we customers. our platform our the technology houses We to purchase than to served utilizing the global teams. We we ahead. partners expanded all and to of double partners Catalog that we enables proprietary relationships in leverage our smart operate the labor which tool in to in products capacity bring capability deepened partners the believe attracted to continue we we us XXXX. of and A experts. a added and ability the we best policy We committed have to December. during believe will partners goals, rather of to strategic continue We into in consolidated deliveries visit. meaningfully contractors significantly we the our XXXX increases with our by exceeded provide to Live we for new added than XXXX have door Enjoy will Stores and talent allows Live We during to of the in of to customers. our our store amazing and local partnership successfully Catalog, remain and Mobile and customers a of so XXXX. to experiences. our Mobile new gain the year, Stores. with to our existing in directly key propositions employees, expanded Store we XXXX Apple infrastructure And technology the during Mobile the new year that do all, Telco and expanded plans on number house Mobile mobile independent expect store was train and One most course of we which per and Despite is visibility as developed market, the

be XXXX. enhancements of XXXX will We have during shaping is to to number that great a year. a We Catalog Live up see roll-out

focus store and technology. business leveraging Our Last achieving this our is structurally scaling our inventory our Smart Mile, improving with existing profitability. through position the leveraging on year partners, proprietary mobile

partners to plans include in and our relationships new our Enjoy. expansion, to expect serve. America, deepen each We expansion North of partners, channels place have geographic our as for with these In

in and markets North plan additional the expand the nearly XXX third U.S. in to alone. an we us to allowing During XX quarters, second America, to reach markets

we to We to Additionally, which we we future more partners, on customers asked additional are able about North a initiatives than currently by today on the look have more behalf. of forward call. their these been expect number American reach serve our sharing channels to double

fourth and believe is speed XXXX. will Smart which Last online platform, the second in continue to accelerate ahead. launched the is years in Mile our focus importance quarter we of shopping The to essential area during We

in supply be requires with deliver and inventory. regional believe speed. houses We becoming Our And deployed are partners conversion. combination warehouses as partner our local we our our of speed partners want superfast optimize drives forward extension an to Enjoy management inventory because speed online chains fast

us percentage our partners ahead, as costs are a During the to we all. But expect of to reducing our not manage products partners. shipped year higher that's and directly increasing speed inventory for

multifaceted addition inventory. to improve By experiences, a inventory. to send partners strategy have deliveries us We doing more in

of inventory use the partners partners year which a the serve wanted will also new higher most ahead, secure. We share the in customers to

visits. future to implementing technology us take have we we're secured for allowing before Finally, orders inventory

be of to this operational time for season. the around expect quarter the year We fall third in this

we believe mobile have a Finally, we to path store profitability.

profitability the infrastructure, mobile eight stores will have we mobile believe deliver and houses volume scale. we store we function a mobile visits be visits. infrastructure, years this retail as This through of well more positioned at number believe built the store profitability. per year revenue Mobile During is to of previous Enjoy drive we and to we achieve

as discuss Fareed in and more see growth $XXX million to revenues year clear progresses, each quarter a will have we million. $XXX As detail, and of achieving sight full accelerating line between year-over-year

it's a are we potential opportunities. learning We new in in early and still because range year, the are providing about broad the

to I'll mobile XXXX also turn for as that, expanding results see outlook our more store profitability color provide and We margins on Fareed our and financial With current XXXX. to build we it over expect scale.

Fareed Khan

in with Ron, a for on results, cover XXXX our XXXX us. of joining you, we our are fundamentals outlook quick summary XXXX. quarter perspectives Today we the with finish start some are strong positioned Overall, growth for you fourth and solid, our and all and Thank well believe demonstrates thank for I'll XXXX.

towards primarily mentioned million, ended a visit. reflecting direct XX last more costs more America we shifting per during over potential down revenues that our on variable $XX.X revenue mobile store with in revenue, transition. revenue reflecting and our also $XXX.X footprint time, including generated XX million the call our XX% out expand in structure the million, fuel million our the of associated million revenue Europe reduced our from lease other upside but expenses, compensation, vehicle year-over-year as in during $XX operating December we the items revenues representing For segment North offers believe we year, to or reduces $X.X Mobile model growth. store XXXX, we million. capacity. our transition months Stores, $XX this for are increased were year. were the net prior Cost expert $XX.X And the U.K., investments We've mobile XX%

year for store million. mobile was loss $XX.X Our the

by expenses This the frontline onboarding expanding support of experts, and training with and year, of geographic reflects operations growth leadership over with in higher our the also expected $XX investments increased recruiting, we coverage continue in million expenses to technology our time our scale. because driven to expansion million network $XX and Our Apple. level and market full

We earlier. related and reflected administrative $XX being in investments General also company. of costs, readiness, areas public a technology million Ron transaction and insurance public continue investments associated higher and fees audit with mentioned in company expenses

We $XXX balance of Our loss $XX ended cash the based EBITDA of Primary the Adjusted million. compensation net the and a direct costs year the loss $XXX higher adjustments than transaction from was were expenses. a million. with was for the of non-recurring year through close year prior transaction million. stock

to for quarter. our the fourth now Let me results turn

constrained quarter material the As from to very Without million constraints growth improvement chain Apple's over product week, impacted finished revenue additional quarter. issues by our by meet believe We supply lower we of supply latter stemming our the demand each $X.X in introductions end Ron part our the towards quarter. a the million of mentioned, seasonal issues $X was roughly third revenues guidance. supply, supply partners. constraints generated new well our by for our throughout with the and these the in impacted and $XX million facing to year the negatively the volume strong These materially ability

a of the up XX% Europe expansion revenues North AT&T, million were $XX.X versus $XX quarter, XX% reflecting American choice earlier. in the and revenues up Rogers. revenue And capacity fourth achieved year-over-year, million constraints period. despite quarter the third $X.X of for but growth prior year-over-year our strategic second As as improved. to total the million ready key the year our the I result sequentially. Apple, was as increase product was and a substantially for XX% store result, transition growth grew the mobile of our was partnerships this important inventory in $X.X million down discussed A from factor be to availability to accelerated with

daily with for average QX were an Mobile markets, Stores Mobile Store Mobile month exit daily daily from our ended XXX the December. expert reflecting XXX our to XXX December. Our at We average count successful added Store American quarter. our in for monthly of and the directed quarter count of additions onboarding the North QX. We September These recruiting efforts during

factor quarter and third was door. the new the to capability deliveries up The scaled quick on efficient during focused the we

opportunity As Ron unlock platform to growth through we believe door these visits And Last incremental is opportunities to and visits mentioned, Smart expected this move additional the as experiences. represent to forward. Mile door demand our convert capability we the to new the these into

can the the But would complete quarter quickly. we also the in fourth much following not The the our generate results impacted you three ways. experience. same do complete As revenue expect these through deliveries covered a visit, visits door just I more per factors door as would to these

impacted which total growth. supply our visits we the First, were able constrained achieve, number revenue of constraints to

daily Second, revenue the term the expansion Mobile Store the Store per our of and footprint particular. the Mobile short of for door strategic our launch metric capacity constrained overall profitability, decisions important during progress long in and the our Store term quarter. visit towards Both Mobile through

Mobile a per visits visit, Store is day. Our daily per revenue and per of revenue function

and visits, we more including during that we visits been the Telco for has cross-partner Apple Live have visit, of attach revenue in driven visits. year, Catalog, our customer. by more making several progress been the engaging per have home and During selling services are factors quarter more as we inherently the solutions steady on throughout as This

necessary quarter. Our what have day achieve need stores keep visits Store our day did per we enough to profitability Mobile for were fourth well for per below visits the profitability. not to busy the during the supply We

dynamics on fewer Mobile me additional now let visits With performance, per visit experience per and was visits to top revenue daily line offset these Our metric our and other reflects items. for turn Store context by P&L per day. revenue progress back that

the revenue Our third the million, $XX reflecting costs were our hires capacity up administrative $X sequentially Mobile during the cost the from prior million and General from associated OpEx which quarter $XX.X with Store Mobile $XX.X in mentioned. Mobile and driven year the $X million period million the quarter, million $X were $XX.X by technology capacity expanding the $XX.X transaction. sequentially up and from driven quarter, was million for of I Store and close just compensation recruiting, year, by lines, primarily operations to million million totaled loss Store and excluding million $XX.X was and in expert additions. the investments the onboarding prior expenses quarter, for training and of the and and third stock-based costs turning

G&A with quarter Our flat third results. was roughly our

We Our the of quarter reflecting from for net a balance Adjusted quarter $XX.X loss the was of million. cash October. quarter a the transaction ended loss $XX proceeds our the $XX.X for million. was the EBITDA with close [indiscernible] with million, in of

Our raise all we well above last year to goal to spec the future investments was growth. the drive for needed transaction capital

Our to to capital, are we growth. planned update pursuing for, expect avenues than proceeds on and progress. And partners transaction working and fund needs. shortly our less investors from you and our our several These the solutions, debt were we'd equity meet our avenues with to from include support we

strong and far as accelerating outlook, we As XXXX. expect during growth

in a our capacity, we ahead. Store to and see growth accelerated the stage the investments set Mobile have network support ready We with

range. mid-XX% to We revenue expect be first the year-over-year in quarter growth

Mobile availability, continue number growth, revenue. product improving limits improving availability and visits quarter Store This availability the of the With new we've in visit been capacity constraints can we expect and inventory to product impact we margins. while deliver. have product Mobile economics Store the During improvements seeing

While in profitability we setting Store stage quarter, expect to first don't we the Mobile are Mobile the at achieve the full for the be Store profitable year. level to

$XXX we in For of to the be the revenue range $XXX to full million. year, expect million

a full we're mentioned, being new year our because Ron of impact in providing finalized initiatives are range early As with partners. the the it's and

year-over-year quarter each the have will stronger prior. expect We than growth

I'll over CapEx minimum profitability. we to headquarters turn our and Finally, XXXX existing it expect achieve in back with priorities leverage investments improved to infrastructure facilities our that, expenses incremental for to Ron. And

Ron Johnson

Thank for joining you you everyone thank today's Fareed, call. and

do quick partners home. through the Thank personalized With plan thank last solve is they that up to come. experiences their points yet best, We win reiterate up, again have proud at customers, like best our and and a for the am call am their first platform near Enjoy expect believe I continue Enjoy's Together, showcase and wrap to and a mover doing keep our for learning I'd clear technology pain to term off of believe of of allow support, premium to has positioning environment enhanced like deliver amount questions. we and mile the partners open and how for operating throughout our that, us demands from will Enjoy proprietary with we'd from remarkable confident to address of and we to continuously Before your relationships, XXXX partner strength uncertain you. I us. that and how and employees of a our future. We kicked continued you to to what evolving long listen solid position we resilience advantage

Operator

[Operator is line from Instructions] BTIG. with Fong a The first of Marvin question

proceed. may You

Marvin Fong

just with I questions, the congratulations taking question. start for Thanks general progress. a my I'll guess on

news, so technology how terms of, inventories larger sort that did in the of secure closures that level revenue of you to think that clearly guys the have should in forth, your your you with we inventory, the for be to partners, need impact your your China confidence year? objectives, when you'll of objectives important, know, some to type and in what able read about meet about factories, You we

Ron Johnson

Inventory the Yes, question. on a impact you for this is business. thank our Ron, has big

chain. Unfortunately, to worldwide deliver we had it an was It a for as the As ability for impact. impact. planned pandemic we and just had visits impacted impact our as about major on talked an had supply QX, adverse many

first month, month though, said is improved it each Fareed every As the gets of quarter stronger. inventory

an today, If to impediment you inventory to not Mobile access look at our profitability. Store is

to information China, worldwide we we happen hard forward, geopolitical have COVID However, that to. in access look in events predict as it's to don't to with have what's access and you going wouldn't

major little goal And so, more, our a Smart a we a are talked is call. doing We us. to our to share to do business. by about afford Example, Last they to structural larger in Mile, impacts Therefore, inventory when mitigate inventory play bit partners we that the of changes. have

to more most skews, go skews. with very As initiative hadn't working the technology reason is be door, One going just wish that change we the focused holiday, even their all for Telco they're closely we enough, most we skews allows the to to their one, through you We're will inventory. don't on placed to another higher - have important back, having new access the doing is take We're to in them Almost door more of know, popular enough get we a attract ways, it's percentage could today, last and now see of which the all inventory, most us. we're and serve more, to those. we for I to from most serving variety us inventory we them a not you to customers. if are give looking people orders, But have reserve inventory. partners, have And have the that our is as carrier. popular important partners

customer two because deliver to two week to the the shipped in order be is now. we would of And product could supply an product out, chain, weeks. So take if a us

for mentioned, holiday. place that be will As year's in we next

And as shape we inventory pretty it that's to Our right an goal the the now. is make good inventory But through take strength. impediment what in is of year. and instituted business

it's in but It improved QX. a events. QX, impact impact in month. it to issue As be to every did forward, subject an had have expect we going major It a big mentioned don't worldwide we

Marvin Fong

would like that an just ability inventory - quarter was the That's issue or to double to to that hear. And to take orders without I last on in click think great that, having two. I

you - channel the to store say, physical a now customer an in you at So now? you as do Because store? basically know, AT&T prioritizing putting or know an that. compared are Are able of who's how terms I to specifically, or you in priority are order at parity before you weren't

So with of this how always third be that is in you parity - quarter new capability, potentially at priority? terms

Ron Johnson

that a store years. is Yes, like, It is did that this have we not at a capability instance, within has capability AT&T existed Enjoy. for an for

our two week launch became two, six year of was challenge, a three we more This years to when of had much product first greater visits, the delivering never from available. During pandemic. than to because

online now. As went means they to the would at some at a AT&T, in have available. not Enjoy where carrier place, store, arrive on doing would at time, and we impact or would inventory is What availability. we're inventory the equal date that house is or situation that I the customers. no same went either our sure in about It of wish a But carrier we there's same we currently but it into had to store, mentioned, have access

Operator

Spartan with Fong. Thank Barry Capital. next Mr. of from you, the The is Sine question line

proceed. may You

Barry Sine

taking visits wanted grow given of drivers And getting to are that $XXX Stores Mobile drivers looking what guidance $XXX a the the visit, better through about project, XXXX. number, I call. to to you door, are million the the the to you've revenue guidance day, U.K. understand Good per more for number more is for expected evening, ask that, some thanks per out? of my key also of

Ron Johnson

take Barry don't is mind. this you Yes if that Ron I'll

throughout quarter. have did Store capacity fourth Mobile We added the we

Our previously, to the More to we're lean more and hard operate. want success us We stores we how they us partners look good really working And having out they pandemic. and we're more those. many had they us operate, tell employees. meet in coming success, better and mentioned shopping to at want we're retain as people very our are to We recruiting, partners, want online. of

operating more the We'll partners we're with our during Store an Stores, So new drive we'll our ahead. are opportunities to things because leaning as increase the of in be of continue holiday, channels in product quarter, serving to When we example, growth. these more part markets Mobile America be all footprint additional for in month We'll new to XX North Mobile the next take we able expanding get launches. be orders as us. back

range partners so, a revenue of to to $XXX million, expect of wide ahead, we our do early But of a given the have million working year. more with double And range we on a $XXX it's year because in than variety initiatives.

Barry Sine

and going new year, what little back the like then launches, And with sense of a And guidance sense and end us also that this is for you and first loaded. already I'm things you've seasonality will that on season given expect be? to back-to-school iPhone be revenue holiday normally, probably quarter a know of the us you the number if give you could guessing

Ron Johnson

you do that Fareed, question? to take want

Fareed Khan

Yes, question, the thanks Barry. for sure

see we accelerating So quarter. strength go the we And you're mean, and through not inventory we will right of steady did have I this as that situation. given part which growth year's be obviously QX, the is the lapping

our of talking we've of that about the also there of couple is, of a because the lap the is split, about will fourth. talking second strongest a be weighted the half, be seasonality being This sort call. And QX partly XX-XX year. the QX new initiatives Our the through build and with we'll bit been in a towards little opportunities more typical that quarter

for The very plan focused other core it's our year, around thing I for just our mentioned businesses. this

P&L. growth, the really flow through centered, Store top and around watching we're that driving So Mobile through and profitability, line

going about and So through that's which scale, markets, will then EBITDA. flow through core building through revenue profits, to from to be and the strongest it's positive really partners, shift core down Mobile Store

Ron Johnson

U.K. Fareed. add like to I'd about the you talked Barry, And you thank

in the year to U.K., the As a you in repositioning know we last mode. year return was growth are

invested [BET] we Enjoy to of the committed highly changed XX% in the on U.S. per a know, progress they're model cover U.K. have higher component. our works you We revenue in U.K., partnership. what where made last tremendous the year, As to visit get we've to in variable revenue We've business

adding speak. many are new We're working we on stores with we our initiatives. as So partner

to the an to close part business I achieve we of example, travel return quarterly as as But percent of U.K., United in to visit are the we CEO in growth, volumes plans in achieve that and population BET top a States. a As place will review. return with the have meeting a to have scale to quarterly to top

So the and started to we again, stores U.K. U.K. revenue and in went committed open more the have drive

Barry Sine

my those questions. Okay, are

I You U.K., to want about were ask did Ron. thank you, but right.

Ron Johnson

Thank you.

Operator

Mr. next Group. is from you, question Sine. Thank Advisory Telsey Dana of Telsey the with line The

You may proceed.

Dana Telsey

service do and to door, labor does business the coming How Good profitability? of And to an afternoon, when adjustment product aspect model? for new just going with highlighted future the suggest expansion XXXX. everyone. not the And about of the with take fall the seemed the terms it the you model to of Ron, then going to initiatives, any a introductions? is was consumer the inventory forefront door, what XXXX and was orders couple Thank in on expanding that to the you ability margins the think there? time work without be labor even to talk partnerships, to possessing touched and to that that what that existing through the in new I you. does And delivery

Ron Johnson

first. I'll you, Dana. nice one take you. It's to hear second Thank from your

Mile. visits. delivery Mile platform and of Last As That's our us deliver door you launched lets the Last Smart we call we Smart know, to through the the that -

to During door. going the by got QX, we good

pick This And quarter, we an experience. began time. we XX% turning days Sony of there into delivery are that the do

advanced I think we we've time, communicate choose a help. simple of the someone you about them when They for bit. help can - say picks recently XX% been and when the way, by little we delivery,

experiences who people to increase the that becomes door shop share you And in an through And We to we forward. competitive as lot of know, having online, a just become our new fast so experiences. we the we the do for those door. deliveries a experience. as want could The lot advantage that are that is of home a of reason partners. going And be

stores through with experience going our are we thing the us and But volume chance every morning, door the is delivery every to we try also into operate experience the first to convert sure we want lets stores them to operate store stores, we do and we get, and full. by make door. So experience. grow that our to It we an visit

we - great we'll if best full so, at that, because not at revenue. converting the a experts put max that at the day, happen have capacity, a all delivering for in And store to generates are delivery the of experience

deeper more to and right. door to experiences the the So drive with to is partners, get our

when with Now customer orders the start pick change, in cart. we will inventory, experience an no taking that the really there's

when from the weeks have can we And the so experience now usual. that. now two directly to on Store would would Enjoy cart, will through the the customer inventory then do an house. we're that, We'd providing show forward in available, shopping products look know and the And a it let ship as our up We three door way. or go weeks I Mobile business We to we experience. do

in to assured experiences. retail volume mobile we which model, which is enriching we deliver that that So these it's experienced this inventory, line directly It should reduce the the quarter. risk with life have business just last our

Dana Telsey

in model, side the cost you labor what the hiring, and of are retaining seeing wages business? terms of on the on the And then impact labor,

Ron Johnson

for highlights are of market. our on people one We And really hiring to goals. delivering were brought the able was Enjoy. labor a talented really difficult year experiences of we in know for that off great achieve last me, a You that to start

time so with partners we One brought that's talk deliver. the generate we customers of can't under more the we opportunities during to because added the is visits more deliver many because new continue revenue about experience. team. and solutions the We quality we of more that and we reasons spent per that our with We have people today QX

career of is about, retention it better not one We it's Part hard better as part our on thing. it is just but and training. people. also, month-by-month we of refocused it been is retain working have path, and of compensation, to And getting part talked is

biggest and them we But As we've contribution at create compensation on Mobile employee we team previously. to what add we might of component methods deliver as same is programs, the have our compensation our higher here forward, And any for Store rate. build cost. the an offsets able to for - labor those experienced expect that we're as to And base margin look that team, them with issue our keeps we current variable that's a inflation.

labor to So our related is designed will the undoubtedly inflation appear program in compensation issues market. offset that to

Operator

Power line next Thank Telsey. with is The you, Baird. question Will the from of Ms.

may You proceed.

Charlie Ehrlich

It's guidance. for U.S. from you and to to on three on more I how or Can Store should between U.S. Will, specifically thanks split question. Ehrlich we we growth growth Europe taking expect, the just ask the know, guess, I guess for or XXXX the about Charlie the Europe the Mobile wanted front? growth, come more I from just think about

Fareed Khan

Thanks Charlie. question, for the

on see making driven gas on fundamentals we can get team, we've right, And our to of the we know, stores sort we talked the place. in economics, American you will kind be We'll about you'll really So in - adding from as terms step the we sure But growth. be unit segment, a we primarily build of there focusing and Europe. continuing grow. great we're growth of get in talked the we North then

What - We've infrastructure we We in terrific time. though made. got see of there. at huge time. you in But a we've got America, So great you growth. will to, accelerate terms additions Mobile North in there that potential the in you see the partners. know, place, is in momentum over the additions see Mobile Store we will of right We've market want terms Europe, Store see coverage,

as about we so opportunities as the as new year already it's have, includes that well talk potential capturing about expansions. progresses. And that really some the the existing And that to market we'll continue

driver of North international of So the business we our this But going lot America is see term. be potential well, markets as a to still core longer year.

Charlie Ehrlich

wanted Fareed. do America? QX in in cross-selling about ask U.S., expand the just you that have to that to And plans And just how gone North then QX? thanks is and any beyond Yes, in

Ron Johnson

Melissa you take to that? want

Melissa Bates

Happy to, thanks it. for on the question, cross-selling continues to continuing focus be successful, and we're to

live - partners. we on it have with expanding working and are We are we so existing

shared this to deck. As And is investor to significant our per revenue a our revenue see this we've in future. past you real our driver and Last and experience. in we continue visits opportunity We a with as discussed visit grow get Smart platform, the as with think the we in revenue per Mile more

Operator

Power. you, Mr. Thank

is with from Sachs. Eric the question Sheridan Next line Goldman of

You may proceed.

Eric Sheridan

the year taking anything the inventory. end, for you back advance terms is there thank to seasonality loaded that you in a Great, of to few Maybe of can do questions. nature secure the in

be done number to or So have some on you able some of investments as $X have situation? don't the those so second might XXXX. much. of by been you the dynamics of level? some XXXX the two, accelerated don't against the number And so deepening half it That can elements Thanks the or the revenue we the through the amount you in around the leverage have retailer that would profitability given terms Are second yourself investments might in of carrier yourself the put move of You partnerships of commitments of find of in sort to found attached XXXX? half yet sort that at in Smart then of initiative you understand better one.

Ron Johnson

can take take I'll Eric. you, Thank first then second. a the Fareed

that are we most the their regional of as serve the with, inventory customers them from supply XX going our goods - now an forward the as today of warehouses, of states they I mentioned Enjoy chain. houses on look manufacturer view strategically come I partner Most four, inventory is they typically doing U.S. views Enjoy important held can our houses. have that know, if they deploy now will You every inventory Enjoy in in forward, directly thing, three, side, across extension maybe local we're only houses to in to.

more, past the had to regional partners customers, allocation deliver more, new And We to not any partners' our And So can't launches. all That's that launch when we Enjoy our serving to that Obviously, new door inventory this we're it into inventory the of better not because our fall launch [ph] we to their we in the that can't that volume with year, others with new do initiatives system. with add don't when going all QX, in to typically change make to when get going - from double the of subject warehouses the like will the you as help products. us. houses season. gets mitigate in Eric, that our the inventories consigned. risk get that's product inventory commitments of that

launches. moment inventory, that's what technology do. So going we new be our And take do to have is able to to us to the the enable is product

inventory until available became we to receive this wait So had year, take to that to visits.

know, orders at AT&T is other, of be other with partners. whether and they're every you or moment we'll announced in year, line Next the taken are customer the products Apple,

through all skews And for new launches. ongoing secure inventory But more, so, the we we I about. the really can't talked of initiatives product plan can't the ahead on different

model. expect to to where a So risk major get isn't point inventory we to business a the

Fareed Khan

on that And to Eric, XXXX. we follow-up to, second show question know in leverage your of how kind gets just you

really Let me by two start important ones.

be really Smart us the channels, it us scale business, how more our for is know, first it The the to density with our an allows creates combine partner you partners. and capability, markets. more additional the opens to to, that and creates Mile it door, in Last key through allows omni-channel And door up

a really that's that's So - one. big

rapidly of one terms in The investments made in year. to the able out scale leverage capacity into plays in this following we've the is way. Store that second going be to Mobile And

And So profitability, on revenue as making cost per progress get Mobile improve, visits our been vehicles well we're if we've see core addition, per in have in day Store both that's visit, you our counts. QX Store Store has per our revenue. visits we as more this structure going as and visits, will to Mobile to lower we shift more daily think issue going And expert Mobile been day. in productivity have in a about

as intend to So coverage. in the driver a key going about We've a secondaries lot get talked our Store year, really lot through of And really we profitability talked we Mobile envision about. is them investments infrastructure these market leverage we're that as or our typically the either already we'll in have also we've made we smaller XXXX. extension been, the that in be don't adding that a thinking through warehouses. solutions, to of sort We've are we're about market talked have of But expansions and capital some as this very because spoke. like as with markets Ron's a of those go we markets, almost an entering light year, about markets, thinking hub

some our investments ops most there's, in incremental as IT to through and talked been our have into costs having - we've we put already investments There'll the around support But year. expansion line. be Store frontline in - So focused investments backorders of technology there We'll things be minimum go as about. like the Mobile leadership place.

and on through line. QX were you be then maintain sort finally as leverage you we out year. to if able related items that I mentioned, the G&A And as strong the of with know, G&A in take G&A, flat through our we roughly go drive to going QX, expect transaction that's so to flat And costs

we In to be as looking more for opportunities even efficient you're fact, go.

be our incremental about will selling, leverage through Live drive the incremental, that forward. the Mobile OpEx terms visit you revenue go same as path. still of So leverage we will per the talked know, the cross profit lines a We've growth, lot and revenue, with driving partner Catalog, [BET] through on of Store door, in

our of that growth existing know, is It's this revenue infrastructure of really, year. we've we platform investments So there's or no it's technology you drive new the those place. made. flowing existing partner There's in sort already types through really, geographies, going that to partners, new have

Operator

Sheridan. is with Stifel. of line Williams question Lamont the Mr. you, Thank from The next

You may proceed.

Lamont Williams

support I'm and as about for an you're much I the – XQ North this need e-markets to America, number applying the question, of for of you Just the year in what it year, relates last moving door? kind mean, go stores in barrel particularly from investment the impact to think to how ability store and think after capacity that, a do I we should

Ron Johnson

less, if XX Great, XX% growth. could. that about little could working will to impact details, serving be our a markets. And channels expected new addition I little it we've signed the these more, be because a could take the details working through exact will let be got the through additional for me the opportunity to when a we and this get We're be this to plans in we the how we're before, And markets. store those

that view - houses the though, expect that We build market can very having we house said got an Fareed on example. we leverage already have. couple have. existing inventory of already over We've delivery them Enjoy investment Enjoy The As the stores, to in infrastructure for we've small to and It years includes existing And includes we our be Canada, we've of our built. capital without do last our we to strategies. light. working been already all,

to leverage will many markets, satellites to be our of Enjoy these going pristine of serve we're So infrastructure which the houses.

other Lamont are inside is And markets so deliver work detail these question… that And profitable expect we we'll forward. very going and we to to as we go growth. more you give there

Lamont Williams

XQ Omicron, impact? Also of the seeing an saying you're well of Omicron much is in, as impact

Ron Johnson

the door? one take through Melissa, the

Melissa Bates

to. Yes, happy

have their the making are see experts indoors, we're we our because customer safety variant, we safety place the and And future are sure you is are With outside. keep we've do per superior this in protocols in when is to we many more and new can them able going and our our experience any That's talked through is focused there through that are door you're the visit customers even safe - revenue So and Omicron the so door. the what higher. customers on we go we that and home than about first. safe, when comes that

found is are the especially into coming opens that comfortable, us and with more getting broad have have we general, customers world as what the but we is found, home. a what generalization, So this in up

to we and working keep the are with So teams our them safe. customers

While door we which to we're experience experience continuing commerce especially our through Catalog, Live the like through the that well, we're works delivering going door sure leverage customer make home when incredibly go to tools and see the possible. best

Lamont Williams

Okay thanks.

Ron Johnson

visits And U.S. U.K. going majority in the Canada. through The that experiences the experiences the of are are vast we're the we XX% nearly door of now in more. are XX% are - door. in we our closing Okay, through the over door through our

a are want we and XX% that's more as great we more that So a back revenue we and customers get impact are experts to our through through visit. have everybody. will We we're wait for Melissa the really to going But experience comfortable. per more door comfortable doing back to when good the can't the said, provide for get door thing

Operator

Williams. from of Capital Thank the Chukumba The line you, Market. is with Mr. next Loop question Anthony

You may proceed.

Anthony Chukumba

you for Thank question. much so taking my

exploring for and alluded you're sort Thank to you're the alternatives even what the you I proceeds directionally You're looking mentioned, you. do capital and raise timeframe? fact any much And you guess, looking And have sort that were disappointing. that. bit spec So capital? like, of to how financing you other of a that

Fareed Khan

that. take can I yes, Sure

spec get what So above our breakeven. original we - well you cash know, to for was needed cash our to target

than spec between a difference the finding target the means take what we is wouldn't is smaller I that. that original it's So and raised number what gap

we're first, avenues channels through seeking that with of I both As partners for variety options working looking multiple where a non-dilutive investors. and - at mentioned, obviously and

of requirements, half in in to we've of that, capital, the of want terms certainly of first But - additional at be announce landing the kind to today. you know we portion In least nothing a got the year.

shortly working some through that We'll news. back them. know with Just be we're

Operator

Chukumba. from with of Funds. Mr. next Gene is you, Munster question Thank The the Loop line

proceed. may You

Gene Munster

through if the this. picture, missed Mile, versus revenue sense we to road, the a think about when will Ron, one, Last But how two, the I the Mile I Hi from down much come big plus door? apologize door Last three the Smart give years about

Ron Johnson

for you thank that. Gene, Hi

revenue through the vast come of experiences. think going the door I is from majority to our

great. us is that You what makes know,

Now, speed. a there that are deliver a to consumer way lot lot electronics of partners, to of companies need a find

through of networks. the door. have [indiscernible] Many or the its their characters, getting know, of cast or You all interested them Google don't speed they're own store Samsung, in whether

they or offer Target do inventory an for Apple have So solution in a We does, can't what warehouses. regional many them. does

to cases, excited many bring them want But to work all to experiences. door door in of experience. we're we so, with offer And to a customer the the that through

let As know them I mentioned, pick when that help moment employee having that who we're coming, who people can expert is out. them at are full Nearly half delivery, great trained today. success choosing time this with a we

that for our given is that's to send pick. first to what and priority an they experience so And partners customers the their

we knowing delivery, The second priority some be convert would that those. a can of

experiences of years out. revenue and expect and to come vast this the year, our three We through the majority two from door

Operator

time. at Thank you, this no Mr. Munster. There questions are waiting additional

for any to Ron Johnson over conference the remarks. pass will I closing So

Ron Johnson

want all I just Yes, to thank in listening for you today. of

first of do You between to team growth built we'll we ahead. pursue know, have our We a with really issue. Fareed in could as we our public invest want of opportunities I'm significant that strengthened didn't double Store inventory profit as in million have In revenue year. you million difficult your we in really that, to technology expect we month. tremendous this or more and spite And said because see of back, and our revenue we Mobile $X have that as the capacity have revenue we Store a million, quarter targeting to are improving miss we customers an will - $X year-over-year. looking partners, week, serve in of Mobile our And relationship have the We're which than you next the we that out change It's addressed company. the continue with proud anytime put to that year the million $XXX every team year. quarter double $XXX

Store Mobile profitability. clear We path to have a

and in So expect update We QX subjects the in to today. year but we'll financing, At months look the that thank for as mid-May the we of to Whether our updating we and support call that, forward talked whether initiatives ahead. look you give call joining you look you lot update your new in it's about couple it's forward a we to on recap. you earnings on May Enjoy. you of in thank time to for can a forward we

Operator

Thank call. today's concludes That you participation. your for

line. now may your You disconnect

Legacy EJY (ENJYQ) 24 Mar 222021 Q4 Earnings call transcript