Beyond (BYON) 23 Feb 222021 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the Fourth Quarter 2021 Overstock.com earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator instructions] I would now like to hand the conference over to your speaker today, Lavesh Hemnani, Head of Investor Relations. ahead. go Please

Good and Victor. Hemnani. welcome Overstock's to Thank XXXX morning earnings quarter full-year Lavesh conference fourth you, and call. I'm

Joining of Johnson, additionally me that we for Jonathan Adrianne today's note today CFO, call conducting Lee, remotely. Q&A. CEO; Please Dave will Overstock, and President are be available Nielsen, are

Actual reflect materially and that of today, as such you remind and may me views forward-looking following discussion differ our XX, management's XXXX results responses statements. Let the to from include statements. your could questions February

slide Additional information could June XX, March, for that year XX-K posted factors available results XX-Qs has is of today’s potentially Slide A ended our December the today's financial presentation Please accompanying about to for and impact on Investor is and subsequent September forward-looking been included XXXX, ended Form filings to Form quarters website download. our and XXXX our in important X presentation. and Relations review webcast the disclosure our our the the with in statements, SEC.

measures GAAP call, certain non-GAAP webcast SEC the non-GAAP this The accompanying with slides filings of our comparable and additional discuss this reconciliations these including disclosures most regarding contain we'll measures, measures. financial these measures. During to the

for our Jonathan. Finally, let slide speaker presentation. also to me call Q&A instructions With turn questions today, to available ask during first the that, are session in the over the

highly company's managed team to to environment quarter industry-wide especially shopping of smart card or highly ability All was in quarter how during competitive on Lavesh you, our the We achieve history. pleased right what Overstock recipe call and delivered to during Thank gained marketing profitability, events. internally competitive we deliver the the provide year, spend our managed X business. for Cyber ad with delivered our good this consecutive morning period consistently with expenses, we This I'm a our online and in with seventh financial we competitive our its outcome. illustrated other intentional. spend our line largest value challenges the stated targets profitability. Even key everyone.

agenda During today's follow X. call we'll on Slide the

please. in to consecutive was compare overview online profitability share sales slide at, look considering encouraging our of for operating and our XXXX second on gain. our basis peers, U.S. is our the Based result performance provides to This Next an full-year, year share market basis We pre-pandemic slide, market XX of us double added and of almost metrics almost merely furnishing run rate. the share an we in grew which XXXX. Overstock points XXXX. home top points we of added This market XXX financial

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and great a culture. offer Next remote brief XXXX. our plan, of the headquarters, our are four our improved that all continue design resignation. we connectedness Almost work celebration effect remotely, will has to times our nationwide two November, The I'll or a events. In in of future collaboration, provide to on reentry to update for attraction Both takes corporate and work announced coming QX time which of remote to of most teams internally FORWARD ability year important work retention efforts. the our during and April,

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basis our was a of foot XXXX is industry-wide earnings tax the X% allowance, We our declined XXXX. Next improvement share profitability EBITDA and mortar proportionate was per to slide, release the challenges, per stated but spend $X.XX which X.X% share line ad quarter traffic XXXX. a customary while increased opposed is exclude achieved to fourth performance, XXX of and valuation our in of fourth improvement decrease done on $X.XX XXXX, of return compared including the when fund right navigating interim If diluted share as environment. our a the We Medici quarter two-year our impact we profitability. fourth point of $X.XX. diluted period, seventh truing of XXXX an basis. consecutive adjusted a year-end brick targets XX% of with up to A nearly to year-over-year, flat a Ventures earnings reported quarter. of in and and versus $X.XX by of Revenue was the competitive during versus a margin and Adjusted quarter

in with minimal healthy. net debt resulting the $XXX and cash Our balance quarter sheet in very remains fourth position million over We $XXX million. ended of a cash

program As reminder, million in board last $XXX a stock repurchase August our authorized year.

that It's in since will blackout note against a period program. yet meeting… have We I be to this to been are execute X. December important we

if to I go off may, for interrupt like and I'd Adrianne, script a moment.

on we how Adrianne. much price and stock $XXX will the period the current of repurchase of I view reflect does shares. to You’re blackout right note a our comment since I to $XXX program. X. won't expect the repurchase stock use owners been intentions or not some million potential of December authorized business. may our use million accurately of in our we've me, that say wondering I about board the are value current the when Excuse to

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business. exit at and higher to increases home It the is and our more brand non-home spend customers for right frequency. home with Overstock’s association strategy categories repeat our a Our move

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in this $X flat slide, expense chart past remained expense quarters and of illustrates percentage Next declined the a tech G&A both as dollars absolute revenue. sequentially. over by G&A and and and tech year-over-year million relatively nine

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tech line with absolute remains pre-pandemic Our in G&A levels. and expense

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please. slide Next

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to right off. we an driven believe uptick Partially And is previously some ensure the proof and the and physically of by sequentially in as Orders traffic. times supply We long-term was strategy. X.XX essentially mortar positive a point see the this in-store that believe we customer to in X% purchase flat availability. chain customers per fourth active this realized discussed, to home year-over-year. As pressures an market prompted trade our quarter, brick improvement increased

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balance cash As I indicated earlier, a in we sheet. a net exited position the year with healthy favorable

strategic while dream on that to Jonathan. of with targets, We to homes and for delivering be financial focused continue measured you back all, our executing our against vision

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me recent on pillars, discussion provide Before brand appeared I what business some the and and to proceed to on to clarity I'd some around our like that. commentary to departures executive misguided be

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the New roughly total estimates market from up $XXX from market our third party place previous XX% sources now at reporting. addressable billion,

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brand first Our findability. is pillar product

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to We in our are stated results with line targets. committed deliver

take Now, operator, Victor, let’s some questions.

from the come from Our first Instructions] Anna of question line Needham. [Operator Andreeva will

begin. may You

Great. Thanks questions. guys. so for Good our morning, thanks And taking much.

We on questions have two quick tough first off, the a really during controlling congrats quarter. controllables

question to XXXX. since marketing were time I sales on I So and this OpEx guess. A dollars is Adrianne, first think down,

in the for digit outpacing do curious, behind think expect sustainable mentioned quarter now privacy we During half. And largely and high as guys. growth back thank to for category then does the inflection the company? missed if us you of exit to sales and category much, do As the how that a And to XXXX, furnishings you industry Jonathan, is? for you for and behind is we should here in look Overstock sales home mean this the what apologies, change we improvement of it, see and year sequential starting now are some so but XXXX type the the half single into secondly Overstock expect specifically, growth impacts in you see first

you Adrianne, those OpEx. let and about for address question I’ll you thank first Anna, sales questions, the

don’t EBITDA Hi Yes. on Jonathan scripted mentioned as I remarks, committed in and mid we’re we single morning. to say marketing And our I digit Anna. kind to sales What of color line. think, his give targets. our specific tend adjusted will Good

I think ad spend. marketing as we’ve our various discussed channels before, we balance across activity and discounting promotional and spend

so at and as them And targets. the carefully all though those within manage we look channel

QX. that high QX Anna you tough a has as than I year-over-year market, single lower growth revenue and has slightly QX outpacing asked and And comparable mentioned historically the script the do as think, and about digit in been we

of we of latter the digit guidance we in revenue see gave picking up to do we the the growth So look year growth. high that annual single half as

from Seth of will question our from Guggenheim. Sigman And come the line next

begin. may You

piggyback that morning, Hey everybody. on taking want the just for last guys. Good I to question. Thanks question.

you are So first digits mean, that? more And that you you’re Is how Is Jonathan, think single be single So year of that be to that? a the the are suggest down right? would that do high assuming high home I’m normal growth in thinking about I about how thinking half you Or double the seasonality cadence want a digits grows year? online could right? for digits? wouldn’t on this into furnishings industry curious that year-over-year. reasonable about why just how just dig then I part, bit because the just little growth

to do with question. We that good revenue single-digit think industry going growth. high we’re least the at outpace Seth,

As largest tended QX last to quarter QX. a for from couple been the be year historically the of smaller years, in I of revenue-wise revenue mentioned, has little perspective. has QX our a But

tailwinds, We know a unemployment at a digits. single forecasts. lot little and think wherever bit. grows, can least market, starts look high it, the but we are the we There’s that we know that’s housing at So We of there’s outpace is market really headwinds, down down.

next D.A. the of Davidson. line And come from Forte from our Thomas question will

You may begin.

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question will America. from Our Curtis the of of Bank line next come Nagle from

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Good very much. morning. Thanks

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will question from line last Our come Research. Safalow PAA Brad from

You may begin.

it XXX your categories terms I of fourth growth like really drag more XXX a what organizing as you it quarter little point call. this the basis job on a maybe have half actual in in revenues? enjoyed questions quarter? maybe mentioned because times, revenue you just parse and it. the numerical Can from non-home the my taking specifically, drag out dozen I've for exiting thanks basis was point a in Hey, good to

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like me today's everybody thank for call. our in business. We participating Let

brand at aimed association Overstock’s is strategy Our with home. increasing

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

now a disconnect. great You may Everyone have day.