Beyond (BYON) 30 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

Alexis Callahan	executive
Marcus Lemonis	executive
David Nielsen	executive
Adrianne Lee	executive
Steven Forbes	analyst
Thomas Forte	analyst
Seth Sigman	analyst
Rakesh Patel	analyst
Curtis Nagle	analyst
Marvin Fong	analyst
Jonathan Matuszewski	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to the Beyond Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Alexis Callahan, Vice President of Investor Relations and Public Relations. Please go ahead.

Alexis Callahan

operator. you, Thank welcome Conference and Inc.'s Quarter Second Good to Earnings Call. XXXX morning, Beyond

on are and Joining Lemonis; call the me today and Officer, Nielsen. Chief Executive Administrative Adrianne Dave Lee; President, Financial Marcus Chairman,

the other for discussion year revenue, of July other growth, statements, file foregoing. customer related them and conditions, or agreements performance, as period, including changes or size, our brands upcoming management's include regarding or limitation the margin third outlook the of we demand, relationships and and today, to or questions financial experience customer XX, efficiencies, value for your of Today's profitability, reflect the brands and any loyalty price, our the views any of strategy, parties without may any any XXXX, and with remainder of of improvement, websites forward-looking investments, programs, our responses are the timing into stock future our entering relaunch with goals, launch, macroeconomic

results Actual from statements. such differ could materially

about for XX, information our SEC. XX, impact important in filings factors included is for and risks, ended quarter Form Form other in potentially XX-K results financial our XX-Q and year our ended our XXXX, the XXXX, that December the and the March could uncertainties subsequent Additional with

this we'll non-GAAP discuss financial certain measures. During call,

including our measures, Relations at non-GAAP investors.beyond.com website Our filings additional most of with is regarding comparable the SEC, to including the these our Investor measures. which available contain second quarter these earnings on GAAP release, disclosures measures important reconciliations

Please presentation. is our of questions. supporting remarks, on forward-looking the for slide A presentation Investor review available will that statements important download data X open disclosure for prepared management's the Slide on we Relations website. Following with call

turn that, Marcus. over the With you, me to let call

Marcus Lemonis

morning, thank Good and you.

as and are the our Alex morning, Nielsen. specific as This be Alexis progress second I'm Lee Adrianne we Dave making. mentioned, meaningful about company joined we'll -- and summarizing quarter well by our answering results today As questions

are a have there entered refresher, year. quarter a with imperatives the we this number As the of framed of that remainder

I this my second believe company's unit the approved with all that that price vest is the me size. do a recognize performance I off multiple make expect shareholders quarter, around only and that acknowledgment $XX. not great reaffirmation but operate revenue reaches start in growing make to awarded file to but profitably, appreciate our money the plan $XX, I'll brands stock money. when ability that and I Earlier while options things. we My $XX, all when only stock this conviction company

we'll I there. personally believe get

us contemplating drive there, as profitability. in those at maintain the with rigor you up management once today mind even For every our that know firm company along holding topics the single night. every that or invested to to And cases, some is day keep things that towards in it, make the team, decision I It's want an we imperative to we asset-light model. in

the a its expanding value while the most brand, e-commerce flow strategy definitive the as presence billion find thoughtful expand creative ways brand, even the position while to increasing Beyond, its one maintaining a and but & generate brands. $X be IP, only for world's Establishing Bath brand's of brand plus further, also to not Bed well-known cash home off

to historical Overstock, name than furniture, brand strong We categories. but leverage the patio that just return retailing in its rugs, a relaunch of value shopping and also want of focus to it its roots way to to on in allows more its

in and platform small, margins. turns businesses reduce essentially are and can with vendors utilize to particularly retailers vision, their leaving big inventory our their become to space the is leader many where companies our off-price e-commerce the and American They the own It North improve suppliers. and

the in early In reverse addition are to and entering business. innings vendors, the true logistics liquidation, of our closeout traditional we

jobbers, with closeout We finalizing material and logistics companies with and formal a reverse large-scale are liquidators, and a wholesalers reverse have relationships agreement formed logistics company.

are product on especially platform right brand with at appropriate right normalize the right listed We through at the margins the the proper working curation price. time, to

team, merchandising done both and led around the sides. reestablished with vendors, Stacey begin The They products curation work exceptional Shively, to Merchant, by direct process relationships both Chief for process key our profitability vendors. successfully key and has improving have

-- continue thinking quarterly next XX that margin customer files. continued need me, to continue to improvement excuse new and we attract sequential over to the XX we closeout achieve expect along new to months. technology work, with space, As to -- we technology entering we activate retain need to the innovative see Look, and our

improving functionality search up moving We to have keep SaaS up a around in us. significant all and constant catch tech push with strides made with

Part of retaining attributes, road the audience as for specific and data improving spend management customized and experiences them, attracting a solid customers is around building annual map. conversion

experience companies create and X X the and Salesforce efficiency help us will Freshsales, Our to like that over next months. relationship with

the we through the who as a delivered not companies as coexist inspiration to mediums. compete sector as shall same XX us. develop be expect content, information, ideas, Over and to other loyalty our us, utilizing unique with program, next database well rewarded them in with both That various months, do loyalty world-class who

and delivered social funnel channels, of YouTube programs. across the will the be streaming channels, Most content marketing platform,

slowly move We value be we lifetime -- acquired can newly will over realized investment towards customer. will that slowly ensure this to test return the of the the we to on move feel and

made have profitability. achieve in execute months, progress to past plan continue and to the significant our We and several we'll growth on

quarter, To We in target improved Overstock. vendor direct. established the of our recap, their bottom We relations, closeouts curation and achieved our our increased average and customer XX%. around launch roughly we gross active margin line new order. and improved by the factory improved through liquidation, We base our revenue partnerships second in

POV vendors another architecture Zulily, suppliers and Overstock.com, And launched the in over legacy the pipeline. the our and site is testing launched onboarding internal are app mobile signed We phase. the and We on our Salesforce. XXX with now in with trading process completed Overstock for CRM XXX

has This led as combination existing leaders. unbelievable legacy, Zulily effort key We Zulily our September targeting an well a on added and been are as team own staff of to XX. by launch of

also of sequential million We more than resulted fixed in which costs, improvement adjusted $XX reduced all EBITDA. in of

now our we their more Lastly, to structure getting also quarter. the And I'm it refined Dave legs. With our org well structure see so gel Nielsen that, starting during to to to teams pleased business. about of progress over working really the in flatter the I'll talk turn sea with

David Nielsen

the and remain that and that with quarter to each committed I'd pleased echo billion-plus to I I'm achieved key continuous of to have improvement what highlights brand. To end, $X to through Marcus. walk you, they Thank sentiment. the in operational for be. brands bringing potential brands like some back the these each team second the

saw categories are decor, & like and highly bedding, growth to emerging Bath well we but brand, not accretive patio to in bath Bed the historically value. like average Beyond, core strength as furniture, as categories outdoor endemic which are in legacy On and order

product comfortable entire is and This adjacencies, as recognizing encouraging feeling customers more for example, room. shopping the furniture bedroom are

from and our expanding seamless an a focused SKUs small that exclusively the category-leading, but we has While down experience. were assortment breadth we're curating to million simultaneously on, depth continue enough XX of to easy four customer to enough one ensure roughly and marketplace rooms, like assortment be within

suppliers making our in as resulting This increases. us, supplier curation margins base, their also meaningful, for impacts key more volume better

in the is merchandise think needle bring ago, years hard Our & will brands we move to important team also name number of working Beyond. Bath reviving which a back left that Bed

encouraging also refine as an it promotional we our addition proportion targeting further see In customers higher uptick from quarter, continue to to repeat and in order models. was sales the to a trend average of during we a value, expect

back. dominant early list customer the categories our excited Next, by quarter continue the progress we're our top on end of relaunch Historically, of Overstock in March, we're is patio the operations was confirming of first rugs, performing since and categories of we've the outdoor seen. and encouraged and Overstock. at loyal relaunch, area furniture to This full furniture, product the

assortment, has year. accelerating experience, anticipate continue gone a million increase thousand our the we our we balance to the hundred to As site from several across which SKUs improve and of few momentum

We're also in online exists space the into mentioned liquidation, earlier. Marcus that as white leaning heavily

conjunction customers in with to Google but launched more us which website. grand on we Search reengage more customers. our marketing AI, good is bold, even offer deals creative utilizing the in our reopening with way, launched And Finally, a to crazy a importantly, enabling campaign to only not inexpensive new

vendors, while brand we've know to progress we Zulily, were and legacy adding with with lastly, the new team have some great relationships working efforts Zulily, are mix. the partners Zulily key merchants bearing who hired on onboarding and legacy their made And as experienced established of customer important vendors fruit, also a

we'll require a must-have In assortment to also will be addition an member and be basics sales, to additive P&L. offering login evergreen offering exciting which on the flash site, of

In ship our brand lot has around. during the efforts to turn quarter and across been three summary, platforms the accomplished clearly there are a starting those

turn call Adrianne. now the I'll over to

Adrianne Lee

into X% year-over-year out Thank bedding second the we XX% patio quarter. Dave. X%, revenue by increased mixed in as and driven an you, Revenue declined of improvement AOV Sequentially, furniture. by

in that As improving while to second quarter. our in the and just a reminder, line we the deliver with revenue accomplished intent was quarter, profitability, first

carrier -- in period we to basis seasonal work Gross to continue patio costs carrier costs. mix quarter, improved margin slightly same Sequentially, discounting be delivered were main by and a point excuse furniture. These of landed higher XXX offset at margin XX.X% our gross improvement a last slightly sources Elevated were compared me, for margin these basis improve year. and as we optimize the however, XX to point pressure. into discounting decline the the

our fourth plan on to reiterate earnings improve to want our that X-store gross outlined we continue execute profile. I margin we our call to in quarter

focus run In some our more going accretive freight customers overall Thus Renegotiating improvement late assembly key now our installation merchandising for integration area see A&G, has our continue by and June, quarter, we our launched will benefit an to our upcoming Summit. Relaunching gross effort and is with which This improving vendor with saw favorable for brand is services. in our a and partnership Partner with product team ongoing the relations of this We add-ons. Overstock.com. rates providing provide margin, been forward, rate far, complete. to This we'll costs. carriers.

and of of performance. lastly, by and and on warranties made and shipping brands came We the with eliminating pleased end All expense value portion a customers. fixed those quarter, quarter our quarter continue our to market decreased versus to EBITDA $X.X loss brand the our tech commitment, reduce have embarking expect improvements G&A million, as brands clearer to million second year-over-year opportunistically of $XX driven approximately savings we of realized in, costs I over report of commitment launches. $XX to pursue to now propositions continue the in execution am inefficient licensing activity, second first by an become time X/X improvement continued of a to early of are annualized at amount $XX an owned we of insurance us by progress and pleased reinvest in the XXXX. million support $XX Reintroducing million. Through of corresponding million that We allowing to discounting. and these. And adjusted

share improvements the focus per Our Reported equity recognized losses securities, share profitability and sequential method loss for and business adjusted per excluding GAAP managing of in our a $X.XX quarter, EPS was on was to adjusted remains from EBITDA. diluted the loss $X.XX. second driving

remains sheet of quarter we a strong $XXX cash Lastly, balance ended our balance million. as with the

to In will to and we our addition our assets improve margin opportunities liquidity. create to continue efforts non-performing evaluate profile, to monetize

actions drive our our to to discussions We in sell investment have more active and have some our Pelion explore Medici to in value efforts accelerated building the headquarters ways including progress made with our we within funds and companies. In We in and while that summary, teams improve profile. margin simultaneously the building significant our laser-focused the our of on acknowledge quarter second promising made work are remains. progress more brands, three fund,

improvements path profitability. on goal our to to Our deliver is sequential

turn call the over for to final up Marcus like we Q&A. I before would to comments open back for now

Marcus Lemonis

Adrianne. Thanks,

final I Q&A, comment. into make move want to we Before one

revenue improvement XX% sequential XX%. and line and to of it's this at to enjoy history anywhere home important as that our historical our double-digit of as if well as notice up we from have come While Overstock we guidance, Bath by is performance business Beyond provide our give tailwinds both also better, It separately, our that a to ourselves that, our company not goal a It outperforms continue home range adjusted revenue we sequential percentage does QX the in very margin performance ultimately & improvement feel be you'll Bed you improvements not could we demand quarter expectations. When specific to look from third gross investors time a that than will rates, QX set from our products. potentially expectation typically trend. sparking to our in with that belief standpoint to is low minimum the interest and is that that for have to curate calibrate demand EBITDA. It our at

With that, questions. some take we'll

Operator

Instructions] [Operator

And for question comes Steven the Partners. our today first from of from line Guggenheim Certainly. Forbes

Steven Forbes

time is the Marcus, it about guidance, -- that a its the of neutrality as how profitability? don't cash how see if updates flow I'm you I any longer-term potential achievement and path sounds time to overall that, dynamics it of Is a or to you're sort that like sort of behind frame currently relates XX-month sort of of but an just talking frame I business know the not see sort overreading fair know, on like of profile? Or you're you margin providing business do capturing profit? state EBITDA neutral that on

Marcus Lemonis

our point better looking different our the That overall proper maturation how we it are identified plan. the to XX we're Yes, XX to XX months looking our But the of and business. we the is not some is set long reason parts there's and And months. achieve be we're at few is building our how that rec a profitability. process, headcount, the XXXX, to topics want before managing in because business. I XX is That we're in expectation that's to at expectations at able how and it

Steven Forbes

business, needs payable the appreciate and/or be should help cash of as optimization the of of OWC the ratio path, sort days the I should think year? the think you that second we flow there then, vendors, clarity. usage with And around we given relationships for or quarter OWC modeling about outstanding a dynamics, needs how sort is reestablishing SKU any about remainder

Adrianne Lee

these Steve, would Adrianne. I to receivables. this our guardrails onboard And we're within of say, working of payables staying brands, within kind and vendors is we're as just kind of typical new

of Zulily & of think change vendors as have staying us So Bath onboarding payable. as in curating would I kind our historically say of vendors, modeling what kind about or really you Beyond seen guardrails no within Bed you've

Marcus Lemonis

thing one to Let me add that.

that terms and also vendor standards, to performance, performance the expectation at look and of we that while in light for As is appreciating have make improve focus our some a huge need growing consolidation able continues meet better to to our with that understand and is cases, our it providers. improvement us comes that don't those enjoy be In to terms earn to the right some vendors consolidation we'll renegotiate even we that but our my we request, we as profitability. that certain

Operator

Forte And question Maxim the of from Thomas line our next comes Group. from

Thomas Forte

quarter. performance congrats the in I one follow-up. and the And have off, first question one on

question assets, relates talk monetizing Medici your you it to have related the potentially anything either first is, or the headquarters about the priorities, allocation especially to capital I non-performing as So Ventures? can selling Marcus,

Marcus Lemonis

Yes.

and we So in today, debt of to on from and in That be $XX laser-focused after candidly, flow a us million-ish continuing an allow with of an asset-light. we are a capital Lake be neighborhood asset-light even have that in million cash off paying deep reduce business. entered here the about obviously bring potentially fees. sheet balance party into standpoint, $XX more LOI into And will to Salt our the allocation tomorrow future

look our appreciate and of company And assets, the on some active for we started while Pelion, dialogue have to a recently have and at up the the more a open to between Medici the days. I put made and taken agreement we we role. nature As Adrianne slightly Pelion request Medici

our left and in company, that, those the responsibility do can companies, them to strongly hopes a those the with these of we goals. our portfolio. companies help very how went obligated portfolio. The and shareholders is Furthermore, not it ideas quite encouraged investment we they're have our part increase are for. our expectation, understand leadership of fuel think help it's and level them that and communication it frankly, money Now Adrianne have a companies to management I our company high but of start understand value their and to of our our relationship have for that so with direct number help or to We their mandate other to better in achieve can we them

place, has in precluded our our And our results so, own always the not understanding we we and having direct from are driving of while that engagement them, own we because relationship will relationship, put for shareholders. we Pelion the that respect that having with expect

always there a it alternatives Now to that that companies expectation looking portfolio, maximize want are opportunity. the significant our have that we few is real results but the we're at of exploring believe we with and investment, a

Now and results was the relationship intelligently doesn't develop today to on much be talk in for believe we realists. more respective from belief the we that thereof our one the the us I investors more what quantify XX but few they of Overstock with could with that, our just we we're or see Zulily third-party to we Bath to assets that more to times able establishment decades-long And Overstock did to has can is deeper investors brand are such. a independent probably lack best for be of Bed that the we freely the in a really the company, those our companies Beyond establish that expectation those and generated paper, that believe If an that to current is is. It up or who & both not think they marketplaces thing the made stand continue the valuation, ask that untapped. I company those may a not I outside sheet, would tell I Bath of that them, acquisition nature. behind exceed consider intellectual value with use the asset-light be that opportunity of the in those is we on firm of companies that the what know to brand way both will practicality, player Bed brand working that. we they of deserve oftentimes, of of believe really cash be that firmly final We portfolio call am an our the to of it. and in, in value the about us to us, it fight be to put We're is because but dog or are with us liquidation very, reiterate this but balance stages in and on have documentation asset-light they don't large what with business. companies. When like independent logistics an third-party very and about the But a as property through on want reverse the

ways that being will that We secured the of with that directly to fee all to leverage be lucrative expect our come in relationships company financially very and of opportunity. product way. And investments company out the very, them all sold cash-on-cash will move that multiple participation to where very, that that expect table, small the business or the the allowing Overstock only allowing made a line that, of directly also their to for help need that's and new Dave Dave's company debt going business. will this to in and returns very things that that Dave's we addition owners And vendors one relationships providing own do have may not overstock.com, may very including could forward, to he a in vendor return. We we of their to a expanding you very the a air website, brings see to to to their is but expect by had leverage just product to the in to that a need optimize be for handle performance database, them that in not make strong be partnership. that will of them on waiting the royalty provide to who ball sight form the for have There quarters, for not are Overstock.com the healthy healthy necessarily Overstock in figure anything brand, adjacency investment the contemplated rewarded Overstock utilizing exploring will historically returns of brands of our and a of ideas,

Thomas Forte

management second to to I changes efforts the bench. For question, your wanted to you my and made ask deepen your about you've

Marcus Lemonis

experience an love to necessity and Shively and subject we and I my world's Dave their up product the that outages that in that's with impaired. We all their from to and but the understanding body that tell greatest with the least I can customer have product. are team the missing, I love Stacey management company, business, of I matter fall run liquidations that. to seen from has the in them on were in only we attribute historically the that expectation And savviness vendors, perspective, closeouts love strength reset brand-new And in this staff From since you to of availability. be reverse week, the open requires willing at e-commerce has not And a that company's you've along beginning any believe and not to a been lot logistics. our to the light to the have them of to of underneath X never who comes as of when one experts the the a it Internet. table, XX-hour on need fortunate our all thing But team, our of a have of business days sleeves. disruption year our roll team body a time, it's supporting understands When XX/X, there's

product importantly, bring doing the and customer why nimble is the by able swath serve organization. a of is to time these a leaner It customers right be entry right right which to it my the to the various points. is responsive From for most wide have a and price more perspective, flatter, at a our to organization them, responsibility at we

and sense the that a people is is demand those to is observation. a thing other I business. subject understand an and experts folks Carlisha, we've mandate, It respective think option do in of truly like added that level urgency I are promoted Guncha we've Profitability definitively this we learned not will like in casual and is talent the they their matter reach profitability. to, or that everything of we business, have

I to focus this laser profitability to an clarify calibration we assortments a are the do confused call company. anybody be thing. want that think one absolute around and with don't to or want not around revenue I on growth on

name name importantly, first we put as hole, because known me reach name. of my very have have line And never starting my to out you until profitability could I before our that our will of foot more or growth. to the decades, come reach clear not from the expect on Once it, have we a gas. that hole. that me the of operated growth to, those for profitability, that's business traditionally sight level For middle needs growth middle is But and have in I be

team. think, have I we the

travel to. the and achieved we videos, customers our the We product way vendors way need their the pictures, but present way margins our functionality it those the way things confident right, the the systems, information, the the the through building websites, to price the to, I our until are to works, need search consumers, our be are how we've including and that

wasting We margin now company that be or is find money this profitability. to not the I will way the pressing to single thing anything. Look, can feel biggest on gas do its

Of but all marketing isn't need we to revenue the not are accounted improve our for, does transaction profitable the if costs. costs which means course, that, generating after

on this our first is tell added conversion joining be specific a and one on market goal global file piece items. Upon a my expense ROAs, goal focus different and small can a of the other thing. that. customer all delivery our way. That our did has is the to monetized build company, I database ultimate that not the My call changed, in Our the growing of website,

piece Another building alliances. is

can And months, so or whether building have you other monetizing profitability. That and ultimate expect us the X- thing. this to levels as of the profitability, the real levels of not or goal company reverse it's over of IP customer the the next X that variety XX-month monetizing company file marginal the logistics of to X database a goal a liquidation to see of is partners, to way starts or not

to So when and Star us that talking important months, months, XX that's have XX North XX I I'm distinction. to months, for say XX about our goal,

Operator

And from our next question Seth comes the line of Sigman from Barclays.

Seth Sigman

not figure you demand did philosophy really sensitivity to as things to maybe lot understand that? about learn? how the ongoing, Marcus, out. the use test to tie is in but the as on to baseline. try here chase the a expectation what of marketing that third guys And and did elaborate out? promotions I realize What this you right, that think, think is improve quarter still and quarter sequentially? And with to But sales philosophy the and you as for you period, this Can was into I a EBITDA the going play QX create to

Marcus Lemonis

Yes.

fixed our as were towards gross of So margin quarter, progress our nice that We to month, things. related marching to each I month-after-month expenses, improvement saw there's that. and a started in the went as we a out we into think, and quarter it see the couple closed we

expectations third as quarter. meet the same not unfortunately, of first Now the month month second the did the did quarter, of and the

noise, how was Olympics. and the As we conversations to geopolitical about looked said, consumer very the listen, some and as upcoming entered improve we feeling, and ourselves around we down candid the profitability, the quarter, the we team macro the about new attract need around we including a environment, had environment, use third e-mail sat improve find And do customers or prices. revenue, more very in choice effectively, contribution month, the PLA we ways things hold do to learn a have and improve overspend to spend or margin, to we strategically database on chase to our try do to raising them first to at our

that in objective confident look trend goal at always have I'm get Now as prices, level going or small in thus the that line, to but resistance, and performed Labor you here we you're for you sequentially tell mentioned the be and and earlier, to costs. When profitability like August third historical second when XX% also comparison in XX% that ad happy and third saw ready towards Day, we to feel with spend to outperform pockets. I'm Bath our while quarter Overstock our that Bed together, we and can far September it and know you we lighter quarter. will July continued the of all and performance as improving We for about separately I is EBITDA. marinate and But in improving we our in quarter margin, the the in improvements feel that to to get some quarter, only raise to now not second meet fixed make margins that sequentially

want of us where back drove when look EBITDA quarter-over-quarter brand Bed the year, last performance, test QX our call the be Super head expense mini our really we what the we're It Bowl on I that And or & Bowl. where the we the first transactions. But fourth the will for getting As we our of of call things. to other Bath volume is the Beyond would margin performance the mini we accept ready none performance. quarter, reason will into Super it year

our it could line. on in to lap significant is clear believe bottom year-over-year forward where the So improve the have to results significant, looking quarter to. And year-over-year goal a QX really we improvement we be we're first and that start

average way. daily essentially the As of the $XXX,XXX expect the the I X, trending margin sales March, nicely we at around at we end XXXX, very is sequential and seeing now Overstock, transition I which When continual at of $XXX,XXX. launch of dashboard, and April into growth look starting improvement, my by that Overstock I'm look

it like, several You sales Zulily can nicely additionally, we'll in launching some business, mid-September believe QX, but daily we'll extrapolate over those will out grow what to be the right will expect to continue revenue around more then but the in that QX. months. And we ramp-up from next QX it XX, more that call a costs we'll contribute September in standpoint, and have than QX, in looks

Seth Sigman

that there then follow-up, relaunching, a think to like selling play like about things Overstock how It success year? surprise. was forecasting how came one you just how how Bath maybe of in thinking from ahead you And the looks speak was helpful. ticket Bed this past out are in it. on AOV that? rest It did And Super about Can sounds revenue the slightly It quarter. maybe bigger you through could do some also that? role that of play the Okay.

David Nielsen

furniture furniture, Seth, patio talked and that's comments, rooms as furniture. order specific mentioned my bathroom, and and Average the adjacencies areas four Bath from kitchen focused Bed about an those bedroom, side, on patio outdoor question. in we've great of and I the the that bedroom is the had that uptick, a they

to was to average back also that's that where the and is and it to that Overstock we're these the which in furniture. on that more contributed a migration goods, As more and meaningful, categories, us. Again, that was legacy Bed an okay And seeing for progressed that that quarter, bed bedroom before, it's uptick. Bath, we that mentioned, mattress, soft to as seeing we that room Marcus just traditionally anticipated, and order very entire right buy through expected and the advantage historically we're buy value shop and becoming also that as buy bedroom healthy of

Marcus Lemonis

patio have Overstock today furniture, compare that we'll ago and some and as an a think of that does about other year it marketplace. year everybody Bath now the rugs different operating go is on is thing Overstock where and to Bed you launches, home businesses between ago, It distinct But Zulily primarily furniture, two to frankly, start be if a you just decor. similar Overstock to quite Overstock. portfolios kind of One three with selling entirely was to

open $XX. and that, when go apparel or you can tab the put order. name from it average to closeouts transactions boxes, furniture pressure or see on to starting or of liquidation direct And the brand some start factory like see You will on

orders the forward do differences and categories. that put going Zulily, the is permitted, apparel try will extent it the the on order, to average will beauty, launch which to we As the between differences best and we average between pressure in the we're our call orders out the average to

things items the other but apparel performance we be patio, of break as we will at and transaction distort expect the look counts like that, show we out rugs, can not to AOV, overall meaningful. if those we furniture, very brand ultimately small So from to

Operator

line Raymond And Rick next James. from from of question the comes Patel our

Rakesh Patel

to XQ, Nice Overstock you what's How active shape your versus the the between ramping? color first had customers? right platforms the to of Bed see revenue way cohorts We quarter XQ And follow on I'm increase expectations going you'll think or stacking Can since about a but and customers more came path the the from some provide both from are different forward? about versus growth of customers your much progress. similar the that customers. Bath be for curious

Marcus Lemonis

and and looking & minimal to to we the and and kept out largely spend experience, at algorithm we most quarter, the as at overspent attributable Beyond. And quarter are last go customers. largely look Yes. the third August the in of the we acquire we second to to ways you as Bed it customer and because, the file to looking as the When conversion -- QX testing customer comps QX meaningful be you company improve opinion, Bath I were at our ton us. site far taxonomy and listen, into the new very significantly the unacceptable spend looked more didn't get and mean, becoming hit out we money the performance of want particularly rebuilding have in quarter, once at in of first was then year, Overstock, a fourth

as we So as initially be relaunched the reengage been e-mail. easy And would we thought to it Overstock has it customer. that not

for of dormant sat a months. We number

so a mistake QX doing that Bed Overstock to trying customers. the But and creative balancing that which And all in overpromoting margin having having did how have that. to against contribution sale, incentivize starting to be have while is reactivate positive trying Bath about to We're to we're we're company, we're site very the file.

a third works. learning we're we how start we'll it something. not very start we performs, to the very spending fast of start our particularly fix already deeper a companies is a The environment and is difficult. and This and money advertising now, where of seeing we're pay get As the pour into to environment, in all happening. clear be the happier just other money we'll want attention quarter the hope light of that and we geopolitical macro assortment, this going is we'll But conversion bunch how little to with bit market. The into expensive spend about right that's

investing small we learning, months, ROAs try thing with more try is leverage days learnings those lifetime we learning. as us. discount times we we'll, top value transaction flat see able of ROAs, So chase and picking we're to them ROAs, very surgical we negative do learnings going is forecast that very that trying things, because to in algorithms of to to X give a customer where than and transaction is learning, buying and they're value? can believe a particularly nothing doses of and we're Or how to negative those we ROAs, be. Remember as X, us from be positive ourselves we one X, things we're the that efficient Is start that can and products of ask we Google we're we that to day, we're them, one search know extrapolate of when course, question. that. When thoughtful about and in we on we the negative those take see that the week, And see we

to doing many use So bit have, engage very that What's with basket, a on other one they customer how and model the information Are how us they a That how do a to we how seem scientific following? And dive immediately may is true but do their is on we going they size we chase. to offers with our deep we who that be, model do shouldn't engage customer buying their profitability. of we their where want item? start create service perform. on. of they a e-mails, it's us items how more prospect to than path people how us we we understand and to should that attribution who chase find And understand far behavior create

here room how site are takes with information called which amount over speed communicate customer also the on thing know layer and the site. customize testing one we matters. And going in specific about with communication technology get conversion, layer we is a matters a that months We and that concept X think that to there takes is milliseconds. That We but ways know specific the for very customer. with offering that we conversion. of experience learnings tremendous allows Now be a believe each opportunity granular the and to know that we to matters price start when each Shopify customize Versal, next on top we create new us of those to with

Rakesh Patel

customer also shop impact comes other the are run banners. Can them between to know customers board, I one, what cross-pollinate a you doing the but the being on to you relapsed independently, are entice when or new banner? to potential platforms the a

Marcus Lemonis

this may global we that with whether industry they're want of a companies but home company specifically we're whether we And in those business, products expect airlines. very that them brands I and Star a build establish global and participate our don't difficult that overall a global size specific once or and and to we you in that like customer us and program, will program. our there attributes with any a family our one type retail months start the how want across live the then loyalty mentioned what complement database service in to program about one database We as I to the way North particular to a or ago, that their brand. they program they're we a each company, and that X us, be transfer not I understand CPG allows early we be database our creating another that to about we'll Look, me bring a very one finance compete to able Marriott very there of customers, that I is Star services would to their trust creating several a do It's whether alliance. transfer is hope Star that lot mentioned ultimately club points allows was use as to proposition a in And a we of it that be their that is own. Bonvoy model. But that of point that that be customer. you'll by the of brand months, to think ultimately, loyalty never may high-margin what a to because that of believe there's of loyalty. to global in to or Alliance this The sell Alliance can other in it's reason have views reward who creating asset-light a revenue will program play is to company is to the finding exist this The believe pool to their that, me make confuse and space of the each from global company careful other company, this. Think loyalty services system, thing which what parts a community, would same the once that we cooperative solve for companies in in loyalty pool pool could on next it brand believe all have is company find specific goal their a playing at sees loyalty them database. That points that up recurring that

Operator

And the Nagle Curtis BofA. from next of from our line is question

Curtis Nagle

said? I from guess, you you just guess, trends. below basic, XQ kind back then the guide. seasonality. It just I what any if basic I sort doesn't the to of on but that's understand, guess, mechanics going to overspending factoring out on all ramping to want the XX% XX% I'll on comps One, of through how what's And you're of also just the sure could sort XX% sure. And brand, factoring from that could we're think quickly quarter-to-date XX% you to sound So I But Just just like call last XQ. comment make Right? of, kind and bounces of as I not acquisition down customer quite walk in year. I'm of incorporated terms I

Marcus Lemonis

Yes. Yes.

I until our parts So all how we operate. provide just felt we insight level but company, provide to obligated on as our business, the more lot reach profitability want don't we as guidance a transparencies, a a investors -- to particularly of obligated reminder, feel with a of

looked at actually and at it a and and looked Overstock I looking well. Just Beyond public back when historical company went Bed even Financials was Bath back, I as &

to learning always probably XX% it's transition specific organized. And a of XX we going the third and specific energy overall XX%. that a it softer, out Olympics? it's lot things spring sporting that furniture and event, weekend? cleaning like of and quarter approach coming what day It's Monday, of spending home when space big QX. we're steps a down businesses days about that When that word up by same, coming our have the a for called holiday? like When and of calibrate things out business in and getting patio lot down a each are use, the always which summer to the a when stepped quarter the It's Tuesday, what's the is quarter. of and what's big look but the the are terrible The sequentially primaries? both inside was it for Ironically a to to of means how enough, how time being also We're preparation very little is

companies patterns XX% an to the feel patterns to people wanted QX, can achieve, even walk of just the QX us XX% on other much down $XXX that lean I historical companies could on advice trend, to We of to at is to overanalyzing to candidly a trying ways that, are outperforming doing both that job at about just math, looking million. that. from based information. And better set that think help but we're we're historically that. we though have focused then done weather And the do on bucking XX% and confident XX% expectation more it's using In the and facts, behavior if expert and historical other

be or Now we we're improvement want margin EBITDA not improvement because to that, at time. we also reckless and to going with how the overspend do have same

less we margins the is from to the So to historical quarter a think digits our improve we to setting on improve do we basis. goal double no job for but low the are sequentially in can We and percentage than EBITDA expectations. much the of outperform doing, step-down the previous proper that quarter third better better quarter than a hope,

Curtis Nagle

And a it. follow-up, I then if just Got quick can.

of and some and election the think spend percentage dependent customer other marketing the total back acquisition also, how Marcus, given is things. revenues obviously, up the total revenue? on mentioned, about as a Just that of half to costs year, are How you right? sales in

that if would for just you So how that could about remainder be of the helpful. thinking kind you're year, out of the least frame at

Marcus Lemonis

Yes.

file ones and have ad very engage we happy same our as have doesn't say of in meeting revenue. we have particularly with was new we customers with know need one that satisfied finding to at not company. at of to a buyers have spend that that. our mentioned, We the level time, our breadth It Dave the need But as stretch standards, imagination the we even close when to customers, keep are seen. and we we by percentage of We that continue growing improve come to to he our now, our affinity an the any repeat to

to our be inducing inducing them payroll still a Bed Bath the do at balance find come to need -- not legacy reengaging and benefit. also Beyond our them to good those that back. And we We of customers job want & of have

is to towards. tremendous of the we to space go amount we to are launch find money in believe leaning this spend business As going Overstock have new a customers continue Overstock that closeout is who business, there right to grow liquidation and really that

we of in QX. Zulily And planning -- end are launching then lastly, at on the

happening, can't find cutting historically, with still I but start going ultimately I I'm believe to as marketing am a do of areas. We rationalization. spend to growth to can where get the find normally addicted that just temperance way other it to to not in our profit. afford and I doing to at continue when improvement going largely probably and So to to want Zulily, have old telling see we're same surprised throttling reengaging the all going be Bed what down you would things to time, Overstock, lodging that do you think but we're margin we part to costs improvement, Bath, you fixed to on those and we're that up we of EBITDA tighten that's balance to, getting as

Operator

[Operator comes from BTIG. Instructions] the Our from of next question line Fong Marvin

Marvin Fong

of lot have but A two, them maybe I could. if been answered,

light a gross for basically what first then up entirely XX% the Bed you'd rethought the like for margin I core goal should follow-up. kind ago, Bath, of business? still that Or year of Bath tear gross gross just is margin about the just I Bed that target have we for guiding that be? in that business? sort mean, we a to So a and business And you've of just of talking one, time kind as margin a for sort were

Adrianne Lee

last Adrianne. were be similar growth into more we the presentation of one moved talking 'XX of Okay. peer our to X gross think I call conference that Marvin, reminder, we change about did There's just OpEx. kind it's out points And -- to margin set. margin of so our year, if we

they've talked like been these look if performance, those So be to in and goal somewhere, historic that number you you gross brands today, our operating ZIP as that and/or we did about, is think know their at to I of continue each improve codes something that apples-to-apples XX%. we would better. margin. And And if

path mid-XX gross our on continue think chip of and that number. away we'll at get to closer to kind to profitability, closer I that margin and So

David Nielsen

Dave. it's Marvin,

ways like Partner that question, your and of I'd about second as that. we going Summit. a leadership are For we'll on add upcoming about to which in be this at just A to couple talking team, our

the and -- is our there making and our a partners. meaningful opportunity to well renegotiate aligns deepen entrenched are to this more for in through And and together that that our customers and for more business, volume amount them, giving us those curation the about experience, real supplier customer of think we partner a base our experience with scale us to experience, as a has with again, assortments better and and As to base with flowing is margins the get which supplier it volume to needed. lot narrows And lot in and base. customer more the us do more shopping as

Marcus Lemonis

other couple and points, up I a two think -- of Marvin, that point. we'll there's then other wrap

the e-commerce focus a believe have the unchartered successful I direct of that never in lot factory off-price fact liquidation this, have for seeing and around I and is liquidation. comments about And closeouts, closeouts a explore white of to space number what that You're nature. of seen things in company and been

haven't was And closeout it billion have done business. I if been Bed have ago, us. being footwear. an the years to principally it left business will would Bath, $X.X It charge you that it Overstock off-price they never And transferred of over prior jewelry. would business. left never had apparel to and with Dave in tell business is

that understands doing so are now closure going of to starting a that that in we're points we've leader back the also We things early we and a doses truly to we're and going more And Dave Beyond Bed when that for us. Two is Bed merchant relationships through have space. bankruptcy. those of become to distributor Bath the about or to brand was to historically people everybody burned closeout was come eliminated he's it dozens -- Overstock wanted were believe, that, company unsure they of sat & only our unsure is three go are through buys to sort other number cast Overstock we & vendor. And a not a it, down and little both been requiring us but liquidation of with required because Beyond had of are seen all what the went who about through and vendors distributor. sat it We Bath they a that down on by do, because

make we margin a well. as in channels. And when in relationships multiple we when that margin of company. could I a channels, say multiple private sold even And our those sell alone think We private number means will own every to we expect in global that program that marketplaces, there's can some with have marketplace lastly, big, program, out those label to just brand, enjoy be be are label mitigated a relationships didn't months, you and rolling will other we big places going that XX can, from X direct next over make the the brands money to but both cases, build we we'll in the

looking And in or consumers we way it, our for at and can a different cost bring out so ways. to love close that buy source it we're first improve on every product,

Marvin Fong

Got channel. it. Bath And to did well and patio the hearing my just follow-up, good hear that Bed outdoor in

of I that seemed last sort and maybe guys transition you were suited about like of there. there talking Overstock might that thought quarter, some about be think from products type to As how better maybe of guys it build you kind

in second grow of as continue Bath on you'll we kind Bed -- learned the quarter or should categories? So those products that we keeping of those you'll be kind product take to what and saw

Marcus Lemonis

Yes.

that Patio dive deep with satisfied a was takes how Dave I Patio, Before tell performed. on, not would I you

we missteps that for category. And week week, and of our we XXXX the & day more and by while what that Bath And so it so by we selling I actually are getting better more know day, build Beyond slipped comfortable better that to it we is wanted consumer were that see out buying where area. performed the playbook from in it, Bed while up performance and comfortable documenting is

Marvin Fong

Bed opportunities, focused on are of not of move to there that But be and four of as as we we're going The & we to really mentioned, theme outdoor. and everything component curation patio rooms with calibration Marvin, that Bath this one the it's forward. curation is our everybody. Beyond

the of mentioned, label Marcus and Over very team seen provide Beyond Bath there create really merchandising They don't years, and so there suppliers working a a there for don't outdoor assortment, top another understand have that believe of for margin with customer and can business. last have curating solid product with few opportunities packaging. They private several But we opportunity these providers good relationship many Stacey categories and pop-up deep we and down experience. and the & Bed in as patio branding opportunities, really the that are, opportunities this are we furniture.

times incredible On of things, liquidation when buy distressed traffic side piece of historically to those of dollars of Overstock were marketing bit drive Liquidation the millions of I the want we would on a the sheets of our were Overstock to spend. considered just website. They business. little this we physically for advantages many touch merchandise, what to just again

and partnerships remain individuals. access asset-light provide incredible partner for logistics assets that have don't the are to making we base model, reverse in where to products we and we're in we with our companies these With can that invest with liquidators, through alliances can our these these

thousands have who built very out you those us. merchandise of access to is distressed the we ship to have drop same getting That partners of for in able all we have where technology is locations. don't when move merchandise. merchandise time, be accretive the where margin At to have of model of some mean, the the a of area, distressed I local to

Marcus Lemonis

see company for in to their mistakes will inventory, medium has a small in from Yes. Main is become to small supplier and businesses, to a and platform inventory, we of through outdoor that's the in the needs to provides and with about space, small marketplace find to and started kimono deal space, could safe proud companies that in have it Look, barriers onboard through through really if medium folks cash monetize where brands of that able account, where that to XXX the space for a all different their see for on, reverse that And my and not business whether Fortune their place number give things today multiple and myself space, pet collectibles excess list that mistakes. lot in and in companies a ability. The that's want in there of dirty ability the to any the if plug big jewelry inventory place a who Zulily thousands logistics space, right as together, I'm to space I thousands, to we particularly not laundry of it businesses so with trapped we inventory the you business not and our necessarily Overstock's of patio borders whether of dominate tens to that the goes that's their inventory solution Street those there the Oasis, air on sizes owner, in at a on open that's Even and find to do large reason isn't a and business out be and to to have bank my damaged doesn't inventory will there or that that their excel. And look don't plug-ins a don't is marketplace have important and people that, any out brand Overstock are Shopify, that when space. everybody mistake. the

cars. time. play. can And Overstock when ultimately know joke done selling but we in the that know I'll Dave you that chickens all shows seems I width when let I believe the we're and which we're extreme, with

things We will be that. to visiting trade a expand on be of sort of shows, and doing we'll other lot

Operator

our today from comes Jonathan line Jefferies. Matuszewski the of from for question And final

Jonathan Matuszewski

on strategy. one your conversations vendor vendor first and The is just

Summit. Partner upcoming referenced remarks prepared the think, the I

some wanted conversations that with of for in them. to perspective your goals just terms efforts So suppliers event to get reengage and on

Is from mentioned you supplier sounds there economic choice perspective. strategy a any a risk the narrowing unit a think which consumer base, from angle? there I of encouraging

David Nielsen

little is And we'll to they and actually so them just have of scale always Vegas Sunday, work of assortments. these in we this with some into and that on Jonathan. summit. we've the question, additional these partners was of that are thinking on spending talking them in partners, partners and can are than giving what the confident these much with excited great Yes, but about I time have many these done working We're a preload upcoming really risk be transition, and partners to to larger offer. Many about. any There presenting

everybody you it's and or home doesn't in customer furniture human shop confirmation that is furniture that. It's the a It it and more makes furnishings side feel than do as much to down can and the a strategy with timing. search but to few excited furniture to that basically the them them sense, makes to the with doesn't them side. on bringing just patio years and from experience, business a experience, poor disappoint very about back COVID. that the confuse Our of low selection process that customer perspective as through the There's this. only you're important look providing packaging shopping going a poor see and pages, sales it jumping everybody ship as a businesses on and that processing We margin-accretive so we since business, risk

with So so -- many our making approach there our elements there partners, that are relationships more more our key strategic, ecosystem by of aligned. eliminate in this is taking cost

Jonathan Matuszewski

ahead. physical were helpful. In someone that job financially ventures terms approach into press That's partnerships of think kind for you product And And if the follow-up. and else's in aspirations just get obviously to in the and Bath just the presence fit there? of leveraging do your stores building and what's think to how about nice with And a opportunity play opportunity accretive for working opportunity forward? companies whatnot. should product did then a closeouts really a release, a without reference about kind and in walls going your way does this? And quick Bed How the talking into How potentially. a we network strategic of reverse of four logistics joint there kind guys I was your of there

Marcus Lemonis

putting want clarify in that are massive centers, of leases, are up on first asset-light be just and company distribution an of. taking part foremost, and loads continue to liabilities, a any any will on inventory, taking to, I future not we're we contingent

are part also matter believe do the well to as of this multiple at to in it in and opportunities intellectual we the However, believe growth. do database we multiple you plenty with have There monetizing core & there an that a our omnichannel Bed expect a experts for that and Bath that to and competency, are order. Remember perception in at in to monetizing our quite that parties subject other least Overstock quintessential strategy file short to consumer the marketplace. We mean the put it execute and their is be can mission property. that who doesn't short order larger and is of that discussions alliance back around Beyond it. That from are standpoint has

investors accretive asset-light start transactions, company case, in we finally roll negotiate the to be single every materially of partnership in assured environment. certain will and out as that to the should disclose will all So and any be and still an rest

Operator

to further remarks. today's any session for back question-and-answer like program to This conclude the Marcus I'd the program. of does hand Lemonis

Marcus Lemonis

today's joining quarter. call. seeing Great. We look Thank to you on Take us forward next for you care.

Operator

conclude you, participation Thank and ladies in gentlemen, today's does for your program. the This conference.

disconnect. now may You day. Good

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