FlexShopper Inc (FPAY) 2023 Q2 法說會逐字稿

Greetings and welcome to the FlexShopper's Second Quarter 2023 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

您好，歡迎參加 FlexShopper 2023 年第二季度財務業績電話會議。此時，所有參與者都處於只聽模式。正式演講之後將舉行問答環節。

(Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Carlos Sanchez, Investor Relations for FlexShopper. Thank you. You may begin.

（操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議交給主持人 FlexShopper 投資者關係部的 Carlos Sanchez。謝謝。你可以開始了。

Thank you, and good morning, everyone. Welcome to FlexShopper's Second Quarter 2023 Financial Results Conference Call. With me today are Russ Heiser, our Chief Executive Officer; and John Davis, our Chief Operating Officer. We issued our earnings release on Monday and corresponding Investor Relations presentation this morning, and we'll be referencing these during the call today. Both can be found in our Investor Relations section of our website. We will be available for question and answers today following today's prepared remarks.

謝謝大家，大家早上好。歡迎參加 FlexShopper 2023 年第二季度財務業績電話會議。今天與我在一起的有我們的首席執行官 Russ Heiser；和我們的首席運營官約翰·戴維斯。我們週一發布了收益報告，今天早上發布了相應的投資者關係演示文稿，我們將在今天的電話會議中引用這些內容。兩者都可以在我們網站的投資者關係部分找到。在今天準備好的發言之後，我們今天將接受問答。

Before we begin, I would like to remind everyone that this call will contain forward-looking statements regarding future events and our financial performance, including statements regarding our market opportunity, the impact of our growth initiatives and future financial performance. These should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC including our 10-Q quarter ending June 30, 2023. These statements reflect management's current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements.

在開始之前，我想提醒大家，本次電話會議將包含有關未來事件和我們財務業績的前瞻性陳述，包括有關我們的市場機會、我們的增長計劃的影響和未來財務業績的陳述。這些內容應與我們的收益發布和公司最近定期SEC 中包含的警示性聲明（包括截至2023 年6 月30 日的10 季度季度報告）結合起來考慮。這些聲明反映了管理層當前的信念、假設和預期，並受到許多因素的影響。可能導致實際結果與這些陳述存在重大差異的因素。

Except as required by law, we undertake no obligation to publicly update or revise any of these statements. During today's discussion of our financial performance, we will provide certain financial information that contains non-GAAP financial measures under SEC rules. These include measures such as EBITDA, net income, adjusted net income and non-GAAP financial measures.

除法律要求外，我們不承擔公開更新或修改任何這些聲明的義務。在今天討論我們的財務業績時，我們將提供某些財務信息，其中包含 SEC 規則下的非 GAAP 財務指標。其中包括 EBITDA、淨利潤、調整後淨利潤和非 GAAP 財務指標等指標。

These should be considered -- should not be considered replacements and should be read together with our GAAP results. Reconciliation for these GAAP measurements and certain additional information is also included in yesterday's earnings release, which is available in the Investors section of our website. This call is being recorded, and a webcast will be available for replay on our Investor section of our website. I will now turn the call over to our CEO, Russ Heiser.

這些應該被考慮——不應被視為替代品，而應與我們的公認會計準則結果一起閱讀。這些 GAAP 衡量標準和某些附加信息的調節也包含在昨天的收益發布中，您可以在我們網站的投資者部分找到該收益發布。本次電話會議正在錄音，並且可以在我們網站的投資者部分重播網絡廣播。我現在將把電話轉給我們的首席執行官 Russ Heiser。

Thanks, Carlos. Good morning. I appreciate everyone dialing in. Before we dive into results of the second quarter, I'd like to share with listeners the primary initiatives of the company this year our progress on achieving those goals.

謝謝，卡洛斯。早上好。我感謝大家撥通電話。在我們深入了解第二季度的業績之前，我想與聽眾分享公司今年的主要舉措以及實現這些目標的進展。

On the direct-to-consumer front, through our FlexShopper.com marketplace, we've been focused on 2 initiatives: improving asset level performance and growing originations. On the first of these, improving asset level performance, we have achieved the highest levels in the history of this company through a combination of both growing relationships with wholesalers to increase the retail margin on the products in our sites and staying disciplined on our underwriting cutoffs to provide a cushion as our consumer segment continues to face significant economic headwinds.

在直接面向消費者方面，通過我們的 FlexShopper.com 市場，我們一直專注於兩項舉措：提高資產水平績效和增加來源。首先，提高資產水平績效，我們通過與批發商不斷發展關係來提高我們網站上產品的零售利潤，並嚴格遵守承保限額，從而達到了公司歷史上的最高水平。在我們的消費群體繼續面臨重大經濟逆風之際提供緩衝。

Investors can expect to see these wholesale margins continue to grow as we onboard more distributor partners. This impact will be seen as further decreases in cost of lease revenues relative to lease revenues. In addition, as underwriting changes continue to mature as that expense as a percentage of gross lease revenues will decrease over the next several quarters. The flip side of this disciplined underwriting is that our approval rate is substantially lower than it's been over the last several years. The silver lining to this, though, that we have noticed that only a small percentage of visitors to our site end up even applying for our lease product.

隨著我們與更多分銷商合作夥伴的合作，投資者可以預期這些批發利潤將繼續增長。這種影響將被視為租賃收入成本相對於租賃收入的進一步下降。此外，隨著承保變革的不斷成熟，該費用佔總租賃收入的百分比將在未來幾個季度下降。這種嚴格承保的另一面是，我們的批准率大大低於過去幾年。不過，一線希望是，我們注意到，只有一小部分訪問我們網站的訪問者最終申請了我們的租賃產品。

As a result, we are in the process of adding additional checkout and financing options to our site to monetize a larger percentage of the incoming traffic and expect this launch to occur in time to take advantage of the holiday season. On this broader set of customers, FlexShopper will not only capture the margin on the product, but will receive origination fees from the other financing sources. Our expectation is that this will provide financial catalyst for much higher marketing spend on a year-round basis, resulting in much higher lease origination through this channel and the higher marketing spend will be offset by the product margins on items facilitated with other financing options.

因此，我們正在向我們的網站添加額外的結賬和融資選項，以將更大比例的傳入流量貨幣化，並預計這一發布能夠及時進行，以充分利用假期。對於這一更廣泛的客戶群，FlexShopper 不僅會獲得產品的利潤，還會從其他融資來源收取起始費用。我們的預期是，這將為全年更高的營銷支出提供財務催化劑，從而導致通過該渠道產生的租賃量大幅增加，而更高的營銷支出將被其他融資方案促進的項目的產品利潤所抵消。

Shifting to our brick-and-mortar based retailer business, we continue to see significant growth on the store count of our enterprise partnerships. Rollout timing never goes as quickly as we would like, but this summer has seen significant growth as 1 of our tenured retailer partners has grown substantially and 1 of our longer running pilot is moving into a full rollout.

轉向實體零售商業務，我們的企業合作夥伴商店數量繼續顯著增長。推出時間永遠不會像我們希望的那麼快，但今年夏天我們看到了顯著的增長，因為我們的1 個長期零售商合作夥伴已經大幅增長，並且我們的1 個運行時間較長的試點正在進入全面推出階段。

In addition, we are in late-stage discussions with another large enterprise partner has the potential to increase their originations on this portion of our business by 50%. Of course, as we have mentioned many times previously, the sales cycle for these large partners can be long, and the rollout process can be equally as long.

此外，我們正在與另一家大型企業合作夥伴進行後期討論，有可能將我們這部分業務的起源增加 50%。當然，正如我們之前多次提到的，這些大合作夥伴的銷售週期可能很長，推出過程也同樣很長。

Therefore, over the summer, we have added an internal team to complement the external teams to focus on growing our exposure to smaller retailers. In most cases, selling the smaller retailers, the easy parts, supporting them with training and answering their questions as the heavier lift. We will continue to add to our internal team as we optimize the proper support levels for both our enterprise in smaller retailer initiatives.

因此，在夏天，我們增加了一個內部團隊來補充外部團隊，以專注於擴大我們對小型零售商的接觸。在大多數情況下，向規模較小的零售商銷售簡單的零件，為他們提供培訓支持並回答他們的問題，這才是更重要的任務。我們將繼續擴充我們的內部團隊，優化我們的企業在小型零售商計劃中的適當支持水平。

The final piece to discuss is the storefront lending business acquired in late 2022. We have been successful there on a few fronts in terms of stabilizing asset level performance and are on our way to optimizing the product offerings for each state. Now we need to grow both originations within our current footprint and expand our footprint by rolling out more locations.

最後要討論的是 2022 年底收購的店面貸款業務。我們在穩定資產水平表現方面在幾個方面取得了成功，並且正在優化每個州的產品供應。現在，我們需要在現有業務範圍內發展這兩個業務，並通過推出更多地點來擴大我們的業務範圍。

To that end, we are making some modifications to the leadership structure to accomplish that more quickly. Given the operating leverage inherent in the store base business, once we're able to gain significant traction on originations, we should start to see earnings from this business grow measurably. I will now hand the call to John to walk through our quarterly results.

為此，我們正在對領導結構進行一些修改，以更快地實現這一目標。考慮到商店基礎業務固有的運營槓桿，一旦我們能夠在原創方面獲得巨大的吸引力，我們應該開始看到該業務的收入顯著增長。我現在將電話交給約翰，讓他詳細介紹一下我們的季度業績。

Thanks, Russ. To begin, I wanted to review our quarterly financial performance in comparison to last year. FlexShopper earned approximately $300,000 in EBITDA compared to $6.4 million in EBITDA in Q2 of 2022. Breaking this down, there are some onetime items last year that increased last year's performance and should be taken into account when reviewing underlying performance of the business.

謝謝，拉斯。首先，我想回顧一下我們與去年相比的季度財務業績。 FlexShopper 的EBITDA 收入約為30 萬美元，而2022 年第二季度的EBITDA 為640 萬美元。細分來看，去年有一些一次性項目提高了去年的業績，在審查業務的基本業績時應將其考慮在內。

Starting with our lease-to-own business. Gross lease billings and fees were $32.5 million in 2023 versus $39.6 million in 2022. With net lease billing and fees of $22.9 million versus $30.5 million last year for the quarter. Q2 2022 net lease number included approximately $6.6 million in revenue from a bulk sale of past due lease receivables. In 2023, we had approximately $1.3 million in revenue from past due receivables sales from a forward flow arrangement.

從我們的租賃到擁有業務開始。 2023 年的總租賃賬單和費用為 3,250 萬美元，而 2022 年為 3,960 萬美元。該季度的淨租賃賬單和費用為 2,290 萬美元，去年為 3,050 萬美元。 2022 年第二季度的淨租賃數量包括來自大量銷售逾期租賃應收款的約 660 萬美元收入。 2023 年，我們通過遠期流動安排的逾期應收賬款銷售獲得了約 130 萬美元的收入。

Excluding these sales, net lease revenue was approximately down 9% year-over-year versus the 25% unadjusted number. This accounted for most of the year-over-year EBITDA variance. Lease origination volume was slightly higher versus Q1 of this year, that was $6.5 million lower year-over-year in Q2 primarily due to tighter year-over-year credit standards.

不包括這些銷售，淨租賃收入同比下降約 9%，而未經調整的數字為 25%。這佔了 EBITDA 同比差異的大部分。租賃發起量較今年第一季度略有增加，第二季度同比減少 650 萬美元，主要是由於信貸標準較去年同期收緊。

As we have discussed in previous calls, we had subsequent tightening grounds last year due to the increasing inflationary environment, which negatively impacted our customers. This tightening continued into Q3 of last year, so we expect that the lapping of these changes will be fully realized next quarter. We are also currently accelerating the rollout of enterprise partnership lease programs in Q3 of this year, which we expect will provide significant origination growth from current levels.

正如我們在之前的電話會議中討論的那樣，由於通脹環境加劇，我們去年採取了緊縮政策，這對我們的客戶產生了負面影響。這種緊縮政策一直持續到去年第三季度，因此我們預計這些變化將在下季度完全實現。我們目前還在今年第三季度加快推出企業合作租賃計劃，我們預計這將在目前的水平上帶來顯著的增長。

Additionally, we have launched new sales initiatives on both enterprise and smaller partnership lease programs, which we expect will continue to drive continued growth in the number of storefronts that use our leasing products over the balance of the year. As we generate lease unit growth, we will have tailwind from higher average lease sales which were $668 in Q2 this year versus $579 in Q2 last year.

此外，我們還針對企業和小型合作夥伴租賃計劃推出了新的銷售舉措，我們預計這將繼續推動今年餘下時間使用我們租賃產品的店面數量持續增長。隨著租賃單位的增長，我們將受益於平均租賃銷售額的增加，今年第二季度為 668 美元，而去年第二季度為 579 美元。

Results of our credit tightening have resulted in a significant reduction in our bad debt expense. Provision for doubtful accounts expense dropped by $4.9 million year-over-year or a 31% decrease versus Q2 of last year. While the reduction in dollar expense is in part due to a lower revenue number, a 31% drop in expense greatly exceeded the 18% drop in gross lease revenue, with a 33% bad debt percentage this year versus 40% last year. Payment performance has improved as a result of our credit tightening as well as a moderation in inflation increases, which was resulting in a more profitable lease asset versus last year.

信貸緊縮的結果導致我們的壞賬費用大幅減少。呆賬準備金同比下降 490 萬美元，比去年第二季度下降 31%。雖然美元支出的減少部分是由於收入下降，但支出下降 31%，大大超過了總租賃收入 18% 的下降，今年壞賬百分比為 33%，而去年為 40%。由於我們的信貸緊縮以及通脹上升的放緩，付款績效有所改善，這導致租賃資產比去年更有利可圖。

Also contributing to lease -- improving lease profitability is the continuing seasoning of retail product margins with the introduction of products sourced from manufacturers and the distributors launched last year. Depreciation and impairment of lease merchandise expense in Q2 of 2023 was $14.5 million versus $18.2 million last year or a 20% decrease versus last year.

隨著去年推出的來自製造商和分銷商的產品的推出，零售產品利潤的持續增長也對租賃做出了貢獻——提高了租賃盈利能力。 2023 年第二季度租賃商品費用的折舊和減值為 1,450 萬美元，而去年為 1,820 萬美元，比去年減少了 20%。

Similar to bad debt expense, lower revenue results in lower dollar expense, but the percentage drop was larger than the drop in revenue. The realization of product margin over the term of our lease continues to season into our financials, which is resulting in lower expense levels on our lease revenue.

與壞賬費用類似，收入減少會導緻美元費用減少，但百分比下降幅度大於收入下降幅度。租賃期內產品利潤的實現繼續影響我們的財務狀況，這導致我們的租賃收入費用水平降低。

Excluding the impacts of the sales of past due receivables, net lease revenue consisting of gross billings less provision and depreciation cost was $7.2 million in Q2 of this year versus $5.7 million in Q2 of last year. Even with lower gross lease revenues year-over-year, we actually made more net revenue this year with our lease product with the improvement in loss rates and product costs. Asset quality has always been a top priority for us. And now that we have moved our underlying profitability ratios to more favorable levels our focus as a leadership team is to grow originations through both our marketplace and partnership channels.

排除逾期應收賬款銷售的影響，今年第二季度的淨租賃收入（包括總賬單減去撥備和折舊成本）為 720 萬美元，而去年第二季度為 570 萬美元。儘管總租賃收入同比下降，但隨著損失率和產品成本的改善，我們今年的租賃產品實際上獲得了更多的淨收入。資產質量始終是我們的首要任務。現在，我們已經將基本盈利率提高到了更有利的水平，作為領導團隊，我們的重點是通過我們的市場和合作夥伴渠道來增加創新。

On our lending front, we originated $14 million in Q2 through our Revolution finance platform. And $0.1 million for our loan participation program. This compares to $12.9 million in Q2 of last year and our loan participation program with no originations through evolution, which we acquired in Q4 of last year.

在貸款方面，我們在第二季度通過 Revolution 金融平台發放了 1,400 萬美元。 10 萬美元用於我們的貸款參與計劃。相比之下，去年第二季度的金額為 1290 萬美元，我們的貸款參與計劃沒有經過演變，我們在去年第四季度收購了該計劃。

As a reminder, we issued consumer loans within approximately 100 storefronts consisting of own physical locations and virtual locations within Liberty Tax stores using state lending licenses. We have pivoted our go-forward lending strategy towards our Revolution platform, we are planning on further origination growth there through various investments in people, IT and new generation of risk modeling and marketing strategies. As is the case of our lease business, we are happy with the underlying asset performance of our loan business and are now focused on growing originations and revenue.

提醒一下，我們使用州貸款許可證在大約 100 個店面（包括自己的實體店和 Liberty Tax 店內的虛擬店）內發放了消費貸款。我們已將前瞻性貸款戰略轉向革命平台，我們計劃通過對人員、IT 以及新一代風險建模和營銷策略的各種投資，進一步實現該平台的起源增長。與我們的租賃業務一樣，我們對貸款業務的基礎資產表現感到滿意，現在專注於增加貸款業務和收入。

Overall operating expenses were $1.3 million lower year-over-year for Q2, which was primarily driven by lower marketing costs. While we have conservative underwriting standards in place we have been prudent in our marketing spending within our marketplace lease segment. As we make progress on initiatives that will increase conversion rates of visitors to flexshopper.com, we expect to increase marketing spend that will result in higher revenue at the improved revenue levels discussed earlier.

第二季度總體運營費用同比減少 130 萬美元，這主要是由於營銷成本下降。雖然我們制定了保守的承保標準，但我們在市場租賃領域的營銷支出一直保持謹慎。隨著我們在提高 flexshopper.com 訪問者轉化率的舉措上取得進展，我們預計會增加營銷支出，從而在前面討論的收入水平提高的基礎上帶來更高的收入。

To summarize, we have made a lot of progress on getting asset level returns to levels that we are happy with. Our focus in the second half of 2023 is to originate more of these profitable customers and generate top-line growth. With that, let me turn the call back over to Russ.

總而言之，我們在使資產水平回報達到我們滿意的水平方面取得了很大進展。我們 2023 年下半年的重點是吸引更多盈利客戶並實現營收增長。接下來，讓我把電話轉回給 Russ。

Thanks, John. The team at FlexShopper continues to focus on improvements to our business in order to position ourselves for long-term earnings growth. With that, I'll take any questions you might have.

謝謝，約翰。 FlexShopper 的團隊繼續專注於改進我們的業務，以便為長期盈利增長做好準備。這樣，我將回答您可能提出的任何問題。

Thank you. (Operator Instructions) Our first question comes from the line of Scott Buck with H.C. Wainwright.

謝謝。 （操作員說明）我們的第一個問題來自 Scott Buck 和 H.C.溫賴特。

Russ, on the smaller retail initiative, I guess, what qualified to the small retailer? And how large is this market in terms of opportunity?

Russ，關於小型零售計劃，我想小型零售商有什麼資格？這個市場的機會有多大？

Scott. So we defined the smaller retailer as different from our enterprise customers. Our enterprise customers typically have 250 or more locations. The smaller retailer typically ends up being in 15 individual locations are less. And in terms of the size of that market, I think it's -- the sky is the limit, as I mentioned though, this really requires a lot more handholding. There's not as much internal resources that these retailers to handle training, et cetera.

斯科特.因此，我們將小型零售商定義為不同於我們的企業客戶。我們的企業客戶通常擁有 250 個或更多地點。規模較小的零售商通常會在 15 個單獨的地點開設更少的門店。就該市場的規模而言，我認為天空是極限，正如我所提到的，這確實需要更多的指導。這些零售商沒有那麼多的內部資源來處理培訓等問題。

So what we've implemented is a bit of a farming a methodology with some of these internal salespeople, where they are assigned to a fairly large number of locations, but the thought process is how can they increase the number of lease originations within that footprint that they are signed. And that's by visiting the stores, constant contact with managers, training new employees that come in, et cetera.

因此，我們所實施的是一種與其中一些內部銷售人員合作的方法，他們被分配到相當多的地點，但思考過程是他們如何在該足跡內增加租賃發起的數量他們已簽署。這是通過參觀商店、與經理不斷接觸、培訓新員工等等來實現的。

And like I said, that could be a very large initiative for us. Most of -- a good number of our peers have grown entirely through that process. So we look forward to now that we have the technology to be able to compete in that environment also.

正如我所說，這對我們來說可能是一項非常大的舉措。我們的大多數同行都是通過這個過程成長起來的。因此，我們期待現在我們擁有能夠在這種環境中競爭的技術。

That's helpful, Russ. And then second one, I'm curious, in the macro environment, what could happen to take some pressure off your core consumer? I mean what do they need to occur to get more, I guess, active.

這很有幫助，拉斯。第二個問題，我很好奇，在宏觀環境下，會發生什麼來減輕你的核心消費者的壓力？我的意思是，我猜他們需要做什麼才能變得更加活躍。

Well, as I mentioned, we've been focused on making sure there's a good cushion. One of the things that I think caught a good number of us in this industry was the severe impact of the end of stimulus. And I think in the back of our minds, we're always concerned what's the next thing that can happen. Obviously, significant inflation is still out there starting to decrease. But now that we have some other federal programs that are turning off, whether it's about repaying school loans, et cetera, that we would just want to make sure that we're not in a position that we're going to beyond our heels if there is a significant change in consumer behavior.

嗯，正如我提到的，我們一直致力於確保有一個好的緩衝墊。我認為這個行業中很多人都注意到的一件事是刺激計劃結束的嚴重影響。我認為在我們內心深處，我們總是擔心接下來會發生什麼。顯然，顯著的通貨膨脹仍然存在並開始下降。但現在我們有一些其他聯邦計劃正在關閉，無論是償還學校貸款等等，我們只是想確保我們不會陷入困境，如果消費者行為發生重大變化。

Our next question comes from the line of Michael Diana with Maxim Group.

我們的下一個問題來自邁克爾·戴安娜 (Michael Diana) 與馬克西姆集團 (Maxim Group) 的聯繫。

Russ. You obviously have multiple channels. And then for 1 of the channels you were describing some changes you're making that should really kick in, in the fourth quarter holiday season. And I think it was your FlexShopper channel. Could you just go over that again?

拉斯.顯然你有多個渠道。然後，對於其中一個頻道，您描述了您正在做出的一些改變，這些改變應該在第四季度假期真正生效。我認為這是您的 FlexShopper 頻道。你能再說一遍嗎？

Sure, of course. So 1 of the -- what we have noticed is that the number of visitors to our site that eventually either convert because they're new unique visitors or repeats because they're existing customers is just a very small percentage of the traffic that comes to our site. And the hypothesis is that consumers are looking for a credit option. But when they see the lease-to-own costs that they're looking around they're examining the site and then eventually, they decide that it, they feel like it's too expensive, given their -- what they think their cost of credit should be. So by adding additional financing options to check out. And it's not necessarily a choice for the consumer.

當然，當然。因此，我們注意到，我們網站的訪問者數量最終要么因為新的唯一訪問者而轉化，要么因為他們是現有客戶而重複，只佔網站流量的很小一部分。我們的網站。假設消費者正在尋找信貸選擇。但是，當他們看到從租賃到擁有的成本時，他們正在檢查該網站，然後最終他們決定，考慮到他們認為的信貸成本，他們覺得這太貴了應該。因此，通過添加額外的融資選項來檢查。這不一定是消費者的選擇。

Based upon the scoring that we do internally, we'll decide what is the financing option that makes the most sense for them. But what that will enable us to do is have a range of options some of which might be as low as 10% APR and then expanding into our lease-to-own product. By having a wider net, we're no longer -- FlexShopper will no longer just be a place where people come and get the lease-to-own financing.

根據我們內部進行的評分，我們將決定對他們最有意義的融資選項。但這將使我們能夠擁有一系列選擇，其中一些年利率可能低至 10%，然後擴展到我們的先租后買產品。通過擁有更廣泛的網絡，我們不再 - FlexShopper 將不再只是人們前來獲得先租后買融資的地方。

It's a site where consumers can come and receive a variety of different credit options from like I said, a very low APR, the ability to use their own credit card if they decide to do so and then also being able to transition in the case of what our core consumers do now into this higher priced lease-to-own products. But I think by giving a wider assortment of options, we really are providing flexible shopping options to these consumers and should hopefully increase conversion rates substantially.

在這個網站上，消費者可以訪問並獲得各種不同的信用選項，就像我說的那樣，年利率非常低，如果他們決定這樣做，也可以使用自己的信用卡，然後還可以在以下情況下進行轉換：我們的核心消費者現在對這種價格更高的先租后買產品做了什麼。但我認為，通過提供更廣泛的選擇，我們確實為這些消費者提供了靈活的購物選擇，並有望大幅提高轉化率。

Okay. And that's going to be rolled out and ready go for the fourth quarter holiday season. Is that the idea?

好的。這將在第四季度假期推出並準備就緒。是這個想法嗎？

That's correct.

這是正確的。

Okay. Okay. And then in your enterprise, I think you were saying your 2 biggest customers are -- those programs are growing just because the customer expense or the enterprise indices themselves are doing more business. Is that part of the growth there?

好的。好的。然後，在您的企業中，我認為您是說您的兩個最大客戶是 - 這些計劃正在增長，只是因為客戶費用或企業指數本身正在做更多的業務。這是那裡增長的一部分嗎？

Correct. Not only doing more business, but they're also a large tenure partners that are growing through acquisitions themselves. So we've had 1 partner that has increased their store count from about 900 locations to 1,500 locations through acquisitions, and we benefit from that also.

正確的。他們不僅做更多的業務，而且還是通過收購自身不斷成長的大型終身合作夥伴。因此，我們有 1 個合作夥伴通過收購將其商店數量從大約 900 個地點增加到 1,500 個地點，我們也從中受益。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Heiser for any final comments.

女士們先生們，我們的問答環節到此結束。我將把發言權交還給海瑟先生，徵求最後的意見。

Thanks, everyone, for dialing in this morning. We look forward to a terrific second half of the year.

謝謝大家今天早上撥通電話。我們期待下半年的輝煌。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。