Neighborhood Intelligence, Inc. (NXH) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q2 2023 Overstock.com Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位好，感謝您稍候。歡迎參加 2023 年第二季 Overstock.com 財報電話會議。（接線員指示）敬請注意，今日會議將進行錄音。

I would now like to hand the conference call over to your speaker for today, Lavesh Hemnani. Lavesh, please go ahead.

現在我想將電話會議交給今天的發言人 Lavesh Hemnani。Lavesh，請開始。

Thank you, operator. Good morning, and welcome to our second quarter 2023 Earnings Conference Call. Joining me on the call today are CEO, Jonathan Johnson; and CFO, Adrianne Lee. President, Dave Nielsen will be available for Q&A. A slide presentation accompanying today's webcast has been posted to our Investor Relations website and is available to download.

謝謝，接線員。各位早安，歡迎參加我們 2023 年第二季財報電話會議。今天與我一同出席的有執行長 Jonathan Johnson 以及財務長 Adrianne Lee。總裁 Dave Nielsen 將出席問答環節。配合今日網路直播的簡報已張貼於我們的投資人關係網站，並可下載。

Next slide, please. Please review the important forward-looking statements disclosure on Slide 2 of today's presentation. The following discussion and our responses to your questions reflect management's views as of today, July 27, 2023, and may include forward-looking statements. Actual results could differ materially from such statements.

請看下一張投影片。請查閱今日簡報第 2 張投影片中的重要前瞻性陳述揭露。以下討論以及我們對各位提問的回應，反映管理層截至今日（2023 年 7 月 27 日）的觀點，且可能包含前瞻性陳述。實際結果可能與該等陳述存在重大差異。

Additional information about factors that could potentially impact our financial results is included in our Form 10-K for the year ended December 31, 2022, and in our subsequent filings with the SEC.

有關可能影響我們財務結果之因素的更多資訊，載於我們截至 2022 年 12 月 31 日止年度的 Form 10-K，以及其後向 SEC 提交的文件中。

During this call, we will discuss certain non-GAAP financial measures. The slides accompanying this webcast and our filings with the SEC contain important additional disclosures regarding these non-GAAP measures including reconciliations of these measures to the most comparable GAAP measures. Following management's prepared remarks, we will open the call for questions.

在本次電話會議中，我們將討論若干非 GAAP 財務衡量指標。配合本次網路直播的投影片以及我們向 SEC 提交的文件，包含關於這些非 GAAP 指標的重要補充揭露（包括與最可比 GAAP 指標之調節表）。在管理層預先準備的發言結束後，我們將開放提問。

Next slide, please. During today's call, we will follow the agenda on Slide 3. With that, let me turn the call over to our CEO, Jonathan Johnson.

請看下一張投影片。在今天的電話會議中，我們將依照第 3 張投影片的議程進行。接下來，我把電話交給我們的執行長 Jonathan Johnson。

Thank you, Lavesh, and good morning, everyone. Let me begin by quoting something I said on our June 29 special investor call. "I have never been more excited about what's going on at our company". I want to re-emphasize that today because it is truer today than it was then. Overstock has had a great business model, but weighed down with a boat anchor of a name. Bed Bath & Beyond is an iconic consumer brand, but weighed down by a boat anchor of an outdated business model that got worse over time.

謝謝你，Lavesh，各位早安。我先引用我在 6 月 29 日特別投資人電話會議上說過的一句話：「我從未像現在這樣對公司正在發生的事情感到興奮。」我今天想再次強調，因為這句話在今天比當時更為貼切。Overstock 一直有很好的商業模式，但卻被一個如同船錨般拖累的名稱所束縛。Bed Bath & Beyond 是家喻戶曉的消費品牌，但也被一個如同船錨般、過時且隨時間愈發惡化的商業模式所拖累。

This acquisition drops both boat anchors. With the great Bed Bath & Beyond brand so naturally tied to home products, in our advantageous asset-light business model, this sleek boat should sail anchor-free and allow us to meaningfully grow and scale our business. It is exhilarating to see the hard work and high energy across the organization that has resulted from our exciting new strategic direction. Everyone is focused on ensuring we are successful in our repositioning of the company to attract and acquire customers and increase market share.

這次收購讓兩個「船錨」都被拋下。Bed Bath & Beyond 這個與居家產品天然連結的優秀品牌，結合我們具優勢的輕資產商業模式，這艘更俐落的船將能在無錨狀態下航行，並使我們得以有意義地成長與擴大規模。看到全組織因令人振奮的新策略方向而展現的努力與高昂士氣，令人振奮。每個人都專注於確保我們在公司重新定位上取得成功，以吸引並獲取客戶並提升市占率。

Suppliers are more eager to sell their products on our website. Since the acquisition, the headwind that came with the Overstock brand is being replaced by the tailwind of the Bed Bath & Beyond brand. Later, I will share some details on our successful launch under the Bed Bath & Beyond name in Canada, something which makes me optimistic as we get ready to launch in the U.S.

供應商更渴望在我們網站上銷售其產品。自收購以來，Overstock 品牌所帶來的逆風，正被 Bed Bath & Beyond 品牌的順風所取代。稍後我將分享我們在加拿大以 Bed Bath & Beyond 名稱成功上線的一些細節，這也讓我在準備於美國上線之際更感到樂觀。

This morning, we reported our Q2 financial results with revenue slightly ahead of the preliminary performance update we shared last month. Our adjusted EBITDA was positive for the 13th quarter in a row. We ended the quarter with a strong balance sheet. Our consistent and solid financial track record is allowing us to play offense and execute a transformative re-branding of our business. That will include a larger-than-normal promotional and marketing budget for the next few quarters as we attract and retain loyal Bed Bath & Beyond customers.

今天早上，我們公布了第二季財務結果，營收略高於我們上月分享的初步績效更新。我們的調整後 EBITDA 已連續第 13 個季度為正。我們在季末維持強健的資產負債表。我們一貫且穩健的財務紀錄，使我們得以採取進攻姿態並執行具轉型意義的品牌重塑。未來幾季我們將投入高於以往的促銷與行銷預算，以吸引並留住忠誠的 Bed Bath & Beyond 客戶。

Our team's commitment and focus and our asset-light business model is delivering results. We continue to execute against our strategic growth drivers. Our strong Independence Day performance was better than our internal expectations. For the month of July, thus far, our home-only revenue trend has improved slightly relative to June. This is encouraging when you consider a highly competitive environment and the key sales events held during July by larger players in the industry.

我們團隊的承諾與專注，以及我們的輕資產商業模式正在帶來成果。我們持續推進策略性成長驅動因素。獨立日檔期的表現優於我們內部預期。截至目前，7 月的純居家品類營收趨勢相較 6 月略有改善。考量到高度競爭的環境，以及產業中規模更大的業者在 7 月舉辦的關鍵促銷活動，這樣的表現令人鼓舞。

Next slide. Now for a brief update on recent corporate events. On May 31, Pelion Venture Partners hosted Medici Ventures Day. The event featured interviews with the leadership of tZERO, GrainChain, SettleMint and PeerNova. I found the presentations insightful and exciting. They provided a better understanding of how these companies differentiate themselves in the market -- in the markets in which they operate and their potential for growth. I was particularly excited by the GrainChain presentation. If you haven't listened to these presentations, a recording is available on our Investor Relations website.

下一張投影片。接著簡要更新近期公司事件。5 月 31 日，Pelion Venture Partners 主辦了 Medici Ventures Day。活動包含對 tZERO、GrainChain、SettleMint 與 PeerNova 領導團隊的訪談。我覺得這些簡報既具洞見也令人興奮，讓我們更了解這些公司如何在其所處市場中形成差異化，以及其成長潛力。我尤其對 GrainChain 的簡報感到興奮。若您尚未收聽，錄影可於我們的投資人關係網站取得。

Pelion Venture has been making progress in positioning the Medici Venture portfolio companies for success. As we do each year in early June, all our local and remote employees gathered at our corporate campus in Utah for a 2-day event, Overstock Connect. The theme of this year's event was shared ownership and power to achieve. Over the 2 days, our colleagues engaged in breakout sessions and presentations on a variety of business topics. We focused on the importance of having the mindset to unleash potential inspiration and action. Importantly, colleagues from across the organization connected with each other. There was palpable and positive energy during the event.

Pelion Venture 在協助 Medici Venture 投資組合公司邁向成功方面持續取得進展。如同每年 6 月初的慣例，我們所有在地與遠端員工齊聚猶他州的公司園區，參加為期兩天的活動 Overstock Connect。今年活動主題為「共享所有權與達成目標的力量」。在兩天活動中，同仁參與了多場分組討論與各式商業主題簡報。我們聚焦於培養能釋放潛能、激發靈感並促成行動的心態。重要的是，來自組織各處的同仁彼此建立連結。活動期間可感受到明顯且正向的能量。

Now that positive energy increased later in June when we announced and completed the acquisition of the Bed Bath & Beyond brand and other intellectual property. We acquired the assets for $21.5 million funded with cash on hand. Within hours of closing the transaction, we launched in Canada. Since then, we have been hard at work formulating strategies and preparing for the U.S. launch. More on this later.

而這股正向能量在 6 月下旬進一步提升，因為我們宣布並完成收購 Bed Bath & Beyond 品牌及其他智慧財產。我們以 2,150 萬美元收購該等資產，資金來源為手上現金。交易完成後數小時內，我們即在加拿大上線。此後，我們一直積極制定策略並為美國上線做準備。稍後會再說明。

Since announcing our plans to re-brand as Bed Bath & Beyond, we've been asked when we will change the Overstock corporate name and the OSTK stock symbol. While there is not much I can share on these topics today, we are certainly considering alternatives and will provide updates in due course. Our immediate top priority is a successful U.S. launch, which includes engaging and retaining the Bed Bath & Beyond customer base and ensuring our loyal Overstock customer base continues to find the Smart Value they expect.

自我們宣布將以 Bed Bath & Beyond 進行品牌重塑以來，外界一直詢問我們何時會更改 Overstock 的公司名稱以及 OSTK 股票代號。雖然今天我無法就這些議題分享太多，但我們確實正在評估各種替代方案，並會在適當時機提供更新。我們眼前的首要任務是確保美國上線成功，其中包括與 Bed Bath & Beyond 客群互動並加以留存，同時也確保忠誠的 Overstock 客戶仍能找到他們所期待的 Smart Value。

Now I'll ask Adrianne to review our second quarter 2023 financial results.

接下來我請 Adrianne 回顧我們 2023 年第二季的財務結果。

Thank you, Jonathan. Next slide, please. Revenue declined 20% year-over-year in the second quarter, while this is an improvement in the year-over-year trend relative to the first quarter, results continued to be impacted by weakness across the furniture and home furnishings industry, which is a result of lower consumer engagement in the category, a shift in spending preferences and a weak housing market.

謝謝你，Jonathan。請看下一張投影片。第二季營收年減 20%。雖然相較第一季，年對年趨勢已有改善，但結果仍受到家具與居家裝飾產業整體疲弱的影響；其原因包括該品類消費者參與度下降、支出偏好轉移，以及疲弱的房市。

Our gross margin performance was in line with our targeted range of 22% for the quarter. This was a solid result as we were able to offer our customers Smart Value during a highly promotional period. We delivered positive adjusted EBITDA of $8 million at a 2% margin during the second quarter and positive free cash flow for the first half of 2023.

本季毛利率表現符合我們 22% 的目標區間。在高度促銷的期間，我們仍能為客戶提供 Smart Value，因此這是穩健的成果。第二季我們實現 800 萬美元的正向調整後 EBITDA，利潤率為 2%；並在 2023 年上半年實現正向自由現金流。

Our reported EPS loss of $1.63 was primarily driven by a noncash, nonoperating expense associated with a change in value of our equity securities and the associated tax impact. The change in value of our equity securities reflects the reduction in valuation for our direct investment in tZERO and our proportionate share of the Medici Ventures Fund. The change in value of the fund was driven by an updated valuation of its investment in Bitt, reflecting dilution of ownership interest in Bitt from 86% to 63%. Excluding the impact of our equity securities, we reported adjusted diluted loss per share of $0.02, a decrease of $0.21 versus 2022, reflecting pretax losses compared to income in the prior year.

我們公布的每股盈餘（EPS）虧損 1.63 美元，主要係由與我們權益證券價值變動相關的非現金、非營運費用及其相關稅務影響所致。權益證券價值變動反映我們對 tZERO 的直接投資估值下調，以及我們在 Medici Ventures Fund 的按比例持分。該基金的價值變動源於其對 Bitt 投資的估值更新，反映在 Bitt 的持股權益因稀釋而由 86% 降至 63%。排除權益證券的影響後，我們的調整後稀釋每股虧損為 0.02 美元，較 2022 年減少 0.21 美元，反映稅前損失相較前一年度為稅前收益。

Our balance sheet remains strong. We ended the quarter with a cash balance of $343 million. Our Q2 ending cash balance includes the $21.5 million outflow of cash for acquisition of the Bed Bath & Beyond brand and other IP.

我們的資產負債表依然穩健。我們在本季末的現金餘額為3.43億美元。我們第二季期末現金餘額包含為收購 Bed Bath & Beyond 品牌及其他智慧財產權（IP）所支付的2,150萬美元現金流出。

Next slide. We posted revenue of $422 million in the second quarter, a decrease of 20% year-over-year. As I mentioned, consumer continues to prioritize service-related and need-based spending, putting pressure on the demand for discretionary home goods. Adjusting for non-home revenue, our home-only revenue declined 19% year-over-year. At the end of the second quarter, we fully cycled our exit of non-home products that was completed in June of 2022. Revenue performance was driven by fewer orders and lower average order value compared to last year. I will discuss our key customer metrics in further detail later.

下一張投影片。我們第二季營收為4.22億美元，年減20%。如我先前提到，消費者仍持續優先將支出用於服務相關與必需性消費，對非必需的家居用品需求造成壓力。若排除非家居營收，我們僅家居（home-only）營收年減19%。在第二季末，我們已完整走完於2022年6月完成的退出非家居產品所帶來的比較基期。營收表現主要受訂單數減少以及平均訂單金額較去年降低所影響。我稍後將更詳細說明我們的關鍵客戶指標。

Next slide, please. Gross profit was $94 million in the second quarter, a decrease of $27 million versus the prior year. Gross margin came in at 22.4%, a 58 basis point decrease versus the same period last year. The year-over-year decrease was driven by higher discounting, partially offset by merchandising actions and operational improvements.

請看下一張投影片。第二季毛利為9,400萬美元，較去年同期減少2,700萬美元。毛利率為22.4%，較去年同期下降58個基點。年對年下降主要由較高的折扣力度所致，部分被商品策略行動與營運改善所抵銷。

As a reminder, we do not expect to maintain our current gross margin profile over the next few quarters. We plan to lean in on promotions and provide targeted offers to acquire and re-engage Bed Bath & Beyond customers. Our gross margin performance is a proof point of our asset-light model and something we expect to keep in the 22%-ish range following an initial phase of customer acquisition investments.

提醒一下，我們不預期在接下來幾季維持目前的毛利率水準。我們計畫加大促銷力道並提供精準優惠，以獲取並重新喚回 Bed Bath & Beyond 客戶。我們的毛利率表現印證了我們的輕資產模式；在初期客戶獲取投資階段之後，我們預期可將毛利率維持在約22%左右的區間。

Next slide. G&A and Tech expenses decreased $2 million year-over-year, which includes savings related to our organizational review in 2022 and benefits from efficiencies in automation, partially offset by higher stock-based compensation. As a percent of revenue, G&A and Tech expense was 11.7% in the second quarter, a deleverage of 192 basis points compared to the second quarter of 2022 due to weak top line results.

下一張投影片。一般及行政（G&A）與科技（Tech）費用年減200萬美元，其中包含我們於2022年組織檢視所帶來的節省，以及自動化效率提升的效益；但部分被較高的股份基礎給付所抵銷。以營收百分比計，第二季G&A與Tech費用為11.7%，相較2022年第二季因營收疲弱而出現192個基點的槓桿惡化（deleverage）。

As indicated previously, our fixed G&A and Tech costs continued to track around $50 million per quarter. I would note, we may see increased spend in the near-term related to higher tech expenses to support expected incremental sales volume, onetime G&A expenses for our brand integration efforts and other short-term discrete investments.

如先前所述，我們固定的G&A與Tech成本仍大致維持在每季約5,000萬美元。我也要指出，短期內我們可能會看到支出增加，原因包括：為支援預期新增的銷售量而提高的科技費用、為品牌整合工作所產生的一次性G&A費用，以及其他短期的單次投資。

Next slide, please. In the second quarter, we delivered adjusted EBITDA of $8 million, a decrease of $13 million versus a year ago. We manage the factors within our control to help offset category headwinds and competitive pressures. We remain focused on successfully integrating the Bed Bath & Beyond brand and deploying strategies that will deliver increased active customers and drive shareholder value.

請看下一張投影片。第二季我們的調整後EBITDA為800萬美元，較去年同期減少1,300萬美元。我們管理可控因素，以協助抵銷品類逆風與競爭壓力。我們仍專注於成功整合 Bed Bath & Beyond 品牌，並推動可提升活躍客戶數、創造股東價值的策略。

Next slide, please. This slide shows active customers and order frequency. We measure active customers on a trailing 12-month basis. Our active customer base declined to $4.6 million or 29% year-over-year at the end of the second quarter. This decline in active customers is driven by 2 key factors: a shift in spending preferences as consumers continue to spend on experiences and services; and our purposeful shift to transform into a 100% online home retailer. Excluding non-home customers from last year, our active customers declined 23% year-over-year.

請看下一張投影片。本頁顯示活躍客戶與下單頻率。我們以過去12個月（trailing 12-month）為基礎衡量活躍客戶。第二季末，我們的活躍客戶基礎下降至460萬，年減29%。活躍客戶下滑主要由兩個關鍵因素驅動：第一，消費者持續將支出轉向體驗與服務，導致支出偏好改變；第二，我們有意轉型為100%線上家居零售商。若排除去年非家居客戶，我們的活躍客戶年減23%。

Orders per active customer were 1.56 in the second quarter, a decrease of about 5% versus last year and a decrease sequentially. Order frequency continues to hold up relatively better compared to our decline in active customers. We expect that over time, the relaunch of Bed Bath & Beyond brand, growing mobile app adoption and enhanced loyalty offerings will help improve this metric.

第二季每位活躍客戶的訂單數為1.56，較去年約下降5%，且較前一季下降。相較於活躍客戶的下滑，我們的下單頻率仍相對更具韌性。我們預期隨著 Bed Bath & Beyond 品牌重新推出、行動App採用率提升，以及更完善的會員忠誠方案，將有助於隨時間改善此指標。

Next slide. Average order value declined by 5% year-over-year to $234. AOV improved compared to Q1 as orders shifted away from furnishings and decor and into patio furniture as is typical in the spring and summer months. We have seen evidence of trade down across our primary categories and signs of deflation and product costs. Since our brand pillar is Smart Value, we continue to offer compelling value to our customers and pass on cost reductions that we receive. Our competitive pricing continues to align with our internal KPIs, even as we navigate a highly promotional environment.

下一張投影片。平均訂單金額（AOV）年減5%至234美元。相較第一季，AOV有所改善，因訂單結構從家具與裝飾轉向庭院家具，這在春夏月份屬於典型季節性。我們在主要品類中看到消費降級（trade down）的跡象，以及通縮與產品成本下降的訊號。由於我們的品牌支柱是「Smart Value」，我們持續為客戶提供具吸引力的價值，並將我們獲得的成本下降回饋給客戶。即使在高度促銷的環境中，我們的競爭性定價仍與內部KPI保持一致。

Orders delivered were 7.2 million for the trailing 12-month period. This is a decrease of 33% compared to the prior year. As I discussed earlier, the decline was primarily driven by weak consumer sentiment and a shift in their spending priorities, along with the cumulative impact of non-home product removals from our site.

過去12個月的已交付訂單數為720萬筆，較前一年下降33%。如我先前所述，下滑主要由消費者信心疲弱與支出優先順序轉變所致，並加上我們網站移除非家居產品的累積影響。

Next slide, please. I will wrap up my financial discussion, highlighting our strong balance sheet. Year-to-date, we have invested over $30 million in strategic growth opportunities to drive shareholder value and we still have capacity to deploy capital on robust customer acquisition strategies. We ended the quarter with over $300 million in net cash, including the cash outflow related to the purchase price and transaction fees associated with the acquisition of the Bed Bath & Beyond brand. Our strong balance sheet has enabled us to acquire an iconic consumer brand that is synonymous with home and we have developed strategies to maximize the return on this critical investment.

請看下一張投影片。我將總結我的財務說明，並強調我們穩健的資產負債表。今年迄今，我們已在策略性成長機會上投資超過3,000萬美元以提升股東價值，且仍有能力部署資本以推動強而有力的客戶獲取策略。我們在本季末的淨現金超過3億美元，其中包含與收購 Bed Bath & Beyond 品牌相關的購買價款及交易費用所造成的現金流出。我們穩健的資產負債表使我們得以收購一個與家居高度連結、具代表性的消費品牌，並已制定策略以最大化這項關鍵投資的報酬。

We have worked diligently quarter in and quarter out to generate positive adjusted EBITDA. Free cash flow remained positive year-to-date. We have maintained a laser focus on expense management and have realized operational efficiencies. All of this has resulted in a solid balance sheet, the ability to weather uncertain market conditions and allowed us to invest for market share growth. This is the significant differentiator of our advantageous business model.

我們每一季都持續努力以產生正的調整後EBITDA。自由現金流今年迄今仍維持正值。我們持續高度聚焦費用管理並實現營運效率提升。這些成果帶來了穩健的資產負債表，使我們能夠因應不確定的市場環境，並讓我們得以投資以擴大市占率。這正是我們具優勢的商業模式之重要差異化所在。

With that, back to you, Jonathan.

接下來交給你，Jonathan。

Thank you, Adrianne. Let's flip to the next slide. I'll next provide an update on our Bed Bath & Beyond integration time line, some early reads into our performance in Canada and the progress we've been making to the launch in the U.S.

謝謝你，Adrianne。讓我們切到下一張投影片。接著我將更新 Bed Bath & Beyond 的整合時程、我們在加拿大表現的一些初步觀察，以及我們為在美國推出所取得的進展。

Next slide. Bed Bath & Beyond name is synonymous with home products. From early August, we will re-brand as Bed Bath & Beyond in the U.S. We expect this to be a seamless transition for the Overstock customer base and the Bed Bath & Beyond customer base. Our new website will have a familiar brand [SPACs]. The customer experience will be consistent with the great customer experience we have been providing. We will offer tens of millions of customers the opportunity to browse and purchase quality furniture and home furnishings products at Smart Value.

下一張投影片。Bed Bath & Beyond 這個名稱與家居產品幾乎劃上等號。自8月初起，我們將在美國以 Bed Bath & Beyond 重新品牌化。我們預期這對 Overstock 客戶群與 Bed Bath & Beyond 客戶群而言將是無縫轉換。我們的新網站將呈現熟悉的品牌[SPACs]。客戶體驗將與我們一直以來提供的優質體驗一致。我們將為數千萬名客戶提供以 Smart Value 瀏覽並購買優質家具與家居用品的機會。

Phase 1 progresses on schedule. We successfully went live in Canada within hours of closing. We are making significant progress in onboarding new partners and growing our assortment of quality home products. Since early June, we have added 600,000 new products to our site, many of them well-known name brands. This will be a continued and sustained effort as we expand the breadth and depth of our home product offering. We have also developed strategies to target the most loyal customers in the Bed Bath & Beyond and Overstock customer databases with the re-branding of our Club O loyalty program as welcome rewards. I will share more on that shortly.

第一階段按計畫推進。我們在完成交割後數小時內即成功於加拿大上線。我們在導入新合作夥伴並擴增優質家居產品品項方面取得顯著進展。自6月初以來，我們已在網站新增60萬項新商品，其中許多為知名品牌。隨著我們擴大家居產品供給的廣度與深度，這將是一項持續且長期的努力。我們也制定策略，透過將 Club O 會員忠誠計畫重新品牌化為 welcome rewards，鎖定 Bed Bath & Beyond 與 Overstock 客戶資料庫中最忠誠的客戶。我稍後會分享更多。

As we are at the end of July, our focus is now on Phase 2. We continue to target an early August launch in the U.S., now that the Bed Bath & Beyond brick-and-mortar stores are expected to close this weekend. We executed the Canada launch well. We are confident we will replicate that success with our U.S. launch. The next 60 days will be critical and exciting for the company. We have the right strategies, the right action plan and the right people in key positions to execute a transformational re-branding of our business.

隨著我們來到7月底，我們的重點已轉向第二階段。由於 Bed Bath & Beyond 實體門市預計將於本週末關閉，我們仍以8月初在美國上線為目標。我們在加拿大的上線執行得很到位。我們有信心在美國上線時複製同樣的成功。接下來60天對公司而言將是關鍵且令人振奮的時期。我們具備正確的策略、正確的行動計畫，以及在關鍵職位上的合適人選，來執行這項具轉型意義的企業重新品牌化。

Next slide. Our technology and digital product teams did an outstanding job of launching in Canada on June 29. We finalized this within hours of the completion of our acquisition of the Bed Bath & Beyond intellectual property assets. The launch was well-planned and executed over many weeks. This is a team that knows how to execute. And thus far, we have not encountered any real setbacks in Canada.

下一張投影片。我們的技術與數位產品團隊在 6 月 29 日於加拿大上線方面表現出色。我們在完成收購 Bed Bath & Beyond 智慧財產資產後的數小時內就完成了這項工作。此次上線經過數週周密規劃並順利執行。這是一支懂得如何落地執行的團隊。迄今為止，我們在加拿大尚未遇到任何實質性的挫折。

Let me provide some additional color for our Canada business across certain key metrics comparing our performance there pre- and post-launch. We expect a direct traffic, meaning customers who type bedbathandbeyond.ca into their browser to increase given Bed Bath & Beyond strong brand association with home. Direct traffic visits to the new bedbathandbeyond.ca site has increased substantially.

我再補充一些關於加拿大業務的細節，並就若干關鍵指標比較上線前後的表現。我們預期直接流量（也就是客戶在瀏覽器中直接輸入 bedbathandbeyond.ca）將會增加，因為 Bed Bath & Beyond 與「居家」的品牌連結非常強。新 bedbathandbeyond.ca 網站的直接流量造訪已大幅提升。

We are taking advantage of the vast Canadian customer file we acquired, a file that is orders of magnitude larger than our previous Canadian customer file. Our e-mail marketing campaigns, which we were careful to roll out slowly to avoid being caught in spam filters have seen an increase in click-through rates driving further traffic to our Canada site. This channel has been a key driver of our growing Canadian business.

我們正在善用所取得的龐大加拿大客戶名單，其規模比我們先前的加拿大客戶名單大了好幾個數量級。我們的電子郵件行銷活動在推出時刻意放慢節奏，以避免被垃圾郵件過濾器攔截；目前點擊率已提升，進一步帶動加拿大站的流量。這個通路一直是我們加拿大業務成長的關鍵驅動因素。

The increase in visit has accelerated our rate of new customer acquisition. As we shared with you a few weeks ago, the growth in the number of our active customers is how we will measure the success of this transaction. Our product assortment is resonating with the Canadian customer. Bedding, bath, and kitchen categories have been our strongest growth categories. This is impressive when you consider as a company, we still have some work to do to add products in these categories.

造訪量的增加加速了我們的新客獲取速度。如同幾週前與各位分享的，我們將以活躍客戶數的成長來衡量這筆交易的成功。我們的商品組合正與加拿大客戶產生共鳴。寢具、衛浴與廚房品類是我們成長最強勁的品類。考量到以公司整體而言，我們在這些品類仍有一些工作要做、需要補齊更多商品，這樣的表現令人印象深刻。

By continuing to have more SKUs, we can grow wallet share within the existing customer base, attract new customers and capture incremental market share. As expected, our average order values have decreased slightly due to a combination of product mix shift and promotional offers. Our value proposition, quality and style for less is clearly resonating with customers.

透過持續增加更多 SKU，我們可以在既有客群中提升錢包份額、吸引新客並取得額外的市場份額。如預期，我們的平均訂單金額因商品組合轉移與促銷優惠的共同影響而略有下降。我們的價值主張——以更低的價格提供品質與風格——顯然正與客戶產生共鳴。

In short, the Canadian business is off to a strong start post-launch. We are optimistic about the future of our company under the new brand, acknowledging that Canada is still a small part of our business. We still have work ahead of us to win the customer, something that is never easy in a highly competitive marketplace. And I note that the awareness gap between the Bed Bath & Beyond brand and the Overstock brand is larger in Canada than in the U.S. So the results of our launch in the U.S. may not be as pronounced or as quickly materialized, but I am eager to see.

總之，加拿大業務在上線後有一個強勁的開局。我們對公司在新品牌之下的未來感到樂觀，同時也承認加拿大目前仍只占我們業務的一小部分。我們仍有許多工作要做來贏得客戶，而在高度競爭的市場中這從來都不容易。我也要指出，Bed Bath & Beyond 品牌與 Overstock 品牌之間的知名度落差在加拿大比在美國更大。因此，我們在美國的上線成果可能不會那麼顯著或那麼快就顯現，但我很期待看到結果。

Next slide. We remain on track to launch in the U.S. in early August. We are meeting all our pre-launch targets. Our teams have made a lot of progress to ensure success. I'll provide some details by business segment.

下一張投影片。我們仍按計畫在 8 月初於美國上線。我們正達成所有上線前目標。我們的團隊已取得大量進展以確保成功。我將按業務部門提供一些細節。

First, Merchandising and Supply Chain. The merchandising team is clearly seeing the tailwind from attaching our business model to the well-known and much loved Bed Bath & Beyond brand name, that ranks much higher than the Overstock brand name in its association with home. Within Bed Bath & Beyond's historical vendor base, we have an 80% overlap across the brands, which represent most of its revenue in addressable categories, meaning product categories we offer. However, in the past, some partners -- some of our partners have not offered us their entire catalog of these branded home products. That is now changing in a meaningful way.

首先是商品與供應鏈。商品團隊清楚感受到，將我們的商業模式與廣為人知且深受喜愛的 Bed Bath & Beyond 品牌名稱結合所帶來的順風效應；該品牌在「居家」聯想度上遠高於 Overstock 品牌。在 Bed Bath & Beyond 歷史供應商基礎中，我們在品牌層面有 80% 的重疊，這些品牌涵蓋其在可觸及品類（也就是我們有提供的產品品類）中的大部分營收。然而過去，一些合作夥伴——我們的一些合作夥伴——並未向我們提供其這些品牌居家產品的完整型錄。這種情況如今正以顯著的方式改變。

Since we already have an existing relationship with so many of these brands, we have been able to quickly add new SKUs from these partners as they open their catalogs of products to us. The total number of SKUs we've added since early July when the media first reported the news of our acquisition is now 600,000. Importantly, all these SKUs will be fulfilled on a drop-ship basis aligning with our asset-light model.

由於我們與其中許多品牌早已有既有合作關係，當他們向我們開放其產品型錄時，我們得以快速新增來自這些合作夥伴的新 SKU。自 7 月初媒體首次報導我們收購消息以來，我們新增的 SKU 總數目前已達 600,000。重要的是，這些 SKU 都將以代發貨（drop-ship）方式履約，符合我們的輕資產模式。

When we measure our delivery metrics, we look at click-to-delivery or the time between a customer placing an order and receiving delivery. Our small parcel click-to-delivery time is more than a full day faster than Bed Bath & Beyond historically was. We are faster. Our supply chain team is keenly focused on ensuring we continue to deliver products to our customers quickly and on time. Prospective partners are now more willing to work with us.

在衡量配送指標時，我們會看「點擊到送達」（click-to-delivery），也就是客戶下單到收到貨之間的時間。我們的小包裹 click-to-delivery 時間比 Bed Bath & Beyond 過去的表現快了超過整整一天。我們更快。我們的供應鏈團隊高度專注於確保我們能持續快速且準時地把商品送到客戶手中。潛在合作夥伴現在也更願意與我們合作。

Our partner funnel conversion success rate has increased by 60%. This metric tracks the merchandising team's success when we reach out to prospective partners. Simply put, knowing we will be operating as Bed Bath & Beyond has made us more attractive to supplier partners. The merchandising team is onboarding new partners faster. With the acquisition of the Bed Bath & Beyond brand contracting time has decreased by 50%. New partners are more willing to onboard SKUs and give us access to a broader and deeper product offering.

我們的合作夥伴漏斗轉換成功率提升了 60%。這項指標追蹤的是當我們接觸潛在合作夥伴時，商品團隊的成功程度。簡而言之，知道我們將以 Bed Bath & Beyond 的身分營運，使我們對供應商合作夥伴更具吸引力。商品團隊正以更快速度導入新合作夥伴。隨著收購 Bed Bath & Beyond 品牌，簽約時間縮短了 50%。新合作夥伴更願意導入 SKU，並讓我們取得更廣、更深的商品供給。

Moving to an update on our marketing plans. Like we did in Canada, we intend to launch in the U.S. using both the Bed Bath & Beyond and Overstock logos for an initial co-branded period. Over time, we will sunset the Overstock logo on brand. Customers and suppliers like the Bed Bath & Beyond brand, so do we. That is who we are becoming. We have robust strategies to engage with and acquire the Bed Bath & Beyond customer base. These strategies will drive our marketing and promotional budget higher than our recent run rate and higher than our financial recipe card targets. However, we expect to benefit over time from this marketing investment as we increase active customers and gain market share.

接著更新我們的行銷計畫。如同在加拿大所做的，我們打算在美國上線初期採用 Bed Bath & Beyond 與 Overstock 兩個標誌進行一段共同品牌（co-branded）期間。隨著時間推進，我們將逐步淡出（sunset）Overstock 標誌。客戶與供應商都喜歡 Bed Bath & Beyond 品牌，我們也一樣。那就是我們正在成為的樣子。我們有強而有力的策略來互動並獲取 Bed Bath & Beyond 的客戶基礎。這些策略將使我們的行銷與促銷預算高於近期的執行水準，也高於我們財務「食譜卡」（financial recipe card）的目標。然而，隨著活躍客戶增加並取得市場份額，我們預期將隨時間從這項行銷投資中受益。

We intend to target the loyal, welcome rewards customer base, a cohort that is in the high single-digit million range. We think this represents a real opportunity to grow our loyalty program in a meaningful way.

我們打算鎖定忠誠的 Welcome Rewards 客戶群，這個族群規模約在數百萬、接近一位數百萬的高端區間。我們認為這代表一個能夠實質擴大我們忠誠計畫的真正機會。

We will leverage our hugely popular mobile app to acquire and retain customers. Our mobile app has been a big success for us. We will re-brand it as the Bed Bath & Beyond app. We have strategic plans to incentivize those who love the Bed Bath & Beyond Brand to download our mobile app with specific promotional call to action. The coupon loving Bed Bath & Beyond customers will love our mobile app promotion.

我們將運用我們極受歡迎的行動 App 來獲取並留住客戶。我們的行動 App 對我們而言一直非常成功。我們將把它重新品牌化為 Bed Bath & Beyond App。我們有策略性計畫，透過特定的促銷行動呼籲（call to action）來激勵喜愛 Bed Bath & Beyond 品牌的人下載我們的行動 App。喜歡優惠券的 Bed Bath & Beyond 客戶會喜歡我們的行動 App 促銷。

We acquired a Bed Bath & Beyond customer file that substantially exceed the 20 million active customer base. We have separate plans to target these customers over time and bring them back to the new Bed Bath & Beyond. For an update on customer experience and technology team efforts we are doing the following.

我們取得的 Bed Bath & Beyond 客戶名單規模大幅超過 2,000 萬活躍客戶基礎。我們有獨立的計畫，將隨時間推進鎖定這些客戶並把他們帶回新的 Bed Bath & Beyond。關於客戶體驗與技術團隊工作的更新，我們正在做以下事項。

As I shared earlier, our technology and digital product teams have a road map to ensure that the U.S. launch progresses as smoothly as the Canada launched it. The customer experience in Canada has been impressive so far. In fact, our post-incident NPS in Canada has improved since our Canada launch. With the pending U.S. launch, we are confident we can handle the expected incremental traffic in the U.S. As a reminder, as part of the acquisition of the Bed Bath & Beyond Intellectual property we did not acquire any website, back-end systems or architecture. The relaunched experience will continue to run on our current web architecture, which handled pandemic era order volumes of more than 2.5x current order volumes without a hitch. Since then, our technology team has upgraded our infrastructure. We have a solid technology stack.

如我先前分享的，我們的技術與數位產品團隊有一份路線圖，以確保美國上線能像加拿大上線一樣順利。加拿大的客戶體驗迄今令人印象深刻。事實上，我們在加拿大的事件後（post-incident）NPS 自加拿大上線以來已有所改善。隨著美國上線在即，我們有信心能承接美國預期增加的額外流量。提醒一下，作為收購 Bed Bath & Beyond 智慧財產的一部分，我們並未收購任何網站、後端系統或架構。重新上線的體驗將持續運行在我們目前的網站架構上；該架構在疫情期間曾無縫承載超過目前訂單量 2.5 倍的訂單量。此後，我們的技術團隊已升級基礎設施。我們擁有穩健的技術堆疊。

As I mentioned, the merchandising team has done a great job of adding new product assortment. We know we need to make it easy for customers to find just what they are looking for with our increased product assortment. As a result, our product and technology teams have been working to improve search and navigation on both our website and our mobile app. I hope this update gives you an insight into the amount of focus and work our teams are putting in across the organization. As I mentioned earlier on the call, everyone at the company is focused on repositioning the company with this iconic consumer brand within the home category to capture market share.

如我所提到的，商品團隊在新增商品組合方面做得非常出色。我們知道，隨著商品組合增加，我們需要讓客戶能輕鬆找到他們正在尋找的商品。因此，我們的產品與技術團隊一直在改善網站與行動 App 的搜尋與導覽。我希望這次更新能讓各位了解，我們的團隊在整個組織中投入了多少專注與努力。如同我先前在電話會議中提到的，公司每個人都專注於藉由這個在居家品類中具代表性的消費者品牌來重新定位公司，以取得市場份額。

Next slide. We expected the acquisition of the Bed Bath & Beyond brand intellectual property to positively influence our growth flywheel and help accelerate some of our work. Even before the U.S. launch, this is already happening. As you can see from the shaded items on this slide, nearly all elements of our growth flywheel are directly benefiting from our association with an iconic consumer brand. This acquisition gives us a greater opportunity to grow our presence and gain market share within the large and fragmented total addressable market that exceeds over $440 billion. Our opportunity is real.

下一張投影片。我們預期收購 Bed Bath & Beyond 品牌的智慧財產權將對我們的成長飛輪產生正面影響，並有助於加速我們部分工作。即使在美國上線之前，這種效益就已經開始顯現。如同你在本頁投影片陰影標示的項目所見，我們成長飛輪的幾乎所有要素，都正直接受惠於我們與這個具代表性的消費品牌之連結。這項收購讓我們有更大的機會擴大我們的市場能見度，並在超過 4,400 億美元、規模龐大且高度分散的整體可服務市場中提升市占率。我們的機會是真實存在的。

Unlike the Overstock brand, the Bed Bath & Beyond brand is and always has been all about home. That was the primary strategic rationale for purchasing it. As I've mentioned, we've added 600,000 SKUs since early June. I expect the merchandising team to continue adding SKUs. As I noted on an earlier slide, our Canada business is already benefiting from being associated with a brand that has a much better association with home.

不同於 Overstock 品牌，Bed Bath & Beyond 品牌一直以來都圍繞「家居」為核心。這正是我們購買它的主要策略理由。如我先前提到的，自 6 月初以來我們已新增 60 萬個 SKU。我預期商品團隊會持續新增 SKU。正如我在先前一張投影片所提到的，我們加拿大業務已經因為與一個在「家居」領域連結更強的品牌建立關聯而受益。

Regarding category management, the acquisition of Bed Bath & Beyond's vast customer data, coupled with the subsequent customer interaction will allow us to learn more about which categories and subcategories resonate with our new and expanded customer base. This will inform our long-term strategy of assortment expansion and pricing optimization to position us favorably to market share growth.

在品類管理方面，收購 Bed Bath & Beyond 龐大的客戶資料，再加上後續的客戶互動，將使我們能更深入了解哪些品類與子品類能引起我們新增且擴大的客群共鳴。這將為我們長期的商品組合擴張與定價最佳化策略提供依據，讓我們在推動市占率成長方面取得更有利的位置。

I talked about our plans to leverage our mobile app to acquire and retain customers. If you logged the Bed Bath & Beyond mailed coupons, you will love engaging with our new mobile app, which will be available to download with the U.S. launch. We believe that the Bed Bath & Beyond brand will drive stronger customer retention over the long term. It is a well-known and beloved brand.

我曾談到我們計畫運用行動 App 來獲取並留住客戶。如果你過去習慣使用 Bed Bath & Beyond 郵寄的折價券，你一定會喜歡使用我們全新的行動 App；該 App 將隨美國上線提供下載。我們相信 Bed Bath & Beyond 品牌將在長期帶來更強的客戶留存。這是一個廣為人知且深受喜愛的品牌。

We believe marketing our assortment under the iconic Bed Bath & Beyond brand will help us deliver a better return on our marketing expenditures. We've already seen that in Canada as our return on ad spend has significantly increased since we launched there, even as we spend more on search engine marketing.

我們相信，以具代表性的 Bed Bath & Beyond 品牌來行銷我們的商品組合，將有助於我們在行銷支出上取得更好的投資報酬。我們已在加拿大看到這點：自我們在當地上線以來，即使我們在搜尋引擎行銷上的投入增加，我們的廣告投放報酬率（ROAS）仍顯著提升。

We plan to launch a new -- we plan to launch an improved search -- I'm sorry, we plan to launch an improved internal search experience before launch in the U.S. We expect this will enhance the overall customer experience and increase conversion. As I've noted, product findability is paramount as we continue to add more SKUs to our slide -- our site.

我們計畫在美國上線前推出新的——我們計畫推出改良的搜尋——抱歉，我們計畫在美國上線前推出改良的站內搜尋體驗。我們預期這將提升整體客戶體驗並提高轉換率。如我所提到的，隨著我們持續新增更多 SKU，產品可被找到的程度至關重要，因為我們的投影片——我們的網站——上的 SKU 會越來越多。

Next slide. Before we take your questions, I'll provide some color on quarter-to-date trends and our expectations for Q3 and beyond. As I indicated previously, we've seen a slight improvement in our year-over-year revenue trend in July compared to June. Quarter-to-date net revenue has slightly improved with a negative high teens range. The U.S. launch of Bed Bath & Beyond is on track for early August. We expect our revenue trends to improve post-launch. These expectations do not making any improvement in the poor macroeconomic environment or weak consumer spending in our industry, both of which are uncertain and difficult to predict.

下一張投影片。在我們回答各位問題之前，我先補充一些本季迄今的趨勢，以及我們對第三季及之後的預期。如我先前所指出的，7 月相較於 6 月，我們的年對年營收趨勢略有改善。本季迄今的淨營收略有改善，降幅落在負的十幾個百分點區間。Bed Bath & Beyond 在美國的上線進度如期，預計在 8 月初。我們預期上線後營收趨勢將改善。這些預期並未假設疲弱的總體經濟環境或本產業疲弱的消費支出會有所改善；兩者皆具不確定性且難以預測。

We expect to benefit from operating our advantageous asset-light model -- business model with the much loved Bed Bath & Beyond name in the furniture and home furnishing space. The early performance in Canada is encouraging. I'm eager to see what happens in the U.S.

我們預期將受惠於以深受喜愛的 Bed Bath & Beyond 名稱，在家具與家居用品領域運作我們具優勢的輕資產——商業模式。加拿大的早期表現令人鼓舞。我也很期待看看在美國會發生什麼。

Moving to adjusted EBITDA. Based on our assumptions for customer acquisition, we expect to see adjusted EBITDA margins moving into negative territory for a few quarters. We will spend more on discounting and marketing to win customers during this unique window, including those in the large Bed Bath & Beyond customer list we acquired. We have a range of planning scenarios for the top line. And as a result, at this time, we will not provide more specific guidance on profit or margin targets.

接著談調整後 EBITDA。基於我們對客戶獲取的假設，我們預期調整後 EBITDA 利潤率在接下來幾季將轉為負值。為了在這個獨特的窗口期贏得客戶，我們將在折扣與行銷上投入更多支出，其中也包括我們所收購的龐大 Bed Bath & Beyond 客戶名單中的客戶。我們針對營收端有一系列規劃情境。因此，在此時點，我們不會提供更具體的獲利或利潤率目標指引。

As a management team, we intend to take advantage of this unique opportunity to grow our customer base. we will be purposeful and agile and our plans for incurring higher discounting and marketing expenditures to attract customers for a few quarters. I have mentioned previously, our measure of success for this transaction is growth in the number of active customers. We are focused on significantly increasing the number of our active customers.

作為管理團隊，我們打算把握這個擴大客戶基礎的獨特機會。對於在未來幾季為吸引客戶而提高折扣與行銷支出的計畫，我們將有目的地、並保持敏捷。我先前提過，我們衡量這筆交易成功與否的指標，是活躍客戶數的成長。我們專注於大幅提升活躍客戶數。

Now operator, let's take some questions.

接線員，現在我們開始提問。

The first question comes from the line of Rick Patel of Raymond James.

第一個問題來自 Raymond James 的 Rick Patel。

This is Josh filling in for Rick here. I was just curious if you could provide us a bit of an update on the couponing. Like I know you mentioned it a bit, I know -- and I know it's important for the Bed Bath & Beyond brands that coupons apply to that. So I'm curious, are you aiming to target specifically, the Bed Bath & Beyond legacy customers? And also, how should we think about the margin implications of this?

我是 Josh，今天代替 Rick。我想請教一下，能否就折價券策略提供一些最新進展？我知道你稍早有提到一些，而且我也知道——我知道折價券對 Bed Bath & Beyond 品牌很重要，折價券也會適用於該品牌。所以我想了解，你們是否打算特別鎖定 Bed Bath & Beyond 的既有客戶？另外，我們應該如何看待這對利潤率的影響？

So let me talk briefly, maybe turn to Dave to add and then Adrianne can talk about margin implications a bit. We know that the Bed Bath & Beyond customer loves coupons. Bed Bath & Beyond historically has been a high-low retailer. So we have always offered great promotions and coupons. I think the Bed Bath & Beyond customer will find that our pricing is sharper and better than they've historically seen at Bed Bath & Beyond. So while we intend to continue the promotion strategies we have used in the past, they won't be as big as Bed Bath & Beyond's work.

我先簡單談一下，之後也許請 Dave 補充，然後 Adrianne 可以再談談利潤率的影響。我們知道 Bed Bath & Beyond 的客戶很喜歡折價券。Bed Bath & Beyond 歷來是一家高低價（high-low）的零售商。因此我們一直都有提供很好的促銷與折價券。我認為 Bed Bath & Beyond 的客戶會發現，我們的定價比他們過去在 Bed Bath & Beyond 看到的更有競爭力、也更好。因此，雖然我們打算延續過去使用的促銷策略，但力度不會像 Bed Bath & Beyond 以往那麼大。

Now that said, I think during the initial launch, Bed Bath & Beyond customers, Overstock customers people who've never shop with either can expect to see some significant coupons to attract people -- to attract them to the great Overstock site. So there will be an initial, I think, push with kind of bigger than usual coupons followed by great prices with Overstock's traditional promotional strategies.

不過話說回來，我認為在初期上線期間，Bed Bath & Beyond 的客戶、Overstock 的客戶，以及從未在任一平台購物的人，都可以預期會看到一些相當可觀的折價券，用來吸引大家——吸引他們到優質的 Overstock 網站。因此一開始會有一波我認為是比平常更大的折價券推廣，之後則會回到以 Overstock 傳統促銷策略搭配優質價格。

Dave, I've said a lot, maybe more than I should have strategically said. Anything you want to add there?

Dave，我講了很多，可能在策略上講得比我應該講的還多。你有什麼想補充的嗎？

I think you answered that question perfectly. And I think it's going to be a really exciting couple of months as we launch. I'll leave it at that for now.

我覺得你把問題回答得非常到位。我也認為接下來幾個月在我們上線的過程中會非常令人興奮。我目前就先說到這裡。

Now on margins, and before I'll let Adrianne talk to that. We're not providing a lot of margin guidance because there's a lot to still be figured out. Now we have had a month in Canada, which is a great test place for us because it's a small part of our business. We're guiding to negative adjusted EBITDA for a few quarters because this is a very unique opportunity to acquire a lot -- a lot of customers, and that's important.

至於利潤率，在我讓 Adrianne 回答之前先說明一下。我們不提供太多利潤率指引，因為仍有很多事情需要釐清。我們在加拿大已經運作了一個月，這對我們來說是很好的測試場域，因為加拿大只占我們業務的一小部分。我們指引調整後 EBITDA 在未來幾季為負，因為這是一個非常獨特的機會，可以獲取大量——大量的客戶，而這點很重要。

Adrianne, I probably said what you were going to say, but what would you add about margins?

Adrianne，我可能已經把你要說的都說了，但你對利潤率還會補充什麼？

Jonathan, I wouldn't add, I'd just reiterate, as I said in my scripted remarks, we'll see pressure on gross margin. We don't expect to be in our kind of targeted 22%-ish range and as you mentioned, negative adjusted EBITDA margins. Just reiterating those 2 comments.

Jonathan，我不會再補充，我只會重申：如同我在事先準備的發言中所說，我們會看到毛利率承壓。我們不預期會落在我們目標的大約 22% 左右區間；而且如你所提到的，調整後 EBITDA 利潤率將為負。我只是重申這兩點。

Yes. So Josh, great question. We're going to be very strategic here. You know Overstock. Our mantra has been sustainable, profitable market share growth. We expect to get back to that. But in getting there, it will take -- it could and it will and it should take acquiring these customers as we re-brand. And so there'll be a [lull] for a few quarters, a departing -- a purposeful departing from our mantra to get back to that mantra.

是的。所以 Josh，問得很好。我們會在這裡非常有策略地行事。你了解 Overstock。我們的口號一直是可持續、可獲利的市占率成長。我們預期會回到那個方向。但在回到那裡之前，將需要——可能會、也將會、而且應該要透過在我們重新品牌化的過程中獲取這些客戶。因此接下來幾季會有一段「[lull]」期，也就是——有目的地暫時偏離我們的口號，以便之後再回到那個口號。

The next question comes from the line of Seth Sigman of Barclays.

下一個問題來自 Barclays 的 Seth Sigman。

I wanted to just follow up on the state of the business currently. So the improvement that you saw from June into July, the down high teens. Maybe just discuss some of the drivers behind that, between customer growth, frequency, AOV. Anything specific that you did to drive that? Or do you think maybe the market is just starting to see some signs of stabilization? Just any context there would be great.

我想追問一下目前業務的狀況。你們看到 6 月到 7 月有所改善，降幅在十幾個百分點的高端。能否談談背後的一些驅動因素，例如客戶成長、購買頻率、客單價（AOV）之間的影響？你們是否做了什麼特定措施來推動改善？或者你認為市場可能只是開始看到一些穩定的跡象？任何相關背景說明都會很有幫助。

So -- first thing I would say is, I'm really proud of our team for running our business and running it well while we're doing a ton of work to get launched in Canada, be prepared to launch in the U.S., there's this excitement in the building for what's new and next. But even with that, the team has not taken their eye off the ball of running the business every day.

所以——我首先想說的是，我為我們的團隊感到非常自豪：在我們投入大量工作、準備在加拿大上線、並為在美國上線做準備的同時，團隊仍然把業務運營得很好。公司裡對於新的、下一步的事情充滿興奮。但即便如此，團隊也沒有把每天把業務運行好的重點放掉。

I'll turn to Dave, after I say, I don't see a lot of macro change. The macro still feels very hard. Interest rates went up again yesterday. Consumers are still spending on experience, [what these] are spending a lot on going to concerts around the country. People aren't buying for the home like they did during the pandemic. That said, I think the team is focused on doing well.

在我轉給 Dave 之前，我想說，我沒有看到太多宏觀面的變化。宏觀環境仍然感覺非常艱難。利率昨天又上調了。消費者仍然把錢花在體驗上，[他們]在全國各地看演唱會等方面花了很多錢。人們不像疫情期間那樣為家居購買。話雖如此，我認為團隊仍專注於把事情做好。

Dave, you want to talk about particulars?

Dave，你想談談具體情況嗎？

Yes. Just a couple of items I would add, Independence Day, our 4th of July promotion was really well received by our customers. That was the primary driver. And we had a lot of success, in fact, record-breaking success with our mobile app. We continue to lean into our mobile app promotions. It drives a more loyal customer, a higher order frequency and a higher average order value. And we -- as a percentage of our sales, had one of the best -- have the best major promotion we've had so far. The mobile app is really working out nicely for us, JJ?

是的。我想補充幾點。獨立日，我們的 7 月 4 日促銷活動受到客戶非常好的反響。那是主要驅動因素。而且我們在行動 App 上取得了很大成功，事實上是破紀錄的成功。我們持續加大行動 App 促銷的力度。它帶來更忠誠的客戶、更高的下單頻率以及更高的平均訂單金額。我們——以銷售額占比來看——做出了迄今為止最好的大型促銷之一——也就是我們目前最好的大型促銷。行動 App 對我們的效果真的很好，JJ？

Yes. We're also seeing some trade down. We talked about AOV being a little lower this quarter. The second quarter is typically a quarter it does well because people are in patio and that's a higher price point, a larger basket. Even then, there's -- even as they buy patio furniture in the good, better, best products, they're trading down a little. So people are watching their wallet. I hope that answers the question, Seth.

是的。我們也看到一些消費降級。我們談到本季 AOV（平均訂單金額）略低。第二季通常表現不錯，因為大家會買庭院（patio）相關商品，而那通常是較高價位、購物籃更大的品類。即便如此——即使他們在購買庭院家具、在「好、更好、最好」的產品中選擇，他們也在稍微往下選一些。所以人們在看緊荷包。我希望這回答了你的問題，Seth。

No, that's super helpful. I appreciate that. Maybe just one follow-up about what you're seeing in Canada thus far, the positive trend in visits, do you have a sense as to whether that is the current Bed Bath customer coming back? Is that an Overstock customer that's maybe seeing an improved experience or a wider assortment or maybe just a new customer for both banners, right? I'm just trying to think about the incrementality.

不，這非常有幫助，謝謝。也許再追問一個：關於你們目前在加拿大看到的情況，來訪量的正向趨勢，你們是否能判斷這是原本 Bed Bath 的客戶回流？還是 Overstock 的客戶因為體驗改善或品類更齊全而回來？或者是對兩個品牌（banners）而言都是新客？我只是想理解增量（incrementality）。

Yes. I think it's all 3 of those. And I think what's really telling us is that a lot of it is coming through search engine marketing. So with people typing a product they're looking for in Google or another search engine, and they find it and it's being sold at Bed Bath & Beyond, the conversion rate is higher. We -- I mentioned earlier, and it's kind of -- not everyone -- if the company loves using this analogy, but the Overstock name really was a boat anchor. And I'm not sure we knew how much -- how heavy of an anchor it was.

是的。我認為三者都有。而且很能說明問題的是，其中很大一部分是透過搜尋引擎行銷帶來的。也就是人們在 Google 或其他搜尋引擎輸入他們要找的產品，然後找到它，並且看到是由 Bed Bath & Beyond 在賣，轉換率就更高。我——我先前提過，這有點——不是每個人——公司很愛用這個比喻，但 Overstock 這個名字真的像是一個船錨。我不確定我們之前知道這個「錨」有多——有多重。

But as we see better conversion in Canada through search engine marketing. And as I mentioned, return on ad spend is just better even as we spend more. And usually -- so we haven't found the [elbow] on that curve yet. I think that gives us a sense that in the past, when people found a product through a search and it was on Overstock, they may have had questions, is this last year's good, is this (inaudible) goods. But with Bed Bath, they're comfortable making the purchase.

但當我們看到在加拿大透過搜尋引擎行銷帶來更好的轉換，而且如我所說，即使我們花得更多，廣告投報率（return on ad spend）仍然更好。通常——所以我們還沒找到那條曲線上的「[elbow]」拐點。我認為這讓我們感覺到，過去當人們透過搜尋找到某個產品、而它是在 Overstock 上時，他們可能會有疑問：這是不是去年的貨？是不是（聽不清）商品？但在 Bed Bath 之下，他們更放心下單。

So it's been a boat anchor with customers. We clearly see it with how SKU growth has picked up. It's been a boat anchor with suppliers. And so as I said, dropping that boat anchor adding it to our great business model, this is a sleek boat that's going to sail.

所以它對客戶而言一直像個船錨。我們也清楚看到 SKU 成長加速的情況。它對供應商而言也像個船錨。因此如我所說，把這個船錨丟掉，再加到我們很棒的商業模式上，這會是一艘流線的船，將會揚帆前行。

The next question comes from Thomas Forte of D.A. Davidson.

下一個問題來自 D.A. Davidson 的 Thomas Forte。

Great. So first off, Jonathan and team, congratulations on the quarter, and congratulations once again on the Bed Bath's transaction. So Jonathan, you've been asked this question a lot of times. I'm going to ask it, just slightly differently. So it's a long time participant in the home e-commerce category. At a high level, what are your thoughts on looking ahead, the timing of the category returning to positive revenue growth, recognizing the near-term pressures from revenge travel and consumer spending on live events, Taylor Swift, as you pointed out, things of that nature. And then also at a high level, is it overly optimistic to think that as you transition the brand to Bed Bath from Overstock that at a company level, you could return to revenue growth faster than the category.

很好。首先，Jonathan 和團隊，恭喜本季表現，也再次恭喜完成 Bed Bath 的交易。Jonathan，你被問過很多次這個問題。我也要問，但稍微換個方式。作為家居電商品類的長期參與者，從高層次來看，你對未來的看法是：這個品類何時能回到正的營收成長？考量到短期有報復性旅遊與消費者把錢花在現場活動上的壓力，例如你提到的 Taylor Swift 等等。再者，從高層次來看，當你把品牌從 Overstock 轉為 Bed Bath 的過程中，認為公司層面有可能比整個品類更快回到營收成長嗎？這樣想會不會太樂觀？

So the first part of that question is hard. I think -- as I'm reading the papers, there's talk about the U.S. economy avoided a recession. I would say the home furniture and furnishings industry has had a recession. Our industry has been in recession and still in it. There's still some glut of inventory out there. There's still liquidation going on. I can't predict how quickly we're going to get out of this and we get back to normal.

這個問題的第一部分很難回答。我想——從我讀到的報導來看，大家在談美國經濟避免了衰退。我會說，家居家具與家飾產業其實已經經歷了一場衰退。我們的產業一直在衰退中，而且仍在其中。市場上仍有一些庫存過剩。仍在進行清倉。我無法預測我們會多快走出來、回到正常。

I will say it's -- the normalization we've seen is in the quarter-over-quarter trend. So while the spending is not yet back to normal. The second quarter, we did see a comeback in patio. We saw an uptick in the second quarter like we expected because I think the quarter-to-quarter trends are starting to feel more normal. It's just not the total volume does not get back to normal.

我會說——我們看到的「正常化」是在季對季的趨勢上。因此，雖然支出尚未回到正常，第二季我們確實看到庭院品類回升。我們在第二季看到如預期的上升，因為我認為季與季之間的趨勢開始感覺更正常。只是總量還沒有回到正常。

The second part of the question, do I think the Bed Bath acquisition and re-brand helps us outperform folks in the industry? An emphatic yes. I really think so. I mean we did this for a purpose. We've been looking at Bed Bath & Beyond for quite some time. We love its brand. We love its customer base. We didn't like its business model. So buying it as a going concern, looking at it as a going concern, not something we wanted. But when this opportunity came to get the good parts of it without its boat anchor parts, it felt like just a dream come true.

第二部分，你問我是否認為收購 Bed Bath 並重新品牌化能幫助我們跑贏產業內其他公司？非常肯定，是的。我真的這麼認為。我的意思是，我們做這件事是有目的的。我們關注 Bed Bath & Beyond 已經有一段時間了。我們喜歡它的品牌。我們喜歡它的客戶基礎。我們不喜歡它的商業模式。所以如果把它當作持續經營（going concern）來買、以持續經營的角度來看，並不是我們想要的。但當這個機會出現，讓我們能拿到它好的部分、而不必承擔那些像船錨一樣的部分，感覺就像美夢成真。

So I do think between the customer base, the brand -- is it customer base that we've acquired and we can now -- new customers we can market to. I do think we perform better and get back to where we need to be and where we want to be more quickly than others in the industry.

所以我確實認為，憑藉客戶基礎、品牌——不論是我們已取得的客戶基礎，還是我們現在可以行銷觸達的新客戶——我確實認為我們會表現得更好，並且比產業內其他公司更快回到我們需要、也想要達到的位置。

The next question comes from the line of Curtis Nagle of Bank of America.

下一個問題來自美國銀行（Bank of America）的 Curtis Nagle。

Great. So just, I guess, a quick one on thinking about the comparisons through 3Q. July did see improvement, right? It sounded like it was due to a better [4th]. But I guess is it possible kind of -- could see a falloff in August and September without the support of a big event or big holiday period, how big is the labor day period versus July 4, in terms of sales generation?

很好。我想快速問一個關於第三季比較基期的問題。7 月確實有改善，對吧？聽起來是因為更好的[4th]（7 月 4 日）。但我想問的是：如果沒有大型活動或大型假期檔期的支撐，8 月和 9 月是否可能出現回落？就帶動銷售而言，勞動節檔期相較於 7 月 4 日有多大？

So just historically, I'm not counting what we're doing with our re-brand, which I think kind of really shakes the snow globe and things will be significantly different for us with the re-brand or that's -- I'm eager to see, August tends to be a little slower. But Labor Day is a big event. Labor Day in this industry has always been big, and we've performed well in the past.

就歷史而言——我先不把我們正在做的重新品牌化算進去，我認為那會真的把雪球球（snow globe）搖一搖，重新品牌化之後我們的情況會顯著不同——我也很期待看到。8 月通常會慢一些。但勞動節是一個大檔期。在這個產業裡，勞動節一直都很重要，而且我們過去表現也很好。

Historically, sometimes September, October, we see some of our competitors do their special events, that also generally has a halo effect or others in the industry. So I think there's a lot of good in the third quarter still to come, particularly around Labor Day.

從歷史來看，有時在 9 月、10 月，我們會看到一些競爭對手做他們的特別活動，而那通常也會對我們或產業內其他公司產生光環效應（halo effect）。所以我認為第三季接下來仍有很多利多，特別是在勞動節前後。

I will note, not this year, but next year, I think we're going to get some more tailwind in the third quarter with back-to-dorm, back-to-college. The timing of this acquisition means we've missed that up. We've missed most of that opportunity this year. But we know Bed Bath & Beyond has historically done well and even one in that segment in the past, we have every intention of marketing hard to that group next year. So not really relevant to the next 60 days, Curtis, but relevant to the quarterly trends as you think about us in the future.

我想補充一下，不是今年，而是明年，我認為第三季在「返校、返宿舍、回到大學」方面會帶來更多順風。這次收購的時點意味著我們錯過了那一波；今年我們已經錯過了大部分機會。但我們知道 Bed Bath & Beyond 歷來在這一塊表現不錯，而且過去在該細分市場甚至拿過第一名；我們完全打算明年針對這個族群大力行銷。所以這對接下來 60 天其實不太相關，Curtis，但當你從季度趨勢、並思考我們未來走勢時，這是相關的。

Dave, anything you'd add to that?

Dave，你有什麼要補充的嗎？

No, you covered it.

沒有，你都講到了。

Adrianne, any -- okay, I can see thumbs up from Adrianne on our screen here. So -- Curtis, I hope that addressed the question well.

Adrianne，有沒有——好，我在螢幕上看到 Adrianne 比了個讚。所以——Curtis，希望這樣有把問題回答清楚。

Yes, for sure, a good answer and the college industry point, it's certainly a good one. Maybe just as a follow-up, kind of curious to dig into the trade down comment, right? So it sounds like it had hit AOV a little bit, but I guess would there be any offset from customers coming in because they are seeking value in a relevant industry or to you [relevant] industry? Or is that just kind of being not really happening because things are still promotional at the moment?

是的，當然，回答得很好；而且你提到大學產業的觀點確實很不錯。那我再追問一下，我有點想深入了解你提到的「消費降級（trade down）」評論，對吧？聽起來它對 AOV（平均訂單金額）有些影響，但我想問的是，會不會有某種抵銷效果——例如因為顧客在相關產業或對你們而言的[相關]產業中尋求更高性價比，所以反而更多人進來？還是說因為目前促銷仍然很多，所以這種情況其實並沒有真的發生？

Well, look, we -- our value proposition is Smart Value. we provide quality product for less. And whatever the price point a person is willing to spend on, we think we provide the best value there. So someone else asked earlier, what are we doing that's helping us do better. I think it's that value proposition. So is there is that value seeker, the savvy shoppers, as we've referred to in the past. Are they finding us more frequently? Yes. And that's a shopper that really shops for value, something we offer.

嗯，你看，我們——我們的價值主張是「Smart Value（聰明價值）」。我們以更低的價格提供高品質商品。無論一個人願意花多少價位，我們都認為在那個價位帶我們能提供最佳價值。所以先前也有人問，我們做了什麼讓我們表現更好。我認為就是這個價值主張。那麼，是否有那些追求價值的消費者、我們過去稱之為精明購物者（savvy shoppers）的人，更常找到我們？是的。而這正是會為了價值而購物的客群，而這也是我們所提供的。

So as we see a little trade down and good, better, best, I think we're also probably getting some benefit from people just looking for a value as they shop hard across the industry.

因此，當我們看到在「好、較好、最好（good, better, best）」之間有些降級消費時，我認為我們也可能從人們在整個產業中更用力比價、尋找高性價比的行為中獲得一些好處。

The next question comes from the line of Anna Andreeva from Needham.

下一個問題來自 Needham 的 Anna Andreeva。

A couple of questions from us. Great to hear that the consumer in Canada is buying. And I think you mentioned strength so far over there in the Bed Bath core categories like Bed Bath and Kitchen. But curious, how has the response been to some of the Overstock core categories? And what type of marketing are you finding most effective at driving that conversion? I think you said the plan is to have coupons potentially less deep than what historically that -- that's offered. And then I had a quick follow-up.

我們這邊有幾個問題。很高興聽到加拿大的消費者有在買。我想你提到那邊目前在 Bed Bath 的核心品類（像是寢浴與廚房）表現強勁。但我好奇的是，對於一些 Overstock 的核心品類，市場反應如何？以及你們發現哪一類行銷方式在推動轉換上最有效？我想你說過，計畫可能會提供折價券，但折扣深度會比過去歷史上提供的更淺一些。然後我還有一個簡短的追問。

So as I mentioned, we've seen the categories that have done best in Canada are the ones that are -- that you traditionally associated with Bed Bath & Beyond. Bath, bedding, kitchen. But we've seen growth across the board. It's not just those categories. It's people finding patio furniture, finding bedroom or rather living room and dining room furniture, rugs, art on our site in Canada and buying it. So -- the ones I mentioned are the ones that are growing the fastest, and I think there's a familiarity there. But the brand is helping all categories.

如我提到的，我們看到在加拿大表現最好的品類，是你傳統上會與 Bed Bath & Beyond 聯想到的那些：浴室用品、寢具、廚房用品。但我們也看到全面性的成長，不只是這些品類。人們也在加拿大站上找到庭院家具、臥室——更正，是客廳與餐廳家具、地毯、藝術品，並且購買。所以——我提到的那些是成長最快的，我認為那裡有熟悉度的因素。但這個品牌正在帶動所有品類。

How are we marketing? Most of it has been the search engine marketing, as I mentioned, the e-mail, push, ramped up slowly, it ramps slowly. It's not yet at full -- we're not sending it to everyone yet because we really need to make sure we stay out of spam filters. Now the good news is our e-mail team knows how to do this. I think there's always an eagerness, if they're faster, send to a larger group. I mean that's the CEO's mantra. The good news is the e-mail team says, "Well, no, slow down, Jonathan. And if we do what you want to do, it actually is going to backfire on us and so we know how to do it" and it's -- there's a lot of margin there.

我們怎麼行銷？大部分是搜尋引擎行銷，如我所說，還有電子郵件、推播，都是逐步拉升，而且拉升得比較慢。現在還沒到滿量——我們還沒有寄給所有人，因為我們真的需要確保不會被垃圾郵件過濾器擋下來。好消息是，我們的電子郵件團隊知道怎麼做。我想大家總是會很急，想更快、寄給更大一群人。我的意思是，那是 CEO 的口頭禪。但好消息是電子郵件團隊會說：「不，Jonathan，慢一點。如果照你想的做，反而會害到我們，所以我們知道該怎麼做。」而且——那裡面有很大的利潤空間。

Couponing. Yes. We've done some -- a little bit more aggressive couponing in Canada out of the gate -- like -- I've hinted that we'll do in the U.S., but that's not a long-term play. Let's remember, we still like our financial recipe card over the long term. And while Adrianne said, gross margins will go down a little bit initially because of some aggressive couponing and promotions. We intend to, over time, get back to our financial recipe card, which has gross margins in the 22%-ish range. Hope that answers the question, Anna.

折價券。是的。我們在加拿大一開始確實做了一些——比較積極一點的折價券策略——就像——我暗示過我們在美國也會做的那樣，但那不是長期策略。請記得，長期來看我們仍然喜歡我們的「財務配方卡（financial recipe card）」。而且正如 Adrianne 所說，因為一些較積極的折價券與促銷，毛利率一開始會稍微下降。但我們打算隨著時間推進，回到我們的財務配方卡，也就是毛利率大約在 22% 左右。希望有回答到你的問題，Anna。

Okay. Yes, that's super helpful. Just as a follow-up, on the vendor base, I know you've taken some direct possession of goods just on the margin historically and recently. How should we think about the willingness to take that direct possession of goods from suppliers as it relates to Bed Bath vendors coming to the platform.

好的。是的，這非常有幫助。再追問一下，關於供應商基礎（vendor base），我知道你們過去以及最近在毛利方面，曾經少量採取過直接取得商品（direct possession of goods）。那麼，當 Bed Bath 的供應商加入平台時，我們應該如何看待你們從供應商那裡直接取得商品的意願？

Yes. So we did take a little bit of what we call core inventory, where we purchased it in the second half of last year and hold through it quickly. It was really to prove the vendors that there was demand on our site. As I noted in my prepared remarks, is we've added more product, all of that product is on a drop-ship basis. We love our asset-light business model. We intend to continue with that asset-light business model. One of the things that we've seen is that with -- vendors are more eager to sell to us, even before in the U.S., we've become Bed Bath & Beyond because they know it's coming. And so they're not requiring that we take -- we purchase inventory. And we really don't have an intent to do that on any kind of meaningful scale.

是的。所以我們確實拿了一點我們稱為核心庫存（core inventory）的貨——我們在去年下半年買入，並且很快就周轉掉。那主要是為了向供應商證明我們網站上有需求。正如我在事先準備的發言中提到的，我們已經新增了更多商品，而這些商品全部都是以代發貨（drop-ship）的方式進行。我們很喜歡我們的輕資產（asset-light）商業模式，也打算持續維持這個輕資產模式。我們看到的一件事是——供應商更願意賣給我們；甚至在美國，在我們成為 Bed Bath & Beyond 之前，他們就已經更積極，因為他們知道這件事會發生。因此他們並不要求我們必須——購買庫存。而我們也沒有意圖以任何有意義的規模去做這件事。

At this time, I would like to turn it back over to the speakers for any further comments.

此時，我想把時間交還給講者，看看是否還有進一步的評論。

Operator, thank you. And for everyone that's been on the call, thank you. In closing, I need to thank the entire team for its focused hard work on our re-branding. I'm confident it will pay off. Our supplier partners are motivated by this deal. So are the new suppliers who now want to sell at the new Bed Bath & Beyond. We expect our customers will be excited by the preservation of the beloved and trusted Bed Bath & Beyond brand. They sure have been in Canada.

接線生，謝謝你。也謝謝所有參與本次電話會議的各位。最後，我必須感謝整個團隊在我們品牌重塑（re-branding）上專注且努力的工作。我有信心這會帶來回報。我們的供應商夥伴受到這筆交易的激勵；那些現在想在全新的 Bed Bath & Beyond 上銷售的新供應商也是如此。我們預期客戶會因為我們保留了大家喜愛且信任的 Bed Bath & Beyond 品牌而感到興奮。在加拿大，他們確實是這樣。

Our employees are energized by this opportunity. It has a shot adrenaline into the company. They see a bright future and so do I, with the iconic Bed Bath & Beyond brand attached to our great business model and the actions the team is taking, I'm more bullish than ever on the future of our company. This team will capitalize on this great investment. I look forward to sharing more on our progress on our next quarterly call. Have a great day, everyone.

我們的員工也因為這個機會而充滿幹勁。這為公司注入了一劑腎上腺素。他們看見光明的未來，我也是；在具代表性的 Bed Bath & Beyond 品牌加持下，結合我們優秀的商業模式與團隊正在採取的行動，我對公司未來的看法比以往任何時候都更樂觀。這個團隊將把這項重大投資的價值發揮到最大。我期待在下一次季度電話會議上，分享更多我們的進展。祝各位有美好的一天。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參與今天的電話會議。本次議程到此結束。您現在可以掛線。