Cody Slach Investor Relations-Liolios
Mike Willoughby Chief Executive Officer
Tom Madden Chief Financial Officer
Jason Kreyer Craig-Hallum
Kara Anderson B. Riley FBR
Call transcript
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Good afternoon everyone, and thank you for participating in today’s conference call to discuss PFSweb’s Financial Results for the Third Quarter Ended September 30, 2018.

Joining us today are PFSweb CEO, Mr. Mike Willoughby; the company’s CFO, Mr. Tom Madden; and the company’s outside Investor Relations Advisor, Cody Slach with Liolios.

Following their remarks, we will open the call for your questions. to conference like to now would hand over the Mr. I some introductory for comments. Slach

Cody Slach

Thanks, Lisa.

starting as go the the like confidence, this press replay Before or I’d following I redistribution, available expect, available will statements. further, in strictly at like without we would believe, anticipate, way Eastern this forward-looking PFSweb historical are release, filings, the estimate, provided All The than tonight. of PS of prohibited. this words as other will statement. remarks will, to Any and statements. via statements section project replay rebroadcast call the other Harbor in used disclaimer guidance, relating be well link full call, that pfsweb.com. similar intend, facts forward-looking target, statements. concerning under website the website to available forward-looking The retransmission metrics be PFSweb can also expressions and remind – XXXX presentation company’s of through be non-GAAP express forward-looking this typically well statements found identify in Investors certain are our used to X:XX A the Safe PM as make to consent webcast as is written everyone any for XX, at in today’s on call November in

Mike? call the Executive Chief PFSweb, to Mike turn over I would like Willoughby. the to Now, Officer of Mr.

Mike Willoughby

to good Cody, you, afternoon and Thank everyone.

which our Before e-commerce the hear provide our us our segments, two into getting and will we you end-to-end to call additional today, into deliver business offering. listen through as update, service financial insight you business

services, management is payment engagements and our fraud activities. to services technology, care, fulfillment, the business gross monthly PFS customer XX% order XX% reminder, multi-year including a This in revenue, generally margins segment range. by and management provides characterized recurring normally operations As order

integration. digital development and LiveArea services, experience technology strategy, segment and digital and including professional and creative marketing, Our provides platform commerce

While services to re-occurring does by marketing as target business and nature. in have between and managed it level LiveArea from be with are engagements project of is XX%. in driven characteristics discrete projects clients, well digital margins as gross high retainers, generally We this XX% existing recurring that revenue a primarily

Now fourth to we initiatives profitability in third higher continued quarter, moving the our on, on on margin XXXX. during – continued focus and focus we to execute quarter, engagement, on set

in a outperformed PFS Similar result, expansion. our our As consecutive was quarter, to while fee quarter this our year-over-year gross business of segment. sixth our last LiveArea experienced softness expectations, service we margin

performed sold new we for at to of high a client, benefit to activity and agreement segment, LiveArea clients. a existing with clients, both our retainer our level successfully continued projects level higher For current from of a and number

new implementation for clients. we e-commerce lower-than-expected continued of sales experience platform projects However, to

We couple also and a experience next be quarter, project implementation the large during expected launches, delayed of continued now delays the of to early to we into part year. begin that with to expect

LiveArea accordingly and prudent Although, resources, adjusted in efficient utilization point improvement as top bookings and these we’ve margin. have our the impacted by with basis delays cost line, of management more XX reflected EBITDA a responded lower LiveArea’s

shipping For first year record globe. over X.X the the as we the from more the across we quarter of momentum orders PFS, half third carried experienced million volumes, strong than

to existing Subsequent Belgium. center our upon improved Southampton, England, fulfillment a generate to significant in continued gross DC in footprint new the opened quarter, also distribution we margins in We this segment. European Liege, building

this more we client begun facility, and operations in site, have existing relationships new existing expect go client that as the this week, supporting past relationship to an we European presence required add a we Over UK to forward. and

offering completely And financial to progress turn also significant our development to to as I’ll into moving exciting one Tom, quarter. final well offering with call initiative, the year. FaaS the of for for during further as this exciting new season. now insight FaaS Fulfillment-as-a-Service provide new QX our commentary will or have bringing provide phase our well with on activities, over testing another our with made market the then holiday the We progress initiative, developments our Tom? I come business and as upcoming as operational preparations results, back with

Tom Madden

everyone. good Mike, afternoon Thanks, and

Let me of highlights QX. provide results for some the financial

equivalent to we million in a million, quarter, minor compared saw $XX.X to consolidated prior revenue, third reduction fee the year the decreased our year-over-year in For service $XX.X which period.

the related performance However, was was which versus later. to of up basis improvements overall our will this higher primarily prior gross was I our XXX points margin in margin that quarter, discuss our range segment, than Also XX% margin XX%, to targeted which gross gross XX%. year note at performance PFS

project do Although we expect we we generally both slightly margins of the as work reduced at activity, other end sequential XXXX targeted range due results. QX will go quarter, we the be with with continue the EBITDA our in client hope for better to benefit from that although perform generated the than which From an our and more line the our range. in was line million to to PFS year prior forward, adjusted $X.X standpoint, higher performance and

of resulting cash million $XX.X debt million, sheet cash Turning and XXXX, equivalents net $XX.X at which and $XX.X September a XX, total in balance position compares approximately debt million, to was totaled calendar Overall, continue flow debt a to million December cash million. expect XXXX. between we $XX generate of during position $X to operations million to and net XXXX of $XX.X from XX, year at the

needs. facilities with amended growth borrow flexibility across our existing facility our $XX support facility feature The term Regions we up of a week, maturity financial credit and loan agreement This PFS capital agreement our more favorable announced bankers terms. strengthen million. Bank, business provides syndicate sheet our by structure led credit rate million at revolver finalized LiveArea revolving for replacing The million an $XX an targeted provides working As extended further and amended an a us both total date better accordion with provides to balance additional a and of earlier $XX and to also also segments. to our and support this to greater

$XX.X PFS million for fee SFE service of XX.X% with margin. strong generated fee This $XX.X quarter of XX.X%. the The Our compares quarter equivalent to year margin service in the warehouse PFS gross and lower-margin objectives gross a with segment project focus revenue margin offerings enhanced client was million the capabilities, improved of and last did including engagements, revenue work, meet of of a profitability discontinued. were third transition higher-margin operational of through due not including which to primary factors, our several efficiency on technology certain gross

in fee versus activity generated third segment, result have continued revenue well the is projects. million gross quarter and with gross to business project the This project fee this margin $XX.X of primarily of of prior service new million bookings In segment $X.X we lower million our as the the third LiveArea that decreased response launches revenue $XX.X begin as delays expenses in XX.X%. during client we Our which margin by quarter third in softness, SG&A to in revenue of LiveArea lower last year. due LiveArea service new trimmed of in to the XX.X% decline year. as quarter LiveArea service expected to the revenue compares a The fee

to These we have costs include two business of attributable segment data, cost In SG&A. addition as not corporate to also reported directly that are the one segments. business the

adjusted costs in compared of as the related corporate QX has to slightly prior Our SG&A XXXX declined year. to

one the classified may business in with future in additional costs future. of may are cost to be expense into among the the expectation of be may segments continuing costs that that bucket the direct business been the the considered our We into of and units have evaluate historically reclassified two from our within SG&A allocations costs operating certain corporate fees

on Moving outlook. our XXXX to

we to While anticipate our from from to solid lower-than-expected as previously new $XXX our to our be business be of million expect million million. million. PFS $XX to revenue $XXX segment our the LiveArea $XXX million this million targeted. $XX compared expect and revenue that lower client makeup SFE $XXX revenue The service fee is to that continues will to million activity $XXX now $XXX PFS LiveArea between segment, be XXXX to guidance a of million consolidated than our result our we be We prior somewhat currently range between project to as segment to of

up consolidated revenue we targeting to I’ll to a basis, our from SFE on our Mike, prepared for are adjusted million guidance, back consolidated to over and reducing million are guidance turn we reflecting we remarks which growth XXXX. concludes my XX% maintaining to $XX $XX Mike? previous be call the While are EBITDA, This between

Mike Willoughby

Tom. Thanks,

the in this our gross to XX% at specifically rate long-term range. growth XX% with XX% segment LiveArea segment, for revenue service XX% margins sustainable Looking fee target to is our

favorable the We’ve also at than quarter, generate retainer months at than generally length, primarily this Retainer year. cost to revenue at bookings, this a least utilization to continue recurring effective high are rate from engagements, end in less rate bookings have project segment, the business. completed of XX margins which strong a are the generate Further, revenue, we resulting months. service which of for continuing We and but trend for in the recognize continued first which percentage remained in in the continued record the EBITDA often experience from gross adjusted fee at our half to range year-to-date. quarter, our improvements margins revenue the of as improve slower levels six continued controls

revenue bookings this the year program launches, year. continued expecting with given segment remainder several expected headwinds we the new of from project lower for are in this than client clients delays However, and

LiveArea of XXXX retainer and million. bookings were Total the QX million. of of of were as where $XX retainer were for As clients contract include $XX to around provide million on approximately LiveArea higher billion a for services have QX for one-time end year-to-date current project and $XX to of recurring reminder, to approximately retainers end XXXX around in we year-to-date bookings the million substantially compared compared value bookings. XXXX basis million clients. of with QX bookings million year-to-date a new of our of revenues $X the for bookings $X a about annual projects new at average new $XX Total bookings also to bookings LiveArea for to $X in approximately QX expected year-to-date bookings about QX related contract consist and retainer

lower year-to-date noted, continues experience approximately result, However, of project QX about LiveArea XXXX to were QX sales as and as new previously to billion. to million expected project $XX bookings clients compared bookings the project a year-to-date than segment $XX

For for we the in retailer the high UK. color were on LiveAreacx.com on pleased quarter, growth The a website, multi-channel with the our during to toy our quarter, Entertainer, engagement announce the owned little bookings independently

store, on long-term the As Hybris featuring toy with we to experience. relationship user their Version of e-commerce X, worked SAP mobile-first Entertainer, edge part our with new leading retailer launch a The

omni-channel Following their client initiative services for We’ve to integrate the quarter, in new their program Order in because user the Sterling LiveArea choice for project support long-term their excited technical provide announce support a they of OMS development in-depth had and our this America. North this deploy with I’m managed natural into to support in to a of as System implement into of e-commerce we were client for Commerce of very Cloud-based solution. them agreement project completion with engagement experience. and their a their of a also program, their a e-commerce Entertainer or I the during Commerce knowledge we stores believe IBM’s Management to new entered Salesforce current services OMS The

our also project, I to client and additional And work for on Sterling believe is this managed engagements. to expect new services This managed LiveArea, OMS agreement to the first leading service for could projects first our include to Sterling platform. expand services launch. open lucrative a support opportunity this with We after category

segment. global revenue. segment is active of seasonality of it important the continue engagements. metric But scale this expect our and to I of client indicator believe one-time our will reflect to of of fluctuate LiveArea likely the I end As QX, the LiveArea and had project the one quarter-to-quarter, nature XX

in the level our high a of despite on quarter QX, retainer at project had signed earlier we performing client new agreements the lower clients and another Now year. bookings solid this executing current for

been very a resulting be engagements to LiveArea. referenceability brand current recognition which looking industry tangible with is of a and for level also in high Forrester’s clients, One result continues working this Tech: the Report. organization professional partner managing to evaluate Forrester’s Tech of competition, included personally LiveArea Report, in inclusion our specialist client in the in effective our industry. upcoming a in will to organizations, in for forward LiveArea excited reading consideration was Service reputation in of Now year. QX establish positive which to service XXXX, Report, competitor Commerce Wave much earlier and wave group for as hard the report, of Forrester the be published Our strong to Providers, included I’m top services under commerce providers We’ve this elite their providers I’m very larger our and Now prestigious LiveArea

Moving onto PFS segment. the

target for segment. Our long-term this rate X% SFE revenue to growth XX% is

England. of to fulfillment help us building fulfillment Central our end operations on the a margin Southampton, profitability recent by evident Liege, results, margin current opening our gross read as improved target high localized upon European again been order our focus offering profitability, expand once this new the you However, UK, From improved our at our through XXX,XXX-square and our focus will XX% we margin release, primary in in objective to quarter. the Hopefully, our most range new has in chance had a a European, in XX% offerings. Belgium. announcing our engagements throughout efficiency This XXXX be center on foot perspective, in fulfillment with service our continues to of DC center, higher press of came have

plan clients U.S. existing to clients, to this the into facility option new EU not our new and an pursue utilize directly UK. fulfillment also the but is market, UK Our expand only to offer in

this look we UK success other site, of to in existing to I As We winning one in supporting shipping European are presence have earlier, mentioned operational incremental and already that the desired fulfillment an costs. minimize business clients Europe existing other a fulfillment our other BXB as client. existing clients. in as support and with we we UK solution today, news, health In that new recently launched market client clients previously well beauty PFS for announced a

be I key programs conducting now DTC facilities will is our scale believe client. ability footprint business-to-business direct-to-consumer, both into a programs and to win for compete is The gaining for fulfillment the capabilities, and for are we help our PFS. for large BXB from momentum expansion strong, PFS pipeline the clients, deals great and This remains platform program as a this us season. BXB case XXXX study, DTC and service demonstration and transition should We our and fulfillment requiring inventory branded services. brand, and and selling same differentiator

active of representing we quarter, our doubled end July. value the pipeline the client the of sales programs, For brands. XX since context, At end third we’ve maintained different XX

quarter in a we second the for our a fulfillment set record quarterly row, in For activity centers.

upcoming orders, to strong we’re organic During the continues third XX% quarter, order given we shipped increase as more client than earlier This client, increase by the driven by season. in new these year. benefit of very from growth several implementations X.X a well the holiday And volumes, the be million across especially peak year-over-year. as encouraged

standard possible, will season. anticipate retailers Speaking more We and shopping be opportunities of that holiday the a the provides volumes peak longest for to shop Thanksgiving while delivery, spread the are and which there receive is special longer across opportunities holiday more more shopping higher promotions. for number days season, season provide XX consumers time to between which product Christmas, longer providing

our may management year’s technology, recall solve clients. holiday, that fulfillment operations bundle our infrastructure, introduced called order -Service also or lightweight initiative last challenges we for FaaS, segment a You new oversight fulfillment and for where Fulfillment-as-a PFS our we to portable from

our fulfillment announce The offering. XXXX center to our peak. a our of to year fulfillment now with production part solution first FaaS product to the bring in FaaS pop-up formal concept of that the solution piloted during clients we’ve center I’m holiday one market been and is, working first excited last pop-up is we

pop-up FaaS an support metro for in Our first holiday deployment XXXX of Toronto jewelry serve scheduled is the during area, in operation freight to a better period. reduce costs, seeking and existing client, their production customers the of Canadian

Moving grow initiative temporary we peaks, the firm any on portable FaaS their space estate BXB working product requiring mixed-use requiring to global created forward, allows many cost like we’ve as fulfillment which services even fulfillment pop-up even box almost support or BXB portion operation seasonal in dining, real is implement differentiated shopping, touch solution FaaS special I’d warehouse, to of allocate store applications empty to deploy Earlier dock, destinations third-party market where of space, effectively deploy in and partnered response and a rented a or a designed to also of we additional ownership Internet a or retailers provider. transportation in-store short-term logistics the a new high-margin in business, to another with partnership the store to temporary this hardware we’ve the firm, including on. without stores short-term order potential access to retail for can for premier fulfillment pop-ups The a variety clients PFS challenges for nature product as our mall-based of effectively There to look traditional with we events and in mall-based centers, called clients’ in quickly and to a been omni-channel to of way retail year, future. valuable solve of this big portfolio, our is and any network. the cost or operations, shipping or entertainment staffing strategy that or us that excited longer-term expansion space, this have the specializes pop-up RetailConnect, very retailers. software. a separate solution, are I’m adjust The in

RetailConnect of enabling online sale the technically of aspect involves store first inventory. The

that within space the the consumer. for of the same-day a the aspect and orders delivery, of mall. depot store pickup, in-store versions transfer It the curbside transaction include will central second Future pickup within The delivery and home retail prepared to or collection, here RetailConnect is are retail mall centralized the is shipping to merchandise centers.

the are place our clients, taking this testing holiday with in solution complete production of completing the program through current season. pilot RetailConnect one We Worth area of a Dallas-Fort

From Our a prior premium Strategically of cost-effective, providing to low announcement plan our expect SaaS core services, XX labor. face. partners is products, of characteristics launch XXXX, we market effort, of at peak. innovate our confirms solutions ship much revenue into strategic malls hourly to this perspective, is to not from financial new the higher this throughout PFS our solving of product speaking, and that holiday technology targeted operation from of have initiative, our with our X targets, addressable retail more the an to ability gross to clients problems XXXX out business recurring a with long-term participating create our of facilities retailers solution FaaS margin set national deployment by and product and offerings limited streams, mall

to PFS offerings, more rate As rollout our we and we may the continue segment. targets profitability to able FaaS growth for be adjust

also revenue. dependable generating our PFS lower cross-sell and We and could provide project more LiveArea anticipate between streams which RetailConnect, new LiveArea of cost-of-sale client opportunities from new

announce details today like this initiatives development thrilled in product look more coming on to to FaaS months. this and the forward new We’re sharing

both PFS more details perform For on at to across continue level for clients Overall, high our positioned this pfscommerce.com/retailconnect. we holiday RetailConnect, to our please LiveArea at our and well segment. visit website a remain

management lower to year of our Live We and in utilization another launches practices adjusted and efficient more project deliver of resources Area to bookings prudent EBITDA. new offset cost record the also will delay continue

grow our about As client and our relationships. overall our through business world-class forward we’re to LiveArea XXXX, ability many to we look PFS optimistic

model, order bring FaaS are margin segment continue higher mentioned to as within to we’ve do growth. have such adjust about reduce volatility market we to the on opportunity our We in new this to side innovate LiveArea the to our increasingly today PFS products to to products sales to year. further exposure the experienced also project to accelerate the the our optimistic client Clearly, work

budget, and As believe industry. Based distinctiveness have light re-evaluating we and our corporate grow our the the we plans combination the right I sales at a we in long-term the we strength believe a our LiveArea healthy of the PFS, we plan on on finalize to unique and particularly has brand win of ability competencies rate where also XXXX basis. to and LiveArea of our in our are have, through

maintain We translating look that action profitability Tom performance, a opportunities will our you for of we investors answers. now while and market are happy by with difference and with plans always, forward all We a we’ve to specific better opportunities to up have hope XXXX within phone. we’re several questions going make the segment. make into addressable as months. ourselves available we’re made to questions produce line LiveArea work in our to answer communicate Lisa the story. progress I to committed business exciting call and next engaging and top our that over to meet And to open the to


[Operator George Thank Instructions] to go Craig-Hallum. you, first with We’ll Sutton sir.

Jason Kreyer

challenges. of gentlemen, the to on that Mike, afternoon, platform was as of side, George. it’s you’re headwinds experiencing the so good related Jason talked last you quarter this talk can Hey, we’ve or for specific LiveArea some the through over on some

I maybe So, that’s basis you seeing platform where seeing delayed you’re actually wondering on you’re what some walk was projects? the of if through if could a

Mike Willoughby

Jason, provide some I’ll Sure. color.

projects. color me our opportunities it’s these And is guess is an been for just for in partners receiving a year implementation that we’re the new of channel in implementations. market from of as think our this and other year platform number extent the far to the had slower and kind these to the as experience at-bats that we’ve year large engage that really competitors this I issue

the in We come and organization word I expect continued see wait I the the has kind several of what year different the year reasons kind of of about earlier to pipeline the each I just Magento, probably drive talked specifics slower been based kept that caused changes look variety our just of there a talked signing think we’re I to been change. various the this acquisition for implementations. in us result people Salesforce year think think year the pause Adobe’s simply at partner, there’s has the When some there. some of into we new happens that’s but to reasons for a in you integration about the earlier for that, Demandware of there. time flow that of don’t some that different that things rely that on create kind organizational lead think what with normal moment return I seeing would our in to and together and results. would conferences year, we we’ve of we’ve to from learned want but just at next things that attended more this on to

going that So, mix. revenue. to the portion as at want less be to looking that our have big that business we’re in to mentioned significant a the I ways part of the to greater a in we in are big we implementations going looking at on extent ever to to opportunities reliant business, we on we We can be away. into LiveArea grow control to so that the may definitely our be XXXX new prepared want of order turn implementations my be destiny be to drive less But which comments, dependent and not

Jason Kreyer

what you’ve get So are talking of looks customers, time that have point, frame of those bit And kind the those pushed a mercy those you’re to influence but anything expected you there to on on already kind just or moving about? rollout then, little for you is large do been at forward there implementations like? to can just booked maybe or their that that that some things occur, not the that that booked, at you out, deals that of

Mike Willoughby

just Well, much signing a on of of contract to overall out go it. universal because a have that more that and that The of couple the to one Right. resources wins we on mode. a that kind almost unusual reason I revenue is into up would that to a project beginning work It’s think signed is means work it delay softness. immediately we’re large it’s typical, called once delays, the component bit spending

deserved felt So comment. more we and I than the have it unusual, like doing think some we fact that one is actually that that’s

as we’re just far vary and for project we individual transformation as spent a the case, it’s working fairly on over, in they sort As control have digital planning situations been more implementation, bit has of have a design what much deployment. client is that complex the little it phase large a the time in one

reasons platform that certainly but the not much is e-commerce deploying we and so expected out would really as the longer from activity nearly activity So have put generates expect into year. now get client really it’s until project another XXXX. get for where some just work situation early not to budget the budget that hold project that us, they a allocation more In for real than the project of stretched actual situation, of the come I my in that of budgetary the new and we simply the comments, on first until will said the

just the for project really go re-kick do accelerate to and wait them on off there’s the part first can of nothing in in hold case, we year. that that we So that the to

we’re So, time to the in work situations bring working there, to can with get to everything try the going we’re obviously, answer we to questions obviously lengthening, clients prepared. the the where is there’s case of to the back one different discovery do projects those and

I on the have color that. So that’s

Jason Kreyer

just Great is color. that you, range have for to Thank been you few little there that nicely The a Tom. margin One quarters trying dissect bit gross here. and provided the above you, benefit margins slower once believe margins that bit given all last in margin segment a that provide to me which time the higher re-accelerates to lead little the XXXX the should returns LiveArea would that the of a is kind side, on frame.

that why to kind XX% XX% of in terms stay to of down at? break been can continue range, the the XX% it’s you in why if at couldn’t that wondering just XX% So in still we’d we

Tom Madden

couple to quarters operating So, been the has for the last it XX% range. of closer

of in few see those next just a there. in we’ve offerings higher-margin that XX% larger want a project little applicable we some continue in that objective, a real I to had be little that and hope while are quarters bit our to work valid benefit We to I have believe got incremental my into bit XX%. year, – but to there, comments careful rates a

on that. our again, and the that are comfortable one-off little objective of based project some of bit the the miss types toward with feel But range predict. Our and end the I it’s outlook would harder recurring high be of today out work of the there of opportunities to timing and kind

I So, to little of type more appropriate bit reflect think a that it’s range.

business, result, coming mix as a as see on our QX, at mix. fees just revenue of you is will from revenue addition, Operations a basis, percentage higher generally little lower In of a standpoint gross overall an from service look overall and because we that a bit PFS that that margin – profession

Jason Kreyer

guys. Thanks Okay.


[Operator Instructions] FBR. Kara go Anderson, Riley Up to B. next, we’ll

Kara Anderson

afternoon. Hi, good

Mike Willoughby

Hi, Kara.

Kara Anderson

kind I on to wanted back just jump of margin talk. the actually

volume period? Obviously, Tom, through segment So broken can Operations I since fourth bit dynamic in wondering, I’m are don’t that higher with service the what’s know shift, we’ve I about fourth PFS in fee flows quarter, the the out the talk yet. a think margin for little as the by you the that but said, you total just quarter holiday segment the seen impacted the within the margins

Tom Madden

been at. gross at be to QX, – fee of towards to all expect that and quite that I high that way as we’ve the end guess think Again, that we range, performing XX% up service would we I consolidated look would – margin not the

of end expectation. bit, the be So a I be that high towards range it would current my probably could think little

Kara Anderson

the the period, part target XX%, So, PFS with you year, that that, stay we it’s that in sort saw the of out, of also that that to just margin first Operations, for look for saying at called in to above the it of the I near would XX% holiday expect you XX% sort range you’re almost think if I volume?

Tom Madden

The we yes. XX% range, targeted that Operations In kind to on have guidance side is that XX% range of range.

have at stay high I of we We of expect high end to QX. that the that continue been during that range at range. the end would would

Kara Anderson

about took? trim you – can talk on you in or particular what items then to actions And thanks. LiveArea, Okay, bit little a the SG&A

Tom Madden

been have members ongoing the in this of the So adjusted etcetera, is – is the we prudently as through past. that a ensuring our currently management, more costs, our in where manage we of business stronger softness than experiencing. revenue And for it SG&A to lot also some rate we just of just team order we’re go that utilization that

Kara Anderson

holiday at offering deploying this your impact the something quarter? fourth there Okay. and only period, line materially is for that Fulfillment-as-a-Service it’s And been bottom piloted is the that you’re could risks then new because in execution point, on this

Mike Willoughby

So – so. don’t I think

that different piloting actually that reasons the kind then our talk the concept, we we in of the the diligent is didn’t environment prepared of what sort process within of very operated production through mode this effectively we on One about this in comments, production we’ve It’s of year, and went environment facility, up today were where even picking though distributing moving a and facility. were we single almost to facility, have we two orders in a environments. between temporary really effectively a that it the

deployed we have in the actually processes, utilized of fully that of ready Toronto, state-of-the-art. production, now And equipment go. is All part our this sort to in of

associated this don’t additional pop-ups future, risk. for of the think deploy think execution with Or we’ve really without that production look modularity kind events the to engineered execution to operate. doing risk peaks we geographies, the other or the and these special pop-up I we’d there So seasonal I if other portability is in with

Kara Anderson

you Got so it. Thank much.

Mike Willoughby

Thank welcome. you. You’re


hand back questions, for any speakers At this closing the time, conference additional to there our so or are I’ll remarks. no further

Mike Willoughby

the analysts, today, Okay. with our continue we fourth and initiatives, over everyone report months the detail about as next forward well. thank of March. very more to speaking Thank and I’d investors excited quarter those to the the within as you, look about like Obviously, FaaS particularly in forward talking Lisa. some results few that to look we the and to business, developments attended in we call our be

Tom Madden

Thank you, everybody.


Ladies for and that conclude gentlemen, to participation. like you conference. all does thank We today’s your would

now may disconnect. You