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WISH ContextLogic

Participants
Dennis Walsh VP, IR
Peter Szulczewski Founder and Chief Executive Officer
Jennifer Oliver Interim Co-Chief Financial Officer
Call transcript
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ConferenceCall Participants

Neeraj Kookada - JPMorgan Taylor Harris - Credit Suisse Jason Helfstein - Oppenheimer Michael McGovern - Bank of America Shweta Khajuria - Evercore ISI Laura Champine - Loop capital Bill Bird - Cowen Nick Jones - Citi

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Wish Second Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Dennis Walsh, Wish’s VP and Investor Relations. Thank you. Please go ahead, sir.

Dennis Walsh

Mini. you, Thank welcome, and Good everyone. afternoon,

Oliver. Joining me Founder Co-CFOs results Jennifer Wish’s discuss CEO, to Brett Peter and Interim our and our Szulczewski; are as today as Just well

SEC May of this statements intend these During statements encourage actual about is are of date. performance. the statements to the will today assumptions. subject We factors the This made differ uncertainties, or are implied as a and by will undertake assumptions risks call, of accessible make to our We materialize is These on update on result our A broadcast materially to plans available Investor or described be forward-looking events. and XXXX, we not future statements. XX, later the is risk being recording financial no the Relations the from and call statements If risks, forward-looking do prove as results for based website. The you Internet could on information. assumptions consider our results forward-looking call to this obligation and additional and new date information filings call in these today. of incorrect,

filed we EBITDA cash which can of GAAP about found on be discuss the Investor GAAP which reconciliations results, Form have as non-GAAP During we news with of non-GAAP both financial historical including our quarterly earnings they on Relations measures. and important and the website release, read SEC, call, will shareholder X-K, flow. you our non-GAAP measures, contain information a and including to and encourage adjusted free We letter and

call take with turn and open that, now will will brief the remarks, Peter. questions. And we to up your I’ll We then over with

Peter Szulczewski

performance you, the quarter Dennis, second XXXX. in their obstacles Wish affect and several Thank of faced that everyone. welcome,

expectations company both a Our were disappointing macro specific combination and and of our the they below through in top headwinds. as on results came bottom-line

retention increase have to made user we addition, now reliable we logistics. expected In that

need declined changes improve we the we that retention first way to make know better, but and our that to operate However, instead, our execution. can do we

have focus the While it before I'll our actions remarks expect began will today our materialize. the close taking to be we quarters will opening begin we with benefits we face and to out address on we Then several taking headwinds are them. outlook. the I already action,

in demand a our Starting to You review posted website. of the results letter Relations after our can detailed our QX in with million. shareholder resulting in a that than we has revenue year-over-year X% slowed to offset of revenue. Investor marketplace quarter, as the strong a start, results, find a been year-over-year revenue in through year-over-year XXX more growth decline XX% move XXX% by decline Strong was logistics

that with this are was due a comparison intensified. we difficult second note we not That retail very to we quarter pleased usage should the mobile performance, While the pandemic physical less last as competition of year strong and from increased XXXX. revenue with faced period

range. growth QX the our X% for midpoint only In that fact, call the guidance year-over-year provided revenue at we of

and on a Italy, largest declined our than our past of second began orders at increased The the of and strong U.S., perspective, over platform million to order million a lower adjusted gain EBITDA anticipated. This EBITDA in This of user to and primarily three of net activity volume quarter and reported we XXXX home XX affecting active bottom-line, million stay loss comp QX XXXX. adjusted XX rates and to losses was XX and loss buyers the On more loss net From markets. months. ease Daily in of macro the with we XXXX. due were a XXX QX particularly few compares a true France, million. increased the

reduction in XXXX. app a cost average XX% conversion buyers a QX. the low digital XX% Despite spent reduction of of of from our engagements fact, app saw continue on a during generated lot historically existing on new second and time platform of demand advertising quarter to and In in installs globally which ad platforms, have the on increase and we leading our

XX% fact, In platform were up ad one on CPMs nearly year-over-year.

In recent addition, shift has to privacy the Android iOS to spend for changes more advertisers devices.

the devices. Android reminder, are As on a users majority of Wish

major So on the to any have not expected were business. impact immediate iOS changes our

to to iOS for Therefore, contributed propriety in resulting supplied digital advertising as However, the impressions limited advertisers digital buyer algorithms impressions, science efficiency. bids reduced quantity advertising during These ultimately spend shifted quarter, rising up and their increased growth of reduced lower more the Android, advertising retention. marketing is drove data slower spend, new costs. costs and from they their which our

platform. designed Wish execute investments operate. time. acquire algorithms declining are effective in digital with for returns conversion to significant real we our on is to the on advertising and buyer costs, coupled users make cost user new us and retention Our to in successful goal requires users existing in optimize marketing rise Ultimately, way digital marketing reengage the The to some conversion new strategies and and changes

implementing increase are that experience we believe user initiatives the will the and retention. following We improve

products products Wish’s users. emphasizing quality from are ratings and positive First, we focused merchants and app initiated we on merchants now with our more process seat. an receive within product for we score are the enhancing July, quality and high-quality to that prioritize impression feedback distribution new In and selection, system,

experience. online recognizable are In apparel, with treasure translate globally augmenting goods that and home product inventory addition, we into and gadgets like more categories hunt our brands well an

data users. our have attractively should significant that high-quality leverage products select We can of delight amount priced, that to a we

based provides to all fun we users. developing an experience unmatching do discovery we shopping shopping ensure personalized and more online for experience. that are entertaining Wish Second, strive the app To engaging so a

get users In attractive Wish or unique a with and decompress providing prices. products, inspired. The provides app addition experience, to great to a also way to

incorporate elements. want us shopping even fun they that told even have and be social the to experience users more Wish Our to more

their which opportunity unique commerce answering lives. into them leaning social to shoppable, of also and such create features, call moments as a people's are review, by video has And and that entertaining fun they they more to believe introduce users in influencer known experiences are content We we future products ecommerce. have come their strongly the on of will that If may Wish social existed. joy, app, never feel back shopping pique interest that that while often. believe We the gamification,

We entertaining perfectly believe to features where is support Our brand dovetails we strategy. leaning focus the that the user on and this industry the have into going. with base

Instagram. on Wish promote shopping implementing a group tutorial be Wish. various well Two of conducting across media begun initiatives. leading Stream of We're platforms. influencers also We the on ago, our to events edge to we social the an positioned influencer is products social of trend. makeup Live beauty working featured with products these on have available commerce weeks hosted using a already first some live apparel

engagement management last development see a which just drive and ads, deep quarters. product Google's leading you expect experience, Jain of the week. ads. our incubating levels team To of can strategy, including typically we than product Tarun new from discovery of of oversee So innovations Chief to higher these the evolution to the brings welcome Wish our next to Product Tarun our response more few direct us leadership over Officer,

who recognize our user of There the that speed. And ongoing a of tests latency conducted all third, high from in end-to-end, a latency someone tests, fortunate existing faster, was which users caliber performance resulted already app instrumentation. or Wish are need built on number of in experience, smoother slowdown, a at leading on user slower experience a the cleanup open Tarun’s Wish. culture been The has platform impacted thorough have and resulted a address we enhance experience. product slowdown, used To We to the are to the particularly since review the app have significant of improvement. for to platform of we

we have fact, an reduced app experience. This is speed In impressive dramatically the by nearly that XX%. user enhances upgrade our

need joined July, forward, rollout Farhang's on creation our Chief we with balance maintain positive to product Farhang have effectively work Officer, suite core technology of impact new logistics stack capabilities. and optimal at brought Wish aim Google advance platform and our testing more solution. to we core innovation to will us for also oversee will In users. and experiences he merchant Kassaei, Going performance commerce Google, the Technology to on with where of full the business. led onboarding scaling are that from relevant development Farhang our new particularly the

today our one have actions may on users. focus have commonality, realized, you are we As discussing the

We have will position initiatives successful that for identified rebound. believe and execution strong on opportunities Wish these a improvement for

until of into the these However, we actions outlined XXXX. today not year-over-year benefits the to positive of half second results expect begin materializing do

in advertising digital retention our improved trends, believe engine. have this our engagement see we user on we ramp to reignite begun Once time, near-term. the user third prior of XX% acquisition decline to a minimal. to to plan investment quarter our we've user existing back digital cut will ad significant as quarter, advertising been new focused With we We and July approximately quarter provide buyer same new base revenue down efficient up some be marketplace while expense to growth At usual our to-date focused conversions our providing on context to total compared not be will slowly maintaining already in pullback management the We to we expect revenue quarterly we the period. XXXX revenue further. XX% down through was compared spending, are approximately revenue was outlook, squarely and execution spend

adjusted XX the As quarter we a expect of million. result, range EBITDA in third million XX to loss

to sharply on and look user XXXX the execution second and half of are retention. beyond, we ahead As we focused

with approach returning management of with to We improving maintain cash a position navigate fourth progress plan a have of cash basis, solid beginning to towards quarter a we adjusted XXXX. a sequential goal EBITDA growth. to on disciplined We turnaround as this to a

company results your we the opportunities want to we up that this can are what have work the to reflective identified open to but we our operate. for we not have Before of reiterate We performance believe call way do around, these questions, clearly for in turn achieve. improvement I

about super outlined shareholders. more am our as create support long-term tried future. I our towards the The way, we our to execution to experience value users for will merchants achieving a optimistic progress greater engaging today vision. and initiatives and our generate strategic we So for Wish’ Along

to the that business. return confident to stronger first work operator, we XXXX. will And are ready are question. hard we With we a that, during growth emerge will as We for

Operator

of [Operator Instructions] of the comes JPMorgan. line Your Anmuth from question Doug first

Neeraj Kookada

Hi, Doug. this on is Neeraj for

couple So of a just questions.

had from So profitable stopped advertising. first be first, if -- that if advertising, would And versus in impact higher reopening become second previously you understand pass can half you even the just the saw XXXX. which through you you wanted of talked cost to of can we

quarter? Thanks. this in has changed how So that dynamic

Peter Szulczewski

question. That's growth will as sustainable good facing potential and company we're addressing our headwinds, long-term consistent more results revenue near-term specific macro generate mentioned, for we're the a and we which impact Look, with about we've Wish. actions, several believe will that

So acquisition where macro and acquisition. less on and conversion CAC, has to new to open, to we time as their investing sales the from increased At on a restrictions time customer and more focus declined, This point CAC believe retention the retention sense which engagement, lot activity less has impact as they in ease the just the home it LTV our buyer time makes and has our reduced perspective, a consumers of includes user spend which quarter same began to at to on this phones, instead costs economies stay-at-home app. retention.

to slowdown buyer our cost this efficient, this user growth. has spend decreased the ad for Retention this So in a is obviously and rise. and and has in marketing continued less results quarter impressions lower and

remarks, other cost ad The we've unexpected. as on So dramatic before. the platform, doubled has XX% on quite that year-over-year, and have CPM I one rise. seen is year-over-year don't basis. even in The that's a CPC mentioned surprising increased a this think platforms.

longer reliable. logistics customer We shipping expected requests the to logistics and any number lower customer much the weren't logistics complaints We reason being evidenced our retention as complaints. not one successful reasons or improve as for became by to service related improving more in

user this decline need strategy. However, retention we other we indicating cost acquiring reduction starting really, customers, retention our in our new of to in improve with that product saw adjusted of areas And increase continued business, quality. then, and we has the acquisition to once

actually continued down So active as XX%, And were as were buyers even MAUs actually compared QX XX% MAUs result factors, year-over-year. to year-over-year trend July a June. down X%, these down and this of into are

a spending that do the on basis address, then, advertising cost of where we And good rise once reinvest So, is strategy growth greater that your case then this question, in has to with trends. past CPM think, even improvements and in XXXX. we much second low on plan user buyers in for notably see not to think a retention unexpected a the But with has the we I engagement the portion But until challenge. been, of advertising, in become in historically, digital that was us.

Operator

Your next the Stephen Suisse. from of line question Ju comes of Credit

TaylorHarris

this Hey, Taylor is for on Stephen.

now a spend where like is on is general. more place increase the one in or seems do LTV you can want CAC not for potentially it ratio to at Peter, selection acquisition. So, selection LTV you But thing to better product to

what apparel your goods that and home about in remarks. you So talked do regard? can you think I in prepared

direction recovery you take? So here a Any could be is color that more would Thanks. appreciated. potential

Peter Szulczewski

Yes.

buyer revenue up is for XX% year-over-year. marketplace core So the actually active

of of want sort delight We're AOV of well. course, many as the add our to continues improve. with customers. that as and signs will possible ultimately that of there So that sort to products as we signs appeal seeing And, are

repeat into behavior. or in expansion they as drive categories, products, So where strategy, a further purchase will products even that branded part is especially of more high-quality more

Operator

question comes of Jason Oppenheimer. Helfstein from of Your next line the

Jason Helfstein

year. you've Thanks laid out a this clearly significant in And the going here. to and is that letter, there's refit appreciate a take

to that be, customers? you it of standalone So that makes the you try own? exit? look a external kind my go Let kind there I to And do kind its and markets think plan two sense you talk are obviously, that almost should But this the made. business about business as of management else logistic Thanks. question then, is, run any you through kind on at to transition. changes you Do maybe serve also, And you've serve of outlined then customers? also Wish already of need what to to guess, just

Peter Szulczewski

Jason. Thanks,

advertising of terms in is specific advertising of our on our majority key the any So markets. markets, focused

sort So our markets, the be futuristic this there's think of spend can invest we ad review plans that the don't workable determine and includes point to sort may anything We that, not continuously time, regions to we time. in exit at we And Europe, North but where America. I find no announce where at have successful. now, right they're of there

So we continue but of no plans the sort to specific situation assess will mind. in

flow. providing time, I But have sort separate it's right just solutions -- cost think logistics sort to think this providing should as now, and merchants. question, to doing really the the logistics Your solutions, sort volume looking nothing in to possible, on out our faster, what second reliable I whether we're with respect as logistics as there, are for spinning how announce much really we're really, a optimize there adoption at business. ultimately, focused whether this we leveraging more best And we savings, figuring of be of for point out we much of

-Wish transactions merchants. service non and do we around this non-Wish logistics Now, a as have pilot for

an want team. ecommerce already distinct and sort have so It's participants leadership too that to But this encouraged any question parts. we changes. on believe, So to probably details. we test around up far. includes signs to And many Like the the of feedback class from company ultimately, very more your from a this think, And Running of early sort I then, different retailers. the in specific actually I world sort expanded we've share several bring moving other of open it to and early has by online was last unique had we're retailers. centered

our talent. sort a making industry the don't other Wish, at have, to find of for necessarily we so, sort But that we CFO than search anything this the with Product attract weeks just we're we've the top moves, with our to four that's really don't last we have going moment. of have announce Officer looking always we're the to CFO Chief made Technical else Chief this think, permanent officer, right and or additions that I in on

Operator

comes of question line America. of the Michael of from next McGovern Your Bank

Michael McGovern

outlined a I model that just the It into little quarter-to-date in could wondering looks like that shareholder to seeing you you if trend dig get the in you're my further bit down know a it decline, And up XX% basis. model year-over-year would a have revenue like second the was still to on I XX% earlier, you to core quarter. said marketplace in letter.

little little kind further you you can bit just like that And into parse just at a with product bit So the with least also Thank of would terms you're a what quarter-to-date? to dig could want users also you seeing, and engagement see into to once what spend? that to you from do trends again, user ad recovery? that in that see of you. ramp need And up digital then,

Peter Szulczewski

quarter-to-date the today. user call will we're sort need best person of think we sort And Jennifer ready the around back is I or answer future. post initiatives I'll update discuss that to product to what growth handle to to probably in handle of or this on trends, ramp of able on who anything the to So up is sort engagement be the trends,

Operator

next Your Khajuria Shweta ISI. question line from of of comes Evercore the

Shweta Khajuria

to if But in. answered before wonder Mike’s I be needs first, I question jump

Okay, decline ad user count. macroeconomic of trends orders users, we're core so lower the in buyers partially your please really by resulting Oliver just buyer A for driven and that just in not driven lower declines by spend, on right. driven question, and results go in again, Yes, And seeing our by platform. marketplace which Thanks ahead. revenue, in All in partially reduction terms and it’s quarter-to-date -Jennifer Mike.

Peter Szulczewski

we update. product just don't I have there. Like, sort anything update to specific post think Yes. And of

platform. post conversion think on of a essentially product function is and the rates I engagement

looking your then, to in look user CAC like driven And that. around engagement trends. Mike, it's at it probably, of question our ratio, sort of leave is LTV. ultimately, part two there. which at numerator just control, increasing One we that the or LTV we're the formula, by conviction centered equation, probably that this of I'll And components within is much So which is which more so so sort last our of

with. trends, what of is just potentially seen we're that factors, we've not initiatives still of And are with that sort we either sort marketing experimenting into to or overcome but positive enough by some to our due external CAC, CAC the although areas So, other sort of reducing potentially preliminary, brand-new were seeing diversifying the increases. very the

Operator

Laura next Your of the comes line question from Capital. of Champine Loop

Laura Champine

for need you invest will of the high marketing Thanks in are in tell before more just Like you'll you right to kind your that time my level, that to up? to step business is the see signposts question what see taking expense? what that need you

Peter Szulczewski

Yes, Laura.

a that's again, great think I question.

So data And the assess. our can those to LTV sort our by we a period. sense and historical again, of take think from sort able even extrapolate I and to actually a on But leveraging of we being to earlier while good payback believe signals. it's, conviction CAC over things pretty have

two LTV of So, a figure actually don't to of the years we type need out user, particular expected a full actually become. would what

think growth major equation, that in acquisition we LTV diversify up ways in of so is to we ways. potentially us the if strategy up numerator, which or discover much very customer sort again, denominator strategy of to I our in the sort can is And us.

top think I to increasing sort of we funnel. sort So, various engagement of do the paths of this, there's ways the discussed

of new entertaining features fun of be and would types sort all this and So experiences.

customer largely product post now retention. driven that drive The that done logistics post of higher improving sort would the improving improvements be purchase, up increase by we've sort the purchase retention. to And experience to be of quality, would the other

to either have or feel where the category we confident be category more market-by-market, right strategy, think, even where it's where sort we're we all headed a potentially, by the of So to to just CAC. we sort metrics, we of -- maybe or and respect have in with place generally, about need right we LTV

Operator

Evercore line ISI. Your from of Khajuria next Shweta question of comes the

Shweta Khajuria

timeline the quarter? talk buyer per in more try that? could are you And around is, color are what and revenue So CFO Let for search? great. kind of you the be Thanks. third seeing What give looking then two please. we you looking That'd about on the question in Could CFO the trends at? me new any please second you're color

Peter Szulczewski

in we current time Shweta. think marketplace buyer? I'm Yes. anything the Thanks question, of the QX. maybe sure disclosing buyer anything or sort this if revenue, disclosed in in terms at per not share were to assuming at there we point in per don't this in this Jennifer, point general -Jennifer of core A are for revenue revenue time. I this time. do have I'm at Oliver is we've

Peter Szulczewski

Okay.

And look, prominent the a question, second of find CFO. so search Struggles for to continue Heidrick we work permanent a your with part to firm and

the of our strong We progress are will end we year. by that leader a encouraged and believe the have finance before

Shweta Khajuria

if thanks. could add Okay, more. And one Peter, then, I please

but You as local your service, letter and you've as in three it's your in talked laid initiative. your areas own shareholder remains, its a other have and or example, an priorities logistics logistics then out also you remarks, logistics priorities, and for in prepared growth with investment whether

you are in it anymore, laid next months, -- Thanks. of internal re-prioritizing the not operations these priority is how in shareholder compare to terms the a six you So three for letter? what out priorities you to when XX your

Peter Szulczewski

question. great Yes, a that's Shweta

to we overall of respect grow to shipped volume. order that percentage local look, and initiatives, continues Wish So store Wish total as local pickup, an for

strong now. XX%. I Italy, model, seeing And in markets markets actually and already like So QX. XX%, Mexico, this was XX% some QX, order And or then, X% of volume. it's up actually it's that's like And Hungary, Portugal, replicate markets in overall the in other Spain's XX% total XX%, of can adoption Netherlands. north in it from I think, a we at and think

not there is. to initiatives, its resources these discontinue So aren't we're many that on look put I think going as

program. over countries. to selective store or partners choose strategic very store partners We're around XX,XXX we in have and being XX We into with onboard this so engage which and

of in some more of of our have terms engage bigger that not cutting consumers really, of these think changing product off. component. we the ahead digital actually from foundationally sort initiatives with how of of aspects us logistics then just really, opportunities perspective. a we're just I that the sort improving so And usage improved the on that, we've really platform, top quality now So

to sort the promising think some shut resources have of sort of going don't to they're So think we but they had, we're I and still do down I any sorts to They but potentially the order resources pillars, that might going of in of be shuffling promising of key think of get amount those would sort initiatives. there's not that especially pursue otherwise in in that these what -- very very of for be we the a long-term, future. driver they will three

optimistic things changed of And be for how future. outlook that around logistics, changed In add potentially best the of transactions we more we these we're we're consumer again, that's down. run, has these about in first areas experiences pilot we that bit, our have little Obviously, potentially and leveraging the to the larger are that this pillars. this sort that resources opportunity hasn't off and we super it but foremost, sort not transactions long and where these not still shutting there we the But the terms we and try opportunities on continuing, but and be Wish, continue Wish or can. get prioritizing platform. still to retailers for of but massive are going more Wish We transacting of around timeline have at or of initiatives a retailers are re-prioritizing any to are there on in some three we again, all think shuffling much centered might overall, because do

Operator

of comes Blackledge the next [Operator of John Instructions] from Your Cowen. line question

Bill Bird

one on I We've heard now e-commerce is question. the for shipping, question. you and challenging. several particularly headwinds and Hi. Could This Bill your helps fulfillment logistics industries talk taking for Thanks And then saw platform retail is and other impact the right environment how those just you environment? about navigate the from have you that from in Thanks. people John. that

Piotr Szulczewski

so Yes. been I Sure. for sort of Look, think everyone. absolutely challenging it's

from logistics ways these do this of going of Two more we think into operations what carriers, better. with to in so one importantly the with even is last Wish doing just and cost sort there, get the do in savings. programs, we're with partners. logistics I to larger integrations been what several has our volume deeper advantage combination just getting our integration, of sort obviously but One with sort of our much savings mile and especially that first able extending just is sort actually A+ savings where cost and in tighter also efforts cost what we're we're even we've our doing mile, into Local, partnering

with into of larger sort volume volume. way will So commercial large have advantage continue continues even to us, even especially integrations really, with and This and up national postal larger services, substantial with but local all really on which of to headwinds. logistics competitive been these tighter be respect and carriers, arms what's been order have I a the think going of last we there pandemic, especially to earlier or that delivery basis. as sort percentage with stores, eat to with the their started the cost mile But think we

that to been have the the there, excited the ways the cost of that transactions advantage sort well. volume items there within to So pilot various optimizations been customers lots we're through extending and there around we And optimization, have and shipping buy is factors of incentivizing three that is doing is headwinds but and as all then we savings, ultimately merchants marketplace about two our starting there, we we're those three efforts in around more platform stores. and that competitive combination with eventually off all sort of have sort mitigated. which have One of

Bill Bird

you. really that to some we should into helpful. or maybe Thank XQ that Great, bright spots were and and super level there particular of categories as drive help That's in stood out forward we the thank the any quarter you. run in struggled then year any as look And were should to growth?

Piotr Szulczewski

Yes. Sure.

categories include electronics, largest of decor, beauty. and accessories, sort typically makeup, fashion, our look, of hobbies, So, gadgets, sort home

I been more what in higher we as most sort add as we of is, sort add part. the an seeing we've think sort products, products, AOV increase we're seeing of branded of consistently quality for

quality much of incentivizes ship we've and faster. this that sort revenue share that new actually Now much, products launched products higher structure

I leaning feel at as filling home those quite products more always products gaps catalog, we're doing been going delight the electronics for we're adding are well, categories. as our looking consumers have inventory will consumers think we so both in looking be of and in branded But those the and to types and our in categories. decor those into long

Operator

comes from the Nick of Your question Jones line of next Citi.

Nick Jones

dollars just of that an Can -- has per as focus XQ rest breaking or on about the you ad the a down? uptick the structurally active temporary, kind I rates is in maybe how then press this trends And year, of are and thanks. as that longer-term? spend, trends about that in more And bigger into efficiency higher feeds and of touch think in we kind how come Is is release? you Thanks. thinking Great, buyer think the on of digital? seeing online ad do you kind you revenue that are there XQ were versus for

Peter Szulczewski

Yes. Hey, Nick.

revenue question. the of is I'll to I this think, the QX sort your for active positioned sort of sort thanks discuss of year. then per sort question So second -- of QX, -- better and buyer the first trends again, Jennifer handle the

sort lower our with and effective a look, of believe marketing terms and is spend just the issues the as that, at we in strong several buyer next have spend a spend for especially will be around LTV we for. digital in and economics retention place new now, much we're sense us by ad address the acquisition of very, over thinking and unit which efficiency to historical driven how about makes very we impact primarily to plan it the of top-line quarters, levels. our like, Right advertising not significantly So where CAC

especially we buyer down, have slow strategic on new new decision user temporarily a to made acquisition. or So

lever, a taking we're our ad so historically next look, cash of expense. to several Wish been course, or digital disciplined and level again, of going XX% thinking the expense very sort approach be sales it's -- of main So, our EBITDA and the kind is management. of quarters, for spend, marketing And to about

especially expect ad spend, be the in ad we first. the lower second half for of July, the begun and QX, to significantly we've For spend reducing starting QX than

terms of spend earlier. level of So $XX we as a improvement be reduced the million sort the maintain the LTV plan to user result, to million mentioned to of adjusted engagement negative And trends range is and EBITDA numerator until as negative expected at equation. ad we to of really in see an $XX this in CAC

past spend users, users, resurrecting on quarters Just We're new a of ad reducing reduced. of sort reminder, next focused will few installs engaging app our we're been and et spend XX% digital with focused approximately likely to has driving significantly our so we quality on cetera. where been and as ad sort do historically, that's existing for we've continue of the

expect see if you et I have spend. of QX to forward, we but an be lowering going further QX, ad And don't of per sequential EBITDA, on Jennifer, cetera? comments know any versus to that's outcome sort in revenue going buyer, improvement active So

Jennifer Oliver

not and for buyers, thanks, QX. revenue Thanks, Peter, sure. did Yes, your active provide we On guidance question. for Nick

revenue that as of to going roughly expect buyer through driven primarily that's Piotr's ad However, shared XX% and we the the again the down through spend. quarter, count, we rest in July. spend opening back lower way of started pulling based we is decline on by further part by July remarks, driven that only lower quarter-to-date ad And

Operator

call. the remarks. to or closing our comments reached any And back end We've will turn Piotr I of for

Peter Szulczewski

not for the like you, increasing will to performance for the our outlook. your we on the just look remind improve questions on and I'd to update taking with these results to user experience We satisfied everyone can we're today. that We're do everyone, know action better. Thank November. all retention. We we enhancing in forward next an call focus providing especially and long-term, our

all. So, thank you

Operator

and Ladies today's concludes participating. conference this you call. gentlemen, for Thank

disconnect. now may You