Rover (ROVR)

Brinlea Johnson Investor Relations, Managing Director at The Blueshirt Group
Aaron Easterly Chief Executive Officer, Director, Co-founder
Brent Turner Chief Operating Officer
Tracy Knox Chief Financial Officer
Maria Ripps Canaccord
Andrew Boone JMP Securities
Ralph Schackart William Blair
Lamont Williams Stifel
Robert Mollins Gordon Haskett
Call transcript
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Good day and thank you for standing by. Welcome to the Rover third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. to Blueshirt conference Group. like Johnson to now The of would hand over the Brinlea I Thank you. ahead. go Please

Brinlea Johnson

Good afternoon. is we Thank third you the at our for joining us investors.Rover.com. today issued our earnings the announced after In Investor press discussing website release quarter close to results. this on be call, which will market results in available XXXX discuss Rover's Relations

Officer be our available this on Rover. call is replay call. recorded is Investor from Relations COO Officer Executive of reminder, live being this website Easterly, Co-Founder, a Aaron Relations As and the our Brent and webcast will for from after Financial afternoon Website Turner, is and Knox, being Tracy Chief and call shortly this me With Chief

except be the well update remind and regarding future or statements. with statements described undertake Form reflect views required apply risks September specific no by statements filed our filed These as performance to statements management as you like to we to no update opportunity. reflect Rover, SEC with begin, or make apply to as will would law. as XXXX its our subject in on forward-looking and current are that particular, statements obligation files of our as that these in industry those today financial Before Rover's future I forward-looking to Rover risk the in in are today on financial circumstances, quarter. I call XX, events and subsequent related events that everyone that statement factors and and the about to this those encourage these SEC as market guidance, and such uncertainties market our obligation in statements undertake of XXXX we these information expectations forward-looking to from that expressed materially cause to and risks actual third the section These differ XX-Q could We review the platform results strongly and Form-SX uncertainties, on implied forward-looking and forward-looking to conditions certain

You performance. our statements not forward-looking reliance future guarantees are place not of should as undue on they

course superior call, We as posted during Easterly, of information EBITDA, financial Aaron These for substitute today unaudited which a about we Relations non-GAAP measures GAAP press financial or get Finally, measure reconciliation GAAP on release financial call market the today's the measures. will started. provided non-GAAP And issued we that, of with a section and website. of to our to non-GAAP present be not CEO. to provided measures will non-GAAP investor the over and the a in GAAP measures. after historical adjusted considered the should and turn is I Co-founder closed let's

Aaron Easterly

And everyone July a company Rover's thank SPAC Thank the close on in XXXX. following earnings about you transaction for participating public the Nebula you Caravel first quarterly with Brinlea. call XX, as of

goal as company proud we this began on on have We to we have that August Rover X, a destined always and of was NASDAQ are XXXX. be trading the truly to public accomplished believed

for We take world's advantage to sheet pet cash have $XXX million largest balance opportunity our a to be in and are trusted of strong with well-positioned the marketplace care.

trusted, to yard. the primary A and progress new on to it can about logistics this addition and more the want I more you of Turner, exist increasing those turn pet solve people caring high have a ownership. our believe pet unconditional is that of concerns on market, details work the lot. the inception. and if opt that and logistics hours. marketing good to the long provide pet is rapidly for enough. addressable Rover just to over Then people telling our for pet I care, pXlace pet travel understanding we I about Rover Rover For joy bookings, a operations. I the you that We will happiness. has to move may with by our starting Brent I will to story, COO, quarter. is don't make to our care more am cover And story we a to deserves to one with affordable, the love the it that ownership. These At convenient experiencing our into mission. in since grown barrier quality, ownership. not Rover, to believe I we a a possible. everyone start home of pet make we needle of Concerns are human experience impediments

period During to annual at grew a growth compounded we XXXX rate. XX% GBV the of XXXX,

Typically, were on We booking side service the strong three marketplace. had the million book care one paid any repeat XXX,XXX the side supply of have demand customers mainly earn perhaps approximately XX% of from of category business XX% expansion. about most over the two to booking. But marketing on households the short, things on providers our interesting perspective is our is business driven by given and our repeat is mostly month back that The one and made quarters. by to is

the pet every customization pet, being, Rover Our in care. about standardizing is human mass like opposite. different. is is business Every pet not care. about enabling It's

the those makes allows can too on. today's customize separation to that care If for and can on they that's to home is what ability that someone dog to, mass dog If that's on caters is sleep pet generally unavailable a the Rover. a marketplace is looking someone's find Rover commercial options. on for sitter that their find used Our has bed provider to unique because what looking needs. full they because time dog This Rover. a anxiety,

environment geographies, of overnight that daytime all receiving their not Modern brackets stress are home, want and pets just XX% safe feel and reassurance but care pets they our an requested. excellent is that and business enable span both that. at specific care feels of feels consists want services. Overall, contentment where the services. business their in income parents helps free. Technology overnight They Our about which pet ages, our and

app enables share entered walks, activities and care completed exited home the highlighting they and gives people dog video Our the updates stay. of to photo during maps when know and providers let

the income doing and material people side lovers for shortage of they U. something want animal On is and in that the no empowerment supply marketplace, income. pet already life matter. most that pets providers make Rover have There the by countries, augment their to of the in S. in love. meaningfully to and allows flexibility their side

care pet results the into XX% are five-stars. the marketplace bookings pet are providers of together So we bring and phenomenal. parents reviewed with

family. pet services the their operate U. XX% The for that In and becoming care households with to going alone. town. business, pay we for are spending Before is We deeper commercial for is of of family of their about and animal desire a billion abhor animals boarding with worth when And in is facility. the about $XX the how leave to service market talking that and pets relationship a This care they experience in akin estimate more minutes industry. consider regular pets. parents attention pet two-thirds is it's people owning part care universal S. pet industry that that the opportunity relationship. S. becoming of the of animals. about we couple the can U. human reason pet U.S., idea a pet XX% their the taking many Increasingly, consistent parents Currently, only have the the households in-home of

friends, that perpetually So faster the the investment over remains their This in perspective pet norm. the that services and tech when economy industry away grows from shadow is many of fragmented today. that beginning. excess, This is and with.com categories than family existing in other the existing pet economy a technology market, parents industry the less commercial in the years. saw penetrated real home. humanization opportunity from at was is also Because perform market Rover people market But is offline. prioritize incredibly causing even The some can a cases neighbors their largely the and in XX% tied pets opportunity often pet up associated to we is care needs from own. becoming the take pet industry drives players. for care The pet share commercial lagged are the

for the a fragmentation many is infrastructure. many for integration of bear. and it happened services use pet data our something to create technology This to is the to services the of providers. business the impossible indeed not Rover has financial given incentive advantage. into industry, advantage about technology. book We of bringing nearly is business. do a in not competitive Rover the power online of invest service Full the traditional Additionally, It unique is have gives players technology to Rover

happen when job to repeat our as volume marketplace pf function participants repeats we going prompt have marketplace for the come ones we to we care continue customers bookings the their third which earnings we all to collected and of business, and bookings That Which who brings then responsive, but is, the ones data, collect more experiences. creates matches, better, our we about data. more providing managing better level, that understand we This are with calendars, up powerful and a effect. which pet business it better people better matches think We bookings needs through for and platform, matches that, good important our customers. one network collect which make to can groups. purposes the make and on at on do to many the understanding pet also and cycle our matches effective are quarter results. way are a our ideal the data the tremendous me make of the for used and a meeting data With of go better more better parents. get is different And most continues collect most as the we providers scale. Rover is ones Rover, the to we data which get With At amount high

rates lift, vaccination seeing increase travel North in Europe. are As America we strength encouraging restrictions by recovery in followed and

up GBV QX comparisons year-over-year compare COVID will to to our levels. Across QX QX improvement, and growth In terms metric XXXX. our Revenue values. million. adjusted EBITDA. our a While our booking on and results continuing from Despite dramatic of was QX the of of to X.X XXXX. million key XX% in increased strong the notable relative Delta adjusted $XXX $XXX from bookings variant QX well revenue, to business $XX XXXX efforts our million, a from by engineering quarter approximately experience improve as I QX the are what EBITDA all exceeded and driven XX% pre-COVID XX% in Therefore increase $X performance. and average business, of we to up is invested to Revenue metrics, GBV customers' as was million for QX, in XXXX all million, we weigh QX improved bookings XXXX XXXX was shows XXXX in at most platform. product of total

As parents earnings care pet partial care providers, increasing of and tips a gives rolled by stays. for the from given recently overnight pets extended quality providers, providers charge result, to incrementally of to care features tipping go ability the the their recognize days two Extended to during XXX% the allowing requested to the pet provider. most we straight care. out and the their

the rest has in are access the funds. payouts to strike for in next payout invested it the quicker anticipate infrastructure been we for our and completion transitioning match positive we in footprint to to six feedback also to their months. The the We and easier continuing U.S. for of implement very to make by global providers strive

is dog also a they aren't trust this area at people. we of as do, and make that we heart well. investments what Given continue to safety And the in we just

of believe additional We are XX% are customer have to cat increased related We scaling in borders. our Cat people. U.S. help we quickly, In bookings over care opportunity the market acquisition. outside pet organic cat well increasing drive dramatically XXXX. expands the October, content QX the specific

are about strong prospect tailwinds. optimistic Looking multiple ahead, Rover's we with future

offline is of shift online from to because the the marketplace. substantial First, our lead meaningful in

the pet Second, increase in in growth generally. pet and the deeper bonds ownership emotional industry will drive

And believe would next over the we will to hand call travel to pet bookings leisure segment likely noticeably further to decade. market services to And in I believe our is the performance. over and over our provide of time. we now Brent, outgrow COO, operational more happen product Third, the that the detail recovery on physical finally, industry the like

Brent Turner

Thanks Aaron.

XXX,XXX, further a important this like been highlight metrics. setter third to exciting has record of customer normal the acquisitions cost our across trends mirrored compared customers To services are through mix. increased As QX, in up quarter we new customer historical global of new you roughly and across noted, and seeing walk many to XX% acquisition. reality, the these I would to the In distribution XXXX QX acquisitions our

of did roughly we the vaccination new our customers in increase in the grow XXXX, to acquisitions a correlated begin see United While customer we vast in to majority rates. to acquired States, relative the Canada again

While new began in with XXXX, the acceleration Southern customer September during to as flat growth was U.K. see we abate. Europe and lockdowns did in Europe

that monitoring. will in a expect we momentum Europe this and We will are be dynamic continue not we situation sure that

to this from $X efficient efficiency free search XXXX. as acquisition $XX the we organic word acquire new evidence spending. and free We increase customers, cost we durable pandemic compared overall marketing remain as at as to in our we is invest expect of with carefully attribute including, of customer We marketing paid channels, believe listings Our primarily eases. and remain while recovery. our do increase pandemic winds to even expect channels, this the we paid of up tail quite into $XX XXXX new spending committed strength strength both QX to customer only mouth to we continue and in the discipline in that the Further further of acquisition

by in acquisition we new also we While QX, in pleased Rover's repeats. excited are in strength the customer marketplace with performance driving are

in customers quarter QX, single in million first QX over compared the XXXX. one repeat Rover drove from up X% a For to bookings ever, time

effectively customers and frontline while we the to continues up done our and safety with managing drove is While teams, in our our to down this structure few serving made highlights business. primarily customer job an back scale to ratio meeting have the Operations months, cost customer of to experience XXXX, base our the acquisitions to amazing climbs believe trust past has compared new historical our new QX this the which support, topline future scale focused and and of in ratio repeat to XX% customer the momentum QX on of over customers the norms. continued our to XX% has as A in potential bookings center existing to to ratio Washington. return Spokane, We laser anticipate we marketplace recovered stay location and grow San in we demanded a our to Antonio, need existing teams great continue control. cost the plan that recently we Texas to announced these complement to open in contact of

in we We that, these results. to And possible continues about Tracy investments will and make I the will the a providing over operations that more to continue turn scale. financial talk service it areas to are strategic to marketplace to our best ensure the with customer

Tracy Knox

a quarter the by XXXX, otherwise, of third results providing Thanks third pandemic. our begin quarter QX over noted we take for today pricing that to Brent. this period for amount year since customers January I to an providers is We change the Unless with will in due we results XXX,XXX impact our change value X%, active, average increased third the of almost quarter from be rate guidance. the X.X for value booking million, million. of up our XXX.X increase from more strong each increase care implemented $XXX, ABV comparing followed also respectively. new bookings of acquired I to gross overview GBV million to XXXX. financial attribute total by was the a will quarter, was due that Revenue while $XX.X XXXX XX% in global of by XX% revenue. relevant XXXX in to increases of XX% prior the the compared by third Starting booking however up and and with comparable XX% than small The XXX% a a up most

our the actual As a rate GBV it deferred take this timing while are stay holiday a the revenue start upon GBV. is can to and change believe at by deferred timing, difference is is plus the recognized defined recorded time track revenue time booking quarter revenue. which and the reminder, GBV and the service. revenue Depending quarterly recognized helpful day or divided we of result in of for in Therefore, on as revenue

the in cases rate was XX XXXX. in decline cancellation Our Delta slight in variant. to was The to points correlated take basis driven when the XX% recognize uptick COVID the down X.X% to increase XXXX in QX, from compared by XXXX with QX QX rate in XX.X%

to on of $X.X expenses. XX% actually increased customers $X.X Marketing while XX% or were period. the new XX% million, prior quarter to of of million XXXX. or Moving revenue with Cost third expenses our million revenue in $X revenue compared of over down the XX%

As search have strength Brent seen our mouth mentioned, word and we free channels, primarily of listings. marketing in organic

has as leverage in As improved in and to million, revenue cost XX% in $XXX,XXX million $X.X we professional have expenses structure as to our decreased decreased expenses company we decreased while $X.X a after expenses revenue. increase G&A expanded a public XX% compared business at the very related increase result, to to QX of marketing insurance primarily efficient and to increased as early well streamlining or to services remained be $X our the transitioned staffing have expense million product of revenue XXXX. of public due revenue XXXX. an into coverage in needed company. development XX% continued as or expenses XX% support Operations These of

the throughout revenue to million as administrative our related further better activity costs costs. excluding and from increase Additionally, seasonally increased near product a expect expenses three. full stock channels in quarter more marketing QX non-capitalizable the technology to campaigns strong a holiday In testing. of through to our to team to one-time two, Caravel continue compensation to we, merger drive included merger beyond, percentage $X.X slightly and scaled enhance Nebula our term, marketplace funnel invest fully in and support period of one-time one, related and top as we the operating for expenses general utilize of and approximately related and paid our professional services operations

to we as of flat we expect amortization revenue revenue of operate as a in roughly of full public remain software the percentage a company we % cost developed fixed to quarter. leverage and a related relatively of improved expect as a G&A internally Additionally, as revenue for

other expenses during some did on quarter. and non-cash the have unusually Moving income expenses. large We to

with approximately close value July we accounted other the Without the net flows Following of through expenses of and the for compared the transaction non-cash fair million loss value on have resulting of earnout merger. net period loss Caravel fair been million million. Nebula $XX.X million fair of during liabilities This these $XX.X with in change change XX, the associated QX charges, total would in net the the in in $XX.X QX a $X of XXXX. loss a to our value warrant

from Looking earnout The during in through the quarter during Adjusted EBITDA now expense. be first and revenue and/or the with negative income been with the The million. resulted efficiency. forward, strong the improvement continue and equity million, from into $X.X have up liability expense losses adjusted significantly $X.X QX. operational two paired flowing ongoing EBITDA other reclassed was liabilities will remaining liabilities warrant quarter gains each the triggered tranches earnout be of will mark-to-market to

net business equivalents balance our and referred the balance approximately the With paying facilities, $XXX quarter sheet. of cash off we combination we million cash sheet. on of After the earlier, with $XXX all our to million of to our cash debt in ended completion added

guidance. turning to Now

increase to midpoint million. of $XXX EBITDA million of $XX raising $XXX revenue range year and revenue compared quarter to the implies $XX now adjusted $XXX million, midpoint. to $XXX to previous full QX We of revenue XXXX guidance the ranges. fourth are of This million million XX% We the a our at the million in XXXX expect range over

$X now we the and our medium at front to continues million breakeven we the $X uncertainty to the now remarks. we $X healthy pandemic million a implies the EBITDA the of relative the range and rates financial and call expect terms slightly of positive. the bring concludes turn to take in operator of our adjusted term. growth year as back previous $X anticipated cancellation start originally to near summary, trajectory to a are in a longer anticipates fourth in range And In range opportunity to one adjusted has prepared its This of million varied elevated compared about guidance business, EBITDA, slightly us. the In of the persisted will than Overall, questions. very quarter to and million. XXXX. That more had to of result, excited the I


Instructions]. [Operator

Your Ripps first line question from Maria of the comes with Canaccord.

Maria Ripps

the on taking Congrats for strong results question. Great. thanks and my

can demand share seeing around in I are First, markets? your you the is sort of think about Is across in what of also, of there anything reopening mentioned improving. And you country? your internet trends different different you you pace talk is can markets geographies? the across international some Europe

Aaron Easterly


stance recovery see and So both of geographies, U. a markets positive well. the and those within growth rollout all at But general, we that some policy saw outside health acquisition pace markets a in had delay the U. the as In we S. we in caused happened, to has different aggressive Europe seen in the have which more seen re growth of public vaccine kind S. have has customer across rekindling.

Maria Ripps

Got you. just a it. And Thank follow-up. quick

to you talk slightly I XXXX. relative you about elevated think are you trends Can QX anticipate that to QX? you cancellation compared how cancellation that rates thinking about in mentioned just

Tracy Knox

Thanks Sure. Maria.

second XX% the was the just quarter, in and was So around over if recall you in QX, cancellation it XX%. rate

somewhere in so. or the next middle assuming the worsen during those come of expecting doesn't QX rate So the pandemic we that are numbers, cancellation our course, that of will month

Maria Ripps

Thank helpful. That's it. Got you. very

Tracy Knox



Securities. comes question Andrew Boone line from of JMP next Your with the

Andrew Boone

kind Hi questions. question is of guys. my Thanks My for on a taking line. similar

how are of whether go use return work more you to the can overnight anything you back? have as And cases just go bookings then for just talk I Thank As kind offices a Can saying through using we about about kind of XQ, are you. with think service people the today? versus you follow-up.

Aaron Easterly

seen consistent We and walking. dog slight a that We there the maybe t past, with service low as have as relatively seen exception spikes seasonally generally have mix summer typically we we in see Sure. It more not seen tad a mix have seen we of with are general, been use in service have cases In may past lower than overnight. see years have what wildly so. a but travel dog we historically. walking in the terms consistent

Andrew Boone

then It that think push question about pet the guys of on on available, spend? owners again much. now Thanks profitability today? lower. that number of a kind new marketing If are And is with increased today spend in versus marketing that XXXX not $XX little so fantastic and ton Okay. two a reinvesting a clearly marketing. about we a you why And came are Can more like the XQ and aggressive in bit into in up. opportunity just there you talk CAQ why putting

Brent Turner

Brent. the This question. I Andrew. Hi is appreciate

We are in are a often back app more harder easing again. risk read where are it didn't on that to We them the did back those harder down lower of a things and marketing to from from on increasing channels standpoint. a quantify and like the But testing standpoint we get done makes to feel little about we good marketing measurement search and in considered it. pandemic like harder quickly measure, things pull marketing that, parlance, video, funnel. social, affiliates are We spend and

Tracy Knox

we This is the just for Tracy. optimizing adjusted EBITDA that I are would not add number. driving

about We as are be items just line spend trying very into returning well. investment and thoughtful to our marketing other

marketplace. area product drive continuing to ran QX. think the support bit and to I little up in to in a are the we ops So we ramp development improvements light And

And for so will team holiday period a beyond. utilize now and the we fuller have that there

Andrew Boone

so much. you Thank Great.

Aaron Easterly

Yes. jump one would guess and say in about more you. I that. Thank I thing

are economics. level Really, it's considerations a overall constructs unit merely marketing financial about internal performance. the channel not Our


Stanley. Schenk of the comes Your Morgan next Lauren question line from with

Unidentified Analyst

is Meghan much. This Lauren. on so Thank for

contemplates you takes the increased paid an or XQ So from this any as spend seeing talk CAQ marketing. and of impact puts Can whether outlook the increase IDFA? some about well in you in of as marketing are

Brent Turner

the Thanks for question. ahead. Go

Aaron Easterly

Okay. and for marketing. I the IDFA will Brent pass take then over to on it comments question

on We an that. haven't seen much impact of

just I think, that, are be upon the to not super more historically, you heavily that on channels are if those mix our look channels. on at impact dependent marketing likely we

it could of big issue been for a hasn't our strong our question. Brent, forward channel an go you organic more customer mix the be to historically to thing other but and do us So take want due acquisition.

Brent Turner

Right you. Think on.

every are spend. versus follow category deciding to we said strict As fall going pushing more into how into as the acquisition. we will video, as we those the social, better channels creation in we bucket economic But scale things QX, and customer app development on move our begin how previous question, will like our harder get unit we constructs reads and marketing and deciding that in

Tracy Knox

would longer a revenue. XX%. also we a around term, And will we have just percentage of of we as revenue add, be Yes. And said we I it have marketing as model expect percentage

the quarter. it third As XX% in just you see, can was

as percentage a which so to of up will we continue to revenue. spend as top increase will said, marketing And of funnel move Brent that

Unidentified Analyst

Thanks so is Great. they And behaviors question have and acquired differed in more much. new how my second thus cohort? far pre-XXXX from about in may XXXX customers

Aaron Easterly

that the to cohorts or technically months have not very single seeing that I ever. close month acquired say about may record and a generally year And that those be of We best we it's generally it. every because just are this

very So little the bit. excited. that It's we a numbers possible Delta are quite wave also those suppressed

even have been could So they better.

forward customer overall on a based go acquisition the about the great economics to feel and we it So attached basis.

Unidentified Analyst

Great. Thanks so much.


William from Your the next line question of Blair. Schackart with comes Ralph

Ralph Schackart

Thanks afternoon. the Good Hi. taking for question.

love really high your and way sort I drivers? just during to in you I COVID want that or highest of that. could peoples to out guess First thoughts you follow-up. just terms the a And curious of just people was just level pent-up high Just on the of new perspective a out quarter. growth that question, compared have Any give then ownership much bookings the pet get in would strong of parse saw How demand added again? level that

Tracy Knox

two the would I new into to bookings highest Well, categories. a break down

the repeat First, at had bookings have then highest and those we new the we booking well. which as customers ever XXX,XXX was highest actually volume of

and maybe can can And Aaron talk so to customers probably the Brent about and speak customers new actually repeat behavior.

Brent Turner


We strong channels. pet of and increased of this coming of the is our see word the that some an pandemic. the the us expected biggest strong ownership performance indication seen but for to It's of mouth indication demand paid efficiencies out is have organic out pent-up tailwinds of marketing that we with our

so in does it that that direction. And feel skews

Ralph Schackart

Great. as early a and grooming. your just you are follow-up newer such real on it. I And of know it's some just testing services

Just maybe expectations? that's going relative how to your be curious

Brent Turner

the to possibility the think points. And business demand excited pay grooming, on very the being I we been been offering that not has overall have about that. scaling very parents we about the feedback the attached positive. and are side with some profitability excited of the opportunity solve of That pet to said,

in customer So to alternatives the at looking be pain we expect to future. those points solving

Ralph Schackart

Okay. Thank you.


of line the comes White with Your next D.A. question Davidson. Tom from

Unidentified Analyst

for Tom. much. so on is I may. This Two, Thanks [indiscernible], if

provide us of I then one, your But you could to to wondering, see we The seasonality? not kind through if business guidance year? follow-up a have It return yet. to for position any are understand that could a was thinking I curious the more really to in are of like you how probably the what's hoping you think formal I seems And front. on first are walk traditional question. about Just seasonality maybe next XXXX

Brent Turner

say, out. I help just we would

was if humanity nice our XXXX, would a are XXXX With rear put working for lot forward you at plans and in wave with right even just pandemic view look in we mirror. we eventually You of the quarter. regard been the that to to Delta. than be a now thought, updating has better future we

put That the it's Tracy the the so far beyond primarily pandemic, customer and But mentioned, for And be absolute plans had and look than when of longer an very at is and of And said, and our year. we best exciting. XXXX we the pandemic we acquisition we varied that's the at gyrations level. on term been short the past that beginning as thought to more expect great looking our years place strength in been ever. over by us not and

repeat the long if the which those efficiency our at are where by we anything, generally improved performance the of medium looking and are of are we and the they versus And term best the on has customers at are beginning business. new operating ever are We the optimism year. overall which

store. in excited the We are has future just very about what

a the give sense just we have what On a bit historically to little seasonality, of of seen.

high a business. growth have We

in is really summer QX So seasonality. we QX traditionally biggest prior underlying you the not have of been as roughly out kind periods way is that us of step-up to to such for The QX. Travel travel. travel a to in up tied Thanksgiving travel that around point Then seasonal the has QX see year. is untether high flat from see a dynamics. and then peak of Christmas. Most seasonality seasonal with the we growth that key business a the is played our the couple season, has holidays

see step-up then summer and You roughly Day. Memorial and for historically, start And I summer Thanksgiving some maybe even in to is will QX Christmas. that QX. portion step-up another And QX with captures another June a which again to to of travel. flat say large see for We then QX bookings coming

stepping there. from by So lowest QX to we the up would expect far then seasonally be and

Unidentified Analyst

online That leads can Great. growth from we because work that like we in to into people also pandemic, strong of sort of companies heard Thank the trips about due our duration anywhere. longer you. next have by cover travelers some question travel from my

whether wondering platform? So for of risk dynamic mans owners it business? that your creates And what we are and off the any taking transaction providers increased pet

Aaron Easterly

to try and me there. are questions Let these two different part

dynamics is remote with for to regards may that first The working what mean and travel work. and changing

the probably it's are in such work they services values daytime are if say but average go for travel. to for up. more model, booking we going rate values think more the cohorts seen our positive. been average to best And some that's dog be a net think I from overall work overnight And booking risk overall, in the more business home, majority of early take of higher more the With said, general, people think since ever. the think going our too the TAM and dis-intermediation, regards with their leave there performing want That may additional dis-intermediation. that to to being a business generally the But have a probably effect want as is we people house often. but and to could segment, positive walking home that we they our to from vast it's have little we

developments to in and marketplace. degree positive the fact in the the by to So outweighed which other really commuted that's

How dis-intermediation of more value continuing to transact to always do combination through add by has approach we the things. a platform. more and two Our been

Rover have We a guarantee.

We have XX/X a calendar support. with

service more the and offline, tip, make the extended go tools platform. photos example pay a it tipping provider done and mentioned, if added happen. send we try be are, that do platform, if somewhat in And easier it make through going through We for for videos to stay. to can actually less to you the to likely as we awkward and and asking have also maybe Things that results

can in think identify that we been strategy now more we the use as more this to about more have reward business actors generally And and by for been smarter and has mean use I us our data XX-plus data collect to generally get data. smarter time through behavior. we us So as platform. help add years improved good expect second value identify and we to we to behavior. have that and going good to then continue science over cohort great We and science

So time while we risk, dynamic may business in this create booking additional point average that at particularly results. higher values about worried affecting our not are

Unidentified Analyst

Great. much the so taking for questions. Thanks

Aaron Easterly



comes Your Lamont of the with line question Stifel. Williams next from

Lamont Williams

afternoon. Good Hi.

providers. think expecting off? supplier this pricing increase you level And for by services? what ultimately an particular you Are that any in or are will mentioned regions in seeing You continue pricing or you going trend forward? Do

Aaron Easterly

relatively seen cost I would correlated living. with say, we of have generally it

a certain are increase charge of establish where a little There So of people micro-dynamics bit cost up, after living they a lot some to well go more. reputation, as the also tend have great their reviews prices. in providers may as markets

generally a that positive thing. And view so we as

think part the I relative the to but be of to wanted historically well. it competitive ABV we factors is of per traditional have as other price commercial part options. the But night

inflation. in So cost with living basis, on that unit per drift expect line up or of prices, to we a generally

Lamont Williams

on Okay. to the at the saying shrink that recovery? Thank just you then further window. you. kind we of booking Are And expand all come start out as or of or into get

Aaron Easterly

about the if window think that. past right over of generally have we you go a I booking in with norms. days line The relatively is which quarters, back is normalization seen current several our XX historical

saw are levels. people times the terms in quite decisions we pandemic of a to behavior, Is that through, shrink they changing a shrink close historical now. own again the During roll scariest But risk delay bit. norms of sense might get waves additional of people their we that that until making as their

Lamont Williams

you. Thank Great. Okay.


Instructions]. [Operator

with question from comes Gordon next Mollins of Your line Haskett. the Robert

Robert Mollins

are sticking then think lever have take I not XXXX so, bring to you a take the follow-up. do with And you that on And do up pull rates power why you cohort then in have pricing pricing to where have that If cohorts? think XXXX you Aaron, now? today? power incremental rates, the your

Aaron Easterly

operate the the is and in speaking. a family represent competitive bulk Well, I of broadly neighbors we opportunity. kind friends, There market think more of

are on rates. were around do made and produced additional And what always we the that historically thoughtful that positive very value have I our for We take move rate on take we think very investors.

have And back pretty means at the Those continue lot that really that With just if a fast. to regards than smaller immaterial. it's will is go were we now. XXXX, we are what to so they And pre-XXXX, to you that. largely look grown early cohorts cohorts,

a to decide and the of of to of any there. But disruptive rate at change type has could given we our customer So may group do acquisition it's a business change grown. loyal which portion customers a be smaller

two over We million have customers process we you we I think million. a had have three little this used. started million said two when now bit over we back about or know

you rate be number cohort So sense you of of if in room. in if in it the cohort, of days counted enough could it people of back base. kind terms the gives fingers people early in meet accumulative the And of on add you a the go the sometimes monthly

our area not of So it's in of a driving terms focus good value. probably question biggest but incremental

Robert Mollins

rate. Tracy, should that the then, Is that how take included it. about if tipping. the on in think value? gross And And booking impacting so, we Got

Tracy Knox

not. is It

Robert Mollins

It's not, okay.

Tracy Knox

It yes. excluded It's is just it. not. We through, pass a straight

Robert Mollins

you. Thank right. All


of today's That portion call. does Q&A complete the

Now, for back call I over remarks. ill the to closing turn Aaron

Aaron Easterly

business. optimism We the questions coming excited And Well, quarterly thank how increasing. you listening thanks for to is and And quarters. everyone our about strong in we the if our forward for progress on the great anything, earnings. updates for your to again giving look you this tailwinds time. remain in We


today's call. for concludes Thank you This participating. conference

disconnect. now may You