Overstock.com, Inc. (NASDAQ:OSTK) Q4 2022 Earnings Call Transcript

Dave Nielsen: Sure, Jonathan. Jonathan mentioned earlier in his remarks, in his prepared remarks. The excitement over some of the leveling up we’ve done with our management team and our marketing team in particular, I am really excited about. We brought into industry experts from several areas. And we’re really looking forward to as you think about some of those key growth drivers, increasing our brand association with the home is really critical to getting that message out there and doing it through our brand ambassador program through some of our new television commercials. We’re investing heavily there. That marketing team has yet to lap a year and will do so this year. Takes a little bit of time for them to get up to speed and get a feel for all of the levers and opportunities and where they go with that, but we’re seeing good adoption into our mobile app and with a younger demographic, and we’re excited about that and think that that is going to also pay us dividends as we move throughout this year and continue to drive a mobile first presence.

Jonathan Johnson: Thanks, Dave. On that marketing team, I love what they’ve done with our €œC’mon, Get Comfy€ ad. That said, it’s a really nice resonance. And I think as they rollout more on our kind of brand transition to associate the other stock name with home that will pay dividends in this area too soon.

Steven Forbes: Thank you.

Operator: Thank you. One moment for our next question, comes from the line of Curtis Nagle with Bank of America. Your line is now open.

Curtis Nagle: Great, thanks for the question. Just as a first one, Jonathan you describe this year as a talent you have I guess, what do you think likelihood or you think you can return to revenue growth in the second part of the year or no?

Jonathan Johnson: Answer with your guidance, I think the macro economy is tough, but with the efforts that we’re taking internally, that’s our €“ that’s our expectation is you see assortment continue to grow with larger and larger operative product, more new product as many of our partners, suppliers, get through their old inventory, get invest in new products. It’s going to be an exciting time. So want to be a little squishy, Curtis on my answer to that because we’re €“ it is uncertain time and giving traditional guidance €“ but we’re doing everything we can and we plan to get back to growth in the second half but not going to give guidance say for sure on that, yes.

Curtis Nagle: Okay, fair enough. Just as a follow-up. So I mean, in terms of thinking about marketing spend has been very disciplined. I guess, would there be any willingness to take that up maybe just trying to customer acquisition going in or you know, I guess in the context of, you know, still pretty promotional competitive environment. Maybe that doesn’t make sense. How are you thinking through that?

Jonathan Johnson: Well, we’re thinking through that every day, I mean, it’s kind of top of mind all the time. And you’ll note that on our financial recipe card we’re trying yet. We like marketing spend to be somewhere between 9% and 10% of revenue. We have picked that up. And we will continue to look at that to try and reignite growth while maintaining profitability. But you can see as we kicked it up, even as we manage expenses well, that impacted where we came in with adjusted EBITDA percentage at the end of the year, a little bit outside of our mid single digit growth that we like to have on adjusted EBITDA percent. So we look at it, we’ll continue to look at it. Dave, I know you’re — you and Angela, her team, all the time. Anything else you’ll comment on there.