Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $528 million, a decrease of 34% year-over-year but an increase of 44% compared to Q2 2019 [14][16] - Adjusted EBITDA margin was 3.9%, a decline of 165 basis points from 2021, but within the mid single-digit target range [14][18] - Adjusted diluted earnings per share (EPS) was $0.19, down $0.54 from the previous year, primarily due to lower pretax income and a higher effective tax rate [14][15] - The effective tax rate for Q2 was 26.1%, compared to a tax benefit in the same period last year [15] Business Line Data and Key Metrics Changes - The company transitioned to a 100% home and furnishings retailer, exiting non-home categories, which is expected to enhance brand association with home [12][13] - Active customer base declined to 6.5 million, influenced by weak consumer sentiment and the strategic exit from non-home products [20] - Average order value (AOV) increased by 16% year-over-year to $247, marking a record high for the company [21] Market Data and Key Metrics Changes - Online penetration in the home furnishings category is tracking at 33%, an increase of 900 basis points over 2019 [17][27] - The total addressable market for furniture and home furnishings in the U.S. is estimated at $419 billion, providing opportunities for market share growth [27] Company Strategy and Development Direction - The company aims to increase the breadth and depth of its product assortment to strengthen brand association with home [11][30] - The focus on "Smart Value" is critical, especially in a high inflation environment, to attract and retain customers [32] - The company is leveraging its mobile app to enhance customer engagement and drive sales [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic factors such as inflation and geopolitical volatility affecting consumer sentiment [6][9] - The company remains committed to profitability and has a strong balance sheet, which provides stability in uncertain times [24][49] - Future marketing campaigns will focus on enhancing brand association with home, particularly now that the company is 100% home-focused [67] Other Important Information - The company repurchased approximately $35 million of equity in Q2 2022, totaling $60 million year-to-date [12][24] - The transition to a simpler equity capital structure was completed with the conversion of preferred stock into common stock [12] Q&A Session Summary Question: Sustainability of mid single-digit EBITDA margin amidst declining sales - Management confirmed the ability to manage expenses effectively and maintain mid single-digit EBITDA margins despite revenue declines [52][54] Question: Pricing trends in the industry - Management noted that while competitors are liquidating excess inventory at a loss, Overstock's asset-light model allows for competitive pricing without markdown pressures [58][60] Question: Order growth and marketing efforts - Management acknowledged the order growth metrics and indicated plans to enhance marketing efforts to better associate the brand with home [64][66] Question: Performance of the Club O loyalty program - Management reported that Club O continues to grow year-over-year and is a focus for future enhancements [78] Question: Mobile app performance and sales growth - Management highlighted that the mobile app channel is growing significantly and has the highest repeat rate and AOV, indicating strong customer loyalty [80]

Financial Data and Key Metrics Changes - The company reported significant changes in financial metrics, although specific figures were not provided in the document [1] Business Line Data and Key Metrics Changes - Detailed performance metrics for each business line were not disclosed in the document [1] Market Data and Key Metrics Changes - The document did not include specific market data or key metrics changes [1] Company Strategy and Development Direction and Industry Competition - The company’s strategic direction and competitive landscape were not elaborated upon in the document [1] Management's Comments on Operating Environment and Future Outlook - Management's insights regarding the operating environment and future prospects were not included in the document [1] Other Important Information - The conference was recorded, and participants were informed about the process for asking questions [1] Q&A Session All Questions and Answers Question: How to ask questions during the session? - Participants were instructed to press star one on their telephone to ask questions during the session [1]

Financial Position - Total current assets as of September 30, 2021, were $564,672 thousand, a decrease from $582,740 thousand as of December 31, 2020, reflecting a decline of approximately 3%[17] - Cash and cash equivalents increased to $512,188 thousand from $495,425 thousand, representing a growth of about 3%[17] - Total assets reached $1,064,917 thousand, up from $830,214 thousand, indicating an increase of approximately 28%[17] - Total liabilities decreased to $355,803 thousand from $393,888 thousand, a reduction of about 10%[17] - Stockholders' equity rose significantly to $709,114 thousand from $436,326 thousand, marking an increase of approximately 63%[20] - The company reported an accumulated deficit of $(168,803) thousand, improved from $(525,233) thousand, indicating a reduction in losses[20] - The company has a deferred tax asset of $37,955 thousand, up from $37 thousand, showing a significant increase[17] - The company’s equity securities measured at fair value increased to $330,196 thousand from $1,412 thousand, a substantial rise[17] - Total stockholders' equity increased to $709.1 million as of September 30, 2021, up from $419.3 million at the end of the same period in 2020[31] - The balance of total equity attributable to stockholders of Overstock.com, Inc. was $709.1 million at the end of the period, reflecting strong financial health[31] Revenue and Profitability - Net revenue for the three months ended September 30, 2021, was $689.39 million, a decrease of 3.9% from $717.70 million in the same period of 2020[24] - Gross profit for the nine months ended September 30, 2021, was $485.06 million, compared to $420.83 million for the same period in 2020, representing a 15.3% increase[24] - Operating income for the three months ended September 30, 2021, was $28.85 million, down 26% from $38.86 million in the same period of 2020[24] - Consolidated net income attributable to stockholders for the three months ended September 30, 2021, was $30.43 million, an increase of 30.5% from $23.39 million in the same period of 2020[24] - Basic net income per share for continuing operations was $0.64 for the three months ended September 30, 2021, compared to $0.81 for the same period in 2020[24] - Comprehensive income for the three months ended September 30, 2021, was $30.43 million, compared to $21.23 million for the same period in 2020, marking a 43.3% increase[26] - Consolidated net income for the nine months ended September 30, 2021, was $356.1 million, a significant increase from $36.0 million in the same period of 2020[33] - The company reported a net loss from discontinued operations of $0 for the three months ended September 30, 2021, compared to a loss of $16.68 million in the same period of 2020[24] Expenses and Cash Flow - Total operating expenses for the nine months ended September 30, 2021, were $393.11 million, up from $346.48 million in the same period of 2020, reflecting a 13.4% increase[24] - The company reported a net cash provided by operating activities of $82.96 million for the nine months ended September 30, 2021, compared to $198.71 million for the same period in 2020[33] - The company experienced a net cash used in investing activities of $81.76 million for the nine months ended September 30, 2021, compared to $15.43 million in the same period of 2020[35] - Cash payments included in operating cash flows from lease arrangements were $5,007,000 for the nine months ended September 30, 2021[75] - Cash provided by operating activities for the nine months ended September 30, 2021, was $100.1 million, a decrease from $221.8 million in the same period of 2020[161] Stock and Shareholder Information - The weighted average shares of common stock outstanding increased to 43.01 million for the three months ended September 30, 2021, from 42.76 million in the same period of 2020[29] - The total number of Series A-1 preferred shares issued and outstanding remained at 4,204 for the three months ended September 30, 2021[29] - The Series A-1 preferred stockholders are entitled to an annual cash dividend of $0.16 per share, with no arrearages in cumulative preferred dividends[92] - The company announced a stock repurchase program on August 17, 2021, with an aggregate repurchase price not to exceed $100 million through December 31, 2023[96] - The maximum number of shares that can be issued under the 2021 ESPP is 3,000,000 shares, with $234,000 recognized in share-based compensation expense for the three and nine months ended September 30, 2021[105] Business Operations and Strategy - Overstock.com is focused on expanding its market presence and enhancing its technology offerings to drive future growth[12] - The company operates primarily in the retail segment, with substantial revenue generated from e-commerce product sales in the United States[119] - Current business strategies include improving product findability and expanding market share in Canada and government sectors[124] - The company aims to enhance customer experience through improved search and navigation on its website[124] - The company’s supply chain allows for direct shipping to customers from suppliers or warehouses, supporting its e-commerce operations[122] Market Risks and Legal Matters - The company is cooperating with SEC investigations and has provided all requested documents related to various subpoenas[83] - The company intends to vigorously defend against multiple class action lawsuits filed against it, with no estimates of possible losses available at this time[84][85] - The company is exposed to market risks including interest rate changes and foreign currency fluctuations, but most sales and operating expenses are denominated in U.S. dollars[172] - The company faces risks related to the ongoing COVID-19 pandemic, including potential impacts on technology, security, and employee productivity[187] - The company is subject to various laws and regulations that may increase expenses and impede growth, particularly as it expands its retail business outside the U.S.[170] Deferred and Unearned Revenue - Unearned revenue at September 30, 2021, was $65.206 million, a decrease from $72.165 million at December 31, 2020, with a deferral of revenue of $55.938 million during the period[108] - Breakage income related to Club O Reward dollars was $2.5 million for the three months ended September 30, 2021, compared to $1.6 million for the same period in 2020[108]