Enjoy Technology, Inc.

or unmute yourself by pressing star six. Hello, and thank you for joining ENJOY's fourth quarter and full year 2021 financial results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. I will now turn the call over to Heather Davis, ENJOY's Vice President of Investor Relations.

Welcome to Enjoy's second earnings call as a publicly traded company. Today, we will be discussing our fourth quarter and full year 2021 results, as well as our outlook for 2022. Today's call will include remarks from ENJOY's Chief Executive Officer, Ron Johnson, and ENJOY's Chief Financial Officer, Fareed Khan. In addition, Melissa Bates, ENJOY's Chief Growth Officer, will join us later for the question and answer session. Please note that our CEO letter to shareholders can be found on investors.enjoy.com. During the call, we will use non-GAAP financial measures and performance metrics. You should refer to the information contained in the company's fourth quarter and full year 21 CEO letter for definitional information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures. We will also make forward-looking statements, including projections and estimates of future events business or industry trends, or business or financial results, which are subject to risks and uncertainties. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our filings with the Securities and Exchange Commission, which contain important factors that could cause actual results to differ materially from the forward-looking statements. These documents can be found on our website at investors.enjoy.com. We do not undertake any duty to update any forward-looking statements. And with that, I'll turn the call over to Ron.

hello and thank you for joining us today your microphone we are excited to provide you with an update on our fourth quarter and full year 2021 financial results discuss the operating environment we have been navigating and provide perspective on the year ahead i will begin my remarks with a quick update an overview of our fourth quarter 2021 performance and provide some context to how we are doing so far in the first quarter of 2022 Then Fareed will provide additional details regarding our 2021 financial results, and we will finish with questions and answers. During the fourth quarter, we were challenged by supply constraints, particularly for the newest Apple products launched at the end of the third quarter, as we mentioned during our last call. Unfortunately, supply constraints remained throughout the quarter, and this had the expected effect on our financial performance. Fourth quarter global revenue came in at $22 million, an increase of 23% year-over-year. Revenues were at the lower end of our guidance range, which assumed no material improvement in product availability. We also expected that the inventory pressures would be transitory, and are pleased it appears that the inventory access has improved during the current quarter. In the fourth quarter, we made the strategic decision to invest in mobile store capacity, which impacted profitability negatively. However, we believe this investment in capacity will allow us to grow revenue during the year ahead. Therefore, we will not belabor the fourth quarter results, but rather spend time focusing on the strategic progress we made in 2021 that has us so excited about the growth opportunities we anticipate for 2022 and beyond. With inventory currently headed in the right direction, exciting new capabilities ramping up, and our partners potentially opening up new opportunities for Enjoy, we are excited for 2022. We are also happy to report that we launched strategic initiatives, including technology changes, which should mitigate future inventory challenges similar to what we experienced during the fourth quarter. Most importantly, we expect to have the ability to take future orders without possessing inventory in time for the fall 2022 new product introductions. Looking back, it would have been an advantage to have this capability in place given the challenges in Q4. But as a category pioneer, we continue to learn and gather insights from the challenges we face to improve our execution. Before I talk about our accomplishments in 2021 and outlook for 2022, for those new to the ENJOY story, let me briefly outline our vision for ENJOY and how we got to where we are today. ENJOY started with a very simple question. What if the best of the store could come to you? Since fewer people are going to stores, and we expect this trend to continue, the world's best companies have to figure out how to take the store to the customer. Premium brands depend on deep customer engagement. As customers upgrade their devices every two or three years, companies will want to take advantage of this moment to share what's new. We believe that home is the next frontier for commerce, and we have built a great head start in helping our partners win at home with our Commerce at Home platform. Over the last eight years, we have steadily and purposefully built out our Commerce at Home platform to create what we see as a new gold standard for customer service to help our partners win at home. Today, we have access to over 200 million customers in the United States, United Kingdom, and Canada, serving over 50% of the combined population. These efforts led us to where we are today, a public company that we believe is poised to scale and expected to experience rapid growth in revenue and profitability. Today enjoys entire portfolio of at-home retail experiences, is powered by our smart last mile a comprehensive platform combining local inventory management full-time employees and proprietary technology that provides our partners with a single omni-channel last mile go-to-market solution we expect that this product platform can deliver products quickly and efficiently to the door or through the door with trusted home experiences that drive incremental revenue and outstanding customer satisfaction. We see ourselves as an integral part of our partner's last mile, doing all that we can so the partner can win at home. Our platform provides a unified solution that is tech-driven and customer-centric, eliminating the need for partners to integrate with other providers or cobble together functionalities from multiple sources. The last mile is hard. And we are fast. The majority of visits we deliver are same day or next day because we have forward deployed inventory in our mobile stores, which can be minutes away from the customer. Our highly trained experts set up and activate devices and can take trade-ins, providing value on the spot. But we don't stop there. Ready with a vehicle filled with the right merchandise, our experts offer hardware, software, and subscription services on the spot, saving customers a trip to the store. Importantly, we believe we provide the deep engagement our partners desire. Our lifetime net promoter score of 88 validates the value of this experience to shoppers. We think we have a unique ability to deliver what customers desire most when they shop, convenience, speed, and a personalized experience, which positions enjoy to become a coveted and comprehensive last-mile provider beloved by both our partners and customers worldwide. Thanks to our comprehensive platform and significant enhancements underway, We believe we are better positioned than ever to make sure our partners win at home. Let's look at 21. 21 was an eventful year for Enjoy. I couldn't be more proud of the team and want to personally thank each Enjoy team member for their incredible contributions and creativity during a very challenging period. Our team's perseverance through a daunting healthcare crisis has been profound. and is deeply appreciated. During October 2021, we completed our business combination with Marquee Reign Acquisition Corp and debuted on the NASDAQ, raising additional capital to accelerate our growth and launching Joy on our journey as a public company. Over the course of 2021, we increased the number of mobile stores we operate and developed robust programs to recruit, train, and retain the best experts. Despite a challenging labor market, we exceeded our hiring goals, and we believe that we successfully attracted amazing talent to our teams. We remain committed to our policy of hiring employees rather than independent contractors, and we successfully expanded our mobile store capacity during the year, ending with a global consolidated average of 859 mobile stores in December. We expanded and deepened our relationships with partners in 2021. We substantially expanded our partnership with Apple and expect to continue to do so in 2022. And we have plans with our telco partners that we expect will more than double the number of customers served during the year ahead. A strategic new capability we added during 2021 was the ability to deliver products to the door in addition to our through-the-door experiences. This offering will significantly deepen our relationships with partners as we provide quick and efficient deliveries to their customers. Best of all, we gain operating leverage by utilizing our existing infrastructure of our Enjoy Houses and mobile stores. We believe our proprietary platform technology is the key to continue to expand our value propositions for partners and customers. We added new capabilities in 2021. One of the most profound new technology capabilities was Live Catalog, a smart merchandising tool which enables us to bring the best of the store directly to customers. Live Catalog allows customers to have visibility into all products in our mobile store and the local Enjoy House to purchase on the spot, which we believe meaningfully increases Enjoy's revenue per visit. We have a number of enhancements to Live Catalog that will roll out during 2022. We see 2022 as shaping up to be a great year. Our focus this year is on scaling our business with existing partners, leveraging the Smart Last Mile, structurally improving our inventory position, and achieving mobile store profitability through leveraging our proprietary technology. We expect to deepen our relationships with each of our partners as our partners have expansion plans in place for ENJOY. In North America, these include geographic expansion and new channels to serve. During the second and third quarters, we plan to expand to an additional 40 markets in North America allowing us to reach nearly 100 markets in the U.S. alone. Additionally, we have been asked to serve additional channels by our North American partners, which we expect more than double the number of customers we are currently able to reach today on their behalf. We look forward to sharing more about these initiatives on a future call. The second focus area is our Smart Last Mile platform, which we launched during the fourth quarter of 2021. We believe speed is essential to online shopping and will continue to accelerate in importance in the years ahead. Our partners want to be fast because speed drives online conversion, and super-fast speed requires local forward-deployed inventory. We believe we are becoming an extension of our partners' supply chains as our Enjoy Houses, in combination with our partners' regional warehouses, Optimize inventory management and deliver speed. During the year ahead, we expect to manage a higher percentage of our partners' inventory as products are shipped directly to us, increasing speed and reducing costs for our partners. But that's not all. We have a multifaceted strategy to improve inventory. By doing deliveries in addition to experiences, partners send us more inventory. We also will serve a higher share of the partners' new customers in the year ahead, which partners use the most wanted inventory to secure. Finally, we're implementing technology allowing us to take orders before we have secured inventory for future visits. We expect this to be operational around the third quarter of this year in time for the fall season. Finally, we believe we have a path to mobile store profitability. During the previous eight years, we believe we have built infrastructure in Joy Houses and mobile stores to deliver mobile retail at scale. Mobile store profitability is a function of the number of visits and revenue per visits. This year, as we drive more volume through this infrastructure, we believe we will be well positioned to achieve mobile store profitability. As Farid will discuss in more detail, we see accelerating year-over-year growth as each quarter progresses and have a clear line of sight to achieving full-year revenues between $160 million and $200 million. We are providing a broad range because it's early in the year, and we are still learning about the potential in new opportunities. We also expect to see expanding mobile store margins and profitability as we build scale. With that, I'll turn it over to Farid to provide more color on our 2021 financial results and our current outlook for 2022.