Overstock.com, Inc.

Ladies and gentlemen, thank you for standing by. And welcome to the Q3 2020 Overstock.com earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Ms. Alexis Callahan. Thank you. Please go ahead, ma'am.

Thank you, operator. Good morning, and welcome to our third quarter 2020 earnings conference call. Joining me today are Jonathan Johnson, CEO of Overstock and President of Medici Ventures, and Adrian Lee, CFO of Overstock. Dave Nielsen, President of Overstock Retail, and Somnur Salahi, CEO of T-Zero, will be available for Q&A. Please note that we are conducting today's call remotely. Let me remind you that the following discussion and our responses to your questions reflect management's views as of today, October 29, 2020, and may include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in our Form 10-Q for Q2 2020, subsequent filings with the SEC, and in our press release filed this morning. Please review the forward-looking statements disclosure on slide two of today's presentation. During this call, we'll discuss certain non-GAAP financial measures. The slides accompanying this webcast and our filings with the SEC, each posted on our Investor Relations website, contain additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable GAAP measures. Please note that today's presentation is available for download on our Investor Relations website, and our summary slide contains instructions for asking questions during our Q&A session. With that, let me turn the call over to you, Jonathan.

Thank you, Alexis, and good morning to all. I am excited to be sharing our third quarter results and providing updates on our business. I'll follow the agenda on slide three. Next slide, please. Because many of you are new to Overstock, I'm going to start with an overview of who we are. We are a leading and innovative e-commerce company. We view ourselves as a tech company at our core, one that embeds automation in our processes and works to remove middlemen. We were founded as an online liquidator in the late 90s, then morphed into a general merchandiser, and today are a home furnishings-focused online retailer. A lot has changed at Overstock over the last 14 months. We've significantly upgraded our leadership team. We've defined who we are and identified what we do well. We've carved out a strategic niche where we want to play. And we've introduced more and more discipline and focus into the organization. All that work is paying off. The operational improvements we've made have allowed us to take advantage of recent sector tailwinds. We've made good progress but we still have plenty of work to do. We're just getting started. I've never felt as confident about our ability to achieve what I said we would, sustainable, profitable growth. In fact, I'm so confident I will add something to that goal. From now on, our mantra is sustainable, profitable market share growth. Slide five, please. We continue to strategically strengthen the Overstock team. On October 4th, we added a seventh director to our board. A past chief marketing officer at Walmart and TripAdvisor, Barbara Messing is the chief marketing officer at Roblox, a user-generated online gaming platform. Barbara has over two decades of experience in retail and e-commerce, and is known for implementing data-driven innovations and leading profitable growth in companies just like ours. Barbara is a fantastic fit for Overstock and a highly strategic addition to our board, which now has six independent directors. She will represent our shareholders well and is already adding value. We're currently looking to hire a new chief marketing officer. a real area of opportunity for us. With our current growth and momentum, I'm confident we will continue to bring on top talent. Slide six, please. On September 21st, T-Zero added a fifth board, a fifth member to its board. John Jacobs is a former senior executive at NASDAQ and the executive director of Georgetown University's Center for Financial Markets and Policy. He's a great addition to the board who can help T-Zero grow its business. Slide seven, please. I'll give a quick update on COVID and its persisting impact on our organization. We are still working remote first with almost the entire team working from home. We are being productive. We've been able to take advantage of top talent in the market including in technology and analytics, particularly from industries disrupted by the pandemic. COVID has presented both opportunities and challenges. In many ways, Overstock is ideally suited to operate in the current environment. We've maintained our momentum in the third quarter with retail sales up 111%, and new customers up 141% year over year. Our core products, home furnishings, remain in high demand, and our distributed partner supplier and dropship model enable us to be nimble and efficient. Sustained demand has not come without its own set of challenges. We've made a good recovery in areas where we initially felt COVID strain, such as customer care, fulfillment, and inventory levels. We're not fully back to pre-COVID levels, but we are making steady progress. Carrier capacity constraints, which is an industry-wide issue, continue to cause delays in delivery, something I'll discuss later in today's presentation. And given that we expect many will be staying home for the holidays, we're anticipating and already preparing for an early holiday shopping season. Slide eight, please. Now, a quick corporate update. We opportunistically raised capital in August. We upsized the original offering due to an increased demand. The bankers fully executed their over allotment options. In the end, we issued 2.4 million shares at $84.50 a share for net proceeds of just under $200 million. We will use these proceeds to support our continued growth trajectory. On the regulatory front, there is nothing of substance to report. We continue to cooperate fully and engage with regulators. Intellectual property remains important to us. We are on the cutting edge of technology and we are making sure our technology is appropriately protected. One year ago, I reported on our patent portfolio, so I do so again today. We continue to be active on the patent front. Organization-wide, our patent activity is progressing and is up relative to last year. You can see that our patents are moving through the process. Slide nine, please. I'll now have our CFO, Adrienne Lee, review our third quarter financial results. Adrienne?