Overstock.com, Inc.

and thank you for standing by. Welcome to the Q2 2021 Overstock.com earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. At that time, if you have a question, you will need to press star 1 on your telephone. If anyone should require assistance during the conference, please press star 0. Please be advised that today's conference is being recorded. I will now let the hand the conference over to your speaker today, Alexis Callahan, head of IR. Please go ahead.

Thank you, operator. Good morning, and welcome to Overstock's second quarter 2021 earnings conference call. Joining me today are Jonathan Johnson, CEO, and Adrian Lee, CFO. Dave Nielsen, president of Overstock, will also 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, July 29th, 2021, and may include forward-looking statements. Actual results may differ materially from such statements. Additional information about factors that could potentially impact our financial results is included in our Form 10-Q for the first quarter, 2021, in 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. This presentation is available for download on our investor relations website. And our summary slide contains instructions for asking questions during our Q&A session. And with that, let me turn the call over to you, Jonathan.

Thank you, Alexis, and good morning to everyone. I'm pleased to report that Overstock delivered both growth and profitability in the second quarter, a significant achievement for the company. We beat the year-over-year comp growing revenue 4% against a robust comparable period in our first full quarter lapping the start of the pandemic. We did this by continuing to make foundational operational improvements to our business, executing against a disciplined strategy, and focusing intensely on the things that drive results. During today's call, we'll follow the agenda on slide three. Next slide, please. Nearly two years ago when I took the helm, the business was unfocused. It was less disciplined. It was trying to do too many and often competing projects, and it was experiencing an identity crisis. The e-commerce business wasn't being appropriately tended to as we were spending a lot of time and energy on the blockchain portfolios. I recognized that we were at a real moment for Overstock and we had an opportunity to step back, assess the business, assess our strengths and weaknesses and evaluate the competitive landscape and how it had evolved. The senior team and I made several important strategic decisions that led us to where we are today. First, we decided to focus on our e-commerce business. Second, we decided to lean into our home furnishings categories and decades of expertise there. And third, we decided to outsource the management of the blockchain assets to a capable venture capital firm, enabling all parties to do what they do best. So here we are by design. We're intentionally operating in a large and growing furniture and home furnishings market. That market has increasingly moved online and is supported by favorable long-term macroeconomic trends. The pandemic accelerated this seismic and I think permanent shift in buying home furnishings online. Many current and forecasted economic trends bode well for the future long-term growth and sustained strength of the overall category. The great reshuffling of the American workforce persists. Flexible work, which means people working at home, is here to stay. As a result, people are moving. Houses are being bought and sold at a record pace, aided in part by low mortgage rates, healthy employment levels, and a record high savings rate. And consumers have money to spend. As we think about where that money will be spent, Some have questioned whether trade-off decisions need to be made, whether to spend on experiences or whether to spend on goods. Given the health of the economy and the consumer wallet, we believe sooner than later the answer is an and, not an or. Consumers can do both. They can go on vacation in what may be a post-pandemic environment, and they They can buy that outdoor patio set for their backyard they've been eyeing. And as families and friends begin to gather again, get ready to host the holidays by buying a new dining room set. Yes, there may be a short-term shift, as many act on a pent-up need to get out of their house on vacation. But we believe, and time will tell, that the online home furnishing space, the space we are purposefully in, will continue to grow long-term, and the macroeconomic trends look like they support this, too. Slide five, please. Next, a brief corporate update. There are a couple of major accounting items in the second quarter worth mentioning. First, we released a tax valuation of allowance of $47 million in the quarter. This release was driven by recent actual performance and future expected financial profitability. This is a big deal, indicative of the underlying strength of our business and the new level at which we are operating. Second, in conjunction with the closing of our transaction with Pellion Venture Partners, we deconsolidated the Medici Venture assets from our financial statements and recorded a net $228 million gain when adjusting those assets to fair value. The gain is recorded in discontinued operations, but going forward, quarterly activity of the Medici Ventures Fund will be recorded as part of continuing operations. We're pleased to have that transaction closed and to have Pelley on managing and directing those businesses. I'm also extremely proud that Overstock was named to Parity.org's Best Companies for Women to Advance list for 2021. This is a real honor. The companies on the list are shining examples of businesses that walk the walk and are helping to create equal representation in the workplace. Over the past year, Overstock has increased the diversity of our management team and board. I'll now hand it over to one of those great new female executives as Adrian Lee will review our solid second quarter financial results.