Rover Group, Inc.

and will be available for replay from our Best Relations website shortly after this call. With me on the call this afternoon is Erin Easterly, Chief Executive Officer and Co-Founder, Brent Turner, President and Chief Operating Officer, Tracy Knox, Chief Financial Officer, and Charlie Wickers, VP of Finance at Rover. Before we begin, I'd like to remind everyone that management will make certain forward-looking statements within the safe harbor provisions of the Securities Litigation Reform Act of 1995 on this call, identified by the words expect, believe, will, assume, ongoing, and similar expressions. Forward-looking statements are based on then current expectations, estimates, forecasts, and projections, and the beliefs and assumptions of management and relate to our future financial performance, such as our second quarter 2022 and full year 2022 financial guidance, trends for our gap and non-gap marketing expense as a percentage of revenue, marketing investments and initiatives, bookings upside, financial impacts of our warrant redemption, other future events in industry and market conditions, and forward-looking statements about Rover, its platform, and its domestic and international market opportunity. These forward-looking statements are subject to known and unknown risks and uncertainties and assumptions that could cause actual results or performance to differ materially from those expressed or implied in the forward-looking statement. We strongly encourage you to review this information that Rover files with the SEC regarding specific risks and uncertainties In particular, those that are described in the risk factor section of Rover's Form 10-K filed with the SEC on March 21, 2022, and those that will be disclosed in our first quarter Form 10-Q. These forelooking statements speak only as of today. Rover undertakes no obligation to update these statements to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on our forelooking statements as they are not guarantees of future performance. Finally, during the course of today's call, we will discuss audited and unaudited GAAP and unaudited non-GAAP financial measures. We provide a reconciliation of these non-GAAP measures to the most comparable GAAP measures in the Investor Presentation and Non-GAAP Reconciliation, which is posted under News and Events Presentations on the Investor Relations section of our website. The non-GAAP financial measures provided should not be considered as a substitute for or superior to GAAP financial measures. Unless otherwise noted, we will compare all Q1 2022 metrics to Q1 2021 metrics in this call. And with that, let's get started. I will turn the call over to Aaron Easterly, co-founder and CEO.

Thank you, Brinley, and thank you everyone for joining us today. I will begin by discussing our high-level first quarter 2022 earnings results and some non-financial highlights. Then I will turn it over to Brent to provide you with more details on our bookings and marketing investments. Tracy will then conclude by walking through the financials and our guidance. Overall, I am pleased with our results in the first quarter. Despite the impact from COVID, including the recent Omicron variant, the business slightly exceeded the high end of our guidance range. First quarter revenue of $27.8 million was up 128% year over year. Gross booking value, or GBV, grew 137% to $153.7 million. New bookings were up 76% to $179,000. And adjusted EBITDA was negative $4.8 million, which was a 19-point adjusted EBITDA margin improvement year over year. At Rover, we remained focused on building long-term enterprise value. During the first quarter, we made significant strides in two areas that are important to that goal. First, given the TAM opportunity and our strong unit economics, we would want to expand our market investments, but to do so cost-effectively. This process has been somewhat slower than anticipated due to the ongoing disruption by COVID variants. In Q1, our team made material progress on this front, and going forward, we expect to have a broader array of marketing channels we will be using to drive growth. Second, We have viewed our international footprint, Canada and eight countries in Europe, as an important element of long-term growth and value creation. In Q1, we saw our international sales grow to 7% of GBV compared to just 3% in the year prior. As COVID recovery has progressed, it has enabled us to reaccelerate our investment in scaling the business in Europe. While there are small players in Europe, we believe a large percentage of the market opportunity is still untapped, and Rover has the balance sheet, technology, and data capabilities to drive significant gains. We hope to build on this progress in the coming quarters. As we noted in our Q4 earnings call, we entered 2021 with a belief that the pandemic and its impact on our business would have largely ended by the start of 2022. This did not happen, and instead other sources of macroeconomic uncertainty have additionally emerged. Despite that, Rover commenced 2022 with strong performance and traction towards our longer-term goals, and the underlying trends in the pet industry remain very exciting. While we are cautiously optimistic about some of the trends other travel companies are seeing, it is worth knowing that the vast majority of pet parents book within a month of their service needs. Overall, though, we have confidence in our future and remain centered on our mission, making it possible for everyone to experience the unconditional love of a pet. And now I'd like to hand over the call to Brent to provide more detail on our bookings and operational performance.

Thanks, Aaron, and greetings to everyone on the call. I'll first start by adding a bit more color regarding the performance of the business in Q1. Then I'd like to communicate a reporting change that we plan to implement as it relates to our marketing spending. We have continued to demonstrate strong performance in our marketplace. Perhaps most notably, total bookings increased 81% year over year, to 1.2 million, which is a Q1 record. We view this result as an indication of Rover's increasing traction with both pet parents and care providers as we scale. In Q1, worldwide new customer acquisitions were 179,000, an increase of 76% from Q1 2021. Most of our customer acquisitions were in the United States, but this quarter we also saw accelerating growth in European new customer acquisitions alongside strong growth in Canada. We view these results as encouraging signs that both regions can become material contributors to worldwide new customer acquisitions in future quarters. Turning to customer acquisition costs, as communicated previously, we entered the year with the intention of increasing marketing activities significantly when compared to last year. Against that backdrop, worldwide CAC in Q1 increased to $16, compared to $7 in Q1 2021. While we are deliberately increasing our marketing investment, we continue to see strong efficiencies across paid and organic existing channels. And now, to give a little bit more context on our change in reporting, beginning with our Q3 earnings release this year, we are going to transition away from disclosing CAC. Instead, we're going to focus on marketing as a percentage of revenue. The disclosure of CAC which is a calculation of the direct costs of customer acquisition, has been appropriate during the past two years when the dominating majority of our spending has been concentrated in direct response campaigns. However, Rover's strategy is to leverage video, social, and similar media and creative types to drive measurable ROI despite their longer return dynamics. Although some companies classify this spending as awareness or brand spending, And what these expenses are important to capture is a way of evaluating our investment in demand generation. They're included in our advertising expenses line, along with the expenses historically thought of as CAC. Therefore, we believe that marketing expense as a percentage of revenue will be a more appropriate metric to focus on in the future, and we plan to do that again beginning in Q3. On this note, looking ahead, I would like to provide some additional color on how we expect marketing as a percentage of revenue to trend. In Q1 2022, non-GAAP marketing, which excludes stock-based compensation, was 25% of revenue, up 400 basis points from Q1 2021. Long-term and adjusted seasonally, we expect non-GAAP marketing as a percentage of revenue to be between 18% and 25%. The higher Q1 percentage is reflective of the impact of Omicron, as well as seasonality on our revenues. Specifically, a portion of our revenue carries over to Q2, because of spring break and Easter timing. I'd like to now turn briefly to our existing marketing investments. We are pleased to report that based on the results of tests that we conducted in Q4 and Q1, we expect to increase spending in Q2 on our video, social, and similar channels. Further, we also expect to conduct additional testing in future quarters as we continue to execute our learning roadmap. While we are excited about the progress made in our new customer marketing initiatives, we are equally excited about repeat bookings, which were 984,000 for Q1, a year over year increase of 82%. And while we are pleased with this record Q1 performance, we also believe that further upside remains in the long term as macroeconomic headwinds ease. We continue to leverage our CRM channels as a cost-efficient way to invite our customers back to the marketplace. In conclusion, we are pleased with the results of our investment to date and the strength of our results this quarter. Rover continues to execute nicely, attracting new customers and building scale. And now I'll turn it over to Tracy to walk through our financial performance.