Overstock.com, Inc. Q2 2010 Earnings Call Transcript

Like Jonathan said, let me reiterate that I would encourage to you review our Q2 earnings release and our Form 10-Q filings for a detailed and thorough analysis of the results.

So with that Dr. Patrick Byrne, let me turn the call over to you.

Patrick Byrne

Thank you very much, Steve, Jonathan. I will be going through the slide deck. To begin with starting on slide 3, well, all these numbers are essentially what was just read, so let's go to slide 4 quarterly revenue growth. It did decelerate from 42 to 32. Still ample and several multiples of the industry.

Slide 5, quarterly gross profit growth, we have decided – we have decided to – that we had a little much starch in our pricing on a couple – in some areas and this is to me a strategic move that we were squeezing our prices – we're squeezing costs out of the supply chain and passing on those costs, those savings to customers. Still, all that said, this was maybe a – I will stop there.

Slide 6. This is our contribution margin. I would say that 11.8 is a little light. I think this should be running 12 to 13 as now I think I have said that before. Under 12 is a little light. So we would like to see this back in the even 12.5, 13. It has been high, as high as 14.4, but that was probably having a little bit too much starch in our pricing, and well, you should understand that we're – our model expectation here is really to run 12.5, 13.

Contribution dollars, slide seven. 27.4million. We have mentioned before that's how – that's really I think – we pay a lot of attention to this number, and we manage around this number, and we managed around this number using one set of techniques, and we're managing all the corporate expenses using another. So we pay a lot of attention to this internally and recommend you might as well.

Read the rest of this transcript for free on seekingalpha.com

>To order reprints of this article, click here: Reprints