Q2 2021 Poshmark Inc Earnings Call
[music].
Welcome to <unk> second quarter 2021 conference call. Joining me today are many shandra founder chairman and CEO and Unencumber, our Chief Financial Officer. Please keep in mind that our remarks today include forward looking statements such as statements related to our financial guidance and key drivers the impact of COVID-19 on our communities business and strategy.
Potential benefits of our marketing and product initiatives and the anticipated return of our investments and their ability to drive growth. Our actual results may differ materially from those expressed or implied in our forward looking statements forward looking statements involve substantial risks and uncertainties, which are described in today's earnings release. Our annual report on 10-K for the year ended December 31, 2020, and our 10-Q.
For the quarter ended March 31, 2021, and other subsequent filings with the SEC, including our 10-Q for the quarter ended June 32021, any forward looking statements. We make on this call are based on our beliefs and assumptions as of today and we don't have any obligation to update them.
During the call, we'll present GAAP and non-GAAP financial measures a reconciliation of non-GAAP to GAAP measures is included in today's earnings release, which you can find on our IR website, along with a replay of this call and with that I'll turn it over to the niche.
Thanks, Christine Hello, and welcome everyone. Thank you for joining us for our second quarter earnings call.
We report our shared a recap of our Q2 performance I'd like to take a moment to welcome <unk> newest board member.
Beckwith, whose appointment we announced yesterday.
Anthony is cheap philanthropy office of that sales force and CEO of the Salesforce Foundation.
The powerhouse leader, who brings deep experience across technology operations, and philanthropy and a deep connection to our brand as an avid washer, who joined the Boston Park community in 2014.
I'm absolutely delighted to welcome a member of our community to the board and even more so I'm excited about the impact you will have on our company our community our culture and our mission as we empower consumers around the world and shape the future of shopping.
Now turning to our Q2 results, we remain focused on executing our long term growth strategies and delivered another strong quarter.
We grew <unk> revenue by 25% and 22%, respectively to $450 million and $82 million due to the reliability and strength of our cohorts. Despite difficult comparisons we delivered our fifth consecutive quarter of adjusted EBITDA profitability, but $6.1 billion and adjusted.
EBITDA and 7.4% and adjusted EBITDA margin.
Asset light model or channel inventory, leading to consistent high gross margins, resulting in a scalable and profitable business with a highly engaged community of loyal cohorts.
Our community of sellers is both dynamic and flexible keeping our marketplace constantly refreshed with curated merchandise.
<unk> gardens, and emerging trends and lifestyle preferences.
In the second quarter, our sellers were once again at the forefront of an ever changing fashion landscape staying ahead of emerging trends such as <unk> and <unk> styles.
Yeah.
Marketplace is highly adaptable.
Credibly responsive to buyers to changing demands for either staying at home.
All for going out and.
Supply adjust almost instant continuously thus.
Thus, we are confident that we can navigate any potential future impact from the Delta Varian.
As evidenced by the resilience of our cohorts, which delivered strong financial performance during Covid last year and so far in 2021.
1 of the reasons, we have such a loyal and engaged community is our commitment to making selling on Bosch Mark as simple as possible. We do this through robust tools that enable broad distribution most of our seller listings to buyers everywhere in May we announced the partnership with Snapchat, which went live on July 8.2 all use snapchat to users.
2 Bosch Mark many snapchat users getting engaged with the <unk> community.
Virtual Bosch parties shop, our entire catalog of merchandise and easily search for top trending brands and styles of Bosch Mark all within snapshot.
<unk> Mark many will introduce billions of new shoppers to quash mark while deepening our relationship with Gen Z, what an important fast growing part of our community Gen Z make up 77% of daily active players using Bosch Mark maybe on Snapchat.
Our business remains stronger than ever driven by continued progress of our core growth strategies.
Our first strategy is to focus on product innovation to continue driving user engagement, which is fundamental to the retention of our user cohorts in <unk> growth.
To enhance the buyer experience, we introduced bought alerts a new feature that sense a notification when a listing you have Mike received an offer from another buyer.
And the item you like was purchased by someone else. We will direct you to similar listings are identical items, we've seen an increase in listing views engagement and order conversion rates as a result of this new enhancement, which routes power and the buyer's hands and creates a more personalized and curated shopping experience.
Expanding our international footprint as our second key strategic focus and we continue to invest ahead of revenue I'm.
I am happy to announce we recently hired a new vice President of International Sylvia <unk>, who will lead our international growth and expansion plans as we bring <unk> social shopping experience to consumers around the world by Bosch markets will be served as EBIT as general manager of Latin America, especially helped launched and scaled the business and resolve.
Instrumental in expanding the footprint in emerging markets I look forward to partnering but still be on our international team to accelerate <unk> expansion into new markets in.
In the second quarter, we celebrated <unk> anniversary, our thriving community has grown to more than $2.5 million Canadians who are engaged in more than 1 billion social interactions and listed nearly half a billion dollars worth of inventory since launch our success in Canada provided a playbook for launching <unk> in Australia.
Just seeing great user buyer and seller growth since our <unk> launch we are focused on aggressively growing that Australian communities and continue to invest in marketing to grow the user base.
As you May have seen last week, we announced that India will be the next stop in our global expansion strategy, India is 1 of the fastest growing e-commerce markets in the world and is a vibrant culture of resale <unk> and prelaunch shopping.
We've hired a country general manager and continue to build out our team on the ground. We have begun the process of building community against supply through the beta phase of development and on behalf of myself. My co founders are deemed Bosch were overwhelmed with joy to bring Bosch months, India.
Our current strategy is to go through category expansion.
Launched art and design is still new subcategories under the home Department and is a natural extension to address deciding upon community, we have seen art and design attract new buyers and sellers to the platform.
Demonstrating the scalability of our model and new these new categories as the foundation for building, our handmade artisan business for <unk>.
Our forward strategy is to deliver innovative easy to use an effective seller services to help sellers market merchandise and sell their listings in April we introduced style tags, a powerful new search and discovery tool that allows sellers to merchandise and market their listings by style and trends and provides buyers with a new way.
The shop beyond their usual banned substances. If for example, a buyer's shopping for y2k looks they can simply follow y2k, as a trend which greatly expands their ability to find and track relevant testing stacked with that.
Similar to how buyers can follow brands such as Gucci Lululemon. They can now emerging trends such as <unk> leukemia in June 28% of <unk> style patch and a result, we saw increased daily listing views and buyer engagement could these listings.
Though early we believe shopping by style and trends is the way consumers want to shop, and Bosch Mark size that will help drive conversion over time.
We also launched price suggested to help sellers, especially new sellers Mr items more effectively by providing the suggested price range for their listing.
This new feature not only helps to drive new supply. It also positively impact sell through rates as it increases the percentage of products priced to sell in our marketplace.
As early finding yourself social commerce, we're always innovating core marketplace functionality to make it easy for sellers to engage with shoppers and grow their sales at the end of June.
Orange for powerful bulk listing tools that take social selling to a whole new level or Bosch Marcellus with large deposits. The new features allow sellers to share multiple listings at once made closet quite price adjustment and execute multiple offers like us all at ones driving productivity engagement and sales.
Our seller community is responding enthusiastically to the new time saving functionality.
Since day, 1 our sellers have been the heart of the <unk> community and our hard in Hartsville community Fund is an important step in recognizing rewarding and empowering our diverse seller community.
In June we awarded 142 centers with $125000 in grants to help support their business goals.
For my daughter, balancing fulltime business, while caring for our sick mother to a college student Bank regulation. This is just 1 of the base we support our seller community so that everyone can thrive.
2 experienced the vibrancy of the <unk> community I invite you all to join US in October it fast fashion, our annual 2 day conference. We have community members connect network and learn how to grow and succeed by settlement Bosch Mark.
As many consumers return to work and school in fall and engage in more social activities, we expect apparel purchased direction rates and demand for a different type of wardrobe to emerge from quarantine outputs that prevailed in 2020.
In addition, the seismic shift in fashion currently underway is expected to unleash pent up demand for apparel that we believe will last for several years driving more frequent and wide range of lifestyle purchase thats benefiting our marketplace.
Now I want to take a moment to bank on them for being my friend and partner for the last 5 years, helping us scale the business more than 10 times from $160 million in <unk> 2015 to over $1.6 billion and trailing 12 months as of the second quarter and taking us public.
His numerous contributions have helped lay the foundation for consistent revenue growth and continued markdown and we truly appreciate the role. He has played in positioning <unk> for long term success with support from a leading executive search firm the board and I have initiated a search for a new CFO.
In the meantime, I'm pleased to announce that our VP of finance capital otherwise.
It will become interim CFO has been with <unk> for the last 5 years, leading finance strategy and corporate development, coupled brings a decade of leadership.
After 1.
On behalf of the <unk>.
Bosch Mark.
On and you will be greatly missed and we wish you the best of luck in your future endeavors.
We appreciate that you are staying on as an adviser until the end of the year to help ensure a smooth transition with the next CFO and with that I'll turn.
I appreciate the kind words.
In park, such an exceptional team.
The last 5 years, a time in which <unk> has executed a number of transformative steps in its growth strategy.
The next stage of <unk> development is now solidly underway and I have complete and team in place to capture that.
I'm excited to hand, the baton.
A couple who was my first hire and has been my partner for the last 5 years.
Helping us drive growth reached profitability and build the finance team.
<unk> mentioned, our second quarter was another great quarter as we delivered strong <unk> and revenue building. Upon the continued demand trends we saw in the first quarter as consumers remain focused on buying apparel for different events in their lives and we delivered our fifth consecutive quarter of operating profitability.
During the second quarter of 2021, our cohorts have remained resilient and helped us generate $450 million in <unk> second quarter of 2021, which was 25% growth from $360 million in the second quarter of 2020.
Or 67% growth on a 2 year stacked basis and acceleration from the 2 year stack growth of 52% in the first quarter.
Commensurately net revenues were $82 million in the second quarter, 2021, which was 22% growth from 67 million in the second quarter of 2020.
<unk> hundred 63% growth on a 2 year stacked basis and acceleration from the 2 year stack growth of 50% in the first quarter.
This was driven by an increase in <unk>, the second quarter of 2021 and strong growth in our community, including a 16% growth.
For trailing 12 months.
Active buyer.
2%, which is down slightly from last year's 18, 6%.
Greater than $15.
Orders less than $15.
Fee of $2.95.
Cancellation rates peak.
<unk> progressed.
Cost of revenues was done.
And an increase of 19% from the second quarter of 2020.
The decrease of 15, 6% of revenues from 16% last year due to nonrecurring credit and transaction payment processing fees.
Therefore, our adjusted gross margin, which is net revenue less net revenue improved 4% to 84, 4% of revenues in the current period as compared to the second quarter of 2020.
Marketing expense excluding stock.
Fourth quarter of 2021, 179% increase from 11 million.
We dramatically reduced marketing.
In response to the Covid crisis.
7% of net revenues second quarter of 2021 that was slightly below.
During the second quarter similar to others.
<unk>, who use digital marketing.
Which effectively increased the cost of mobile advertising due to less efficacy when running targeted marketing programs.
Because our marketing mix is highly diversified and adaptable we adjusted by focusing on strong ROI user acquisition channels as well as investing in upper funnel facts such as TV.
Influencer partnerships to counter the effects of IV effects.
Moving to operating expenses.
Operations and support excluding stock based compensation was 12 million in the second quarter of 2021, an increase of 34% from the second quarter of 2020.
Also support improved to 14, 8% of revenues from 15, 7% in first quarter, but was up from 13, 5% in the second quarter of 2021.
The improvement was due to.
And a reversal of credits.
Research and development, excluding stock based compensation was 9 million in the second quarter up 43% from the second quarter of 2020.
R&D increased 11, 4% of revenues from 10, 1% in the first quarter of 2021 and from 9.8% in the second quarter 2020.
This was due to the planned increase in hiring we have previously discussed as we invest additional resources across a number of key initiatives, including product innovation improved platform functionality and international expansion such as our most recent India launch.
G&A, excluding stock based compensation in the second quarter of 2020, increasing too.
11, 9% of revenues.
This improved from 13, 3% of revenues in the first quarter of 2021 due to lower non personnel costs, but was higher than 8.4% last year due to the additional ongoing cost of being a public company.
Stock based compensation was $8.1 million in the second quarter of 2021, an increase from $1.7 million last year, mainly due to performance based vesting of outstanding <unk> upon completion of our IPO in January 2021.
We delivered adjusted EBITDA, which excludes.
With adjusted EBITDA margins.
7.4% up from 5.2% in Q1.
$7 million and 35.
5.4% margin in the second quarter of 2020.
The decrease in profitability was primarily driven by an increase in marketing investment.
As compared to prior year, where we lowered our marketing spend during the initial onset of COVID-19.
As we've discussed before for the remainder of 2021, we will prudently invest in marketing in the future as we did in the second quarter, but with a continued focus on growth and margins.
Operating income excluding stock based compensation was $5 million in the second quarter of 2021 with operating margin of 6.4% compared to 23 million with margins of 34, 4% in the second quarter of 2020.
Second quarter 2021, net loss to common was $3 million compared to $11 million in income last year.
Cash cash equivalents and marketable securities were $579 million as of June 32021.
I think about capital allocation, our number 1 priority is using our strong balance sheet to make strategic investments to drive long term growth internationally.
Moving to the cash flow statement for the 6 months ended June 30 of 2021 free cash flow was $24 million compared to $33 million for the first 6 months ended in 2020.
Our strong cash flow generation significantly strengthened our balance sheet and liquidity.
We expect third quarter revenues of $81 million to $83 million, resulting in a growth rate of 18% to 21% taking into consideration difficult comparisons against 38% year over year growth last year.
Our revenue guidance reflects 56% to 59% growth on a 2 year stack basis.
We expect our third quarter.
To remain profitable with third quarter EBITDA.
$1 million to $2 million as you can.
Continue to focus on balancing growth and profitability, while investing in market.
Adjusted gross margin during the second quarter of 2021 was ahead of our initial expectations and for the remainder of 2021, and we expect adjusted gross margin to be similar to 2020 levels due to normalization of hosting expenses.
We expect operational support in the third quarter to be similar as a percentage of revenue to the first quarter.
R&D expenses in the third quarter are expected to increase as a percentage of revenues from the second quarter as we continue to increase our investment in international expansion and product innovation.
The remainder of the year G&A expenses as a percentage of revenue should be similar to the first quarter due to the timing of different public company expenses, we continue to expect marketing as a percentage of revenues to be in the low for the remainder of 2021 is to grow users support geographic expansion and launch new categories. We will continue to invest in highly diver.
<unk> mix of channels and expect the impact of IBP to normalize throughout the year.
Our marketplace is adaptable as evidenced by the resilience of our cohorts in a strong financial performance during Covid last year.
Looking ahead, we think that consumers inherent desire to socialize and resume normal activity combined with the interest in resale should drive demand for apparel going forward, which should benefit our marketplace.
We remain very excited both about our opportunities in the U S as well as our global expansion into Canada, Australia and India.
Finally, before we begin Q&A I would like to thank lineage for trusting me 5 years ago, and giving me the opportunity to build <unk> market to a dynamic social marketplace that empowers millions of iron loyal postures.
I've had the pleasure of working closely with some of the most talented individuals in my career and to them I would like to say thank you for your partnership and FERC and your kindness.
And now I'm going to continue being part of our 2 biggest supporter and I look forward to following mutation of Apache Spark team continue building a truly global marketplace that puts people at the heart of Commerce.
Thank you and I will now turn the call over to the operator, so we can take your questions.
Thank you at this time, if you would like to ask a question you will need to press star 1 on the telephone keypad again, there'll be Taiwan and telephone keypad to ask a question.
How do you fix it.
The first question comes from the line of Brian Shang of Morgan Stanley. Your line is now open you may ask your question.
Great. Thanks, I wanted to dig into international a little bit curious if theres anything you can share on how the Australia launches is going thus far and then just on the India.
Announcements.
Sort of the marketing strategy around that if there is any color on unit economics, you can share there I know, it's still early and then lastly.
I think the U K answered the other big market you had talked about entering this year, what sort of be expecting timeline at that lock as well. Thanks. So much.
Hello, and thanks for the question this is manish.
Number 1 for Australia, we're seeing the metrics continue to be very healthy the community is forming very well the monetization per buyer that checks all of those.
Bricks are trending in absolutely the right direction, it's only 4.5 months since the launch so we expect the marketplace to continue to evolve in a positive direction, India. The plan is to take it live in this quarter, we just sort of announced the prelaunch phase of the product or general economic strategy. There is.
Very congruent with other markets, but we will get more data as we as we get experience in that market over the next few quarters.
And then broadly what <unk> seen us this year Theres launch, Australia launch, India, and we will continue to sort of March due to the other countries studying it and continuing with sort of English language countries, and then going beyond that.
Can't comment on the specific plans, but broadly that's what about our strategy.
In Canada also continues to move in a very healthy direction broadly speaking.
Okay. Thanks, so much.
Thank you. The next question comes from the line of Oliver Chen of Cowen. Your line is now open you may ask your question.
Alright, Thank you very much.
Payroll and apparel performance, we were curious about apparel in relation to frequency of purchase and any observations you had about the back to school season have you noticed changes in consumer behavior.
Second question is in relation to new active buyers and.
Your additions this quarter, what do you think is the right level for new buyer and numbers that we should think about going forward. Thank you very much.
On the back to school side, its little too early to comment because we're just sort of in that season right now, but broadly we are seeing the health of the cohorts and sort of all of the cohorts shaping up very much in line with history and continue to scale up in terms of stacking up in the growth and the health of the cohorts.
Let the unearned comment a little bit on the active buyer, yes. So.
Thank you for the question. We don't ultimately died 2 ensures active buyers, but what I would say is that we normally expect.
<unk> growth to be relatively in line with the overall growth of the business.
And as we've mentioned earlier.
Others, who face some of the challenge in digital marketing, we saw the impact of <unk> at the end of the second quarter, which resulted in a little bit less efficacy when running kind of targeted marketing campaigns. So we expect this to essentially continue in the third quarter.
We do have a very.
Diversified in basketball marketing mix and we adjusted as we went through the <unk>.
During the quarter and we continue to do so.
And we are currently investing a little bit more and some upper funnel strategies.
But we think all of this should normalize by the time, we get to the back half of the year.
Especially into the fourth quarter, we think the.
Impact of mobile as mobile advertising is real but we will manage our ROI thresholds should balance out essentially growth and profitability.
Okay. Thank you and then on the reopening as well as the.
The volatility we are experiencing with delta.
What about the apparel category and what have you been seeing with category trends that have been interesting to you and it's been great working with you as well.
Yeah. Thank you Elena.
On the apparel trends, what we're seeing is really the adaptability of the marketplace to what the market demands. So a few things. We saw in Q2 was the surge himself sandals, many dresses and blouses again, all Congress to those people.
Ben to start to going going out. We also saw some of the vintage transcribe why <unk> come back in a strong way across the platform and as we go into fall. We expect again the market to respond both in terms of going out going to school, but also I think productive area and we'll continue sort of product.
Chris on the fashion and fashion debentures, but broadly the better demand was extremely healthy and we saw our category mix in line with our historical data.
Thank you very much best regards.
Thank you again and I wanted to ask a question you will need to press star 1 on your telephone Keypad next question. We have the line of Rob Shack Pike Aphelion Blair. Your line is now open you may ask your question.
Good afternoon. Thanks for taking the question 2 if I could first just in the non apparel categories, such as pet and home and beauty and some of the others. Just curious if youre still continuing or if youre seeing impact both on <unk> as well as helping attract new buyers and new sellers too.
I have a follow up.
Yes, these categories at extremely attractive and being able to both monetize existing buyers and sellers, but also attract new buyers and sellers and certainly thats, which we launched in Q1 has been has been a good match them to continue to grow those areas auction design motive the sub category level and just recently launched but yes the categories.
We have been generally very positive and accretive to buyers and sellers overall.
Great and just on India in particular, just given that the opportunity with the population Theyre just munis, maybe if you could share some color just I know, it's super early but just any trends youre seeing there that gets you excited and then assuming that trends remain positive there how should we think about sort of the <unk> per buyer there.
Could there be some potentially downward pressure that metric, it's India scales and I guess, the reverse will be true potential upside of buyers you know if it really takes off.
Okay.
I don't really have any any data to share yet because the product is not fully launched yet in the prelaunch phase.
So really hard to share I think.
Sure.
Generally I would expect that <unk> will be slightly lower than the average, but the number of buyers will be lower just given the population that mix and so that's the way to think about it. If you think about our <unk>. It's a multiplier of number of Firestone chimney providers. So that's sort of figured I'd think about it but again, we'll have more to share in a couple of quarters once we get real data.
And the market.
So far in Canada.
Canada and USA have been very very similar in their characteristics.
Great and.
Best of luck in the next row.
Thank you appreciate it.
Thank you next question, we have the lines from Aaron Kessler with Raymond James. Your line is now open you may ask your question.
Hey, guys. Thanks, a couple of questions. Maybe first just if you can comment a little bit on the video uptake that youre seeing from buyers and sellers in a second with the bulk listings actions.
Fair, thus far maybe traction and does that.
Open up to any more retailers or brands as well to more effectively.
Effectively sell on the platform. Thank you.
Yes, so number 1 the video continues to sort of see an uptick and we've continued to invest in.
Embedding it in more and more places youll see it rollout.
More and more across the site as we gain confidence in its convergent ability as well as sort of just the engagement metrics that we are seeing come out of the video area. The boat sharing tools have been extremely them received the sort of the bulk listing action tools for sharing priced off et cetera.
Really open up our platform for pretty large scale.
Resellers, and certainly brands, who want to participate in it as well. So we continue to see that as a massive game changer and a key enablement.
And for the brands, we continue to partner and experiment with them.
I don't have specific update yet, but as soon as we do we'll be we'll definitely let you know, but we see that as an exciting opportunity certainly bulk listing.
As a powerful enabler of that market.
Great. Thank you and I'll Echo <unk> comments on banana, great working with you. Thanks.
Thank you Aaron.
Thank you. The next question comes from the line of Ross Sandler.
Barclays. Your line is now open you may ask your question.
Hey, guys just a question on <unk>.
Marketing efficiency comment so it looks like.
With your guidance your marketing is going to grow about 60% to the back half.
And Judy or a range of around <unk> hundred 20 buyers.
<unk> or so.
So how much of that marketing investment is going to international versus sellers versus buyers.
Is it mostly international or is the EBITDA margin in the U S like comparable to kind of where we were last year, a little bit lower I mean, any color on like where the.
There was a margin pressure is coming from and then similarly on retention.
New categories.
What is your retention look like now versus maybe pre COVID-19 engine during the peak.
Last year at this time, thanks a lot.
Yes.
Thanks, a lot Ross great question on marketing.
So if you recall last year I think we were still coming out of the hole coming out of the Covid crisis.
And we spent only.
17% of revenue on marketing in the second quarter, and we only increased marginally in the third quarter and so thats. The primary driver for what I would consider easier comps.
For me from a marketing investment standpoint versus revenue growth overall I think the.
The structure of how we allocate spend between the countries as much.
Much more focused on rois.
In the U S, especially which is a market that we've been in for almost 8 to 10 years, we have a very strict and essentially call payback policy.
So we like that to be approximately 2 years. We are we're going to stay very disciplined on it it's actually in the second quarter. When we saw some issues with IBSA, we essentially decided to to reduce some of our investment in mobile advertising and shifted to other channels.
I think the reality is that if you look at some of the newer markets. There is going to be a bit more investment ahead of revenues, So India being the perfect example, but even though Australia, it's still very early stages in its development.
In Canada, I would consider more middle stage. So we do have ROI targets and thresholds for Canada.
In Australia, and India that the investment is a little bit tough year.
As a percentage of revenue if you look thinking about it from a leverage standpoint, the U S is going to be lower than that call. It.
40, low <unk> target, we gave us as a totality.
But the rest of the remainder of the vessels really going international.
And then as far as retention is concerned.
Yeah look the older cohorts continue to be very very stable and continue to see.
Very solid growth I think.
The category expansion is definitely helping.
<unk>.
Hard to say that's the primary driver.
Really it's the fact that we've got this great social ecosystem.
So we think of both being very sort of positive dynamics for us in the long term and that's why we continue building products towards improving retention in the long term.
Thank you. The next question comes from the line of Ron Josey of JMP Securities. Your line is now open you may ask your question great.
Great. Thanks for taking the question on and we'll Miss you going forward as you know so <unk> I wanted to ask about Delta I think you said harsh market confident that it can manage any disruption and so can you help us understand maybe unpack those comments any insights on July August GMB trends of course, it would be helpful and or maybe how youre thinking about growth on the <unk>.
2 year stack that that would be super helpful to understand your comments on managing through Delta and then I wanted to ask a little bit more about the snap partnership I think I think you said it launched this month or 2 ago, just talk about how this could play out we're seeing a lot of a lot of adoption here for social commerce and I think the snap many is pretty fascinating. So any insights there would be helpful. Thank you.
Sure so on the downside.
When we sort of get into Covid related.
Changes that are happening, it's hard to predict exactly how the award is going to shape up as we saw last year. The Ping redo noise that our market faces. Many adaptable. So if you think about the core tenets of our market. They just online it's online social.
<unk> hand, so a lot of inventory is coming from people who have the inventory to sell you can sell from home you can shop from home you can ship from home. So all of those things allow us to be fairly robust in case people have to stay back at Walmart are mingle and sort of back and forth.
As the world is that even the variances across the country in terms of the attitudes that'll be there. So that's that's really the <unk>.
Strengths, we see in the core marketplace that has allowed us to manage through.
All of the different changes over the last 18 months or so that we've seen with Covid and COVID-19 related.
Attitudinal changes so that's that's the confidence underlying that comes in.
I think when you look at 2 year stacked basis, we shared.
For Q1 and Q2, we're looking at 52% for Q1 <unk> to your stack and 67% 2 year stack.
On the <unk> basis.
Seeing consistent growth across the cohorts and consistency there and ultimately it is that consistency and stacking of the cohorts combined with the adaptive data market place that gives us confidence going into into Q3 and facing some of the uncertainty that broadly delta brings to the table.
That's great. Thank you very helpful any thoughts on snap.
Oh, yes, so snapchat is very exciting I think.
For us we think of ourselves technically in a super innovative setup space and continuing to invest in innovation across the board. If you go back all the way to when we started the company was the first people to bet, a 100% on iPhone and mobile back in 2010.2011, but have you been projecting is a website. So when you look at this new <unk>.
From opening up with Snapchat and harsh bidding on staff job, it's a exciting place, but maybe we've designed it is that you can shop natively in Snapchat on Boston market can shop.
The closet you can shop.
Inventory, but you can also shop virtual crush volumes, there and make the purchase directly there as well so that's sort of how we see it in the I guess to open up Bosch Mark to audiences and then bring them back into <unk> as a broader platform of engagement.
The early results show that a significant number of engagement and amount of engagement, we have seen over 77% of what we call active daily users of activating players are Gen Z and so that just continues to broaden the appeal of Apache spark the different audiences overall.
We certainly see this approach is something that other platforms might take and we'll be there to partner with them as we expand our footprint.
That's great. Thank you.
Thank you again, if anyone would like to ask a question you will need to press Star then the number 1 on your telephone keypad again that would be tier 1 than a telephone keypad to ask the question.
There are no further question at this time I would like to hand, the call over to Mr. Manish Chandra Sir.
Thank you everyone for joining our call and for your questions. We look forward to speaking to you again next quarter. Thanks.
Thank you ladies and gentlemen that concludes today's conference call. Thank you also participating you may now disconnect.
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