Rover Group, Inc. (NASDAQ:ROVR) Q3 2023 Earnings Call Transcript

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Aaron Easterly: Hi, Tom. I’ll take the first question and then hand it over to Charlie for the second one. The LTVs for this quarter were driven by a couple things. The first is the fact that we’ve seen some moderation of the cancellation rates. It means that our realized value per customer improves. And we’ve also seen a minor increase in the bookings per customer on a year-over-year basis if you compare the first nine months of this year versus the nine months of last year. That was a little bit more pronounced in the daytime services. Historically, the daytime services are capable of much higher frequency than the overnight services. People may take only a handful of trips a year, but if you’re using Doggy Daycare, Walking, you can use that a lot more frequently.

So the fact that we’ve seen a little bit higher increase there is also positive. The overall amount of pricing that’s driven the LTV expansion this year is probably fair to say, less than the portion that it was last year.

Charlie Wickers: Hey, Tom. With regards to booking window, there’s no major changes in our end to report. Our overnight services continue to be booked about three weeks in advance, and our daytime services continue to be booked about a week in advance.

Tom White: Okay. Thank you. Appreciate the call. Thanks.

Operator: Thank you. [Operator Instructions]. Our next question will come from the line of Cory Carpenter of JP Morgan. Your line is open.

Cory Carpenter: Hey, thanks. Maybe one for Charlie and one for you, Aaron. Charlie, could you just talk, did you see any impact to bookings in October around some of the geopolitical events, whether in the U.S. or in Europe or could you just talk about your potential exposure there? And then secondly, on the Bright Horizons partnership, could you just give us an update on how that’s going and any lessons learned in terms of maybe partnerships you could go for in the future? Thank you.

Brent Turner: Hey, Cory. This is Brent. I think I’ll take both of those. On the political events, we have not seen anything sort of hit our radar screen in terms of volume impacts that have been noticeable. Anytime there’s something that’s going on, whether there’s a weather event in Florida or there’s political events somewhere in the world, sometimes you can see small things, but nothing that is represented a trend or is reportable. The Bright Horizons partnership, not a lot to report in terms of status. We continue to, the partnership continues to exist. We continue to be proud of them as partners, and we continue to acquire and reacquire customers through that partnership. We do – there are themes around for us that have emerged around the occasion, which the Rover offer is surfaced and also the audiences that we’re getting in front of that we think we can learn from, but in terms of the application of those to other partnerships, nothing to report yet.

Cory Carpenter: Thank you.

Operator: Thank you. I am seeing no further questions in the queue. I would now like to turn the conference back to the CEO, Aaron Easterly for closing remarks.

Aaron Easterly : Thank you all for joining our call today. We are pleased with the performance of the business this quarter, and we are really excited about what’s to come. Have a wonderful day, everyone.

Operator: This concludes today’s conference call. Thank you all for participating. You may now disconnect, and have a pleasant day!

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