The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst
: I had 2. Maybe first, I think, Elizabeth, you mentioned in the prepared remarks, dealing with short-term impacts of cannibalization. Could you just
expand on that comment a bit and maybe what you're seeing on the cannibalization side? And then just in terms of COVID, how sensitive is the
business or consumer demand to COVID headlines? Are you seeing much impact at all when cases flare up? Or do you feel like we're kind of past
that at this point?
Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst
: A couple, if I could. One, Freestyle revenue increased 40% year-over-year. U.K. revenue has doubled. What does that mean for the core business,
U.S. revenue? Did that increase or decline? That is one. And second is, can you talk to the effectiveness of the Algo plus Stylist plus the Preview,
when 80% of the Fixes, the first Fixes have at least one accept, which means 20% don't have any accepts and there could be more non-accepts
within that 80% kind of vicinity. So how personalized is this? How effective is the Algo, how effective is the Stylist and how effective is the Preview?
Question: Simeon Avram Siegel - BMO Capital Markets Equity Research - Analyst
: (inaudible) off an earlier one. Did you say -- what are you expecting just for gross adds in the guided decline in actives next quarter? And then the
same idea but a little bit zooming out. I think we used to talk about the lapsed customer database being this really large opportunity to mine for
Freestyle adopters. So any update on that lapsed customer reactivation, learnings you've gotten from the rollout?
And then just lastly, Dan, I mean, congrats on that gross margin strength. Do you want to talk about how you view gross margin opportunity from
here? Maybe speak to the differences between Freestyle and Fix and then any important inventory management discrepancies between the 2.
Sorry, that was a lot.
Question: Simeon Avram Siegel - BMO Capital Markets Equity Research - Analyst
: No, that was perfect.
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