Farfetch Limited (NYSE:FTCH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 13, 2020 • 04:30 pm ET


Farfetch Limited (NYSE:FTCH) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Rob, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Farfetch Second Quarter 2020 Results Conference Call. [Operator Instructions] Thank you.

I'd now like to turn the call over to Alice Ryder, VP of Investor Relations. Ms. Ryder, you may begin your conference.

Alice Ryder

Hello, and welcome to Farfetch's second quarter 2020 conference call. Joining me today to discuss our results are Jose Neves, our Founder, Chairman and Chief Executive Officer; and Elliot Jordan, our Chief Financial Officer.

Before we begin, we would like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and forward-looking statements made today speak only to our expectations as of today. We undertake no obligation to publicly update or revise them. For a discussion of some of the important risk factors that could cause actual results to differ, please see the Risk Factors sections of our Form 20-F filed with the SEC on March 11, 2020, and in Exhibit 99.2 to our Form 6-K filed with the SEC on April 27, 2020.

In addition, we will refer to certain financial measures not reported in accordance with IFRS on this call. You can find reconciliations of these non-IFRS financial measures to the IFRS financial measures in our earnings press release and the slide presentation, both of which are available on our website at farfetchinvestors.com.

And now, I'd like to turn the call over to Jose.

Jose Neves

Thank you, Alice, and thank you all for joining us today. I am very pleased to be speaking to you about our results for Q2 2020. Group GMV grew 48% to $721 million driven by Digital Platform GMV acceleration to a record $651 million, up 34% or 39% on a constant currency basis, as well as the addition of Brand Platform GMV following the acquisition of New Guards in Q3 2019.

Last quarter, I outlined six key differentiating advantages, which positioned Farfetch to emerge from the COVID-19 situation even stronger. And our outstanding Q2 results clearly demonstrate that they're playing out as the industry undergoes what I believe is a major acceleration of the sustained online adoption we have been anticipating, since in founding Farfetch 13 years ago. First, our business model has proven to be truly resilient, as we have continues to be able to serve our brands, retailers and consumers, since the onset of the pandemic with no material disruption, while also prioritizing the health and wellbeing of our employees, partners and customers.

Second, our market-leading Digital Platform has enabled us to leverage our reach across our 190 markets, and capitalize on our stronger share of voice by investing in regions where our programmatic marketing algorithms detected demand by consumers who are shifting their shopping online. As a result, we delivered a record level of transactions during the quarter as we acquired our largest-ever cohort of over 0.5 million new customers, and more