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Dec 31, 2023
Liquidity Services Q1 2024 Earnings Report
Liquidity Services' first quarter demonstrated GMV growth driven by the Public Sector and Industrial Clients, along with double-digit growth in auction participants and strong recovery for clients.
Key Takeaways
Liquidity Services reported a mixed Q1 2024 with a 13% increase in Gross Merchandise Volume (GMV) to $305.9 million but a 1% decrease in revenue to $71.3 million. GAAP net income decreased to $1.9 million, with EPS at $0.06. The company saw growth in its GovDeals and Machinio segments, while RSCG and CAG were impacted by product mix and delayed sales events.
GMV increased by 13% to $305.9 million, driven by growth in the GovDeals segment.
Revenue decreased slightly by 1% to $71.3 million.
GAAP Net Income decreased to $1.9 million, with EPS at $0.06.
Acquired Sierra Auction Management, Inc. to strengthen position in online vehicle and equipment sales.
Liquidity Services
Liquidity Services
Forward Guidance
Liquidity Services anticipates sequential increases from fiscal first quarter 2024 results in the second quarter, including an expected seasonal improvement for the RSCG segment. The company projects a potential new quarterly record for GMV and normalized growth in profitability metrics.
Positive Outlook
- GMV is expected to range from $320 million to $350 million.
- GAAP Net Income is expected to range from $3.0 million to $6.0 million.
- GAAP Diluted EPS is expected to range from $0.09 to $0.19.
- Non-GAAP Adjusted EBITDA is expected to range from $9.0 million to $12.0 million.
- Non-GAAP Adjusted Diluted EPS is expected to range from $0.17 to $0.27.
Challenges Ahead
- Continued mix shift to the consignment model may lower revenue as a percent of GMV.
- Variability in the inventory product mix handled by our RSCG segment can cause a change in revenues.
- GMV from real estate transactions can be subject to significant variability.
- Continued variability in project size and timing within our CAG segment.
- Q2-FY24 effective tax rate (ETR) is expected to range from approximately 21% to 27%.