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Dec 31, 2024
Liquidity Services Q1 2025 Earnings Report
Announced financial results for the fiscal quarter ended December 31, 2024, with record GMV and improved operating leverage.
Key Takeaways
Liquidity Services reported a strong start to FY2025, with a 26% increase in GMV to $386.1 million and a 72% increase in revenue to $122.3 million. GAAP Net Income increased by 205% to $5.8 million, and GAAP Diluted EPS rose by 200% to $0.18. The company's performance was driven by the continuing adoption of its services and momentum across its businesses.
Record Gross Merchandise Volume (GMV) of $386.1 million, up 26%, and Revenue of $122.3 million, up 72%.
GAAP Net Income of $5.8 million, up 205%, and GAAP Diluted Earnings Per Share (EPS) of $0.18, up 200%.
Non-GAAP Adjusted EBITDA of $13.1 million, up 81%, and Non-GAAP Adjusted EPS of $0.28, up 100%.
Cash balances of $139.1 million with zero financial debt.
Liquidity Services
Liquidity Services
Liquidity Services Revenue by Segment
Revenue by Segment
GovDeals Revenue
CapyFin.comRSCG Revenue
CapyFin.comCAG Revenue
CapyFin.com Forward Guidance
Q2-FY25 guidance anticipates continuing the solid start to the fiscal year, with the mid-point of guidance reflecting year-over-year growth in each of our key financial metrics and across our segments.
Positive Outlook
- Expanded purchase programs in our RSCG segment are expected to increase its GMV and revenue, with revenue growing at a higher rate than GMV.
- Higher overall mix of lower-touch product flows improving RSCG's overall results.
- CAG project pipeline continues to be strong, especially in the heavy equipment and energy categories.
- GovDeals and Machinio segments are expected to continue their steady expansion of their client bases and service offerings to grow their revenues year-over-year.
- Consignment GMV is expected to continue to be approximately eighty percent of total GMV.
Challenges Ahead
- CAG prior year comparable period reflected the completion of several international sales events that had been previously delayed last year.
- Consolidated revenues as a percentage of GMV is expected to be in the low thirty percent range.
- The total of our segment direct profits as a percentage of consolidated revenues is expected to be in the low forty percent range.
- These ratios can vary based on our overall business mix, including asset categories in any given period.
- The acquisition of Auction Software is not expected to have a significant impact on our results for the second fiscal quarter of 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income