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Mar 31, 2020
Liquidity Services Q2 2020 Earnings Report
Announced financial results for the second quarter fiscal year 2020.
Key Takeaways
Liquidity Services reported a GAAP Revenue of $52.8 million and a GAAP Net Loss of $4.2 million for Q2 2020. The company's performance was within the guidance range for GAAP Net Loss, GAAP EPS, Non-GAAP Adjusted EBITDA and Non-GAAP Adjusted EPS. Gross Merchandise Volume (GMV) of $144.3 million was slightly below the $145.0 million low end of guidance range.
GMV of $144.3 million
GAAP Revenue of $52.8 million
GAAP Net Loss of $4.2 million
Non-GAAP Adjusted EBITDA of $(1.6) million
Liquidity Services
Liquidity Services
Forward Guidance
We anticipate that our Q3-FY20 results will be negatively impacted by the COVID-19 global pandemic, which has significantly affected the global economy.
Positive Outlook
- Our RSCG segment expects to continue to support retailer needs, including online retailers, through our Liquidation.com marketplace even if at a lower than average volume in the short-term.
- As long as we can ensure the safety of our employees, we will maintain our warehouse operations in support of the essential supply-chain needs of our sellers and buyers.
- We expect lower volume from our GovDeals segment until state government re-opening phases take place. As the economy re-opens and the business climate improves, we believe our government sellers will resume their selling activity over time.
- Our pipeline for Q4-FY20 is growing as long as restrictions related to COVID-19 continue to loosen.
- We have a longstanding market-maker reputation for selling high-value equipment globally across numerous industries and will continue to support the needs of our traditional seller base.
Challenges Ahead
- The flow of assets into our network of marketplaces has been hindered across all business segments as a direct correlation to "shelter-in-place" orders and the resulting closure of seller facilities and the reduced ability of their employees to process assets and buyers to pick-up or arrange for shipping of assets.
- We expect lower volume from our GovDeals segment until state government re-opening phases take place.
- We also expect our CAG segment to see reduced volumes as many seller facilities are closed and restrict buyer inspection of assets, asset pick-up, and in many cases, employee cataloging of assets for sale.
- We expect to be negatively impacted by a lower number of transactions on our marketplaces in the short-term, and possibly longer, which will have an adverse effect on our operations and cash flows.
- deflated results in our GovDeals segment for the near-term as government facilities remain closed and employees work remotely.