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Mar 31, 2021

Liquidity Services Q2 2021 Earnings Report

Delivered strong year-over-year gains in GMV, Revenue, GAAP Net Income, GAAP Diluted EPS, Non-GAAP Adjusted EBITDA and Non-GAAP Adjusted Diluted EPS.

Key Takeaways

Liquidity Services announced strong Q2 fiscal year 2021 results with a 44% year-over-year growth in consolidated GMV and a GAAP Net Income of $5.3 million. The company completed its $10.0 million share repurchase plan and approved a new $15.0 million plan.

GMV increased by 44% year-over-year, reaching $207.3 million.

Revenue increased by 17% year-over-year, totaling $61.8 million.

GAAP Net Income was $5.3 million, a year-over-year increase of $9.5 million.

Completed entire $10.0 million share repurchase plan and approved a new $15.0 million share repurchase plan.

Total Revenue
$61.8M
Previous year: $52.8M
+17.0%
EPS
$0.19
Previous year: -$0.1
-290.0%
GMV
$207M
Previous year: $144M
+43.7%
Registered Buyers
3.89M
Previous year: 3.68M
+5.8%
Auction Participants
561K
Previous year: 490K
+14.5%
Gross Profit
$35.4M
Previous year: $26.2M
+35.1%
Cash and Equivalents
$87.6M
Previous year: $41.8M
+109.5%
Free Cash Flow
$24.2M
Previous year: $4.96M
+388.1%
Total Assets
$218M
Previous year: $182M
+19.5%

Liquidity Services

Liquidity Services

Forward Guidance

The Company expects financial results for Q3-FY21 to improve year-over-year, with anticipated increases in transaction volumes and continued positive macroeconomic factors.

Positive Outlook

  • Continued spending for the implementation of tools enabling omni-channel behavioral marketing, expanded analytics, and buyer/seller payment optimization.
  • Increased spending in business development activities to capture the market opportunity.
  • Stabilized macroeconomic factors that most directly influence the recovery rates of our most significant asset categories.
  • Marketplace seasonality converging back to historical trends.
  • Continued growth and expansion resulting from the continuing acceleration of broader market adoption of the online economy, particularly in our GovDeals and RSCG seller accounts and programs.

Challenges Ahead

  • Continued mix shift to consignment pricing model which will lower revenue as a percent of GMV but improve gross profit margins.
  • Continued variability in project size and timing within our CAG segment, especially as COVID-19 continues to impact the global economy and cross-border transactions.