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Mar 31, 2023
Liquidity Services Q2 2023 Earnings Report
Liquidity Services' Q2 2023 financial results were announced, demonstrating strong value for customers and shareholders.
Key Takeaways
Liquidity Services reported a 19% increase in revenue to $81.5 million and a 2% increase in GMV to $282.7 million. GAAP net income was $4.2 million, or $0.13 per share, while non-GAAP adjusted EBITDA increased to $9.9 million, or $0.20 per share.
GMV increased by 2% to $282.7 million, while revenue increased by 19% to $81.5 million.
GAAP Net Income was $4.2 million, with GAAP Diluted Earnings Per Share (EPS) of $0.13.
Non-GAAP Adjusted EBITDA was $9.9 million, and Non-GAAP Adjusted Diluted EPS was $0.20.
The company repurchased 750 thousand shares for $9.8 million during the quarter and maintains a cash balance of $101.2 million with zero financial debt.
Liquidity Services
Liquidity Services
Forward Guidance
For Q3-FY23, Liquidity Services anticipates GMV to range from $300 million to $330 million, GAAP Net Income between $3.0 million and $5.5 million, GAAP Diluted EPS from $0.09 to $0.16, Non-GAAP Adjusted EBITDA between $10.0 million and $13.0 million, and Non-GAAP Adjusted EPS from $0.16 to $0.24.
Positive Outlook
- Expected growth in GMV over the prior year period in most segments.
- RSCG expects solid year-over-year fiscal third quarter growth in GMV and revenue.
- RSCG segment direct profit margin as a percent of revenue is expected to improve sequentially compared to Q2, mainly from changes in the mix of products anticipated for sale.
- GovDeals is expected to experience a seasonal peak in its personal property categories.
- CAG expects to deliver year-over-year growth led by heavy equipment, industrial sales, and projects in EMEA.
Challenges Ahead
- Global supply chain uncertainties are disrupting international trade and energy markets.
- Macroeconomic trends such as inflation, increased interest rates, fluctuations in foreign currency exchange rates, reduced consumer sentiment, and retailer inventory levels could affect Q3-FY23 performance.
- Market disruptions impacting banks used by buyers and sellers could negatively affect the company's financial position.
- GovDeals' total segment GMV is expected to be challenged by real estate foreclosure headwinds.
- Variability in project size and timing within the CAG segment due to global macro uncertainty could continue.