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Jun 30, 2020
Liquidity Services Q3 2020 Earnings Report
Liquidity Services reported positive GAAP Net Income, GAAP EPS and Adjusted EBITDA due to improving top line trends and cost control measures.
Key Takeaways
Liquidity Services announced its Q3 FY2020 financial results, reporting a GAAP Net Income of $0.2 million and a Non-GAAP Adjusted EBITDA of $3.7 million. The company saw improving top line trends in the second half of the quarter and benefited from cost control measures.
GMV reached $130.1 million.
GAAP Revenue was $47.7 million.
GAAP Net Income was $0.2 million.
Non-GAAP Adjusted EBITDA was $3.7 million.
Liquidity Services
Liquidity Services
Liquidity Services Revenue by Segment
Revenue by Segment
GovDeals Revenue
CapyFin.comRSCG Revenue
CapyFin.comCAG Revenue
CapyFin.com Forward Guidance
Liquidity Services did not provide quarterly guidance due to the economic uncertainty and unknown impact of the global pandemic.
Positive Outlook
- Steady results in GovDeals segment as government facilities re-open.
- Steady performance in RSCG segment as retailers seek secondary channels.
- Increased opportunity in CAG segment as global COVID-19 restrictions are loosened.
- Increased adoption of our self-service model.
- Overall reduced operating expenses as we continue to operate with a reduced workforce and decreased travel.
Challenges Ahead
- Trends still depend on numerous evolving factors, including whether a second wave of the COVID-19 pandemic results in government and business closures.
- Sequentially, sales and marketing expenses are expected to increase as we reinvigorate our investments and plan for continued long-term growth.
- Decrease in our cash position compared to Q3FY20 as we make up for one-time deferrals in vendor payments.
- Stable buyer demand yet we anticipate lower average pricing for assets across our segments as buyers take conservative approach to spending.
- We are unable to accurately predict the extent to which the global COVID-19 pandemic will impact our business operations, financial performance and results of operations for our fourth quarter fiscal year 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income