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Jun 30, 2021
Liquidity Services Q3 2021 Earnings Report
Pioneering solutions within growing circular economy fueled strong third quarter results.
Key Takeaways
Liquidity Services reported a strong third quarter with significant growth across all segments. GMV increased by 88% to $244.7 million, and revenue rose by 46% to $69.7 million. GAAP Net Income was $8.4 million, resulting in a diluted EPS of $0.24.
Gross Merchandise Volume (GMV) increased by 88% to $244.7 million, and Revenue increased by 46% to $69.7 million.
GAAP Net Income increased to $8.4 million, and Non-GAAP Adjusted EBITDA increased to $13.3 million.
GAAP Diluted EPS increased to $0.24, and Non-GAAP Adjusted Diluted EPS increased to $0.31.
Cash of $112.7 million, up $25.1 million from Q2-FY21, $61.5 million trailing 12 month operating cash flow, and zero debt
Liquidity Services
Liquidity Services
Forward Guidance
Liquidity Services provided Q4-FY21 guidance, expecting continued growth and market adoption of online economy.
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 market opportunities.
- Stabilized macroeconomic factors that most directly influence the recovery rates of asset categories, such as transportation assets.
- 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.
- Continued growth in Machinio subscription activity.
Challenges Ahead
- Marketplace seasonality converging back to prior trends; sellers have historically made lower volumes of assets available for sale in our fiscal Q4 as compared to fiscal Q3.
- 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 the ability to conduct cross-border transactions.
- No change in the nature of the valuation allowance on our deferred tax assets in the United States.
- GMV - We expect GMV for Q4-FY21 to range from $225 million to $240 million.