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Jun 30, 2023
Liquidity Services Q3 2023 Earnings Report
Achieved record GMV during the quarter driven by strong execution and market share gains.
Key Takeaways
Liquidity Services reported a 16% increase in revenue to $80.8 million and a 3% increase in GMV to $334.0 million. GAAP net income was $6.5 million, or $0.21 per share, while Non-GAAP Adjusted EBITDA was $13.3 million, up $1.5 million, and Non-GAAP Adjusted Diluted EPS was $0.28, up $0.07.
Gross Merchandise Volume (GMV) increased by 3% to $334.0 million.
Revenue increased by 16% to $80.8 million.
GAAP Net Income was $6.5 million, with GAAP Diluted Earnings Per Share (EPS) of $0.21.
Non-GAAP Adjusted EBITDA was $13.3 million, and Non-GAAP Adjusted Diluted EPS was $0.28.
Forward Guidance
For Q4-FY23, Liquidity Services expects GMV to range from $290 million to $315 million, GAAP Net Income to range from $4.0 million to $6.5 million, GAAP Diluted EPS to range from $0.13 to $0.20, Non-GAAP Adjusted EBITDA to range from $10.0 million to $13.0 million, and Non-GAAP Adjusted EPS to range from $0.19 to $0.27.
Positive Outlook
- continued R&D spending to support omni-channel behavioral marketing, analytics, and buyer/seller payment optimization
- spending in business development activities to capture market opportunities, targeting efficient payback periods
- a longer-term trend of continued mix shift to the consignment model, which may lower revenue as a percent of GMV but can improve segment direct profit as a percentage of revenue
- continued growth and expansion resulting from the continuing acceleration of broader market adoption of the digital economy, particularly in our GovDeals and RSCG seller accounts and programs, including the execution by RSCG on its business plans for AllSurplus Deals and its expanded distribution network
- continued growth in our Machinio advertising subscription service and acceptance of other Machinio service offerings
Challenges Ahead
- variability in the inventory product mix handled by our RSCG segment, which can cause a change in revenues and/or segment direct profit as a percentage of revenue, including variability from changes in consumer sentiment, retailers increasing product flows to us on an episodic basis to solve capacity constraints at retailer warehouse or distribution centers and retailers decreasing product flows as they solve capacity constraints and return more product to store shelves or fulfillment centers
Historical Earnings Impact
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Avg. Return Before/After Earnings
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