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Jun 30, 2024
Liquidity Services Q3 2024 Earnings Report
Liquidity Services reported record GMV driven by market share gains and service expansion.
Key Takeaways
Liquidity Services announced its Q3 2024 financial results, featuring a record Gross Merchandise Volume (GMV) of $380.4 million, up 14%, and Revenue of $93.6 million, up 16%. The company reported GAAP Net Income of $6.0 million, or $0.19 per share, and Non-GAAP Adjusted EPS of $0.30.
Record Gross Merchandise Volume (GMV) of $380.4 million, up 14%, and Revenue of $93.6 million, up 16%.
Highest quarterly GAAP Net Income in Fiscal Year 2024 of $6.0 million, down $0.5 million, and GAAP Diluted Earnings Per Share (EPS) of $0.19, down $0.02.
Highest quarterly Non-GAAP Adjusted EBITDA in 10 years of $14.7 million, up $1.4 million, and Non-GAAP Adjusted EPS of $0.30, up $0.02.
Cash balances of $136.8 million with zero financial debt.
Liquidity Services
Liquidity Services
Liquidity Services Revenue by Segment
Revenue by Segment
GovDeals Revenue
CapyFin.comRSCG Revenue
CapyFin.comCAG Revenue
CapyFin.comMachinio & Software Solutions Revenue
CapyFin.com Forward Guidance
Liquidity Services anticipates double-digit consolidated GMV growth and solid overall performance. Q4-FY24 guidance includes GMV ranging from $330 million to $365 million, GAAP Net Income from $5.0 million to $7.0 million, GAAP Diluted EPS from $0.16 to $0.22, Non-GAAP Adjusted EBITDA from $12.0 million to $15.0 million, and Non-GAAP Adjusted EPS from $0.25 to $0.32.
Positive Outlook
- GovDeals revenue is expected to grow at a faster year-over-year rate than GMV due to expansion of more full-service consignment offerings compared to last year, including our acquisition of Sierra Auction in January 2024.
- RSCG is expected to drive substantial growth in our fiscal fourth quarter both year-over-year and sequentially relative to the third quarter results, with revenues growing faster than GMV.
- Machinio subscription-based business is also anticipated to continue to grow revenue by double digits year-over-year.
- Capital Assets segment is expected to remain steady year-over-year and show sequential growth.
- Operating expenses in sales, operations and technology are expected to be up year-over-year and sequentially relative to the fiscal third quarter.
Challenges Ahead
- Increased volumes in RSCG, mostly comprised of a mix of lower-touch product flows, are expected to generate improving bottom line results for RSCG yet have the effect of slightly lowering RSCG's segment direct profit as a percentage of revenue both year-over-year and sequentially.
- Fluctuations in the mix of purchase and consignment transactions can impact revenue as a percent of GMV and segment direct profit as a percentage of revenue.
- Variability in the inventory product mix handled by our RSCG segment can cause a change in revenues and/or segment direct profit as a percentage of revenue.
- Real estate transactions in our GovDeals segment can be subject to significant variability due to changes that include postponements or cancellations of scheduled or expected auction events and the value of properties to be included in the auction event.
- Continued variability in project size and timing within our CAG segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income