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Sep 30, 2020

Liquidity Services Q4 2020 Earnings Report

Reported consolidated GMV of $196.9 million and GAAP net income of $5.4 million.

Key Takeaways

Liquidity Services announced financial results for Q4 and FY 2020. Q4 performance reflected increasing customer adoption of e-commerce solutions across all business segments. The company recorded significant gains in GAAP Net Income, GAAP EPS and Non-GAAP Adjusted EBITDA.

Consolidated Fourth Quarter GMV was $196.9 million.

Revenue was $55.9 million.

GAAP Net Income was $5.4 million.

GAAP EPS was $0.16.

Total Revenue
$55.9M
Previous year: $58.8M
-4.9%
EPS
$0.23
Previous year: -$0.07
-428.6%
Gross Profit
$33.2M
Previous year: $31.5M
+5.5%
Cash and Equivalents
$76M
Previous year: $36.5M
+108.3%
Free Cash Flow
$6.7M
Previous year: -$171K
-4017.5%
Total Assets
$197M
Previous year: $187M
+5.0%

Liquidity Services

Liquidity Services

Forward Guidance

Financial results for Q1-FY21 are expected to improve year-over-year.

Positive Outlook

  • Continued spending as we launch incremental functionality across our family of marketplaces, for the implementation of tools enabling omni-channel behavioral marketing, expanded analytics, and buyer/seller payment optimization.
  • Benefits from restructuring and business realignment activities to streamline our organizational processes.
  • Continued mix shift to consignment pricing model which will lower revenue as a percent of GMV but improve gross profit margins.
  • Continued growth in our GovDeals segment.
  • Continued growth in our RSCG segment.

Challenges Ahead

  • Flat top line results and continued variability in project size and timing within our CAG segment, especially as COVID-19 continues to impact the global economy.