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Sep 30, 2022
Liquidity Services Q4 2022 Earnings Report
Announced fourth quarter fiscal year 2022 financial results.
Key Takeaways
Liquidity Services reported a 7% increase in revenue and a 16% increase in GMV compared to the prior year. GAAP Net Income decreased due to non-cash benefits realized last year, while Non-GAAP Adjusted EBITDA increased.
Gross Merchandise Volume (GMV) increased by 16% to $283.3 million.
Revenue increased by 7% to $75.2 million.
GAAP Net Income decreased to $8.3 million, with GAAP Diluted Earnings Per Share (EPS) decreasing to $0.25.
Non-GAAP Adjusted EBITDA increased to $12.3 million, with Non-GAAP Adjusted Diluted EPS decreasing to $0.19.
Liquidity Services
Liquidity Services
Forward Guidance
The company provided Q1-FY23 guidance, expecting GMV to range from $265 million to $295 million, GAAP Net Income to range from $1.0 million to $4.0 million, GAAP Diluted EPS to range from $0.03 to $0.12, Non-GAAP Adjusted EBITDA to range from $7.0 million to $10.0 million, and Non-GAAP Adjusted Diluted EPS to range from $0.09 to $0.18.
Positive Outlook
- Year-over-year growth expected across all segments.
- GovDeals is expected to continue to drive adoption of digital marketplace solutions.
- RSCG segment expects to continue to diversify its seller base.
- RSCG segment expects to be a key resource for retailers and their vendors to manage an inflationary environment.
- RSCG segment expects to manage shifting consumer demand and changing product mix.
Challenges Ahead
- Uncertain economic business climate and global supply chain disruptions can impact volume and timing of assets made available for sale.
- GovDeals' GMV may experience a decline sequentially, as the fiscal first quarter has been seasonally lower historically.
- GovDeals' real estate initiative led by the acquisition of Bid4Assets experiences extended timelines for growth.
- CAG's GMV is expected to decline sequentially, based on lower projected international spot purchase transaction activity.
- Profit guidance for Q1-FY23 reflects slightly higher sales, technology and operations expense expected to support longer-term growth across segments.