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Sep 30, 2023
Liquidity Services Q4 2023 Earnings Report
Announced strong fourth quarter results with record annual GMV and highest full-year Non-GAAP Adjusted EBITDA performance since 2014.
Key Takeaways
Liquidity Services reported an 11% increase in GMV to $315.6 million and a 6% increase in revenue to $80.0 million for the fourth quarter of fiscal year 2023. GAAP net income was $6.3 million, or $0.20 per share, while Non-GAAP Adjusted EBITDA was $12.8 million, up $0.5 million, and Non-GAAP Adjusted Diluted EPS was $0.26, up 37%.
GMV increased by 11% to $315.6 million, and revenue increased by 6% to $80.0 million.
GAAP Net Income was $6.3 million, with GAAP Diluted Earnings Per Share (EPS) at $0.20.
Non-GAAP Adjusted EBITDA increased to $12.8 million, and Non-GAAP Adjusted Diluted EPS increased to $0.26.
Cash balances totaled $118.2 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.com Forward Guidance
For Q1-FY24, Liquidity Services anticipates GMV to range from $295 million to $325 million, GAAP Net Income to range from $1.5 million to $4.0 million, GAAP Diluted EPS to range from $0.05 to $0.12, Non-GAAP Adjusted EBITDA to range from $7.0 million to $10.0 million, and Non-GAAP Adjusted EPS to range from $0.12 to $0.19.
Positive Outlook
- GovDeals is expecting year-over-year growth that includes improved availability of vehicles for sale while it faced headwinds in that category last year.
- CAG is also expecting a solid year-over-year improvement in GMV from selected global industrial projects.
- Anticipate continued investment in our sales and technology initiatives in support of our marketplace enhancements, market share gains and long-term growth.
- Consolidated revenue as a percentage of GMV to remain in the mid twenty percent range, reflecting anticipated mix of business and marketplace asset categories.
- Segment direct profits as a percentage of total revenues to be in a range similar to the same quarter last year.
Challenges Ahead
- Fiscal first quarter results typically decline sequentially compared to the fiscal fourth quarter of the prior year.
- Operating expenses increase in the fiscal first quarter.
- The RSCG segment is currently receiving a higher volume of lower-value products than last year, while the broader consumer demand for retail goods has softened.
- Revenue is expected to increase at a lower rate than GMV as selected CAG projects are being conducted with partner organizations this year.
- Potential Impacts to GMV, Revenue, Segment Direct Profits, and ratios calculated using these metrics
- Our Q1-FY24 effective tax rate (ETR) is expected to range from approximately 28% to 34% and our full fiscal year FY24 ETR is expected to range from 26% to 32%. This range excludes any potential impacts from legislative changes to U.S. corporate tax rates that may be enacted; and potential impacts from items that have limited visibility and can be highly variable, including effects of stock compensation due to participant exercise activity and changes in our stock price.
Revenue & Expenses
Visualization of income flow from segment revenue to net income