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Mar 31, 2020
Beyond Q1 2020 Earnings Report
Reported financial results with retail business benefiting from increased demand for home furnishings and blockchain companies progressing towards usable products.
Key Takeaways
Overstock.com reported a decrease in total net revenue by 4% year over year, but improved gross profit and net loss. The retail business benefited from increased demand, and blockchain companies progressed towards usable products.
Total net revenue decreased by 4% year over year.
Gross profit improved by 169 basis points year over year.
Net loss attributable to stockholders improved by $23 million year over year.
Cash and cash equivalents totaled $141 million at the end of the quarter.
Forward Guidance
The company anticipates both opportunities and challenges due to COVID-19, with potential risks to the tZERO platform from market conditions and benefits for blockchain companies solving pandemic-related problems. It is difficult to predict the duration of these impacts or how the evolving COVID-19 situation will affect the business in the future.
Positive Outlook
- Increased customer demand in key home furnishings categories.
- Increase in website traffic and new customers.
- Accelerated retail sales growth in April.
- Online-only platform and partner network allowed meeting surge in demand.
- Blockchain companies working to solve problems exacerbated by the pandemic.
Challenges Ahead
- Challenges with increased volume through customer service channels.
- Capacity issues from shipping carriers.
- Potential risks to the tZERO platform due to market depression.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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