NASDAQ$LQDT

Liquidity Services Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Liquidity Services' Q2 2023 financial results were announced, demonstrating strong value for customers and shareholders.

Liquidity Services reported a 19% increase in revenue to $81.5 million and a 2% increase in GMV to $282.7 million. GAAP net income was $4.2 million, or $0.13 per share, while non-GAAP adjusted EBITDA increased to $9.9 million, or $0.20 per share.

  • GMV increased by 2% to $282.7 million, while revenue increased by 19% to $81.5 million.
  • GAAP Net Income was $4.2 million, with GAAP Diluted Earnings Per Share (EPS) of $0.13.
  • Non-GAAP Adjusted EBITDA was $9.9 million, and Non-GAAP Adjusted Diluted EPS was $0.20.
  • The company repurchased 750 thousand shares for $9.8 million during the quarter and maintains a cash balance of $101.2 million with zero financial debt.

Headline financials

Total Revenue

$81.5M

Previous: $68.3M+19.3%
EPS (adj)

$0.20

Previous: $0.17+17.6%
Registered Buyers

5.0M

Previous: 4.8M+4.5%
Auction Participants

797.0K

Previous: 829.0K-3.9%
Completed Transactions

209.0K

Previous: 245.0K-14.7%
Capital Expenditures

-$2.71M

Previous: -$3.57M+24.1%
Free Cash Flow

$1.53M

Previous: $8.4M-81.7%
Net Income

$4.25M

Previous: $12M-64.5%
Operating Income

$5.25M

Previous: $13M-59.6%
Gross Profit

$41.1M

Previous: $39.3M+4.5%
Cash & Equivalents

$95.6M

Previous: $84.3M+13.4%
Total Assets

$283M

Previous: $277M+2.3%
Stock-Based Comp

$1.8M

Previous: $1.99M-9.6%

Revenue & EPS history

Liquidity Services · Revenue · Quarterly

$81.5M

Q2 2023+19.3%vs Q2 2022
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

Liquidity Services · $76.3M total across 3 segments · Q4 2023

  • RSCG Revenue
    $49.6M
  • GovDeals Revenue
    $16.1M
  • CAG Revenue
    $10.7M

Forward guidance

For Q3-FY23, Liquidity Services anticipates GMV to range from $300 million to $330 million, GAAP Net Income between $3.0 million and $5.5 million, GAAP Diluted EPS from $0.09 to $0.16, Non-GAAP Adjusted EBITDA between $10.0 million and $13.0 million, and Non-GAAP Adjusted EPS from $0.16 to $0.24.

Tailwinds

  • Expected growth in GMV over the prior year period in most segments.
  • RSCG expects solid year-over-year fiscal third quarter growth in GMV and revenue.
  • RSCG segment direct profit margin as a percent of revenue is expected to improve sequentially compared to Q2, mainly from changes in the mix of products anticipated for sale.
  • GovDeals is expected to experience a seasonal peak in its personal property categories.
  • CAG expects to deliver year-over-year growth led by heavy equipment, industrial sales, and projects in EMEA.

Headwinds

  • Global supply chain uncertainties are disrupting international trade and energy markets.
  • Macroeconomic trends such as inflation, increased interest rates, fluctuations in foreign currency exchange rates, reduced consumer sentiment, and retailer inventory levels could affect Q3-FY23 performance.
  • Market disruptions impacting banks used by buyers and sellers could negatively affect the company's financial position.
  • GovDeals' total segment GMV is expected to be challenged by real estate foreclosure headwinds.
  • Variability in project size and timing within the CAG segment due to global macro uncertainty could continue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.2%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+50.0%

Q4 2020

Best reaction

-29.3%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-2.6%-9.8%+0.0%
Q1 2026+4.7%+4.6%+1.6%
Q4 2025+13.4%+33.5%+39.1%
Q2 2025-10.2%-21.1%-21.2%
Q1 2025+4.0%+7.8%-3.1%
Q4 2024+38.0%+21.0%+28.2%
Q3 2024+10.7%+12.5%+5.0%
Q2 2024-3.4%-0.2%-0.3%
Q1 2024-10.5%-6.9%+3.1%
Q4 2023-14.1%-13.0%-16.4%
Q3 2023+8.1%+10.1%+7.4%
Q2 2023+6.9%+10.3%+21.5%
Q1 2023+0.5%-9.5%-14.0%
Q4 2022-13.8%-10.0%-3.6%
Q3 2022-20.2%-18.8%-23.8%
Q2 2022-13.1%-13.9%-7.4%
Q1 2022-13.7%-11.0%-6.0%
Q4 2021-9.0%-5.3%-2.5%
Q3 2021+10.4%+17.2%+25.6%
Q2 2021+30.7%+38.1%+30.4%
Q1 2021-20.6%-21.3%-25.0%
Q4 2020+50.0%+39.0%+55.0%
Q3 2020+12.2%+29.7%+33.0%
Q2 2020-2.4%+6.5%+25.5%
Q1 2020-10.0%-10.8%-20.5%
Q4 2019-5.8%-14.7%-11.1%
Q3 2019+13.0%+6.0%+16.1%
Q2 2019+1.1%+0.0%-11.5%
Q1 2019-11.7%-15.4%-14.7%
Q4 2018+11.3%+0.5%+12.6%
Q3 2018-4.1%+0.7%-0.7%
Q2 2018-10.2%-7.9%-7.1%
Q1 2018+40.6%+45.8%+43.7%
Q4 2017-18.4%-24.8%-17.9%
Q3 2017-9.0%-9.0%-12.7%
Q2 2017-3.9%-3.3%-15.0%
Q1 2017-6.3%-10.5%-16.8%
Q4 2016+2.1%+8.5%+5.9%
Q3 2016+14.1%+14.2%+24.2%
Q2 2016+9.2%
Q1 2016-23.4%
Q4 2015-16.9%
Q3 2015+2.1%
Q2 2015+12.5%
Q1 2015+21.2%
Q4 2014-10.0%
Q3 2014+0.4%
Q2 2014-29.3%
Q1 2014+13.1%
Q4 2013-16.0%
Q3 2013-1.0%
Q2 2013+7.6%
Q1 2013-19.0%
Q4 2012-6.1%
Q3 2012-4.7%
Q2 2012+16.8%
Q1 2011-0.6%
Q1 2012+14.1%
Q4 2009+1.2%
Q2 2011+1.2%
Q4 2011+1.2%
Q3 2010+4.9%
Q3 2011+4.9%
Q4 2010+4.9%
Q2 2010+8.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro