NASDAQ$LQDT

Liquidity Services Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record quarterly GMV results, up 33%, fueled by real estate and high value equipment.

Liquidity Services announced strong Q3 fiscal year 2022 financial results, with a record Gross Merchandise Volume (GMV) of $325.0 million, up 33% year-over-year. GAAP Net Income increased to $16.4 million, and GAAP Diluted EPS rose to $0.50. The company's cash balance stands at $88.3 million with zero debt.

  • Gross Merchandise Volume (GMV) reached a record $325.0 million, a 33% increase year-over-year.
  • GAAP Net Income was $16.4 million, up $8.0 million from the previous year, with GAAP Diluted EPS at $0.50, up $0.26.
  • Non-GAAP Adjusted EBITDA was $11.9 million, and Non-GAAP Adjusted Diluted EPS was $0.21.
  • The company maintains a strong cash position with $88.3 million and zero debt, and repurchased $5.4 million of shares during the quarter.

Headline financials

Total Revenue

$69.9M

Previous: $69.7M+0.3%
EPS (adj)

$0.21

Previous: $0.31-32.3%
Gross Merchandise Volume

$325M

No prior period
Registered Buyers

4.8M

Previous: 4.0M+22.0%
Auction Participants

884.0K

Previous: 617.0K+43.3%
Completed Transactions

253.0K

Previous: 185.0K+36.8%
Capital Expenditures

-$6.29M

Previous: -$3.49M-80.4%
Free Cash Flow

$10.1M

Previous: $4.93M+105.2%
Net Income

$16.4M

Previous: $8.42M+94.9%
Operating Income

$18.7M

Previous: $8.59M+117.5%
Gross Profit

$40.9M

Previous: $41.1M-0.5%
Cash & Equivalents

$88.3M

Previous: $113M-21.6%
Total Assets

$283M

Previous: $238M+18.6%
Stock-Based Comp

$1.88M

Previous: $1.8M+4.5%

Revenue & EPS history

Liquidity Services · Revenue · Quarterly

$69.9M

Q3 2022+0.3%vs Q3 2021
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

The company expects GMV to range from $300 million to $330 million. GAAP Net Income is expected to range from $3.5 million to $6.5 million. GAAP Diluted Earnings Per Share are expected to range from $0.10 to $0.19. Non-GAAP Adjusted EBITDA is expected to range from $10.0 million to $13.0 million. Non-GAAP Adjusted Earnings Per Diluted Share is expected to range from $0.18 to $0.27 for Q4-FY22.

Tailwinds

  • Strong buyer demand for heavy equipment, vehicles, and industrial manufacturing equipment globally.
  • Expertise in diverse sectors, a broad buyer base, and global reach provide key advantages to clients.
  • New real estate category and technology-led solutions are expected to drive further market penetration.
  • RSCG is expected to be a key resource for retailers managing inflation and excess inventories.
  • CAG is expected to show year-over-year growth, including completion of a significant international industrial partner purchase transaction.

Headwinds

  • Global supply chains continue to experience heightened disruptions that could adjust the volume and timing of assets made available for sale.
  • GovDeals' seasonality may result in a GMV decline sequentially from its seasonally high third quarter.
  • Potential lower volumes and pricing of used vehicles may impact GovDeals' performance.
  • RSCG may face product source and mix changes that could result in lower segment gross profit as a percentage of total revenue.
  • An increased effective tax rate is expected to impact GAAP net income and EPS.

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 Q3 2022

Historical avgQ3 2022

+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%

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