NASDAQ$LQDT

Liquidity Services Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Achieved record GMV during the quarter driven by strong execution and market share gains.

Liquidity Services reported a 16% increase in revenue to $80.8 million and a 3% increase in GMV to $334.0 million. GAAP net income was $6.5 million, or $0.21 per share, while Non-GAAP Adjusted EBITDA was $13.3 million, up $1.5 million, and Non-GAAP Adjusted Diluted EPS was $0.28, up $0.07.

  • Gross Merchandise Volume (GMV) increased by 3% to $334.0 million.
  • Revenue increased by 16% to $80.8 million.
  • GAAP Net Income was $6.5 million, with GAAP Diluted Earnings Per Share (EPS) of $0.21.
  • Non-GAAP Adjusted EBITDA was $13.3 million, and Non-GAAP Adjusted Diluted EPS was $0.28.

Headline financials

Total Revenue

$80.8M

Previous: $69.9M+15.6%
EPS (adj)

$0.28

Previous: $0.21+33.3%
Registered Buyers

5.1M

Previous: 4.8M+5.3%
Auction Participants

924.0K

Previous: 884.0K+4.5%
Completed Transactions

252.0K

Previous: 253.0K-0.4%
Capital Expenditures

-$3.91M

Previous: -$6.29M+37.9%
Free Cash Flow

$2.58M

Previous: $10.1M-74.5%
Net Income

$6.49M

Previous: $16.4M-60.5%
Operating Income

$8.26M

Previous: $18.7M-55.8%
Gross Profit

$45.6M

Previous: $40.9M+11.3%
Cash & Equivalents

$98.1M

Previous: $88.3M+11.2%
Total Assets

$283M

Previous: $283M+0.1%
Stock-Based Comp

$2.14M

Previous: $1.88M+13.6%

Revenue & EPS history

Liquidity Services · Revenue · Quarterly

$80.8M

Q3 2023+15.6%vs Q3 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 Q4-FY23, Liquidity Services expects GMV to range from $290 million to $315 million, GAAP Net Income to range from $4.0 million to $6.5 million, GAAP Diluted EPS to range from $0.13 to $0.20, Non-GAAP Adjusted EBITDA to range from $10.0 million to $13.0 million, and Non-GAAP Adjusted EPS to range from $0.19 to $0.27.

Tailwinds

  • continued R&D spending to support omni-channel behavioral marketing, analytics, and buyer/seller payment optimization
  • spending in business development activities to capture market opportunities, targeting efficient payback periods
  • a longer-term trend of continued mix shift to the consignment model, which may lower revenue as a percent of GMV but can improve segment direct profit as a percentage of revenue
  • continued growth and expansion resulting from the continuing acceleration of broader market adoption of the digital economy, particularly in our GovDeals and RSCG seller accounts and programs, including the execution by RSCG on its business plans for AllSurplus Deals and its expanded distribution network
  • continued growth in our Machinio advertising subscription service and acceptance of other Machinio service offerings

Headwinds

  • variability in the inventory product mix handled by our RSCG segment, which can cause a change in revenues and/or segment direct profit as a percentage of revenue, including variability from changes in consumer sentiment, retailers increasing product flows to us on an episodic basis to solve capacity constraints at retailer warehouse or distribution centers and retailers decreasing product flows as they solve capacity constraints and return more product to store shelves or fulfillment centers
  • as growth in the foreclosed real estate category within the GovDeals segment occurs, take rates as a percentage of GMV are expected to become lower without significantly affecting segment direct profit as a percentage of revenue. GMV from real estate transactions can be subject to significant variability due to changes that include postponements or cancellations of scheduled or expected auction events, the value of properties to be included in the auction event, and the value of the properties that may be withdrawn due to the property holder curing their delinquency or taking other legal actions to delay the sale of their property
  • continued variability in project size and timing within our CAG segment
  • successful integration of Bid4Assets and execution by Bid4Assets on planned real estate auction activity and its business plan, including efforts underway with local and state governments to advance legislation that allows for online auctions for foreclosed and tax foreclosed real estate
  • our annual FY23 effective tax rate (ETR) is expected to range from approximately 25% to 31%. This range excludes any potential impacts from legislative changes to U.S. corporate tax rates that may be enacted during Q4-FY23; 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. We are not expecting a substantial increase to cash paid for income taxes due to our continued net operating loss carryforward position

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 2023

Historical avgQ3 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