NASDAQ$LQDT

Liquidity Services Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Liquidity Services recorded outstanding growth driven by strong demand and strategic investments.

Liquidity Services reported a strong Q4 2021 with a 24% increase in GMV and a 26% increase in revenue. GAAP Net Income increased significantly due to a tax benefit, and Non-GAAP Adjusted EBITDA also saw an increase.

  • GMV increased by 24% to $244.4 million.
  • Revenue increased by 26% to $70.3 million.
  • GAAP Net Income increased to $32.8 million, including a $24.6 million tax benefit.
  • Non-GAAP Adjusted EBITDA increased to $11.4 million.

Headline financials

Total Revenue

$70.3M

Previous: $55.9M+25.8%
EPS (adj)

$0.26

Previous: $0.23+13.0%
Gross Merchandise Volume

$244M

No prior period
Auction Participants

584.0K

No prior period
Completed Transactions

192.0K

No prior period
Capital Expenditures

$1.93M

Previous: $578K+234.1%
Free Cash Flow

$9.22M

Previous: $6.7M+37.6%
Net Income

$32.8M

Previous: $5.4M+507.4%
Operating Income

$27.2M

Previous: -$3.9M+797.2%
Gross Profit

$40.1M

Previous: $33.2M+20.8%
Cash & Equivalents

$106M

Previous: $76M+39.8%
Total Assets

$256M

Previous: $197M+30.0%
Stock-Based Comp

$1.15M

Previous: $1.88M-38.5%

Revenue & EPS history

Liquidity Services · Revenue · Quarterly

$70.3M

Q4 2021+25.8%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
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

Liquidity Services anticipates continued growth in GMV but expects increased costs and a higher effective tax rate to impact profit in Q1-FY22. The company expects growth in transaction volumes across segments and sustained positive macroeconomic factors to influence recovery rates.

Tailwinds

  • Continued R&D spending to support omni-channel behavioral marketing, expanded analytics, and buyer/seller payment optimization.
  • Increased spending in business development activities to capture market opportunities, targeting expected payback periods of 12 to 18 months.
  • Stabilized macroeconomic factors that most directly influence the recovery rates of asset categories, such as transportation assets.
  • Continued mix shift to consignment pricing model, which will lower revenue as a percent of GMV but can improve gross profit margins.
  • 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.

Headwinds

  • Profit guidance for Q1-FY22 is at or below the same period last year reflecting increased costs related to growing the capacity of our sales, marketing, product development and technology teams, and higher market-driven labor costs, to support future growth with operating leverage that is expected to improve throughout FY22 and beyond.
  • Anticipate a year-over-year decline in gross margins in Q1-FY22 due to near-term product mix changes in our RSCG segment.
  • Effective tax rate is expected to increase starting in Q1-FY22 to approximately 18-20% from 4.5% for FY21 when excluding the impact of the valuation allowance reversal.
  • Short-term variability in the inventory product mix within the RSCG segment, which can cause a decline in gross profit margins.
  • Continued variability in project size and timing within our CAG segment, especially as COVID-19 and its variants continue to impact the global economy and the ability to conduct cross-border transactions.

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 Q4 2021

Historical avgQ4 2021

+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