NASDAQ$LQDT

Liquidity Services Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced fourth quarter fiscal year 2022 financial results.

Liquidity Services reported a 7% increase in revenue and a 16% increase in GMV compared to the prior year. GAAP Net Income decreased due to non-cash benefits realized last year, while Non-GAAP Adjusted EBITDA increased.

  • Gross Merchandise Volume (GMV) increased by 16% to $283.3 million.
  • Revenue increased by 7% to $75.2 million.
  • GAAP Net Income decreased to $8.3 million, with GAAP Diluted Earnings Per Share (EPS) decreasing to $0.25.
  • Non-GAAP Adjusted EBITDA increased to $12.3 million, with Non-GAAP Adjusted Diluted EPS decreasing to $0.19.

Headline financials

Total Revenue

$75.2M

Previous: $70.3M+7.0%
EPS (adj)

$0.19

Previous: $0.26-26.9%
Gross Merchandise Volume

$283M

Previous: $244M+15.9%
Registered Buyers

4.9M

No prior period
Auction Participants

775.0K

Previous: 584.0K+32.7%
Completed Transactions

240.0K

Previous: 192.0K+25.0%
Capital Expenditures

$1.83M

Previous: $1.93M-5.3%
Free Cash Flow

$11.9M

Previous: $9.22M+28.8%
Net Income

$8.3M

Previous: $32.8M-74.7%
Operating Income

$11.2M

Previous: $27.2M-58.6%
Gross Profit

$41.5M

Previous: $40.1M+3.4%
Cash & Equivalents

$96.1M

Previous: $106M-9.6%
Total Assets

$288M

Previous: $256M+12.7%
Stock-Based Comp

$2.33M

Previous: $1.15M+101.6%

Revenue & EPS history

Liquidity Services · Revenue · Quarterly

$75.2M

Q4 2022+7%vs Q4 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 provided Q1-FY23 guidance, expecting GMV to range from $265 million to $295 million, GAAP Net Income to range from $1.0 million to $4.0 million, GAAP Diluted EPS to range from $0.03 to $0.12, Non-GAAP Adjusted EBITDA to range from $7.0 million to $10.0 million, and Non-GAAP Adjusted Diluted EPS to range from $0.09 to $0.18.

Tailwinds

  • Year-over-year growth expected across all segments.
  • GovDeals is expected to continue to drive adoption of digital marketplace solutions.
  • RSCG segment expects to continue to diversify its seller base.
  • RSCG segment expects to be a key resource for retailers and their vendors to manage an inflationary environment.
  • RSCG segment expects to manage shifting consumer demand and changing product mix.

Headwinds

  • Uncertain economic business climate and global supply chain disruptions can impact volume and timing of assets made available for sale.
  • GovDeals' GMV may experience a decline sequentially, as the fiscal first quarter has been seasonally lower historically.
  • GovDeals' real estate initiative led by the acquisition of Bid4Assets experiences extended timelines for growth.
  • CAG's GMV is expected to decline sequentially, based on lower projected international spot purchase transaction activity.
  • Profit guidance for Q1-FY23 reflects slightly higher sales, technology and operations expense expected to support longer-term growth across segments.

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 2022

Historical avgQ4 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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