PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the quarter ended December 31, 2022, Liquidity Services reported total revenues of **$72.3 million**, an **8.4% increase** year-over-year, and a net income of **$4.0 million**, up from **$3.6 million** in the prior-year period [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2022, the company's total assets were **$269.2 million**, a decrease from **$288.1 million** on September 30, 2022, primarily driven by a decrease in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $76,166 | $96,122 | | Total current assets | $113,638 | $129,594 | | Total assets | $269,201 | $288,104 | | **Liabilities & Equity** | | | | Total current liabilities | $105,437 | $123,503 | | Total liabilities | $114,248 | $133,568 | | Total stockholders' equity | $154,953 | $154,536 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended December 31, 2022, total revenue increased by **8.4%** to **$72.3 million** compared to **$66.7 million** in the prior-year period, with net income rising to **$4.0 million** from **$3.6 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Total revenue | $72,282 | $66,707 | | Income from operations | $4,727 | $4,483 | | Net income | $3,967 | $3,602 | | Diluted income per common share | $0.12 | $0.10 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended December 31, 2022, net cash used in operating activities was **$10.7 million**, a significant decrease from the **$1.9 million** provided in the same period last year, while net cash used in investing activities decreased to **$3.0 million** Cash Flow Summary (in thousands) | Activity | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(10,659) | $1,871 | | Net cash used in investing activities | $(3,015) | $(13,021) | | Net cash used in financing activities | $(6,972) | $(3,841) | | Net decrease in cash and cash equivalents | $(19,956) | $(15,014) | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's four reportable segments, significant Cost of Goods Sold attribution to Amazon.com, Inc., goodwill from the Bid4Assets acquisition, and the status of its **$25.0 million** credit facility and **$7.2 million** common stock repurchases - The company operates through four reportable segments: **GovDeals**, **Retail Supply Chain Group (RSCG)**, **Capital Assets Group (CAG)**, and **Machinio**[31](index=31&type=chunk)[105](index=105&type=chunk) - Property purchased under contracts with Amazon.com, Inc. represented **57.3%** of consolidated Cost of Goods Sold for the three months ended December 31, 2022[41](index=41&type=chunk) - The acquisition of Bid4Assets on November 1, 2021, resulted in goodwill of approximately **$30.1 million**, which is included in the GovDeals reportable segment[43](index=43&type=chunk)[47](index=47&type=chunk) - As of December 31, 2022, the company had a **$25.0 million** credit facility with no outstanding borrowings[70](index=70&type=chunk)[72](index=72&type=chunk) - During the quarter, the company repurchased **531,819 shares** for **$7.2 million**, and a new stock repurchase plan of up to **$8.4 million** was authorized on December 6, 2022[89](index=89&type=chunk)[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports an **8.4% increase** in total revenue for the quarter, driven by strong performance in the RSCG segment, which offset declines in the CAG segment and modest decreases in GovDeals, with Gross Merchandise Volume (GMV) reaching **$270.8 million** Key Business Metrics | Metric | Q1 FY23 (ended Dec 31, 2022) | Q1 FY22 (ended Dec 31, 2021) | | :--- | :--- | :--- | | Gross Merchandise Volume (GMV) | $270.8 million | $260.2 million | | Registered Buyers (at period end) | 5.0 million | 4.7 million | | Auction Participants | 744,000 | 642,000 | | Completed Transactions | 214,000 | 211,000 | - Macroeconomic challenges, including supply chain constraints in new vehicle production, are limiting the supply of used vehicles for sale and creating volatility in used car prices[117](index=117&type=chunk) - The company identifies several positive long-term industry trends, including the growth of online retail returns, increased need for corporate sustainability solutions, and rising demand for low-touch online transaction solutions[123](index=123&type=chunk) Non-GAAP Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net income | $3,967 | $3,602 | | EBITDA | $7,577 | $6,883 | | Non-GAAP Adjusted EBITDA | $9,842 | $9,374 | [Segment Results](index=27&type=section&id=Segment%20Results) The RSCG segment was the primary growth driver, with revenue increasing **18.9%** due to client program diversification, while the Machinio segment also grew by **15.3%** from higher subscriptions Segment Performance Summary (in thousands) | Segment | Revenue Q1 FY23 | Revenue Q1 FY22 | % Change | | :--- | :--- | :--- | :--- | | GovDeals | $13,607 | $13,984 | (2.7%) | | RSCG | $46,015 | $38,684 | 18.9% | | CAG | $9,393 | $11,207 | (16.2%) | | Machinio | $3,267 | $2,832 | 15.3% | - GovDeals revenue decreased due to macroeconomic challenges slowing the supply of used vehicles, despite a GMV increase from real estate category expansion[152](index=152&type=chunk) - RSCG revenue and GMV grew due to continued diversification in client programs and expanded buyer channels[153](index=153&type=chunk) - CAG revenue and GMV decreased primarily due to project timing and the availability of international spot purchase transactions[154](index=154&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended the quarter with **$76.2 million** in cash and cash equivalents and an undrawn **$25.0 million** credit facility, repurchasing **$7.2 million** of its stock while experiencing negative cash flow from operations of **$10.7 million** - As of December 31, 2022, the company had **$76.2 million** in cash and cash equivalents[167](index=167&type=chunk) - The company maintains a **$25.0 million** Credit Agreement, which was undrawn during the quarter and had full availability as of December 31, 2022[170](index=170&type=chunk) - The company repurchased **531,819 shares** for **$7.2 million** during the quarter and had **$7.8 million** of remaining share repurchase authorization[176](index=176&type=chunk) - The **$12.6 million** decrease in cash from operating activities was mainly due to a net decrease of **$18.7 million** in cash flows associated with accounts payable and payables to sellers[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates and foreign currency exchange rates, with a hypothetical **100 basis point** decline in interest rates impacting pre-tax earnings by less than **$1.0 million** annually and a **10%** adverse movement in foreign exchange rates reducing total expected revenues by approximately **1%** - A hypothetical **100 basis point** decline in interest rates would impact pre-tax earnings by less than **$1.0 million** on an annualized basis[179](index=179&type=chunk) - A hypothetical **10%** decrease in foreign exchange rates would reduce total expected revenues by approximately **1%**[181](index=181&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of December 31, 2022, concluding they were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[183](index=183&type=chunk) - No material changes occurred in the company's internal controls over financial reporting during the three months ended December 31, 2022[184](index=184&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in two separate legal matters with former employees alleging wrongful termination based on gender, race, and age, with the company believing the claims are without merit and unable to estimate potential liability - A former VP of Human Resources has filed a lawsuit alleging wrongful termination based on gender and race, which is proceeding after a partial denial of the company's motion for summary judgment[101](index=101&type=chunk) - A former Chief Marketing Officer has filed a lawsuit alleging wrongful termination based on race and age, with the company believing these claims are without merit[103](index=103&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2022 - No material changes to risk factors have occurred since the last Annual Report on Form 10-K[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities, repurchased **531,819 shares** for **$7.2 million** during the quarter, and authorized a new stock repurchase plan of up to **$8.4 million** on December 6, 2022 Issuer Purchases of Equity Securities (Q1 FY23) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | Oct 2022 | — | N/A | $6.6 | | Nov 2022 | — | N/A | $6.6 | | Dec 2022 | 531,819 | $13.53 | $7.8 | | **Total** | **531,819** | | | - On December 6, 2022, the Board of Directors authorized a new stock repurchase plan of up to **$8.4 million**[192](index=192&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) The report includes several exhibits, such as the company's amended bylaws, forms of executive employment and indemnification agreements, and certifications by the CEO and CFO as required by the Sarbanes-Oxley Act - Key exhibits filed include the Amended and Restated Bylaws, forms of executive employment and change in control agreements, and CEO/CFO certifications[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)

Part I [Business](index=4&type=section&id=Item%201.%20Business) Liquidity Services operates as a global commerce company with marketplace platforms for surplus assets, positioning itself within the circular economy FY 2022 Performance Overview | Metric | FY 2022 | Growth | | :--- | :--- | :--- | | Gross Merchandise Volume (GMV) | $1,145 million | - | | Revenue | $280.1 million | - | | Registered Buyers | 4.9 million | 22% YoY | - The company's business is organized into four reportable segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio[13](index=13&type=chunk) - On November 1, 2021, the company acquired Bid4Assets, Inc., an online marketplace for real property auctions for government entities, to bolster its GovDeals segment[14](index=14&type=chunk) - The company's growth strategy, RISE, is built on four pillars: Recovery Maximization, Increase Volume, Service Expansion, and Expense Leverage[35](index=35&type=chunk) - The RSCG segment has multiple vendor contracts with Amazon.com, Inc., which accounted for **55% of the company's consolidated cost of goods sold** in fiscal year 2022[70](index=70&type=chunk) - As of September 30, 2022, the company had **735 employees worldwide**, with the majority (91%) located in North America[73](index=73&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces various business, operational, legal, regulatory, and general financial risks, including dependency on key vendors and asset sourcing, intense competition, and potential goodwill impairment - A significant portion of purchased inventory is acquired through vendor contracts with Amazon.com, Inc., with these purchases representing **55% of cost of goods sold in FY2022**, and disruption to this relationship could materially harm revenues and operating results[94](index=94&type=chunk) - The business faces intense competition from other e-commerce platforms, auction websites, traditional liquidators, and government agencies' own sales websites[68](index=68&type=chunk)[96](index=96&type=chunk) - The company is exposed to risks from its international operations, including local economic and political conditions, government regulations, foreign currency exchange fluctuations, and compliance with laws like the U.S. Foreign Corrupt Practices Act[123](index=123&type=chunk)[124](index=124&type=chunk)[126](index=126&type=chunk) - The company must maintain the privacy and security of personal and business information against increasing cybersecurity threats, such as phishing and ransomware attacks, to avoid reputational damage, litigation, and regulatory action[107](index=107&type=chunk)[108](index=108&type=chunk) - Under the purchase transaction model, the company assumes inventory and credit risk, which is significant for assets subject to rapid technological change, obsolescence, and price erosion[112](index=112&type=chunk) - As of September 30, 2022, the company carried **$88.9 million in goodwill** on its balance sheet, which is subject to impairment risk from adverse changes in the business climate or other factors[160](index=160&type=chunk) [Unresolved Staff Comments](index=34&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[161](index=161&type=chunk) [Properties](index=34&type=section&id=Item%202.%20Properties) The company leases numerous properties for its operations, including its corporate headquarters and various warehouses, and owns a significant warehouse in North Carolina Leased Properties | Type | Location | Segment | Square Feet | Lease Expiration | | :--- | :--- | :--- | :--- | :--- | | Corp. HQ | Bethesda, MD | Corporate | 7,774 | Apr 2023 | | Warehouse | Plainfield, IN | RSCG | 187,704 | Apr 2024 | | Warehouse | Garland, TX | RSCG | 127,144 | Jan 2026 | | Warehouse | Pittston, PA | RSCG | 108,536 | Jan 2027 | | Warehouse | North Las Vegas, NV | RSCG | 102,400 | Jun 2026 | - The company owns a **420,000 square foot warehouse** located in North Wilkesboro, North Carolina[161](index=161&type=chunk) [Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company may be involved in litigation from time to time in the ordinary course of business, with specific details available in Note 15 of the financial statements - Information regarding the Company's legal proceedings can be found in Note 15 - Legal Proceedings, of the accompanying Notes to the Consolidated Financial Statements[162](index=162&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[162](index=162&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under LQDT, has not paid cash dividends, and has an active stock repurchase program - The company's common stock has traded on the Nasdaq Stock Market under the symbol LQDT since February 23, 2006[163](index=163&type=chunk) - The company has not paid any cash dividends on its common stock and has no present intention to do so[166](index=166&type=chunk) - On May 13, 2022, the Board authorized a new stock repurchase plan of up to **$12 million**, with **$6.6 million** remaining available under this plan as of September 30, 2022[171](index=171&type=chunk) - On December 6, 2022, the Board authorized the repurchase of up to an additional **$8.4 million** of common stock through December 31, 2024[171](index=171&type=chunk)[278](index=278&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, macroeconomic impacts, industry trends, revenue models, segment-level operating results, liquidity, capital resources, and non-GAAP financial measures [Results of Operations](index=42&type=section&id=Results%20of%20Operations) For fiscal year 2022, consolidated revenue increased to $280.1 million and GMV to $1.15 billion, while net income decreased due to a prior-year tax benefit, despite a non-cash gain from an acquisition earn-out adjustment Consolidated Financial Performance (in millions, except EPS) | Metric | FY 2022 | FY 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $280.1M | $257.5M | 8.7% | | Gross Profit | $160.6M | $149.9M | 7.2% | | Income from Operations | $47.4M | $27.2M | 74.5% | | Net Income | $40.3M | $50.9M | (20.9)% | | Diluted EPS | $1.20 | $1.45 | (17.2)% | Segment Revenue Performance (in millions) | Segment | FY 2022 Revenue | FY 2021 Revenue | % Change | | :--- | :--- | :--- | :--- | | GovDeals | $59.4M | $49.6M | 19.7% | | RSCG | $166.1M | $158.8M | 4.6% | | CAG | $42.6M | $39.6M | 7.4% | | Machinio | $12.1M | $9.6M | 26.4% | - GovDeals revenue grew **19.7%** due to a **44.4%** increase in GMV, driven by new sellers and higher volumes in transportation and real estate, including contributions from the Bid4Assets acquisition[209](index=209&type=chunk) - FY2022 results include a **$24.5 million** non-cash gain from a reduction in the fair value of the Bid4Assets earn-out liability[217](index=217&type=chunk) - The decrease in net income from FY2021 to FY2022 was primarily due to a **$27.9 million** release of the valuation allowance on U.S. deferred tax assets in FY2021, which created a large tax benefit in that year[218](index=218&type=chunk) [Non-GAAP Financial Measures](index=47&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA as supplemental performance measures, with Non-GAAP Adjusted EBITDA at $42.7 million for FY2022, adjusted for various non-cash and acquisition-related items Non-GAAP Financial Performance (in thousands) | (in thousands) | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | Net income (loss) | $40,324 | $50,949 | $(3,774) | | **Non-GAAP EBITDA** | **$58,101** | **$34,472** | **$2,740** | | **Non-GAAP Adjusted EBITDA** | **$42,747** | **$42,888** | **$9,013** | - Non-GAAP Adjusted EBITDA is calculated by adjusting Non-GAAP EBITDA for stock-based compensation, acquisition costs, business realignment expenses, and fair value adjustments to acquisition earn-outs[227](index=227&type=chunk)[232](index=232&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, the company had $96.1 million in cash, $44.8 million in operating cash flow, an undrawn $25.0 million credit facility, and utilized capital for the Bid4Assets acquisition and share repurchases - The company held **$96.1 million** in cash and cash equivalents as of September 30, 2022[233](index=233&type=chunk) Cash Flow Summary (in millions) | (in millions) | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $44.8 | $65.4 | | Net cash used in investing activities | $(21.1) | $(1.0) | | Net cash used in financing activities | $(31.9) | $(34.7) | - On November 1, 2021, the company acquired Bid4Assets for approximately **$14.7 million** in cash (net) and potential earn-out consideration up to **$37.5 million**[241](index=241&type=chunk)[242](index=242&type=chunk) - The company repurchased a total of **1,567,277 shares** for **$25.4 million** during fiscal year 2022[463](index=463&type=chunk)[464](index=464&type=chunk) - The company maintains a **$25.0 million** Credit Agreement due March 31, 2024, with no outstanding indebtedness as of September 30, 2022[236](index=236&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks primarily from interest rate sensitivity and foreign currency exchange rate fluctuations, with a hypothetical 10% decrease in foreign exchange rates estimated to reduce total revenues by approximately 1% - The company's primary market risks are interest rate sensitivity on its cash and investments and foreign currency exchange rate sensitivity from its international operations[254](index=254&type=chunk)[255](index=255&type=chunk) - A hypothetical **10% decrease** in foreign exchange rates is estimated to reduce total revenues by **approximately 1%**[256](index=256&type=chunk) [Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section indicates that the consolidated financial statements and accompanying notes are included in Part IV, Item 15(a)(1) of the Annual Report - The consolidated financial statements and accompanying notes are included in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K[257](index=257&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=51&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[257](index=257&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of September 30, 2022, excluding the recently acquired Bid4Assets from the internal control assessment scope - Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were **effective**[261](index=261&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of September 30, 2022[266](index=266&type=chunk) - The assessment of internal control over financial reporting excluded the newly acquired Bid4Assets, which was acquired on November 1, 2021[264](index=264&type=chunk)[272](index=272&type=chunk) [Other Information](index=56&type=section&id=Item%209B.%20Other%20Information) On December 6, 2022, the Board of Directors authorized an additional $8.4 million for the stock repurchase program through December 31, 2024 - On December 6, 2022, the Board authorized an additional **$8.4 million** for the stock repurchase program, running through December 31, 2024[278](index=278&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=56&type=section&id=Item%2010-14) Information for Items 10 through 14 is incorporated by reference from the company's Proxy Statement for its 2023 Annual Meeting of Stockholders - Items 10, 11, 12, 13, and 14 are incorporated by reference from the Company's Proxy Statement for its 2023 Annual Meeting of Stockholders[280](index=280&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=57&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section contains the company's consolidated financial statements, the reports of the independent registered public accounting firms (Deloitte & Touche LLP and Ernst & Young LLP), and a list of all exhibits filed as part of the Form 10-K report [Financial Statements](index=58&type=section&id=Financial%20Statements) The consolidated financial statements for the fiscal year ended September 30, 2022, include various financial statements and notes, with an unqualified opinion from Deloitte & Touche LLP on both the financial statements and internal control effectiveness Consolidated Balance Sheet Highlights (in thousands) | (in thousands) | Sept 30, 2022 | Sept 30, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$288,104** | **$255,576** | | Total Current Assets | $129,594 | $131,842 | | Goodwill | $88,910 | $59,872 | | **Total Liabilities** | **$133,568** | **$120,561** | | Total Current Liabilities | $123,503 | $109,173 | | **Total Stockholders' Equity** | **$154,536** | **$135,015** | - The independent auditor, Deloitte & Touche LLP, identified the valuation of the Bid4Assets earn-out obligation and the complexity of revenue recognition as critical audit matters[293](index=293&type=chunk)[297](index=297&type=chunk) [Form 10-K Summary](index=102&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary of the Form 10-K report - None[516](index=516&type=chunk)

Financial Data and Key Metrics Changes - In Q4 2022, the company reported GMV of $283.3 million, up 16% from $244.4 million in the same quarter last year [15] - Revenue for Q4 2022 was $75.2 million, an increase of 7% from $70.3 million in the same quarter last year [15] - GAAP net income for Q4 2022 was $8.3 million, resulting in diluted GAAP EPS of $0.25 [16] - Non-GAAP adjusted EBITDA for Q4 2022 was $12.3 million, up from the same quarter last year [17] Business Line Data and Key Metrics Changes - The GovDeals segment saw a 20% increase in GMV and an 8% increase in revenue compared to the same quarter last year [16] - The Retail segment experienced a 10% increase in GMV and a 6% increase in revenue [16] - The CAG segment reported a 13% increase in GMV and a 6% increase in revenue [16] - The Machinio segment's revenue was up 18% [16] Market Data and Key Metrics Changes - The company noted a record number of auction participants and registered buyers, with increases of 34% and 24% year-over-year, respectively [5] - The registered buyer base grew to a record 4.9 million, reflecting strong interest in the company's platform [7] Company Strategy and Development Direction - The company aims to reach $1.5 billion in annualized GMV and expand technology-enabled asset-light services [7] - The GovDeals segment is set to launch a next-generation marketplace in 2023, enhancing user experience and increasing recovery rates [9] - The Retail segment is focusing on diversifying its seller base and leveraging new distribution centers to improve margins [11] Management Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from vehicle supply constraints and low conversion rates in the government real estate vertical but expects normalization in 2023 [6][20] - The company remains confident in its business model and anticipates better visibility on growth as economic conditions stabilize [18] - Guidance for Q1 FY 2023 includes GMV expectations between $265 million and $295 million, with GAAP net income projected between $1 million and $4 million [21] Other Important Information - The company has $97.9 million in cash and cash equivalents, zero debt, and a $25 million available borrowing capacity [18] - The company has increased its authorized share repurchase capacity to $15 million [14] Q&A Session Summary Question: Impact of vehicle supply constraints on GMV - Management indicated that vehicle supply issues have reduced GMV by $10 million and that local policies have deferred real estate sales, which they expect to normalize in 2023 [23][25][26] Question: Details on the next-generation GovDeals marketplace - The new marketplace will improve user experience and utilize AI tools to enhance asset visibility, which is expected to increase GMV [27][29] Question: Ideal economic scenario for the Retail segment - A robust growth in online retail and a bargain-hunting environment are seen as beneficial for the Retail segment [31][32] Question: Potential impact of increased vehicle supply from competitors - Management noted that additional vehicle supply could create new opportunities for their marketplace as dealers seek to monetize unsold inventory [36][38] Question: Plans for expanding mindshare with customers - The company is focusing on targeted brand awareness campaigns and leveraging data insights to enhance communication with potential clients [39][40]

Liquidity Services, Inc. (NASDAQ:LQDT) Q3 2022 Earnings Conference Call August 4, 2022 10:30 AM ET Company Participants Bill Angrick - Chairman and Chief Executive Officer Jorge Celaya - Executive Vice President and Chief Financial Officer Conference Call Participants George Sutton - Craig-Hallum Gary Prestopino - Barrington Research Operator Welcome to the Liquidity Services Third Quarter of Fiscal Year 2022 Financial Results Conference Call. My name is Vanessa and I will be your operator for today’s call. ...

Liquidity Services, Inc. (NASDAQ:LQDT) Q2 2022 Earnings Conference Call May 5, 2022 10:30 AM ET Company Participants Bill Angrick - Chairman and Chief Executive Officer Jorge Celaya - Executive Vice President and Chief Financial Officer Conference Call Participants Gary Prestopino - Barrington Research Operator Welcome to Liquidity Services Inc. Second Quarter of Fiscal Year 2022 Financial Results Conference Call. My name is James and I will be your operator for today’s call. Please note that this conferenc ...

Company Overview - Liquidity Services operates a B2B e-commerce marketplace for surplus assets, promoting the Circular Economy[6] - The company has over 15,000 trusted clients worldwide and has completed over 800,000 transactions annually[9] - Liquidity Services has completed over $9 billion in transactions[9] Market Performance - In Q2-FY22, AllSurplus marketplace experienced a +696% increase in closed transactions and a +478% increase in auction participants[28] - Machinio Segment revenue grew by 29% in Q2-FY22 due to subscriber growth[40] - Bid4Assets has completed the sale of over $1 billion in assets since inception[33] Financial Highlights - For the three months ended March 31, 2022, Net Income was $12 million[45] - Q2 FY22 Adjusted EBITDA was $9215 thousand[51] - GovDeals accounted for 65% of the company's GMV mix in Q2 FY22[49]