Liquidity Services (LQDT) Q2 2025 Earnings Call May 08, 2025 10:30 AM ET Speaker0 Welcome to the Liquidity Services, Inc. Second Quarter of Fiscal Year twenty twenty five Financial Results Conference Call. My name is Michelle, and I'll be your operator for today's call. Please note that this call is being recorded. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. I will now turn the call over to Michael Patrick, Liquidity Services' Vice Presiden ...

Exhibit 99.1 "Our team made significant progress expanding our market presence and enhancing our service offerings, notwithstanding emerging economic uncertainty. GovDeals successfully attracted new, higher-volume clients, who previously relied on full- service auctioneers, by implementing innovative hybrid solutions that leverage our scalable marketplaces. RSCG expanded our relationships with sellers across categories and geographies, with solid operating leverage from optimizing our warehouse network and ...

Innovative Solutions Continue to Drive Market Share Expansion and GrowthBETHESDA, Md., May 08, 2025 (GLOBE NEWSWIRE) -- Liquidity Services (NASDAQ:LQDT; www.liquidityservices.com), a leading global commerce company powering the circular economy, today announced its financial results for its fiscal quarter ended March 31, 2025, as compared to the corresponding prior year quarter: Gross Merchandise Volume (GMV) of $367.4 million, up 15%, and Revenue of $116.4 million, up 27%GAAP Net Income of $7.1 million, up ...

BETHESDA, Md., April 03, 2025 (GLOBE NEWSWIRE) -- Liquidity Services (NASDAQ:LQDT), a leading global commerce company powering the circular economy, today announced that it expects to report its second quarter fiscal year 2025 results prior to market open on Thursday, May 8, 2025. Bill Angrick, Chairman and CEO, and Jorge Celaya, EVP and CFO, will then host a conference call to review the results at 10:30 AM Eastern Time. To participate in the conference call, please register here to receive the dial-in num ...

Liquidity Services, Inc. (NASDAQ: LQDT ) has had a hot year, with the share price rising 71.70%, even after a price slump in the past month. Going forward, I expect the price to keep rising as this growthRobert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdr ...

BETHESDA, Md., March 13, 2025 (GLOBE NEWSWIRE) -- Liquidity Services (NASDAQ:LQDT), a leading global commerce company powering the circular economy, has announced it will conduct a second sale in China on behalf of a leading global energy enterprise. In partnership with Aaron Industrial Solutions (AIS), a global auctioneer, liquidator, and asset manager, this sale, which contains 2x MAN Diesel & Turbo SE DK080/250R Industrial Steam Turbines and 1x Unused Steam Turbine Rotor & Accessories, builds upon the in ...

BETHESDA, Md., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Liquidity Services, (NASDAQ:LQDT) which operates the world's largest B2B e-commerce marketplace platform for surplus asset sales, today announced a strategic partnership with Biocom California, the state's premier life science association representing over 1,800 members. As the newest addition to the Core by Biocom California savings portfolio, Liquidity Services will provide member companies with unique opportunities to recapture critical capital and secure ...

All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this document and are expressly qualified in their entirety by the cautionary statements included in this document. Except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances occurring after the date of this document or to reflect the occurrence of unanticipated events. To supplement our consolidated fin ...

Financial Data and Key Metrics Changes - The company reported a record quarterly GMV of $386.1 million, up 26% from $305.9 million in the same quarter last year [18] - Revenue increased to $122.3 million, up 72% from $71.3 million last year, with revenue growth outpacing GMV growth [19] - GAAP net income was $5.8 million, up 205%, and non-GAAP adjusted EBITDA was $13.1 million, up 81% year over year [20] Business Line Data and Key Metrics Changes - The retail segment's GMV increased by 65%, with revenue doubling at 101% growth, and direct profit up 31% [21] - The Capital Assets Group (CAG) segment saw GMV growth of 31%, revenue growth of 26%, and direct profit growth of 27% [21] - The GovDeals segment's GMV was up 11%, revenue up 29%, and direct profit up 25% [22] - Machinio's revenue and direct profit each increased by 10% [22] Market Data and Key Metrics Changes - The company experienced a 13% year-over-year increase in auction participants, indicating strong demand for value-priced goods [9] - The GovDeals segment added notable new sellers, including government entities from various regions, contributing to GMV growth [11] Company Strategy and Development Direction - The company aims to achieve $2 billion in annual GMV by focusing on increasing sales volume, expanding buyer base, and executing acquisitions [15] - The acquisition of Auction Software and Simple Auction Site is expected to enhance software development capabilities and market reach [14] Management's Comments on Operating Environment and Future Outlook - Management noted that persistent inflation has driven buyers to platforms offering value-priced goods, contributing to market share expansion [32] - The company anticipates continued solid growth in the second quarter of fiscal year 2025, with GMV expected to range from $360 million to $390 million [25] Other Important Information - The company ended the quarter with $139.1 million in cash and equivalents, zero debt, and $17.5 million in available borrowing capacity [20] - The guidance for GAAP net income for the second quarter is expected to be between $5.5 million and $8 million [26] Q&A Session Summary Question: How much of the growth is due to expanding market share versus better market conditions? - Management indicated that market share growth is due to increased access to goods and categories, with persistent inflation driving demand for value-priced goods [32] Question: What impact do tariffs have on the business? - Management suggested that the scarcity of products in various categories could have a neutral to positive effect on the business [35] Question: Can you elaborate on the Simple Auction acquisition? - The acquisition is seen as a way to enhance the ecosystem by providing tools for resellers and expanding into new categories [36][39] Question: Is there an increased flow of vehicles coming through GovDeals? - Vehicle flow has normalized, contributing to results, but the primary growth driver has been in non-vehicle categories [48] Question: How much of the GMV increase came from new accounts? - Growth in GMV was attributed to both new sellers and existing relationships, with a focus on expanding the circular economy in retail [52] Question: What is the revenue model for the auction software business? - The model includes both SaaS revenue and a percentage of GMV from transactions facilitated through the platform [54] Question: How will the auction platform be leveraged across business segments? - The platform is expected to serve various segments, including retail and Machinio, by providing auction capabilities to resellers [58][60]

Financial Performance - Total consolidated revenue increased by $51.0 million, or 71.5%, from $71.3 million in Q4 2023 to $122.3 million in Q4 2024[130]. - Purchase revenues rose by $46.6 million, or 128.6%, reaching $82.8 million in Q4 2024 compared to $36.2 million in Q4 2023[130]. - Net income for the three months ended December 31, 2024, was $5.81 million, a significant increase from $1.91 million in the same period of 2023, representing a 204% growth[144]. - Non-GAAP Adjusted EBITDA for the same period was $13.11 million, up from $7.25 million in 2023, reflecting an increase of 81%[144]. - Income from operations surged by $5.4 million, or 330.3%, to $7.1 million in Q4 2024[130]. - Net income grew by $3.9 million, or 204.7%, reaching $5.8 million in Q4 2024[130]. Transaction Metrics - The gross merchandise volume (GMV) for the three months ended December 31, 2024, was $386.1 million, compared to $305.9 million for the same period in 2023, reflecting a significant increase[113]. - During the three months ended December 31, 2024, the company completed 253,000 transactions, up from 239,000 transactions in the same period of 2023[117]. - The number of auction participants increased to 960,000 for the three months ended December 31, 2024, compared to 848,000 in the same period of 2023[116]. - The consignment model accounted for 79.8% of the consolidated GMV for the three months ended December 31, 2024, while purchase model transactions represented 20.2%[109][110]. Revenue Breakdown - Total revenues for the three months ended December 31, 2024, included 67.7% from purchase revenues and 27.0% from consignment revenues[110]. - Other fee revenues accounted for 5.4% of total revenues for the three months ended December 31, 2024, down from 9.6% in the same period of 2023[112]. - GovDeals segment revenue increased by $4.6 million, or 29.1%, driven by a $21.7 million increase in GMV[132]. - RSCG segment revenue doubled, increasing by $44.0 million, or 100.5%, due to a $43.2 million rise in GMV[133]. - CAG segment revenue rose by $2.0 million, or 25.7%, supported by a $15.3 million increase in GMV[134]. Expenses and Costs - Cost of goods sold increased by $40.6 million, or 128.9%, totaling $72.2 million in Q4 2024[136]. - Technology and operations expenses increased by $3.2 million, or 22.3%, primarily due to higher transaction volumes[137]. - Sales and marketing expenses grew by $1.8 million, or 13.8%, reflecting market share expansion efforts[138]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, totaled $128.7 million, with an additional $10.4 million in short-term investments, indicating sufficient liquidity for at least one year[146]. - Net cash used in operating activities increased to $12.1 million in Q4 2024 from $8.9 million in Q4 2023, primarily due to an $11.8 million decrease in cash inflows from accounts receivable[158]. - Net cash used in investing activities rose to $10.4 million in Q4 2024, compared to $2.1 million in Q4 2023, mainly due to increased purchases of short-term investments[160]. - The Company has $17.5 million of remaining borrowing capacity under its $25 million Credit Agreement as of December 31, 2024, with no outstanding borrowings[152]. Strategic Considerations - The company is facing challenges from inflation and heightened interest rates, which have impacted buyer qualification and transaction timelines[101]. - Supply chain challenges and consumer sentiment fluctuations are affecting the availability and pricing of used vehicles on the company's marketplaces[100]. - The company continues to monitor geopolitical conflicts and their potential impacts on business, noting that revenues associated with affected regions were not material to financial results[103]. - The Company intends to indefinitely reinvest earnings of foreign subsidiaries, resulting in no provision for deferred U.S. tax expense on $9.8 million of undistributed foreign earnings[148]. - A hypothetical 100 basis point decline in interest rates would impact pre-tax earnings by less than $1 million on an annualized basis[162]. - The Company has $17.6 million of remaining authorization to repurchase shares through December 31, 2026, with no repurchases made during the three months ended December 31, 2024[157]. Buyer and Market Dynamics - As of December 31, 2024, the company had 5.7 million registered buyers, an increase of approximately 9% from 5.2 million registered buyers as of December 31, 2023[104][115].