Financial Data and Key Metrics Changes - Liquidity Services concluded fiscal year 2023 with a record GMV of $1.2 billion, up 5% year-over-year, and revenue grew to $314.5 million, up 12% [13] - GAAP net income for the year was $21 million, a 33% increase when excluding nonrecurring gains from the prior year, while overall it was down 48% due to that gain [13] - Non-GAAP adjusted EBITDA increased by 7% to $45.9 million, the highest in nine years [13] Business Line Data and Key Metrics Changes - The retail segment's GMV grew 18% organically to $74.7 million, with direct profit increasing by 4% year-over-year [7] - The GovDeals segment's GMV rose 14% year-over-year to $184 million, with revenue and direct profit also increasing by 13% [9][15] - The CAG segment saw a 4% decline in GMV but a 9% increase in direct profit, driven by strong sales in biopharma, energy, and heavy equipment categories [10][16] - Machinio's revenue and direct profit grew by 15%, reflecting increased subscriptions and active listings [11][16] Market Data and Key Metrics Changes - The overall market environment has been challenging due to inflation and tightening by the Fed, impacting consumer spending [5] - The retail segment is experiencing a shift towards lower-value products, affecting profit margins [29] Company Strategy and Development Direction - The company is focused on consolidating its market position and expanding its service offerings, particularly in the retail sector [8][38] - Investments are being made in technology and sales to enhance marketplace capabilities and drive long-term growth [12][32] - The company is exploring potential acquisitions to strengthen its market presence [40] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging economic environment with consumers shifting spending habits, impacting the mix of goods sold [29][43] - There is optimism about future growth opportunities, particularly in the heavy equipment and biopharma sectors [10][32] - The company anticipates a strong post-holiday demand as retailers may have excess inventory [29] Other Important Information - The company ended the quarter with $118 million in cash and no debt, providing financial flexibility for future investments [12] - The first quarter of fiscal year 2024 guidance expects GMV to range from $295 million to $325 million, with GAAP net income projected between $1.5 million and $4 million [20] Q&A Session Summary Question: Did you repurchase any shares this quarter? - Management indicated that there was none to very little share repurchase this quarter due to funding growth and exploring partnerships [22][23] Question: What was the percentage of consignment sales in GMV for the quarter? - Approximately 87% of GMV was under the consignment model, up from 82% in the prior year [26] Question: Why is direct profit not growing as dramatically as revenue in the retail segment? - The lower direct profit growth is attributed to a higher volume of consignment sales with lower fees and a shift in consumer purchasing behavior towards lower-value items [28][29] Question: Where will the increase in expenses come from in Q1? - The increase in expenses is expected mainly in capacity and sales, with a disciplined approach to marketing [31][32] Question: Can you elaborate on the opportunity for consolidation in the retail space? - Management highlighted a unique opportunity to consolidate market position due to the disintegration of smaller players and increased demand for their services [38][39]

Buyer and Market Growth - The number of registered buyers increased from 4.9 million to 5.1 million, representing a growth of 5%[9] - The registered buyer base grew by 4.8%, adding 234,000 new buyers in fiscal 2023[25] - As of September 30, 2023, the company had 5.1 million registered buyers in its marketplaces, with a 4.8% increase in the registered buyer base, adding approximately 234,000 buyers during fiscal 2023[25] - Approximately 3.3 million auction participants engaged in online auctions during the year ended September 30, 2023[25] Financial Performance - Gross merchandise volume (GMV) for the year ended September 30, 2023, was $1.2 billion, with total revenue of $314.5 million[9] - GMV has grown at a compound annual growth rate of 13.9% since 2018[9] - The global reverse logistics market is projected to reach $958 billion by 2028, growing at a compound annual growth rate of 5.6% from 2021 to 2028[15] - The retail industry experiences approximately $816 billion in merchandise returns annually, equating to nearly 18% of total sales[16] - Liquidity Services estimates that at least $100 billion of returned merchandise is moved through secondary markets[16] - The global used equipment market is valued at approximately $350 billion[16] Marketplace and Service Offerings - The company provides access to over 600 product categories, facilitating a continuous flow of surplus assets for buyers[23] - The company aims to maximize sellers' net recovery through channel strategies and dedicated programs[22] - The company operates multiple marketplace brands, serving various industries and product categories, including consumer goods, capital assets, and machinery[42][44] - The AllSurplus marketplace aggregates assets globally, enhancing buyer experience through mobile optimization and machine learning-driven recommendations[32][33] - The AllSurplus marketplace, launched in fiscal year 2020, connects the global buyer base with assets from across the company's network, enhancing the buyer experience through technology and innovation[45] - The company provides value-added services to sellers, including merchandising and channel optimization, logistics, and settlement support, which improve operational efficiencies and recovery rates[48] Technology and Innovation - The company is investing significant resources in enhancing marketplace user experiences and seller tools, leveraging generative AI and automation technologies[69] - The company’s technology investments have led to the development of the AllSurplus marketplace, which utilizes machine learning for site search and recommendations, optimizing asset visibility for buyers[32] - The company successfully migrated the GovDeals.com marketplace to a modernized platform in October 2023, enhancing user experience with AI and machine learning algorithms[66] - In fiscal year 2023, the company expanded capabilities of its flagship e-commerce platform, AllSurplus, including the introduction of Rapid Bid and AllSurplus Deals[67] - The company’s technology infrastructure leverages cloud services from Amazon Web Services and Microsoft Azure for scalability and resilience[65] Operational Efficiency - The company’s operations group includes buyer relations, shipping logistics, and warehouse network management to enhance transaction efficiency[74] - The company employs a robust cybersecurity program, including annual training for all employees to promote a culture of cybersecurity awareness[71] - The company intends to improve operating expense leverage through cost control and technology innovation, enhancing productivity and scalability[38] Employee and Workplace Culture - The company has 716 employees worldwide, with 91% located in North America, 6% in the EMEA region, and 3% in the Asia-Pacific region as of September 30, 2023[83] - The company emphasizes diversity, equity, and inclusion in its workforce, utilizing various recruiting strategies to attract talented candidates[85] - The company provides a range of health benefits, including multiple medical plans, dental and vision coverage, and paid parental leave, with a significant portion of premiums covered by the company[86] - The company operates a remote-first work environment to promote flexibility, high performance, and retention[89] - The company’s culture is built on core values such as integrity, customer focus, and continuous improvement, which are reinforced through performance management and employee engagement surveys[87] Community Engagement and Sustainability - The company engages in community outreach and sustainability initiatives, including disaster relief and zero-waste programs[88] - The company aims to benefit businesses and the environment by enabling the continued use of surplus assets, reducing waste and emissions[91] - The company’s e-commerce marketplaces promote sustainability by facilitating the resale and redeployment of surplus assets, reducing waste, and supporting corporate environmental initiatives[32]

Liquidity Services, Inc. (NASDAQ:LQDT) Q3 2023 Earnings Conference Call August 3, 2023 10:30 AM ET Company Participants William Angrick - Chairman & Chief Executive Officer Jorge Celaya - Executive Vice President & Chief Financial Officer Conference Call Participants Gary Prestopino - Barrington Research George Sutton - Craig-Hallum Operator Welcome to the Liquidity Services, Inc. Third Quarter of Fiscal Year 2023 Financial Results Conference Call. My name is Felicia Crabtree, and I will be your operator f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-51813 A Better Future for Surplus LIQUIDITY SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 52-22092 ...

Liquidity Services, Inc. (NASDAQ:LQDT) Q2 2023 Earnings Conference Call May 4, 2023 10:30 AM ET Company Participants Bill Angrick - Chairman & Chief Executive Officer Jorge Celaya - Executive Vice President & Chief Financial Officer Conference Call Participants Gary Prestopino - Barrington Research George Sutton - Craig-Hallum Operator Welcome to the Liquidity Services Incorporated Second Quarter of Fiscal Year 2023 Financial Results Conference Call. My name is Therese, and I will be your operator for today ...

Financial Performance - Total revenue for the three months ended March 31, 2023, was $81,453,000, representing a 19.5% increase from $68,275,000 in the same period of 2022[17] - Net income for the three months ended March 31, 2023, was $4,245,000, a decrease of 64.5% compared to $11,970,000 for the same period in 2022[19] - Basic income per common share for the three months ended March 31, 2023, was $0.14, down from $0.37 in the same period of 2022[17] - Net income for the six months ended March 31, 2023, was $8,211 million, a decrease of 47.3% compared to $15,572 million for the same period in 2022[26] - Total consolidated revenue increased by $13.2 million, or 19.3%, from $68.3 million to $81.5 million for the three months ended March 31, 2023[155] - Net income decreased by $7.7 million, or 64.5%, from $12.0 million to $4.2 million for the three months ended March 31, 2023[155] Assets and Liabilities - Total current assets as of March 31, 2023, were $130,577,000, slightly up from $129,594,000 as of September 30, 2022[14] - Total liabilities decreased to $132,023,000 as of March 31, 2023, from $133,568,000 as of September 30, 2022[14] - Total stockholders' equity as of March 31, 2023, was $151,074,000, down from $154,536,000 as of September 30, 2022[14] - Cash and cash equivalents were $95,583,000 as of March 31, 2023, compared to $96,122,000 as of September 30, 2022[14] Cash Flow - Net cash provided by operating activities increased to $22,335 million from $14,627 million, representing a growth of 52.5% year-over-year[26] - The company reported a net cash used in investing activities of $6,356 million, a decrease from $14,727 million in the prior year, indicating improved cash management[26] - Net cash used in financing activities was $17.3 million for the six months ended March 31, 2023, down from $21.9 million in the same period of 2022, a decrease of $4.6 million[187] Revenue Segments - Purchase revenue for the Retail Supply Chain Group (RSCG) segment was $53,672,000 for the three months ended March 31, 2023, up from $41,825,000 in the same period of 2022, marking a growth of 28.5%[106] - The total revenue for the Capital Assets Group (CAG) segment was $9,418,000 for the three months ended March 31, 2023, compared to $8,992,000 in the same period of 2022, reflecting a growth of 4.7%[106] - Revenue from the Machinio segment increased by 14.3%, or $0.8 million, driven by price increases and subscriber growth[161] Expenses - Cost of goods sold for the three months ended March 31, 2023, was $40,366,000, an increase of 39.4% from $28,968,000 in the same period of 2022[17] - Other costs and expenses from operations for the three months ended March 31, 2023, were $35,852,000, compared to $34,801,000 for the same period in 2022, an increase of 3.0%[107] - Technology and operations expenses rose by $1.7 million, or 6.1%, due to distribution network growth and inflationary cost increases[163] Stock and Shareholder Activity - The company had 36,049,719 shares issued and outstanding as of March 31, 2023, compared to 35,724,057 shares as of September 30, 2022[14] - Common stock repurchases amounted to $16,963 million, down from $19,998 million, showing a reduction in buyback activity[26] - The Company authorized a new stock repurchase plan of up to $8.0 million through December 31, 2025[183] Taxation - The effective income tax rate for the first six months of fiscal year 2023 is 24.9%, up from 11.7% in the same period of fiscal year 2022, primarily due to state and foreign taxes and the inclusion of an $8.5 million non-cash gain from a prior acquisition[67] - The effective income tax rate for the six months ended March 31, 2023, was 24.9%[144] Acquisitions - The acquisition of Bid4Assets was valued at approximately $42.7 million, consisting of $14.7 million in cash and $28.0 million in earn-out consideration[46] - Goodwill recorded from the Bid4Assets acquisition amounted to approximately $30.1 million, reflecting the value of the assembled workforce and growth opportunities[47] - The total identifiable net assets acquired from Bid4Assets were $12.656 million after accounting for liabilities assumed[47] Market and Economic Conditions - The company is unable to predict the likelihood, magnitude, and timing of inflationary risks to its business, which may impact GMV, revenues, and costs of revenues[118] - The company continues to monitor the ongoing Russia-Ukraine conflict, which has not materially affected its consolidated financial results for the three and six months ended March 31, 2023[121] Miscellaneous - The company did not identify any indicators of impairment requiring an interim test on goodwill or long-lived assets during the three and six months ended March 31, 2023[63] - The company has a credit facility agreement with a maximum principal amount of $25 million, with no outstanding borrowings as of March 31, 2023[70][73]

Liquidity Services, Inc. (NASDAQ:LQDT) Q1 2023 Earnings Conference Call February 2, 2023 10:30 AM ET Company Participants Bill Angrick - Chairman & Chief Executive Officer Jorge Celaya - Executive Vice President & Chief Financial Officer Conference Call Participants George Sutton - Craig Hallum Gary Prestopino - Barrington Research Operator Welcome to the Liquidity Services, Inc. First Quarter of Fiscal Year 2023 Financial Results Conference Call. My name is Gigi and I will be your operator for today's call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-51813 A Better Future for Surplus LIQUIDITY SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 52-2 ...

Liquidity Services, Inc. (NASDAQ:LQDT) Q4 2022 Earnings Conference Call December 8, 2022 10:30 AM ET Company Participants Bill Angrick - Chairman & CEO Jorge Celaya - EVP & CFO Conference Call Participants Gary Prestopino - Barrington Research George Sutton - Craig-Hallum Operator Welcome to the Liquidity Services, Inc. Fourth Quarter of Fiscal Year 2022 Financial Results Conference Call. My name is Carmen and I will be your host for today's call. Please note that this conference call is being recorded. At ...