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 ...

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)

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]