Financial Performance - Net revenue for the three months ended June 30, 2024, was $398.1 million, a decrease of 5.7% compared to $422.2 million for the same period in 2023[23]. - Gross profit for the three months ended June 30, 2024, was $80.2 million, down 25.4% from $107.6 million in the prior year[23]. - Operating loss for the three months ended June 30, 2024, was $(47.0) million, compared to a loss of $(4.2) million for the same period in 2023[23]. - Net loss for the three months ended June 30, 2024, was $(42.6) million, compared to $(73.5) million in the same period last year[23]. - Net loss for the three months ended June 30, 2024, was $42,578 thousand, compared to a net loss of $73,493 thousand for the same period in 2023, representing a 42% improvement[25]. - For the six months ended June 30, 2024, the net loss was $116,506 thousand, an increase from $83,800 thousand in the prior year, indicating a 39% increase in losses[25]. - The company reported a comprehensive loss of $42,574 thousand for the three months ended June 30, 2024, compared to a comprehensive loss of $73,489 thousand for the same period in 2023[25]. Assets and Liabilities - Total current assets decreased to $232.2 million as of June 30, 2024, from $350.1 million as of December 31, 2023, representing a decline of 33.7%[18]. - Total liabilities decreased to $246.4 million as of June 30, 2024, down from $276.7 million at the end of 2023, a reduction of 10.9%[18]. - Cash and cash equivalents were $186.2 million as of June 30, 2024, down from $302.6 million at December 31, 2023, a decrease of 38.5%[18]. - Total cash, cash equivalents, and restricted cash decreased to $186,342 thousand at the end of the period from $343,076 thousand a year earlier, reflecting a decline of 46%[31]. - As of June 30, 2024, total contractual cash obligations amount to $46.354 million, with $4.312 million due within one year and $35.610 million due after five years[150]. Expenses - Sales and marketing expenses increased to $66.3 million for the three months ended June 30, 2024, up 34.7% from $49.2 million in the same period last year[23]. - Technology expenses totaled $27.3 million for the three months ended June 30, 2024, a decrease of $364,000 compared to the same period in 2023[108]. - General and administrative expenses decreased by $3.1 million for the three months ended June 30, 2024, compared to the same period in 2023[109]. - Customer service and merchant fees increased by $1.8 million for the three months ended June 30, 2024, primarily due to increased outsourced labor and credit card costs[109]. - Operating lease costs for the three months ended June 30, 2024, were $677,000, compared to $1,492,000 for the same period in 2023[68]. Stock and Equity - The company reported a weighted average of 45.7 million shares of common stock outstanding for the three months ended June 30, 2024[23]. - The total shares of common stock outstanding remained at 45,750 thousand as of June 30, 2024, unchanged from the previous year[29]. - The company had approximately 2.7 million shares of common stock remaining available under the Employee Stock Purchase Plan (ESPP) as of June 30, 2024[91]. - Stock-based compensation to employees and directors was $10,035 thousand for the six months ended June 30, 2024, down from $12,065 thousand in the prior year, a decrease of 17%[31]. - The stock-based compensation expense for the three months ended June 30, 2024, was $5,259,000, down from $6,270,000 for the same period in 2023[82]. Cash Flow - Operating cash flows showed a net cash used of $110,502 thousand for the six months ended June 30, 2024, compared to a net cash provided of $18,772 thousand in the same period of 2023[31]. - Net cash used in operating activities for the six months ended June 30, 2024, was $110.5 million, primarily due to a loss from operating activities adjusted for non-cash items[146]. - Investing activities resulted in a net cash outflow of $3.3 million for the six months ended June 30, 2024, mainly due to $8.0 million in property and equipment expenditures[147]. - Financing activities resulted in a net cash outflow of $2.6 million for the six months ended June 30, 2024, primarily due to tax payments upon vesting of employee stock awards[148]. Business Operations and Strategy - The company anticipates continued challenges in generating positive cash flow from operations due to ongoing market conditions and competition[12]. - The company is modifying its business model and expanding product offerings, which increases operational complexity and associated risks[170]. - The company is planning to sell its corporate headquarters, which could lead to an increase in remote work[173]. - The company continues to monitor liquidity and expects cash flows from future operations to be sufficient for at least the next twelve months[142]. - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements[41]. Legal and Regulatory Risks - The company is exposed to various legal proceedings that could materially affect its business and financial position[166]. - The company is subject to a wide variety of laws and regulations that may impede growth and increase expenses[154]. - Accrued tax contingencies as of June 30, 2024, stand at $3.8 million, with potential for additional assessments within the next 12 months[151]. Management and Workforce - The company underwent significant changes to its executive management team and board of directors in 2023 and 2024, with key positions still remaining open[173]. - In 2023, the company implemented a reduction in force and structural changes, including the elimination of Co-Chief Executive roles and dual Chief Merchant roles[173]. - The company emphasizes the importance of attracting and retaining highly-skilled personnel for future success[173]. - Uncertainties related to leadership changes and performance-based compensation may negatively impact employee retention and engagement[173].

Financial Performance - Total net revenue was $398 million, a decrease of 5.7% year-over-year[2] - The net loss for the quarter was $43 million, with a diluted net loss per share of $0.93[2] - Adjusted EBITDA was ($36) million, representing (9.1)% of net revenue[2] - The company reported a net loss of $116,506 thousand for the three months ended June 30, 2024, compared to a net loss of $83,800 thousand for the same period in 2023[15] - Adjusted EBITDA for the three months ended June 30, 2024, was $(36,376) thousand, compared to $8,234 thousand for the same period in 2023[24] - The company reported a free cash flow of $(118,453) thousand for the six months ended June 30, 2024, compared to $6,724 thousand for the same period in 2023[26] - Net cash used in operating activities was $(110,502) thousand for the six months ended June 30, 2024, compared to $18,772 thousand for the same period in 2023[26] Customer Metrics - Active customers grew to 6.2 million, representing a 35% year-over-year increase[2] - Active customers increased to 6,221 thousand in June 2024, up from 4,621 thousand in June 2023, representing a growth of approximately 34.6%[19] - Last twelve months (LTM) net revenue per active customer decreased to $247 in June 2024 from $361 in June 2023, a decline of approximately 31.6%[19] Orders and Revenue - Orders delivered reached 1.9 million, an increase of 8% year-over-year[2] - Total orders delivered increased to 1,949 thousand in June 2024, compared to 1,803 thousand in June 2023, reflecting a growth of about 8.1%[19] - Average order value decreased to $204 in June 2024 from $234 in June 2023, a decline of approximately 12.8%[19] Cash and Expenses - Cash and cash equivalents totaled $186 million at the end of the second quarter[2] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $(116,407) thousand for the three months ended June 30, 2024[15] - The company incurred stock-based compensation expenses of $10,035 thousand for the three months ended June 30, 2024, down from $12,065 thousand for the same period in 2023[15] Strategic Outlook - The company is on track to reduce fixed expenses by $45 million on an annualized basis, with significant progress made in the second quarter[1] - The company aims to leverage its brands and technology platforms for strategic partnerships and joint ventures to enhance capital returns[1] - Beyond, Inc. expects financial performance to improve throughout the remainder of the year[1]

Financial Performance - Net revenue for the quarter ended March 31, 2024, was $382.281 million, a slight increase from $381.140 million in the same period last year[22]. - Gross profit decreased to $74.359 million from $101.684 million year-over-year, reflecting a decline of approximately 27%[22]. - Operating loss for the quarter was $57.525 million, compared to an operating loss of $8.364 million in the prior year, indicating a significant increase in losses[22]. - Net loss for the quarter was $73.928 million, compared to a net loss of $10.307 million in the same quarter last year, representing an increase in losses of approximately 617%[22]. - The company reported a basic net loss per share of $1.62 for the quarter, compared to a loss of $0.23 per share in the same quarter last year[22]. - For the quarter ended March 31, 2024, Beyond, Inc. reported a net loss of $73.93 million, compared to a net loss of $10.31 million for the same period in 2023, indicating a significant increase in losses[31]. - The accumulated deficit increased to $555.60 million from $184.14 million year-over-year, highlighting the company's ongoing financial challenges[29]. - A net loss attributable to common shareholders of $73.93 million was reported for the three months ended March 31, 2024, compared to a net loss of $10.31 million for the same period in 2023[93]. Assets and Liabilities - Total current assets decreased to $305.444 million from $350.073 million as of December 31, 2023[18]. - Total liabilities increased to $289.511 million from $276.686 million, indicating a rise in financial obligations[18]. - Cash and cash equivalents decreased to $256.323 million from $302.605 million, reflecting a cash outflow during the quarter[18]. - Total stockholders' equity decreased to $287.747 million from $359.132 million, indicating a decline in the company's net worth[20]. - Total assets as of March 31, 2024, amounted to $242.7 million, a decrease from $298.5 million as of December 31, 2023[44]. - Total liabilities remained stable at $537,000 as of March 31, 2024, compared to $513,000 at December 31, 2023[44]. - Total cash, cash equivalents, and restricted cash decreased to $256.49 million at the end of the period from $374.93 million at the end of the same period in 2023, reflecting a decrease of approximately 31.5%[31]. Cash Flow and Investments - Operating cash flow showed a net cash used of $34.61 million, contrasting with a net cash provided of $20.01 million in the same quarter of 2023[31]. - Cash used in operating activities for the three months ended March 31, 2024, was $(34.6) million, compared to $20.0 million provided in the same period in 2023[134]. - Investing activities for the three months ended March 31, 2024, resulted in a net cash outflow of $9.1 million, mainly due to $5.7 million for purchases of intangible assets and $3.4 million for property and equipment[136]. - Financing activities for the three months ended March 31, 2024, resulted in a net cash outflow of $2.5 million, primarily due to $3.2 million for payment of taxes withheld upon vesting of employee stock awards[136]. Expenses - Sales and marketing expenses as a percentage of revenue rose from 12.3% in Q1 2023 to 17.8% in Q1 2024, primarily due to increased performance marketing and brand advertising expenses[103]. - Technology expenses totaled $29.6 million for the three months ended March 31, 2024, reflecting a $1.0 million decrease compared to the same period in 2023[103]. - General and administrative expenses totaled $20.5 million for the three months ended March 31, 2024, a slight decrease of 0.1% compared to the same period in 2023[120]. - Customer service and merchant fees increased by 16.5% year-over-year to $13.9 million for the three months ended March 31, 2024, representing 3.6% of net revenue[123]. - Other expense, net for the three months ended March 31, 2024, was $18.8 million, up from $7.4 million in the same period in 2023, primarily due to an increase in loss from equity method securities[124]. Corporate Governance and Compliance - The company is committed to compliance with the Securities Exchange Act of 1934, as evidenced by the certifications signed by the Chief Financial Officer[31.1][31.3]. - KPMG LLP has provided a Preferability Letter, confirming the company's adherence to accounting standards[18.1]. - The company has made amendments to its Certificate of Incorporation and Bylaws, reflecting ongoing corporate governance updates as of November 6, 2023[3.2][3.3]. - The company is actively engaging with stakeholders through its reporting and compliance efforts, reinforcing its market position[31.1][31.3]. Strategic Initiatives - The company is preparing for future growth and expansion, as indicated by the ongoing updates to its equity incentive plan[10.4]. - The company is involved in ongoing litigation that could materially affect its business and financial position, with no estimates of possible losses available at this time[69]. - The company committed to a plan to sell its corporate headquarters, expected to complete within one year[48]. - The company is exposed to inflationary pressures due to increases in commodity and shipping prices, which may impact financial condition and results of operations[147].

Revenue and Growth - Revenue growth of 0.3% year-over-year, reaching $382 million in Q1 2024[6] - Net revenue for March 2024 was $382.3 million, a slight increase from $381.1 million in March 2023[21] - Delivered 2.2 million orders, a 27% YoY increase in transaction volume[6] - Orders delivered increased to 2.21 million in March 2024 from 1.74 million in March 2023[27] - Active customers reached 6.0 million, a 26% YoY increase[6] - Active customers grew to 6.04 million in March 2024, up from 4.80 million in March 2023[27] Profitability and Losses - Gross profit of $74 million, representing 19.5% of total net revenue[6] - Gross profit decreased to $74.4 million in March 2024 from $101.7 million in March 2023, reflecting higher cost of goods sold[21] - Operating loss of $58 million and net loss of $74 million in Q1 2024[6] - Operating loss widened to $57.5 million in March 2024 compared to $8.4 million in March 2023, driven by increased sales and marketing expenses[21] - Net loss increased significantly to $73.9 million in March 2024 from $10.3 million in March 2023[21] - Adjusted EBITDA (non-GAAP) of ($48) million, representing (12.5)% of net revenue[6] - Adjusted EBITDA was negative $47.8 million in March 2024, compared to positive $3.4 million in March 2023[33] Financial Position and Cash Flow - Cash and cash equivalents totaled $256 million at the end of Q1 2024[6] - Free cash flow was negative $38.0 million in March 2024, a significant decline from positive $14.8 million in March 2023[35] Customer Metrics - LTM net revenue per active customer decreased to $259 in March 2024 from $370 in March 2023[27] - Average order value dropped to $173 in March 2024 from $220 in March 2023[27] Strategic Initiatives - Acquired Zulily, aiming to double down on off-priced home and lifestyle business[1] - Soft launched Overstock site 6 months ahead of schedule, showing promising early growth[1] - Plan to reduce expenses by $45 million on an annualized basis, with half already achieved[5]

Company Overview - Beyond, Inc. reported a name change from Overstock.com, Inc. to Beyond, Inc. and transferred its stock listing to the New York Stock Exchange under the ticker symbol "BYON" as of November 6, 2023[17]. - The company achieved sales primarily from customers in the United States, with no single customer accounting for more than 1% of total net revenue during the years ended December 31, 2023, 2022, and 2021[19]. - Beyond, Inc. offers a diverse range of home products, with millions of items available to meet evolving customer preferences[19]. Customer Experience - The company emphasizes a simplified customer experience through a user-friendly interface and a dedicated customer care team[18]. - Beyond, Inc. employs various sales and marketing strategies, including digital channels and traditional advertising, to engage its retail consumer audience[22]. - Beyond, Inc. leverages proprietary technologies and strategic partnerships to enhance its operational capabilities and customer experience[24]. Employee Relations - Beyond, Inc. has approximately 830 full-time employees as of December 31, 2023, with a focus on maintaining good employee relations and high competition for qualified personnel[32]. - The company maintains competitive compensation programs to attract and retain employees, linking compensation to overall company performance[36]. - The average employee tenure is six and a half years, with customer service and warehouse departments averaging six years[40]. - The company provides a comprehensive benefits package, including medical, dental, vision insurance, and a flexible work schedule[41]. - In January 2024, the company expanded benefits to include unlimited flexible time away for all exempt employees[41]. - The company offers a 401(k) matching program, matching dollar for dollar up to 6% of employee savings[38]. Diversity and Inclusion - The company is committed to diversity and inclusion, aiming to create a workplace that values unique backgrounds and perspectives[34]. - The company emphasizes diversity and inclusion training to strengthen its workforce and foster an inclusive environment[43]. - The company has established relationships with universities and industry groups to attract diverse talent[39]. Talent Management - The company actively manages talent acquisition and retention, recruiting from 23 states and the Republic of Ireland[39]. - The company’s focus on human capital management is seen as a competitive advantage, with a dedicated board committee reviewing hiring trends and engagement[46]. Financial Overview - The company has a recorded value of $155.9 million in equity securities as of December 31, 2023, down from $296.3 million in 2022[179]. - The company’s loan agreements carry a fixed blended annual interest rate of 4.45%, mitigating direct financial statement risk from interest rate changes[176]. - The company actively cultivates relationships with manufacturers, distributors, and suppliers to ensure a diverse product offering and flexibility in supplier selection[21].

FORM 10-Q Filing Information This section presents the essential filing details for the company's Quarterly Report on Form 10-Q [Filing Details](index=1&type=section&id=Filing%20Details) This section provides basic filing information for the Quarterly Report on Form 10-Q for Overstock.com, Inc. for the period ended September 30, 2023 - The registrant, **OVERSTOCK.COM, INC.**, is a large accelerated filer[1](index=1&type=chunk)[2](index=2&type=chunk) - The report covers the quarterly period ended **September 30, 2023**[2](index=2&type=chunk) Registrant Information | Detail | Value | | :--- | :--- | | Exact name of registrant | OVERSTOCK.COM, INC. | | State of incorporation | Delaware | | Commission file number | 001-41850 | | Trading Symbol(s) | OSTK | | Exchange on which registered | NASDAQ Global Market | | Common Stock, par value | $0.0001 | | Shares outstanding (Oct 27, 2023) | 45,304,946 | Table of Contents This section outlines the structure of the Form 10-Q, detailing its two main parts and their respective items [Report Structure](index=3&type=section&id=Report%20Structure) The Table of Contents outlines the two main parts of the Form 10-Q: Part I, Financial Information, and Part II, Other Information, detailing the specific items and their corresponding page numbers within the report - The report is divided into two main parts: **Part I. Financial Information** and **Part II. Other Information**[4](index=4&type=chunk)[7](index=7&type=chunk) - Part I includes Financial Statements, Management's Discussion and Analysis, Market Risk disclosures, and Controls and Procedures[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - Part II covers Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, Other Information, and Exhibits[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) Special Cautionary Note Regarding Forward-Looking Statements This section warns that the report contains forward-looking statements subject to various risks and uncertainties [Forward-Looking Statements and Associated Risks](index=4&type=section&id=Special%20Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements, which involve inherent risks and uncertainties, cautioning readers that actual results may differ materially from projections due to various factors - The report contains forward-looking statements, identifiable by words like 'expect,' 'anticipate,' 'predict,' and 'project,' which are subject to risks and uncertainties[12](index=12&type=chunk)[13](index=13&type=chunk) - Actual results may differ materially due to factors such as economic downturns, inflation, reliance on third parties, competition, supply chain challenges, and difficulties with the Bed Bath & Beyond brand integration[13](index=13&type=chunk) - Other risks include inability to attract/retain key personnel, cybersecurity risks, potential losses on equity/debt investments, and impacts from litigation or global conflicts[13](index=13&type=chunk)[14](index=14&type=chunk) PART I. FINANCIAL INFORMATION This part presents the unaudited consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies and specific financial line items for the periods ended September 30, 2023 and December 31, 2022 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a decrease in total assets and stockholders' equity from December 31, 2022, to September 30, 2023, primarily driven by a reduction in cash and cash equivalents and equity securities, while total liabilities increased Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2023 | Dec 31, 2022 | Change (vs Dec 31, 2022) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $325,435 | $371,263 | $(45,828) | | Total current assets | $375,729 | $414,509 | $(38,780) | | Intangible assets, net | $25,501 | $9 | $25,492 | | Equity securities | $169,326 | $296,317 | $(126,991) | | Total assets | $770,784 | $878,546 | $(107,762) | | Total current liabilities | $209,391 | $191,142 | $18,249 | | Total liabilities | $254,600 | $232,720 | $21,880 | | Total stockholders' equity | $516,184 | $645,826 | $(129,642) | - Significant increase in intangible assets, net, from **$9 thousand** to **$25.5 million**, likely due to the acquisition of the Bed Bath & Beyond brand[18](index=18&type=chunk) - A substantial decrease in equity securities from **$296.3 million** to **$169.3 million**[18](index=18&type=chunk) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show a significant net loss for both the three and nine months ended September 30, 2023, compared to the prior year, driven by decreased net revenue, lower gross profit, and increased operating expenses Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $373,313 | $460,279 | $1,176,664 | $1,524,438 | | Gross profit | $69,960 | $107,472 | $254,045 | $353,789 | | Operating income (loss) | $(40,930) | $5,659 | $(53,543) | $29,655 | | Net loss | $(63,049) | $(36,995) | $(146,849) | $(19,725) | | Basic Net loss per share | $(1.39) | $(0.81) | $(3.25) | $(0.46) | - Net revenue decreased by **18.9%** for the three months and **22.8%** for the nine months ended September 30, 2023, compared to the same periods in 2022[23](index=23&type=chunk) - The company reported an operating loss of **$(40.9 million)** for the three months and **$(53.5 million)** for the nine months ended September 30, 2023, a significant decline from operating income in the prior year[23](index=23&type=chunk) [Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) The consolidated statements of comprehensive loss show a comprehensive loss of $(63.0 million) for the three months and $(146.8 million) for the nine months ended September 30, 2023, primarily driven by the net loss Consolidated Statements of Comprehensive Loss (in thousands) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(63,049) | $(36,995) | $(146,849) | $(19,725) | | Other comprehensive income | $4 | $4 | $12 | $12 | | Comprehensive loss | $(63,045) | $(36,991) | $(146,837) | $(19,713) | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) The consolidated statements of changes in stockholders' equity reflect a decrease in total stockholders' equity from $645.8 million at December 31, 2022, to $516.2 million at September 30, 2023, primarily due to the accumulated deficit from net losses Changes in Stockholders' Equity (in thousands) | Metric | Sep 30, 2023 (9 Months) | Dec 31, 2022 | | :--- | :--- | :--- | | Additional paid-in capital (end of period) | $1,002,494 | $982,718 | | Accumulated deficit (end of period) | $(320,678) | $(173,829) | | Treasury stock at cost (end of period) | $(165,127) | $(162,546) | | Total stockholders' equity (end of period) | $516,184 | $645,826 | - Accumulated deficit significantly increased from **$(173.8 million)** at the beginning of the nine-month period to **$(320.7 million)** at the end, reflecting the net loss[3

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ 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: 000-4979 ...

Overstock.com, Inc. (NASDAQ:OSTK) Q2 2023 Earnings Call Transcript July 27, 2023 8:30 AM ET Company Participants Lavesh Hemnani - Head of Investor Relations Jonathan Johnson - Chief Executive Officer Adrianne Lee - Chief Financial Officer Dave Nielsen - President Conference Call Participants Seth Sigmund - Barclays Thomas Forte - D. A. Davidson Curtis Nagle - BOFA Anna Andreeva - Needham and Company Operator Good day and thank you for standing by. Welcome to the Q2 2023 Overstock.com Earnings Conference Cal ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Overstock.com reported a Q1 2023 net loss of $10.3 million, a reversal from prior year's net income, driven by a 28.9% revenue decline [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $887.4 million, while total liabilities rose to $246.9 million, and equity slightly decreased Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $374,711 | $371,263 | | Total current assets | $421,249 | $414,509 | | Total assets | $887,389 | $878,546 | | **Liabilities & Equity** | | | | Accounts payable | $83,621 | $75,130 | | Total current liabilities | $206,119 | $191,142 | | Total liabilities | $246,884 | $232,720 | | Total stockholders' equity | $640,505 | $645,826 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2023 saw a net loss of $10.3 million and a 28.9% revenue decline to $381.1 million, reversing prior year's operating income Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net revenue | $381,140 | $536,037 | | Gross profit | $89,713 | $125,212 | | Operating income (loss) | $(8,364) | $12,454 | | Net income (loss) | $(10,307) | $10,123 | | Diluted EPS | $(0.23) | $0.21 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $20.0 million, while investing and financing cash outflows were $14.8 million and $1.7 million respectively Cash Flow Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,007 | $33,193 | | Net cash used in investing activities | $(14,831) | $(13,795) | | Net cash used in financing activities | $(1,705) | $(29,286) | [Notes to Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial instrument valuations, legal proceedings, and the status of the stock repurchase program - The company is cooperating with an SEC investigation related to its 2019 Series A-1 Preferred stock dividend, 10b5-1 plans, and retail guidance[58](index=58&type=chunk) - No shares were repurchased in Q1 2023, while in Q1 2022, the company repurchased **$24.9 million** of common stock, with **$19.9 million** remaining available for future repurchases as of March 31, 2023[66](index=66&type=chunk) - Total equity securities were valued at **$289.1 million** as of March 31, 2023, including investments in Medici Ventures, L.P. and tZERO Group, Inc[43](index=43&type=chunk)[44](index=44&type=chunk) - As of March 31, 2023, total outstanding debt was **$37.1 million**, net of issuance costs, related to loan agreements for the corporate headquarters[49](index=49&type=chunk)[50](index=50&type=chunk) [Management's Discussion and Analysis (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 28.9% revenue decline to macroeconomic pressures and strategic shifts, while gross margin slightly improved [Executive Commentary](index=21&type=section&id=Executive%20Commentary) Executive commentary highlights a 28.9% revenue decrease driven by a 29% drop in customer orders amid macroeconomic challenges Q1 2023 vs Q1 2022 Performance | Metric | Change | | :--- | :--- | | Net Revenue | -28.9% | | Customer Orders | -29% | | Average Order Value | Relatively flat | - The company's strategic focus is on strengthening its brand pillars: "Product Findability," "Smart Value," and "Easy Delivery and Support"[85](index=85&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Net revenue declined 28.9% to $381.1 million, while gross margin slightly improved to 23.5%, and operating expenses shifted Operating Expenses as a Percentage of Net Revenue | Expense Category | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Sales and marketing | 12.3% | 10.9% | | Technology | 8.0% | 6.2% | | General and administrative | 5.4% | 4.0% | - Gross margin increased slightly to **23.5%** in Q1 2023 from **23.4%** in Q1 2022, attributed to merchandising actions and operational efficiencies, despite higher promotional discounting[99](index=99&type=chunk) - The company recorded a tax benefit of **$2.9 million** in Q1 2023, compared to a tax provision of **$2.1 million** in Q1 2022, primarily due to the pre-tax loss[113](index=113&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $374.7 million in cash, $20.0 million in operating cash flow, and $55.4 million in contractual obligations Contractual Cash Obligations (in thousands) | Obligation | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating leases | $7,389 | $4,203 | $2,916 | $270 | $— | | Loan agreements | $48,015 | $4,607 | $2,968 | $2,972 | $37,468 | | **Total** | **$55,404** | **$8,810** | **$5,884** | **$3,242** | **$37,468** | - Cash provided by operating activities decreased to **$20.0 million** in Q1 2023 from **$33.2 million** in Q1 2022[119](index=119&type=chunk) - The company believes existing cash and future cash flows will be sufficient for operations for at least the next twelve months[116](index=116&type=chunk) [Market Risk Disclosures](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include inflation, interest rates, and foreign currency, with inflation being a key concern - Inflation is identified as a key risk, with rising commodity, shipping, energy, and labor costs creating pressure across the business, which the company may not be able to fully offset[133](index=133&type=chunk) - Interest rate risk is minimal as the company's loan agreements have a fixed blended annual interest rate of **4.45%**[131](index=131&type=chunk) - Foreign currency risk is not significant because the majority of sales and operating expenses are denominated in U.S. dollars[132](index=132&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[137](index=137&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[139](index=139&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including an SEC investigation and a pending securities class action appeal - The company is awaiting a ruling from the U.S. Court of Appeals for the Tenth Circuit regarding an appeal by plaintiffs in a securities class action lawsuit that was previously dismissed in the company's favor[59](index=59&type=chunk) - A shareholder derivative suit remains stayed pending the outcome of the appeal in the securities class action lawsuit[60](index=60&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the previous Annual Report on Form 10-K - No material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[142](index=142&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) No equity securities were repurchased in Q1 2023, with $19.9 million remaining available for future repurchases - No share repurchases were made during the three months ended March 31, 2023[143](index=143&type=chunk) - As of March 31, 2023, the remaining authorized amount for the stock repurchase program is **$19.9 million**[143](index=143&type=chunk)