Workflow
Liquidity Services(LQDT) - 2025 Q1 - Quarterly Report
LQDTLiquidity Services(LQDT)2025-02-06 17:59
Transcript
Slide

Financial Performance - Total consolidated revenue increased by 51.0million,or71.551.0 million, or 71.5%, from 71.3 million in Q4 2023 to 122.3millioninQ42024[130].−Purchaserevenuesroseby122.3 million in Q4 2024[130]. - Purchase revenues rose by 46.6 million, or 128.6%, reaching 82.8millioninQ42024comparedto82.8 million in Q4 2024 compared to 36.2 million in Q4 2023[130]. - Net income for the three months ended December 31, 2024, was 5.81million,asignificantincreasefrom5.81 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 13.11million,upfrom13.11 million, up from 7.25 million in 2023, reflecting an increase of 81%[144]. - Income from operations surged by 5.4million,or330.35.4 million, or 330.3%, to 7.1 million in Q4 2024[130]. - Net income grew by 3.9million,or204.73.9 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 386.1million,comparedto386.1 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 4.6million,or29.14.6 million, or 29.1%, driven by a 21.7 million increase in GMV[132]. - RSCG segment revenue doubled, increasing by 44.0million,or100.544.0 million, or 100.5%, due to a 43.2 million rise in GMV[133]. - CAG segment revenue rose by 2.0million,or25.72.0 million, or 25.7%, supported by a 15.3 million increase in GMV[134]. Expenses and Costs - Cost of goods sold increased by 40.6million,or128.940.6 million, or 128.9%, totaling 72.2 million in Q4 2024[136]. - Technology and operations expenses increased by 3.2million,or22.33.2 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 128.7million,withanadditional128.7 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 12.1millioninQ42024from12.1 million in Q4 2024 from 8.9 million in Q4 2023, primarily due to an 11.8milliondecreaseincashinflowsfromaccountsreceivable[158].−Netcashusedininvestingactivitiesroseto11.8 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 2.1millioninQ42023,mainlyduetoincreasedpurchasesofshort−terminvestments[160].−TheCompanyhas2.1 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 25millionCreditAgreementasofDecember31,2024,withnooutstandingborrowings[152].StrategicConsiderations−Thecompanyisfacingchallengesfrominflationandheightenedinterestrates,whichhaveimpactedbuyerqualificationandtransactiontimelines[101].−Supplychainchallengesandconsumersentimentfluctuationsareaffectingtheavailabilityandpricingofusedvehiclesonthecompany′smarketplaces[100].−Thecompanycontinuestomonitorgeopoliticalconflictsandtheirpotentialimpactsonbusiness,notingthatrevenuesassociatedwithaffectedregionswerenotmaterialtofinancialresults[103].−TheCompanyintendstoindefinitelyreinvestearningsofforeignsubsidiaries,resultinginnoprovisionfordeferredU.S.taxexpenseon25 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 1milliononanannualizedbasis[162].−TheCompanyhas1 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].