Beyond(US:BYON)2024-10-25 20:12Financial Performance - Total net revenue for the three months ended September 30, 2024, was $311,428, a decrease of 16.6% compared to $373,313 for the same period in 2023[14]. - Gross profit for the nine months ended September 30, 2024, was $220,502, down 24.5% from $292,156 in the same period of 2023[14]. - Operating loss for the three months ended September 30, 2024, was $(43,553), compared to $(40,930) for the same period in 2023, reflecting a 6.5% increase in losses[14]. - Net loss for the nine months ended September 30, 2024, was $(177,536), compared to $(146,849) in the same period of 2023, indicating a 20.9% increase in losses[14]. - For the three months ended September 30, 2024, the net loss was $61,030 thousand, compared to a net loss of $63,049 thousand for the same period in 2023, representing a decrease of 3.2%[19]. - The company’s accumulated deficit increased to $(659,207) thousand at the end of the period from $(320,678) thousand at the end of September 30, 2023[19]. Assets and Liabilities - Total current assets decreased to $183,082 as of September 30, 2024, from $350,073 as of December 31, 2023, representing a decline of 47.5%[10]. - Total liabilities decreased to $232,145 as of September 30, 2024, from $276,686 as of December 31, 2023, a reduction of 16.1%[10]. - Cash and cash equivalents decreased to $140,371 as of September 30, 2024, from $302,605 as of December 31, 2023, a decline of 53.7%[10]. - Total stockholders' equity decreased to $196,193 as of September 30, 2024, from $359,132 as of December 31, 2023, a decrease of 45.4%[12]. - Total assets as of December 31, 2023, amounted to $298,451 thousand, with cash equivalents at $246,425 thousand and equity securities at fair value of $41,046 thousand[31]. Cash Flow and Investments - Net cash used in operating activities for the nine months ended September 30, 2024, was $(152,625) thousand, compared to $9,131 thousand for the same period in 2023[21]. - The company reported a $19.9 million decrease in other expense, net for the three months ended September 30, 2024, primarily due to a decrease in loss recognized from equity method securities[116]. - Investing activities resulted in a net cash outflow of $6.5 million for the nine months ended September 30, 2024, primarily due to $11.3 million in expenditures for property and equipment[129]. - Financing activities led to a net cash outflow of $2.1 million for the nine months ended September 30, 2024, mainly due to $3.3 million for payment of taxes withheld upon vesting of employee stock awards[130]. Stock and Compensation - Weighted average shares of common stock outstanding for the three months ended September 30, 2024, were 45,771, compared to 45,225 for the same period in 2023[14]. - The company granted 200,150 restricted stock awards with a cumulative grant date fair value of $6.8 million for the nine months ended September 30, 2024[62]. - Total stock-based compensation for the three months ended September 30, 2024, was $6,349,000, an increase from $5,798,000 in the same period in 2023[61]. - Stock-based compensation related to PSUs was $2.4 million and $5.7 million for the three and nine months ended September 30, 2024, respectively[66]. Strategic Initiatives - The company aims to expand its market presence through its various retail brands, including Overstock and Bed Bath & Beyond, leveraging its data cooperative model[23]. - The company plans to expand its global loyalty program, Beyond +, to enhance customer retention[83]. - A reduction-in-force affecting approximately 20% of the workforce was announced to streamline operations and reduce costs[80]. - The company entered into a collaboration agreement and a $40 million investment into The Container Store Group, Inc., involving the purchase of 40,000 shares of Series B Convertible Preferred Stock[76]. Legal and Regulatory Matters - Company involved in litigation concerning consumer protection, employment, privacy, and intellectual property, which could materially affect business operations and financial position[144]. - Potential significant damages and costs associated with ongoing legal proceedings could divert management's focus from business operations[144]. Market Conditions and Risks - The company continues to monitor inflationary pressures affecting commodity and shipping prices, energy, and labor costs, which could impact future operations[138]. - Most of the company's sales and operating expenses are denominated in U.S. dollars, minimizing current exposure to foreign currency risk[137]. - The company's Senior Note carries a fixed annual interest rate of 4.242%, indicating no material direct financial statement risk associated with changes in interest rates[136].