Overstock.com(OSTK) - 2022 Q3 - Quarterly Report

Financial Performance - Net revenue for the three months ended September 30, 2022, was $460.3 million, a decrease of 33.2% compared to $689.4 million for the same period in 2021[23]. - Gross profit for the nine months ended September 30, 2022, was $353.8 million, down 27.1% from $485.1 million in the same period of 2021[23]. - Operating income for the three months ended September 30, 2022, was $5.7 million, a decline of 80.3% from $28.8 million in the prior year[23]. - Consolidated net loss attributable to stockholders for the three months ended September 30, 2022, was $(37.0) million, compared to net income of $30.4 million in the same period of 2021[23]. - The company reported a net loss per share of $(0.81) for the three months ended September 30, 2022, compared to earnings per share of $0.64 in the same period last year[23]. - Total operating expenses for the nine months ended September 30, 2022, were $324.1 million, a decrease of 17.6% from $393.1 million in the same period of 2021[23]. - The company reported a net loss from continuing operations of $(37.0) million for the three months ended September 30, 2022, compared to income of $30.4 million in the same period last year[23]. - Comprehensive loss attributable to stockholders for the three months ended September 30, 2022, was $(36.99) million, compared to $30.43 million in the same period of 2021[25]. - The net income from discontinued operations attributable to stockholders of Overstock.com, Inc. for the nine months ended September 30, 2022, was $217.581 million[46]. Assets and Liabilities - Total current assets decreased to $475.3 million as of September 30, 2022, down from $551.8 million at December 31, 2021, representing a decline of approximately 13.8%[18]. - Cash and cash equivalents were reported at $427.5 million, a decrease of 15.0% from $503.3 million at the end of 2021[18]. - Total liabilities decreased to $275.6 million, down from $321.6 million, reflecting a reduction of approximately 14.3%[20]. - Stockholders' equity decreased to $676.6 million from $744.4 million, indicating a decline of about 9.1%[20]. - The total assets decreased to $952.2 million from $1,066.0 million, a decline of approximately 10.7%[20]. - The company reported an accumulated deficit of $158.3 million as of September 30, 2022, compared to $136.6 million at the end of 2021[20]. - The company has a deferred tax asset of $40.7 million, slightly up from $40.0 million at the end of 2021[18]. - The total outstanding debt on loans was $38.8 million as of September 30, 2022, with a current portion of $3.5 million included in other current liabilities[64]. Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2022, showed a net cash provided of $17.596 million, a significant decrease from $100.084 million in the same period of 2021[30]. - The net cash used in investing activities for the nine months ended September 30, 2022, was $28.004 million, compared to $81.764 million in the same period of 2021[30]. - The company reported a net cash used in financing activities of $65.224 million for the nine months ended September 30, 2022, compared to $7.957 million in the same period of 2021[33]. - The company completed an additional investment of $15 million in tZERO during the nine months ended September 30, 2022, through their Series B financing round[57]. Operational Challenges - The company continues to face risks related to supply chain challenges and economic conditions, which may impact future performance[13]. - The company experienced increased employee turnover and inflation in product costs, higher wages, and energy costs, impacting sales during the third quarter of 2022[108]. - The absence of pandemic-related shopping behavior and macroeconomic factors contributed to decreased order activity[105]. - The company cannot estimate the future impact of macroeconomic conditions such as inflation and supply chain challenges on its business due to their unpredictable nature[113]. Stock and Shareholder Information - The company had a total of 45.7 million shares of common stock outstanding as of September 30, 2022, an increase from 43.0 million shares in the prior year[27]. - The company reported stock-based compensation to employees and directors of $13.390 million for the nine months ended September 30, 2022, compared to $7.649 million for the same period in 2021[30]. - The stock-based compensation expense for the three months ended September 30, 2022, was $4.1 million, compared to $2.5 million for the same period in 2021[84]. - The company had $39.9 million available for future share repurchases under its current repurchase authorization through December 31, 2023[82]. Market and Economic Conditions - Consumer prices rose by 8.2% from September 2021 to September 2022, the largest increase since 1981, impacting consumer discretionary spending[167]. - Global conflicts, particularly the situation in Ukraine, could negatively impact the company's business and financial condition due to increased costs and supply chain disruptions[166]. - The company is exposed to risks from potential changes in legal, regulatory, or tax treatments that could adversely affect its operations[170]. - Further restrictions on the use of online tracking technologies could limit the company's ability to acquire new customers, adversely affecting its business[173].