Overstock.com(US:OSTK)2023-07-30 16:00Financial Performance - Net revenue for Q2 2023 was $422.2 million, a decrease of 20% compared to $528.1 million in Q2 2022[24] - Gross profit for Q2 2023 was $94.4 million, down 22% from $121.1 million in Q2 2022[24] - Operating loss for Q2 2023 was $4.2 million, compared to an operating income of $11.5 million in Q2 2022[24] - Net loss for Q2 2023 was $73.5 million, compared to a net income of $7.1 million in Q2 2022[24] - Net income for the three months ended June 30, 2023, was $(73,493) thousand, compared to $7,147 thousand for the same period in 2022, representing a significant decline[26] - For the six months ended June 30, 2023, net income was $(83,800) thousand, down from $17,270 thousand in the prior year[26] - Comprehensive income (loss) for the three months ended June 30, 2023, was $(73,489) thousand, compared to $7,151 thousand for the same period in 2022[26] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(28,381) thousand for the six months ended June 30, 2023[33] Assets and Liabilities - Total current assets decreased to $388.9 million as of June 30, 2023, from $414.5 million at the end of 2022[18] - Total liabilities increased to $237.4 million as of June 30, 2023, compared to $232.7 million at the end of 2022[19] - Cash and cash equivalents were $342.9 million as of June 30, 2023, down from $371.3 million at the end of 2022[18] - The company reported a decrease in total stockholders' equity to $573.2 million as of June 30, 2023, from $645.8 million at the end of 2022[21] - The balance of accumulated deficit increased to $(257,629) thousand as of June 30, 2023, from $(121,323) thousand a year earlier[31] - The total outstanding debt as of June 30, 2023, was $36.2 million, with a current portion of $2.0 million included in other current liabilities[59] - Total contractual cash obligations as of June 30, 2023, amounted to $52.6 million, including $5.9 million in operating leases and $46.7 million in loan agreements[137] Expenses - The company experienced a 15% reduction in sales and marketing expenses in Q2 2023 compared to Q2 2022[24] - Stock-based compensation to employees and directors was $12,065 thousand for the six months ended June 30, 2023, compared to $9,334 thousand in the same period of 2022[33] - Operating lease costs for the three months ended June 30, 2023, were $1.49 million, slightly down from $1.57 million for the same period in 2022[61] - General and administrative expenses increased by $592,000 for the three months ended June 30, 2023, primarily due to increased legal and third-party expenses[99] - Technology expenses totaled $27.7 million for the three months ended June 30, 2023, a decrease of $2.8 million compared to the same period in 2022[98] Investments and Acquisitions - Overstock.com invested $10.0 million in GrainChain, Inc. through a convertible promissory note with a 5% annual interest rate, maturing on January 3, 2025[40] - The total purchase price for the intellectual property assets acquired from Bed Bath & Beyond was $25.6 million, allocated as $21.8 million for trade names and $3.8 million for customer lists[50] - The company recently purchased certain assets from Bed Bath & Beyond, which may involve risks and uncertainties that could affect financial results[159] Market and Operational Insights - The company is focusing on international market expansion and optimizing its distribution operations[13] - International net revenues were less than 2% of total net revenues for the three and six months ended June 30, 2023, and 2022[105] - The company continues to monitor macroeconomic trends, including inflation and geopolitical events, which may impact consumer confidence and spending[100] - Overstock.com received tens of millions of visits per month on its online shopping site, indicating strong user engagement[36] Stock and Shareholder Information - Total shares of common stock outstanding as of June 30, 2023, were 45,202 thousand, a decrease from 45,695 thousand a year earlier[29] - The company had $19.9 million available for future share repurchases under its current repurchase authorization[76] - The company did not repurchase any shares of common stock during the three and six months ended June 30, 2023[76] - The average purchase price per share under the Employee Stock Purchase Plan (ESPP) for the six months ended June 30, 2023, was $16.46, compared to $48.37 for the same period in 2022[81] Legal and Regulatory Matters - The company has been involved in various legal proceedings, including a securities class action lawsuit, which could materially affect its business and financial position[66] - The company is subject to various laws and regulations that may impede growth and increase expenses, including those related to taxation, privacy, and consumer protection[141] Miscellaneous - The company has established liabilities for contingencies that are probable and estimable, but these were not material as of June 30, 2023[71] - There were no changes in disclosure controls and procedures or internal controls over financial reporting during the quarter ended June 30, 2023[152]