Overstock.com(OSTK) - 2023 Q3 - Quarterly Report

FORM 10-Q Filing Information This section presents the essential filing details for the company's Quarterly Report on Form 10-Q Filing Details 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][2] - The report covers the quarterly period ended September 30, 2023[2] 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 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][7] - Part I includes Financial Statements, Management's Discussion and Analysis, Market Risk disclosures, and Controls and Procedures[4][5][6] - Part II covers Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, Other Information, and Exhibits[7][8][9] 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 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][13] - 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] - 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][14] PART I. FINANCIAL INFORMATION This part presents the unaudited consolidated financial statements and management's discussion and analysis Item 1. Financial Statements (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 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] - A substantial decrease in equity securities from $296.3 million to $169.3 million[18] Consolidated Statements of Operations 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] - 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] Consolidated Statements of Comprehensive Loss 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 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