Overstock.com(OSTK) - 2024 Q1 - Quarterly Report

Financial Performance - Net revenue for the quarter ended March 31, 2024, was $382.281 million, a slight increase from $381.140 million in the same period last year[22]. - Gross profit decreased to $74.359 million from $101.684 million year-over-year, reflecting a decline of approximately 27%[22]. - Operating loss for the quarter was $57.525 million, compared to an operating loss of $8.364 million in the prior year, indicating a significant increase in losses[22]. - Net loss for the quarter was $73.928 million, compared to a net loss of $10.307 million in the same quarter last year, representing an increase in losses of approximately 617%[22]. - The company reported a basic net loss per share of $1.62 for the quarter, compared to a loss of $0.23 per share in the same quarter last year[22]. - For the quarter ended March 31, 2024, Beyond, Inc. reported a net loss of $73.93 million, compared to a net loss of $10.31 million for the same period in 2023, indicating a significant increase in losses[31]. - The accumulated deficit increased to $555.60 million from $184.14 million year-over-year, highlighting the company's ongoing financial challenges[29]. - A net loss attributable to common shareholders of $73.93 million was reported for the three months ended March 31, 2024, compared to a net loss of $10.31 million for the same period in 2023[93]. Assets and Liabilities - Total current assets decreased to $305.444 million from $350.073 million as of December 31, 2023[18]. - Total liabilities increased to $289.511 million from $276.686 million, indicating a rise in financial obligations[18]. - Cash and cash equivalents decreased to $256.323 million from $302.605 million, reflecting a cash outflow during the quarter[18]. - Total stockholders' equity decreased to $287.747 million from $359.132 million, indicating a decline in the company's net worth[20]. - Total assets as of March 31, 2024, amounted to $242.7 million, a decrease from $298.5 million as of December 31, 2023[44]. - Total liabilities remained stable at $537,000 as of March 31, 2024, compared to $513,000 at December 31, 2023[44]. - Total cash, cash equivalents, and restricted cash decreased to $256.49 million at the end of the period from $374.93 million at the end of the same period in 2023, reflecting a decrease of approximately 31.5%[31]. Cash Flow and Investments - Operating cash flow showed a net cash used of $34.61 million, contrasting with a net cash provided of $20.01 million in the same quarter of 2023[31]. - Cash used in operating activities for the three months ended March 31, 2024, was $(34.6) million, compared to $20.0 million provided in the same period in 2023[134]. - Investing activities for the three months ended March 31, 2024, resulted in a net cash outflow of $9.1 million, mainly due to $5.7 million for purchases of intangible assets and $3.4 million for property and equipment[136]. - Financing activities for the three months ended March 31, 2024, resulted in a net cash outflow of $2.5 million, primarily due to $3.2 million for payment of taxes withheld upon vesting of employee stock awards[136]. Expenses - Sales and marketing expenses as a percentage of revenue rose from 12.3% in Q1 2023 to 17.8% in Q1 2024, primarily due to increased performance marketing and brand advertising expenses[103]. - Technology expenses totaled $29.6 million for the three months ended March 31, 2024, reflecting a $1.0 million decrease compared to the same period in 2023[103]. - General and administrative expenses totaled $20.5 million for the three months ended March 31, 2024, a slight decrease of 0.1% compared to the same period in 2023[120]. - Customer service and merchant fees increased by 16.5% year-over-year to $13.9 million for the three months ended March 31, 2024, representing 3.6% of net revenue[123]. - Other expense, net for the three months ended March 31, 2024, was $18.8 million, up from $7.4 million in the same period in 2023, primarily due to an increase in loss from equity method securities[124]. Corporate Governance and Compliance - The company is committed to compliance with the Securities Exchange Act of 1934, as evidenced by the certifications signed by the Chief Financial Officer[31.1][31.3]. - KPMG LLP has provided a Preferability Letter, confirming the company's adherence to accounting standards[18.1]. - The company has made amendments to its Certificate of Incorporation and Bylaws, reflecting ongoing corporate governance updates as of November 6, 2023[3.2][3.3]. - The company is actively engaging with stakeholders through its reporting and compliance efforts, reinforcing its market position[31.1][31.3]. Strategic Initiatives - The company is preparing for future growth and expansion, as indicated by the ongoing updates to its equity incentive plan[10.4]. - The company is involved in ongoing litigation that could materially affect its business and financial position, with no estimates of possible losses available at this time[69]. - The company committed to a plan to sell its corporate headquarters, expected to complete within one year[48]. - The company is exposed to inflationary pressures due to increases in commodity and shipping prices, which may impact financial condition and results of operations[147].