Financial Data and Key Metrics Changes - The company reported a robust 10% year-over-year growth, achieving a quarterly revenue of $333 million and an EPS of $0.99, marking a new record [2][11] - Net income reached $37 million, representing 11.2% of revenue, with a sequential expansion of 50 basis points [15] - Gross margin for the quarter was 23.2%, reflecting a 70 basis point sequential decline from the previous quarter [14] Business Line Data and Key Metrics Changes - Service revenues declined by 2% year-over-year, primarily due to reduced U.S. ocean shipping and drayage revenues [11] - Product revenue grew by 16% year-over-year, driven by a 69% growth in Europe, although U.S. product revenue declined by 5% [12][13] - The marketplace GMV rose approximately 21% year-over-year, reaching nearly $1.5 billion, with active 3P seller base increasing by 17% [6][7] Market Data and Key Metrics Changes - European revenues surged by 70% year-over-year to a record $100 million, highlighting the region as a significant growth engine [7] - The company’s international markets acted as a hedge against domestic softness, contributing to overall revenue growth [6] Company Strategy and Development Direction - The company views M&A as a cornerstone of its long-term growth strategy, with the recent acquisition of Noble House serving as a validation of this approach [3][9] - The upcoming acquisition of New Classic Home Furniture is aimed at diversifying the business and enhancing brick-and-mortar wholesale capabilities [4][10] - The strategy focuses on creating a channel-agnostic ecosystem that bridges digital and physical sales [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges through disciplined execution and diversification strategies [5][21] - The company anticipates that the acquisition of New Classic will enhance distribution and channel reach, with expected financial performance improvements over the next four to six quarters [10][15] Other Important Information - The company remains debt-free and has executed approximately $16 million in share buybacks as part of its capital allocation strategy [15][16] - The fourth-quarter revenue guidance is projected to be between $328 million and $344 million [16] Q&A Session Summary Question: Thoughts on additional M&A acquisitions - Management is currently focused on closing the New Classic acquisition but is open to exploring new opportunities thereafter [18][19] Question: Impact of recent rate cuts on home merchandise sales - Management remains hopeful about a housing market rebound but emphasizes a focus on execution and diversification to drive growth regardless of macroeconomic conditions [20][21] Question: Drivers of growth in Q3 - The growth in Q3 was primarily driven by Noble House's strong performance in both the U.S. and Europe [25] Question: Confidence in Q4 performance - Management indicated that Q4 is progressing as expected, with strong performance anticipated from both organic growth and acquired businesses [27]