Liquidity Services Inc (LQDT) Q3 2024 Earnings Call Highlights: Record GMV and Strong Segment ...

GuruFocus News
4 min read

In This Article:

  • Gross Merchandise Volume (GMV): $380 million, a 14% increase from $334 million in the same quarter last year.

  • Revenue: $93.6 million, up 16% from $80.8 million in the same quarter last year.

  • GAAP Earnings Per Share (EPS): $0.19, impacted by acquisition-related expenses and a legal settlement.

  • Non-GAAP Adjusted Earnings Per Share: $0.30, up 7% from the same quarter last year.

  • Non-GAAP Adjusted EBITDA: $14.7 million, a 10% increase from the same quarter last year.

  • Cash, Cash Equivalents, and Short-term Investments: $136.8 million at the end of the fiscal third quarter.

  • Cash from Operations: $22.2 million generated during the fiscal third quarter.

  • Debt: Zero debt with $25 million of available borrowing capacity under the credit facility.

  • GovDeals Segment GMV: Up 17%, revenue up 28%, and direct profit up 26% year-over-year.

  • Retail Segment GMV: Up 9%, revenue up 15%, but direct profit down 3% year-over-year.

  • Capital Assets Group (CAG) Segment GMV: Up 7%, revenue down 4%, and direct profit down 6% year-over-year.

  • Machinio Segment Revenue: Up 15%, with segment direct profit up 16% year-over-year.

  • Q4 GMV Guidance: Expected to range from $330 million to $365 million.

  • Q4 GAAP Net Income Guidance: Expected to range from $5 million to $7 million.

  • Q4 Non-GAAP Adjusted Diluted EPS Guidance: Estimated to range from $0.25 to $0.32 per share.

  • Q4 Non-GAAP Adjusted EBITDA Guidance: Estimated to range from $12 million to $15 million.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Liquidity Services Inc (NASDAQ:LQDT) reported a record GMV of $380 million for Q3, driven by market share gains and expanded services.

  • The company achieved its highest quarterly GAAP net income in fiscal year 2024 and strongest non-GAAP adjusted EBITDA performance in a decade.

  • GovDeals segment set a quarterly GMV record of $250 million, with strong year-over-year growth in vehicle sales.

  • Machinio segment set another revenue record and is expected to sustain mid-teens or better organic revenue growth.

  • Liquidity Services Inc (NASDAQ:LQDT) continues to have zero debt and $25 million of available borrowing capacity under its credit facility.

Negative Points

  • There is evidence of softening prices in the GovDeals segment, particularly in fleet assets like vehicles and construction equipment.

  • The capital assets group segment's results were lower than expected due to several delayed or canceled sales in the US and Asia regions.

  • Retail segment's direct profit was down 3% due to a higher proportion of purchase revenue and lower value product flows.

  • CAG segment experienced a 4% decline in revenue and a 6% decline in segment direct profit due to project delays in the energy vertical.

  • GAAP earnings per share of $0.19 included acquisition-related expenses and a legal settlement, resulting in lower earnings per share compared to the same quarter last year.

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