- Annual GMV: $1.4 billion, up 14% year over year.
- Annual Revenue: $363 million, up 16% year over year.
- Annual GAAP Net Income: $20 million, up 9% on a non-GAAP adjusted basis.
- Annual Non-GAAP Adjusted EBITDA: $48.5 million, up 6% year over year.
- Q4 GMV: $361 million, up 14% from the same quarter last year.
- Q4 Revenue: $106.9 million, up 34% year over year.
- Q4 GAAP EPS: $0.20.
- Q4 Non-GAAP Adjusted EPS: $0.32, up 23% year over year.
- Q4 Non-GAAP Adjusted EBITDA: $14.5 million, up 13% year over year.
- Operating Cash Flow: $22 million in Q4.
- Cash and Cash Equivalents: $155.5 million at the end of Q4.
- Debt: Zero debt with $17.5 million available borrowing capacity.
- Retail Segment Q4 GMV: Up 28% year over year.
- Retail Segment Q4 Revenue: Up 49% year over year.
- GovDeals Segment Q4 GMV: Up 14% year over year.
- GovDeals Segment Q4 Revenue: Up 26% year over year.
- CAG Segment Q4 GMV: Down 2% year over year.
- CAG Segment Q4 Revenue: Down 17% year over year.
- Machinio Q4 Revenue: Up 13% year over year.
- Q1 FY 2025 GMV Guidance: $350 million to $385 million.
- Q1 FY 2025 GAAP Net Income Guidance: $2.5 million to $5 million.
- Q1 FY 2025 Non-GAAP Adjusted EPS Guidance: $0.18 to $0.26.
- Q1 FY 2025 Non-GAAP Adjusted EBITDA Guidance: $9.5 million to $12.5 million.
Release Date: December 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Liquidity Services Inc (LQDT, Financial) achieved double-digit consolidated GMV growth in each quarter of fiscal year 2024, culminating in a record annual GMV of $1.4 billion.
- The company reported a strong operating cash flow of over $22 million in the fourth quarter, showcasing the strength of its asset-light business model.
- The RSCG segment set new quarterly records in GMV, revenue, and segment-directed profit, driven by expanded relationships with seller clients.
- Liquidity Services Inc (LQDT) celebrated its 25th anniversary, marking significant growth and innovation over the years.
- The company has set ambitious goals, including reaching a $2 billion annual GMV milestone and $100 million of annual EBITDA, with a focus on market share expansion, buyer base growth, and platform modernization.
Negative Points
- The CAG segment experienced a decline, with GMV down 2%, revenue down 17%, and segment direct profit down 12% in the fourth quarter.
- The company's fiscal first quarter guidance reflects downward seasonality effects, potentially impacting results despite some higher top-line results sequentially.
- Retail segment direct profit as a percent of revenue is expected to be tempered year over year and sequentially relative to the fourth quarter of fiscal year 2024.
- Real estate opportunities, while promising, have not yet been fully capitalized on, with current results not significantly driven by this category.
- The company faces challenges in maintaining profitability as operating expenses are expected to increase seasonally during the fiscal first quarter.
Q & A Highlights
Q: The growth from participants this quarter was strong. Which segments are seeing the highest growth in participants, and is the Sierra Auction acquisition driving this growth?
A: The growth is broad-based, led by our Retail and GovDeals segments, not specifically driven by the Sierra Auction acquisition. Our marketplace's value is appreciated by both small business buyers and end consumers, who access used and returned goods at lower prices.
Q: Are the investments made in the past sufficient to drive growth in fiscal 2025, or will there be additional investments?
A: Our growth leverages past investments, with incremental investments in modernization to expand margins. We are using AI-driven functionality to improve asset descriptions, buyer matching, and the mobile experience, which will enhance buyer participation and recovery.
Q: What is the timeframe for achieving the $2 billion GMV and $100 million EBITDA targets?
A: We aim to reach the $2 billion GMV milestone within the next few years, possibly inside five years. Our solutions are valued by customers, and our competitive position supports this growth trajectory. The $100 million EBITDA milestone is attainable alongside GMV growth and non-GMV services expansion.
Q: What is driving the current growth in the retail segment's GMV?
A: Our long-standing presence in the retail supply chain and ability to offer a full range of solutions tailored to client needs are key drivers. Our large buyer base and expertise in managing returns and brand protection also contribute to growth.
Q: Can you provide an update on the real estate opportunity and its potential impact on GMV?
A: Public sector real estate is a growing opportunity, highlighted by a record $8 million asset sale. While not yet a large contributor, we expect real estate to expand in the next few years, supporting our growth to the $2 billion GMV milestone.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
