Liquidity Services Inc (LQDT) Reports Growth in GMV and Revenue for Q4 Fiscal Year 2023
Gross Merchandise Volume (GMV) increased by 11% to $315.6 million.
Revenue grew by 6% to $80.0 million compared to the same quarter last year.
Non-GAAP Adjusted EBITDA rose to $12.8 million, marking a $0.5 million increase.
Non-GAAP Adjusted Diluted EPS surged by 37% to $0.26.
On December 7, 2023, Liquidity Services Inc (NASDAQ:LQDT) released its 8-K filing, announcing financial results for the fourth quarter of fiscal year 2023. The company, a leader in powering the circular economy through its global commerce platforms, reported an 11% increase in GMV and a 6% increase in revenue compared to the corresponding period of the previous year. The GAAP Net Income stood at $6.3 million, with a GAAP Diluted Earnings Per Share (EPS) of $0.20. Notably, the Non-GAAP Adjusted EBITDA saw an uptick of $0.5 million to $12.8 million, and Non-GAAP Adjusted Diluted EPS increased by 37% to $0.26.
Financial Performance and Segment Highlights
LQDT's GovDeals segment experienced a 14% increase in GMV, primarily driven by the increased availability of vehicles. The RSCG segment's GMV rose by 18%, setting a new quarterly record, while the CAG segment saw a 4% decrease in GMV. Revenue in the GovDeals and RSCG segments increased by 13% and 15%, respectively, with the CAG segment experiencing a 27% decrease due to the prior year's large international spot purchase transactions. The Machinio segment reported a 15% increase in revenue, attributed to growth in subscriptions.
Operational Metrics and Business Outlook
LQDT's operational metrics showed growth, with a 5% increase in registered buyers and an 8% increase in auction participants. Completed transactions also grew by 4%. Looking ahead, the company expects GMV for the fiscal first quarter of 2024 to exceed the same quarter last year, with anticipated growth in the GovDeals and CAG segments. However, the RSCG segment is facing a dynamic of receiving a higher volume of lower-value products, reflecting the current consumer demand for retail goods.
Management Commentary
"We concluded our fiscal year with strong fourth quarter results, setting a new annual record for GMV at $1.2 billion and delivering our highest full-year Non-GAAP Adjusted EBITDA performance since 2014," said Bill Angrick, Liquidity Services CEO. He added, "Our pipeline remains strong, and we continue to see opportunities to drive growth and long-term shareholder value through expanding our technology-enabled, asset-light services."
Balance Sheet and Cash Flow
The balance sheet of LQDT remained robust, with cash balances totaling $118.2 million and zero financial debt. The company's strong liquidity position is further evidenced by the increase in cash and cash equivalents from $96.1 million to $110.3 million year-over-year.
Investor Relations and Future Prospects
LQDT's management will host a conference call to discuss the quarterly results and provide further insights into the company's strategy and outlook. Investors and interested parties are encouraged to participate or access the live webcast on the company's investor relations website.
Liquidity Services Inc continues to leverage its marketplaces and technology to drive growth and value for shareholders. With a focus on sustainable business practices and transparent asset sales, the company is well-positioned to capitalize on the opportunities presented by the circular economy.
For a detailed analysis of LQDT's financial results, including reconciliations of GAAP to Non-GAAP measures, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Liquidity Services Inc for further details.
This article first appeared on GuruFocus.
