Overstock.com Inc (OSTK) Q3 2023 Earnings: A Detailed Review
Overstock.com Inc (NASDAQ:OSTK) reported a Q3 2023 net revenue of $373 million, a decrease of 19% year-over-year.
The company posted a net loss of $63 million and an operating loss of $41 million.
Overstock.com Inc (NASDAQ:OSTK) ended the third quarter with cash and cash equivalents totaling $325 million.
The acquisition of the Bed Bath & Beyond brand resulted in nearly 300,000 quarter-over-quarter active customer growth and positive year-over-year order growth.
Overstock.com Inc (NASDAQ:OSTK) released its Q3 2023 financial results on October 26, 2023. The company reported a net revenue of $373 million, marking a 19% decrease year-over-year. The gross profit stood at $70 million, or 18.7% of the total net revenue. The company posted an operating loss of $41 million and a net loss of $63 million. The diluted net loss per share was $1.39, with an adjusted diluted net loss per share (non-GAAP) of $0.61. The adjusted EBITDA (non-GAAP) was ($24) million, representing (6.4)% of net revenue.
Impact of Bed Bath & Beyond Brand Acquisition
Overstock.com Inc (NASDAQ:OSTK) acquired the Bed Bath & Beyond brand and intellectual property in June 2023. The acquisition has resulted in nearly 300,000 quarter-over-quarter active customer growth and positive year-over-year order growth. The company's CEO, Jonathan Johnson, stated,
Over the last three months, we have accelerated efforts to build a company with a bigger, brighter, and bolder future."
He further added that the acquisition has positioned the company for long-term growth.
Financial Statements Summary
Overstock.com Inc (NASDAQ:OSTK)'s balance sheet shows that the company had total assets of $770,784 thousand as of September 30, 2023, compared to $878,546 thousand as of December 31, 2022. The total liabilities stood at $254,600 thousand, while the total stockholders' equity was $516,184 thousand.
The company's consolidated statement of operations shows a net revenue of $373,313 thousand for the three months ended September 30, 2023, compared to $460,279 thousand for the same period in 2022. The net loss for the period was $63,049 thousand.
The consolidated statement of cash flows shows a net decrease in cash, cash equivalents, and restricted cash of $45,984 thousand for the nine months ended September 30, 2023.
Outlook and Future Plans
Overstock.com Inc (NASDAQ:OSTK) is in the early stages of capitalizing on the recent acquisition of the Bed Bath & Beyond brand. The company has been successful in acquiring new customers and reactivating past customers since the launch of the new Bed Bath & Beyond in the U.S. on August 1, 2023. The company looks forward to providing a detailed update on its Q3 2023 performance during the earnings call.
Explore the complete 8-K earnings release (here) from Overstock.com Inc for further details.
This article first appeared on GuruFocus.
