Q12024 EarningsCall
May 7, 2024
Forward-LookingStatements
The information presented herein may contain forward-looking statementswithin the meaning of the federal securitieslaws.Such
forward-looking statementsinclude all statementsother than statements of historical fact, including forecasts of trends, market conditions, the impact of our national marketing campaign, and other factors that will impact our results of operations.You should not
place undue reliance on any forward-looking statements, which speak only as of the date they were made.We undertake no obligationto update any forward-looking statementsas a result of any new information, future developments, or otherwise. Forward-looking statementsare inherently difficult to predict.Accordingly, actual results could differ materially for a variety of reasons, including but not
limited to, difficulties we may have with our fulfillment partners, supply chain, access to products, shipping costs, insurance, competition, macroeconomic changes, attraction/retention of employees, search engine optimization results, and/orpayment processors.Other risks
and uncertainties include, amongothers, impacts from changing our company name or our use of the Overstock, Bed Bath & Beyond or Zulily brands, our ability to generatepositive cash flow, impacts from our evolving business practices andexpanded product and service offerings, any problems with our infrastructure, including cyber-attacks or data breaches affectingus, adverse tax, regulatory or legal
developments, any restrictions on the use of "cookies" or other tracking technologies, any failure to effectively utilize technological advancementsor protect our intellectual property, negative consequencesof global conflict, and whetherour partnership with Pelion
Venture Partnerswill be able to achieve its objectives. More informationabout factors that could potentially affect our financial results are included in our Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 23, 2024, and in our subsequent filings with the SEC.The Form 10-K and our subsequent filings with the SEC identify important factors that could cause our actual results to
differ materially from those contained in or contemplated by our projections, estimates, and other forward-lookingstatements.
2
BusinessUpdate
Revenue andStockPrice - 10Year Lookback
Beyond Annual Revenue and Stock Price ($B)
8% | -20% |
4
2024 IssuesIdentified andActionsTaken
Issues Identified | ActionsTaken |
Overstock website was shut down | Relaunched Overstock website |
Unclear brand positioning | Defined positioning for each brand |
Key management holes | Hired several key roles |
Messy database | Engaged 3rdparty for data cleanse |
No CRM capabilities | Engaged 3rdparty for CDP, |
establishingCRM functionalities |
5
FinancialUpdate
Q1 2024 FinancialResults
Revenue | Gross Margin | G&A andTech % of Revenue |
$382.3 Million | 19.5% | 13.1% |
+0.3% vs. Q1'23 | -720 bps vs. Q1'23 | -30 bps vs. Q1'23 |
Diluted EPS
Adjusted EBITDA Margin1 | -$1.62 | Ending Cash |
-12.5% | Adjusted Diluted EPS2 | $256.3 Million |
-$1.22 | ||
-1,340 bps vs. Q1'23 | -15% /-$46.3M vs. Q4'23 | |
-$1.12 vs. Q1'23 | $222.1 Million Net Cash Position3 |
Note: All figures represent results from continuing operations. | |
1 Adjusted EBITDA Margin is a non-GAAP financial measure. See reconciliation in appendix. | |
2 Adjusted Diluted EPS is a non-GAAP financial measure. Includes adjustment related to estimated tax impact from equity method activity. See reconciliation in appendix. | 7 |
3 Cash less long-term debt. | |
Revenue | |||||||||
Revenue | Q1'24 Dynamics | ||||||||
($M) | |||||||||
$700 | $660 | ▪ | Revenue of $382.3M | ||||||
-+0.3% / +$1M vs. Q1'23 | |||||||||
$600 | |||||||||
$536 | ▪ | Revenue influenced by: | |||||||
$500 | -Active customers +26% vs. Q1'23 | ||||||||
$422 | -Order delivered +27% vs. Q1'23 | ||||||||
-AOV -21% vs. Q1'23 | |||||||||
$400 | $381 | $373 | $384 | $382 | |||||
$363 | |||||||||
$340 | |||||||||
$300 | |||||||||
$200 | |||||||||
$100 | |||||||||
$0 | |||||||||
Q1 '19 | Q1 '20 | Q1 '21 | Q1 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 |
Note: All figures represent results from continuing operations. | 8 |
Gross Margin
Gross Margin | Gross Margin | Q1'24 Dynamics |
($M) | (%) | |||||||||
$225 | 30% | ▪Gross margin of 19.5% | ||||||||
25.4% | 26.9% | 26.8% | 26.7% | 25.5% | - | -720 bps vs. Q1'23 | ||||
$200 | ||||||||||
23.5% | $177 | 25% | ▪Gross margin influenced by: | |||||||
22.2% | ||||||||||
$175 | ||||||||||
19.2% | 19.5% | - | Higher discounting | |||||||
$143 | ||||||||||
$150 | 20% | - | Higher outbound shipping costs | |||||||
$125 | ||||||||||
$102 | $108 | 15% | ||||||||
$100 | $86 | |||||||||
$85 | $83 | |||||||||
$75 | $74 | $74 | ||||||||
10% | ||||||||||
$50 | ||||||||||
5% | ||||||||||
$25 | ||||||||||
$0 | 0% | |||||||||
Q1 '19 | Q1 '20 | Q1 '21 | Q1 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 |
Note: All figures represent results from continuing operations. All figures reflect the change in presentation in the income statement for merchant fees and customer service costs in a | 9 |
separate line in operating expenses labeled, "Customer service and merchant fees", whereas previously, these expenses were included in Cost of goods sold which impacted gross margin. | |
G&A andTech Expense
G&A and Tech Expense | G&A and Tech Exp. | Q1'24 Dynamics | ||||||||||
($M) | as % of Revenue | |||||||||||
$80 | 15.9% | 15.8%1 | 16% | ▪ | G&A andTech Expense of | |||||||
15.1% | 14.3% | 14.0% | $50.0M | |||||||||
$70 | 13.4% | 13.1% | 14% | --2% vs. Q1'23 | ||||||||
11.7% | ||||||||||||
$60 | $58 | 12% | ▪ | G&A andTech Expense % of | ||||||||
$541 | $53 | $54 | $51 | $53 | $54 | |||||||
10.1% | $49 | $50 | revenue of 13.1% | |||||||||
$50 | 10% | |||||||||||
$51 | --30 bps vs. Q1'23 | |||||||||||
$40 | 8% | |||||||||||
8.1% | ||||||||||||
$30 | 6% | |||||||||||
$20 | 4% | |||||||||||
$10 | 2% | |||||||||||
$0 | 0% | |||||||||||
Q1 '19 | Q1 '20 | Q1 '21 | Q1 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 |
Note: All figures represent results from continuing operations. | 10 |
1 In Q1'20 we recorded $2.5M in special items that benefitted G&A expense. Reported G&A and tech expense in Q1'20 was $51.2M, or 15.1% of revenue. | |
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Beyond Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 13:29:09 UTC.