Overstock.com, Inc. (NASDAQ:OSTK), which operates as Bed Bath &
Beyond, today reported financial results for the quarter ended
September 30, 2023.
Third Quarter 2023 Financial
Highlights
• |
Total net revenue was $373 million, a decrease of 19%
year-over-year |
• |
Gross profit of $70 million, or 18.7% of total net revenue |
• |
Operating loss of $41 million |
• |
Net loss of $63 million |
• |
Diluted net loss per share of $1.39; Adjusted diluted net loss per
share (non-GAAP) of $0.61 |
• |
Adjusted EBITDA (non-GAAP) of ($24) million, which represents
(6.4)% of net revenue |
• |
Cash and cash equivalents totaled $325 million at the end of the
third quarter |
“Over the last three months, we have accelerated
efforts to build a company with a bigger, brighter, and bolder
future,” said Jonathan Johnson, Chief Executive Officer. “On June
28, we acquired the Bed Bath & Beyond brand and intellectual
property – a brand ranked in the top five most recognized home
brands in the U.S. Within hours of closing the deal, we revived the
brand in Canada, and in just thirty-three days we relaunched the
brand in the U.S. under our asset-light operational model.”
“It is important to take a step back to understand
the deal and how we intend to monetize it going forward,” continued
Johnson. “Just a few years ago, when we first looked at acquiring
the Bed Bath & Beyond business, it cost close to $2 billion. We
chose to watch from the sidelines with our eye on four key assets
we hoped to acquire when the opportunity presented itself: (1) the
number five most recognizable brand in the home space (in that same
ranking, Overstock was number 25), (2) a 100M+ customer file, (3)
vendor relationships with some of the biggest home category brands
in the world, and (4) valuable intellectual property. We were
thrilled when that opportunity arose, and we took it.”
“To provide some clarity on the economics of the
deal, we break down this opportunity into two numbers totaling
approximately $175 million: (1) approximately $25 million we paid
to the bankruptcy estate for the brand and related IP and in
acquisition-related fees, and (2) approximately $150 million of
additional investment to launch the brand, reignite the customer
file, and expand and create new categories while working to
maintain our company’s core customers,” said Johnson.
“We are in the early stages of capitalizing on our
recent acquisition. Since launching the new Bed Bath & Beyond
in the U.S. on August 1, we have been successful in acquiring new
customers and reactivating past customers. Total active customers
grew sequentially after over two years. As I’ve said from the
onset, growing the customer file is our primary measure of success.
Orders have returned to positive year-over-year growth for the
first time in over two years. This acquisition has positioned us
for growth over the long-term. We look forward to providing a
detailed update on our third quarter 2023 performance during the
earnings call, with a focus on our business performance since the
rebrand,” Johnson said.
Third Quarter 2023 Operational
Metrics*
• |
Active customers of 4.9 million, a decrease of 15%
year-over-year |
• |
Last Twelve Months (LTM) net revenue per active customer of $322, a
decrease of 13% year-over-year |
• |
Orders delivered of 1.9 million, an increase of 3%
year-over-year |
• |
Average order value of $192, a decrease of 21% year-over-year |
• |
Orders per active customer of 1.48, a decrease of 9%
year-over-year |
• |
Orders placed on a mobile device were 58% of gross merchandise
sales |
*Certain terms, such as active customers, LTM net
revenue per active customer, orders delivered, average order value,
and orders per active customer are defined under "Supplemental
Operational Data" below.
Earnings Webcast and Replay
InformationOverstock will hold a conference call and
webcast to discuss its third quarter 2023 financial results on
Thursday, October 26, 2023 at 8:30 a.m. ET. To access the live
webcast and presentation slides, go to
http://investors.overstock.com. To participate in the conference
call via telephone, please register at the link available at
http://investors.overstock.com/events. Registrants will receive
dial-in information and a unique PIN to access the live call.
Questions may be emailed in advance of the call to
ir@overstock.com.
A replay of the conference call will be available
at http://investors.overstock.com starting two hours after the live
call has ended.
About Overstock.com
Overstock.com, Inc. (NASDAQ:OSTK) is a
technology-focused innovator based in Midvale, Utah and owner of
the Bed Bath & Beyond brand and other intellectual property
related to the brand. Bed Bath & Beyond is an online home
furnishings and furniture retailer in the United States and Canada.
The leading e-commerce website sells a broad range of new home
products at low prices, including furniture, décor, area rugs,
bedding and bath, home improvement, and more. The online shopping
site features millions of products that tens of millions of
customers visit each month. Overstock regularly posts information
about the Company and other related matters on the Newsroom and
Investor Relations pages on its website, Overstock.com.
Bed Bath & Beyond, Beyond, Welcome Rewards,
Overstock, and Overstock.com are trademarks of Overstock.com,
Inc. Other service marks, trademarks and trade names which may
be referred to herein are the property of their respective
owners.
Cautionary Note Regarding Forward-Looking
StatementsThis press release and the October 26, 2023
conference call and webcast to discuss our financial results may
contain forward-looking statements within the meaning of the
federal securities laws. Such forward-looking statements include
all statements other than statements of historical fact, including
forecasts of trends, market conditions, the impact of our national
marketing campaign, and other factors that could 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 obligation to update any forward-looking
statements as a result of any new information, future developments,
or otherwise. These forward-looking statements are inherently
difficult to predict. Actual results could differ materially for a
variety of reasons, including but not limited to, macroeconomic
changes, including higher inflation and higher interest rates, and
difficulties we may have with our fulfillment partners, supply
chain, access to products, shipping costs, competition,
attraction/retention of employees, search engine optimization
results, and/or payment processors. Other risks and uncertainties
include, among others, negative economic consequences of global
conflict, problems with our infrastructure, including cyber-attacks
or data breaches affecting us, adverse tax, regulatory or legal
developments, any restrictions on the use of "cookies" or other
tracking technologies, any negative business impacts associated
with our evolving business practices including our use of the Bed
Bath & Beyond brand and other intellectual property related to
the brand, our corporate name change and stock listing transfer,
our exit from non-home categories, any negative business impacts
associated with shareholder activism, and whether our partnership
with Pelion Venture Partners will be able to achieve its
objectives. More information about factors that could potentially
affect our financial results are included in our Form 10-K for the
year ended December 31, 2022, in our Form 10-Q for the quarter
ended March 31, 2023, and our Form 10-Q for the quarter ended June
30, 2023, which were filed with the SEC on February 24, 2023, May
2, 2023, and July 31, 2023, respectively, and in our subsequent
filings with the SEC. The Forms 10-K, 10-Qs, 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-looking statements.
ContactsInvestor Relations:Lavesh
Hemnaniir@overstock.com |
Media Relations:Sarah Factorpr@overstock.com |
Overstock.com, Inc.Consolidated
Balance Sheets (Unaudited)(in thousands, except
per share data) |
|
September 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
325,435 |
|
|
$ |
371,263 |
|
Restricted cash |
|
38 |
|
|
|
194 |
|
Accounts receivable, net |
|
19,580 |
|
|
|
17,693 |
|
Inventories |
|
11,519 |
|
|
|
6,526 |
|
Prepaids and other current assets |
|
19,157 |
|
|
|
18,833 |
|
Total current assets |
|
375,729 |
|
|
|
414,509 |
|
Property and equipment, net |
|
109,661 |
|
|
|
109,906 |
|
Deferred tax assets, net |
|
66,449 |
|
|
|
41,439 |
|
Intangible assets, net |
|
25,501 |
|
|
|
9 |
|
Goodwill |
|
6,160 |
|
|
|
6,160 |
|
Equity securities |
|
169,326 |
|
|
|
296,317 |
|
Operating lease right-of-use assets |
|
4,347 |
|
|
|
7,460 |
|
Other long-term assets, net |
|
13,611 |
|
|
|
2,746 |
|
Total assets |
$ |
770,784 |
|
|
$ |
878,546 |
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
85,272 |
|
|
$ |
75,130 |
|
Accrued liabilities |
|
72,475 |
|
|
|
63,614 |
|
Unearned revenue |
|
47,450 |
|
|
|
44,480 |
|
Operating lease liabilities, current |
|
3,056 |
|
|
|
4,410 |
|
Other current liabilities |
|
1,138 |
|
|
|
3,508 |
|
Total current liabilities |
|
209,391 |
|
|
|
191,142 |
|
Long-term debt, net |
|
34,232 |
|
|
|
34,476 |
|
Operating lease liabilities, non-current |
|
1,622 |
|
|
|
3,626 |
|
Other long-term liabilities |
|
9,355 |
|
|
|
3,476 |
|
Total liabilities |
|
254,600 |
|
|
|
232,720 |
|
Stockholders' equity: |
|
|
|
Preferred stock, $0.0001 par value, authorized shares - 5,000,
issued and outstanding - none |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, authorized shares - 100,000 |
|
|
|
Issued shares - 51,585 and 51,102 |
|
|
|
Outstanding shares - 45,305 and 44,951 |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
1,002,494 |
|
|
|
982,718 |
|
Accumulated deficit |
|
(320,678 |
) |
|
|
(173,829 |
) |
Accumulated other comprehensive loss |
|
(510 |
) |
|
|
(522 |
) |
Treasury stock at cost - 6,280 and 6,151 |
|
(165,127 |
) |
|
|
(162,546 |
) |
Total stockholders' equity |
|
516,184 |
|
|
|
645,826 |
|
Total liabilities and stockholders' equity |
$ |
770,784 |
|
|
$ |
878,546 |
|
Overstock.com, Inc.Consolidated
Statements of Operations (Unaudited)(in thousands,
except per share data) |
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net revenue |
$ |
373,313 |
|
|
$ |
460,279 |
|
|
$ |
1,176,664 |
|
|
$ |
1,524,438 |
|
Cost of goods sold |
|
303,353 |
|
|
|
352,807 |
|
|
|
922,619 |
|
|
|
1,170,649 |
|
Gross profit |
|
69,960 |
|
|
|
107,472 |
|
|
|
254,045 |
|
|
|
353,789 |
|
Operating expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
57,541 |
|
|
|
53,520 |
|
|
|
153,831 |
|
|
|
169,973 |
|
Technology |
|
29,240 |
|
|
|
29,628 |
|
|
|
87,492 |
|
|
|
93,159 |
|
General and administrative |
|
24,109 |
|
|
|
18,665 |
|
|
|
66,265 |
|
|
|
61,002 |
|
Total operating expenses |
|
110,890 |
|
|
|
101,813 |
|
|
|
307,588 |
|
|
|
324,134 |
|
Operating income (loss) |
|
(40,930 |
) |
|
|
5,659 |
|
|
|
(53,543 |
) |
|
|
29,655 |
|
Interest income, net |
|
3,201 |
|
|
|
976 |
|
|
|
8,819 |
|
|
|
966 |
|
Other expense, net |
|
(38,731 |
) |
|
|
(46,283 |
) |
|
|
(126,793 |
) |
|
|
(48,378 |
) |
Loss before income taxes |
|
(76,460 |
) |
|
|
(39,648 |
) |
|
|
(171,517 |
) |
|
|
(17,757 |
) |
Provision (benefit) for income taxes |
|
(13,411 |
) |
|
|
(2,653 |
) |
|
|
(24,668 |
) |
|
|
1,968 |
|
Net loss |
$ |
(63,049 |
) |
|
$ |
(36,995 |
) |
|
$ |
(146,849 |
) |
|
$ |
(19,725 |
) |
Net loss per share of common stock: |
|
|
|
|
|
|
|
Basic |
$ |
(1.39 |
) |
|
$ |
(0.81 |
) |
|
$ |
(3.25 |
) |
|
$ |
(0.46 |
) |
Diluted |
$ |
(1.39 |
) |
|
$ |
(0.81 |
) |
|
$ |
(3.25 |
) |
|
$ |
(0.46 |
) |
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
Basic |
|
45,225 |
|
|
|
45,708 |
|
|
|
45,164 |
|
|
|
43,954 |
|
Diluted |
|
45,225 |
|
|
|
45,708 |
|
|
|
45,164 |
|
|
|
43,954 |
|
Overstock.com, Inc.Consolidated
Statements of Cash Flows (Unaudited)(in
thousands) |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(146,849 |
) |
|
$ |
(19,725 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
14,821 |
|
|
|
12,480 |
|
Non-cash operating lease cost |
|
3,858 |
|
|
|
4,138 |
|
Stock-based compensation to employees and directors |
|
17,863 |
|
|
|
13,390 |
|
Increase in deferred tax assets, net |
|
(25,010 |
) |
|
|
(691 |
) |
Loss from equity method securities |
|
126,966 |
|
|
|
49,227 |
|
Other non-cash adjustments |
|
(532 |
) |
|
|
97 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
|
(1,887 |
) |
|
|
745 |
|
Inventories |
|
(4,993 |
) |
|
|
(933 |
) |
Prepaids and other current assets |
|
490 |
|
|
|
1,991 |
|
Other long-term assets, net |
|
(1,195 |
) |
|
|
(1,004 |
) |
Accounts payable |
|
11,749 |
|
|
|
(17,360 |
) |
Accrued liabilities |
|
9,171 |
|
|
|
(11,633 |
) |
Unearned revenue |
|
2,970 |
|
|
|
(8,335 |
) |
Operating lease liabilities |
|
(4,170 |
) |
|
|
(4,285 |
) |
Other long-term liabilities |
|
5,879 |
|
|
|
(506 |
) |
Net cash provided by operating activities |
|
9,131 |
|
|
|
17,596 |
|
Cash flows from investing activities: |
|
|
|
Disbursement for notes receivable |
|
(10,000 |
) |
|
|
— |
|
Purchase of intangible assets |
|
(25,782 |
) |
|
|
— |
|
Purchase of equity securities |
|
— |
|
|
|
(18,920 |
) |
Capital distribution from investment |
|
4 |
|
|
|
1,224 |
|
Expenditures for property and equipment |
|
(16,543 |
) |
|
|
(9,724 |
) |
Other investing activities, net |
|
562 |
|
|
|
(584 |
) |
Net cash used in investing activities |
|
(51,759 |
) |
|
|
(28,004 |
) |
Cash flows from financing activities: |
|
|
|
Repurchase of shares |
|
— |
|
|
|
(60,077 |
) |
Payments of taxes withheld upon vesting of employee stock
awards |
|
(2,581 |
) |
|
|
(3,501 |
) |
Other financing activities, net |
|
(775 |
) |
|
|
(1,646 |
) |
Net cash used in financing activities |
|
(3,356 |
) |
|
|
(65,224 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(45,984 |
) |
|
|
(75,632 |
) |
Cash, cash equivalents, and restricted cash, beginning of
period |
|
371,457 |
|
|
|
503,366 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
325,473 |
|
|
$ |
427,734 |
|
Supplemental Operational DataWe
measure our business using operational metrics, in addition to the
financial metrics shown above and the non-GAAP financial measures
explained below. We believe these metrics provide investors with
additional information regarding our financial results and provide
key performance indicators to track our progress. These indicators
include changes in customer order patterns and the mix of products
purchased by our customers.
Active customers represent the total number of
unique customers who have made at least one purchase during the
prior twelve-month period. This metric captures both the inflow of
new customers and the outflow of existing customers who have not
made a purchase during the prior twelve-month period.
LTM net revenue per active customer represents
total net revenue in a twelve-month period divided by the total
number of active customers for the same twelve-month period.
Orders delivered represents the total number of
orders delivered in any given period, including orders that may
eventually be returned. As we ship a large volume of packages
through multiple carriers, actual delivery dates may not always be
available, and in those circumstances, we estimate delivery dates
based on historical data.
Average order value is defined as total net revenue
in any given period divided by the total number of orders delivered
in that period.
Orders per active customer is defined as orders
delivered in a twelve-month period divided by active customers for
the same twelve-month period.
The following table provides our key operating
metrics:(in thousands, except for LTM net revenue per active
customer, average order value and orders per active customer)
|
Three months endedSeptember
30, |
|
|
2023 |
|
|
2022 |
Active customers |
|
4,907 |
|
|
5,791 |
LTM net revenue per active customer |
$ |
322 |
|
$ |
369 |
Orders delivered |
|
1,945 |
|
|
1,894 |
Average order value |
$ |
192 |
|
$ |
243 |
Orders per active customer |
|
1.48 |
|
|
1.62 |
Non-GAAP Financial Measures and
ReconciliationsWe are providing certain non-GAAP financial
measures in this release and related earnings conference call,
including adjusted diluted earnings (loss) per share, adjusted
EBITDA, and free cash flow. We use these non-GAAP measures
internally in analyzing our financial results and we believe they
are useful to investors, as a supplement to GAAP measures, in
evaluating our ongoing operational performance in the same manner
as our management and board of directors. We have provided
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures in this earnings release. These
non-GAAP financial measures should be used in addition to and in
conjunction with the results presented in accordance with GAAP and
should not be relied upon to the exclusion of GAAP financial
measures.
Adjusted diluted earnings (loss) per share is a
non-GAAP financial measure that is calculated as net income (loss)
less the income or losses recognized from our equity method
securities, net of related tax. We believe that this adjustment to
our net income (loss) before calculating per share amounts for the
current period presented provides a useful comparison between our
operating results from period to period.
Adjusted EBITDA is a non-GAAP financial measure
that is calculated as income (loss) before depreciation and
amortization, stock-based compensation, interest and other income
(expense), provision (benefit) for income taxes, and special items.
We believe the exclusion of certain benefits and expenses in
calculating adjusted EBITDA facilitates operating performance
comparisons on a period-to-period basis. Exclusion of items in the
non-GAAP presentation should not be construed as an inference that
these items are unusual, infrequent or non-recurring.
Free cash flow is a non-GAAP financial measure that
is calculated as net cash provided by or used in operating
activities reduced by expenditures for property and equipment. We
believe free cash flow is a useful measure to evaluate the cash
impact of the operations of the business including purchases of
property and equipment which are a necessary component of our
ongoing operations.
The following table reflects the reconciliation of
adjusted diluted loss per share to diluted loss per share (in
thousands, except per share data):
|
Three months endedSeptember
30, |
|
|
2023 |
|
|
Diluted EPS |
|
Less:
equitymethodincome(loss)1 |
|
AdjustedDiluted EPS |
Numerator: |
|
|
|
|
|
Net loss attributable to common stockholders |
$ |
(63,049 |
) |
|
$ |
(35,563 |
) |
|
$ |
(27,486 |
) |
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
Weighted average shares of common stock outstanding—diluted |
|
45,225 |
|
|
|
45,225 |
|
|
|
45,225 |
|
|
|
|
|
|
|
Net loss per share of common stock: |
|
|
|
|
|
Diluted |
$ |
(1.39 |
) |
|
$ |
(0.78 |
) |
|
$ |
(0.61 |
) |
1 Inclusive of estimated tax impact
The following table reflects the reconciliation of
adjusted EBITDA to net loss (in thousands):
|
Three months endedSeptember
30, |
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(63,049 |
) |
|
$ |
(36,995 |
) |
|
$ |
(146,849 |
) |
|
$ |
(19,725 |
) |
Depreciation and amortization |
|
4,320 |
|
|
|
4,130 |
|
|
|
14,821 |
|
|
|
12,480 |
|
Stock-based compensation |
|
5,798 |
|
|
|
4,056 |
|
|
|
17,863 |
|
|
|
13,390 |
|
Interest income, net |
|
(3,201 |
) |
|
|
(976 |
) |
|
|
(8,819 |
) |
|
|
(966 |
) |
Other expense, net |
|
38,731 |
|
|
|
46,283 |
|
|
|
126,793 |
|
|
|
48,378 |
|
Provision (benefit) for income taxes |
|
(13,411 |
) |
|
|
(2,653 |
) |
|
|
(24,668 |
) |
|
|
1,968 |
|
Special items (see table below) |
|
6,881 |
|
|
|
923 |
|
|
|
8,578 |
|
|
|
1,451 |
|
Adjusted EBITDA |
$ |
(23,931 |
) |
|
$ |
14,768 |
|
|
$ |
(12,281 |
) |
|
$ |
56,976 |
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
Brand integration and related costs |
$ |
5,248 |
|
|
$ |
— |
|
|
$ |
6,334 |
|
|
$ |
— |
|
Restructuring costs1 |
|
1,633 |
|
|
|
878 |
|
|
|
2,244 |
|
|
|
878 |
|
Special legal charges and other |
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
573 |
|
|
$ |
6,881 |
|
|
$ |
923 |
|
|
$ |
8,578 |
|
|
$ |
1,451 |
|
1 Inclusive of certain severance and lease
termination costs.
The following table reflects the reconciliation of
free cash flow to net cash provided by operating activities (in
thousands):
|
Nine months endedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
9,131 |
|
|
$ |
17,596 |
|
Expenditures for property and equipment |
|
(16,543 |
) |
|
|
(9,724 |
) |
Free cash flow |
$ |
(7,412 |
) |
|
$ |
7,872 |
|
Grafico Azioni Overstock com (NASDAQ:OSTK)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Overstock com (NASDAQ:OSTK)
Storico
Da Mag 2023 a Mag 2024