Overstock Reports Financial Results for First Quarter 2023

April 30, 2023  by HFBusiness Staff in Business Strategy, Industry   

First Quarter 2023 Financial Highlights

~   Total net revenue was $381 million, a decrease of 29% year over year
~   Gross profit of $90 million, or 23.5% of total net revenue
~   Net loss of $10 million
~   Diluted net loss per share of $0.23; Adjusted diluted net loss per share (non-GAAP) of $0.10
~   Adjusted EBITDA (non-GAAP) of $3 million, which represents 0.9% of net revenue
~   Cash and cash equivalents totaled $375 million at the end of the first quarter

“The team delivered positive adjusted EBITDA for the twelfth consecutive quarter,” said Overstock CEO Jonathan Johnson. “I am pleased with their efforts to accomplish this in a challenging environment. Our revenue trend improved each month during the quarter, with a more meaningful improvement in late Q1.”

“Importantly, our home-only revenue trend slightly improved in Q1 after stabilizing over the prior two quarters. We continued to navigate a highly competitive landscape to deliver healthy gross margins. While the economic and consumer environment remains uncertain, our strong cash position allows us to focus on executing our plans for the year and continue to deploy new strategies to drive growth.”

“This month, we launched the next phase of our marketing campaign to build on our brand’s association with home,” continued Johnson. “We are highlighting our smart value brand pillar of ‘quality and style for less’ – a key differentiator for Overstock in the large and fragmented furniture and home furnishings market. I look forward to providing a full update on our first quarter 2023 performance during our earnings call.”

First Quarter 2023 Operational Metrics*

~   Active customers of 4.8 million, a decrease of 35% year over year
~   Last Twelve Months (LTM) net revenue per active customer of $370, an increase of 4% year over year
~   Orders delivered of 1.7 million, a decrease of 29% year over year
~   Average order value of $220, a decrease of 1% year over year
~   Orders per active customer of 1.57, a decrease of 6% year over year
~   Orders placed on a mobile device were 51% 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.

A replay of the conference call will be available at http://investors.overstock.com.