Overstock.com, Inc. (NASDAQ:OSTK) today reported financial
results for the quarter ended March 31, 2021.
First Quarter 2021 Financial Highlights, from continuing
operations
|
• |
Total net revenue was $660 million, an increase of 94% year over
year |
|
• |
Gross profit was $154 million or 23.3% of total net revenue, an
increase of 141 basis points year over year |
|
• |
Income from continuing operations was $26 million, an improvement
of $40 million year over year |
|
• |
Diluted earnings per share was $0.56, an improvement of $0.90 year
over year |
|
• |
Adjusted EBITDA (non-GAAP) was $34 million, an improvement of $40
million year over year |
|
• |
YTD net cash provided by operating activities was $74 million, an
improvement of $76 million year over year |
|
• |
YTD free cash flow (non-GAAP) improved $76 million year over
year |
|
• |
At the end of the first quarter, cash and cash equivalents totaled
$535 million |
"On the heels of a record 2020, Overstock continues to execute
consistently and delivered strong results for the first quarter of
2021," said Overstock CEO Jonathan Johnson. "Our strong momentum
reflects our purposeful and strategic focus on our home business
and the operational changes we've made and continue to put in
place. For the first quarter, our net revenue increased by 94%, and
our active customers nearly doubled again. Our focus on improving
the customer experience and making our brand vision of 'Dream Homes
for All' a reality is paying off. In addition, our strategic
partnership with Pelion Venture Partners for oversight of Medici
Ventures' blockchain assets closed ahead of schedule and we believe
it will provide the portfolio companies the opportunities they need
to succeed. We have had another great quarter of profitable market
share growth! We believe Overstock is well positioned to sustain
this profitable path through 2021 and beyond. I look forward to
providing a full update on our first quarter performance during our
earnings call."
First Quarter 2021 Operational Highlights
|
• |
Active customers reached 9.9 million as of March 31, 2021, an
increase of 92% year over year |
|
• |
LTM net revenue per active customer was $283 as of March 31, 2021,
an increase of 3.7% year over year |
|
• |
Orders delivered in the first quarter of 2021 were 3.6 million, an
increase of 66% year over year |
|
• |
Average order value was $183 for the first quarter of 2021, an
increase of 17% year over year |
|
• |
Orders per active customer, measured as LTM orders divided by
active customers, was 1.66 for the first quarter of 2021, compared
to 1.70 for the first quarter of 2020 |
|
• |
Orders placed on a mobile device were 50.1% of gross merchandise
sales in the first quarter 2021, an increase of 380 basis points
year over year |
Partnership with Pelion Venture Partners
On April 23, 2021, ahead of schedule, Overstock closed its
blockchain fund transaction with Pelion Venture Partners, a
third-party venture capital firm with a proven track record of
successfully investing in early-stage companies, to oversee Medici
Ventures' blockchain assets. "I expect Pelion, which will oversee
the portfolio and make follow-on investment decisions, will take
these companies to the next level and help guide them to economic
success. Overstock will now focus on its core e-commerce business,
which continues to achieve tremendous revenue, profits and market
share growth," noted Johnson. In connection with the transaction,
Medici Ventures, Overstock's wholly owned blockchain-focused
subsidiary, was converted to a limited partnership (the "Fund").
Overstock is the sole limited partner of the Fund, and Pelion acts
as the general partner of the Fund. Pelion now has sole authority
and responsibility for the Fund's investment decisions and in
exercising all shareholder rights the Fund holds in the portfolio
companies. The Fund has an eight-year lifespan and a total capital
commitment of $45 million. The Fund will return invested capital to
Overstock first and then apportion profits on successful exits as
outlined in the Fund's Limited Partnership Agreement.
Financial Reporting Presentation in Accordance with the
Pelion Transaction
Medici Ventures' blockchain businesses met the criteria to be
reported as held for sale and discontinued operations as of March
31, 2021. Accordingly, we have classified the related assets and
liabilities as held for sale in our consolidated balance sheets and
the related operating results as discontinued operations in our
consolidated statements of operations, for all periods presented.
As a result of the transaction, Overstock has reorganized its
remaining businesses into a single reportable operating segment,
Retail. Corporate-related overhead costs are included in Retail
continuing operations.
Earnings Webcast Information
Overstock will hold a conference call and webcast to discuss its
first quarter 2021 financial results on Thursday, April 29,
2021, at 8:30 a.m. ET. To access the live webcast and presentation
slides, go to http://investors.overstock.com. To listen to the
conference call via telephone, dial (877) 673-5346 and enter
conference ID 5898642 when prompted. Participants outside the U.S.
or Canada who do not have Internet access should dial +1 (724)
498-4326, then enter the conference ID provided above.
A replay of the conference call will be available at
http://investors.overstock.com, starting two hours after the live
call has ended. An audio replay of the webcast will be available
via telephone starting at 11:30 a.m. ET on Thursday, April 29,
2021, through 11:30 a.m. ET on Thursday, May 13, 2021. To
listen to the recorded webcast by phone, dial (855) 859-2056, then
enter the conference ID provided above. Outside the U.S. or Canada,
dial +1 (404) 537-3406 and enter the conference ID provided
above.
Questions may be emailed in advance of the call to
ir@overstock.com.
About Overstock.com
Overstock.com, Inc. (Common Stock (NASDAQ:OSTK) / Series A-1
Preferred Stock (tZERO ATS:OSTKO) / Series B Preferred Stock
(OTCQX:OSTBP)) is an online retailer and technology company based
in Salt Lake City, Utah. Its 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, which is visited by tens of
millions of customers a month, also features a marketplace
providing customers access to millions of products from third-party
sellers. In 2014, Overstock was the first major retailer to accept
cryptocurrency as a form of payment and continues to do so.
Overstock regularly posts information about the Company and other
related matters on the Newsroom and Investor Relations pages on its
website, Overstock.com.
O, Overstock.com, O.com, Club O, and Worldstock are
registered 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
Statements
This press release and the April 29, 2021 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, statements regarding expectations with respect
to the performance of Pelion in managing the Fund. These
forward-looking statements are inherently difficult to predict.
Actual results could differ materially for a variety of reasons,
including but not limited to, the duration of the COVID-19 pandemic
and its ultimate impact on our business and results of operations,
adverse tax, regulatory or legal developments, and competition,
including how such factors will be impacted at such time as the
pandemic subsides throughout the country and globally. Other risks
and uncertainties include, among others, the inherent risks
associated with the businesses that Medici Ventures and tZERO are
pursuing, our continually evolving business model, and difficulties
we may have with our infrastructure, our fulfillment partners or
our payment processors, including cyber-attacks or data breaches
affecting us or any of them, and difficulties we may have with our
search engine optimization results. More information about factors
that could potentially affect our financial results are included in
our Form 10-K for the year ended December 31, 2020, which was filed
with the Securities and Exchange Commission on February 26, 2021,
and in our subsequent filings with the Securities and Exchange
Commission. The Form 10-K and our subsequent filings with the
Securities and Exchange commission 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:Alexis
Callahan801-947-5126ir@overstock.com |
Media Relations:Megan Herrick801-947-3564pr@overstock.com |
|
Overstock.com, Inc.Consolidated
Balance Sheets (Unaudited)(in thousands, except
per share data) |
| |
March 31,2021 |
|
December 31,2020 |
|
Assets |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
534,776 |
|
|
|
$ |
495,425 |
|
|
|
Restricted cash |
1,232 |
|
|
|
1,197 |
|
|
|
Accounts receivable, net |
38,518 |
|
|
|
22,867 |
|
|
|
Inventories |
6,711 |
|
|
|
6,243 |
|
|
|
Prepaids and other current assets |
23,019 |
|
|
|
22,879 |
|
|
|
Current assets held for sale |
— |
|
|
|
34,129 |
|
|
|
Total current assets |
604,256 |
|
|
|
582,740 |
|
|
| Property and equipment,
net |
110,804 |
|
|
|
113,767 |
|
|
| Goodwill |
6,160 |
|
|
|
6,160 |
|
|
| Operating lease right-of-use
assets |
15,450 |
|
|
|
17,297 |
|
|
| Other long-term assets,
net |
3,692 |
|
|
|
4,095 |
|
|
| Long-term assets held for
sale |
153,362 |
|
|
|
106,155 |
|
|
|
Total assets |
$ |
893,724 |
|
|
|
$ |
830,214 |
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
135,383 |
|
|
|
$ |
109,759 |
|
|
|
Accrued liabilities |
130,093 |
|
|
|
123,646 |
|
|
|
Unearned revenue |
96,308 |
|
|
|
72,165 |
|
|
|
Operating lease liabilities, current |
4,837 |
|
|
|
5,152 |
|
|
|
Other current liabilities |
3,372 |
|
|
|
2,935 |
|
|
|
Current liabilities held for sale |
— |
|
|
|
13,924 |
|
|
|
Total current liabilities |
369,993 |
|
|
|
327,581 |
|
|
| Long-term debt, net |
40,505 |
|
|
|
41,334 |
|
|
| Operating lease liabilities,
non-current |
11,572 |
|
|
|
13,206 |
|
|
| Other long-term
liabilities |
3,680 |
|
|
|
4,082 |
|
|
| Long-term liabilities held for
sale |
19,034 |
|
|
|
7,685 |
|
|
|
Total liabilities |
444,784 |
|
|
|
393,888 |
|
|
| Stockholders' equity: |
|
|
|
|
Preferred stock, $0.0001 par value, authorized shares - 5,000 |
|
|
|
|
Series A-1, issued and outstanding - 4,204 and 4,204 |
— |
|
|
|
— |
|
|
|
Series B, issued and outstanding - 357 and 357 |
— |
|
|
|
— |
|
|
|
Common stock, $0.0001 par value, authorized shares - 100,000 |
|
|
|
|
Issued shares - 46,589 and 46,331 |
|
|
|
|
Outstanding shares - 43,000 and 42,768 |
4 |
|
|
|
4 |
|
|
|
Additional paid-in capital |
951,615 |
|
|
|
970,873 |
|
|
|
Accumulated deficit |
(509,140 |
) |
|
|
(525,233 |
) |
|
|
Accumulated other comprehensive loss |
(549 |
) |
|
|
(553 |
) |
|
|
Treasury stock at cost - 3,589 and 3,563 |
(78,048 |
) |
|
|
(71,399 |
) |
|
|
Equity attributable to stockholders of Overstock.com, Inc. |
363,882 |
|
|
|
373,692 |
|
|
|
Equity attributable to noncontrolling interests |
85,058 |
|
|
|
62,634 |
|
|
|
Total stockholders' equity |
448,940 |
|
|
|
436,326 |
|
|
|
Total liabilities and stockholders'
equity |
$ |
893,724 |
|
|
|
$ |
830,214 |
|
|
|
Overstock.com, Inc.Consolidated
Statements of Operations (Unaudited)(in thousands,
except per share data) |
| |
Three months endedMarch 31, |
| |
2021 |
|
2020 |
| Net revenue |
$ |
659,861 |
|
|
|
$ |
339,598 |
|
|
| Cost of goods sold |
506,337 |
|
|
|
265,392 |
|
|
| Gross profit |
153,524 |
|
|
|
74,206 |
|
|
| Operating expenses |
|
|
|
|
Sales and marketing |
73,538 |
|
|
|
36,345 |
|
|
|
Technology |
30,523 |
|
|
|
27,281 |
|
|
|
General and administrative |
22,871 |
|
|
|
23,885 |
|
|
|
Total operating expenses |
126,932 |
|
|
|
87,511 |
|
|
| Operating income (loss) |
26,592 |
|
|
|
(13,305 |
) |
|
| Interest expense, net |
(155 |
) |
|
|
(11 |
) |
|
| Other expense, net |
(226 |
) |
|
|
(287 |
) |
|
| Income (loss) from continuing
operations before income taxes |
26,211 |
|
|
|
(13,603 |
) |
|
| Provision for income
taxes |
193 |
|
|
|
163 |
|
|
| Income (loss) from continuing
operations |
26,018 |
|
|
|
(13,766 |
) |
|
| Loss from discontinued
operations, net of tax |
(10,126 |
) |
|
|
(5,799 |
) |
|
| Net income (loss) |
15,892 |
|
|
|
(19,565 |
) |
|
|
Less: Net loss attributable to noncontrolling
interests—discontinued operations |
(201 |
) |
|
|
(3,232 |
) |
|
| Net income (loss) attributable
to stockholders of Overstock.com, Inc. |
$ |
16,093 |
|
|
|
$ |
(16,333 |
) |
|
| Net income (loss) per share of
common stock: |
|
|
|
|
Net income (loss) attributable to common shares—basic |
|
|
|
|
Continuing operations |
$ |
0.57 |
|
|
|
$ |
(0.34 |
) |
|
|
Discontinued operations |
(0.23 |
) |
|
|
(0.06 |
) |
|
|
Total |
$ |
0.34 |
|
|
|
$ |
(0.40 |
) |
|
|
Net income (loss) attributable to common shares—diluted |
|
|
|
|
Continuing operations |
$ |
0.56 |
|
|
|
$ |
(0.34 |
) |
|
|
Discontinued operations |
(0.23 |
) |
|
|
(0.06 |
) |
|
|
Total |
$ |
0.33 |
|
|
|
$ |
(0.40 |
) |
|
| Weighted average shares of
common stock outstanding: |
|
|
|
|
Basic |
42,885 |
|
|
|
40,158 |
|
|
|
Diluted |
43,320 |
|
|
|
40,158 |
|
|
|
Overstock.com, Inc.Consolidated
Statements of Cash Flows (Unaudited)(in
thousands) |
| |
Three months endedMarch 31, |
| |
2021 |
|
2020 |
|
Cash flows from operating activities: |
|
|
|
|
Consolidated net income (loss) |
$ |
15,892 |
|
|
|
$ |
(19,565 |
) |
|
|
Loss from discontinued operations, net of income taxes |
10,126 |
|
|
|
5,799 |
|
|
|
Adjustments to reconcile consolidated net income (loss) to net cash
provided by (used in) operating activities: |
|
|
|
|
Depreciation and amortization |
5,146 |
|
|
|
5,569 |
|
|
|
Non-cash operating lease cost |
1,320 |
|
|
|
1,431 |
|
|
|
Stock-based compensation to employees and directors |
2,305 |
|
|
|
2,681 |
|
|
|
Other non-cash adjustments |
638 |
|
|
|
429 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable, net |
(15,651 |
) |
|
|
(6,902 |
) |
|
|
Inventories |
(468 |
) |
|
|
1,162 |
|
|
|
Prepaids and other current assets |
447 |
|
|
|
1,566 |
|
|
|
Other long-term assets, net |
(448 |
) |
|
|
457 |
|
|
|
Accounts payable |
25,589 |
|
|
|
(1,708 |
) |
|
|
Accrued liabilities |
6,693 |
|
|
|
(3,663 |
) |
|
|
Unearned revenue |
24,143 |
|
|
|
12,903 |
|
|
|
Operating lease liabilities |
(1,379 |
) |
|
|
(1,626 |
) |
|
|
Other long-term liabilities |
(269 |
) |
|
|
(180 |
) |
|
|
Net cash provided by (used in) continuing operating activities |
74,084 |
|
|
|
(1,647 |
) |
|
|
Net cash used in discontinued operating activities |
(12,353 |
) |
|
|
(10,580 |
) |
|
|
Net cash provided by (used in) operating activities |
61,731 |
|
|
|
(12,227 |
) |
|
| Cash flows from
investing activities: |
|
|
|
|
Expenditures for property and equipment |
(2,395 |
) |
|
|
(2,638 |
) |
|
|
Other investing activities, net |
(367 |
) |
|
|
(99 |
) |
|
|
Net cash used in continuing investing activities |
(2,762 |
) |
|
|
(2,737 |
) |
|
|
Net cash provided by (used in) discontinued investing
activities |
5,737 |
|
|
|
(3,262 |
) |
|
|
Net cash provided by (used in) investing activities |
2,975 |
|
|
|
(5,999 |
) |
|
| Cash flows from
financing activities: |
|
|
|
|
Payments on long-term debt |
(551 |
) |
|
|
— |
|
|
|
Proceeds from long-term debt |
— |
|
|
|
47,500 |
|
|
|
Proceeds from sale of common stock, net of offering costs |
— |
|
|
|
2,848 |
|
|
|
Payments of taxes withheld upon vesting of restricted stock |
(7,292 |
) |
|
|
(1,686 |
) |
|
|
Other financing activities, net |
(1 |
) |
|
|
(2,325 |
) |
|
|
Net cash provided by (used in) continuing financing activities |
(7,844 |
) |
|
|
46,337 |
|
|
|
Net cash provided by discontinued financing activities |
2,085 |
|
|
|
912 |
|
|
|
Net cash provided by (used in) financing activities |
(5,759 |
) |
|
|
47,249 |
|
|
| Net increase in cash, cash
equivalents, and restricted cash |
58,947 |
|
|
|
29,023 |
|
|
| Cash, cash equivalents, and
restricted cash, beginning of period, inclusive of cash balances
classified as held for sale |
519,181 |
|
|
|
114,898 |
|
|
| Cash, cash equivalents, and
restricted cash, end of period, inclusive of cash balances
classified as held for sale |
578,128 |
|
|
|
143,921 |
|
|
|
Less: Cash, cash equivalents, and restricted cash held for
sale |
42,120 |
|
|
|
15,440 |
|
|
| Cash, cash equivalents, and
restricted cash, end of period |
$ |
536,008 |
|
|
|
$ |
128,481 |
|
|
Supplemental Operational Data
We 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, including indicators of our growth, customers' purchasing
patterns, and the mix of products purchased by our customers.
Active customers represents 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 key operating metrics for the
Retail business:(in thousands, except for LTM net revenue per
active customer, average order value and orders per active
customer)
| |
Three months endedMarch 31, |
| |
2021 |
|
2020 |
| Active customers |
9,938 |
|
|
5,170 |
|
| LTM net revenue per active
customer |
283 |
|
|
273 |
|
| Orders delivered |
3,608 |
|
|
2,174 |
|
| Average order value |
183 |
|
|
156 |
|
| Orders per active
customer |
1.66 |
|
|
1.70 |
|
Non-GAAP Financial Measures and
Reconciliations
We are providing certain non-GAAP financial measures in this
release and related earnings conference call, including Adjusted
EBITDA and Free cash flow. We use these non-GAAP measures
internally in analyzing our financial results at both the
consolidated and segment level 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 EBITDA is a non-GAAP financial measure that is
calculated as income (loss) from continuing operations 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 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
continuing 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
EBITDA to income (loss) from continuing operations (in
thousands):
| |
Three months endedMarch 31, |
| |
2021 |
|
2020 |
| |
|
|
|
| Income (loss) from
continuing operations |
$ |
26,018 |
|
|
|
$ |
(13,766 |
) |
|
|
Depreciation and amortization |
5,146 |
|
|
|
5,569 |
|
|
|
Stock-based compensation |
2,305 |
|
|
|
2,681 |
|
|
|
Interest expense, net |
155 |
|
|
|
11 |
|
|
|
Other expense, net |
226 |
|
|
|
287 |
|
|
|
Provision for income taxes |
193 |
|
|
|
163 |
|
|
|
Special items (see table below) |
(187 |
) |
|
|
(1,486 |
) |
|
| Adjusted
EBITDA |
$ |
33,856 |
|
|
|
$ |
(6,541 |
) |
|
| |
|
|
|
| Special items: |
|
|
|
|
Special legal charges (1) |
$ |
(187 |
) |
|
|
$ |
(2,501 |
) |
|
|
Severance |
— |
|
|
|
1,015 |
|
|
| |
$ |
(187 |
) |
|
|
$ |
(1,486 |
) |
|
(1) — Includes
amounts associated with the resolution for and adjustments to
various legal contingencies.
The following table reflects the reconciliation of Free cash
flow to Net cash provided by (used in) continuing operating
activities (in thousands):
| |
Three months endedMarch 31, |
| |
2021 |
|
2020 |
| Net cash provided by (used in)
continuing operating activities |
$ |
74,084 |
|
|
|
$ |
(1,647 |
) |
|
| Expenditures for property and
equipment |
(2,395 |
) |
|
|
(2,638 |
) |
|
| Free cash flow |
$ |
71,689 |
|
|
|
$ |
(4,285 |
) |
|
Overstock com (NASDAQ:OSTK)
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From Mar 2024 to Apr 2024
Overstock com (NASDAQ:OSTK)
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From Apr 2023 to Apr 2024
