Beyond, Inc. Reports Third Quarter 2024 Financial Results
— Transforming its Asset-Light Ecommerce Retail Business into an Ecommerce and Affinity Data Monetization Model with a Strong Technology Focus —
“We delivered sequential improvement in gross margin and continued to recognize the benefits of our cost reduction actions, ultimately delivering against our commitment to improve adjusted EBITDA,” said
“We are focused on driving specific actions to strengthen our core asset-light ecommerce business and transforming Beyond to an affinity marketing model,” said
“We are in the process of transforming our asset-light business into an affinity and data monetization model with a strong technology focus, comprised of a collection of brands offered on a comprehensive platform from which customers can unlock value within the four walls of their home and four corners of their property,” said
Third Quarter 2024 Results*
- Orders delivered of 1.6 million, a decrease of 19% year-over-year
- Active customers of 6.0 million, an increase of 21% year-over-year
-
Total net revenue of
$311 million , a decrease of 16.6% year-over-year -
Gross profit of
$66 million , or 21.2% of total net revenue -
Net loss of
$61 million -
Diluted net loss per share of
$1.33 ; Adjusted diluted net loss per share (non-GAAP) of$0.96 -
Adjusted EBITDA (non-GAAP) of
($32) million , which represents (10.2)% of net revenue -
Cash and cash equivalents totaled
$140 million at the end of the third quarter
*Certain terms, such as orders delivered and active customers, are defined under "Supplemental Operational Data" below.
Earnings Webcast and Replay Information
Beyond will host a webcast to discuss its third quarter 2024 financial results and its strategic vision, key initiatives, and provide business updates today,
A replay of the webcast will be available at https://investors.beyond.com shortly after the live event has ended.
About Beyond
Cautionary Note Regarding Forward-Looking Statements
This press release and webcast to discuss our financial results and strategy may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding our quarterly earnings reporting, forecasts of our growth, business strategy, improved conversion, marketing, and customer retention, planned expense reductions, value and monetization of our intellectual property, future strategic ventures, global loyalty program, improved financial performance, increased shareholder value, and the timing of any of the foregoing. 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 known and unknown risks, uncertainties, and other important factors 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/or payment processors. Other risks and uncertainties include, among others, risks arising from changes to our organizational structure, management, workforce or compensation structure, impacts from changing our company name, impacts from our use of the Overstock, Zulily, and Bed Bath & Beyond brands or the platforms on which they are offered, our ability to generate positive cash flow, impacts from our evolving business practices, including strategic ventures, and expanded product and service offerings, impacts from directly sourced products, any problems with our infrastructure, including re-location or third-party maintenance of our computer and communication hardware, cyberattacks, data loss or data breaches affecting us, adverse tax, regulatory or legal developments, any restrictions on tracking technologies, any failure to effectively utilize technological advancements or protect our intellectual property, negative economic consequences of global conflict, politics including the presidential election, and whether our partnership with
|
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
140,371 |
|
|
$ |
302,605 |
|
Restricted cash |
|
1,126 |
|
|
|
144 |
|
Accounts receivable, net |
|
15,027 |
|
|
|
19,420 |
|
Inventories |
|
11,058 |
|
|
|
13,040 |
|
Prepaids and other current assets |
|
15,500 |
|
|
|
14,864 |
|
Total current assets |
|
183,082 |
|
|
|
350,073 |
|
Property and equipment, net |
|
27,211 |
|
|
|
27,577 |
|
Intangible assets, net |
|
30,509 |
|
|
|
25,254 |
|
|
|
6,160 |
|
|
|
6,160 |
|
Equity securities |
|
112,468 |
|
|
|
155,873 |
|
Operating lease right-of-use assets |
|
1,957 |
|
|
|
3,468 |
|
Other long-term assets, net |
|
13,928 |
|
|
|
12,951 |
|
Property and equipment, net held for sale |
|
53,023 |
|
|
|
54,462 |
|
Total assets |
$ |
428,338 |
|
|
$ |
635,818 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
87,962 |
|
|
$ |
106,070 |
|
Accrued liabilities |
|
54,321 |
|
|
|
73,682 |
|
Unearned revenue |
|
44,949 |
|
|
|
49,597 |
|
Operating lease liabilities, current |
|
1,807 |
|
|
|
2,814 |
|
Current debt, net held for sale |
|
— |
|
|
|
232 |
|
Total current liabilities |
|
189,039 |
|
|
|
232,395 |
|
Operating lease liabilities, non-current |
|
355 |
|
|
|
940 |
|
Other long-term liabilities |
|
8,519 |
|
|
|
9,107 |
|
Long-term debt, net held for sale |
|
34,232 |
|
|
|
34,244 |
|
Total liabilities |
|
232,145 |
|
|
|
276,686 |
|
Stockholders' equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
|
|
||||
Issued shares - 52,299 and 51,770 |
|
|
|
||||
Outstanding shares - 45,817 and 45,414 |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
1,025,505 |
|
|
|
1,007,649 |
|
Accumulated deficit |
|
(659,207 |
) |
|
|
(481,671 |
) |
Accumulated other comprehensive loss |
|
(494 |
) |
|
|
(506 |
) |
|
|
(169,616 |
) |
|
|
(166,345 |
) |
Total stockholders' equity |
|
196,193 |
|
|
|
359,132 |
|
Total liabilities and stockholders' equity |
$ |
428,338 |
|
$ |
635,818 |
|
|||||||||||||||
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
311,428 |
|
|
$ |
373,313 |
|
|
$ |
1,091,813 |
|
|
$ |
1,176,664 |
|
Cost of goods sold |
|
245,453 |
|
|
|
290,410 |
|
|
|
871,311 |
|
|
|
884,508 |
|
Gross profit |
|
65,975 |
|
|
|
82,903 |
|
|
|
220,502 |
|
|
|
292,156 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
51,859 |
|
|
|
57,541 |
|
|
|
186,055 |
|
|
|
153,831 |
|
Technology |
|
27,673 |
|
|
|
29,240 |
|
|
|
84,596 |
|
|
|
87,492 |
|
General and administrative |
|
17,571 |
|
|
|
24,109 |
|
|
|
56,556 |
|
|
|
66,265 |
|
Customer service and merchant fees |
|
12,425 |
|
|
|
12,943 |
|
|
|
41,374 |
|
|
|
38,111 |
|
Total operating expenses |
|
109,528 |
|
|
|
123,833 |
|
|
|
368,581 |
|
|
|
345,699 |
|
Operating loss |
|
(43,553 |
) |
|
|
(40,930 |
) |
|
|
(148,079 |
) |
|
|
(53,543 |
) |
Interest income, net |
|
1,554 |
|
|
|
3,201 |
|
|
|
6,580 |
|
|
|
8,819 |
|
Other expense, net |
|
(18,842 |
) |
|
|
(38,731 |
) |
|
|
(35,402 |
) |
|
|
(126,793 |
) |
Loss before income taxes |
|
(60,841 |
) |
|
|
(76,460 |
) |
|
|
(176,901 |
) |
|
|
(171,517 |
) |
Provision (benefit) for income taxes |
|
189 |
|
|
|
(13,411 |
) |
|
|
635 |
|
|
|
(24,668 |
) |
Net loss |
$ |
(61,030 |
) |
|
$ |
(63,049 |
) |
|
$ |
(177,536 |
) |
|
$ |
(146,849 |
) |
Net loss per share of common stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(1.33 |
) |
|
$ |
(1.39 |
) |
|
$ |
(3.88 |
) |
|
$ |
(3.25 |
) |
Diluted |
$ |
(1.33 |
) |
|
$ |
(1.39 |
) |
|
$ |
(3.88 |
) |
|
$ |
(3.25 |
) |
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
45,771 |
|
|
|
45,225 |
|
|
|
45,700 |
|
|
|
45,164 |
|
Diluted |
|
45,771 |
|
|
|
45,225 |
|
|
|
45,700 |
|
|
|
45,164 |
|
|||||||
|
Nine months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(177,536 |
) |
|
$ |
(146,849 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
12,739 |
|
|
|
14,821 |
|
Non-cash operating lease cost |
|
2,155 |
|
|
|
3,858 |
|
Stock-based compensation to employees and directors |
|
16,384 |
|
|
|
17,863 |
|
(Increase) decrease in deferred tax assets, net |
|
184 |
|
|
|
(25,010 |
) |
Gain on sale of intangible assets |
|
(10,250 |
) |
|
|
— |
|
Write-down of assets held for sale |
|
1,648 |
|
|
|
— |
|
Loss from equity method securities |
|
43,405 |
|
|
|
126,966 |
|
Other non-cash adjustments |
|
(400 |
) |
|
|
(532 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
4,393 |
|
|
|
(1,887 |
) |
Inventories |
|
1,982 |
|
|
|
(4,993 |
) |
Prepaids and other current assets |
|
(438 |
) |
|
|
490 |
|
Other long-term assets, net |
|
(1,335 |
) |
|
|
(1,195 |
) |
Accounts payable |
|
(18,554 |
) |
|
|
11,749 |
|
Accrued liabilities |
|
(19,372 |
) |
|
|
9,171 |
|
Unearned revenue |
|
(4,648 |
) |
|
|
2,970 |
|
Operating lease liabilities |
|
(2,168 |
) |
|
|
(4,170 |
) |
Other long-term liabilities |
|
(814 |
) |
|
|
5,879 |
|
Net cash (used in) provided by operating activities |
|
(152,625 |
) |
|
|
9,131 |
|
Cash flows from investing activities: |
|
|
|
||||
Proceeds from the sale of intangible assets |
|
10,250 |
|
|
|
— |
|
Expenditures for property and equipment |
|
(11,329 |
) |
|
|
(16,543 |
) |
Purchase of intangible assets |
|
(6,033 |
) |
|
|
(25,782 |
) |
Disbursement for notes receivable |
|
— |
|
|
|
(10,000 |
) |
Capital distribution from investment |
|
— |
|
|
|
— |
|
Other investing activities, net |
|
566 |
|
|
|
566 |
|
Net cash used in investing activities |
|
(6,546 |
) |
|
|
(51,759 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payments of taxes withheld upon vesting of employee stock awards |
|
(3,271 |
) |
|
|
(2,581 |
) |
Other financing activities, net |
|
1,190 |
|
|
|
(775 |
) |
Net cash used in financing activities |
|
(2,081 |
) |
|
|
(3,356 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(161,252 |
) |
|
|
(45,984 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
302,749 |
|
|
|
371,457 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
141,497 |
|
|
$ |
325,473 |
|
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 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.
Last twelve months (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 ended
|
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|
|
2024 |
|
|
|
2023 |
|
Active customers |
|
5,961 |
|
|
4,907 |
||
LTM net revenue per active customer |
$ |
248 |
|
|
$ |
322 |
|
Orders delivered |
|
1,569 |
|
|
|
1,945 |
|
Average order value |
$ |
199 |
|
|
$ |
192 |
|
Orders per active customer |
|
1.39 |
|
|
|
1.48 |
|
Non-GAAP Financial Measures and Reconciliations
We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted diluted net 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 and, in the case of free cash flow, our liquidity position, 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 net loss per share is a non-GAAP financial measure that is calculated as net income (net 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 (net 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 net income (net 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 tables reflects the reconciliation of adjusted diluted net loss per share to diluted net loss per share (in thousands, except per share data):
|
Three months ended
|
||||||||||
|
2024 |
||||||||||
|
Diluted EPS |
|
Less: equity
|
|
Adjusted
|
||||||
Numerator: |
|
|
|
|
|
||||||
Net loss |
$ |
(61,030 |
) |
|
$ |
(17,199 |
) |
|
$ |
(43,831 |
) |
|
|
|
|
|
|
||||||
Denominator: |
|
|
|
|
|
||||||
Weighted average shares of common stock outstanding—diluted |
|
45,771 |
|
|
|
45,771 |
|
|
|
45,771 |
|
|
|
|
|
|
|
||||||
Net loss per share of common stock: |
|
|
|
|
|
||||||
Diluted |
$ |
(1.33 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.96 |
) |
1 Inclusive of estimated tax impact |
The following table reflects the reconciliation of adjusted EBITDA to net loss (in thousands):
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(61,030 |
) |
|
$ |
(63,049 |
) |
|
$ |
(177,536 |
) |
|
$ |
(146,849 |
) |
Depreciation and amortization |
|
4,384 |
|
|
|
4,320 |
|
|
|
12,739 |
|
|
|
14,821 |
|
Stock-based compensation |
|
6,349 |
|
|
|
5,798 |
|
|
|
16,384 |
|
|
|
17,863 |
|
Interest income, net |
|
(1,554 |
) |
|
|
(3,201 |
) |
|
|
(6,580 |
) |
|
|
(8,819 |
) |
Other expense, net |
|
18,842 |
|
|
|
38,731 |
|
|
|
35,402 |
|
|
|
126,793 |
|
Provision (benefit) for income taxes |
|
189 |
|
|
|
(13,411 |
) |
|
|
635 |
|
|
|
(24,668 |
) |
Special items (see table below) |
|
907 |
|
|
|
6,881 |
|
|
|
2,824 |
|
|
|
8,578 |
|
Adjusted EBITDA |
$ |
(31,913 |
) |
|
$ |
(23,931 |
) |
|
$ |
(116,132 |
) |
|
$ |
(12,281 |
) |
|
|
|
|
|
|
|
|
||||||||
Special items: |
|
|
|
|
|
|
|
||||||||
Brand integration and related costs |
$ |
171 |
|
|
$ |
5,248 |
|
|
$ |
374 |
|
|
$ |
6,334 |
|
Restructuring costs1 |
|
736 |
|
|
|
1,633 |
|
|
|
2,450 |
|
|
|
2,244 |
|
|
$ |
907 |
|
|
$ |
6,881 |
|
|
$ |
2,824 |
|
|
$ |
8,578 |
|
1 Inclusive of certain severance and lease termination costs. |
The following table reflects the reconciliation of free cash flow to net cash (used in) provided by operating activities (in thousands):
|
Nine months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash (used in) provided by operating activities |
$ |
(152,625 |
) |
|
$ |
9,131 |
|
Expenditures for property and equipment |
|
(11,329 |
) |
|
|
(16,543 |
) |
Free cash flow |
$ |
(163,954 |
) |
|
$ |
(7,412 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024935277/en/
ir@beyond.com
pr@beyond.com
Source: