Liquidity Services (LQDT) 12 Dec 242024 Q4 Earnings call transcript

Welcome to Liquidity Services Inc. Fourth Quarter of Fiscal Year 2024 Financial Results Conference Call. My name is Lisa, and I will be your operator for today's call. Please note that this conference is being recorded. [Operator Instructions] Later, we will conduct a question-and-answer session.

the and to Controller. turn Services Patrick, now President Vice will call Michael over Liquidity I Please ahead. go

Good morning.

Actual On include the Executive views reflect Executive available following Officer; XX, Chief call discussion and December Officer. as for and forward-looking Chairman today Financial materially. and results to prepared XXXX, Jorge of are questions Bill and after may today, Celaya, remarks. will responses differ management's our They Vice statements. their and Angrick, President will be our The Chief questions your

information factors our release results [indiscernible] XX-K, the annual press front in results in Additional about impact recent financial that our which well as press as Form with is release commentary to of could you, financial metrics today's filings SEC, potentially most on and today's including call, our included please on quarter. includes in report our and the have

superior supplemental should non-GAAP components not and the of as comparable management be considered we In posted additional and as operating this GAAP these discuss measures measures. you uses will including measure substitute of This these our call, a disclosures to each their with supplemental measures SEC, or of financial GAAP the find certain regarding results. release investors. certain and available. also non-GAAP believe is press Management which our with gross website, includes measures, will management reconciliations of volume merchandise certain which on performance, During for operating data also most is useful operating for data filings a

CEO, Chairman over presentation the Bill turn our will I time, Angrick. this and At to

performance the for business of next our Celaya segments review the QX our provide our Good morning, progress to and earnings on will and Jorge quarter. and QX details call. welcome I'll

successful We double-digit GMV annual execution backed effects and culminating year-over-year, growth market year consolidated our we GMV a customers. our in during transactions each in of are Our $X.X expansion our growth the consistent fiscal each auction achieved year, by of of enhanced for capped service strong grew year network share operational XXXX in XX% quarter X-sided throughout and quarter billion. estimates the results healthy [indiscernible] record fourth XX% quarter. we annual innovation, by growth GMV and completed in and in participants double-digit respectively, segments our Overall, platform as our achieved seeing and

We million $XX revenue of direct records quarterly converted in in quarter, strength cash expanded new liquidity. profit clients segment to fourth decades our relationships set this multichannel we over model. the our expertise in our business of and leveraging quarter, GMV by highlighting asset-light and flow as operating segment the In fourth industry-leading the buyer growth our seller RSCG with drove

Our delivered GovDeals through robust ongoing expansion. service segment and seller double-digit acquisition growth

further leading segment worldwide. solidifying record, quarterly Machinio for of buyers our sellers and revenue platform position another a as achieved connecting Additionally, its used equipment

to thrilled a also milestone. significant celebrate We're

Our XXth anniversary.

the delivering Over Services has powering worldwide. from economy unmatched company Liquidity a was global value I circular the e-commerce start-up, into grown there, a scrappy past and leading quarter century,

commitment to in and clients, steadfast sustainability. us achievements supportive has our reflect team, remarkable promoting to our have a deepest to our on growth, been our stakeholders been success. express innovation milestone by Our This who journey loyal gratitude and instrumental dedicated marked allows and our

in do. future, services, range innovation Overall, continuing and As of and client all broad base, opportunities acquisition to initiatives track growth. of growth of driving our our we in propel the excellence technology, committed pipeline us scalable will record look diversified remain marketplace to organic we we that

areas: we is margin combined To the will EBITDA leadership GMV assets tools of complementary these attaining And following has $X and sales with including our infusing achieve on improve annual one, the a step Our market milestone. sell; sales base finally, its annual now and sights customer to service share channels million the and operational the which our increasing and team two, set billion towards objectives, reaching the expansion bolt-on four, on three, our $XXX focus milestone, experience. on enhance to the transacted increase and recovery technologies, on with acquisitions. volume we AI new efficiencies our expanding modernizing buyer marketplace; our platform executing key

next and to goals realize expect in our our value customers shareholders. these turn will which We the for in few tremendous deliver years,

on it I'll Jorge now the quarter. turn details for to over more

celebration XXXX milestone anniversary, Good the fiscal to underscores XX% new solid XXXX GMV $X.X continued our morning. achievements strong at our record coincide position. our year and These saw of growth with the annual billion, to the XXth a record cash year a We profitability year-over-year. double-digit each Fiscal of with billion leadership. completed industry commitment $X.X delivering with for grow and that our level investors segments GMV customers, a GMV

$XX adjusted XX% non-GAAP a adjusted grew X%. up revenue net our for million Our up was by retail on to and led basis. $XX.X GAAP X% $XXX income our GovDeals EBITDA non-GAAP was or segment. year, million million the And

was up fiscal year. same For XX% quarter, $XXX million also last fourth GMV $XXX quarter our million, the from consolidated in

lower $XXX.X was growing and our touch flows. segment, in growth XX% to mainly Retail programs faster primarily million, up than Revenue purchase GMV, in due from

Our $X.XX. per GAAP earnings share was

$XX.X in our the in the million, fourth million during $XX flows XX% equivalents was short-term EPS adjusted $XXX.X and and investments. quarter XX%. cash EBITDA cash, million fourth $X.XX, up cash operations from We and with generated adjusted non-GAAP was quarter Our non-GAAP up ended

with available under $XX.X We credit debt continue our capacity have borrowing facility. to million X of

X% was by the programs. our same quarter on Specifically, direct comparing year, results revenue Retail and purchase this profit, driven from segment on growth in up to fiscal on quarter segment up XX% our fourth segment GMV, up XX% the last

XX%, continued GMV segments the direct acquisition centers. by GovDeals with and Our new XX% up up XX%, Sierra was expansion service Auction from and revenue growth profit driven up

segment purchase subscription was services. up both and we past in XX% transactions for on low and quarter. segment retention X% experience reflecting our Our profit strong client fiscal on down this continue segment were during on profit, as down increases and revenue fourth new GMV, XX% CAG to XX% Machinio's revenue customers down direct

year XXXX, As our to and to we deliver market services growth share seller experiences and our look across our our and we year-over-year see our on to to expand opportunities buyer our to continue improve segments. fiscal platform

fiscal our first we through and purchase across its our segment industrial forward solid and year including are Retail increase pipeline continued projects and drivers expanded buyer heavy flows expand sectors, and our continued retention at additional expected equipment, expected will GMV growth CAG quarter we -- with to results XXXX year for optimism Our as XXXX add-on higher its of XXXX, services outreach. solid guidance including to continued throughout key fiscal We metrics revenues These from as segment strong reflects showed new of its than our fiscal Sierra XXXX. drive XXXX. several for and a services respective during acquisition growing revenue improvement option. strong GMV. rate GovDeals a provided touch lower demand into continued Much as go their energy. expanded of closed focus and have and also Machinio footprint the its programs,

seasonality however, despite of fiscal our in reflects last higher guidance effect quarter various segments quarter first quarter the Our first our across in first range our this fiscal some fourth Comparing sequentially against line potentially solid top fiscal results. guidance downward fiscal compared reflects improvement year-over-year, quarter results when the sequentially.

mix the we in segment's GMV With mix an be XX% volumes, GMV expected forward overall going GMV. consignment in at to the our total approximately expect consolidated result to of

a range in of as a to low to percent consolidated our the of percent to of total the the up profit revenue range. GMV Our as be of XX direct be percentage total XX%. And revenue approximately down segment

pricing revenue can mix, as the ratios This categories Retail given direct direct sequentially expansion mix of shift year's expected on margin of relative lower segment. purchase in tempered These and asset the any period. volumes in the segment vary based year-over-year to fourth fiscal to profit of touch a be XXXX's percent. is including and percent quarter retail our programs models, includes

diluted year second fiscal leverage to in expected The approximately per consistent profitability expect non-GAAP be operating share quarter $X.XX per earnings is with diluted adjusted net have of diluted shares Our income adjusted expenses from adjusted trends. GAAP and year. Management's first operating to of the the per $XX.X is year to for to million year-over-year XXXX first million EBITDA the first follows: seasonally our share. to first EPS to is increase earnings typically that and XX We range year $X.XX in expected EBITDA ranging guidance quarter million. during for to quarter fiscal share is $XXX fiscal expected million with despite the stronger from expected guidance GMV weighted coming this per with half non-GAAP assumes we fiscal increasing prior $X million $X.XX to GAAP range XXXX. we range The improve fiscal fully of to range share. corresponding million. estimated average of a $X.X to our the Non-GAAP is from in outstanding as quarter of during the GAAP estimate million million $X.XX $X.X $XXX up XX.X

you, Thank take your will questions. now we and

question the today coming be Gary line will Prestopino first from the for And of Instructions] Barrington. [Operator of

asking what want of and highest idea it -- segments this was a here. to as well way, seeing from I in growth couple strong The you're participants participants participants? another the the acquisition is Bill guess and Sierra an questions maybe growth I the driving pretty in transactions. auction acquisition quarter of this George, or really the some of Sierra growth as in get

And it's for catalyst not a that.

I our marketplaces but that broad-based they're assets a for segment, in shop used of by far broadened appreciation led and behalf access They we've the and segment goods base liquidity than expansion of consumers. our returned small a in we're selling buying buyers long that And of those GovDeals at the our there's services life, to of of prices just buyer Retail as useful marketplace lower able end been areas. by both think have value business both seen are on I new. that nice because general, we've our followed think range

those think I are drivers. So the

your growth. case in investments to that for we Okay. of is X least investments not like the years, last seems situation going for And a growth, in had continuing it And be at you've then this up in terms really this where least your -- stepped your the into guidance like going It Can year 'XX. investments here sufficient at fiscal you at given least for and for that? are drive the growth that QX, you've next to on year. seems made maybe comment quarter, for

investments I our in areas agree years making Yes, that has that going modernization growth continued expand incremental investment forward, prior margins. would we're in made in leveraged help that and will

friction buyers with value retarget automated in a cost. harnessed excited better these and our forward recovery, -- about buyers increase functionality to less certain onboard of assets have continue marketplace, to the And and registration we better will Services. which continue less the which of we platform, of effort lever key I machine-driven increase for a AI-driven increase drive of better descriptions participation merchandising and example, experience and ultimately and going that for with assets incremental buyers think more continue assets, on to a better much our buyer any sell to the [indiscernible] For way, also improve very matching process will the to mobile Liquidity through is investments we're

just then more. X And Okay.

-- you of $X target, over is to where how you the target? you GMV, X-year Is Can numbers idea looking give some -- achieve $XXX the of frame XX-year for that? terms us EBITDA. million that? you're What a out a have with time of that billion In threw

reveal for X years had we GMV value managed direct-to-consumer BXB in have incredible that having to execute self-directed right a we're billion markets way our its you I at next the to the somewhere between, what to of that years we view and on What customers X think the growth. on or great and We I credibility solutions that that we're of by is in say, need type that the market-leading whether in do first, And that that's and just have are us, years, client we And to arrive and confidence the will that that value of trajectory. our destination a doing, market continuing solutions. data through largest provide for do the or create that to health. the return. the think position expertise X value channels have got buyer and to years, we'd and We our clients clients liquidity, to in and the $X capabilities by fully certainly and few and inside we both our base on have front

we're shorter to derive if comfortable say platform that. part time related that but model also the milestone are on grow a to you position the have goal, but services. with growing I'd time we're So And of margins you a have is exciting talked Machinio. that, an marketplace frame billion from also growth our frame, competitive do We GMV in certainly the hitting that Gary, and both about non-GMV ability the our opportunity $X our and you our business very volume of our

We of have have GMV. in and entities, a fee-for-service our activity of sheriffs the on assets to for not business, some our software-enabled flows including process and online In lot counties entire marketplace. we recorded government manage to is foreclosure self-directed allow that bid

towards non-GMV value-added way puts that million of combination a a well milestone. EBITDA getting our threshold $X $XXX of So billion annual growth on services us GMV plus to

correlated think attainable to really the next And also, in express estimate are that of directly so and of lot move businesses the years. niche We not see of these getting to as the is consolidator If one of example but Sierra we are call out to that a lot growth we're circular small in I'd founder-led opportunities inorganic these businesses like a economy. point we $X become that and billion market-leading category choice It's platform, of of of few certainly a desire part we GMV, point the in forward. a that. there's

coming next Logan line from [Operator question of [indiscernible] Instructions] And be our will the

the here. Logan nice on Congrats quarter George. on is for This

if you point end, market. big number the think operational relationship why finer out if that and little of that to their improvements the can retailers why can just why are think a I'm or is as you retail now? gaining just your little drives outlined you doing case you you're those wondering of But guys kind trust wondering to best Is right guys GMV, are that bit something a and the kind Bill, that player just just speak their stands expanding you kind that now, I'm put I on in on the of what have now?

self-directed teams client, range retailer to their meet a locations Sure. center supply you've fully grow ways, I has of they have looked in it able more this have portfolio any helped they're players alternatives. has at of best them retail with retail a anyone the our been are sell marketplace. set what purchase in the player, of years different we solutions company, and brick-and-mortar it's a over our clients practices of in listening for if the to a born-in-the-cloud in facilities, many where is and been, it's with where continue we And think directly clients also whether own lever our history provide working share of solutions their or that chain the to consignment that own Well, provide the platform our XX on omnichannel their can pricing model those chain the solutions of a managed supply full whether from online and in e-commerce distribution our from platform hybrid, business are. do needs our using models whether to we're to on way, platforms, And bearer

dictating needs their are, and solution tell use solve like pricing versus what clients them for specific specific us only can or So a to feel a model. can those needs they us to we

retail gene. I scale, the is to any able salvage So new have supply matters of buy in buyer keys the largest returns, of that's one we growth. use lot. product I the type that And think mean to a base

think So ability that direct-to-consumer that [indiscernible] the collectively manage to and to outside that sell, is liquidity into brands services. And of, more that SKU, categories capture liquidity to and to to BXB do turned continuing individual there's clients' lot that do United expertise these what well the means growth, increasingly inexorable volume, you're transactions have States, and both March locations, also more capture we including those geographic retail more by of which which all returns different protect supplement that online retailers the do. large with why I are able product to aware be secular is product

the call, that the repo, So and driving are the are of said new as quarterly think I things in the profit. those on GMV revenue growth direct we records segment

then the you've is one for And some assets. talked about we've Great. real I progress. think thing bid know today don't estate opportunity making in talked past and about I the

trying those municipalities get to Just to adopt. some of

just I an and about online the think love going $XXX is, that to opportunity? how you Going you you've a that's channel, immediate on think update talked GMV how million I auction think opportunity

in Public customer how either more real government-owned needs the of estate the highlighted base transparency over distressed real sold our marketplace marketplace in to million $X brought We an a our auction sector or Sure. auction market. GovDeal. estate is of real asset on and part -- this online estate record is efficiencies quarter, in we an find had online definitely quarter to sale

that So over an record, the is an which be of example And how time. illustrative relisting very just all-time opportunity can exciting. was big

for to real been Our few current hasn't large We probably need the years. that the grow property and less expand right at the counties, estate be cities, the next entities real is side, And more estate a look and look of real the the trends, and entities, something assets. we're universities. public of public we of public to of It's there's government asset to these to growing results, states, efficient real we on to in frankly, going some if the estate with and including done the on heavy a be you at some place category, category. the will some focus think is result work XX,XXX personal natural committed a sector estate we've add-on have over

to and the well services help and of and result software in handle to buyer So sell collections, invoicing value realize the online the value, pre a the them we're pants, competitive lot settlement. the the auction to positioned sale and we post more and experience, provide the

that's So grow. to opportunity an

take same is take doesn't a estate the rate. of real level rate. single-digit have Now This

focused profit estate really we And direct capabilities on online growing we're sales. real the associated have great So there. with

growth milestone capitalized our it have fully billion to real role So It's priorities, to $X And the the something estate think we're execute. on we I years. next in positioned expect don't we well that's in a play growth to yet. our few certainly over and

you. that for as all conclude does the conference session as And Thank joining. our call. you for Q&A Thank today well

You disconnect. may all