Why E-Commerce Company Liquidity Services Shares Are Sliding Today

Liquidity Services (NASDAQ: LQDT) reported Q4 revenues of $79.96 million, missing the analyst consensus of $82.73 million. Revenues rose 6% Y/Y.

The company reported adjusted EPS of $0.26 per share, beating the estimate of $0.24.

GMV for the fiscal fourth quarter of 2023 was $315.6 million, an 11% increase Y/Y.

Revenue in the GovDeals segment increased 13%, consistent with its increase in GMV. Revenue in the RSCG segment increased 15%, a rate slightly lower than the segment's GMV increase.

Revenue in the CAG segment decreased 27% due to the prior year's large international spot purchase transactions.

The company reported an adjusted EBITDA of $12.8 million in Q4, up $0.5 million Y/Y.

Cash balances as of quarter end was $118.2 million, with zero financial debt.

"Our pipeline remains strong, and we continue to see opportunities to drive growth and long-term shareholder value through expanding our technology-enabled, asset-light services," said Bill Angrick, Liquidity Services CEO.

Outlook: Liquidity Services expects Q1 GMV of $295 million-$325 million and adjusted EPS of $0.12-$0.19 Vs $0.17 estimate. 

The company expects GAAP net income of $1.5 million-$4.0 million, with adjusted EBITDA of $7.0 million-$10.0 million.

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Price Action: LQDT shares are trading lower by 12.6% to $17.40 on the last check Thursday.