Liquidity Services (LQDT) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 FY2024 GMV of $380.4 million, up 14% year-over-year, and revenue of $93.6 million, up 16%, driven by market share gains, expanded services, and strong buyer participation.

• Highest quarterly Non-GAAP Adjusted EBITDA in a decade at $14.7 million, up from $13.3 million year-over-year.

• GAAP net income was $6.0 million, down 7.5% from the prior year, impacted by $1.1 million in acquisition and litigation costs.

• Platform enhancements, AI adoption, and the Sierra acquisition contributed to growth, with registered buyers up 7% to 5.4 million and auction participants up 10% to 1.02 million.

• Operates the world's largest B2B e-commerce marketplace for surplus assets, supporting the circular economy and sustainability initiatives.

Financial highlights

• Q3 FY2024 GMV: $380.4 million, up 14% year-over-year; YTD GMV: $1.01 billion, up from $887 million.

• Revenue: $93.6 million, up 16% year-over-year; YTD revenue: $256 million, up from $235 million.

• Non-GAAP adjusted EBITDA: $14.7 million, up from $13.3 million year-over-year.

• GAAP EPS: $0.19, impacted by acquisition and legal settlement expenses; Non-GAAP adjusted EPS: $0.30, up 7% year-over-year.

• Ended Q3 with $136.8 million in cash and no debt; $22.2 million cash generated from operations in Q3.

Outlook and guidance

• Q4 FY2024 GMV expected between $330 million and $365 million.

• GAAP net income guidance: $5–$7 million; GAAP EPS: $0.16–$0.22.

• Non-GAAP adjusted EPS: $0.25–$0.32; adjusted EBITDA: $12–$15 million.

• Double-digit consolidated GMV growth expected at midpoint of guidance.

• Operating expenses expected to rise due to growth initiatives.