Liquidity Services (LQDT) Q4 2024 earnings summary

Executive summary

• Achieved record annual GMV of $1.4 billion in fiscal 2024, with double-digit growth in all segments year-over-year and record annual revenue of $363 million, up from $315 million in FY23.

• Fourth quarter capped a year of market share expansion, innovation, and strong operational execution, with Q4 GMV of $361 million and revenue of $106.9 million, both up significantly year-over-year.

• Auction participants grew 22% and completed transactions increased 12% year-over-year in Q4, with registered buyers up 7% to 5.5 million.

• Adjusted EBITDA reached $48.5 million for FY24, up from $45.9 million in FY23; net income for FY24 was $20 million.

• Celebrated 25th anniversary, reflecting on sustained growth, innovation, and commitment to sustainability.

Financial highlights

• Fiscal 2024 GMV grew 14% to $1.4 billion; revenue up 16% to $363 million; Q4 GMV was $361 million, up 14% year-over-year; Q4 revenue was $106.9 million, up 34%.

• GAAP net income for the year was $20 million; Q4 net income was $6.4 million; non-GAAP adjusted EBITDA was $48.5 million for FY24 and $14.5 million for Q4.

• Q4 GAAP EPS was $0.20; non-GAAP adjusted EPS was $0.32, up 23% year-over-year.

• Generated $22 million in operating cash flow in Q4; ended Q4 with $155.5 million in cash and no debt.

• Adjusted EBITDA margin for FY24 was approximately 13.4%.

Outlook and guidance

• Targeting $2 billion annual GMV and $100 million annual EBITDA within the next few years.

• Fiscal Q1 2025 GMV guidance: $350–$385 million; GAAP net income: $2.5–$5 million; GAAP EPS: $0.08–$0.16; non-GAAP EPS: $0.18–$0.26; adjusted EBITDA: $9.5–$12.5 million.

• Profitability expected to be up year-over-year in Q1 2025, with operating leverage improving in the second half; operating expenses to rise in Q1 FY25 to drive growth.

• Revenue and GMV expected to grow year-over-year in RSCG and CAG segments, with Machinio revenue anticipated to grow double digits.

• FY25 effective tax rate expected at 28–34%; cash taxes to increase as NOL carryforwards are used up.