First Quarter Financial Highlights Total net revenue was $352 million, a decrease of 4% year over year Gross profit was $76 million or 21.6% of total revenue, an improvement of 169 basis points year over year Net loss attributable to stockholders of Overstock.com, Inc.was $16 million, an improvement of $23 million year over year Net loss per share was $0.40, an improvement of $0.78 year over year Adjusted EBITDA (non-GAAP) improved by 31% year over year Net cash used in operating activities was $12 million, an improvement of $39 million year over year Free cash flow (non-GAAP) improved by $40 million year over year At the end of the first quarter, cash and cash equivalents totaled $141 million
“In a time of great uncertainty, Overstock is performing well,” said Overstock CEO Jonathan Johnson.”Our retail business, which was already on track to achieve its first quarter plan before the COVID-19 crisis hit full bore, has benefited from an increased demand for home furnishings and other key product categories from customers looking to shop from the safety of their homes.The Overstock Retail team is executing its disciplined strategy.I expect to see continued progress against our goal of realizing sustainable, profitable growth.Many of our Medici Ventures blockchain companies are also progressing toward having usable products in production.”
“COVID-19 has altered the landscape for many,” Johnson continued.
“Our retail business’s April sales are up over 120% year over year and that growth has occurred mainly in our key home furnishings categories.
Several of our blockchain companies have received public attention because the problems they are solving using blockchain technology have been brought into the spotlight in the current pandemic.Areas like mobile voting, digital identity, digital currency, and supply chain tracking have become more important in our COVID-19 world.I am looking forward to the increase in tZERO platform activity I believe will result from the upcoming issuance of the Overstock digital dividend.I will provide a more detailed report on the impact COVID-19 has had on our businesses and other corporate updates on our earnings call.”
“I thank our shareholders for their continued support.
I am confident in our teams’ ability to execute and to be the innovative leader in the e-commerce and blockchain arenas,” concluded Johnson.
Other First Quarter Financial Highlights Retail pre-tax loss was $9 million, an improvement of $4 million year over year Retail contribution (non-GAAP) was $38 million, or 11.2% of total retail revenue, an improvement of 40 basis points year over year Retail Adjusted EBITDA (non-GAAP) was ($2) million, an improvement of 24% year over year tZERO revenue was $10 million, an increase of 128% year over year, primarily due to SpeedRoute trading volume MVI other income (expense) included an $11 million gain recognized on the deconsolidation of the Medici Land Governance business Consolidated G&A expenses decreased by $8 million, or 19% year over year, primarily due to a $4 million decrease in consulting expenses and staff-related costs and $3 million in proceeds from a legal settlement
First Quarter Operational Highlights Newly acquired customers increased 9% year over year Sales from orders placed on a mobile device were 46.3% of total sales in the first quarter of 2020, compared to 43.3% in the first quarter of 2019 Same day ship confirmations increased 4% in the first quarter of 2020 compared to the same period last year The number of tZERO Crypto app users increased 40% from December 31, 2019
COVID-19 Update
Overstock has been responsive to the opportunities and challenges brought by COVID-19.In our retail business, customer demand has increased significantly, particularly in our key home furnishings categories.As a result, we have seen an increase in website traffic and new customers, and our retail sales have accelerated to over 120% year over year growth in April.Our online-only platform and partner network of more than 4,500 drop-ship facilities has allowed us to meet this surge in demand without significant operational disruption.However, we have faced challenges with increased volume through our customer service channels and with capacity issues from our shipping carriers.We have seen little interruption at tZERO and its subsidiaries, but we recognize potential risks to the platform due to market depression, volatility, and delays in trading and capital raises.
Most of our Medici Ventures blockchain companies have seen little disruption; some are working to solve problems exacerbated by the global pandemic.All corporate staff is working from home and we are hiring in key areas to support the growth we are experiencing.
It is difficult to predict the duration of these impacts or how the evolving COVID-19 situation will affect our business in the future.
Digital Dividend
On July 30, 2019, we announced that our Board of Directors had declared a dividend (the “Dividend”) payable in shares of our Series A-1 Preferred Stock.The Dividend is payable at a ratio of 1:10, meaning that one share of Series A-1 Preferred Stock will be issued for every ten shares of OSTK common stock, ten shares of Series A-1 Preferred Stock, or ten shares of Series B Preferred Stock held by all holders of such shares as of the record date for the Dividend.The record date for the Dividend was April 27, 2020, and the distribution date for the Dividend will be May 19, 2020.
Earnings Webcast Information
To access the live webcast and presentation slides, go to http://investors.overstock.com .To listen to the conference call via telephone, dial (877) 673-5346 and enter conference ID 9463937 when prompted.
Participants outside the U.S.or Canada who do not have Internet access should dial +1 (724) 498-4326 then enter the conference ID provided above.
A replay of the conference call will be available at http://investors.overstock.com starting two hours after the live call has ended.An audio replay of the webcast will be available via telephone starting at 11:30 a.m.ET on Thursday, April 30, 2020, through 11:30 a.m.ET on Thursday, May 14, 2020.To listen to the recorded webcast by phone, dial (855) 859-2056 then enter the conference ID provided above.
Outside the U.S.or Canada dial +1 (404) 537-3406 and enter the conference ID provided above.
Please email questions in advance of the call to [email protected] .
About Overstock.com
Overstock.com, Inc Common Shares (NASDAQ: OSTK ) / Digital Voting Series A-1 Preferred Stock (Medici Ventures’ tZERO platform:OSTKO) / Series B Preferred (OTCQX:OSTBP) is an online retailer and technology company based in Salt Lake City, Utah.
Its leading e-commerce website sells a broad range of new home products at low prices, including furniture, décor, rugs, bedding, home improvement, and more.The online shopping site, which is visited by nearly 40 million customers a month, also features a marketplace providing customers access to millions of products from third-party sellers.Overstock was the first major retailer to accept cryptocurrency in 2014, and in the same year founded Medici Ventures, its wholly-owned subsidiary dedicated to the development and acceleration of blockchain technologies to democratize capital, eliminate middlemen, and re-humanize commerce.Overstock regularly posts information about the Company and other related matters on the Newsroom and Investor Relations pages on its website, Overstock.com.
O, Overstock.com, O.com, Club O, Main Street Revolution, and Worldstock are registered trademarks of Overstock.com, Inc.
Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.
Cautionary Note Regarding Forward-Looking Statements
This press release and the April 30, 2020 conference call and webcast to discuss our financial results may contain forward-looking statements within the meaning of the federal securities laws.Such forward-looking statements include all statements other than statements of historical fact, including forecasts of trends.These forward-looking statements are inherently difficult to predict.Actual results could differ materially for a variety of reasons, including but not limited to, the duration of the COVID-19 pandemic and its ultimate impact on our business and results of operations, adverse tax, regulatory or legal developments, competition, and the effects of the departure of key business personnel.Other risks and uncertainties include, among others, the inherent risks associated with the businesses that Medici Ventures and tZERO are pursuing, our continually evolving business model, and difficulties we may have with our infrastructure, our fulfillment partners or our payment processors, including cyber-attacks or data breaches affecting us or any of them, and difficulties we may have with our search engine optimization results.More information about factors that could potentially affect our financial results is included in our Form 10-K for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission on March 13, 2020, and in our subsequent filings with the Securities and Exchange Commission.
The Form 10-K and our subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in or contemplated by our projections, estimates and other forward-looking statements.Contacts.
