Overstock Reports Q3 2020 Financial Results
SALT LAKE CITY, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Overstock.com, Inc. (NASDAQ:OSTK) today reported financial results for the quarter ended September 30, 2020.
Third Quarter Financial Highlights
Total net revenue was $732 million, an increase of 111% year over year
Gross profit was $171 million or 23% of total net revenue, an increase of 330 basis points year over year
Net income attributable to stockholders of Overstock.com, Inc. was $23 million, an improvement of $54 million year over year
Diluted earnings per share was $0.50, an improvement of $1.39 year over year
Adjusted EBITDA (non-GAAP) was $40 million, an improvement of $58 million year over year
YTD net cash provided by operating activities was $199 million, an improvement of $288 million year over year
YTD free cash flow (non-GAAP) improved $291 million year over year
At the end of the third quarter, cash and cash equivalents totaled $530 million
"After a record-setting second quarter, we maintained our momentum, continued to outperform expectations, and grew faster than competitors in the third quarter," said Overstock CEO Jonathan Johnson. "Our quarterly gross sales in our Retail business doubled year over year once again and new customers grew 141%. These new customers are making repeat purchases at an increasing rate. Heading into the fourth quarter, I am as confident as ever in our Retail business maintaining sustainable, profitable market share growth."
"Our Medici Ventures blockchain-based businesses also continue to make meaningful advancements," said Johnson. "tZERO received FINRA approval to provide retail brokerage services for digital securities through its subsidiary, tZERO Markets, which officially launched last week. Several of our Medici Ventures companies are raising capital, most are getting products into production, and many are generating revenue. Our organization remains focused and disciplined. We continue to execute against our strategic initiatives that are driving growth and delivering profitability. I look forward to providing an update on our progress and performance during our earnings call."
Other Third Quarter Financial Highlights
Retail income before income taxes was $43 million, an improvement of $52 million year over year
Retail Adjusted EBITDA (non-GAAP) was $50 million, or 7% of Retail net revenue, an improvement of $51 million (or 720 basis points) year over year
Consolidated G&A expenses increased by $2 million but improved by 470 basis points as a percentage of total net revenue year over year
tZERO net revenue was $11 million, an increase of 97% year over year, primarily due to SpeedRoute trading volume
Third Quarter Operational Highlights
Newly acquired Retail customers increased 141% year over year
Gross sales from orders placed on a mobile device were 50% of Retail gross sales in the third quarter of 2020 compared to 44% in the third quarter of 2019
Volume on the tZERO ATS increased 856% to a record 4 million shares (equivalent to $39 million in value of shares traded)
During the third quarter, Overstock announced and completed a public offering of common stock. The size of the offering was increased from its initial announcement due to increased demand, and the underwriters fully exercised the over-allotment option. The offering was completed on August 14, 2020, whereby we issued 2,415,000 shares of common stock at a price of $84.50 per share, raising net proceeds of approximately $193 million. The capital raise was opportunistic in nature, and proceeds will be used to support our continued growth trajectory.