Beyond, Inc. Reports Second Quarter 2024 Financial Results
— Improves Gross Margin, Increases Average Order Value, and Reduces Fixed Costs —
— Delivers 25% Sequential Adjusted EBITDA Improvement —
“During the second quarter we delivered on our commitments as we increased our active customer base while improving average order value,” said
“On a sequential basis, we improved our gross margin profile and continued to reduce our fixed cost base, ultimately delivering a material improvement in adjusted EBITDA,” said
“We have made significant progress in the past 150 days and will continue to execute on our plan to achieve growth and profitability,” said
Second Quarter 2024 Results*
• |
Orders delivered of 1.9 million, an increase of 8% year-over-year |
• |
Active customers of 6.2 million, an increase of 35% year-over-year |
• |
Total net revenue of |
• |
Gross profit of |
• |
Net loss of |
• |
Diluted net loss per share of |
• |
Adjusted EBITDA (non-GAAP) of |
• |
Cash and cash equivalents totaled |
*Certain terms, such as orders delivered and active customers, are defined under "Supplemental Operational Data" below.
Earnings Webcast and Replay Information
Beyond will hold a conference call and webcast to discuss its second quarter 2024 financial results on
A replay of the conference call will be available at https://investors.beyond.com shortly after the live call has ended.
About Beyond
Beyond,
Cautionary Note Regarding Forward-Looking Statements
This press release and the
Beyond, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) |
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Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
186,174 |
|
|
$ |
302,605 |
|
Restricted cash |
|
168 |
|
|
|
144 |
|
Accounts receivable, net |
|
18,694 |
|
|
|
19,420 |
|
Inventories |
|
12,099 |
|
|
|
13,040 |
|
Prepaids and other current assets |
|
15,071 |
|
|
|
14,864 |
|
Total current assets |
|
232,206 |
|
|
|
350,073 |
|
Property and equipment, net |
|
27,864 |
|
|
|
27,577 |
|
Intangible assets, net |
|
30,918 |
|
|
|
25,254 |
|
|
|
6,160 |
|
|
|
6,160 |
|
Equity securities |
|
129,667 |
|
|
|
155,873 |
|
Operating lease right-of-use assets |
|
2,950 |
|
|
|
3,468 |
|
Other long-term assets, net |
|
12,551 |
|
|
|
12,951 |
|
Property and equipment, net held for sale |
|
54,466 |
|
|
|
54,462 |
|
Total assets |
$ |
496,782 |
|
|
$ |
635,818 |
|
Liabilities and Stockholders' Equity |
|
|
|
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Current liabilities: |
|
|
|
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Accounts payable |
$ |
91,210 |
|
|
$ |
106,070 |
|
Accrued liabilities |
|
61,306 |
|
|
|
73,682 |
|
Unearned revenue |
|
47,806 |
|
|
|
49,597 |
|
Operating lease liabilities, current |
|
2,723 |
|
|
|
2,814 |
|
Current debt, net held for sale |
|
— |
|
|
|
232 |
|
Total current liabilities |
|
203,045 |
|
|
|
232,395 |
|
Operating lease liabilities, non-current |
|
425 |
|
|
|
940 |
|
Other long-term liabilities |
|
8,738 |
|
|
|
9,107 |
|
Long-term debt, net held for sale |
|
34,220 |
|
|
|
34,244 |
|
Total liabilities |
|
246,428 |
|
|
|
276,686 |
|
Stockholders' equity: |
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|
|
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Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
|
|
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Issued shares - 52,230 and 51,770 |
|
|
|
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Outstanding shares - 45,750 and 45,414 |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
1,018,619 |
|
|
|
1,007,649 |
|
Accumulated deficit |
|
(598,177 |
) |
|
|
(481,671 |
) |
Accumulated other comprehensive loss |
|
(498 |
) |
|
|
(506 |
) |
|
|
(169,595 |
) |
|
|
(166,345 |
) |
Total stockholders' equity |
|
250,354 |
|
|
|
359,132 |
|
Total liabilities and stockholders' equity |
$ |
496,782 |
|
$ |
635,818 |
|
Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) |
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Three months ended
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Six months ended
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2024 |
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2023 |
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|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
398,104 |
|
|
$ |
422,211 |
|
|
$ |
780,385 |
|
|
$ |
803,351 |
|
Cost of goods sold |
|
317,936 |
|
|
|
314,642 |
|
|
|
625,858 |
|
|
|
594,098 |
|
Gross profit |
|
80,168 |
|
|
|
107,569 |
|
|
|
154,527 |
|
|
|
209,253 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
66,290 |
|
|
|
49,242 |
|
|
|
134,196 |
|
|
|
96,290 |
|
Technology |
|
27,342 |
|
|
|
27,706 |
|
|
|
56,923 |
|
|
|
58,252 |
|
General and administrative |
|
18,531 |
|
|
|
21,673 |
|
|
|
38,985 |
|
|
|
42,156 |
|
Customer service and merchant fees |
|
15,006 |
|
|
|
13,197 |
|
|
|
28,949 |
|
|
|
25,168 |
|
Total operating expenses |
|
127,169 |
|
|
|
111,818 |
|
|
|
259,053 |
|
|
|
221,866 |
|
Operating loss |
|
(47,001 |
) |
|
|
(4,249 |
) |
|
|
(104,526 |
) |
|
|
(12,613 |
) |
Interest income, net |
|
2,309 |
|
|
|
3,059 |
|
|
|
5,026 |
|
|
|
5,618 |
|
Other income (expense), net |
|
2,231 |
|
|
|
(80,673 |
) |
|
|
(16,560 |
) |
|
|
(88,062 |
) |
Loss before income taxes |
|
(42,461 |
) |
|
|
(81,863 |
) |
|
|
(116,060 |
) |
|
|
(95,057 |
) |
Provision (benefit) for income taxes |
|
117 |
|
|
|
(8,370 |
) |
|
|
446 |
|
|
|
(11,257 |
) |
Net loss |
$ |
(42,578 |
) |
|
$ |
(73,493 |
) |
|
$ |
(116,506 |
) |
|
$ |
(83,800 |
) |
Net loss per share of common stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.93 |
) |
|
$ |
(1.63 |
) |
|
$ |
(2.55 |
) |
|
$ |
(1.86 |
) |
Diluted |
$ |
(0.93 |
) |
|
$ |
(1.63 |
) |
|
$ |
(2.55 |
) |
|
$ |
(1.86 |
) |
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
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||||||||
Basic |
|
45,742 |
|
|
|
45,200 |
|
|
|
45,665 |
|
|
|
45,134 |
|
Diluted |
|
45,742 |
|
|
45,200 |
|
|
45,665 |
|
|
45,134 |
|
Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
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Six months ended
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2024 |
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2023 |
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Cash flows from operating activities: |
|
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Net loss |
$ |
(116,506 |
) |
|
$ |
(83,800 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
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Depreciation and amortization |
|
8,355 |
|
|
|
10,501 |
|
Non-cash operating lease cost |
|
1,491 |
|
|
|
2,554 |
|
Stock-based compensation to employees and directors |
|
10,035 |
|
|
|
12,065 |
|
(Increase) decrease in deferred tax assets, net |
|
175 |
|
|
|
(11,502 |
) |
Gain on sale of intangible assets |
|
(10,250 |
) |
|
|
— |
|
Loss from equity method securities |
|
26,206 |
|
|
|
87,820 |
|
Other non-cash adjustments |
|
(260 |
) |
|
|
(186 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
726 |
|
|
|
(1,429 |
) |
Inventories |
|
941 |
|
|
|
213 |
|
Prepaids and other current assets |
|
(182 |
) |
|
|
(907 |
) |
Other long-term assets, net |
|
132 |
|
|
|
(1,537 |
) |
Accounts payable |
|
(14,897 |
) |
|
|
11,992 |
|
Accrued liabilities |
|
(12,537 |
) |
|
|
(3,369 |
) |
Unearned revenue |
|
(1,791 |
) |
|
|
(1,101 |
) |
Operating lease liabilities |
|
(1,575 |
) |
|
|
(2,779 |
) |
Other long-term liabilities |
|
(565 |
) |
|
|
237 |
|
Net cash (used in) provided by operating activities |
|
(110,502 |
) |
|
|
18,772 |
|
Cash flows from investing activities: |
|
|
|
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Proceeds from the sale of intangible assets |
|
10,250 |
|
|
|
— |
|
Expenditures for property and equipment |
|
(7,951 |
) |
|
|
(12,048 |
) |
Purchase of intangible assets |
|
(6,160 |
) |
|
|
(22,832 |
) |
Disbursement for notes receivable |
|
— |
|
|
|
(10,000 |
) |
Other investing activities, net |
|
553 |
|
|
|
445 |
|
Net cash used in investing activities |
|
(3,308 |
) |
|
|
(44,435 |
) |
Cash flows from financing activities: |
|
|
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Payments of taxes withheld upon vesting of employee stock awards |
|
(3,250 |
) |
|
|
(2,054 |
) |
Other financing activities, net |
|
653 |
|
|
|
(664 |
) |
Net cash used in financing activities |
|
(2,597 |
) |
|
|
(2,718 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(116,407 |
) |
|
|
(28,381 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
302,749 |
|
|
|
371,457 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
186,342 |
|
|
$ |
343,076 |
|
Supplemental Operational Data
We measure our business using operational metrics, in addition to the financial metrics shown above and the non-GAAP financial measures explained below. We believe these metrics provide investors with additional information regarding our financial results and provide key performance indicators to track our progress. These indicators include changes in customer order patterns and the mix of products purchased by our customers.
Active customers represent the total number of unique customers who have made at least one purchase during the prior twelve-month period. This metric captures both the inflow of new customers and the outflow of existing customers who have not made a purchase during the prior twelve-month period.
Last twelve months (LTM) net revenue per active customer represents total net revenue in a twelve-month period divided by the total number of active customers for the same twelve-month period.
Orders delivered represents the total number of orders delivered in any given period, including orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and in those circumstances, we estimate delivery dates based on historical data.
Average order value is defined as total net revenue in any given period divided by the total number of orders delivered in that period.
Orders per active customer is defined as orders delivered in a twelve-month period divided by active customers for the same twelve-month period.
The following table provides our key operating metrics:
(in thousands, except for LTM net revenue per active customer, average order value and orders per active customer)
|
Three months ended
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|
2024 |
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|
2023 |
Active customers |
|
6,221 |
|
|
4,621 |
LTM net revenue per active customer |
$ |
247 |
|
$ |
361 |
Orders delivered |
|
1,949 |
|
|
1,803 |
Average order value |
$ |
204 |
|
$ |
234 |
Orders per active customer |
|
1.39 |
|
|
1.56 |
Non-GAAP Financial Measures and Reconciliations
We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted diluted net loss per share, adjusted EBITDA, and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance and, in the case of free cash flow, our liquidity position, in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures.
Adjusted diluted net loss per share is a non-GAAP financial measure that is calculated as net income (net loss) less the income or losses recognized from our equity method securities, net of related tax. We believe that this adjustment to our net income (net loss) before calculating per share amounts for the current period presented provides a useful comparison between our operating results from period to period.
Adjusted EBITDA is a non-GAAP financial measure that is calculated as net income (net loss) before depreciation and amortization, stock-based compensation, interest and other income (expense), provision (benefit) for income taxes, and special items. We believe the exclusion of certain benefits and expenses in calculating adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring.
Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by or used in operating activities reduced by expenditures for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations.
The following tables reflects the reconciliation of adjusted diluted net loss per share to diluted net loss per share (in thousands, except per share data):
|
Three months ended
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|
2024 |
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Diluted EPS |
|
Less: equity method income (loss)1 |
|
Adjusted Diluted EPS |
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Numerator: |
|
|
|
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|
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Net loss |
$ |
(42,578 |
) |
|
$ |
(7,753 |
) |
|
$ |
(34,825 |
) |
|
|
|
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Denominator: |
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Weighted average shares of common stock outstanding—diluted |
|
45,742 |
|
|
|
45,742 |
|
|
|
45,742 |
|
|
|
|
|
|
|
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Net loss per share of common stock: |
|
|
|
|
|
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Diluted |
$ |
(0.93 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.76 |
) |
1 |
Inclusive of estimated tax impact |
The following table reflects the reconciliation of adjusted EBITDA to net loss (in thousands):
|
Three months ended
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|
Six months ended
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|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(42,578 |
) |
|
$ |
(73,493 |
) |
|
$ |
(116,506 |
) |
|
$ |
(83,800 |
) |
Depreciation and amortization |
|
4,395 |
|
|
|
4,516 |
|
|
|
8,355 |
|
|
|
10,501 |
|
Stock-based compensation |
|
5,259 |
|
|
|
6,270 |
|
|
|
10,035 |
|
|
|
12,065 |
|
Interest income, net |
|
(2,309 |
) |
|
|
(3,059 |
) |
|
|
(5,026 |
) |
|
|
(5,618 |
) |
Other (income) expense, net |
|
(2,231 |
) |
|
|
80,673 |
|
|
|
16,560 |
|
|
|
88,062 |
|
Provision (benefit) for income taxes |
|
117 |
|
|
|
(8,370 |
) |
|
|
446 |
|
|
|
(11,257 |
) |
Special items (see table below) |
|
971 |
|
|
|
1,697 |
|
|
|
1,917 |
|
|
|
1,697 |
|
Adjusted EBITDA |
$ |
(36,376 |
) |
|
$ |
8,234 |
|
|
$ |
(84,219 |
) |
|
$ |
11,650 |
|
|
|
|
|
|
|
|
|
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Special items: |
|
|
|
|
|
|
|
||||||||
Brand integration and related costs |
$ |
192 |
|
|
$ |
1,086 |
|
|
$ |
203 |
|
|
$ |
1,086 |
|
Restructuring costs1 |
|
779 |
|
|
|
611 |
|
|
|
1,714 |
|
|
|
611 |
|
|
$ |
971 |
|
|
$ |
1,697 |
|
|
$ |
1,917 |
|
|
$ |
1,697 |
|
1 |
Inclusive of certain severance and lease termination costs. |
The following table reflects the reconciliation of free cash flow to net cash (used in) provided by operating activities (in thousands):
|
Six months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash (used in) provided by operating activities |
$ |
(110,502 |
) |
|
$ |
18,772 |
|
Expenditures for property and equipment |
|
(7,951 |
) |
|
|
(12,048 |
) |
Free cash flow |
$ |
(118,453 |
) |
|
$ |
6,724 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729774027/en/
ir@beyond.com
pr@beyond.com
Source: