— Improves Gross Margin, Increases Average
Order Value, and Reduces Fixed Costs —
— Delivers 25% Sequential Adjusted EBITDA
Improvement —
Beyond, Inc. (NYSE:BYON), owner of Overstock, Bed Bath &
Beyond, Zulily, and other online retail brands designed to unlock
your family's and home’s potential, today reported financial
results for the second quarter ended June 30, 2024.
“During the second quarter we delivered on our commitments as we
increased our active customer base while improving average order
value,” said Dave Nielsen, President of Beyond, Inc. “We believe
that further calibration of our operating systems, technology, and
data analytics, specifically customized to each of our three
brands, will yield efficiencies and ultimately the growth and
results I expect.”
“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 Adrianne Lee, Chief
Financial and Administrative Officer of Beyond, Inc. “We are now
more than two-thirds of the way through our plan of reducing fixed
expenses by $45 million on an annualized basis. We made meaningful
progress during the second quarter and expect our financial
performance to improve across the balance of the year.”
“We have made significant progress in the past 150 days and will
continue to execute on our plan to achieve growth and
profitability,” said Marcus Lemonis, Executive Chairman of Beyond,
Inc. “We are building each of our brands to leverage their legacy
strengths while leaning into vast white space, which will allow us
to incrementally monetize these assets. We intend to utilize our
intellectual property, vendor relationships, and technology
platforms to generate significant capital returns through strategic
and financially accretive partnerships and joint ventures.”
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 $398 million, a
decrease of 5.7% year-over-year
•
Gross profit of $80 million, or 20.1% of
total net revenue
•
Net loss of $43 million
•
Diluted net loss per share of $0.93;
Adjusted diluted net loss per share (non-GAAP) of $0.76
•
Adjusted EBITDA (non-GAAP) of ($36)
million, which represents (9.1)% of net revenue
•
Cash and cash equivalents totaled $186
million at the end of the second quarter
*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 Tuesday, July 30, 2024 at
8:30 a.m. ET. To access the live webcast, go to
https://investors.beyond.com. To participate in the conference call
via telephone, please register at the link available at
https://investors.beyond.com/news-events/events-and-presentations.
Registrants will receive dial-in information and a unique PIN to
access the live call. Questions may be emailed in advance of the
call to ir@beyond.com.
A replay of the conference call will be available at
https://investors.beyond.com shortly after the live call has
ended.
About Beyond
Beyond, Inc. (NYSE:BYON), based in Midvale, Utah, is an
ecommerce expert with a singular focus: connecting consumers with
products and services that unlock their families' and homes’
potential. The Company owns Overstock, Bed Bath & Beyond, Baby
& Beyond, Zulily, and other related brands and associated
intellectual property. Its suite of online shopping brands features
millions of products for various life stages that millions of
customers visit each month. Beyond regularly posts information
about the Company and other related matters on the Newsroom and
Investor Relations pages on its website, Beyond.com.
Beyond, Bed Bath & Beyond, Welcome Rewards, Zulily,
Overstock and Backyard are trademarks of Beyond, 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 July 30, 2024 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 without
limitation all statements other than statements of historical fact,
including forecasts of our growth, path to profitability, plan to
reduce fixed expenses, refinement of systems, technology, and data
analytics, financial results or performance for the year or any
other time period, trends, macroeconomic and market conditions, the
potential value of our brands and our monetization of their
intellectual property and systems, our intention to generate
capital returns through strategic and financially accretive
partnerships and joint ventures, and the timing of any of the
foregoing. You should not place undue reliance on any
forward-looking statements, which speak only as of the date they
were made. We undertake no obligation to update any forward-looking
statements as a result of any new information, future developments,
or otherwise. These forward-looking statements are inherently
difficult to predict. Actual results could differ materially for a
variety of known and unknown risks, uncertainties, and other
important factors including but not limited to, difficulties we may
have with our fulfillment partners, supply chain, access to
products, shipping costs, insurance, competition, macroeconomic
changes, attraction/retention of employees, search engine
optimization results, and/or payment processors. Other risks and
uncertainties include, among others, risks arising from changes to
our organizational structure, management, or compensation
structure, impacts from changing our company name, impacts from our
use of the Overstock, Zulily, and Bed Bath & Beyond brands, our
ability to generate positive cash flow, impacts from our evolving
business practices and expanded product and service offerings,
changes to mix of supplier sourced versus directly sourced
products, any problems with our infrastructure, including
re-location or third-party maintenance of our computer and
communication hardware, cyberattacks or data breaches affecting us,
adverse tax, regulatory or legal developments, any restrictions on
tracking technologies, any failure to effectively utilize
technological advancements or protect our intellectual property,
negative economic consequences of global conflict, politics, and
whether our partnership with Pelion Venture Partners will achieve
its objectives. More information about factors that could
potentially affect our financial results are included in our Form
10-K for the year ended December 31, 2023, which was filed with the
SEC on February 23, 2024, in our Form 10-Q for the quarter ended
March 31, 2024, which was filed with the SEC on May 8, 2024, and in
our subsequent filings with the SEC. The Forms 10-K, 10-Q, and our
subsequent filings with the SEC 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.
Beyond, Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except per
share data)
June 30, 2024
December 31,
2023
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
Goodwill
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
Current liabilities:
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:
Preferred stock, $0.0001 par value,
authorized shares - 5,000, issued and outstanding - none
—
—
Common stock, $0.0001 par value,
authorized shares - 100,000
Issued shares - 52,230 and 51,770
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
)
Treasury stock at cost - 6,480 and
6,356
(169,595
)
(166,345
)
Total stockholders' equity
250,354
359,132
Total liabilities and stockholders'
equity
$
496,782
$
635,818
Beyond, Inc.
Consolidated Statements of
Operations (Unaudited)
(in thousands, except per
share data)
Three months ended
June 30,
Six months ended
June 30,
2024
2023
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:
Basic
45,742
45,200
45,665
45,134
Diluted
45,742
45,200
45,665
45,134
Beyond, Inc.
Consolidated Statements of
Cash Flows (Unaudited)
(in thousands)
Six months ended
June 30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(116,506
)
$
(83,800
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
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:
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:
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
June 30,
2024
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
June 30,
2024
Diluted EPS
Less: equity method income
(loss)1
Adjusted Diluted EPS
Numerator:
Net loss
$
(42,578
)
$
(7,753
)
$
(34,825
)
Denominator:
Weighted average shares of common stock
outstanding—diluted
45,742
45,742
45,742
Net loss per share of common
stock:
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
June 30,
Six months ended
June 30,
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
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
June 30,
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/
Alexis Callahan, Vice President, Investor Relations & Public
Relations ir@beyond.com pr@beyond.com
Beyond (NYSE:BYON)
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