Business
Newegg Announces First Half 2024 Results
CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)-- Newegg Commerce, Inc. (NASDAQ:NEGG) (the “Company” or “Newegg”), a leading global technology e-commerce retailer,
About this update from Newegg Commerce, Inc.
[{"type":"text","content":" CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--\nNewegg Commerce, Inc. (NASDAQ:NEGG) (the “Company” or “Newegg”), a leading global technology e-commerce retailer, today announced results for the six months ended June 30, 2024.\n\n\nNewegg Chief Executive Officer Anthony Chow stated, “As expected, the first half of the year saw a slowdown in computer hardware sales due to ongoing macroeconomic challenges and a shortage of new product launches. However, we anticipate a rebound in sales during the second half as consumers begin to upgrade their pandemic-era devices. We believe the increasing availability, affordability, and capabilities of AI-powered PCs will strengthen our long-term outlook for core computer sales. We are particularly enthusiastic about the upcoming release of next-generation CPUs from AMD and Intel, which we expect to drive component sales and fuel demand for refreshed desktop systems among both consumers and system integrators.”\n\n\nNewegg Chief Accounting Officer Christina Ching added, “In the first half of 2024, our industry faced continued macroeconomic challenges from high interest rates, inflation, and consumer spending shifts, thus resulting in a 15% year-over-year decline in sales. We are actively working to adjust our company’s size and structure to better align with our revenue outlook. As a result, our adjusted EBITDA improved by 29% in the first half of 2024 compared to the same period last year. We remain keenly focused on our inventory and cash balance, which, as of June 30, 2024, we maintained at $132.0 million and $49.7 million, respectively. In addition, on August 27, 2024, we successfully renewed our credit agreement for an additional two-year period. The credit agreement provides for borrowing capacity of up to $40 million from April 1 to September 30 and $50 million from October 1 to March 31 for each year during the renewal term. Looking ahead, our priority is redefining our company’s direction by concentrating on our core competencies in IT products and enhancing our customer experience to regain market share.”\n\n\n2024 First Half Financial Highlights\n\n\n\nNet sales decreased 14.5% to $618.1 million for the six months ended June 30, 2024, compared to $723.2 million for the six months ended June 30, 2023.\n\n\n\nGMV (defined below) decreased 15.4% to $746.7 million for the six months ended J...