Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Investor Presentation (2019)
29 slides from Liquidity Services's investor presentation, 2019
Slide 1: Investor Presentation Third Quarter Fiscal Year 2019
Investor Presentation Third Quarter Fiscal Year 2019 ©Liquidity Services, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, leve
Slide 3: Who We Are
Liquidity Services is a global solution provider in Who We Are the reverse supply chain continuously building the world’s largest marketplace for business surplus Manage, value, and sell Maximize return, more Optimize and execute We… surplus across the efficiently and more surplus management globe i
Slide 4: ©Liquidity Services, Inc. All Rights Reserved.
©Liquidity Services, Inc. All Rights Reserved. 4
Slide 5: Our Purpose: Sellers, Buyers, Planet
OUR PURPOSE: To intelligently capture the enduring value of surplus, benefiting our sellers, our buyers, and our planet. SELLERS BUYERS PLANET For enterprises with used, idle, For organizations and consumers For the planet’s natural resources, or excess assets and inventory: looking to achieve busin
Slide 6: Delivering Maximum Value to Sellers
Delivering Maximum Value to Sellers SERVING THE BROADEST BASE OF INDUSTRIES Aerospace Consumer Brands Fast-Moving Mining & Large & Defense & OEMs Consumer Goods Construction Automotive Electronics Government Retail Manufacturing Manufacturing Industrial Transportation Biopharmaceuticals Energy Manuf
Slide 7: Providing Superior Buyer Experiences
Providing Superior Buyer Experiences BUYERS WE SERVE Online/Offline Retailers Resellers Distributors Refurbishers Wholesalers Small Businesses Flea Markets Recyclers Superior Product Quality and Information OUR VALUE Large volumes and recurring flows of products; refurbishment services PROPOSITION to
Slide 8: Market Opportunity
Market Opportunity * $50 Billion* $3 Billion Retailers & OEMs U.S Public Sector (Source: Appriss Retail 2018) (Source: Company Data) $8 Billion $20 Billion $48 Billion Energy Industrial Capital Assets Transportation (Source: Manfredi & Associates 2015, ACT (Source: Company Data) (Source: Company Dat
Slide 9: Macro-Trends Expanding Our Opportunity
Macro-Trends Expanding Our Opportunity e-Commerce Growth Technology Innovation • Secular growth of online retails driving • Product obsolescence and shorter product increased volume of consumer returns lifecycles • Trending appetite for self-directed • Greater focus on compliance & transparency solu
Slide 10: Why Liquidity Services
Why Liquidity Services Return to Organic Growth Transforming Go-to-Market Five consecutive quarters of year-over-year • Asset-light, higher-margin services: GMV growth Self-Directed Services Six consecutive quarters of year-over-year Scan-N-$ell app Adjusted EBITDA** growth Machinio • Upsell to Valu
Slide 11: Our Business Model
Our Business Model Compelling Model ▪ Diversified products, services, and customer mix globally ▪ High-volume recurring revenue ▪ Asset-light, low-touch self-directed services ▪ Value-added managed services ▪ Additional services beyond selling assets to create higher-margin revenue streams ▪ Network
Slide 12: RISE Growth Strategy
RISE Growth Strategy ©Liquidity Services, Inc. All Rights Reserved. 12
Slide 13: Our RISE Strategy: Continuing the Momentum
Our RISE Strategy: Continuing the Momentum Liquidity Services is building the world’s leading marketplace for surplus assets to benefit buyers, sellers and the planet Our vision rests on executing four pillars of our strategic plan that we refer to as “RISE” Recovery Maximization R Drive technology
Slide 14: A Transformative eCommerce Platform
A Transformative eCommerce Platform: Driving Recovery Maximization & Increasing Volume Our platform will allow for cross GovDeals listing of assets across multi- vertical marketplaces enabling buyers access to entire inventory of available assets GoDove AuctionDeals Enables current and future backen
Slide 15: Expected Benefits of a Consolidated Marketplace
Expected Benefits of a Consolidated Marketplace: Enabling Service Expansion & Expense Leverage FEATURES BENEFITS • Single Taxonomy • Ability to list assets from across network • New Recommendation and of marketplace on a single site Personalization Engine • Improved user experience for both • Enhanc
Slide 16: RISE Drives Improved Topline Results
RISE Drives Improved Topline Results We have created a more diversified core business as we increase volumes, improve recovery rates and expand our service offerings 3 Consolidated GMV Trendline*1 Revenue Trendline* 2 4 +32.3% Growth +38.5% Growth $168.1 $163.6 $163.5 $61.4 $61.1 $60.1 $56.8 $56.9 $
Slide 17: RISE Drives Improved Earnings Results
RISE Drives Improved Earnings Results We have improved bottom-line results through top line improvements, expense leverage, and service expansion as we move to a more asset-light model Consolidated Adjusted EBITDA Trendline* +$31.6M Annualized Improvement GAAP EPS increased $0.9 50% per year on $0.2
Slide 18: GovDeals Segment Delivers Consistent Growth
GovDeals Segment Delivers Consistent Growth Our self-service model for government agencies continues to capture market share GovDeals Segment GMV • GovDeals self-directed model is attractive to state and municipal governments, Trendline higher education, and non-profits +30% Growth $90.9 • Governmen
Slide 19: RSCG Segment is Driving Long-Term Growth
RSCG Segment is Driving Long-Term Growth Growth in seller accounts, service expansion, and increased buyer participation sets the trend for growth • RSCG has made consistent efforts to create a RSCG Segment GMV Trendline stronger, more diversified seller base with sustainable pricing terms +31% Grow
Slide 20: CAG Segment Diversified Seller Base
CAG Segment Diversified Seller Base Strong mix of multiple industry vertical relationships CAG Segment GMV Trendline • CAG continues to expand its position in biopharmaceutical and industrial +43% CAG Commercial Growth manufacturing $42.3 • CAG has launched its self-directed $37.6 $36.5 solution, mo
Slide 21: Machinio Overview
Machinio Overview • Machinio aggregates > 1 mil. global used equipment listings worth $23 B+ and generating 10M+ site visits and 600k qualified seller leads annually • Subscription model, 1-year term, paid upfront, 85%+ recurring with ~3,000 subscribers • Recently launched MachineryHost providing d
Slide 22: Machinio Value Proposition and Rationale
Machinio Value Proposition and Rationale ✓ Entry into new verticals ✓ Expands LSI buyer base ✓ Complementary solution for equipment sellers ✓ Rich source of data on equipment, buyers and sellers ✓ Cross selling opportunities ©Liquidity Services, Inc. All Rights Reserved. 22
Slide 23: Financial Results
Financial Results ©Liquidity Services, Inc. All Rights Reserved. 23
Slide 24: Q3 FY19 Consolidated Highlights
Q3 FY19 Consolidated Highlights $ millions Gross Total Merchandise Adjusted Revenue Gross Profit Volume EBITDA +$40.7m* +9.5%* +$28.0m* +22.1%* *Nine month increase, excluding DoD Contracts *Nine month increase, excluding DoD Contracts 482 85 471 84 0.2 172 168 -0.2 -0.5 164 168 27 29 57 51 -5.4 18
Slide 25: Diversification By Pricing Model
Diversification By Pricing Model GMV Mix By Pricing Model Purchase Purchase 19% 22% Consignment 81% Consignment 78% Purchase Consignment Self-Directed Consignment Purchase Consignment Self-Directed Q3 FY18 Q3 FY19 ©Liquidity Services, Inc. All Rights Reserved. 25
Slide 26: Diversification By Segment: GMV Mix
Diversification By Segment GMV Mix by Segment RSCG 21% RSCG 24% GovDeals 52% GovDeals 54% CAG CAG 22% 27% Q3 FY18 Q3 FY19 ©Liquidity Services, Inc. All Rights Reserved. 26
Slide 27: Diversification By Segment: Revenue Mix
Diversification By Segment Revenue Mix by Segment GovDeals GovDeals Machinio 17% 16% 3% RSCG RSCG 52% CAG 55% CAG 26% 30% Q3 FY18 Q3 FY19 ©Liquidity Services, Inc. All Rights Reserved. 27
Slide 28: Reconciliation of Financial Data
Reconciliation of Financial Data ©Liquidity Services, Inc. All Rights Reserved. 28
Slide 29: Investor Relations
Investor Relations Julie Davis, Senior Director 202.558.6234 julie.davis@liquidityservices.com ©Liquidity Services, Inc. All Rights Reserved. 29