Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q1 FY2021 Earnings Presentation
23 slides from Liquidity Services's earnings presentation, Feb 8, 2021
Slide 1: Investor Presentation First Quarter Fiscal Year 2021
1©Liquidity Services, Inc. All Rights Reserved. Investor Presentation First Quarter Fiscal Year 2021
Slide 2: Forward-looking statements
2©Liquidity Services, Inc. All Rights Reserved. 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
Slide 3: Who We Are
3©Liquidity Services, Inc. All Rights Reserved. Who We Are We… Manage, value, and sell surplus across the globe in a broad range of asset categories and conditions Maximize return with broadest buyer base, in an efficient global marketplace Optimize and execute surplus management strategies to achie
Slide 4: The Industry Leader in the Reverse Supply Chain
4©Liquidity Services, Inc. All Rights Reserved. The Industry Leader in the Reverse Supply Chain 14,000 clients worldwide Trusted by over $8 billion in completed transactions over +3.8 million registered buyers Over 500k transactions completed annually 600 asset categories and all asset conditions Ex
Slide 5: Our Purpose
5©Liquidity Services, Inc. All Rights Reserved. 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, or excess assets and inventory: • Expertise and intelligence that achieve hi
Slide 6: Delivering Maximum Value to Sellers
6©Liquidity Services, Inc. All Rights Reserved. Mining & Large Construction Retail Transportation Aerospace & Defense Automotive Manufacturing Biopharmaceuticals Consumer Brands & OEMs Electronics Manufacturing Energy Fast-Moving Consumer Goods Government Industrial Manufacturing Delivering Maximum
Slide 7: Providing Superior Buyer Experiences
7©Liquidity Services, Inc. All Rights Reserved. Online/Offl ine Retailers Wholesalers Small Businesses Resellers Flea Markets Distributors Recyclers Refurbishers Providing Superior Buyer Experiences OUR VALUE PROPOSITION TO BUYERS Superior Product Quality and Information Large volumes and recurring
Slide 8: Market Opportunity
8©Liquidity Services, Inc. All Rights Reserved. Market Opportunity* Highlighted Sellers Across Industries $50 Billion* Retailers & OEMs (Source: Appriss Retail 2018) $3 Billion U.S Public Sector (Source: Company Data) $8 Billion Energy (Source: Company Data) $20 Billion Industrial Capital Assets (So
Slide 9: Macro-Trends Expanding Our Opportunity
9©Liquidity Services, Inc. All Rights Reserved. • Environmental Sustainability key goal for commercial & government sellers • Focus on Zero Waste • Environmental compliance requires sophisticated tools and reporting • Extending the useful life of assets of increasing importance • Increased demand fo
Slide 10: Our Business Model
10©Liquidity Services, Inc. All Rights Reserved. Our Business Model Compelling Model Online, no-contact and self-service solutions Diversified products, services, and customer mix globally High-volume recurring revenue Value-added managed services Additional services beyond selling assets
Slide 11: Liquidity Services Marketplace Success
11©Liquidity Services, Inc. All Rights Reserved. Liquidity Services Marketplace Success Consolidated GMV growth of 28% in Q1-FY21, strong momentum thus far in Q2 Segment Q1-FY21 Marketplace Success* GovDeals +36% GMV +10% Buyer registrants +12% Auction participants Retail Supply Chain +30% GMV +6% B
Slide 12: GovDeals Segment: Capitalizing on Market Opportunity
12©Liquidity Services, Inc. All Rights Reserved. GovDeals Segment: Capitalizing on Market Opportunity $77.4 $90.9 $82.8 $79.2 $77.2 $57.9 $111.7 $107.6 GovDeals Segment GMV Trendline * In millions • Governments seek streamlined costs, reduced space, digital and green solutions, and improved complian
Slide 13: RSCG Segment is Driving Long-Term Growth
13©Liquidity Services, Inc. All Rights Reserved. RSCG Segment is Driving Long-Term Growth $41.9 $39.6 $39.2 $39.9 $44.3 $45.0 $52.3 $51.7 RSCG Segment GMV Trendline * In millions • Q1FY21 benefitted from: – Retailers increasingly seek B2B marketplace platforms to conduct resale of surplus inventory
Slide 14: CAG Segment Diversified Seller Base
14©Liquidity Services, Inc. All Rights Reserved. CAG Segment Diversified Seller Base $31.8 $33.0 $32.0 $29.4 $22.8 $27.2 $32.8 $31.1 $4.3 $4.6 $3.8 $0.1 CAG Segment GMV Trendline CAG Commercial DoD Scrap Contract * In millions • Last twelve months were impacted by global pandemic: – International ec
Slide 15: Machinio Overview
15©Liquidity Services, Inc. All Rights Reserved. Machinio Overview • Machinio aggregates > 2 million global used equipment listings worth $37+ billion and generating 16.5M+ site visits and 1.2M qualified seller leads annually • Subscription model, 1-year term, paid upfront, 90%+ recurring with ~3,00
Slide 16: Machinio Value Proposition and Rationale
16©Liquidity Services, Inc. All Rights Reserved. Machinio Value Proposition and Rationale Entry into new verticals Expands Liquidity Services buyer base Complementary solution for equipment sellers Rich source of data on equipment, buyers and sellers Cross selling opportunities
Slide 17: Financial Results
17©Liquidity Services, Inc. All Rights Reserved. Financial Results
Slide 18: Q1FY21 Consolidated Results
18©Liquidity Services, Inc. All Rights Reserved. Q1FY21 Consolidated Results $ millions Gross Merchandise Volume 640 620 149 190 19 20 19 20 Fiscal Year ended 9/30 Three Months ended 12/31 Revenue 226 206 50 56 19 20 19 20 Fiscal Year ended 9/30 Three Months Ended 12/31 Adjusted EBITDA -1.2 9.0 -2.1
Slide 19: GMV Mix By Pricing Model
19©Liquidity Services, Inc. All Rights Reserved. Purchase Consignment Self-Directed ConsignmentPurchase Consignment Self-Directed Consignment Purchase 21% GMV Mix By Pricing Model Diversification By Pricing Model Q1 FY20 Purchase 16% Q1 FY21 Consignment 79% Consignment 84%
Slide 20: GMV Mix by Segment
20©Liquidity Services, Inc. All Rights Reserved. CAG 20% GovDeals 53% GMV Mix by Segment Diversification By Segment Q1 FY20 RSCG 27% GovDeals 57% CAG 16% Q1 FY21 RSCG 27%
Slide 21: Revenue Mix by Segment
21©Liquidity Services, Inc. All Rights Reserved. CAG 16% GovDeals 16% Revenue Mix by Segment Diversification By Segment Q1 FY20 RSCG 63% GovDeals 19% CAG 14% Q1 FY21 RSCG 64% Machinio 4% Machinio 4%
Slide 22: Reconciliation of Financial Data
22©Liquidity Services, Inc. All Rights Reserved. Reconciliation of Financial Data
Slide 23: Investor Relations
23©Liquidity Services, Inc. All Rights Reserved. Investor Relations investorrelations@liquidityservicesinc.com