Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q1 2023 Earnings Presentation
28 slides from Liquidity Services's earnings presentation, Feb 2, 2023
Slide 1: Investor Presentation First Quarter Fiscal Year 2023
Investor Presentation First Quarter Fiscal Year 2023 © Liquidity Services, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements obligation to publicly update or revise any forward-looking statement to believe the inclusion of non-GAAP measures provides consistency in our are only predictions. The outcome of the events described in
Slide 3: Who We Are
Who We Are Liquidity Services operates the world’s largest B2B e-commerce marketplace platform for surplus assets powering the growth of the Circular Economy. To Power the Circular Economy, we: • Manage, value, and sell surplus across the globe in a broad range of asset categories and conditions • M
Slide 4: What is the Circular Economy?
Liquidity Services is a first mover and global leader in transforming the Circular Economy, which provides long-term investors the opportunity to drive financial returns while making What is the a positive impact on the environment. Circular Economy? Definition: “The process of planning, implementin
Slide 5: The Industry Leader in the Circular Economy
+15,000 +130 Trusted Clients Fortune 1000 Worldwide Global Clients +900K +600 Transactions Asset Categories The Industry Leader in Completed Annually Experience the Circular Economy 5 Million B2B | B2C Registered Multichannel Marketing Buyers & Sales Strategies +$10 Billion LQDT▲ Completed Publicly
Slide 6: Our Purpose
To build the world’s leading marketplace for surplus assets Our Purpose to benefit sellers, buyers and the planet Our Sellers Our Buyers The Planet For enterprises with used, idle, or For organizations and consumers For the planet’s natural resources, excess assets and inventory we provide: looking
Slide 7: Vision and Strategic Pillars
Vision and Strategic Pillars Liquidity Services will build the world’s leading marketplace for surplus assets to benefit sellers, buyers and the planet. Data/ Matching R Recovery Maximization Drive higher net recovery through technology and innovation that improves the buyer experience Increase Volu
Slide 8: Delivering Maximum Value to Sellers
Delivering Maximum Value to Sellers Better Service Better Scale Better Results Superior levels of industry and asset Comprehensive, modular, and scalable Right combination of great people, expertise, responsiveness, intelligence, and solutions spanning all volumes, asset best-in-class processes, and
Slide 9: Providing Superior Buyer Experiences
Providing Superior Buyer Experiences Superior Product Quality and Information Large volumes and recurring flows of products; refurbishment services to enhance and ensure product quality; ability to view detailed product information, ask questions, and inspect items Fair Prices Auction format ensures
Slide 10: Our ESG Objectives
Our ESG Objectives Our Services Enable the Circular Economy. We empower corporations and governments to use our e-commerce services Environmental to resell their surplus and scrap assets, which, in turn, enables a more sustainable and circular economy. We Empower Small Business Entrepreneurs. We em
Slide 11: Market Opportunity
Market Opportunity* Highlighted Sellers Across Industries $130 Billion Total Addressable Market $48 Billion $50 Billion Transportation Retailers & OEMs $20 Billion Industrial Capital Assets $3 Billion U.S Public Sector $8 Billion Energy *Data from evaluation of research from Appriss Retail (2018), M
Slide 12: Macro-Trends Expanding Our Opportunity
Macro-Trends Expanding Our Opportunity • Increased demand for digital, no-contact solutions driving more opportunities with sellers and buyers • Continued online growth in retail driving increased volume of consumer returns E-Commerce Growth • Trending appetite for self-directed solutions • Increasi
Slide 13: Our Business Model
Our Business Model Compelling Model Multiple, Synergistic Revenue Streams Online, no-contact and self-service solutions Consignment Model Diversified products, services, and customer mix globally Purchase Model High-volume recurring revenue Service Revenue Value-added managed services
Slide 14: Liquidity Services Marketplace Success
Liquidity Services Marketplace Success Q1-FY23 Marketplace Marketplace Highlights* Q1-23 total marketplace growth AllSurplus • +63% Closed Transactions** (incl. GoIndustry DoveBid) • +85% Auction Participants** over the prior year included*: +16% Auction Participants +5% Buyer Registrations GovDeals
Slide 15: GovDeals Segment
GovDeals Segment Government agencies continue to adopt our digital We are leading the trend for government sellers to access marketplace solutions over traditional sales methods, a mobile-first solution transacting in a broader array of assets, including • Well-positioned to serve increasing demand
Slide 16: Bid4Assets Overview
Bid4Assets Overview • A leading online marketplace strategically focused on conducting real property auctions for the government, including tax and mortgage foreclosure sales • Since inception, Bid4Assets has completed the sale of over $1 billion in assets through the use of its data-driven technolo
Slide 17: RSCG Segment
RSCG Segment Our RSCG segment benefits from: RSCG continues to diversify its client programs, • Retailers increasingly seeking B2B marketplace platforms to conduct sales channels, and distribution networks resale of surplus inventory • Flexible service offerings that enable clients to rapidly respon
Slide 18: CAG Segment
CAG Segment Driving growth through expansion of key verticals Continued execution through ongoing global supply chain disruptions: including heavy equipment, automotive, energy, • Global supply chains are experiencing heightened uncertainty from and biopharma slowing global GDP growth, the ongoing R
Slide 19: Machinio Segment
Machinio Segment Subscriber growth and strong renewal rates from Machinio Advertising and System drove 18% revenue • The Machinio worldwide search engine for used growth in Q1-FY23 equipment aggregates more than 4.0 million active listings Machinio Segment Revenue Trendline • Machinio Advertising’s
Slide 20: Financial Results
Financial Results © Liquidity Services, Inc. All Rights Reserved. 20
Slide 21: Consolidated Results – Gross Merchandise Volume (GMV)
Consolidated Results – Gross Merchandise Volume (GMV) $ in millions Annual GMV Q1 QTD FY18 to FY22 Trend FY22 to FY23 1145 887 626 640 620 271 260 18 19 20 21 22 21 22 12 Months Ended 3 Months Ended 9/30 12/31 © Liquidity Services, Inc. All Rights Reserved. 21
Slide 22: Consolidated Results – Revenue
Consolidated Results – Revenue $ in millions Annual Revenue Q1 QTD FY18 to FY22 Trend FY22 to FY23 280 258 225 227 206 72.3 66.7 18 19 20 21 22 21 22 12 Months Ended 3 Months Ended 9/30 12/31 © Liquidity Services, Inc. All Rights Reserved. 22
Slide 23: Consolidated Results – Non-GAAP Adjusted EBITDA
Consolidated Results – Non-GAAP Adjusted EBITDA(1) $ in millions Annual Non-GAAP Q1 QTD Adjusted EBITDA FY22 to FY23 FY18 to FY22 Trend 42.9 42.7 9.4 9.8 9 -1.2 -7.3 18 19 20 21 22 21 22 12 Months Ended 3 Months Ended 9/30 12/31 (1) For the three months ended December 31, 2022, 2021, 2020, 2019, 201
Slide 24: Diversification By Pricing Model | GMV Mix
Diversification By Pricing Model | GMV Mix Q1 FY22 Q1 FY23 Purchase Purchase 15% 14% Consignment 85% Consignment 86% Purchase Consignment Self-Directed Consignment Purchase Consignment Self-Directed Consignment © Liquidity Services, Inc. All Rights Reserved. 24
Slide 25: Diversification By Segment | GMV Mix
Diversification By Segment | GMV Mix Q1 FY22 Q1 FY23 Purchase RSCG 18% 21% RSCG 24% GovDeals GovDeals 46% 52% CAG 19% CAG Consignment 17% 82% © Liquidity Services, Inc. All Rights Reserved. 25
Slide 26: Diversification By Segment | Segment Direct Profit Mix
Diversification By Segment | Segment Direct Profit Mix(1) Q1 FY22 Q1 FY23 Machinio 7% RSCG GovDeals 37% 29% GovDeals RSCG 33% 40% CAG CAG 22% 21% Machinio 8% (1) See our Form 10-Q for the three months ended December 31, 2022, Note 14 – Segment Information therein, for a reconciliation of Total Segme
Slide 27: Reconciliation of Financial Data
Reconciliation of Financial Data Adjusted EBITDA Reconciliation (in thousands) Q1 FY21 QTD Q2 FY21 QTD Q3 FY21 QTD Q4 FY21 QTD Q1 FY22 QTD Q2 FY22 QTD Q3 FY22 QTD Q4 FY22 QTD Q1 FY23 QTD Net Income (Loss) $4,514 $5,260 $8,419 $32,755 $3,602 $11,970 $16,408 $8,345 $3,967 Interest & other income (expe
Slide 28: Investor Relations
Investor Relations investorrelations@liquidityservicesinc.com © Liquidity Services, Inc. All Rights Reserved. 28