Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q2 2024 Earnings Presentation
26 slides from Liquidity Services's earnings presentation, May 9, 2024
Slide 1: Investor Presentation Second Quarter Fiscal Year 2024
Investor Presentation Second Quarter Fiscal Year 2024 © 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: • Sell, manage, and value surplus assets across the globe in a broad range of categories and conditions •
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 circular economy is a model of p
Slide 5: The Industry Leader in the Circular Economy
15,000+ 130+ Trusted Clients Fortune 1000 Worldwide Global Clients 1 Million+ 600+ Transactions Asset Categories The Industry Leader in Completed Annually in Experience 100+ Countries the Circular Economy B2B | B2C 5 Million+ Multichannel Marketing & Sales Strategies Registered Buyers LQDT▲ $10 Bill
Slide 6: Our Purpose
To build the world’s leading marketplace for surplus assets to Our Purpose 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/ Recovery Maximization Matching R Drive higher net recovery through technology and innovation that improves the buyer experience Increased Vol
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 assets, which, in turn, enables a more sustainable and circular economy. We Empower Small Business Entrepreneurs. We empower smal
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 $3 Billion Capital Assets 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 • Trending appetite for self-directed solutions Growth • 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 Q2-FY24 Marketplace Marketplace Highlights(1) Q2-24 total marketplace growth over the prior • +90% Completed Transactions (2) year included(1) AllSurplus • +23% Buyer Registrations (incl. GoIndustry DoveBid(3)) +5% Buyer Registrations • Continued GMV growth acr
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 with over $4 billion sold, transacting in a broader array • Well-positioned to serve increasing de
Slide 16: RSCG Segment
RSCG Segment RSCG set a new quarterly GMV record, driven in part Our RSCG segment benefits from: by rapidly accelerating B2C sales growth in AllSurplus • Retailers increasingly seeking B2B marketplace platforms to conduct Deals resale of surplus inventory • Flexible service offerings that enable cli
Slide 17: CAG Segment
CAG Segment Driving growth from a diversified and global Fortune AllSurplus enables delivery of self-directed and fully 1000 client base through expansion of key verticals managed services to our sellers, including: including industrial, energy, and heavy equipment • AI-driven recommendations and se
Slide 18: Machinio Segment
Machinio Segment Subscriber growth and strong renewal rates from • A leading online, subscription-based classifieds and Machinio Advertising and System drove 21% revenue storefront marketplace for used Machinery and Heavy growth in Q2-FY24 year-over-year Equipment Machinio Segment Revenue Trendline
Slide 19: Financial Results
Financial Results © Liquidity Services, Inc. All Rights Reserved. 19
Slide 20: Consolidated Results – Gross Merchandise Volume (GMV)
Consolidated Results – Gross Merchandise Volume (GMV) $ in millions Annual GMV Q2 QTD Q2 YTD FY20 to FY23 Trend FY23 to FY24 FY23 to FY24 1,203 1,145 887 625 620 553 283 319 23 24 23 24 20 21 22 23 3 Months Ended 6 Months Ended 12 Months Ended 3/31 3/31 9/30 © Liquidity Services, Inc. All Rights Res
Slide 21: Consolidated Results – Revenue
Consolidated Results – Revenue $ in millions Annual Revenue Q2 QTD Q2 YTD FY20 to FY23 Trend FY23 to FY24 FY23 to FY24 314 280 258 206 154 163 91.5 81.5 23 24 23 24 20 21 22 23 3 Months Ended 6 Months Ended 12 Months Ended 3/31 3/31 9/30 © Liquidity Services, Inc. All Rights Reserved. 21
Slide 22: Consolidated Results – Non-GAAP Adjusted EBITDA
Consolidated Results – Non-GAAP Adjusted EBITDA(1) $ in millions Annual Non-GAAP Q2 QTD Q2 YTD Adjusted EBITDA FY23 to FY24 FY23 to FY24 FY20 to FY23 Trend 45.9 42.9 42.7 19.8 19.3 12.1 9.9 9.0 23 24 23 24 20 21 22 23 3 Months Ended 6 Months Ended 12 Months Ended 3/31 3/31 9/30 (1) For the twelve mo
Slide 23: Diversification By Pricing Model | GMV Mix
Diversification By Pricing Model | GMV Mix Q2 FY23 Q2 FY24 Purchase Purchase Purchase 13% Purchase 17% 17% 17% Consignment Consignment Consignment 87% Consignment 83% 83% 83% Purchase Consignment Self-Directed Consignment Purchase Consignment Self-Directed Consignment © Liquidity Services, Inc. All
Slide 24: Diversification By Segment | GMV Mix
Diversification By Segment | GMV Mix Q2 FY23 Q2 FY24 RSCG RSCG 26% 25% GovDeals GovDeals 59% 58% CAG CAG 15% 17% © Liquidity Services, Inc. All Rights Reserved. 24
Slide 25: Reconciliation of Financial Data
Reconciliation of Financial Data Adjusted EBITDA Reconciliation (QTD) (in thousands) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Net Income $ 11,970 $ 16,408 $ 8,345 $ 3,967 $ 4,245 $ 6,487 $ 6,279 $ 1,907 $ 5,709 Interest & other expense (income), net 51 196 (88) (303) (
Slide 26: Investor Relations
Investor Relations investorrelations@liquidityservicesinc.com © Liquidity Services, Inc. All Rights Reserved. 26