Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q4 FY2021 Earnings Presentation
26 slides from Liquidity Services's earnings presentation, November 2021
Slide 1: Investor Presentation Fourth Quarter Fiscal Year 2021
Investor Presentation Fourth Quarter Fiscal Year 2021 © Liquidity Services, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements qualified in their entirety by the cautionary statements included in this be indicative of our core operating measures. In addition, because we 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 Reverse Supply Chain?
Liquidity Services is a first mover and global leader in transforming the Reverse Supply Chain market, which provides long term investors the opportunity to drive financial returns while making What is the a positive impact on the environment. Reverse Supply Chain? Definition: “The process of planni
Slide 5: The Industry Leader in the Reverse Supply Chain
+15,000 +130 Trusted Clients Fortune 1000 Worldwide Global Clients +700K +600 Transactions Asset Categories The Industry Leader in Completed Annually Experience the Reverse Supply Chain +4.0 Million B2B | B2C Registered Multichannel Marketing Active Buyers & Sales Strategies +$8.5 Billion LQDT▲ Comp
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, a
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 emp
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 • Strong online growth in retail driving increased volume of consumer returns E-Commerce Growth • Trending appetite for self-directed solutions • Increasing
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 Segment Q4-FY21 Marketplace Highlights* • +20% GMV GovDeals • +21% Closed transactions • +11% Buyer registrants Q4-21 saw a consolidated GMV growth of 24% over the prior year's comparable quarter • +10% GMV Retail Supply • +80% Closed Transactions Chain • +4% B
Slide 15: GovDeals Segment: Capitalizing on Market Opportunity
GovDeals Segment: Capitalizing on Market Opportunity Government agencies continue to adopt our digital Governments seek streamlined costs, reduced marketplace solutions over traditional sales methods, space, digital and green solutions, and improved transacting in a broader array of assets, includin
Slide 16: Bid4Assets Overview
Bid4Assets Overview • A leading online marketplace strategically focused on conducting real property auctions for the government, including tax foreclosure sales and sheriff’s sales • Since inception, Bid4Assets has completed the sale of over $1 Billion in assets to over 800,000 registered buyers th
Slide 17: RSCG Segment is Driving Long-Term Growth
RSCG Segment is Driving Long-Term Growth RSCG delivers 20 consecutive quarters of year- FY21 is benefited from: over-year GMV growth; 10% GMV growth in • Retailers increasingly seeking B2B marketplace platforms to conduct resale of surplus inventory Q4-FY21 • Hyper-growth of e-commerce RSCG Segment
Slide 18: CAG Segment Diversified Seller Base
CAG Segment Diversified Seller Base 60% GMV growth in Q4-FY21 despite remaining restrictions on cross-border transactions Last eighteen months were impacted by global pandemic: • International economies are heavily restricting travel and limit facility visits, impeding asset inventorying and valuati
Slide 19: Machinio Segment Subscription Model
Machinio Segment Subscription Model Subscriber growth and strong renewal rates from Machinio Advertising and System drove 47% revenue growth in Q4-FY21 • The Machinio worldwide search engine for used equipment aggregates more than 3.5 million active listings Machinio Segment Revenue Trendline * In m
Slide 20: Financial Results
Financial Results © Liquidity Services, Inc. All Rights Reserved. 20
Slide 21: Q4FY21 Consolidated Results
Q4FY21 Consolidated Results $ in millions Gross Merchandise Revenue Gross Profit Adjusted EBITDA Volume 887 42.9 258 620 206 150 110 244 11.4 197 70 9.0 9.0 56 40 33 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 12 Months 3 Months 12 Months 3 Months 12 Months 3 Months 12 Months 3 Months Ended 9/30
Slide 22: Diversification By Pricing Model | GMV Mix
Diversification By Pricing Model | GMV Mix Q4 FY20 Q4 FY21 Purchase Purchase 17% 18% Consignment Consignment 82% 83% Purchase Consignment Self-Directed Consignment Purchase Consignment Self-Directed Consignment © Liquidity Services, Inc. All Rights Reserved. 22
Slide 23: Diversification By Segment | GMV Mix
Diversification By Segment | GMV Mix Q4 FY20 Q4 FY21 Purchase 18% RSCG RSCG 24% 26% GovDeals GovDeals 57% 55% CAG CAG Consignment 21% 17% 82% © Liquidity Services, Inc. All Rights Reserved. 23
Slide 24: Diversification By Segment | Revenue Mix
Diversification By Segment | Revenue Mix Q4 FY20 Q4 FY21 Machinio 3% Purchase 18% RSCG GovDeals 31% Machinio GovDeals 19% 20% 4% CAG RSCG RSCG CAG 14% 63% Consignment58% 19% 82% © Liquidity Services, Inc. All Rights Reserved. 24
Slide 25: Reconciliation of Financial Data
Reconciliation of Financial Data Adjusted EBITDA Reconciliation (in thousands) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Net Income (Loss) ($5,196) ($4,238) $213 $5,447 $4,514 $5,260 $8,419 $32,755 Interest & other expense (income), net (166) (167) (156) (88) (103) 69 (157) 115 Provisi
Slide 26: Investor Relations
Investor Relations investorrelations@liquidityservicesinc.com © Liquidity Services, Inc. All Rights Reserved. 26