Slide 1: Q1 2024 Earnings Call
Q1 2024 Earnings Call May 7, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information presented herein may contain forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include all statements other than statements of historical fact, including forecasts of trends, market conditions, the
Slide 3: Business Update
Business Update i<3, Beyond
Slide 4: Revenue and Stock Price – 10 Year Lookback
Revenue and Stock Price – 10Year Lookback Beyond Annual Revenue and Stock Price ($B) 8% -20% 4
Slide 5: 2024 Issues Identified and Actions Taken
2024 Issues Identified and Actions Taken Issues Identified Actions Taken Overstock website was shut down Relaunched Overstock website Unclear brand positioning Defined positioning for each brand Key management holes Hired several key roles Messy database Engaged 3rd party for data cleanse No CRM cap
Slide 6: Financial Update
Financial Update i<3, Beyond
Slide 7: Q1 2024 Financial Results
Q1 2024 Financial Results Revenue Gross Margin G&A and Tech % of Revenue $382.3 Million 19.5% 13.1% +0.3% vs. Q1'23 -720 bps vs. Q1'23 -30 bps vs. Q1'23 Diluted EPS Adjusted EBITDA Margin1 -$1.62 Ending Cash -12.5% Adjusted Diluted EPS2 $256.3 Million -1,340 bps vs. Q1'23 -$1.22 -15% / -$46.3M vs. Q
Slide 8: Revenue
Revenue Revenue Q1’24 Dynamics ($M) $700 ▪ Revenue of $382.3M $660 – +0.3% / +$1M vs. Q1'23 $600 $536 ▪ Revenue influenced by: $500 – Active customers +26% vs. Q1’23 – Order delivered +27% vs. Q1’23 $422 $400 $381 $384 $382 – AOV -21% vs. Q1’23 $363 $373 $340 $300 $200 $100 $0 Q1 ’19 Q1 ’20 Q1 ’21 Q
Slide 9: Gross Margin
Gross Margin Gross Margin Gross Margin Q1’24 Dynamics ($M) (%) $225 30% ▪ Gross margin of 19.5% 26.9% 26.8% 26.7% – -720 bps vs. Q1'23 $200 25.4% 25.5% 23.5% 25% $177 $175 22.2% ▪ Gross margin influenced by: – Higher discounting 19.2% 19.5% $150 $143 20% – Higher outbound shipping costs $125 $108 15
Slide 10: G&A and Tech Expense
G&A and Tech Expense G&A and Tech Expense G&A and Tech Exp. Q1’24 Dynamics ($M) as % of Revenue 15.9% 15.8%1 $80 16% ▪ G&A and Tech Expense of 14.3% 14.0% $50.0M $70 15.1% 13.4% 14% 13.1% – -2% vs. Q1'23 11.7% $60 $58 12% $541 $53 $54 $53 $54 ▪ G&A and Tech Expense % of $51 $49 $50 revenue of 13.1%
Slide 11: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Margin Q1’24 Dynamics ($M) (%) $60 5.1% 6% ▪ Adj. EBITDA of -$47.8M 4.0% $50 – -$51.3M vs. Q1'23 4% $40 2.0% $34 2% $30 0.9% ▪ Adj. EBITDA margin of -12.5% $21 0% – -1,340 bps vs. Q1'23 $20 (2%) $10 $8 (1.9%) $3 (2.2%) (4%) $0 (6%) ($10) ($8) ($7) (6.4
Slide 12: Active Customers and Order Frequency
Active Customers and Order Frequency Active Customers (LTM) Order per Active Customer Q1’24 Dynamics (M) (LTM) 14 2.0 ▪ Active customers (LTM) of 6.0M 1.75 1.70 1.66 1.67 – +26% / +1.2M vs. Q1’23 12 1.57 1.56 1.48 9.9 1.41 1.41 1.5 ▪ Order frequency of 1.41 10 – -10% vs. Q1’23 8 7.4 1.0 6.2 6.0 6 5.
Slide 13: Orders and Average Order Value
Orders and Average Order Value Orders Delivered Average Order Value Q1’24 Dynamics (M) ($) 10 $300 ▪ Orders delivered of 2.2M – +27% / + 0.5M vs. Q1’23 $234 $250 $221 $220 ▪ Average order value of $173 $192 $200 – -21% vs. Q1’23 $183 $173 $156 $151 $155 5 $150 3.6 $100 2.4 2.5 2.3 2.2 2.2 1.8 1.9 1.
Slide 14: LTM Orders and Average Order Value
LTM Orders and Average Order Value Orders Delivered (LTM) Average Order Value Q1’24 Dynamics (M) ($) 25 $250 $234 ▪ Orders delivered (LTM) of 8.5M $221 $220 – +13% / +1.0M vs. Q1’23 20 $192 $200 $183 $173 ▪ Average order value of $173 $155 $156 16.5 $151 – -21% vs. Q1’23 15 $150 12.3 10.9 10 $100 8.
Slide 15: Appendix
APPENDIX i<3, Beyond
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three months ended in thousands, except per share data Mar-2019 Mar-2020 Mar-2021 Mar-2022 Mar-2023 Jun-2023 Sep-2023 Dec-2023 Mar-2024 Net income (loss) $ (19,490) $ (13,766) $ 26,018 $ 10,123 $ (10,307) $ (73,493) $ (63,049) $ (160,993) $ (73,928) Depreciation and am
Slide 17: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation Three months ended March 31, 2024 Less: equity method Adjusted 1 in thousands, except per share data Diluted EPS income/(loss) Diluted EPS Numerator: Net loss attributable to common stockholders $ (73,928) $ (18,452) $ (55,476) Denominator: Weighted average shares
Slide 18: >, Beyond
>, Beyond