Beyond, Inc. (NYSE:BYON), parent company of Overstock, Bed Bath
& Beyond, Zulily, and other online retail brands designed to
unlock your home’s potential, today reported financial results for
the first quarter ended March 31, 2024.
“2024 has begun with a strong strategic focus on building a
portfolio of profitable brands designed to drive high customer
affinity and lifetime value,” said Marcus Lemonis, Executive
Chairman of the Board. “We are now 120 days into this new era for
the company, building a foundation that will cause the next ten
years to look materially different from the last ten, while
deepening my conviction in our vision: to become the ‘AAA of Home’
– offering solutions for everything within the four walls of your
home and extending to the four corners of your property. That
foundation consists of three powerful brands: Bed Bath &
Beyond, Overstock, and now Zulily, and we believe each of them has
the potential to become a billion-dollar-plus revenue brand in its
own right. That foundation requires us to have the right team, the
proper brand positioning, and the most efficient process to
profitably grow.”
“During the first quarter we delivered 2.2 million transactions
through Bed Bath & Beyond alone, crossing the 6 million active
customer level for the first time in a non-COVID environment,
successfully soft launched Overstock six months ahead of schedule,
and brought on Salesforce to launch a world-class CRM platform and
manage our customer journeys and records. We also acquired Zulily,
a great strategic fit for our portfolio, and plan to relaunch the
site later this year. Importantly, we’ve now clearly defined the
brand identity and consumer value proposition for each brand,
leaning into the white space of their historical core competencies
and natural strengths,” Lemonis continued.
“We assembled a world-class team and believe we now have the
right players on the field, having hired talent and expertise in
the areas of the business where needed, including legacy Bed Bath
and Zulily talent. As importantly, we aligned management incentives
around our financial objectives, something that historically has
not been in place and gives me great confidence in our ability to
achieve long-term, sustainable success. The entire team is
committed to our path forward and I believe we now have all the
pieces in place to win,” Lemonis concluded.
“We’re pleased with the growth in active customers and
transactions during the quarter,” said Adrianne Lee, Chief
Financial and Administrative Officer. “However, in analyzing the
profitability of that growth, we are making the strategic decision
to focus on investments to launch these brands and acquire
customers with a higher probability of repeat behavior. We will be
investing prudently to build our brands for sustainable growth, not
transient, transactional growth, and have stood up internal
processes to enable our teams to evaluate decisions through the
lens of investment return. We believe this will help drive our
long-term success and improve shareholder returns.”
“To that end, we are halfway through the plan outlined last
quarter to reduce expenses by $45 million on an annualized basis
and will aim to continue to eliminate unnecessary fixed costs and
create a more variable cost structure. We believe these actions, in
combination with soft launching Overstock and soon Zulily, will
yield sequential improvements in our margin profile. As we move
through the balance of the year we will continue investing in our
foundation and refining the processes that we believe will enable
profitable growth for the long term,” Lee concluded.
First Quarter 2024 Results*
- Orders delivered of 2.2 million, an increase of 27%
year-over-year
- Active customers of 6.0 million, an increase of 26%
year-over-year
- Total net revenue of $382 million, an increase of 0.3%
year-over-year
- Gross profit of $74 million, or 19.5% of total net revenue
- Operating loss of $58 million
- Diluted net loss per share of $1.62; Adjusted diluted net loss
per share (non-GAAP) of $1.22
- Adjusted EBITDA (non-GAAP) of ($48) million, which represents
(12.5)% of net revenue
- Cash and cash equivalents totaled $256 million at the end of
the first quarter
*Certain terms, such as orders delivered and active customers,
are defined under "Supplemental Operational Data" below.
Change in Presentation in the Income
StatementIn the first quarter of fiscal 2024, Beyond
changed the presentation for merchant fees associated with customer
payments made by credit cards and other payment methods and
customer service costs. Under the new presentation, Beyond includes
such expenses in a separate line in operating expenses labeled,
"Customer service and merchant fees", whereas previously, these
expenses were included in Cost of goods sold.
Beyond concluded that such a change in presentation is
preferable in the circumstances because the treatment of these
costs as operating expenses is aligned with the changes in business
and strategy. The change will also provide greater transparency in
Beyond's external disclosures and related communications with the
market.
This change in accounting policy has been applied
retrospectively, and the unaudited consolidated statements of
operations reflect the effect of this accounting principle change
for all periods presented. This change in presentation had no
impact on Loss before income taxes, Net loss, or net loss per share
of common stock basic or diluted. The consolidated balance sheets,
consolidated statements of comprehensive loss, consolidated
statements of changes in stockholders' equity, and consolidated
statements of cash flows were not impacted by this accounting
policy change.
The change in presentation to Beyond's unaudited consolidated
statements of operations were as follows (in thousands):
|
Three months ended March 31, 2023 |
|
Previously reported |
|
Effect of change |
|
As adjusted |
Cost of goods sold |
$ |
291,427 |
|
$ |
(11,971 |
) |
|
$ |
279,456 |
Gross profit |
|
89,713 |
|
|
11,971 |
|
|
|
101,684 |
Customer service and merchant
fees |
|
— |
|
|
11,971 |
|
|
|
11,971 |
Earnings Webcast and Replay InformationBeyond
will hold a conference call and webcast to discuss its first
quarter 2024 financial results on Tuesday, May 7, 2024 at 8:30
a.m. ET. To access the live webcast, go to
https://investors.beyond.com. To participate in the conference call
via telephone, please register at the link available at
https://investors.beyond.com/news-events/events-and-presentations.
Registrants will receive dial-in information and a unique PIN to
access the live call. Questions may be emailed in advance of the
call to ir@beyond.com.
A replay of the conference call will be available at
https://investors.beyond.com shortly after the live call has
ended.
About BeyondBeyond, Inc. (NYSE:BYON), based in
Midvale, Utah, is an ecommerce expert with a singular focus:
connecting consumers with products and services that unlock their
homes’ potential. The Company owns Overstock, Bed Bath &
Beyond, Baby & Beyond, Zulily, and other related brands and
associated intellectual property. Its suite of online shopping
brands features millions of products for various life stages that
millions of customers visit each month. Beyond regularly posts
information about the Company and other related matters on the
Newsroom and Investor Relations pages on its website,
Beyond.com.
Beyond, Bed Bath & Beyond, Welcome Rewards, Zulily,
Overstock and Backyard are trademarks of Beyond, Inc. Other service
marks, trademarks and trade names which may be referred to herein
are the property of their respective owners.
Contact InformationAlexis Callahan, Vice
President, Investor Relations & Public Relations
ir@beyond.compr@beyond.com |
Cautionary Note Regarding Forward-Looking
StatementsThis press release and the May 7, 2024
conference call and webcast to discuss our financial results may
contain forward-looking statements within the meaning of the
federal securities laws. Such forward-looking statements include
without limitation all statements other than statements of
historical fact, including forecasts of our growth, financial
results, profitability, expected cost reductions, launch or
relaunch of products, websites, or brands, trends, market
conditions, the impact of our national marketing campaign, the
potential value of our brands, and any of the timing thereof. You
should not place undue reliance on any forward-looking statements,
which speak only as of the date they were made. We undertake no
obligation to update any forward-looking statements as a result of
any new information, future developments, or otherwise. These
forward-looking statements are inherently difficult to predict.
Actual results could differ materially for a variety of known and
unknown risks, uncertainties, and other important factors including
but not limited to, difficulties we may have with our fulfillment
partners, supply chain, access to products, shipping costs,
insurance, competition, macroeconomic changes, attraction/retention
of employees, search engine optimization results, and/or payment
processors. Other risks and uncertainties include, among others,
impacts from changing our company name, stock ticker symbol, or
stock exchange, impacts from our use of the Overstock, Zulily, and
Bed Bath & Beyond brands, our ability to generate positive cash
flow, impacts from our evolving business practices and expanded
product and service offerings, any problems with our
infrastructure, including cyber-attacks or data breaches affecting
us, adverse tax, regulatory or legal developments, any restrictions
on tracking technologies, any failure to effectively utilize
technological advancements or protect our intellectual property,
negative economic consequences of global conflict, and whether our
partnership with Pelion Venture Partners will achieve its
objectives. More information about factors that could potentially
affect our financial results are included in our Form 10-K for the
year ended December 31, 2023, which was filed with the SEC on
February 23, 2024, and in our subsequent filings with the SEC. The
Forms 10-K and our subsequent filings with the SEC identify
important factors that could cause our actual results to differ
materially from those contained in or contemplated by our
projections, estimates and other forward-looking statements.
Beyond, Inc.Consolidated Balance
Sheets (Unaudited)(in thousands, except per share
data) |
|
March 31,2024 |
|
December 31,2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
256,323 |
|
|
$ |
302,605 |
|
Restricted cash |
|
171 |
|
|
|
144 |
|
Accounts receivable, net |
|
23,087 |
|
|
|
19,420 |
|
Inventories |
|
12,903 |
|
|
|
13,040 |
|
Prepaids and other current assets |
|
12,961 |
|
|
|
14,864 |
|
Total current assets |
|
305,445 |
|
|
|
350,073 |
|
Property and equipment,
net |
|
27,340 |
|
|
|
27,577 |
|
Intangible assets, net |
|
31,081 |
|
|
|
25,254 |
|
Goodwill |
|
6,160 |
|
|
|
6,160 |
|
Equity securities |
|
139,111 |
|
|
|
155,873 |
|
Operating lease right-of-use
assets |
|
2,762 |
|
|
|
3,468 |
|
Other long-term assets,
net |
|
12,584 |
|
|
|
12,951 |
|
Property and equipment, net
held for sale |
|
54,466 |
|
|
|
54,462 |
|
Total assets |
$ |
578,949 |
|
|
$ |
635,818 |
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
116,265 |
|
|
$ |
106,070 |
|
Accrued liabilities |
|
72,528 |
|
|
|
73,682 |
|
Unearned revenue |
|
54,675 |
|
|
|
49,597 |
|
Operating lease liabilities, current |
|
2,407 |
|
|
|
2,814 |
|
Current debt, net held for sale |
|
— |
|
|
|
232 |
|
Total current liabilities |
|
245,875 |
|
|
|
232,395 |
|
Operating lease liabilities,
non-current |
|
582 |
|
|
|
940 |
|
Other long-term
liabilities |
|
8,847 |
|
|
|
9,107 |
|
Long-term debt, net held for
sale |
|
34,207 |
|
|
|
34,244 |
|
Total liabilities |
|
289,511 |
|
|
|
276,686 |
|
Stockholders' equity: |
|
|
|
Preferred stock, $0.0001 par value, authorized shares - 5,000,
issued and outstanding - none |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, authorized shares - 100,000 |
|
|
|
Issued shares - 52,210 and 51,770 |
|
|
|
Outstanding shares - 45,733 and 45,414 |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
1,013,360 |
|
|
|
1,007,649 |
|
Accumulated deficit |
|
(553,908 |
) |
|
|
(481,671 |
) |
Accumulated other comprehensive loss |
|
(502 |
) |
|
|
(506 |
) |
Treasury stock at cost - 6,477 and 6,356 |
|
(169,517 |
) |
|
|
(166,345 |
) |
Total stockholders' equity |
|
289,438 |
|
|
|
359,132 |
|
Total liabilities and stockholders' equity |
$ |
578,949 |
|
|
$ |
635,818 |
|
Beyond, Inc.Consolidated Statements
of Operations (Unaudited)(in thousands, except per
share data) |
|
Three months endedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
382,281 |
|
|
$ |
381,140 |
|
Cost of goods sold |
|
307,922 |
|
|
|
279,456 |
|
Gross profit |
|
74,359 |
|
|
|
101,684 |
|
Operating expenses |
|
|
|
Sales and marketing |
|
67,906 |
|
|
|
47,048 |
|
Technology |
|
29,581 |
|
|
|
30,546 |
|
General and administrative |
|
20,454 |
|
|
|
20,483 |
|
Customer service and merchant fees |
|
13,943 |
|
|
|
11,971 |
|
Total operating expenses |
|
131,884 |
|
|
|
110,048 |
|
Operating loss |
|
(57,525 |
) |
|
|
(8,364 |
) |
Interest income, net |
|
2,717 |
|
|
|
2,559 |
|
Other expense, net |
|
(17,100 |
) |
|
|
(7,389 |
) |
Loss before income taxes |
|
(71,908 |
) |
|
|
(13,194 |
) |
Provision (benefit) for income
taxes |
|
329 |
|
|
|
(2,887 |
) |
Net loss |
$ |
(72,237 |
) |
|
$ |
(10,307 |
) |
Net loss per share of common
stock: |
|
|
|
Basic |
$ |
(1.58 |
) |
|
$ |
(0.23 |
) |
Diluted |
$ |
(1.58 |
) |
|
$ |
(0.23 |
) |
Weighted average shares of
common stock outstanding: |
|
|
|
Basic |
|
45,587 |
|
|
|
45,067 |
|
Diluted |
|
45,587 |
|
|
|
45,067 |
|
Beyond, Inc.Consolidated Statements
of Cash Flows (Unaudited)(in
thousands) |
|
Three months endedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(72,237 |
) |
|
$ |
(10,307 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
3,960 |
|
|
|
5,985 |
|
Non-cash operating lease cost |
|
831 |
|
|
|
1,266 |
|
Stock-based compensation to employees and directors |
|
4,776 |
|
|
|
5,795 |
|
(Increase) decrease in deferred tax assets, net |
|
69 |
|
|
|
(3,449 |
) |
Loss from equity method securities |
|
16,762 |
|
|
|
7,181 |
|
Other non-cash adjustments |
|
(145 |
) |
|
|
(102 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
|
(3,667 |
) |
|
|
(4,378 |
) |
Inventories |
|
137 |
|
|
|
288 |
|
Prepaids and other current assets |
|
2,296 |
|
|
|
1,109 |
|
Other long-term assets, net |
|
135 |
|
|
|
(369 |
) |
Accounts payable |
|
10,059 |
|
|
|
10,220 |
|
Accrued liabilities |
|
(1,412 |
) |
|
|
5,377 |
|
Unearned revenue |
|
5,078 |
|
|
|
2,643 |
|
Operating lease liabilities |
|
(894 |
) |
|
|
(1,352 |
) |
Other long-term liabilities |
|
(358 |
) |
|
|
100 |
|
Net cash (used in) provided by operating
activities |
|
(34,610 |
) |
|
|
20,007 |
|
Cash flows from
investing activities: |
|
|
|
Purchase of intangible assets |
|
(5,714 |
) |
|
|
— |
|
Expenditures for property and equipment |
|
(3,422 |
) |
|
|
(5,256 |
) |
Disbursement for notes receivable |
|
— |
|
|
|
(10,000 |
) |
Other investing activities, net |
|
10 |
|
|
|
425 |
|
Net cash used in investing activities |
|
(9,126 |
) |
|
|
(14,831 |
) |
Cash flows from
financing activities: |
|
|
|
Payments of taxes withheld upon vesting of employee stock
awards |
|
(3,172 |
) |
|
|
(1,934 |
) |
Other financing activities, net |
|
653 |
|
|
|
229 |
|
Net cash used in financing activities |
|
(2,519 |
) |
|
|
(1,705 |
) |
Net decrease in cash, cash
equivalents, and restricted cash |
|
(46,255 |
) |
|
|
3,471 |
|
Cash, cash equivalents, and
restricted cash, beginning of period |
|
302,749 |
|
|
|
371,457 |
|
Cash, cash equivalents, and
restricted cash, end of period |
$ |
256,494 |
|
|
$ |
374,928 |
|
Supplemental Operational DataWe measure our
business using operational metrics, in addition to the financial
metrics shown above and the non-GAAP financial measures explained
below. We believe these metrics provide investors with additional
information regarding our financial results and provide key
performance indicators to track our progress. These indicators
include changes in customer order patterns and the mix of products
purchased by our customers.
Active customers represent the total number of unique customers
who have made at least one purchase during the prior twelve-month
period. This metric captures both the inflow of new customers and
the outflow of existing customers who have not made a purchase
during the prior twelve-month period.
Last twelve months (LTM) net revenue per active customer
represents total net revenue in a twelve-month period divided by
the total number of active customers for the same twelve-month
period.
Orders delivered represents the total number of orders delivered
in any given period, including orders that may eventually be
returned. As we ship a large volume of packages through multiple
carriers, actual delivery dates may not always be available, and in
those circumstances, we estimate delivery dates based on historical
data.
Average order value is defined as total net revenue in any given
period divided by the total number of orders delivered in that
period.
Orders per active customer is defined as orders delivered in a
twelve-month period divided by active customers for the same
twelve-month period.
The following table provides our key operating metrics:(in
thousands, except for LTM net revenue per active customer, average
order value and orders per active customer)
|
Three months endedMarch 31, |
|
2024 |
|
2023 |
Active customers |
|
6,041 |
|
|
4,795 |
LTM net revenue per active
customer |
$ |
259 |
|
$ |
370 |
Orders delivered |
|
2,211 |
|
|
1,736 |
Average order value |
$ |
173 |
|
$ |
220 |
Orders per active
customer |
|
1.41 |
|
|
1.57 |
Non-GAAP Financial Measures and
ReconciliationsWe are providing certain non-GAAP financial
measures in this release and related earnings conference call,
including adjusted diluted earnings (loss) per share, adjusted
EBITDA, and free cash flow. We use these non-GAAP measures
internally in analyzing our financial results and we believe they
are useful to investors, as a supplement to GAAP measures, in
evaluating our ongoing operational performance in the same manner
as our management and board of directors. We have provided
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures in this earnings release. These
non-GAAP financial measures should be used in addition to and in
conjunction with the results presented in accordance with GAAP and
should not be relied upon to the exclusion of GAAP financial
measures.
Adjusted diluted earnings (loss) per share is a non-GAAP
financial measure that is calculated as net income (loss) less the
income or losses recognized from our equity method securities, net
of related tax. We believe that this adjustment to our net income
(loss) before calculating per share amounts for the current period
presented provides a useful comparison between our operating
results from period to period.
Adjusted EBITDA is a non-GAAP financial measure that is
calculated as income (loss) before depreciation and amortization,
stock-based compensation, interest and other income (expense),
provision (benefit) for income taxes, and special items. We believe
the exclusion of certain benefits and expenses in calculating
adjusted EBITDA facilitates operating performance comparisons on a
period-to-period basis. Exclusion of items in the non-GAAP
presentation should not be construed as an inference that these
items are unusual, infrequent or non-recurring.
Free cash flow is a non-GAAP financial measure that is
calculated as net cash provided by or used in operating activities
reduced by expenditures for property and equipment. We believe free
cash flow is a useful measure to evaluate the cash impact of the
operations of the business including purchases of property and
equipment which are a necessary component of our ongoing
operations.
The following tables reflects the reconciliation of adjusted
diluted loss per share to diluted loss per share (in thousands,
except per share data):
|
Three months endedMarch 31, |
|
|
2024 |
|
|
Diluted EPS |
|
Less: equity method income
(loss)1 |
|
Adjusted Diluted EPS |
Numerator: |
|
|
|
|
|
Net loss |
$ |
(72,237 |
) |
|
$ |
(16,762 |
) |
|
$ |
(55,475 |
) |
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
Weighted average shares of
common stock outstanding—diluted |
|
45,587 |
|
|
|
45,587 |
|
|
|
45,587 |
|
|
|
|
|
|
|
Net loss per share of
common stock: |
|
|
|
|
|
Diluted |
$ |
(1.58 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.22 |
) |
1 Inclusive of estimated tax impact
The following table reflects the reconciliation of adjusted
EBITDA to net loss (in thousands):
|
Three months endedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(72,237 |
) |
|
$ |
(10,307 |
) |
Depreciation and amortization |
|
3,960 |
|
|
|
5,985 |
|
Stock-based compensation |
|
4,776 |
|
|
|
5,795 |
|
Interest income, net |
|
(2,717 |
) |
|
|
(2,559 |
) |
Other expense, net |
|
17,100 |
|
|
|
7,389 |
|
Provision (benefit) for income taxes |
|
329 |
|
|
|
(2,887 |
) |
Special items (see table below) |
|
946 |
|
|
|
— |
|
Adjusted
EBITDA |
$ |
(47,843 |
) |
|
$ |
3,416 |
|
|
|
|
|
Special items: |
|
|
|
Brand integration and related costs |
$ |
11 |
|
|
$ |
— |
|
Restructuring costs1 |
|
935 |
|
|
|
— |
|
|
$ |
946 |
|
|
$ |
— |
|
1 Inclusive of certain severance and lease termination
costs.
The following table reflects the reconciliation of free cash
flow to net cash (used in) provided by operating activities (in
thousands):
|
Three months endedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Net cash (used in) provided by
operating activities |
$ |
(34,610 |
) |
|
$ |
20,007 |
|
Expenditures for property and
equipment |
|
(3,422 |
) |
|
|
(5,256 |
) |
Free cash flow |
$ |
(38,032 |
) |
|
$ |
14,751 |
|
Beyond (NYSE:BYON)
過去 株価チャート
から 5 2024 まで 6 2024
Beyond (NYSE:BYON)
過去 株価チャート
から 6 2023 まで 6 2024