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Tue Nov 3 2009 16:35:44

Overstock.com Reports Q3 2009 Results

By: Ina Steiner

Sponsored Link

Press Release: Overstock.com Reports Q3 2009 Results

SALT LAKE CITY, Nov. 3 /PRNewswire-FirstCall/ -- Overstock.com, Inc. (Nasdaq: OSTK) today reported financial results for the quarter ended September 30, 2009.

Key Q3 2009 metrics (comparison to Q3 2008):

  • Revenue:  $195.1M vs. $186.9M (4% increase)
  • Gross margin: 19.3% vs. 17.2% (210 basis point improvement);
  • Gross profit:  $37.7M vs. $32.1M (17% increase);
  • Sales and marketing expense: $12.2M vs. $11.9M (2% increase);
  • Contribution (non-GAAP measure): $25.5M vs. $20.2M (26% increase);
  • G&A/Technology expense: $25.6M vs. $24.4M (5% increase);
  • Net loss: $(787,000) vs. $(1.6)M (50% decrease in net loss);
  • EPS: $(0.03)/share vs. $(0.07)/share ($0.04/share improvement); and
  • Adjusted EBITDA (TTM) (non-GAAP financial measure):$19.7M vs.$4.7M ($15.0M improvement).

Dear Owner:

We saw our financial results improve versus Q3 2008. Revenue growth turned positive and Contribution dollars are up 26% over last year due to higher gross profit and a more efficient marketing spend. Our net loss has narrowed to 0.4% of revenue. For the first nine months of 2009, our net loss is $2.5 million, an $11.2 million improvement over the same period last year.

As we move into our peak selling season, our inventory is good and we are well positioned to deliver great deals to the cost conscious consumer.

As previously announced, we have received a notice from the Securities and Exchange Commission stating that the SEC is conducting an investigation concerning our previously-announced financial restatements of 2006 and 2008 and other matters. The subpoena accompanying the notice covers documents related to the restatements and also to our billings to our partners in the fourth quarter of 2008 and related collections, and our accounting for and implementation of software relating to our accounting for customer refunds and credits, including offsets to partners, and related matters. We have been and will continue to cooperate fully with the investigation. In addition, we have received a comment letter from the SEC's Division of Corporation Finance regarding our 2008 Form 10-K/A and June 30, 2009 Form 10-Q. We have responded to the comment letter, but have not yet resolved all of the staff's comments.

I look forward to discussing your business with you on our conference call, and until then, I remain,

Your humble servant,

Patrick M. Byrne

Go to the Overstock website for full press release. 




Comments (10) | Permalink

Readers Comments

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: joe

Tue Nov 3 16:51:54 2009


Man, everyone is turning a profit except eBay...

eBay is starting to look alot like trailer trash...No Sales What-So-Ever.

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: Herb Rules

Tue Nov 3 17:21:57 2009

eBay is not turning in a profit? I suggest you re-look at their financials :-)

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: Ebay 4 idiots

Tue Nov 3 17:50:25 2009

2% gain in revenue from illegal paypal holds at a time when the economy grew at 3.5%, and profits down 29%? WOW where can I buy this wonfderful stock? Come to think of it, only an idiot would! I suggest you step away from the Koolaid, herby.

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

This user has validated their user name. by: Ric

Tue Nov 3 18:04:43 2009

@ Herb

Maybe you can explain why it takes 2 eBay divisions to generate enough revenue to drag eBay marketplaces out of the toilet?

The day of reckoning is coming soon for eBay's marketplace.

eBay marketplace continues to lose buyers and sellers. PayPal will likely face new competition and growth there will slow, and eBay is spinning off 65% of Skype.

So where will the money come from to offset Donahoe's destructive innovation?

eBay marketplaces will never show enough growth to offset the loss of Skype profits, and if PayPal takes any kind of a hit from a competitor, then eBay corporate profits will be sunk.

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: honeybunch

Tue Nov 3 18:59:02 2009

While you'll get no argument from me that eBay's 29% drop in profits is truly pathetic, I'm not sure we can take Overstock's word on their numbers.

According to this article, Overstock's been known to falsify statements and has had the SEC on their case about it.  Here's a snippet of the article, followed by a link.  You should read the whole article, it's fascinating:

''So far, Overstock.com (NASDAQ: OSTK) has stubbornly refused to correct recent Q4 2008 GAAP violations, exposed last week by this blog that allowed the company to improperly report a $1 million profit, rather than an $800,000 net loss. Instead on last Friday, Overstock.com CEO Patrick Byrne was caught trying to make excuses to readers on a stock bulletin board, using an alias in an unsigned post....''

http://seekingalpha.com/article/119600-overstock-com
-refuses-to-correct-gaap-violations-in-latest-financial-report

However,
if it really IS true that Overstock increased both revenue and profits, then that is just too funny.  Donahoe abandoned his first 3-year plan to become Amazon, in order to start a new 3-year plan to become Overstock.  Poor guy, it's just not working for him.  What's next?

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: Loops

Tue Nov 3 19:57:24 2009

Ebay turned a profit, it was just down vs. same QTR last year. Like Ebay, Amazon and other channels have services and other products that drive the whole package. Amazon has fullfillment, its own products like Kindle and Payment Services. Ebay still needs to define itself. Seems there are too many players fighting for the same customer now. Ebay needs to go back to its small sellers to succeed.

Overstock.com announcement is not credible at this time.

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: buck efay

Tue Nov 3 20:37:52 2009

Big Deal, up 2% year to year over the first quarter of forced Poopal,which is propping up the whole company with fraudulent fund holds!

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: joe

Tue Nov 3 20:44:45 2009

@herb

Strip out Paypal, skype, and the other bad buys and deal with the marketplace only...

EBAY MARKETPLACE WOULD HAVE LOST 250,000,000.00  MILLION. Thats were you, I and others sell...nothing there herb buyers and sellers have gone over to Amazon and other sites...sorry dude eBay is a Stone Cold Loser for Sellers and Buyers.

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: o.c.d.collectibles

Wed Nov 4 04:07:17 2009

The old ebay scamming buyers are chasing us sellers into Go Antiques looking for freebees.. trying "the 2 address, 2 last name, 2 email, 2-step scam" hahaha!. "As-If"... us Go Antiques sellers don't know the pay-pal shipping address diversion game from being a past ebay seller! LOL! (oh, don't I remember the claim: I never got the shipment!!I said I had a different address than the one on paypal, she didn't listen!!)right!!

At least I can say one thing for being an "ex-ebay seller" It taught me how to spot one of their rotten buyers from a mile away on ANY site I sell on! Thank You Ebay for making me a savvy seller wherever I go!

Overstock.com Reports Q3 2009 Results   Overstock.com Reports Q3 2009 Results

by: Patricia

Thu Nov 5 02:10:38 2009

I sell some on Overstock - I wish Byrne would advertise their auctions.  Its kind of a well kept secret and I don't know why.  I get more traffic out of Overstock auctions then I do on Ebay.  That's a fact.



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