|Tue Nov 3 2009 16:35:44|
Overstock.com Reports Q3 2009 Results
By: Ina Steiner
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).
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.