Liquidity Services Inc. scored record gross merchandise volume of $380.4 million at its multiple surplus auction marketplaces in its fiscal third quarter, which ended June 30. Buyers purchased excess goods starting from government vehicles and office supplies to used construction equipment and consumer goods.
We’re on target to realize our near-term goal of $1.5 billion in annual GMV.
Bill Angrick, chairman and CEO
Liquidity Services Inc.
Bill Angrick, chairman and CEO, Liquidity Services Inc.
GMV, the entire value of merchandise sold by third-party sellers, rose 14% 12 months over 12 months within the quarter, primarily driven by government market sales. Liquidity generated a 16% increase in total Q3 revenue to $93.6 million.
The corporate operates auction sales across ecommerce auction marketplaces including Liquidation.com for B2B transactions; the retail consumer products-focused AllSurplus Deals and Secondipity; the federal government and supplies market GovDeals; Machinio for used construction and other heavy equipment; and Bid4Assets, which handles sales of property and other assets by government agencies and financial institutions.
Chairman and CEO Bill Angrick attributed the financial performance to market share gains underpinned by recent and expanded services and increased buyer participation.
“These results provide a robust proof point that we’re on target to realize our near-term goal of $1.5 billion in annual GMV,” he said on a Q3 earnings call, based on a transcript from In search of Alpha.
He added, “Our flexible services starting from self-directed to completely managed offerings and efforts to harness the advantages of AI technologies are continuing to draw more sellers and buyers, enhancing the dimensions and scale of our marketplace, and fueling our growth.”
Liquidity launches recent online services
Angrick noted several recent technology applications and services designed to upgrade merchandise management and foster online transactions between Liquidity’s marketplace buyers and sellers:
◾ An item receiving tool. Designed to expedite how Liquidity processes excess merchandise received from retailer clients, the tool “harnesses standardized available data that permits us to quickly discover the suitable channel for every item received,” Angrick said. He added that the tool automates a historically manual system, expediting the transition to the resale market, and helps determine whether an item should sell through a B2B or B2C channel.
◾A mixture of self-service and fully managed product management for sellers. “Clients can use our solutions to discover and upload assets directly; they pay a lower commission for that,” Angrick said. He added Liquidity’s fully managed service options let client retailers direct their customers to return merchandise to Liquidity’s facilities as an alternative of their very own return centers.
◾ Increased services for presidency and personal industry excess vehicle fleets. Earlier this 12 months, Liquidity acquired Phoenix-based Sierra Auction, which has increased Liquidity’s ability to expand its fleet market within the Southwest and supply personalized services for helping sellers catalog their assets online.
◾ A brand new 203,840-sq-ft reverse logistics warehouse in Brownsburg, Indiana, to accommodate more excess inventory received from retailers. Liquidity now operates nine warehouses across North America.
Liquidity counts 5.4 million registered buyers
For the third fiscal quarter ended June 30, Liquidity reported:
◾Total revenue increased 15.9% 12 months over 12 months to $93.61 million; the variety of accomplished transactions rose 4% to roughly 263,000. Net income fell 7.5% to $6 million.
◾A 7% increase within the variety of registered buyers to roughly 5.4 million, and a ten% increase within the variety of auction participants to roughly 1.016 million.
◾GovDeals segment revenue rose 28% to $22.11 million, as GovDeals set a quarterly GMV record of $250 million. The GovDeals segment includes sales on the GovDeals, Bid4Assets and Sierra Auction marketplaces.
◾ The Retail Supply Chain Group, or RSCG, revenue increased 15.3% to $58.76 as million GMV rose 9% to $78.95 million. RSCG processes B2B sales on Liquidation.com and B2C sales on AllSurplus Deals and Secondipity.
◾Capital Assets Group, or CAG, revenue fell 3.7% to $8.65 million as GMV increased 7.5% to $51.84 million. CAG covers industrial businesses’ sales of surplus assets in industrial manufacturing, oil and gas, heavy equipment, biopharma and electronics. CAG transactions primarily occur through the AllSurplus and GovDeals marketplaces.
◾Machinio revenue increased 15.4% to $4.1 million.
For the nine months ended June 30, Liquidity reported:
◾GMV increased 13.3% to $1.01 billion.
◾Total revenue increased 9.3% to $256.39 million.
◾Net income fell 7.4% to $13.62 million.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
Enroll
Enroll for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends within the growing B2B ecommerce industry. Contact Mark Brohan, senior vice chairman of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan. Follow us on LinkedIn, Twitter, Facebook and YouTube.
