Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q1 FY2022 Earnings Presentation
26 slides from Liquidity Services's earnings presentation, February 2022
Slide 1: Investor Presentation First Quarter Fiscal Year 2022
Investor Presentation First Quarter Fiscal Year 2022 © Liquidity Services, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements qualified in their entirety by the cautionary statements included in this be indicative of our core operating measures. In addition, because we are only predictions. The outcome of the events described in
Slide 3: Who We Are
Who We Are Liquidity Services operates the world’s largest B2B e-commerce marketplace platform for surplus assets powering the growth of the Circular Economy. To Power the Circular Economy, we: • Manage, value, and sell surplus across the globe in a broad range of asset categories and conditions • M
Slide 4: What is the Circular Economy?
Liquidity Services is a first mover and global leader in transforming the Circular Economy, which provides long term investors the opportunity to drive financial returns while making What is the a positive impact on the environment. Circular Economy? Definition: “The process of planning, implementin
Slide 5: The Industry Leader in the Circular Economy
+15,000 +130 Trusted Clients Fortune 1000 Worldwide Global Clients +700K +600 Transactions Asset Categories The Industry Leader in Completed Annually Experience the Circular Economy +4.7 Million B2B | B2C Registered Multichannel Marketing Active Buyers & Sales Strategies +$9.0 Billion LQDT▲ Complete
Slide 6: Our Purpose
To build the world’s leading marketplace for surplus assets Our Purpose to benefit sellers, buyers and the planet Our Sellers Our Buyers The Planet For enterprises with used, idle, or For organizations and consumers For the planet’s natural resources, excess assets and inventory we provide: looking
Slide 7: Vision and Strategic Pillars
Vision and Strategic Pillars Liquidity Services will build the world’s leading marketplace for surplus assets to benefit sellers, buyers and the planet. Data/ Matching R Recovery Maximization Drive higher net recovery through technology and innovation that improves the buyer experience Increase Volu
Slide 8: Delivering Maximum Value to Sellers
Delivering Maximum Value to Sellers Better Service Better Scale Better Results Superior levels of industry and asset Comprehensive, modular, and scalable, Right combination of great people, expertise, responsiveness, intelligence, and solutions. Spanning all volumes, asset best-in-class processes, a
Slide 9: Providing Superior Buyer Experiences
Providing Superior Buyer Experiences Superior Product Quality and Information Large volumes and recurring flows of products; refurbishment services to enhance and ensure product quality; ability to view detailed product information, ask questions, and inspect items Fair Prices Auction format ensures
Slide 10: Our ESG Objectives
Our ESG Objectives Our Services Enable the Circular Economy. We empower corporations and governments to use our e-commerce services Environmental to resell their surplus and scrap assets, which, in turn, enables a more sustainable and circular economy We Empower Small Business Entrepreneurs. We emp
Slide 11: Market Opportunity
Market Opportunity* Highlighted Sellers Across Industries $130 Billion Total Addressable Market $48 Billion $50 Billion Transportation Retailers & OEMs $20 Billion Industrial Capital Assets $3 Billion U.S Public Sector $8 Billion Energy *Data from evaluation of research from Appriss Retail (2018), M
Slide 12: Macro-Trends Expanding Our Opportunity
Macro-Trends Expanding Our Opportunity • Increased demand for digital, no-contact solutions driving more opportunities with sellers and buyers • Strong online growth in retail driving increased volume of consumer returns E-Commerce Growth • Trending appetite for self-directed solutions • Increasing
Slide 13: Our Business Model
Our Business Model Compelling Model Multiple, Synergistic Revenue Streams Online, no-contact and self-service solutions Consignment Model Diversified products, services, and customer mix globally Purchase Model High-volume recurring revenue Service Revenue Value-added managed services
Slide 14: Liquidity Services Marketplace Success
Liquidity Services Marketplace Success Segment Q1-FY22 Marketplace Highlights* • +46% GMV GovDeals • +16% Closed transactions (includes Bid4Assets) • +14% Buyer registrants Q1-22 saw a consolidated GMV growth of 37% over the prior year's comparable quarter • +11% GMV Retail Supply • +36% Closed Tran
Slide 15: GovDeals Segment: Capitalizing on Market Opportunity
GovDeals Segment: Capitalizing on Market Opportunity Government agencies continue to adopt our digital Governments seek streamlined costs, reduced marketplace solutions over traditional sales methods, space, digital and green solutions, and improved transacting in a broader array of assets, includin
Slide 16: Bid4Assets Overview
Bid4Assets Overview • A leading online marketplace strategically focused on conducting real property auctions for the government, including tax foreclosure sales and sheriff’s sales • Since inception, Bid4Assets has completed the sale of over $1 Billion in assets through the use of its data-driven t
Slide 17: RSCG Segment is Driving Long-Term Growth
RSCG Segment is Driving Long-Term Growth RSCG delivers 21 consecutive quarters of year- Our RSCG segment benefits from: over-year GMV growth; 3% GMV growth in • Retailers increasingly seeking B2B marketplace platforms to conduct resale of surplus inventory Q1-FY22 • Hyper-growth of e-commerce RSCG S
Slide 18: CAG Segment Diversified Seller Base
CAG Segment Diversified Seller Base 60% GMV growth in Q1-FY22 despite remaining Last twenty one months were impacted by global pandemic: restrictions on cross-border transactions • International economies are heavily restricting travel and limit facility visits, impeding asset inventorying and valua
Slide 19: Machinio Segment Subscription Model
Machinio Segment Subscription Model Subscriber growth and strong renewal rates from Machinio Advertising and System drove 34% revenue growth in Q1-FY22 • The Machinio worldwide search engine for used equipment aggregates more than 3.5 million active listings Machinio Segment Revenue Trendline $2.8 *
Slide 20: Financial Results
Financial Results © Liquidity Services, Inc. All Rights Reserved. 20
Slide 21: Q1FY22 Consolidated Results
Q1FY22 Consolidated Results Amounts in millions of $ Gross Merchandise Revenue Gross Profit Adjusted EBITDA Volume 887 42.9 258 620 206 150 110 260 190 67 9.0 8.8 9.4 56 39 33 20 21 20 21 20 21 20 21 20 21 20 21 20 21 20 21 12 Months 3 Months 12 Months 3 Months 12 Months 3 Months 12 Months 3 Months
Slide 22: Diversification By Pricing Model | GMV Mix
Diversification By Pricing Model | GMV Mix Q1 FY21 Q1 FY22 Purchase Purchase 16% 15% Consignment Consignment 84% 85% Purchase Consignment Self-Directed Consignment Purchase Consignment Self-Directed Consignment © Liquidity Services, Inc. All Rights Reserved. 22
Slide 23: Diversification By Segment | GMV Mix
Diversification By Segment | GMV Mix Q1 FY21 Q1 FY22 Purchase RSCG 18% RSCG 27% 21% GovDeals GovDeals 57% CAG CAG 16% 60% 19% Consignment 82% © Liquidity Services, Inc. All Rights Reserved. 23
Slide 24: Diversification By Segment | Gross Profit Mix
Diversification By Segment | Gross Profit Mix Q1 FY21 Q1 FY22 Machinio 6% Purchase 18% RSCG 31% GovDeals RSCG GovDeals 34% 37% RSCG 31% 44% Consignment 82% CAG CAG 19% 22% Machinio 7% © Liquidity Services, Inc. All Rights Reserved. 24
Slide 25: Reconciliation of Financial Data
Reconciliation of Financial Data Adjusted EBITDA Reconciliation (in thousands) Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Net Income (Loss) ($4,238) $213 $5,447 $4,514 $5,260 $8,419 $32,756 $3,602 Interest & other expense (income), net (167) (156) (88) (103) 69 (157) 115 (33) Provision
Slide 26: Investor Relations
Investor Relations [email protected] © Liquidity Services, Inc. All Rights Reserved. 26