Online jewelry retailer and auctioneer Bidz.com Inc. reported net revenue of $54.8 million for the second quarter of 2008, a 40.5% increase compared with $39 million for the same period in 2007. Net income for the second quarter ended June 30, 2008, increased to $3.6 million vs. net income of $2.9 million in the same period of 2007.
The company increased its second quarter international sales, including from parts of Europe and Asia, by about 55% from $8.9 million in the prior year quarter to $13.8 million.
Bidz.com, No. 74 in the Internet Retailer Top 500 Guide, says key factors behind the sales spike included more new buyers and increases in average order amount, number of items sold per day, site traffic and gross margin dollars per order.
Key operating metrics included a 21% increase in new buyers for the recent quarter, rising to 64,882 from 53,637 in the same quarter of 2007; a 7% increase in average gross selling price per order, from $171 to $183; a 12.9% lift in average orders per day, from 2,678 to 3,023; a 16.2% rise in average items sold per day, from 8,678 to 10,082; a 26.3% increase in acquisition cost per new buyer, from $38 to $48; and a 6.3% increase in gross margin dollars per average order, from $48 to $51.
The company’s revenue for the first six months of fiscal 2008 was $116.9 million, a 39.4% increase compared with $83.8 million reported for the six months ended 2007. Year-to-date net income was $8.2 million, compared with $6.4 million for the same period in 2007.
In light of the two strong quarters, Bidz.com has increased its full-year revenue guidance to a range of $240 million to $245 million from $225 million to $230 million.
“There is still a tremendous opportunity for us to capture a larger share of the global jewelry market, which is expected to reach $213 billion worldwide by 2010,” says David Zinberg, president and CEO. “We have many initiatives in place for growth, including additional translations of our web site into other languages and further development of our newer initiatives, such as Buyz.com, our online retail store. We believe that these new initiatives will provide a foundation for even stronger revenue and earnings growth once the economy begins to improve.”
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