Overstock.com’s Q3 gross bookings rise 87% as net loss narrows
Online surplus liquidator Overstock.com said gross bookings – the total value of transactions, including direct sales to consumers and sales by third-party sellers -- rose 87% year-over-year for the third quarter ended September 30, to $114.4 million from $61 million. Net loss narrowed to $3 million from $3.7 million.
Q3 revenue rose 79% to $103.4 million from $57.8 million a year ago. Gross profit in the quarter rose 223% to $13.7 million from $4.3 million a year ago. Q3 gross margins were 13.3%, up from 11.3% in the second quarter. The average customer acquisition cost rose to $18.30, up from $10.97 a year ago, which CEO Patrick attributed to a combination of higher online advertising rates and strategic decisions by Overstock on where to spend online that stem from “a calculated bet” on the company’s part.
Going forward, Overstock will in the fourth quarter implement tighter customer segmentation and improved personalization and collaborative filtering functionality, initiatives its’ been developing over the third quarter, Byrne says.
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