Overstock.com’s Q3 revenue rises 3% as net loss narrows by 81%
Overstock.com reported today revenue grew 3% in the third quarter ended Sept. 30 year to $161.9 million from $156.9 million in the same quarter a year ago. The net loss at the closeout, off-price online mass merchant narrowed 81% to $4.7 million from $24.5 million.
The third quarter marked the first financial period outside of the usually strong fourth quarter that Overstock generated a positive EBITDA, which came in at $4.1 million, compared to a negative EBITDA of $14.3 million a year ago, chairman and CEO Patrick Byrne says. “I believe this validates our view that a profitable business model is emerging,” he says. EBITDA, or earnings before interest, taxes, depreciation and amortization, is considered a good indication of a company’s core performance.
Byrne also notes that Overstock, No. 25 in the Internet Retailer Top 500 Guide, produced a modest growth in year-to-year Q3 revenue despite halving its marketing expenses. “Our marketing dollars have become twice as efficient,” he says, adding that Overstock is still working to improve the efficiency of its marketing efforts.
Gross profit for Q3 increased 32% to $28.3 million from $21.4 million a year ago, the company says.
For the nine months ended Sept. 30, revenue decreased 5% year-over-year to $468.8 million from $494.1 million, as net loss narrowed 29% to $39.9 million from $56.2 million. The net loss for 2007 includes a restructuring charge of $12.3 million and a loss from discontinued operations of $3.9 million. The net loss for 2006 included a $2.6 million loss from discontinued operations.
Back...
