UBid.com’s Q1 net revenue drops 25% year-over-year while gross profit grows
Net revenue at excess and refurbished merchandise seller UBid.com Holdings Inc. declined 25% to $20.1 million for the first quarter ended March 31, as its net operating loss widened 21% to $2.1 million, the company said.
But the company also reported several positive developments, as its number of participating merchants increased to 949 from about 170 a year ago and the number of customer orders grew 26.8% to 123,000, uBid said.
Q1 gross profit rose 9.6% year-over-year to $2.91 million from $2.65 million. Although the company had an operating net loss of $2.1 million, an improvement in interest income resulted in a 9% narrowing of its net loss to $2 million from $2.19 million.
UBid also said that its number of auction events in Q1 increased 11% year-over-year to 311,000, and that its number of customer registrations increased 10% to 43,000.
"Having materially transformed our corporate structure, our balance sheet, and our business model, uBid.com is uniquely positioned to succeed in the $60 billion close-out and overstock merchandise market,” said CEO Robert Tomlinson. “By focusing on trust, security, and in-house customer support, we`re clearly differentiated in our space and have seen tangible strategic results from that advantage.”
UBid announced on May 10 that it had closed on a three-year, $25 million secured, revolving credit facility with Wells Fargo Bank. In February, it announced that it had raised a total of $58.5 million in a private placement of stock.
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