Overstock’s Q1 gross bookings rise 79% as net loss narrows

Overstock.com Inc. narrowed its Q1 net loss 44% year-over-year to $2.2 million from $3.9 million, as gross bookings – covering the selling price of all transactions on Overstock.com, including those for which Overstock receives a commission from associate sellers -- rose 79% to $93.4 million from $52.3 million, the company reported. Revenue rose 181% to $82.1 million from $29.2 million.

CEO Patrick Byrne attributed the narrowed loss and increased sales and revenue to improved analytics applied to product sourcing and marketing and improved control over operating expenses. "Achieving high rates of growth without seeing proportionate increases in marketing and operating expenses remains our goal," he said.

Overstock said Q1 gross profit rose 83% year-over-year to $8.5 million from $4.6 million, as gross margins improved to 10.3% from 9.6%.

Byrne said the 79% increase in gross bookings and the 83% hike in gross profit were more important indicators of Overstock’s growth than the 181% increase in revenue. The revenue increase was partially due to a change in accounting treatments implemented last summer to reflect a new policy of processing returns, he said.