Beyond, Inc. Reports Second Quarter 2024 Financial Results

— Improves Gross Margin, Increases Average Order Value, and Reduces Fixed Costs —

— Delivers 25% Sequential Adjusted EBITDA Improvement —

Beyond, Inc. (NYSE:BYON), owner of Overstock, Bed Bath & Beyond, Zulily, and other online retail brands designed to unlock your family's and home’s potential, today reported financial results for the second quarter ended June 30, 2024.

“During the second quarter we delivered on our commitments as we increased our active customer base while improving average order value,” said Dave Nielsen, President of Beyond, Inc. “We believe that further calibration of our operating systems, technology, and data analytics, specifically customized to each of our three brands, will yield efficiencies and ultimately the growth and results I expect.”

“On a sequential basis, we improved our gross margin profile and continued to reduce our fixed cost base, ultimately delivering a material improvement in adjusted EBITDA,” said Adrianne Lee, Chief Financial and Administrative Officer of Beyond, Inc. “We are now more than two-thirds of the way through our plan of reducing fixed expenses by $45 million on an annualized basis. We made meaningful progress during the second quarter and expect our financial performance to improve across the balance of the year.”

“We have made significant progress in the past 150 days and will continue to execute on our plan to achieve growth and profitability,” said Marcus Lemonis, Executive Chairman of Beyond, Inc. “We are building each of our brands to leverage their legacy strengths while leaning into vast white space, which will allow us to incrementally monetize these assets. We intend to utilize our intellectual property, vendor relationships, and technology platforms to generate significant capital returns through strategic and financially accretive partnerships and joint ventures.”

Second Quarter 2024 Results*

•

Orders delivered of 1.9 million, an increase of 8% year-over-year

•

Active customers of 6.2 million, an increase of 35% year-over-year

•

Total net revenue of $398 million, a decrease of 5.7% year-over-year

•

Gross profit of $80 million, or 20.1% of total net revenue

•

Net loss of $43 million

•

Diluted net loss per share of $0.93; Adjusted diluted net loss per share (non-GAAP) of $0.76

•

Adjusted EBITDA (non-GAAP) of ($36) million, which represents (9.1)% of net revenue

•

Cash and cash equivalents totaled $186 million at the end of the second quarter

*Certain terms, such as orders delivered and active customers, are defined under "Supplemental Operational Data" below.

Earnings Webcast and Replay Information

Beyond will hold a conference call and webcast to discuss its second quarter 2024 financial results on Tuesday, July 30, 2024 at 8:30 a.m. ET. To access the live webcast, go to https://investors.beyond.com. To participate in the conference call via telephone, please register at the link available at https://investors.beyond.com/news-events/events-and-presentations. Registrants will receive dial-in information and a unique PIN to access the live call. Questions may be emailed in advance of the call to [e-mail].

A replay of the conference call will be available at https://investors.beyond.com shortly after the live call has ended.

About Beyond

Beyond, Inc. (NYSE:BYON), based in Midvale, Utah, is an ecommerce expert with a singular focus: connecting consumers with products and services that unlock their families' and homes’ potential. The Company owns Overstock, Bed Bath & Beyond, Baby & Beyond, Zulily, and other related brands and associated intellectual property. Its suite of online shopping brands features millions of products for various life stages that millions of customers visit each month. Beyond regularly posts information about the Company and other related matters on the Newsroom and Investor Relations pages on its website, Beyond.com.

Beyond, Bed Bath & Beyond, Welcome Rewards, Zulily, Overstock and Backyard are trademarks of Beyond, Inc. Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.

Cautionary Note Regarding Forward-Looking Statements

This press release and the July 30, 2024 conference call and webcast to discuss our financial results may contain forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include without limitation all statements other than statements of historical fact, including forecasts of our growth, path to profitability, plan to reduce fixed expenses, refinement of systems, technology, and data analytics, financial results or performance for the year or any other time period, trends, macroeconomic and market conditions, the potential value of our brands and our monetization of their intellectual property and systems, our intention to generate capital returns through strategic and financially accretive partnerships and joint ventures, and the timing of any of the foregoing. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements as a result of any new information, future developments, or otherwise. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of known and unknown risks, uncertainties, and other important factors including but not limited to, difficulties we may have with our fulfillment partners, supply chain, access to products, shipping costs, insurance, competition, macroeconomic changes, attraction/retention of employees, search engine optimization results, and/or payment processors. Other risks and uncertainties include, among others, risks arising from changes to our organizational structure, management, or compensation structure, impacts from changing our company name, impacts from our use of the Overstock, Zulily, and Bed Bath & Beyond brands, our ability to generate positive cash flow, impacts from our evolving business practices and expanded product and service offerings, changes to mix of supplier sourced versus directly sourced products, any problems with our infrastructure, including re-location or third-party maintenance of our computer and communication hardware, cyberattacks or data breaches affecting us, adverse tax, regulatory or legal developments, any restrictions on tracking technologies, any failure to effectively utilize technological advancements or protect our intellectual property, negative economic consequences of global conflict, politics, and whether our partnership with Pelion Venture Partners will achieve its objectives. More information about factors that could potentially affect our financial results are included in our Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 23, 2024, in our Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC on May 8, 2024, and in our subsequent filings with the SEC. The Forms 10-K, 10-Q, and our subsequent filings with the SEC identify important factors that could cause our actual results to differ materially from those contained in or contemplated by our projections, estimates and other forward-looking statements.

 Beyond, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except per share data)

 

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

186,174

 

 

$

302,605

 

Restricted cash

 

168

 

 

 

144

 

Accounts receivable, net

 

18,694

 

 

 

19,420

 

Inventories

 

12,099

 

 

 

13,040

 

Prepaids and other current assets

 

15,071

 

 

 

14,864

 

Total current assets

 

232,206

 

 

 

350,073

 

Property and equipment, net

 

27,864

 

 

 

27,577

 

Intangible assets, net

 

30,918

 

 

 

25,254

 

Goodwill

 

6,160

 

 

 

6,160

 

Equity securities

 

129,667

 

 

 

155,873

 

Operating lease right-of-use assets

 

2,950

 

 

 

3,468

 

Other long-term assets, net

 

12,551

 

 

 

12,951

 

Property and equipment, net held for sale

 

54,466

 

 

 

54,462

 

Total assets

$

496,782

 

 

$

635,818

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

91,210

 

 

$

106,070

 

Accrued liabilities

 

61,306

 

 

 

73,682

 

Unearned revenue

 

47,806

 

 

 

49,597

 

Operating lease liabilities, current

 

2,723

 

 

 

2,814

 

Current debt, net held for sale

 

—

 

 

 

232

 

Total current liabilities

 

203,045

 

 

 

232,395

 

Operating lease liabilities, non-current

 

425

 

 

 

940

 

Other long-term liabilities

 

8,738

 

 

 

9,107

 

Long-term debt, net held for sale

 

34,220

 

 

 

34,244

 

Total liabilities

 

246,428

 

 

 

276,686

 

Stockholders' equity:

 

 

 

Preferred stock, $0.0001 par value, authorized shares - 5,000, issued and outstanding - none

 

—

 

 

 

—

 

Common stock, $0.0001 par value, authorized shares - 100,000

 

 

 

Issued shares - 52,230 and 51,770

 

 

 

Outstanding shares - 45,750 and 45,414

 

5

 

 

 

5

 

Additional paid-in capital

 

1,018,619

 

 

 

1,007,649

 

Accumulated deficit

 

(598,177

)

 

 

(481,671

)

Accumulated other comprehensive loss

 

(498

)

 

 

(506

)

Treasury stock at cost - 6,480 and 6,356

 

(169,595

)

 

 

(166,345

)

Total stockholders' equity

 

250,354

 

 

 

359,132

 

Total liabilities and stockholders' equity

$

496,782

 

$

635,818

 

Beyond, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net revenue

$

398,104

 

 

$

422,211

 

 

$

780,385

 

 

$

803,351

 

Cost of goods sold

 

317,936

 

 

 

314,642

 

 

 

625,858

 

 

 

594,098

 

Gross profit

 

80,168

 

 

 

107,569

 

 

 

154,527

 

 

 

209,253

 

Operating expenses

 

 

 

 

 

 

 

Sales and marketing

 

66,290

 

 

 

49,242

 

 

 

134,196

 

 

 

96,290

 

Technology

 

27,342

 

 

 

27,706

 

 

 

56,923

 

 

 

58,252

 

General and administrative

 

18,531

 

 

 

21,673

 

 

 

38,985

 

 

 

42,156

 

Customer service and merchant fees

 

15,006

 

 

 

13,197

 

 

 

28,949

 

 

 

25,168

 

Total operating expenses

 

127,169

 

 

 

111,818

 

 

 

259,053

 

 

 

221,866

 

Operating loss

 

(47,001

)

 

 

(4,249

)

 

 

(104,526

)

 

 

(12,613

)

Interest income, net

 

2,309

 

 

 

3,059

 

 

 

5,026

 

 

 

5,618

 

Other income (expense), net

 

2,231

 

 

 

(80,673

)

 

 

(16,560

)

 

 

(88,062

)

Loss before income taxes

 

(42,461

)

 

 

(81,863

)

 

 

(116,060

)

 

 

(95,057

)

Provision (benefit) for income taxes

 

117

 

 

 

(8,370

)

 

 

446

 

 

 

(11,257

)

Net loss

$

(42,578

)

 

$

(73,493

)

 

$

(116,506

)

 

$

(83,800

)

Net loss per share of common stock:

 

 

 

 

 

 

 

Basic

$

(0.93

)

 

$

(1.63

)

 

$

(2.55

)

 

$

(1.86

)

Diluted

$

(0.93

)

 

$

(1.63

)

 

$

(2.55

)

 

$

(1.86

)

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

Basic

 

45,742

 

 

 

45,200

 

 

 

45,665

 

 

 

45,134

 

Diluted

 

45,742

 

 

45,200

 

 

45,665

 

 

45,134

 

Beyond, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

Six months ended

June 30,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net loss

$

(116,506

)

 

$

(83,800

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

Depreciation and amortization

 

8,355

 

 

 

10,501

 

Non-cash operating lease cost

 

1,491

 

 

 

2,554

 

Stock-based compensation to employees and directors

 

10,035

 

 

 

12,065

 

(Increase) decrease in deferred tax assets, net

 

175

 

 

 

(11,502

)

Gain on sale of intangible assets

 

(10,250

)

 

 

—

 

Loss from equity method securities

 

26,206

 

 

 

87,820

 

Other non-cash adjustments

 

(260

)

 

 

(186

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

726

 

 

 

(1,429

)

Inventories

 

941

 

 

 

213

 

Prepaids and other current assets

 

(182

)

 

 

(907

)

Other long-term assets, net

 

132

 

 

 

(1,537

)

Accounts payable

 

(14,897

)

 

 

11,992

 

Accrued liabilities

 

(12,537

)

 

 

(3,369

)

Unearned revenue

 

(1,791

)

 

 

(1,101

)

Operating lease liabilities

 

(1,575

)

 

 

(2,779

)

Other long-term liabilities

 

(565

)

 

 

237

 

Net cash (used in) provided by operating activities

 

(110,502

)

 

 

18,772

 

Cash flows from investing activities:

 

 

 

Proceeds from the sale of intangible assets

 

10,250

 

 

 

—

 

Expenditures for property and equipment

 

(7,951

)

 

 

(12,048

)

Purchase of intangible assets

 

(6,160

)

 

 

(22,832

)

Disbursement for notes receivable

 

—

 

 

 

(10,000

)

Other investing activities, net

 

553

 

 

 

445

 

Net cash used in investing activities

 

(3,308

)

 

 

(44,435

)

Cash flows from financing activities:

 

 

 

Payments of taxes withheld upon vesting of employee stock awards

 

(3,250

)

 

 

(2,054

)

Other financing activities, net

 

653

 

 

 

(664

)

Net cash used in financing activities

 

(2,597

)

 

 

(2,718

)

Net decrease in cash, cash equivalents, and restricted cash

 

(116,407

)

 

 

(28,381

)

Cash, cash equivalents, and restricted cash, beginning of period

 

302,749

 

 

 

371,457

 

Cash, cash equivalents, and restricted cash, end of period

$

186,342

 

 

$

343,076

 

Supplemental Operational Data

We measure our business using operational metrics, in addition to the financial metrics shown above and the non-GAAP financial measures explained below. We believe these metrics provide investors with additional information regarding our financial results and provide key performance indicators to track our progress. These indicators include changes in customer order patterns and the mix of products purchased by our customers.

Active customers represent the total number of unique customers who have made at least one purchase during the prior twelve-month period. This metric captures both the inflow of new customers and the outflow of existing customers who have not made a purchase during the prior twelve-month period.

Last twelve months (LTM) net revenue per active customer represents total net revenue in a twelve-month period divided by the total number of active customers for the same twelve-month period.

Orders delivered represents the total number of orders delivered in any given period, including orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and in those circumstances, we estimate delivery dates based on historical data.

Average order value is defined as total net revenue in any given period divided by the total number of orders delivered in that period.

Orders per active customer is defined as orders delivered in a twelve-month period divided by active customers for the same twelve-month period.

The following table provides our key operating metrics: (in thousands, except for LTM net revenue per active customer, average order value and orders per active customer)

 

Three months ended

June 30,

 

 

2024

 

 

2023

Active customers

 

6,221

 

 

4,621

LTM net revenue per active customer

$

247

 

$

361

Orders delivered

 

1,949

 

 

1,803

Average order value

$

204

 

$

234

Orders per active customer

 

1.39

 

 

1.56

Non-GAAP Financial Measures and Reconciliations

We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted diluted net loss per share, adjusted EBITDA, and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance and, in the case of free cash flow, our liquidity position, in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures.

Adjusted diluted net loss per share is a non-GAAP financial measure that is calculated as net income (net loss) less the income or losses recognized from our equity method securities, net of related tax. We believe that this adjustment to our net income (net loss) before calculating per share amounts for the current period presented provides a useful comparison between our operating results from period to period.

Adjusted EBITDA is a non-GAAP financial measure that is calculated as net income (net loss) before depreciation and amortization, stock-based compensation, interest and other income (expense), provision (benefit) for income taxes, and special items. We believe the exclusion of certain benefits and expenses in calculating adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring.

Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by or used in operating activities reduced by expenditures for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations.

The following tables reflects the reconciliation of adjusted diluted net loss per share to diluted net loss per share (in thousands, except per share data):

 

Three months ended

June 30,

 

2024

 

Diluted EPS

 

Less: equity method income (loss)1

 

Adjusted Diluted EPS

Numerator:

 

 

 

 

 

Net loss

$

(42,578

)

 

$

(7,753

)

 

$

(34,825

)

 

 

 

 

 

 

Denominator:

 

 

 

 

 

Weighted average shares of common stock outstanding—diluted

 

45,742

 

 

 

45,742

 

 

 

45,742

 

 

 

 

 

 

 

Net loss per share of common stock:

 

 

 

 

 

Diluted

$

(0.93

)

 

$

(0.17

)

 

$

(0.76

)

1

Inclusive of estimated tax impact

The following table reflects the reconciliation of adjusted EBITDA to net loss (in thousands):

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net loss

$

(42,578

)

 

$

(73,493

)

 

$

(116,506

)

 

$

(83,800

)

Depreciation and amortization

 

4,395

 

 

 

4,516

 

 

 

8,355

 

 

 

10,501

 

Stock-based compensation

 

5,259

 

 

 

6,270

 

 

 

10,035

 

 

 

12,065

 

Interest income, net

 

(2,309

)

 

 

(3,059

)

 

 

(5,026

)

 

 

(5,618

)

Other (income) expense, net

 

(2,231

)

 

 

80,673

 

 

 

16,560

 

 

 

88,062

 

Provision (benefit) for income taxes

 

117

 

 

 

(8,370

)

 

 

446

 

 

 

(11,257

)

Special items (see table below)

 

971

 

 

 

1,697

 

 

 

1,917

 

 

 

1,697

 

Adjusted EBITDA

$

(36,376

)

 

$

8,234

 

 

$

(84,219

)

 

$

11,650

 

 

 

 

 

 

 

 

 

Special items:

 

 

 

 

 

 

 

Brand integration and related costs

$

192

 

 

$

1,086

 

 

$

203

 

 

$

1,086

 

Restructuring costs1

 

779

 

 

 

611

 

 

 

1,714

 

 

 

611

 

 

$

971

 

 

$

1,697

 

 

$

1,917

 

 

$

1,697

 

1

Inclusive of certain severance and lease termination costs.

The following table reflects the reconciliation of free cash flow to net cash (used in) provided by operating activities (in thousands):

 

Six months ended

June 30,

 

 

2024

 

 

 

2023

 

Net cash (used in) provided by operating activities

$

(110,502

)

 

$

18,772

 

Expenditures for property and equipment

 

(7,951

)

 

 

(12,048

)

Free cash flow

$

(118,453

)

 

$

6,724

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729774027/en/

Alexis Callahan, Vice President, Investor Relations & Public Relations [e-mail] [e-mail]