Overstock (NASDAQ:OSTK) reported results this morning that “represent discipline and a lot of hard work” according to the company. The company said that new customers tripled year over year as many new customers found them during Q2 – boosted by the COVID lockdown.
The company said they are obsessively focused on retaining these new customers.
Overstock said its blockchain based subsidiaries continue to perform.
Overstock CEO Jonathan Johnson stated:
“tZERO and our other Medici Ventures blockchain-based businesses continue to make progress, with several of those companies attracting media attention for their solutions to problems the country now faces. As an organization, Overstock remains focused, disciplined, and resilient as our employees execute against our strategic initiatives. I am proud of the progress we have made, and I am confident that we can continue along this profitable trajectory. I look forward to providing a full update on our progress and performance during our earnings call.”
Yesterday, tZERO CEO Saum Noursalehi posted a separate update on progress pertaining to the digital asset platform.
Overall, Overstock reported:
- Net revenue of $783 million, an increase of 109% year over year
- Gross profit of $180 million or 23.0% of total net revenue, an improvement of 321 basis points year over year
- Net income attributable to stockholders of $36 million, an improvement of $61 million year over year
- Diluted EPS of $0.84, an improvement of $1.53 year over year
While still not profitable, tZERO net revenue was reported at $13 million, an increase of 129% year over year, primarily due to SpeedRoute trading volume.
Trading volume was approximately 931,000 shares, a 231% increase year over year and the total number of tZERO Crypto app users increased 42% from March 31, 2020, and 100% YTD.
The solid earnings report for the e-commerce side is welcomed respite from prior quarters. Johnson took the helm from former CEO and founder Patrick Byrne when he exited the firm and sold all of his shares last year. Earlier this year, shares in Overstock were hovering at just over $3/share representing a loss in confidence in the firm. Today, Overstock is looking quite a bit better as shares closed at over $60/share yesterday and today shares in Overstock are currently trading around 10% above yesterday’s close.
Overstock said during today’s earning call they are generating sustainable profitable growth.
Overstock currently claims over 95% of security token trading volume via the tZERO ATS. The trading platform recently signed its first 3rd party issued security token, Aspen Digital, to trade on its marketplace.