Overstock Revenue Increases 111% versus Year Prior, tZERO Revenue at $11 Million, Shares Rise

Overstock (NASDAQ:OSTK) has reported financial results for the quarter ended September 30, 2020. The online retailer and blockchain investor reported that total net revenue came in at $732 million, an increase of 111% year over year.

Gross profit was reported at $171 million or 23% of total net revenue, an increase of 330 basis points year over year.

Net income attributable to shareholders was $23 million, an improvement of $54 million year over year with diluted earnings per share of $0.50, an improvement of $1.39 year over year.

The ongoing COVID pandemic has helped boost e-commerce performance but Overstock is confident it will be able to retain these customers going forward.

Overstock said that at the end of the third quarter, cash and cash equivalents totaled $530 million.

Overstock CEO Jonathan Johnson said that following their record-breaking quarter they are maintaining momentum:

“Our quarterly gross sales in our Retail business doubled year over year once again and new customers grew 141%. These new customers are making repeat purchases at an increasing rate. Heading into the fourth quarter, I am as confident as ever in our Retail business maintaining sustainable, profitable market share growth.”

Speaking about Overstock’s blockchain ventures, Johnson said they are making meaningful advancements:

“tZERO received FINRA approval to provide retail brokerage services for digital securities through its subsidiary, tZERO Markets, which officially launched last week. Several of our Medici Ventures companies are raising capital, most are getting products into production, and many are generating revenue. Our organization remains focused and disciplined. We continue to execute against our strategic initiatives that are driving growth and delivering profitability. I look forward to providing an update on our progress and performance during our earnings call.”

tZERO net revenue was reported at $11 million, an increase of 97% year over year, primarily due to SpeedRoute trading volume. tZERO ATS volume increased 856% to a record 4 million shares (equivalent to $39 million in value of shares traded). Still small, but heading in the right direction.

Johnson said they remain supportive of their blockchain ventures and are bullish on the technology.

In pre-market trading, shares in Overstock moved markedly higher. The earnings call may reveal additional information.

Update from the earnings call:

tZERO – most of the assets today do not meet their diligence so they are being selective on what they trade. They are shifting their efforts to direct listings where they believe they can get up and running faster.

BOX Digital – optimistic about getting a positive answer from regulators and moving forward in late November. SEC deadline is the end of January.

One analyst requested a Medici Day to be able to discuss in greater detail Overstock’s blockchain ventures.



Overstock 2020 Q3-EarningsCall-vFINAL


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