Categories Earnings, Retail

Overstock.com posts Q4 earnings: a blockchain-retail mix

Online retailer Overstock reported its fourth quarter 2018 earnings early on March 18, as investors sought clarity on the future of the company with it turning to its Medici arm to focus more on blockchain technology.

For the quarter, revenue slipped 1% to $452.5 million, while gross profit slumped 5% to $81.6 million. Gross margin was 18%, down 78 basis points.

Sales and marketing expense shrunk 13% to $47.5 million, but technology/G&A expenses spiked 53% to $82.5 million.

Pre-tax loss almost doubled to $49.9 million vs. $24.9 million a year ago. Retail pre-tax loss was $27.7 million, while that is tZERO was $12.6 million. Total revenue from Medici’s blockchain offering tZERO was $4.96 million in the quarter, which generated a gross profit of $1.56 million.

Quarterly net attributable loss shrunk to $42.3 million from last year’s $95.7 million, while net loss came down to $1.39 per diluted share from loss of $3.72 a share a year ago.

 

RETAIL OR BLOCKCHAIN?

Back in November, CEO Patrick Byrne, who is also a blockchain evangelist, hinted that Overstock does not want to be in e-commerce any more — rather, it is looking at transforming to a blockchain business.

CEO Byrne was expected to shed more light into the identity and the future of Overstock.com as the company posted results today. “Our blockchain projects are some of the most significant and cutting edge in the world, and we are just reaching the point where our products are being introduced to the public. In particular, tZERO brought live a security token trading platform, ” he weighed in, as the company posted a dip in losses.

READ: NYSE-listed DANA will supply parts for Lion8 — an all-electric Canadian truck

In line with the focus of blockchain, Overstock already launched an investing firm Medici Ventures — a public digital ledger of transactions on the blockchain technology. It is also said to be developing its own security tokens for e-commerce and trading.

“Our retail arm lost money last year because I gunned things in an attempt to create a conventional high-growth/money losing e-commerce business, but the losses were nauseating and we reverted back to the philosophy of profitability on which we built Overstock: as a result, in 2019 Retail will return to profitability, generating a positive operating cash flow ≥ $10M,” said CEO Byrne.

 

 

 

 

Earnings Calendar: Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Tags

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top