Beyond, Inc. beat Wall Street on earnings for its first quarter ended March 31, but revenue fell short of expectations as the company reset operations in an effort to return to growth.
Beyond posted a net loss of $39.9 million, or 74 cents per diluted share, versus a net loss of $73.9 million, or $1.62 per diluted share, in the year-prior quarter. Adjusted for one-time events, net loss was $22.8 million, or 42 cents per diluted share, versus a net loss of $55.5 million, or $1.22 per diluted share, in the year-earlier period, the company maintained.
An analyst consensus estimate published by Yahoo Finance called for an adjusted diluted earnings per share loss of 63 cents on revenue of $288.1 million.
Net revenue was $231.7 million versus $382.3 million in the year-previous quarter. Operating loss was $23.5 million versus $57.5 million in the year-before period.
In announcing the first quarter results, Adrianne Lee, Beyond president and CFO, said, “While the previously disclosed decision to eliminate non-contributory SKUs and vendors led to lower revenue, we are steadfast in building a more stable foundation for profitability and growth. The sequential improvements we’ve seen, particularly in gross margin expansion and fixed cost reductions, underscore the intensity I expect in restoring the financial discipline critical to building a profitable growing business.”
Marcus Lemonis, Beyond executive chairman and principal executive officer, added, “Our first quarter results illustrate our team’s progress against the mandate to return to profitability including margin optimization, SKU rationalization and fixed cost restructuring. The consistency we saw in the final weeks of the quarter through today in sales performance and marketing efficiency marks a tipping point. Coming out of the restructuring, we have a clear understanding of our levers to breakeven and generate a profit. With a newly right-sized cost structure, we believe we are within 60 days of transitioning to a revenue and gross profit growth playbook.”
Beyond owns and operates e-commerce platforms for Overstock, Bed Bath & Beyond and Buy Buy Baby. Beyond recently acquired a stake in specialty retailer Kirkland’s Home, through which the company is preparing the brick-and-mortar relaunch of Bed Bath and Beyond and Buy Buy Baby.
Lemonis added Beyond “will deliver value to our customers across our family of brands through affordability, access to trusted top-tier brands, a better site experience and new category rollouts, all while navigating current tariff and macroeconomic volatility with the strength of our diversified vendor base, domestic and international. This team is equipped and focused on our key guideposts to deliver revenue growth and profitability.”
