In the midst of rapidly instituted changes as it reconfigures into a new, holding company-style operation, Beyond posted lower third-quarter sales and bigger losses that fell short of Wall Street expectations.
Net loss was $61 million, or $1.33 per diluted share, versus a loss of $63 million, or $1.39 per diluted share, in the year-previous quarter. Adjusted for one-time events, net loss was $43.8 million, or 96 cents per diluted share, versus a loss of $27.5 million, or 61 cents per diluted share, in the year-before period, the company reported.
A Yahoo Finance-published analyst consensus estimate was for a loss of 72 cents per adjusted diluted share and revenues of $353 million.
Net revenues in the third quarter were $311.4 million versus $373.3 million in the year-prior period, Beyond stated. Operating loss was $43.6 million versus a loss of $40.9 million in the year-earlier quarter.
Active customer base was six million in the quarter, an increase of 21% year-over-year, the company maintained. Orders delivered in the quarter were 1.6 million, down 19% year-over-year, while the average order value was $199 versus $192 and orders per average customer was 1.39 versus 1.48 year over year.
In announcing the financial results, Adrianne Lee, chief financial and administrative officer, said, “We delivered sequential improvement in gross margin and continued to recognize the benefits of our cost reduction actions, ultimately delivering against our commitment to improve adjusted EBITDA. We recently announced the sale of our headquarters, which is expected to close in the fourth quarter, and announced a $20 million annualized reduction in staff-related expenses as we drive toward profitability and continue to create a more variable and leverageable cost structure to support our evolving business needs. All in, we expect to have reduced our fixed expense base by an annualized $65 million heading into 2025.”
Dave Nielsen, Beyond’s president, added, “We are focused on driving specific actions to strengthen our core asset-light e-commerce business and transforming Beyond to an affinity marketing model in our core business, we have identified four key areas of improvement: marketing efficiency, sales growth, margin, and expense management. As we continue to transform and build out our model, we intend to monetize data through our enhanced CRM and database capabilities, stand up a global loyalty program across both our owned and partnered brands and leverage our IP through a variety of global licensing partnerships.”
Beyond, said executive chairman Marcus Lemonis, is “in the process of transforming our asset-light business into an affinity and data monetization model with a strong technology focus, comprised of a collection of brands offered on a comprehensive platform from which customers can unlock value within the four walls of their home and four corners of their property. We are still in the early innings of creating a robust data cooperative that will serve as the affinity and loyalty program foundation, and having recently announced partnerships with both The Container Store and Kirkland’s Home, we are well on our way. What we are ultimately building at Beyond is intended to leverage the combined strengths of all involved parties, driving improved financial performance and shareholder value.”
