What happened
Shares of Liquidity Services (LQDT +1.22%) jumped more than 10% on Thursday, following the release of the business surplus marketplace's fiscal third-quarter results.
So what
Liquidity Services' total revenue rose 12% year over year to $56.9 million, besting Wall Street's estimates for revenue of $52.2 million.
Its gross merchandise volume (GMV) -- essentially, the total dollar amount of sales conducted on its platforms -- grew 3% to $168.1 million. Notably, the number of registered buyers in its network increased by 10.7% to 3.6 million, while the number of participants at the company's auctions rose 3.1% to 528,000. Better still, these buyers completed 10.3% more transactions in the second quarter versus the prior-year period.
Liquidity Services' recovery is gaining steam. Image source: Getty Images.
All told, Liquidity Services' non-GAAP (adjusted) net loss -- which excludes stock-based compensation expense, acquisition costs, restructuring charges, and certain other items -- came in at $1.5 million, or $0.05 per share. That was better than analysts' expectations for a loss of $0.07, and a notable improvement from an adjusted loss of $2.3 million, or $0.07 per share, in the second quarter of 2018.
Now what
After struggling for years to overcome the loss of some major contracts, Liquidity Services' recovery finally appears to be taking hold.
Management said that the company would continue to invest in its fast-growing retail supply chain segment and a new e-commerce platform, as it seeks to make progress on its turnaround strategy.
