What happened
Shares of e-commerce and blockchain company Overstock.com (OSTK 0.27%) were hit hard on Monday, falling about 15% as of 12:50 p.m. EDT.
The stock's slide follows news that Overstock CFO Greg Iverson has resigned and that management revised its profitability outlook lower. This news comes about a month after founder and CEO Patrick Byrne resigned from the company following a press release in which he confirmed he was a part of some high-profile FBI probes involving Russia and Hilary Clinton.
Image source: Getty Images.
So what
"Overstock's Chief Financial Officer Greg Iverson has resigned, effective September 17, 2019," said Overstock in a Sept. 23 press release. The company gave no explanation for Iverson's departure.
Taking over Iverson's role is Robert Hughes, who is currently president of Overstock subsidiary Medici Land Governance -- a real estate blockchain company. Hughes, however, is only a temporary solution. The company has begun searching for a permanent CFO, Overstock said.
Now what
Also concerning is the company's worsened outlook for profitability.
Previously, management expected $17.5 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2019, with "significant positive EBITDA" in Q3. But Overstock said on Monday that "actual Q3 results to date are at approximately break-even."
Looking out to Q4, management said it expects "modest positive adjusted EBITDA" but noted it will give more detailed guidance in its third-quarter earnings call.
